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Retirement tax questions
Thanks for the reply!
I'm not sure I agree with you about what I may be doing in 2024: recall that this is only about taxable Distributions from a traditional IRA for Massacusetts. In 2024, when I max out a backdoor Roth, I'll be depositing $7000 in the Traditional IRA and withdrawing that $7000 as soon as it clears by converting the funds to my Roth IRA. This would mean that my 1099-R next year will show I took a $7000 distribution, which Massachusetts should treat as "Previously Taxed by Massachusetts" since that $7000 is 100% post tax contribution (not gains) that is converted into a tax-advantaged retirement account, not distributed to a checking account.
This would mean next year MA interview will be about $7000 and I enter "$7000 previously taxed" and "$0 received in previous years": because of the 1099-R reported distribution I didn't take any of it out in a different tax year. Sorry if I'm just muddy the waters here: the MA interview question is very confusing in its wording