Yes. For Scenario 2024: Based on the information on the Massachusetts (MA) Tax Treatment for Non Government Pensions the following is how you treat IRA Distributions:
- Distributions from an IRA account made to you. For Massachusetts purposes however, distributions made are excluded from gross income if these distributions equal your Massachusetts previously taxed contributions.
Yes. For Scenario 2025: Same applies assuming you contribute to your IRA $8,000 for 2024 and 2025.
I agree with your calculations showing the tax free amount distributed for MA. My only concern was that a proration would need to occur arriving at a percentage of total IRA balance after rollover of 401(k) to the traditional IRA (distribution/total value). However, MA does not seem to require that, rather you can reduce your MA income for amounts previously taxed until recovered before starting to tax earnings and amounts already deducted (amounts rolled in from the 401(k).
@BostonDoug
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
