dklay
Returning Member

Retirement tax questions

It is now 2025 and I'm going through my 2024 taxes. My wife inherited a Roth IRA when her father passed in 2021. He lived in Arizona. We live in Massachusetts. The Roth IRA was moved to a Massachusetts based account in 2021 when inherited. She took a full distribution of the account in 2024.

TurboTax is saying it is nontaxable for Federal, but taxable in Massachusetts. Is this correct? If it should be nontaxable in MA, how to I tell TurboTax to do that?