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Retirement tax questions
I suspect that this answer and @DianeC958 below are not quite correct. Line A on schedule X is for taxable distributions, not Roth distributions (unless your Roth distribution is taxable because you haven't waited 5 years or you are under 59 1/2; see the federal rules). The form in Turbotax is there to help you not pay MA taxes on contributions you made that MA taxed when you made them to traditional IRAs. The taxable distributions, as the MA instructions booklet spell spells out on p. 20, are IRA's, Keoghs, and Roth *conversion* distributions, which means the distribution from your Traditional IRA at the moment you converted it to a Roth. The program inserts regular Roth distributions on line A if they are coded T (exception applies) instead of Q (qualified), apparently for the benefit of people who made an early Roth withdrawal without understanding the rules. In that case, you would add up all your after-tax contributions to your Roth and enter that number, so you end up paying taxes only on the Roth account's gains. This is what they mean when they say you can always withdraw your original contributions at any time, but the 5 year/59.5 rules apply to the gains. In my case this particular Roth account is less than 5 years old, but my original Roth is 15 years old, so my distribution was qualified even though the custodian didn't know that. I could figure out two ways to fix the problem of erroneously reporting it on schedule X. 1) Go back to the Federal 1099-R entry (after filing Fed taxes correctly) and changing the T to a Q so that the distribution no longer appears on MA schedule X, or 2) leave it on schedule X and type in the entire sum as already taxed, which seems lame. Turbotax could improve this.