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mg36799
New Member

Arkansas allows for up to $6000 subtraction for qualified traditional IRA distributions. How do I determine if I qualify for that deduction?

One document found suggests that this subtraction might need to be entered manually in most tax software.
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1 Reply
DavidD66
Employee Tax Expert

Arkansas allows for up to $6000 subtraction for qualified traditional IRA distributions. How do I determine if I qualify for that deduction?

According to the Arkansas  Department of Finance and Administration:  “If you received a traditional IRA distribution after reaching the age of fifty-nine and one-half (59 1/2), the first $6,000 is exempt from tax. Premature distributions made on account of the participant’s death or disability also qualify for the exemption. All other premature distributions or early withdrawals including, but not limited to, those taken for medical expenses, higher education expenses, or a first-time home purchase do not qualify for the exemption.

 

If TurboTax does not automatically apply the $6,000 exemption then you can make the adjustment in the State Tax Section, "Subtractions from Income" or Arkansas Pension Deduction"

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