mass tax form RE IRA requests prior contibtions and prior disbursements. this is new this year. what exactly are they looking for

hmd01569 — Sat, 08 Feb 2020 17:33:08 GMT

Re: mass tax form RE IRA requests prior contibtions and prior disbursements. this is new this yea...

JotikaT2 — Sun, 09 Feb 2020 20:12:37 GMT

Essentially, they are trying to determine what your basis is in the IRA. Massachusetts only taxes your IRA after you have withdrawn from your basis portion. This differs from the IRS which taxes all distributions.

Please see the attached explanation by ScruffyCurmudge for a more detailed explanation of the rationale.

MA IRA distribution tax treatment discussion

Here is additional information from the state of MA with additional information:

MA IRA information

Re: mass tax form RE IRA requests prior contribtions and prior disbursements. this is new this yea...

cpatmcc — Mon, 17 Feb 2020 16:29:14 GMT

Hello,

I am completing the state portion of my return (MA) and I need help filling out this question, and the three additional fields:

"Enter the portion, if any, of distributions from IRA/Keogh plans, qualified charitable IRA and Roth IRA conversion distributions for Collin that were previously taxed by Massachusetts and the total amount of distributions received in previous years. Also, verify any qualified charitable IRA distributions in 2019 included in the total."

1. Total IRA/Keogh, qualified charitable IRA and Roth IRA conversion distributions during 2019:

-I know the answer to this question, no help needed.

2. Total contributions previously taxed by MA:

-What total contributions? For 2019? Total contributions to a Roth, since the beginning of owning a Roth? Total contributions to a Traditional IRA, since the beginning of owning a Traditional IRA? Total contributions to both, since the beginning of owning both? Please help me understand what year(s) it is asking? Please know, that all money I have every contributed to a Traditional and/or Roth has always been post-tax money.

3. Total distributions received in previous years:

-There was only one year (2016) in which I contributed excess money to my Roth when I wasn't allowed to (by accident). I removed those excess funds in 2018. Should this be the only "distribution received in previous years?" Other than that amount, I have never removed funds. Please advise. It is confusing me because it says "distributions received." Every year, I get a 1099-R from my IRA stating the distributions. I do a Backdoor Roth conversion, so these distributions are simply money moving from my Traditional to Roth. I'm just not sure what "distributions received" means. I don't actually receive those funds, they are converted.

Please advise.

Thank you,

Collin

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mass tax form RE IRA requests prior contibtions and prior disbursements. this is new this year. what exactly are they looking for

Re: mass tax form RE IRA requests prior contibtions and prior disbursements. this is new this yea...

Re: mass tax form RE IRA requests prior contribtions and prior disbursements. this is new this yea...