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Pennsylvania Distribution Type for a Roth Conversion 1099-R

kevinr12240 — Sun, 21 Mar 2021 18:27:36 GMT

How to answer PA Distribution type for a Roth Conversion 1099-R: Box 7 is 7, the “IRA/SEP/SIMPLE” box is checked, and all the other boxes are blank. All of the money from my traditional IRA transferred directly into my Roth. I am over 59.5 years old. Do I choose: I12 Rollover or J1 Traditional or Roth IRA; I’m over 59.5 or something else? Thank you.

Re: Pennsylvania Distribution Type for a Roth Conversion 1099-R

SundayInSalem — Mon, 22 Mar 2021 04:19:20 GMT

The Pennsylvania Department of Revenue says the conversion of a traditional IRA to a Roth IRA is generally not taxable. That is, monies transferred from a traditional IRA to a Roth IRA via conversion (whether by a trustee-to-trustee transfer or a roll-over within 60 days) are generally not subject to Pennsylvania personal income tax. See: Taxability of Roth IRAs according to PA income tax rules

Choose Traditional or Roth IRA; I’m over 59.5 to make this non-taxable to PA.

Distributions from an IRA are not taxable if the payments are:

Received, including lump sum distributions, on or after reaching the age of 59 1/2.
Paid to the estate, or designated beneficiary, of the participant by reason of the participant’s death.

Re: Pennsylvania Distribution Type for a Roth Conversion 1099-R

kevinr12240 — Mon, 22 Mar 2021 14:47:50 GMT

Thank you! There's definitely a learning curve for each state's income tax. Your prompt and knowledgeable response is much appreciated.

Re: Pennsylvania Distribution Type for a Roth Conversion 1099-R

taxes2020s — Tue, 30 Mar 2021 16:38:41 GMT

How would you code it for PA if the exact same situation - transfer of traditional IRA to roth IRA, code 2 in box 7, IRA/SEP/Simple box checked but under 59.5? Thanks