topic Colorado Pension and Annuity Subtraction for premature IRA distribution in After you file

Colorado Pension and Annuity Subtraction for premature IRA distribution

medsmkn — Mon, 23 Feb 2026 13:00:22 GMT

I am 57 yrs old (married, filing jointly) and live in Colorado. I took an early IRA (rollover IRA owned by me) distribution of $22,500 in 2022 to help pay part of my child's college expenses of $33,959. Can I take the $20,000 Colorado Pension and Annuity Subtraction?

Re: Colorado Pension and Annuity Subtraction for premature IRA distribution

ThomasM125 — Wed, 08 Feb 2023 23:33:09 GMT

Since you are over 55 years old and under 65, you can take a $20,000 subtraction from pension distributions in 2022. You can learn more here: Colorado pension exclusion

Re: Colorado Pension and Annuity Subtraction for premature IRA distribution

medsmkn — Wed, 08 Feb 2023 23:56:38 GMT

Thank you, ThomasM125!

TurboTax (self-employed desktop version), under Learn More pop-up said:

"Note: Premature distributions do not qualify for this subtraction." There was a link to more info (https://tax.colorado.gov/sites/tax/files/2020.02_Income25.pdf), which I read several times and appeared that it was allowable if the penalty exception was allowable under Federal rules. Thank you again.