topic Does a traditional IRA to Roth IRA conversion qualify for the Colorado state pension and annuity exclusion? in Retirement tax questions

Does a traditional IRA to Roth IRA conversion qualify for the Colorado state pension and annuity exclusion?

abby40 — Tue, 14 Apr 2020 23:10:55 GMT

Re: Does a traditional IRA to Roth IRA conversion qualify for the Colorado state pension and annu...

AmyC — Tue, 14 Apr 2020 23:30:12 GMT

It depends.

If you are 65 or older, then you can exclude up to $24,000.
ages 55-64 up to $20,000.
If you are younger than that, it must be income as a beneficiary, exclude up to $20,000.

Re: Does a traditional IRA to Roth IRA conversion qualify for the Colorado state pension and annu...

abby40 — Wed, 15 Apr 2020 00:06:31 GMT

Thank you,

My situation is "age 55-64". Should the "up to $20,000" exclusion include moneys received from a private annuity and inherited IRA?

That is, can I only exclude a maximum $20K in total from all pension and annuity sources or can exclude $20K of the traditional IRA to Roth conversion PLUS the approximate $8K received from a private annuity and IIRA for a grand total of $28K?

Re: Does a traditional IRA to Roth IRA conversion qualify for the Colorado state pension and annu...

AmyC — Wed, 15 Apr 2020 00:13:32 GMT

The $20,000 is the maximum to exclude and covers federally taxable IRA distributions, pensions, annuities and Social Security benefit according to CO. You get one write off of $20,000.

Re: Does a traditional IRA to Roth IRA conversion qualify for the Colorado state pension and annu...

neville2019 — Sun, 22 Feb 2026 17:53:50 GMT

If you have convert your IRA to roth and are under 55 is the first $20,000 excludable from Colorado Income?

Re: Does a traditional IRA to Roth IRA conversion qualify for the Colorado state pension and annu...

RogerD1 — Mon, 23 Feb 2026 15:37:13 GMT

No, this exclusion only applies if 55 years old or older. There is an exclusion possible for those under 55 years old if they are a beneficiary, though. Following is from the Box 104 2025 Colorado Individual Income tax instructions:

"You might be eligible to subtract the income you earned from a pension or annuity. We recommend that you read publication Income Tax Topics: Social Security, Pensions & Annuities if this applies to you. This subtraction is allowed only for pension or annuity income that is included in your federal 19 taxable income. Do not enter any social security benefits on line 4. Instead, qualifying individuals may claim a subtraction for social security benefits on line 3. The amount of subtraction you can claim is also limited based upon your age. As of December 31, 2025, if you were:

• Age 65 or older, then you may subtract $24,000 minus any amount entered on line 3, or the total amount of your taxable pension/annuity income, whichever is smaller; if the amount in line 3 of this form is greater than $24,000, you may not claim any subtraction for pension and annuity income on line 4; or

• At least 55 years old, but not yet 65, then you may subtract $20,000 minus any amount entered on line 3, or the total amount of your taxable pension/annuity income, whichever is smaller; if the amount on line 3 of this form is $20,000, you may not claim any subtraction for pension and annuity income on line 4; or

• Younger than 55 years old and you received pension/annuity income as a secondary beneficiary (widow, dependent child, etc.) due to the death of the person who earned the pension/annuity, then you may subtract $20,000 minus any amount entered on line 3, or the total amount of your secondary beneficiary taxable pension/ annuity income, whichever is smaller; if the amount on line 3 of this form is $20,000, you may not claim any subtraction for pension and annuity income on line 4.

Pension/annuity income should not be intermingled between spouses. Each spouse must meet the requirements for the subtraction separately and claim the subtraction only on their pension/annuity income. Any qualifying spouse pension/annuity income should be reported on line 6. Submit copies of all 1099R statements with your return. Submit using Revenue Online or include with your paper return."