topic Mass IRA Taxable in Retirement tax questions

Mass IRA Taxable

Donna32100 — Wed, 11 Feb 2026 10:36:29 GMT

I am very confused about the MA taxable IRA requirements. My husband made two ira traditional contributions in plan years 2022 and 2021 for $7K each. They were non deductible in MA. In 2023, he converted them to a Roth. $14,618.

Since we received no deduction from the state, I would assume we would pay tax on the gain of $618. However, in 2019, we inherited a small ira from his Mom, $15,400 of which we paid taxes on.

My accountant has used this distribution received in previous years to populate Line 3, hence we are now paying tax on $14,618 (Line 7) which is our gain and contributions. This doesn't seem right to me. Why am I being double taxed?

Re: Mass IRA Taxable

NCperson — Tue, 03 Sep 2024 00:30:26 GMT

@Donna32100 when you state Line 3 and Line 7, what form are you referring to? and is that MA or federal?

further, was your mother-in-law a MA resident? how much was distributed from this IRA in 2023.

Re: Mass IRA Taxable

NCperson — Tue, 03 Sep 2024 01:12:26 GMT

@Donna32100 i figured it out - you are referring to Lines 3 and 7 on the worksheet related to section X Line 2 worksheet .

I see what is occurring, but important to understand if your mother-in-law was a MA resident or not. Once I have that answer, I can explain in further detail.

How much of your MIL's IRA has actually been distributed? The issue is going to come down to whether MA tax was ever paid on that IRA. If she was an MA resident, then probably yes, but if no, then tax is due on that IRA. I can show you the probable math once you respond.