topic Are IRA distributions taxable under in Michigan in Retirement tax questions

Are IRA distributions taxable under in Michigan

brianclem62 — Thu, 19 Feb 2026 15:54:18 GMT

Re: Are IRA distributions taxable under in Michigan

xmasbaby0 — Thu, 19 Feb 2026 15:59:11 GMT

MI does not tax Social Security benefits, but MI does tax certain other kinds of retirement income including pension income or retirement account distributions.

Re: Are IRA distributions taxable under in Michigan

brianclem62 — Mon, 23 Feb 2026 15:17:14 GMT

Trying to determine how Turbo Tax is assigning "Plan Type" for 401k/IRA distributions on the Michigan income tax return. What makes a distribution taxable/non-taxable for state of Michigan income tax?

Re: Are IRA distributions taxable under in Michigan

JamesG1 — Mon, 23 Feb 2026 16:21:06 GMT

Michigan Compiled Law Section 206.30 determines whether a pension distribution is taxable or nontaxable to Michigan.

In TurboTax, in the Michigan state income tax return, at the screen Retirement Income and Pension Summary, the software determines the category of the pension distribution reported in the Federal 1040 income tax return.

The software identifies the nature of the pension distribution based upon the answers reported in the Federal income tax return at the screen Where is your distribution from? and What kind of retirement plan do you have with Retirement?

See the Michigan Retirement and Pension Benefits here.

Adjusted Gross Income (AGI) is calculated on your federal income tax return and is the starting point for your Michigan individual income tax return and may include your retirement or pension benefit distribution. AGI is the starting point for the individual income tax return.

MCL 206.30(9),(10), and (11) provides guidance on the retirement benefit subtraction. To determine your allowable retirement or pension subtraction, we must consider (1) if your retirement income is considered a qualified distribution and (2) what your tax treatment options are for a given tax year.

@brianclem62

Re: Are IRA distributions taxable under in Michigan

brianclem62 — Mon, 23 Feb 2026 21:07:50 GMT

From what I am reading my distribution is taxable. As my distribution is from an IRA which a rolled a handful of 401k plans into, all of my plans allowed me to determine how much I contributed each year and no of them had a prescribed retirement age or years of service. I will need to review my answers in TurboTax as it has tagged it is non-taxable.