topic withdrawal in Retirement tax questions

Does Massachusetts tax Keogh retirement earnings?

peepa1 — Wed, 05 Jun 2019 01:48:31 GMT

Does Massachusetts tax Keogh retirement earnings?

Fed TT says no, State TT says yes. Which is correct?

Are you referring to a contribution or withdrawal?

Zbucklyo — Wed, 05 Jun 2019 01:48:33 GMT

Are you referring to a contribution or withdrawal?

withdrawal

peepa1 — Wed, 05 Jun 2019 01:48:34 GMT

withdrawal

there is an error in TurboTax: Keogh earnings cannot be...

peepa1 — Wed, 05 Jun 2019 01:48:35 GMT

there is an error in TurboTax: Keogh earnings cannot be untaxed in Mass as stated by Fed TT, and then taxed in the Mass State TT forms

Zbucklyo: thank you for your answer. It is the same as my...

peepa1 — Wed, 05 Jun 2019 01:48:37 GMT

Zbucklyo: thank you for your answer. It is the same as my understanding of the situation. My problem is actually with TT which has a serious flaw in its Fed forms. This was supposed to be corrected over a year ago. The error persists making me believe each year that I have missed something in understanding what I need to do.

Earnings within a Keogh (before withdrawal) are not taxed...

Zbucklyo — Wed, 05 Jun 2019 01:48:38 GMT

Earnings within a Keogh (before withdrawal) are not taxed. The withdrawal itself may or not be taxable in MA. Use Schedule X, Line 2 worksheet to determine the taxable amount, if any. Basically, the amount you contributed is not taxed, but once all the contributions have been withdrawn, the earnings are considered taxable by MA.