Inherited IRA

Forum|Forum|5 months ago
March 13, 2026
1 reply
53 views

Is an RMD from an inherited IRA taxable in the State of Michigan if the owner of the IRA never lived or worked in Michigan and there was no deferred income in the State of Michigan? The owner resided and worked in the State of Virginia and resided in the State of Florida (which has no income tax) when she passed away.

DaveF1006

Level 15

IIt depends. Most states, including Michigan, use a residency-based tax system. If you live in Michigan, both the IRS and the Michigan Department of Treasury treat IRA distributions as regular income. Even if the funds were set aside while you lived in Virginia or Florida, they count as income when you take them out as a Michigan resident.

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