Massachusetts pre-1998 already taxed 403b contributions

[jnmgordon]

How does the TurboTax Massachusetts program allow reporting of already taxed pre-1998 contributions to a 403b when a withdrawal is made?

[JohnB5677]

Massachusetts does not give you a tax deduction on traditional IRAs as you get from the federal.  You pay the tax when you put it into the IRA.

Therefore, every contribution that you made to an IRA while you lived in Massachusetts was already taxed. 

The first question is to determine how much you contributed.

The second question is to determine how much you've withdrawn, and how much is now taxable.

MA IRA Non Deduction

To post the Non-Deductible portion of Massachusetts IRA’s

1. Go to the Massachusetts return

2. Continue to the Recap Page

3. You’ve Finished Your Massachusetts Return

4. Select Adjustments

5. You will have to go through several screens.  

6. You will find:

• Taxable IRA/Keogh Distributions

  • Other contributions previously taxed by Massachusetts

    • You need to have a record of how much you contributed to the IRA in order to be able to answer the questions of how much of the IRA distribution was previously taxed.

  • Total distributions received in previous years.

[jnmgordon]

I assume you meant the contributions made before 1998 were already taxed because from January 1, 1998 on Massachusetts allowed pre-tax contributions to a 403b to reduce your current income.  Thank you for your reply and for explaining how to enter the already taxed amount in the Massachusetts TurboTax program. It was very helpful.