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Roth IRA withdrawal - tax confusion

My wife and I both have Roth IRA's started back in 2000 or before (I forget when). I'm using TurboTax to do our taxes and happened to notice that it wants us to pay taxes in MA on withdrawals.

These were not "conversions" - we opened them as Roth IRA's originally. They've been transferred from Galxy to Columbia to Sun America, but nothing taken out until last year.

From old statements, I know that in 2004 we each had appx $16,000 in

these. From what I can find, it looks like we might have put in another $600 each in 2005 and 2006. I'm checking with the funds to see if we added more after that, but I don't think we did.

This year we withdrew - $3,000 from mine and $12,000 from my wife's.

We are both in our 60's so are well over 59-1/2.

The income does NOT show as Taxable on the TurboTax Federal return, but it does show that way on MA.

I noticed the same thing happened in 2008 - we had taken $5,000 out then.

At first I thought maybe this is because we had made some contributions within 5 years? But if I read

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Example #3correctly, that shouldn't matter: we started these IRA's 10 years agoor more. Anyway, because of falling value, the darn things aren'tworth a lot more than what we had in them in 2004! I do not understand this - if it's not taxable Federal, why is it in State??? Is it Turbo Tax or is there something I'm not understanding?

Reply to
Tony Lawrence (pcunix)
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I can't speak to how TurboTax is treating the amount. I can tell you that MA conforms to federal law for contributory Roth IRAs. A qualified distribution from a contributory Roth IRA is tax-free federal and MA.

Reply to
Alan

OK, so now what? It's probably a bug in TurboTax.

Is there any place where you can contact Support? All I see is their forums (got nothing there except other people with the same problem) and that useless "Ask Tina" link.

Reply to
Tony Lawrence (pcunix)

As to whether or not it is a TT bug... I have no idea as I do not know what was delivered to you on a 1099-R nor do I know what was entered into TT.

Hopefully, someone else on this forum may be a TT user and will provide some advice.

If you don't want to Chat with Tina, why haven't you tried the TT live community to get an answer?

Reply to
Alan

I did - and only found other folks with the same problem.

I spend a frustrating hour with a TT support person yesterday who was not able to reproduce the problem.

I did talk with MA DOR and they agreed that MA should NOT tax this.

I gave up - I went in and manually modified the Schedule X to "untax" it.

Reply to
Tony Lawrence (pcunix)

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