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February 10, 2023
Question

Roth in-plan conversion of after-tax money contribution to 401k (1099-R), is this an excludable distribution for Massachusetts?

  • February 10, 2023
  • 1 reply
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I have Roth in-plan conversion in my 401k so whenever I contribute after-tax money, it is automatically converted to Roth within my 401k. I got 1099-R where it shows my after-tax money contribution as Gross distribution (Box 1) and Taxable amount of 0 (Box 2a). The distribution code (Box 7) is G, Direct rollover of a distribution to a qualified plan. Here is my question in doing Massachusetts (MA) state tax return with TurboTax: it asks, Is this retirement distribution from... an excludable distribution for MA? Should I answer Yes (if so, what type among T, G, K?), or No (this distribution should not be excluded, or the distribution is a rollover to another retirement account? I would really appreciate your help and advice. Many thanks in advance.

1 reply

February 10, 2023

The distribution is a rollover, so I would suggest you answer "No" and proceed from there.

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