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February 14, 2022
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Montana Pension and Annuity Exemption

  • February 14, 2022
  • 1 reply
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What if the income exemption code is a Q (Qualified distribution from a Roth IRA) or a T (Roth IRA distribution, exception applies) in box 7?

    Best answer by MAK70

    If you have IRA distributions with federal early payout penalties, you can't qualify for the Partial Pension and Annuity Income Exemption. If you have Box 7 Code Q or T and you reached age 59½, the participant died, or the participant is disabled, you qualify for the exemption.

    1 reply

    MAK70Answer
    February 14, 2022

    If you have IRA distributions with federal early payout penalties, you can't qualify for the Partial Pension and Annuity Income Exemption. If you have Box 7 Code Q or T and you reached age 59½, the participant died, or the participant is disabled, you qualify for the exemption.