Solved

New York Roth IRA distribution taxable

Forum|Forum|3 years ago
March 3, 2023
1 reply
0 views

2022 deluxe desktop for MAC is making my Roth IRA distribution taxable in New York State.

It is the first time I have taken a distribution. I am 79 years old and have had the Roth Account of over 20 years.

New York Tax department says it's non taxable so how do I get turbo tax to treat it properly?

Best answer by DanaB27

Yes, Roth IRA distributions are non-taxable in NY. I assume you have code Q for your Form 1099-R?

When I tested it out and selected "None above" on the "Where is your distribution from" screen during the federal interview (right after you entered your Form 1099-R info) TurboTax made it automatically nontaxable on the NY state return IT 201 line 9.

To verify, on the federal return line 4 of Form 1040 it is showing correctly as non-taxable?

D

DanaB27Answer

Yes, Roth IRA distributions are non-taxable in NY. I assume you have code Q for your Form 1099-R?

When I tested it out and selected "None above" on the "Where is your distribution from" screen during the federal interview (right after you entered your Form 1099-R info) TurboTax made it automatically nontaxable on the NY state return IT 201 line 9.

To verify, on the federal return line 4 of Form 1040 it is showing correctly as non-taxable?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

U

UWS JoeAuthor

Thank you for checking this out. You are correct.

I got confused when looking at the TurboTax Pension/Annuities /IRAs Worksheet (Keep for your records), which stated that my NY State taxable pension / IRAs included my Regular IRA Distribution, My Charitable Contributions from my Regular IRA plus my Roth IRA distribution as my NYS taxable pension/ IRAs. However, TurboTax does not seem to use this number in the actual return. Thank again for your help.

LindaS5247

You can take out whatever you put into your Roth IRA, tax-free, because you already paid taxes on that money.

You can also make tax-free withdrawals on any additional earnings in your Roth IRA unless either of the following are true:

You're making the withdrawal less than five years after establishing the Roth.
You're making an early withdrawal (before age 59½) without the exception for death, disability, or the $10,000 first-time homebuyer distribution.

Generally, as long as your Roth has been open for at least five years, you can withdraw as much as you want (if you're 59½ or older) or anything up to the amount you put in (if you're under 59½) without any taxes or penalties.

Per NYS, regarding the taxability of a ROTH IRA: Distribution Income. Income distributed from a Roth IRA is exempt from tax if it is exempt from federal income tax.

Click here for additional information regarding the taxability of ROTH distributions.

Click here for additional information on the taxability of IRA or pension distributions.

Click here for additional information on the taxability of ROTH IRA's in NYS.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"