In response to a question regarding state taxation of Roth IRAs, TMFPixy responded:There are some 19 states that do not conform to federal law with regard to taxation of the Roth IRA. Massachusetts is one of these states. Most of the 19 non-confirming states are expected to pass legislation adopting the federal position on taxation, but I don't know if MA is one of them. You'll have to check with your state legislature on that.I reply:Correct me if I'm wrong, but isn't there another option? As I understand the law, what matters is where you live when you take the distribution, not when you deposit the money into the Roth IRA. So if HardlyRich doesn't plan to live in Massachusetts in retirement, he shouldn't concern himself with Massachusetts tax law, but with the law of his intended state of retirement.And by the way, there's no reason to restrict lobbying on this issue to the state level. If the federal government chooses to, it can require states to treat qualified Roth withdrawals as tax-exempt. IMHO, it's a better use of Washington's time than obsessing about stains and blue dresses. --Bob
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra