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My wife and I both have Roth IRA's started back in 2000 or before (I
forget exactly when but somewhere between 1999 and 2001).

We made an original contribution and added to it over the years, stopping a few years ago.

These were not "conversions" - we opened them as Roth IRA's
originally. They've been transferred from Galaxy to Columbia to Sun
America, but nothing taken out until 2008 and 2009.

I'm using TurboTax to do our taxes and happened to
notice that it wants us to pay taxes in MA on withdrawals.
I only noticed it this year but looking back, it did the same thing in 2008.

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.

In 2008 we withdrew $5,000 from mine.
In 2009 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 - I'm 62 now and she'll be 64 this year.

Also, my wife has been disabled for at least 5 years (collecting from SS early because of that) - so I think she qualifies twice?

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

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

But if I read Example #3
correctly, that shouldn't matter: we started these IRA's 10 years ago
or more. Anyway, because of falling value, the darn things aren't
worth 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 (maybe something I entered incorrectly way back when - I've been using TurboTax for many years) or is there something I'm not understanding?
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