UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: HardlyRich Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81555  
Subject: Roth IRA and State Laws Date: 10/8/1998 1:33 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I am new to this board and haven't seen any posts on this subject so I'll ask now.

I live in a Massachusettes which has a state income tax. From what I have been able to discern from the state law at URL:


...Massachusettes does not appear to even recognize the Roth as an IRA. Thus any gains or dividens earned are taxable at the state level in the year they occur (just as if its a regular investment account).

Under this condition, would it still be wise to convert my Rollover IRA to a Roth if the only tax benefits are at the Federal level and I must pay all state taxes as they occur?

Also, I had opened a Roth IRA in the beginning of the year and contributed my $2000. Should I continue with this account, making yearly contributions of $2000 even though the state will treat the account as any regular investment account.

Are other states recognizing Roth IRAs?

If my interpretation of Massachusettes law is incorrect then let me know.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.