PA IRA to Roth then a withdrawl

[thetaxman2200]

I have a client who converted a IRA to a Roth IRA in 2010 - took the 2011 and 2012 tax options. In 2011 he took a distribution from the Roth. Would this be taxable in Pennsylvania tax return? He is over 80 years old.

Thanks

Brian

[KBTS]

Answer from the PA DOR website:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/274/~/taxability-of-roth-iras-according-to-pa-income-tax-rules

[Koss]

Pennsylvania

Pennsylvania is definitely weird when it comes to retirement accounts.

Neither the conversion nor the distribution should be taxed by Pennsylvania.

The original contributions to the traditional IRA were subject to Pennsylvania income tax back in the years when the contributions were made.

BMK

[Lion]

Contributions to traditional IRAs are taxable in PA? Added back from federal AGI on PA return?

[Dusty2004]

No Fed AGI in PA

Contributions to traditional IRAs are taxable in PA? Added back from federal AGI on PA return?

PA does not use the Fed AGI at all. They have their own classes of income and little deductible expenses. For example: If you have a loss from selling stocks you cannot deduct that loss against other types of income (W2 for example).

Dusty

[Lion]

Sorry, momentary panic! I prepare only one PA return, and no IRA contribution for 2011. So, I was trying to remember back to 2010 prep and what I did or didn't do and what I relied on my software to do. Just checked, and all is well. Whew!