Roth withdrawal

[RonTrull]

What is the name of your state?NJ

How much of a 2018 withdrawal from a Roth IRA is taxable by my state (NJ)?

Will my Roth custodian tell me at EOY the amount that was principal and the amount that was earnings?

Will this withdrawal affect my (IRS) Modified AGI and therefore my (Obamacare) ACA Premium Subsidy?

 

[Taxing Matters]

If the Roth withdrawal is a “qualified distribution” then it is not includable in your income. Otherwise, part of it may be. NJ pretty much follows federal law on that. See the discussion of Roth IRAs starting on the bottom of page 23 of the NJ-1040 instructions. This assumes, of course, that NJ law will be unchanged for 2018 returns.

Ask the custodian what information you will receive on the Roth at the end of the year.

If the Roth distributions are qualified distributions under federal tax law then they are not counted in the MAGI for determing your ACA subsidy. See the discussion of what is included in that from the U.S. Health and Human Services (HHS) page What's included in income.

 

[RonTrull]

Thank you