Cristy n taxes
Level 1
‎04-15-2020 05:06 PM

If a client rolls over KPERS retirement into a traditional IRA, are the earnings tax free on the Kansas return just like Kpers or are the earnings after the direct rollover taxable?

0 Cheers
qbteachmt
Level 15
‎04-15-2020 05:59 PM

Earnings in a Traditional IRA are taxable. All distributions from a Traditional IRA are computed for taxability against Basis, and earnings are never part of Basis. They are New Value.

*******************************
Don't yell at us; we're volunteers
IRonMaN
Level 15
‎04-15-2020 08:07 PM

If the client already did it, they just shot themself in the foot.   If they haven’t done it yet, take their bullets away before they get hurt.


Slava Ukraini!