Are distributions from a Roth IRA subject to Michigan income tax?

Yes. Any portion of your Roth IRA distribution that is included in your federal adjusted gross income (AGI), is subject to Michigan tax.

Distributions from Roth IRAs will only be subject to Michigan income tax if the amount is included in federal adjusted gross income. Under a Roth IRA, the contributions are taxed and the distributions are not.

If your administrator is withholding tax, you may change the amount of Michigan tax withheld on your Roth IRA distributions or request that no tax is withheld by completing form MI W-4P and sending it to your pension administrator.  Be sure to keep a copy for your records.