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February 17, 2020
Question

Does New Jersey tax 403b contribution (if 403b plan is from pennsylvania employer)

  • February 17, 2020
  • 1 reply
  • 0 views

I work in PA(not in philadelphia).  Its a W2 job.

 

I maxed out 403b account @ 19K.

 

I live in New Jersey. 

 

box 16 is greater than box 1 by 19k.  Why is NJ taxing my 401k contribution ?

1 reply

Critter
Employee
February 17, 2020

Because they do ... they do not allow a deduction of the contribution however they will not tax any of the distributions later ... sort of like a ROTH IRA. 

hdurina84Author
February 17, 2020

Please see this-

 

NJ allows deduction on 401ks. 

PA does not.

 

https://www.state.nj.us/treasury/taxation/njit5.shtml