Why is withdrawal of Roth IRA contributions showing as not taxable for federal but NJ is taxing a portion of it

Forum|Forum|1 year ago
February 10, 2025
1 reply
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I withdrew $5000 from my Roth IRA. I have had it open for 10 years and contributed $50000 to it , and it is now valued at over $100,000 (not sure why they asked for today’s value but I entered it). Form 1099 R had a J code, but after filling out my prior contributions, federal is exempting it, but NJ is still adding about $3000 to my income for the year even though it was just a withdrawal of contributions, not earnings. Why is this happening?

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RobertB4444

Box 2a of your 1099-R should say zero if the $5000 that you withdrew was all principal that you had deposited. Make sure that that box is zero and you should be ok.

@Orassam

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OrassamAuthor

Box 2a on the 1099R is blank. The box in 2B that says taxable amount not determined is checked

stur

i am having this same exact issue. All works well for federal but NJ is taxing me in it. Vanguard put code J and taxable amount not determined. Any further help with this?