Question

NJ IRA Distribution and Previously Taxed Contributions

Forum|Forum|6 years ago
March 1, 2020
1 reply
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I have multiple Traditional IRA accounts. Some accounts have previously taxed contributions, some do not. I converted part of one of the IRAs to a Roth. The account that I took this money from did not contain any previously taxed contributions (years ago it had been rolled over from a 401k).

I know that on the Fed side if you have non-deductible contributions you divide your total basis by the total value of all your Traditional IRA accounts to get a percentage that you apply to the distribution. For NJ, it is unclear to me whether the calculation is the same. When I look at the TurboTax instructions for that line it looks like I enter only previously taxed contributions to that specific IRA account, in which case I would enter 0 on that line. Am I correct?

Thanks.

M

MAK70

Yes, for New Jersey, some retirement contributions are are taxed when they are contributed to avoid having to pay state taxes at retirement- but this is not always the case so you must indicate which contributions were NOT previously taxed.