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April 11, 2024
Question

NJ State taxes line 4a and 4b

  • April 11, 2024
  • 1 reply
  • 0 views

NJ State taxes line 4a First Year of Withdrawal from IRA: Enter the total of IRA contributions previously taxed. How would I know "Total of IRA contributions previously taxed" if I had Tax-Free Rollver from Traditional IRA to HSA. 

 

I keep getting to enter the same box after entering "0."

    1 reply

    April 15, 2024

    New Jersey, as you know, does not conform to federal tax law on HSAs.

     

    A Qualified Funding Distribution from an IRA to an HSA is subject to the contribution limits on the state return, so I imagine it is treated the same in New Jersey as other HSA contributions - i.e., not tax deductible. 

     

    This means that the IRA distribution would be taxable in NJ.

     

    I don't fully understand your question - can you rephrase it?

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    just2cruzAuthor
    April 16, 2024

    Thank you @BillM223 and yes, you are correct . HSA contributions are not tax-deductible for the NJ State.