NJ does allow a deduction for contributions to 401(k)s.
NJ does not allow a deduction for contributions to cafeteria plans, HSAs, or retirement accounts that are not 401(k)s.
If your wife has a 403(b), 457, SEP, or basically anything that is not a 401(k), NJ does not give her a deduction for the contribution and her state wages will exceed her federal wages.
