Unfortunately, since you are under 59 1/2 this is a nonqualified distribution in NJ and therefore taxable in NJ.
Nonqualified Distributions are distributions not made under one of the four circumstances you mentioned and have Code J or T in box 7 of the 1099-R.
Other exceptions are:
If there is a Code T in box 7 of the 1099-R, and the distribution was made after the five-taxable-year period, it will be considered a qualified distribution and not taxable in New Jersey.
If there is a (1) Code J in box 7 of the 1099-R, and (2) the distribution was made after the five-taxable-year period, and (3) the distribution was allocated to a a first-time home buyer distribution as defined by the IRS, the home allocation will be considered a qualified distribution and not taxable in New Jersey.
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