For tax year 2023, I converted $30K from my SEP IRA into my Roth IRA. This is the first time I have done this and it appears I am being charge NJ tax on the withdrawal. My understanding is my contributions were taxed when I made them and are not taxed by New Jersey when withdrawn. Interest, dividends, and other earnings credited to my SEP are taxable when withdrawn. I have managed and track these numbers, but it appears Turbo Tax is not recognizing it as my previously taxed income.
