On the other hand, when you take withdrawals from the IRA the portion of the withdrawal that is a return of previously taxed contributions is not taxable. Of course, to take advantage of that you have to have kept track of your contributions over the years.
NJ also has a very generous exclusion for retirement income, including IRA withdrawals, if your total income is under $100,000. For 2017 it's $30,000 for single, $40,000 for MFJ, and going up more over the next few years.
