Since you code G in box 7 there will be different questions:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter your 1099-R
- Select "No" to "Did you move this money from a 401(k) to a Roth 401(k)?"
- Continue through the questions until "Did you move the money to a Roth IRA?" and select "Yes" and continue through the questions.
Please see these instructions in regards to the NJ question:
New Jersey Special Handling of Pension Distributions
TurboTax New Jersey uses the following pension codes:
M - Military pension or survivor's benefit
D - Disability benefits received for total and permanent disability (under age 65 only - if age 65 or above, use the Three-year or General rule)
T - Three-year rule pension benefits
G - General rule pension benefits
You can deduct disability benefits received if you were totally and permanently disabled and you are under age 65.
You can use the three-year rule method or the general rule method to calculate the taxable and excludable amounts for pension benefits.
Three-year rule: You may use this method if you will recover all of your contributions to the plan within 36 months from the date you receive your first payment from the plan, and both you and your employer contributed to the plan. Benefits based on your contributions are not taxable in New Jersey, but benefits based on your employer's contributions are fully taxable.
General rule: You must use this method if you will not recover your contributions within 36 months from the date you receive your first payment from the plan, or your employer did not contribute to the plan. Use this method to calculate a percentage of your annual benefits that is not taxable in New Jersey. Once you calculate the non-taxable percentage it will be used for all distributions from this plan in the future.
401(k) benefits: You must choose either the three-year rule or the general rule method if you made contributions to your 401(k) plan before 1984. New Jersey did not allow a deduction for these contributions in 1983 and prior years.
Other pension benefits are fully taxable in New Jersey (selecting "none of above").
If, as an employee, you were not required to pay into or make contributions to your retirement plan while you were working, it is a "noncontributory" plan, and all the amounts you receive from that plan are fully taxable.
If you made contributions to your retirement plan, it is a "contributory" plan. For New Jersey income tax purposes, you will use either the Three-Year Rule Method or the General Rule Method to determine the taxable part of any distribution you receive from a contributory plan other than an IRA. When using the Three-year Rule Method, your pension is nontaxable until the payments you receive from the plan equal the amount you contributed. Once you have received an amount equal to your contributions, all payments from the pension plan are fully taxable.
When you use the General Rule Method, in the first year, and every year after, part of your pension or annuity payment is taxable, and part can be excluded from your gross income.
For more information on pensions and annuities, see the New Jersey Division of Taxation, Tax Topic Bulletin GIT-1.
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