Retirement tax questions

@tcaliendo 

I'm not sure which end you are coming from...contribution phase or distribution phase. 

BUT

1)  During the contribution phase, a NJ person contributing to pre-tax $$ to a 401k plan thru the employer's plan, does have the $$ deducted from NJ wages in box 16 of the W-2  (not talking about ROTH 401k's here)

2) when you take a "Distribution" from that 401k plan, later , for a NJ resident, those $$ are fully taxable  (Unless contributions were made before 1984)

................From page 14 of the NJ Tax Topic Bulletin GIT 1&2 :

"Section 401(k) Plans
If you made contributions:
1. On or after January 1, 1984, your contributions to your 401(k) Plan were not included as income when they were made, unless the contributions exceeded the federal elective deferral limit. As a result, you must report all distributions on your New Jersey Income Tax return because they are fully taxable;

2. Before January 1, 1984, your contributions to your 401(k) Plan were included in your income when they were made. If you made contributions to a 401(k) Plan before January 1, 1984, or you made contributions beyond the federal limit, use IRA Worksheet C to calculate the taxable and excludable portions of your distribution."

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Link to the GIT1&2 at the bottom of page here:

State of NJ - Department of the Treasury - Division of Taxation - NJ Income Tax – Retirement Income