DaveF1006
Expert Alumni

Retirement tax questions

Yes, if you followed the directions given in this Turbo Tax post, the amount shown in Box 5A is not taxable but it shows up as a taxable distribution in the NJ-1040. This is because New Jersey does not allow non-deductible IRA contributions according to this post from Nj.us. As a result, you will need to enter  information in the NJ tax return that would deem this distribution non-taxable.  

 

Remember with  a Back Door Roth, it was originally a contribution that became a distribution in the 1099R.  From the distribution, it became a conversion, all done through the back door.

 

As you complete your New Jersey return, there will be a screen addressing your Roth Conversion, here you will record the amount of $6000 as a contribution previously taxed by New Jersey. Here is what the screen looks like in the New Jersey state tax section.

 

 

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