Did an in-plan 401(k) "conversion" (I know it is technically a "rollover" but am using the TurboTax language) from an after-tax contribution account with earnings in my 401(k) to a Roth 401(k) account within the same 401(k). For federal purposes I show the gross distribution as the entire amount of the after-tax contributions plus earnings, and the taxable amount as just the earnings (not the contributions, since they were already taxed federally).
I'm confused, though, as to the NJ treatment. TurboTax currently seems to be reporting the entire gross conversion amount as taxable NJ income, not just the earnings. I know there are special rules in NJ for pension distributions (the "general" rule and the "3-year" rule) that reduce this, but am not clear if these apply to an in-plan Roth conversion of after-tax contributions.
Can you point me in the right direction on what to look at? Thanks!
