If you have a 1099-R, what codes have been entered in Box 7? TurboTax may be applying a tax on the entire amount converted to the Roth IRA because as of January 1, 1984, and according to the NJ Division of Taxation, contributions that employees made to 401(k) plans from their wages were not taxed. Since the contributions were not taxed when made, they are fully taxable when you receive a distribution (withdrawal). If you made contributions to a 401(k) plan before January 1, 1984, your distribution will be treated differently than if all the contributions were made after that date.
NJ Tax Guide_Retiring in NJ
@ash49
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