If you are unable to withdraw all of your contributions within three years, then select the general rule. If you use the General Rule Method, part of your pension or annuity payment is taxable and part is excluded from your income every year. If you are filing a resident return, you must report both the taxable and excludable portions of your distribution on the separate lines provided for that purpose on Form NJ-1040.
Please read this NJ source for further details.
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