nonsense
in NEW JERSEY ira and 401k are NOT deductible in the year those contributions are made AND ARE FULLY TAXED BY STATE OF NJ
and therefore, there is a basis
and the only thing taxable from withdrawal such as when you retire is any earnings on the 401k after contributions
however, this comment could explain why the turbo tax for nj tax incorrectly makes you pay taxes again on the basis, that is on money you were already taxed on
