DaveF1006
Expert Alumni

Retirement tax questions

Since you’re filing as a nonresident in New Jersey, your Roth IRA distributions generally should not be subject to New Jersey income tax. New Jersey has special tax rules for IRA distributions. The system may still ask for the amount to see if any portion is taxed.

 

New Jersey typically taxes only the portion of a distribution that exceeds previously taxed contributions. For Roth IRAs, distributions are generally tax-free if the account is at least five years old and you’re over 59½. Since you’re a nonresident, your pension, annuity, and IRA income should not be subject to New Jersey tax. The system may be asking for the amount to verify whether any portion qualifies as taxable income under state rules.

 

If the software thinks it's money but doesn't tax it, it's probably just a report requirement instead of a real tax liability.

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