Retirement tax questions

Those previously taxed TSP contributions become your NJ basis. When you later withdraw from the TSP, NJ allows an excludable portion representing recovery of that basis—calculated under:

  • the Three-Year Rule (if you’ll recover your contributions within 36 months and your employer contributed), or

  • the General Rule (otherwise).

 

TurboTax should let you pick one or the other.

@Polo225