Yes - the Roth distribution would only be soured to the state you actually lived in at the time of the distribution (which would be NY in your situation). So $0 is sourced to NJ.
Please note -
You can always
withdraw contributions (but not earnings) that you made to your Roth
IRA tax and penalty free at any time. Additionally, the Ordering rules for
withdrawals from a Roth IRA are: first from regular contributions, then from
Conversion and rollover contributions, on a first-in, first-out basis and
finally from Earnings on contributions.
Please refer to IRS
- Roth IRAs - Publication 590 for more information about Roth IRAs.
