Are Defined Benefit contributions NJ tax deferred

I have a Sole Proprietorship consulting business. I have a defined benefits contribution plan to which I contributed in 2021.

Are Contributions to Defined Benefit contributions plan (an IRS Qualified Retirement plan) tax deferred (Not taxed now but at the time of withdrawal) for NJ taxes?

1545

Expert Alumni

Mar 23, 2022 3:31:47 PM

It depends- if it is a 401k, the contributions are tax deferred and do not have to added as income in the tax year of the contribution. New Jersey does not allow a deduction for contributions to IRAs and 403(b) plans, even if they are deductible for federal income tax purposes.

Level 2

Mar 24, 2022 9:01:03 AM

Thanks.

Level 2

Apr 25, 2022 2:29:55 PM

I am a self employed person (Sole Proprietorship). I fund for my retirement via a Defined Benefit Cash Balance Plan (a type of Keogh Plan), above and beyond a 401k plan. It is neither an IRA or a 403(b) plan. It is Tax deferred for federal Income tax. Is it tax deferred for NJ tax purposes?

Thanks.

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Are Defined Benefit contributions NJ tax deferred