Do I add my TSP contributions as an other wage adjustment in NJ?

[MichaelL1 · Accepted solution]

EDITED: 3-18-2017 (I was citing a tax bill that was not made a law for NJ, so TSP is NOT the same as a 401K for tax purposes. 

A Federal Government Thrift Savings Plan (TSP), while similar is not treated like a 401K contribution for NJ and you have to do the following for state wages. 

Under New Jersey law, contributions to retirement plans (other than 401(k) Plans) are included in State wages on the W-2 in the year the wages are earned. This may cause your State wages (Box 16) to be higher than your Federal wages (Box 1). 

http://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1.pdf

While the below site from the NJ Military treatment says they are similar they are not similar for income tax reporting. 

TSP

The Thrift Savings Plan is a retirement savings plan for FERS and CSRS employees similar to “401 K” plans available in private sectors.

Source: http://www.nj.gov/military/hro/er/tsp.html

[jadolph711]

Michael, can you clarify please? I have researched this and was under the impression that contributions to the federal TSP were not treated by NJ as 401(k) contributions and must be added to NJ gross income. I discussed with the someone at NJ Tax Dept recently. NJ does not tax the money when it is taken out - later in retirement. NJ seems to do the opposite of the federal. Did something change recently?

[jadolph711]

Michael, although the link you provided did not work, I researched further and actually saw this before. I believe that what you are referencing is a bill introduced to the NJ Legislature in the 2010/2011 session, but does not seem to have become law. Do you have any information that this bill actually became law? Thank you.

[MichaelL1]

Sorry about the link, it works when I put it there and then stops.  This is a major point so I will find out.

[MichaelL1]

Thank you I agree the bill did not become law and for NJ the TSP is NOT the same as a 401K.

[jadolph711]

That is what I thought. Thank you. On the other hand, I did learn that NJ does NOT tax you on the way out, when you withdraw the funds in retirement. It seems to be the complete opposite of the federal approach.