Federal portion is correct; however, when it transferred to New Jersey tax return TurboTax taxed the entire IRA distribution. The IRA distribution was converted to a Roth IRA - therefore money should not be taxed.
As you prepare your NJ return, you'll see a screen Roth Conversion For You. If you had no other traditional IRAs existing before or after the conversion, you would enter the amount of the distribution as Contributions Relating to This Distribution Previously Taxed By NJ. See the screenshot below.
As you prepare your NJ return, you'll see a screen Roth Conversion For You. If you had no other traditional IRAs existing before or after the conversion, you would enter the amount of the distribution as Contributions Relating to This Distribution Previously Taxed By NJ. See the screenshot below.
Thanks . I had to unhide the form and then was able to edit and it worked.
Hello IsabellaG,
Very useful information.
I was able to do the Federal portion as well
Quick question specific to my case.
I did a $6,000 traditional IRA contribution Q1 of 2019, this money grew to about $6,058 and I converted it to Roth IRA in Q3 of 2019. On TurboTax 2019, I placed $6,058 on Value of Account on Date of Distribution, and $6,000 on Contributions Related to This Distribution Previously Taxed by New Jersey. Am I doing this correctly?
I appreciate your help and expertise.
Thanks.
Jeff
Is there a new way to address this in 2021? I can't find this update in the current year.
I have the same question. How do we handle for 2021 taxes for NJ After-Tax 401K contribution rolled over to Roth?
If you have a 1099-R, what codes have been entered in Box 7? TurboTax may be applying a tax on the entire amount converted to the Roth IRA because as of January 1, 1984, and according to the NJ Division of Taxation, contributions that employees made to 401(k) plans from their wages were not taxed. Since the contributions were not taxed when made, they are fully taxable when you receive a distribution (withdrawal). If you made contributions to a 401(k) plan before January 1, 1984, your distribution will be treated differently than if all the contributions were made after that date.
Hi @IsabellaG could you reshare the screenshot? Your solution might solve my question but I don't see the screenshot in the post!
And sure enough in the forms, you'll see how this flows through seamlessly as non taxable
And this Pensions worksheet as well
Enjoy the rest of your evening!
I am using Turbotax Desktop. Running into same issue. I don't see these prompts. It only asks if there was a ROLLOVER to SIMPLE IRA. Can you please help?