NJ General Rule for Pension payout

I started receiving a pension distribution from a former employer. When i get to the TurboTax New Jersey State taxes, it is asking me for the General Rule, namely "basis" and "expected return on contract". I don't understand. Since this is a pension, it is not starting from a dollar amount, like a 401 K would be doing. Any suggestions?

1873

Expert Alumni

Mar 18, 2024 2:10:32 PM

Some pensions contain both an employer and employee contribution (basis).

The employee contribution portion of any distribution would be non-taxable.

Is there an amount in Box 5 of your 1099-R, or another notation, that may indicate to TurboTax that you have a basis in your pension?

If you can clarify, we'll try to help.

Here's more info from the IRS on Pensions and Annuities.

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NJ General Rule for Pension payout