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jjh_nj
New Member

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

 
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18 Replies

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

Please refer to your NJ tax return Line 20A to see what is taxable.

jjh_nj
New Member

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

Try again.   The problem is the Fed 1040.   Because we filed jointly, TTax lumped all the rollovers into one value ($X) on the Fed form.   This got imported into the NJ State form, but the program doesn't know who this applies to.   So it attributes it to both of us ($X to me and $X to my wife).   This might not mean anything unless it was rolled over into a SIMPLE IRA, which ours wasn't (all rollovers went into Traditional IRAs).   But if ht HAD gone into SIMPLE IRAs, NJ would have taxed the $X rollover amount twice, and that is a BIG problem when $X is a 7-figure number!!

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

why do you think a Rollover would be taxed once ??

Also, when you enter a 1099-R you tell TurboTax who this applies to.
jjh_nj
New Member

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I don't want to insult you, but you should look before you speak because you clearly lack an understanding of the issue.   For those affected (on who work for Intuit), I will explain it one more time.

The rollovers, in my case, were direct rollovers from employer retirement plans (i.e., 401(K)s) to IRAs and were not taxable at all.  But, if the IRAs had been SIMPLE IRAs instead of Rollover or Traditional IRA, it would be a different story.   Do a little research and you'll find that SIMPLE IRAs are not the same as Rollover or Traditional IRAs, and NJ treats rollovers from a 401(K) to a SIMPLE IRA differently (i.e. taxable event).   That is why they specifically ask that question in the Step-by-Step Interview process for the NJ State 1040 tax return.

I realize that you tell Turbo Tax who each 1099-R belongs to.  But that is entered when you are entering the information for the Federal 1040 return.   Turbo Tax keeps that into in a worksheet that is used in the Federal 1040 ONLY.   For a joint return, the Turbo Tax Federal 1040 program actually combines all the 1099-R amounts on the Fed 1040 form (box 4a).   And this is where the problem starts.

The problem is that the amount from Box 4a on the Federal 1040 form is then pulled into the NJ-1040 form, but only that combined amount is pulled over, not the info of how much was for each person (which is in the worksheets used in the Federal 1040 ONLY).   So, in the NJ-1040 Step-by-Step interview, the state portion of the program does not have the information on how much of that combined amount is attributed to each person filing under that joint state return.   So it incorrectly assumes that the full amount was posted for each person on the joint state return, and there is no way to correct it.   That is a mistake in the program logic, and Intuit should know better.

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I tried your scenario with NJ step by step and you are correct it is misleading and a bug.
However, a person paying attention would not enter a doubled amount especially where 7-figures are involved..
If you enter the correct amounts, then NJ line 20A is correct.

I also see that TurboTax has some serious problems updating NJ P2 if you use the BACK or EDIT button and change your responses.
Geo7
Level 2

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

The problem still exists when I prepare for 2019 returns.  How should I contact TurboTax to correct this?

 

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

If you have made your first contribution to the SIMPLE IRA more than two years ago, you can roll it ( all ? ) into a Traditional IRA.

Otherwise it is a taxable distribution from the SIMPLE IRA and would be taxed on Federal and NJ income tax returns.

From the distribution code G, you can infer that the custodian determined that you do meet the rules.

If you meet the rules and can't get TurboTax to report it correctly, you'll have to override and file on paper.

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I too have the same issue.  But only my wife rolled over her 403b to a Tradtiona IRA.

In the Federal section, they asked who is this for and clicked for my Wife's name.

Since we are filing jointly, when I got to NJ it said that I had rolled over $xyz,xyw.xy amount and I can't remove it.

Then it NJ from says that my Wife rolled over $xyz,xyw.xy which is the correct item.  It seems to be a bug in the intuit software.  I don't even HAVE a 403b, it only belongs to my wife.  Is there something I can do here?

Please, maybe a TTAX person.

Thanks.

 

plbc
Level 2

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I have the same problem too.  Did anyone ever get a solution for this? 

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I just had the same problem. I rolled a 401K into a traditional IRA. When I get to the NJ taxes it shows the rollover for me, and then the same info shows up for mt wife. It was my account not hers. It appears this has been going on a couple of years based on the posts I read here. Any solutions yet?????

geo37
New Member

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I do not know if the problem still persists.  I will find out in a couple of weeks when I complete my return. 

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I'm preparing my return and was shocked that I need to pay NJ tax on my 401K rollover.  I just realized from reading your post that there is a difference between simple IRA and rollover IRA.  Can you tell me what is the difference?  I thought that if it's not a Roth IRA, then it is a simple IRA.  After it's rolled over, it becomes Rollover IRA.  The instructions asked if I rolled over to a simple IRA .  So it seems to me I should answer yes (since it's clear it was a rollover)?   

 

Also, how do I go back to the step by step interview?  I can no longer find that.

 

Thanks!

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

Did you do the rollover within 60 days?

 

NJ state tax prep is adding all 401K rollovers (for me and my wife) and is listing the total for each of us.

I figured it out.  I don't see 60 day rule mentioned.   

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