Pensions

[Anonymous]

I have a state of NJ pension which I have been receiving since 2001. Why I am being asked about the cost recovery after all these years is new to me. However the question is being asked and the NJ tax questions is telling me I have to enter the cost of the annuity and the cost recovered in prior years for an event that occurred some 23 years ago. (Part "C" Line 2. How do I get rid of this error?  

[fanfare]

If you have a company pension, the cost to you (i.e contributions) is zero. there is nothing to recover.

@Anonymous 

[Anonymous]

Please read the question. When you and the employer contribute there is a recovery of the employee contributions. My question is basically why after 20 some years I am being asked this and why after using the general recovery method on the Fed for no reason, that the state carryover shows the 3 year method and I can't change it. The link on the page takes one to the NJ state web page tax fact that recommends using the general method and states the Feds don't use the 3 year method anymore. It must be an error in the program itself.

[BillM223]

Any chance you made contributions to the 401(k) plan prior to January 1, 1984?

Read the Section "Pensions and Annuities" below and see if that speaks to you.

Check out Retiring in New Jersey Tax Guide.