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Level 2
February 1, 2020
Question

Roth IRA Backdoor Conversion in NJ

  • February 1, 2020
  • 4 replies
  • 16 views
Both my wife and I performed a 6,000 contribution to a Traditional IRA and then converted each account into our respective Roth IRAs. We had no other form of IRA accounts on the conversion date and our balances remained at 0 in the traditional after that date. For our NJ state return, should I be entering 6000 in the amount previously taxed by NJ as part of the conversion? What do I enter on the screen "IRA Information for.." in the Total of IRA Contributions Previously Taxed?

4 replies

Level 7
February 4, 2020

Yes, that is exactly how you would report it. Even payroll contributions to these accounts are taxed by NJ first.

Level 2
February 3, 2022

this answer makes no sense

what does on report on - Value of Account on Date of Distribution -

and what does one report on - Contributions Related to This Distribution Previously Taxed by New Jersey

 

putting 0 and 6000 leads to errors in smart check

 

fanfare
Level 15
February 3, 2022

@byegneswaran 

Since your IRA is now zero you have no NJ unrecovered contributions.

 

If you can't just skip this part, 

enter zero for value of IRA on date of distribution.

 

Your Backdoor Roth doesn't appear on NJ tax return and you don't need to start/maintain/complete that worksheet.

 

I don't have TurboTax 2021 so I can't try this.