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Returning Member
posted Feb 1, 2020 8:44:38 AM

Roth IRA Backdoor Conversion in NJ

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?

0 4 553
4 Replies
Expert Alumni
Feb 4, 2020 2:09:01 PM

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

New Member
Feb 2, 2022 8:49:45 PM

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

 

Level 15
Feb 3, 2022 3:18:37 AM

@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.

Level 15
Feb 3, 2022 3:33:45 AM

If you can't just skip this part,

Enter 6000 and 6000  not 0 and 6000

 

Value of IRA at year end: zero.

 

This should give you a valid result (zero on line 20a).