Should a distribution from a pre tax 401k that was converted to an IRA be taxable in new jersey?

[CathySandford]

Turbo tax is not taxing it in NJ because IRA contributions are post tax in NJ. This is a rollover IRA.

[Opus 17 · Accepted solution]

Rollovers are not contributions.  

What ends up happening is that you need to keep track separately of your pre-tax and after-tax amounts in your IRA, and self-report when you withdraw.  Any IRA under NJ law will be a mix of already-taxed money (contributions) and never-before taxed money (which will include earnings and this rollover).  Just keep track of your various contributions and rollovers and calculate the taxable portion when you start making withdrawals. 

https://www.nj.gov/treasury/taxation/njit8.shtml