Section 401(k) and similar plans - not an IRA.
If you made contributions:
1. On or after January 1, 1984, your contributions to your 401(k) Plan were not included as income when they were made, unless the contributions exceeded the federal elective deferral limit. As a result, you must report all distributions on your New Jersey Income Tax return because they are fully taxable;
see here: https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1.pdf
Thanks but this is not a 401k. It’s a TSP. as such nj will not allow my contributions to reduce my income. So your reply , while appreciated is not correct.
My contributions to my tsp are included in my income. So I am taxed before contributions and taxed after
If you chose Roth, it is tax- free
otherwise it is tax-deferred just like a 401k
You are not taxed twice.
If you want to treat your tsp like an IRA,
you would have to complete Worksheet C, use override, and file a paper return,
OR
Use the NJ website e-File portal for NJ residents.
copy the amounts from the paper TurboTax return.
That could be error-prone.
NJ may disallow your Worksheet exclusion if they notice your distribution is not from an IRA.
@jmulls1920
I appreciate your help but you lost me when you asked what is a tsp? You’re guessing and I appreciate your effort but a tsp in nj is treated differently than a 401k. I hope someone in nj with experience replies.
I looked it up LOL
The bullet list is straight from the Federal Thrift Savings Plan website, with links.
see here under Contributory Plans, which confirms your position.
https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1.pdf
Do you want me to delete all my previous posts ??