topic Re: IRA Basis in State tax filing

IRA Basis

TomDx — Mon, 09 Mar 2026 09:48:22 GMT

Let's say that at June 1 2020 my Traditional IRA has a balance of 0. Then on Feb 1 2021, I make a nondeductible contribution of $6000 and immediately convert it to a Roth. On Feb 1 2022, I make a nondeductible contribution of $6000 and immediately convert it to a Roth. What is my traditional IRA basis at Dec 31. 2020 and what is my traditional IRA basis at Dec 31. 2021?

Thanks

Tom

Re: IRA Basis

FangxiaL — Mon, 18 Apr 2022 23:50:53 GMT

If the first $6000 is a contribution for tax year 2020, your basis as of 12/31/2020 is $6000. If the 2nd $6k is a contribution for 2021, your basis as of 12/31/2021 is $6k.

Re: IRA Basis

TomDx — Tue, 19 Apr 2022 00:07:18 GMT

Thank You!

Re: IRA Basis

fanfare — Tue, 19 Apr 2022 00:13:36 GMT

this is all shown on your Form 8606 if you filed it correctly.

NJ 1040 - Box 14

TomDx — Tue, 19 Apr 2022 02:09:43 GMT

I have 2 amounts in Box 14 of my W-2... 414H - $6,61.75 and PT Med&FSA - $5,375.84... NJ is taking those amounts and adding them to Box 1, which increases my wages by $11,638. I know 414H is the State Deferred Pension Plan... Why would NJ pick that up as income?

Thanks

Tom

Re: NJ 1040 - Box 14

FangxiaL — Tue, 19 Apr 2022 02:26:40 GMT

We have the same in NY. It is an add-back on state income tax because when you are retired, the pension income is tax-free for your state income tax purposes. It is still taxable for federal purposes, though.