topic Roth IRA Backdoor Conversion in NJ in Retirement tax questions

Roth IRA Backdoor Conversion in NJ

mikjon — Sat, 01 Feb 2020 16:44:38 GMT

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?

Re: Roth IRA Backdoor Conversion in NJ

JosephF8 — Tue, 04 Feb 2020 22:09:01 GMT

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

Re: Roth IRA Backdoor Conversion in NJ

byegneswaran — Thu, 03 Feb 2022 04:49:45 GMT

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

Re: Roth IRA Backdoor Conversion in NJ

fanfare — Thu, 03 Feb 2022 11:18:37 GMT

@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.

Re: Roth IRA Backdoor Conversion in NJ

fanfare — Thu, 03 Feb 2022 11:33:45 GMT

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).