topic NJ General Rule Method in Retirement tax questions

NJ General Rule Method

albert_lam — Sun, 23 Feb 2020 18:52:55 GMT

I recently rolled over a 401 into a traditional IRA. The 401 company made a mistake and issued a check for a very small amount to correct the difference. I forgot and cashed the check instead of entering it into the IRA account.

I reached a part on TurboTax where it asked me to enter the amount for the "contributions made to the plan (basis)" and "expected return on contract" for the general rule method. What am I supposed to enter into those fields? Is the contributions made to the plan the amount I rolled over? Is the corrected amount I cashed the amount I enter into the expected return on contract?

Re: NJ General Rule Method

JosephF8 — Sun, 23 Feb 2020 22:05:56 GMT

Unless you have other deposits into the IRA, your amount previously taxed is limited to the 401k contributions you made prior to Jan.1, 1984. 401k contributions after that date were not taxable income at the time of contribution.

So, unless you had contributions to the 401K prior to 01/01/1984, your amount previously taxed is $0.

Re: NJ General Rule Method

tritter55 — Fri, 28 Feb 2020 14:50:08 GMT

I understand the basis should be 0, however I'm not sure what to enter in Expected Return on Contract. Please help! Thank you!