Confusion About NJ Pension 3 Year Rule

[BarbaraNJ]

I am age 61. I was age 60 at the end of 2023.

I retired from State of NJ July 2023. I received a pension payment every month from July till Dec 2023

I also received a W2 from my employer as I was working for 2023.

All of my NJ pension deductions from my paycheck were pretax for Federal but after tax for NJ

My annual pension is $18,000. My lifetime contributions to my plan were $57,291.77

I did not make any adjustments to my 2023 income tax return for NJ. I entered exactly what was on my 1099-R form.

It looks like it will take more than 3 years to recover my member contributions.

Was I supposed to make an adjustment to my 2023 NJ income tax return for this ?

Do I need to make an adjustment to my 2024 NJ income tax return ?

I am using Turbo Tax Premier ( also used it last year).

Thank you.

[fanfare]

If you Google both NJ rules, the first hit for each should explain the difference to you.

@BarbaraNJ 

[BarbaraNJ]

Thanks very much for your reply. I already did that previously and I am still confused and thought The Community could help clarify.

Thanks again, I appreciate your response.

Barbara

[fanfare]

"It looks like it will take more than 3 years to recover my member contributions."

If you will not recover your contributions within 36 months from the date you receive your first payment from the plan you must use the General Rule. 

@BarbaraNJ 

[BarbaraNJ]

Yes, that's what I thought also. But I didn't do any of that last year so I guess I would have to file an amended return for NJ for 2023.

For this year, I will use the General Rule and hope Turbo Tax Premier can calculate it correctly.

Again, your advice and responses have been very much appreciated.

Thanks

Barbara