NJ Unrecovered IRA Contributions

[StanD1]

My wife and I have traditional IRA accounts. We both have a basis for federal non deductible contributions that we have filed via IRS Form 8606. Can we use these figures for the NJ unrecovered contributions? Do NJ unrecovered distributions apply for both individual and Roth IRA's It is a bit confusing from what I have read online.

[ErnieS0]

No. Your New Jersey amount will be different. New Jersey does not allow a deduction for IRA contributions. Your NJ IRA basis is your total traditional IRA contributions.

Roth contributions and distributions are separate. If you receive a qualified distribution from a Roth IRA, do not report any portion of the distribution on your return.

See IRA Withdrawals

[fanfare]

"Your NJ IRA basis is your total traditional IRA contributions."

For purposes  of the first year calculation, your NJ IRA basis is your total traditional IRA contributions, less any amounts you already distributed but did not pay NJ tax on.

You will need good records showing what you put in over the years, or some way to reconstruct that information.

Since a Roth IRA is generally not taxable, there is nothing to be recovered.

[fanfare]

If the NJ Retirement Income Exclusion eliminates your tax, the unrecovered calculation becomes moot.
You qualify for the pension exclusion if:

• You (and/or your spouse/civil union partner, if filing jointly) were 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year (December 31 for calendar year filers); and
• Your total income for the entire year was $150,000 or less.

[wangwx75]

For 'NJ Unrecovered IRA Contributions' I don't think I have it, so I put '0', but TurboTax keep saying error.  How can I correct it?  Can you send answer to [email address removed] or let me know where you put the answer?

Thanks.

[fanfare]

If you don't want recovered contributions, and TurboTax won't accept zero, enter one dollar.

BUT

if you made a meaningful  deductible contribution this year, you will end up with unrecovered contributions.