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Level 2

New Jersey taxation of IRA RMD's

I understand that since IRA contributions are not deductible in NJ they also are not taxed when taking RMD's from the IRA.  Only the interest and gains are taxable.  How do I find out the total of my IRA contributions (over almost 50 years) so TurboTax can calculate the taxable and non taxable amounts?

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Level 15
Level 15
Intuit Approved!

New Jersey taxation of IRA RMD's

You find out the total of your IRA contributions by looking at your records of the contributions that you made. The Form 5498 that the IRA custodian or trustee sends you each year shows the amount of your contributions for that year.


If you don't have records of all your contributions, the IRA custodian might be able to provide copies of the old 5498 forms or other records of you contributions. But if you switched custodians, the current custodian probably does not have records of the contributions you made under previous custodians.


Other than the custodians, there is no central source of information about past IRA contributions.

 

Unfortunately the need to keep a record of your IRA contributions over many years is something that IRA custodians, or anyone else, doesn't tell you about when you open an IRA. Many people in New Jersey end up paying state tax on their entire IRA withdrawal because they do not have records of their contributions.

 

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Highlighted
Level 15
Level 15
Intuit Approved!

New Jersey taxation of IRA RMD's

You find out the total of your IRA contributions by looking at your records of the contributions that you made. The Form 5498 that the IRA custodian or trustee sends you each year shows the amount of your contributions for that year.


If you don't have records of all your contributions, the IRA custodian might be able to provide copies of the old 5498 forms or other records of you contributions. But if you switched custodians, the current custodian probably does not have records of the contributions you made under previous custodians.


Other than the custodians, there is no central source of information about past IRA contributions.

 

Unfortunately the need to keep a record of your IRA contributions over many years is something that IRA custodians, or anyone else, doesn't tell you about when you open an IRA. Many people in New Jersey end up paying state tax on their entire IRA withdrawal because they do not have records of their contributions.

 

View solution in original post

Level 15

New Jersey taxation of IRA RMD's

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

However, if the 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 $100,000 or less.