NJ Pensions, Annuities, and IRAs Wks - TP Part D Line 2

[Deepblack3]

Hello,

I had to accept an automatic withdrawal on a retirement account (401K) because the amount was under $1,000. I paid both federal and NJ tax on it per my 1099-R plus took the extra 10% hit when entering it on Turbotax. Now I am getting a message that my NJ form is asking for a value for NJ Pensions, Annuities, and IRAs Wks - TP Part D Line 2 and I have no idea what this means. How do I find out the "Expected return on contract (sum of total distributions - past, present, and future")? Is this just the same as the gross distribution in box 1 of my 1099-R?

[ErnieS0 · Accepted solution]

You should not filling out Part D if you received a one-time 401(k0 withdrawal. Part D is for period payments, i.e. monthly payments.

Go back to the 1099-R section.

1. Type "1099-r" in Search in the upper right
2. Select :"Jump to 1099-r:
3. Edit your 1099-R
4. Say Qualified plan (most common) on What kind of retirement plan do you have with...
5. Say NO on Any Periodic Payments?
6. Then go back to New Jersey. Those questions should be gone.

[Deepblack3]

Thanks!

[Saf5521]

I have a similar issue for 2024.  I took a one time hardship withdrawal from my 401k for medical bills.  I entered the information on the 1099-R into TurboTax.  I wasn't sure what to select when it asked the method so I selected General Rule.  My NJ return is now prompting me with Pensions, Annuities and IRAs Wks - SP: Part D, Line 2 must be entered.  It was also looing for Line 1 to be entered as well.  I am not sure what to put here.  I followed the steps provided here and still get the same error.  Should I have selected something other than General Rule?  

[MarilynG1]

The General Rule applies to annuity distributions, so delete your 1099-R entry in your Federal return and re-enter it.

You will be asked is whether this is a Public Pension (government/civil service), so select 'None of the above' if this doesn't apply, on the page 'Where is this Distribution From?'.   

Select 'Qualified Plan' on the next screen.  Select 'did something else with it' and NO to periodic payments. 

If you're under 59.5, you'll be asked later in the interview if you 'want to reduce/eliminate your Early Withdrawal Penalty'.  This is where you can indicate your Hardship Distribution from your 401k.

Here's detailed info on Penalty Exception for Non-IRA's.  

@Saf5521