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April 13, 2025
Question

3-year or General Rule for NJ pension exclusion

  • April 13, 2025
  • 1 reply
  • 0 views

I've reviewed all questions concerning the 3 year rule and  NJ pensions (teachers) and failed to find future filing guidance for after the employee contribution has been recovered. Am I correct in assuming that I should continue to use the 3 year rule on all future filings and input the same figure in the "Annuity Cost" and "Cost Recovered in Prior Years" fields?

    1 reply

    fanfare
    April 13, 2025

    If your contribution is now recovered, your pension is 100% taxable, there is no rule to be applied.

    If your contributions were not recovered in 36 months, you used the wrong rule.

     

    @kickitagain