Annuity funded from a 401(k) in NJ

Forum|Forum|11 months ago
April 10, 2025
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The 1099-R I receive for an annuity I funded from a 401(k) has IRA/SEP/SIMPLE checked. TT treats it as an IRA distribution on the federal forms. Is this cause for concern?

It seems to me that it is a cause for concern on NJ state forms. In NJ, money put into a tradition IRA is taxed as income while money put into a traditional 401(k) in 1984 or thereafter is not taxed. How do I persuade TT to treat the annuity appropriately on NJ state forms? Furthermore, how do I deal with my 401(k) including contributions made prior to 1984?

RobertB4444

If you rolled funds from a 401K into an Individual Retirement Account then the IRA/SEP/SIMPLE box would be checked because it IS an IRA. So there is no cause for concern there.

It may cause you concern in New Jersey because it is taxable. TurboTax is treating it correctly on the forms. If the money had stayed in a 401K then it would be different. But it did not and it is an IRA now and New Jersey taxes those. The contributions prior to 1984 don't apply here because you rolled everything into an IRA.

@WizardOfIsd

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