Double tax on retirement accounts in New Jersey? No Way!

 

Way……. this is New Jersey after all.

When you made contributions to your §403(b) or §457 account(s) during your career teaching, you paid New Jersey tax on the amounts you deferred. When you take the distribution of those amounts, you should be able to recover that cost basis free of tax and only be taxed on the earnings. In order to do so, you need to know the total of your contributions throughout your career. If you do not have adequate records, you may be able to get this information from the vendor(s) that held your §403(b) account(s) over the years.
 

Refer to New Jersey’s Division of Taxation Tax Topic Bulletin GIT-1 to explain
 

Otherwise, you may end up being taxed again.

 

None of the information in this document should be considered as tax advice. You should consult your tax advisor for information concerning your individual situation. Tax services are not offered through, or supervised by, The Lincoln
Investment Companies.