{"id":167784,"date":"2023-11-03T08:59:08","date_gmt":"2023-11-03T08:59:08","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/does-nj-tax-401k-contributions\/"},"modified":"2023-11-03T08:59:08","modified_gmt":"2023-11-03T08:59:08","slug":"does-nj-tax-401k-contributions","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/does-nj-tax-401k-contributions\/","title":{"rendered":"Does NJ tax 401k contributions?"},"content":{"rendered":"

Yes, New Jersey taxes 401k contributions. While contributions to a traditional 401k account are not subject to federal income tax when they are made, they are subject to state income tax in New Jersey. This means that funds contributed to a 401k account are considered taxable income in the state of New Jersey.<\/p>\n

New Jersey residents who contribute to a traditional 401k account may be subject to state income tax on their contributions. When funds are withdrawn from a 401k account in retirement, they are subject to state income tax as well. This can result in New Jersey residents paying state income tax on their 401k contributions both when they are made and when they are withdrawn.<\/p>\n

Contributions to a Roth 401k account, on the other hand, are made with after-tax dollars and are not subject to state income tax when they are withdrawn. This can make Roth 401k accounts an attractive option for New Jersey residents looking to minimize their tax burden in retirement.<\/p>\n

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