Deferrals into Q plan in a state with state income tax

Good evening.. I work in Florida where there is no state income tax..

Working with a prospect who lives is a state where there IS state income tax.

Do deferrals into a Q plan also result in the same deferral for state taxes?

Thanks in advance.



Most states conform to the federal rules, but there are a couple of exceptions.



New Jersey is such a state.  Deferrals to 403(b) plans in NJ are after tax for NJ taxation, but deferrals to 401(k) plans are pre-tax as with Federal.  403(b) plans for NJ residents thus have a dual basis when distributions or rollovers to an IRA are performed.



Add new comment

Log in or register to post comments