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.
Permalink Submitted by Alan - IRA critic on Sun, 2015-06-14 23:36
Most states conform to the federal rules, but there are a couple of exceptions.
Permalink Submitted by Ben Meyer on Tue, 2015-06-16 21:44
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.