Is a 401K taxable in the state of NJ?

In New Jersey, distributions from a 401(k) are subject to state income tax. While federal taxes may also apply, New Jersey does not offer a tax deduction for contributions made to a 401(k) plan. However, individuals over the age of 59½ may be eligible for a tax exemption on up to $100,000 of their retirement income, which includes 401(k) distributions. Always consult a tax professional for the most accurate and personalized advice.