19 Mar I paid tax on a 401(k) rollover. Can I get it back?

Q. Last year I was taxed for a 401(k) rollover to an IRA account. I used tax preparation software and it indicated that New Jersey taxes the transfer. So I paid it. I have since found that tax policy to be untrue. My question is, how do I get that money back?
— Taxpayer

A. That hurts.

You can get it back wrongly paid taxes.

New Jersey is no different than the IRS in allowing a taxpayer to file an amended tax return within three years of the original filing to correct any errors, said Neil Becourtney, a certified public accountant and tax director with Smolin, Lupin & Co. in Red Bank.

You simply need to file Form NJ-1040X, on which you will report the original numbers on the left side and the amended numbers on the right side of the form, Becourtney said.

“If your rollover was made directly from the 401(k) plan to your IRA, attach a copy of the Form 1099-R that should have Code G in Box 7 signifying a direct rollover,” he said. “If you received the 401(k) plan distribution and subsequently rolled it over within the 60 day period allowed for executing a rollover, then I suggest attaching documentation of having done so within the required time frame.”

The reduction in your income could impact other aspects of your 2023 New Jersey gross income tax return, he said.

“For example, if you claimed a medical deduction due to your medical expenses exceeding 2% of gross income, your medical deduction will increase as a result of your reduced income,” he said.

Consider working with a qualified tax preparer to make sure all areas of your tax return that may be affected are corrected.

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This story was originally published in March 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.