Why does the government want to know the value of my IRAs?

By Karin Price Mueller NJMoneyHelp.com for NJ.com States can't take back taxes on retirement accounts if you move away. Q. My wife and I are both seniors who are retired. Several years ago, our tax preparer wanted to know the total value of our combined IRAs for our New Jersey return. When I asked why, she said it was because if we moved to a state such as Florida where there is no state income tax, New Jersey would seek to claw back state income taxes on IRA money that was earned in New Jersey. Is that correct? -- Retired A. It's against federal law for any state to claw back taxes on money earned in that state if the taxpayer moves to a tax-free state. But there are valid reasons why your

How do I value these IRAs for tax purposes?

Q. I have three separate retirement accounts held at a single brokerage firm. The first is a traditional IRA on which I paid New Jersey tax on my contributions when I made them. I have a rollover IRA which was originally an out-of-state 401(k). I did not pay New Jersey tax on those contributions. Then there's a second rollover IRA that was originally a 457(b) account. Those contributions were taxed when I made them. In 2018 I converted $10,000 from the former 401(k) to a Roth. How do I value the year-end value of the accounts for my tax return? -- Taxpayer A. We're glad to hear you've saved over the years. There are a few items to note. When you take a distribution from an IRA, you must incl

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