Hi kc6078,

Perhaps I misunderstood, but doesn't your answer contradict what @LouScafidi reported from NJ Dept of Taxation?

Also,  according to page 9 of https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf, it states "Do not report on your State return a lump-sum distribution you roll over to a traditional IRA or other eligible plan if the rollover qualifies for deferral under federal income tax law."   Since, the Cares Act does provide 1/3rd taxable provisions, so according to this document, shouldn't NJ allow the same rules? 

Is there an explicit declaration from NJ which states otherwise?