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Bill > S3837
NJ S3837
NJ S3837Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
summary
Introduced
06/03/2019
06/03/2019
In Committee
06/03/2019
06/03/2019
Crossed Over
Passed
Dead
01/08/2020
01/08/2020
Introduced Session
2018-2019 Regular Session
Bill Summary
This bill excludes from the gross income tax the required distributions from certain retirement plans. Federal law requires a taxpayer aged 70.5 or older to withdraw a minimum amount each year from certain retirement plans, commonly known as a "required minimum distribution" or an RMD. If the taxpayer does not make the RMD, federal law requires the taxpayer pay a penalty in the amount of 50 percent of the RMD not withdrawn. In effect, an RMD is forced income, which is then subject to federal and State income tax. Under this bill, RMDs will no longer be subject to the New Jersey gross income tax. The exclusion will benefit many New Jersey seniors by reducing their State income tax burden.
AI Summary
This bill excludes from the New Jersey gross income tax the required minimum distributions (RMDs) that taxpayers aged 70.5 or older must withdraw annually from certain retirement plans. Under federal law, RMDs are considered forced income subject to taxation, but this bill will provide tax relief to many New Jersey seniors by exempting RMDs from the state's income tax.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 06/03/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=S3837 |
| BillText | https://www.njleg.state.nj.us/2018/Bills/S4000/3837_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2018/Bills/S4000/3837_I1.PDF |
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