Bill > A5470

Introduced Session

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does not make the RMD, federal law requires the taxpayer pay a penalty in the amount of 50 percent of the RMD not withdrawn.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

Committee Categories

Tony Bucco (R)*,  BettyLou DeCroce (R)*, 

Introduced, Referred to Assembly Appropriations Committee (on 06/06/2019)

Official Document