Bill
Bill > A4423
NJ A4423
NJ A4423Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
summary
Introduced
07/20/2020
07/20/2020
In Committee
07/20/2020
07/20/2020
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 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 72 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does not make the RMD, federal law requires the taxpayer pay a penalty in the amount of 50 percent of the RMD not withdrawn.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 gross income tax the required minimum distributions (RMDs) from certain qualified retirement plans. Federal law requires taxpayers aged 72 or older to withdraw a minimum amount each year from these plans, 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, reducing the state income tax burden for many New Jersey seniors.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Introduced, Referred to Assembly Appropriations Committee (on 07/20/2020)
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/bill-search/2020/A4423 |
| BillText | https://www.njleg.state.nj.us/Bills/2020/A4500/4423_I1.HTM |
| Bill | https://www.njleg.state.nj.us/Bills/2020/A4500/4423_I1.PDF |
| BillText | https://www.njleg.state.nj.us/2020/Bills/A4500/4423_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2020/Bills/A4500/4423_I1.PDF |
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