Bill
Bill > A2938
NJ A2938
NJ A2938Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
summary
Introduced
02/28/2022
02/28/2022
In Committee
02/28/2022
02/28/2022
Crossed Over
Passed
Dead
01/08/2024
01/08/2024
Introduced Session
2022-2023 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does not make the RMD, federal law requires the taxpayer pay a penalty in the amount of 50 percent of the RMD not withdrawn.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 New Jersey gross income tax the required minimum distributions (RMDs) that taxpayers aged 72 or older must withdraw annually from certain retirement plans. Under federal law, RMDs are considered taxable income, but this bill will provide tax relief to many New Jersey seniors by exempting their RMDs from the state income tax.
Committee Categories
Health and Social Services
Sponsors (2)
Last Action
Introduced, Referred to Assembly Aging and Senior Services Committee (on 02/28/2022)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2022/A2938 |
| BillText | https://pub.njleg.gov/Bills/2022/A3000/2938_I1.HTM |
| Bill | https://pub.njleg.gov/Bills/2022/A3000/2938_I1.PDF |
| BillText | https://www.njleg.state.nj.us/Bills/2022/A3000/2938_I1.HTM |
| Bill | https://www.njleg.state.nj.us/Bills/2022/A3000/2938_I1.PDF |
Loading...