Bill
Bill > S3007
NJ S3007
NJ S3007Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
summary
Introduced
09/22/2022
09/22/2022
In Committee
09/22/2022
09/22/2022
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does not make the RMD, federal law requires the taxpayer pay a penalty in the amount of 50 percent of the RMD not withdrawn.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) from certain qualified retirement plans. Federal law requires taxpayers aged 72 or older to withdraw a minimum amount each year from these retirement plans, and this withdrawal is typically subject to both federal and state income tax. Under this bill, those RMDs will no longer be subject to the New Jersey gross income tax, providing tax relief for many New Jersey seniors.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 09/22/2022)
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/2022/S3007 |
| BillText | https://pub.njleg.gov/Bills/2022/S3500/3007_I1.HTM |
| Bill | https://pub.njleg.gov/Bills/2022/S3500/3007_I1.PDF |
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