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NJ A353

NJ A353
Requires public employers that offer deferred compensation retirement plans to also offer Roth contribution option.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill requires that any public entity within the State that offers to its employees a deferred compensation plan to also offer a Roth contribution option for the employees who participate in the plan. Roth contribution options permit employees to make after-tax contributions to the retirement account through salary deductions. These after-tax contributions, and any subsequent earnings, can be withdrawn tax-free in retirement. Under current law, there is no requirement that a Roth contribution option be made available to public employees who choose to participate in their respective deferred compensation retirement plan. Under current law, public employers may offer a deferred compensation plan to their employees. Deferred compensation plans provide an opportunity to voluntarily shelter a portion of an employee's salary from federal income taxes to save for retirement to supplement Social Security and any other retirement plan provided by public employers to their employees.

AI Summary

This bill requires that any public entity within the State that offers to its employees a deferred compensation plan must also offer a Roth contribution option. Roth contribution options allow employees to make after-tax contributions to their retirement account, which can then be withdrawn tax-free in retirement. Under current law, there is no requirement for public employers to offer a Roth contribution option to employees participating in deferred compensation plans, which provide an opportunity to shelter a portion of an employee's salary from federal income taxes to save for retirement.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 01/09/2024)

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