Bill
Bill > A3207
NJ A3207
NJ A3207Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 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does not make the RMD, federal law requires the taxpayer pay a penalty in the amount of 50 percent of the RMD not withdrawn.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 from certain retirement plans. Federal law requires these RMDs, which are then subject to federal and state income tax. This bill will benefit many New Jersey seniors by reducing their state income tax burden on these forced distributions.
Committee Categories
Health and Social Services
Sponsors (1)
Last Action
Introduced, Referred to Assembly Aging and Human Services Committee (on 01/09/2024)
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/2024/A3207 |
| BillText | https://pub.njleg.gov/Bills/2024/A3500/3207_I1.HTM |
Loading...