Bill
Bill > S2567
NJ S2567
NJ S2567Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
summary
Introduced
02/08/2024
02/08/2024
In Committee
02/08/2024
02/08/2024
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does not make the RMD, federal law requires the taxpayer pay a penalty in the amount of 50 percent of the RMD not withdrawn.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 individuals aged 72 or older must withdraw from certain retirement plans, such as 401(k)s and individual retirement accounts (IRAs). Federal law requires RMDs, which are considered forced income and subject to federal and state income taxes. This bill will provide tax relief to many New Jersey seniors by reducing their state income tax burden.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 02/08/2024)
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/2024/S2567 |
| BillText | https://pub.njleg.gov/Bills/2024/S3000/2567_I1.HTM |
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