Bill > A5674

Introduced Session

This bill excludes contributions, qualified withdrawals, and rollovers from certain retirement savings accounts from a taxpayer's gross income. Specifically, the bill would exclude any amounts that are contributed to, or received as a qualified withdrawal from: (1) a plan established under section 401(a) or section 401(k) of the federal Internal Revenue Code; (2) amounts paid for annuity contracts under section 403(b) of the federal Internal Revenue Code which are offered to government and nonprofit employees; (3) a deferred compensation plan established under section 457 of the federal Internal Revenue Code; (4) a federal Thrift Savings Plan; or (5) an Individual Retirement Account (IRA) established pursuant to section 408 of the federal Internal Revenue Code. The bill would also exclude from gross income any rollovers from an IRA to another retirement savings account. For purposes of the bill, a "qualified withdrawal" is defined as a withdrawal from a retirement trust, plan, fund, account, or annuity, as applicable under the bill, that is permitted under the federal Internal Revenue Code and for which no penalties or additional taxes for nonqualifying withdrawals are assessed pursuant to the Internal Revenue Code, regulations issued thereunder, or other directives or guidance of the federal Internal Revenue Service. By excluding additional categories of retirement savings from gross income, it is the sponsor's intent to remove a deterrent to retirement savings and provide greater financial security for New Jersey taxpayers as they prepare for, and enter, their retirement years.

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Bob Auth (R)*,  Aura Dunn (R),  Dawn Fantasia (R),  Vicky Flynn (R), 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 05/15/2025)

Official Document