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NJ S1406
NJ S1406Excludes contributions made to certain retirement savings plans under gross income tax.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill provides taxpayers a gross income tax exclusion in the amount of contributions made to certain retirement plans that qualify for federal income tax benefits. The affected types of plans are: (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, allowed to employees of governments and nonprofits; (3) a deferred compensation plan of a state or local government that meets the requirements of section 457 of the federal Internal Revenue Code; (4) a federal Thrift Savings Plan; or (5) a standard Individual Retirement Account pursuant to section 408 of the federal Internal Revenue Code. The contributions to these plans are taxed upon distribution from the account. The bill applies to contributions made or premiums paid in taxable years beginning on or after the January 1 next following the bill's enactment.
AI Summary
This bill allows individuals to exclude contributions made to certain retirement savings plans from their New Jersey gross income tax. Specifically, it covers contributions to plans that qualify for federal tax benefits, including those established under sections 401(a) or 401(k) of the federal Internal Revenue Code, annuity contracts for government and nonprofit employees under section 403(b), deferred compensation plans for state and local governments under section 457, the federal Thrift Savings Plan, and standard Individual Retirement Accounts (IRAs) under section 408. These contributions will be taxed when they are eventually withdrawn from the retirement accounts. This change applies to contributions made or premiums paid in taxable years beginning on or after January 1st of the year following the bill's enactment.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/13/2026)
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/2026/S1406 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1406_I1.HTM |
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