Bill > A3791

This bill provides a gross income tax exclusion for "minimum required distributions" (RMDs) from "qualified retirement plans," which are retirement savings accounts like 401(k)s and IRAs that meet specific federal tax rules. Federal law mandates that individuals aged 72 and older must withdraw a minimum amount from these plans annually, and failure to do so incurs a significant penalty. These RMDs are considered taxable income at both the federal and state levels. By enacting this bill, New Jersey aims to exempt these mandatory withdrawals from state income tax, thereby reducing the tax burden on many senior citizens in the state, and this change will apply to tax years starting after the bill becomes law.