Bill > S2028

This bill amends New Jersey's gross income tax law to exclude certain contributions to deferred compensation plans and allow a deduction for certain individual retirement savings. Specifically, it clarifies that amounts contributed by an employer to specific types of employee retirement plans, such as those meeting the requirements of Section 401(k), 403(b), or 457 of the federal Internal Revenue Code, or to the federal Thrift Savings Fund, will not be considered part of an employee's gross income. Additionally, the bill introduces a new provision allowing taxpayers to deduct contributions made to individual retirement accounts (IRAs) or premiums paid for individual retirement annuities, provided these accounts or annuities meet federal requirements and the contributions are deductible for federal income tax purposes. These changes aim to align New Jersey's tax treatment of these retirement savings with federal guidelines and provide tax relief for individuals saving for retirement.