Bill > A3323

This bill amends existing law to clarify that deferred compensation, which is money earned by an employee but paid at a later date, for certain employees of public schools and federal tax-exempt organizations will not be taxed as current income. Specifically, it updates references to federal tax law, including the Internal Revenue Code of 1986, to ensure that contributions made by employers on behalf of employees to qualified retirement plans, such as those meeting the requirements of Section 401(k) or annuity contracts under Section 403(b), are treated as deferred compensation and not subject to immediate gross income tax. This change will apply to taxable years beginning on or after January 1st following the bill's enactment.