NJ S1406

Contributions to retirement plans including 401(a), 401(k), 403(b), 457 plans, federal Thrift Savings Plans, and traditional IRAs would be excluded from New Jersey gross income tax.

Applies to employer-sponsored qualified pension plans, deferred compensation plans for state and local government employees, and annuity contracts for government and nonprofit employees.

IRA contributions are only excludable if they are also excludable from federal gross income for the same taxable year.

Distributions from these retirement accounts would be taxed upon withdrawal, aligning the timing of taxation with federal treatment.

Takes effect for contributions made in taxable years beginning on or after January 1 following enactment.