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NJ S3593
Bill
Status
9/19/2024
Primary Sponsor
Anthony M. Bucco
Click for details
AI Summary
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Expands the definition of "qualified withdrawal" under New Jersey's NJBEST 529 college savings program to include special rollovers from a NJBEST account to a Roth IRA, aligning state law with recent federal tax code changes
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Excludes these special rollovers from New Jersey gross income tax, providing the same tax-free treatment as withdrawals used for qualified higher education expenses
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Federal requirements for the special rollover include: the 529 account must be open for at least 15 years, the Roth IRA must be in the designated beneficiary's name, rolled-over amounts must have been deposited at least 5 years prior, and a lifetime limit of $35,000 applies
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Applies retroactively to taxable years beginning on or after January 1, 2024
Legislative Description
Allows distributions from NJBEST account to Roth IRA as qualified withdrawals and excludes such distributions from gross income tax.
Higher Education
Last Action
Introduced in the Senate, Referred to Senate Higher Education Committee
9/19/2024