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NJ A3831
Bill
Status
1/13/2026
Primary Sponsor
Aura Dunn
Click for details
AI Summary
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Allows rollovers from NJBEST 529 college savings accounts to Roth IRAs to qualify as "qualified withdrawals" under New Jersey law, aligning state rules with federal tax law changes effective January 1, 2024.
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Exempts these special rollovers from New Jersey gross income tax, meaning account holders will not owe state taxes on funds transferred from NJBEST accounts to Roth IRAs.
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Federal law requires the 529 account to be open for at least 15 years, the rollover funds to have been deposited at least 5 years prior, and the Roth IRA to be in the designated beneficiary's name.
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Caps lifetime rollovers at $35,000 total per beneficiary, subject to annual Roth IRA contribution limits.
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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, Referred to Assembly Higher Education Committee
1/13/2026