NJ A4128

Creates "lifelong learning accounts" (LLAs) in New Jersey for workers ages 18-70 to fund education and training expenses, including tuition, books, equipment, and apprenticeship programs.

Excludes up to $2,500 annually in employer contributions to an employee's LLA from gross income tax, plus any earnings accrued on account balances.

Provides individual taxpayers a tax credit of 50% on the first $500-$1,000 of personal LLA contributions (depending on filing status) and 25% on additional contributions, with credits phasing out between $100,000-$120,000 income for single filers and $200,000-$240,000 for joint filers.

Grants employers a 25% tax credit on LLA contributions made for employees (up to $2,500 per employee), with small businesses (100 or fewer employees) eligible for an additional 50% credit on administrative costs up to $500 for the first two years.

Imposes a 5% penalty on nonqualified distributions (funds not used for education expenses), with exceptions for death, disability, divorce, or reaching age 71.