NJ S1569

Creates lifelong learning accounts (LLAs) in New Jersey for workers ages 18-70 to fund education and training expenses, with annual contribution limits of $2,500 from all sources combined.

Excludes up to $2,500 of employer contributions to an employee's LLA from the employee's gross income, along with earnings that accrue on account balances.

Provides individual taxpayers a refundable 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 for individuals earning over $100,000 or joint filers over $200,000.

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

Imposes a 5% penalty tax on nonqualified distributions (those not used for education expenses like tuition, books, equipment, and training programs), with exemptions for death, disability, divorce, or reaching age 71.