NJ S3329

Excludes employee contributions to 403(b) plans (used by charitable, educational, and religious organizations), 457 deferred compensation plans (state and local government), and federal Thrift Savings Plans from New Jersey gross income tax, matching the existing exclusion for private sector 401(k) contributions.

Creates a new gross income tax deduction for contributions to traditional individual retirement accounts (IRAs) that qualify for federal income tax deductions under Section 219 of the Internal Revenue Code.

Distributions from these newly tax-deferred retirement plans and accounts will be taxed when withdrawn, using the same calculation method as federal tax treatment.

Applies to taxable years beginning on or after January 1 following enactment.

Aims to provide public sector, nonprofit, and federal employees the same retirement savings tax incentives currently available only to private sector workers with 401(k) plans.