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NJ S3874
Bill
Status
3/12/2026
Primary Sponsor
Anthony M. Bucco
Click for details
AI Summary
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Distributions from NJBEST 529 savings accounts rolled over to Roth IRAs would be classified as "qualified withdrawals" under New Jersey law, matching recent federal tax code changes.
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Funds rolled over from NJBEST accounts to Roth IRAs would be excluded from New Jersey gross income tax.
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Federal eligibility requirements apply: the 529 account must be open at least 15 years, rollover funds must have been deposited at least 5 years prior, and the Roth IRA must be in the designated beneficiary's name.
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Total lifetime rollovers are capped at $35,000, subject to annual Roth IRA contribution limits.
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The bill 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
3/12/2026