This bill proposes a gross income tax exclusion for distributions made from individual retirement accounts (IRAs) to qualified charitable organizations in New Jersey. It amends existing tax law, specifically N.J.S.54A:5-1 and P.L.1998, c.57, to include provisions that allow for tax-free distributions from both Roth IRAs and traditional IRAs when the funds are donated to organizations recognized as tax-exempt under section 501(c)(3) of the federal Internal Revenue Code. The bill defines a "qualified charitable organization" and outlines the conditions under which distributions from these accounts can be made without incurring state income tax.

Key amendments include the addition of language specifying that gross income shall not include distributions from a traditional IRA made to a qualified charitable organization, as well as clarifying the definition of a traditional IRA. The bill also expands the definition of "qualified distribution" from a Roth IRA to include distributions made to a qualified charitable organization. This legislation is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.

Statutes affected:
Introduced: 54A:6-28