This bill amends New Jersey's gross income tax law to provide an exclusion for distributions made from individual retirement accounts (IRAs) to qualified charitable organizations. Specifically, it allows 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 also clarifies the definitions of Roth IRAs and traditional IRAs, ensuring that the tax benefits apply to these types of accounts when used for charitable purposes.

Key changes include the insertion of language that defines "qualified charitable organization" and specifies that distributions from traditional IRAs to such organizations are exempt from gross income. Additionally, the bill expands the definition of "qualified distribution" from a Roth IRA to include donations made to qualified charitable organizations. The act 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