This bill amends New Jersey's gross income tax law to exclude contributions made to specific retirement savings plans from gross income tax. The types of plans affected include those established under sections 401(a) and 401(k) of the federal Internal Revenue Code, annuity contracts under section 403(b), deferred compensation plans under section 457, the federal Thrift Savings Fund, and standard Individual Retirement Accounts (IRAs) under section 408. Additionally, the bill allows for deductions for contributions to IRAs or premiums paid for individual retirement annuities that qualify for federal income tax deductions.

The legal language of the bill includes several insertions that clarify the types of contributions that will be excluded from gross income, such as those made by employers on behalf of employees and contributions that are excludable from federal gross income. The bill is set to take effect immediately and will apply to contributions made or premiums paid in taxable years beginning on or after January 1 following its enactment.

Statutes affected:
Introduced: 54A:6-21