This bill proposes to exclude minimum required distributions (RMDs) from qualified retirement plans from the New Jersey gross income tax. Under current federal law, individuals aged 72 or older are mandated to withdraw a minimum amount annually from certain retirement accounts, and failure to do so incurs a significant penalty. The bill aims to alleviate the tax burden on seniors by ensuring that these forced distributions are not taxed at the state level, thereby providing financial relief to many New Jersey residents.

The legislation will take effect immediately and will apply to taxable years beginning after its enactment. By removing RMDs from taxable income, the bill seeks to support the financial well-being of seniors in New Jersey, allowing them to retain more of their retirement savings.