ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE
COMMITTEE
STATEMENT TO
SENATE COMMITTEE SUBSTITUTE FOR
SENATE, Nos. 737 and 951
with committee amendments
STATE OF NEW JERSEY
DATED: FEBRUARY 13, 2023
The Assembly Financial Institutions and Insurance Committee
reports favorably and with committee amendments Senate Committee
Substitute for Senate Bill Nos. 737 and 951.
As amended, this bill provides taxpayers a gross income tax
exclusion in the amount of contributions made to certain retirement
plans, and allows a deduction for contributions to individual retirement
accounts, or premiums paid to individual retirement annuities, that
qualify for federal income tax deductions.
The affected types of plans are: (1) a plan established under section
401(a) or section 401(k) of the federal Internal Revenue Code; (2)
amounts paid for annuity contracts under section 403(b) of the federal
Internal Revenue Code, allowed to employees of governments and
nonprofits; (3) a deferred compensation plan of a state or local
government that meets the requirements of section 457 of the federal
Internal Revenue Code; (4) a federal Thrift Savings Plan; or (5) a
standard Individual Retirement Account pursuant to section 408 of the
federal Internal Revenue Code. The contributions to these plans are
taxed upon distribution from the account.
The bill applies to contributions made or premiums paid in taxable
years beginning on or after January 1 next following enactment of the
bill.
As amended and reported, this bill is identical to Assembly Bill
No. 512, as also amended and reported by the committee.
COMMITTEE AMENDMENTS:
The committee amended the bill to make its provisions apply to
contributions made or premiums paid in taxable years beginning on or
after the first day of January following enactment of the bill.