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Bill

Bill

A 1115

Excludes under gross income tax certain contributions to qualified pension plans, deferred compensation plans and provides deduction for certain individual retirement savings.

2024-2025 Regular Session Introduced by Brian Bergen and 12 co-sponsors

Bill excludes retirement plan contributions from New Jersey income tax and adds deductions for individual retirement savings, reducing state tax revenue while primarily benefiting higher earners.

Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee
#incometax #pensions
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WeVote Research Nonpartisan
Bill Summary · A 1115

Legislative bill overview

Bill A 1115 proposes to exclude certain contributions to qualified pension plans and deferred compensation plans from New Jersey gross income tax calculations, while also providing tax deductions for individual retirement savings. This effectively creates or expands tax incentives for residents who save through retirement accounts.

Why is this important

Tax incentives for retirement savings directly affect household finances by reducing tax liability for savers, potentially increasing retirement security. However, excluding income from taxation also reduces state revenue, which could impact funding for public services unless offset by other measures.

Potential points of contention

  • Revenue impact: Excluding contributions from taxable income reduces state tax revenue; opponents may argue this strains the budget during fiscal challenges
  • Equity concerns: Tax deductions primarily benefit higher-income earners who can afford to save, potentially widening wealth gaps
  • Scope ambiguity: The bill language regarding "certain contributions" and "certain individual retirement savings" lacks specificity about which plans qualify and contribution limits

Compiled from official sources — confirm details with the bill’s official record.

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