New Jersey bill allows tax-free rollovers from NJBEST accounts to Roth IRAs.

New Jersey Assembly Bill A3831 amends the state's tax code to allow distributions from the New Jersey Better Education Savings Trust (NJBEST) account to a Roth IRA as qualified withdrawals, exempting these distributions from state income tax. This change aligns with recent federal tax law modifications that permit rollovers from 529 plans to Roth IRAs without incurring tax liability. The bill specifies conditions for these rollovers, including a 15-year account holding period, the Roth IRA being in the beneficiary's name, and the funds being from contributions made at least five years prior.

New Jersey bill allows tax-free rollovers from NJBEST accounts to Roth IRAs.

New Jersey Assembly Bill A3831 amends the state's tax code to allow distributions from the New Jersey Better Education Savings Trust (NJBEST) account to a Roth IRA as qualified withdrawals, exempting these distributions from state income tax. This change aligns with recent federal tax law modifications that permit rollovers from 529 plans to Roth IRAs without incurring tax liability. The bill specifies conditions for these rollovers, including a 15-year account holding period, the Roth IRA being in the beneficiary's name, and the funds being from contributions made at least five years prior.