New Jersey S3874 allows rollovers from NJBEST accounts to Roth IRAs as qualified withdrawals, exempting them from state income tax.
New Jersey S3874 amends state law to align with recent federal changes that allow rollovers from 529 savings accounts to Roth IRAs without incurring tax liability. The bill defines these rollovers as "qualified withdrawals" under the NJBEST program, exempting them from state income tax. This change ensures that rollovers to Roth IRAs are treated similarly to withdrawals for qualified higher education expenses, which are already tax-free under state law.
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