(TRENTON) — The Assembly Budget Committee on Thursday approved a measure sponsored by Assembly members Celeste Riley and John Burzichelli that would help seniors and the disabled save more money for retirement.
“The recession has decimated many people’s 401k’s and other investments,” said Riley (D-Salem/Cumberland/Gloucester). “This measure would help provide a little more peace of mind for those in retirement who are worried about being able to get by.”
The bill (A-3398) would expand the exclusion under the gross income tax for pensions, annuities and certain other retirement income for qualified taxpayers.
“This bill will help our most vulnerable plan and save for retirement,” said Burzichelli (D-Salem/Cumberland/Gloucester). “For many who have been ravaged by this economy, this extra help in saving is not an added luxury but a necessity.”
At present, qualified taxpayers who are at least 62 years of age or disabled and who are eligible to receive social security payments and make $100,000 or less in annual gross income may exclude $20,000, $15,000 or $10,000 of various pension, annuity and retirement benefit income, depending on their tax filing status (i.e. joint, single and separate).
This measure, approved today by a vote of 7-0-4, would expand the exclusion by removing the $20,000, $15,000 and $10,000 caps, and providing full exclusions for qualified taxpayers with gross incomes less than $100,000. The bill also would provide new limited exclusions for qualified taxpayers with incomes between $100,000 and $110,000. With this new exclusion, the excluded amount would reduce in proportion to the amount of the taxpayer’s gross income that is above $100,000.