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

This bill would allow New Jersey taxpayers to exclude certain retirement plan contributions from their state gross income tax. It applies to contributions made to 401(k) plans, traditional IRAs, qualified pension plans, government deferred compensation plans (457 plans), and the federal Thrift Savings Fund. These contributions would be taxed upon withdrawal rather than at the time of contribution, effectively reducing taxable income for eligible taxpayers in the year they make contributions. The change would apply to contributions made in taxable years beginning January 1 following the bill's enactment.