Allows distributions from NJBEST account to Roth IRA as qualified withdrawals and excludes such distributions from gross income tax.

This bill amends New Jersey's NJBEST program to treat distributions from NJBEST accounts rolled into a Roth IRA as "qualified withdrawals" for tax purposes. It directly affects NJBEST account owners who want to transfer funds to a Roth IRA without incurring New Jersey state income tax on the rollover amount. The key provision excludes these specific Roth IRA rollovers from gross income calculations, aligning New Jersey tax treatment with a recent federal change to Section 529 of the Internal Revenue Code. This allows account holders to move funds tax-free to retirement savings while maintaining the program's tax-advantaged status for education savings.