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

This bill (A 3831) allows New Jersey residents with NJBEST college savings accounts to transfer funds directly into a Roth IRA as a "qualified withdrawal," excluding these transfers from New Jersey gross income tax. It expands the existing NJBEST program - designed for college savings - by adding Roth IRA rollovers as a permitted use, aligning with federal tax rules under Section 529 of the Internal Revenue Code. The change directly affects NJBEST account holders who wish to redirect saved funds toward retirement instead of education expenses. The bill amends NJ's tax code to exclude these specific Roth IRA rollovers from state taxable income, while maintaining the program's federal qualification. The bill is currently pending in the Assembly Higher Education Committee (introduced January 2026).