ASSEMBLY, No. 4763

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED MAY 11, 2017

 


 

Sponsored by:

Assemblyman  RALPH R. CAPUTO

District 28 (Essex)

Assemblywoman  MILA M. JASEY

District 27 (Essex and Morris)

Assemblyman  ROBERT J. KARABINCHAK

District 18 (Middlesex)

Assemblywoman  SHEILA Y. OLIVER

District 34 (Essex and Passaic)

Assemblyman  RAJ MUKHERJI

District 33 (Hudson)

Assemblyman  NICHOLAS CHIARAVALLOTI

District 31 (Hudson)

Assemblyman  RONALD S. DANCER

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Assemblyman  KEVIN J. ROONEY

District 40 (Bergen, Essex, Morris and Passaic)

 

Co-Sponsored by:

Assemblymen Giblin, S.Kean, Assemblywoman Watson, Assemblymen Ciattarelli, Holley, Assemblywoman McKnight, Assemblymen Coughlin, Benson, Assemblywoman Chaparro, Assemblyman Johnson and Assemblywoman Tucker

 

 

 

 

SYNOPSIS

     Excludes amount of certain early withdrawals from qualified retirement plans in determination by Higher Education Student Assistance Authority of applicant’s eligibility for and amount of State tuition aid grant.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the State Tuition Aid Grant Program and supplementing chapter 71B of Title 18A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    The Higher Education Student Assistance Authority shall solicit from a financial aid applicant, information on whether he received an early withdrawal from a qualified retirement plan under the Internal Revenue Code of 1986, such as an individual retirement account or a 401(k) plan, and the amount thereof.  If an early withdrawal was received, the amount of the early withdrawal, less the amount of any federal income tax credit claimed by the applicant for a tax penalty assessed on the early withdrawal, shall be deducted from the adjusted gross income utilized by the authority to determine the applicant’s eligibility for, and the amount of, a State tuition aid grant.  This exclusion shall only be permitted if the applicant provides documentation that the early withdrawal was taken due to an economic hardship, as determined by the authority.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the Higher Education Student Assistance Authority (HESAA) to solicit from an applicant for financial assistance, information on whether he received an early withdrawal from a qualified retirement plan under the Internal Revenue Code, such as an individual retirement account or a 401(k) plan, and the amount of the early withdrawal.  If the applicant took an early withdrawal, the amount of the early withdrawal, less the amount of any federal income tax credit claimed by the applicant for a tax penalty assessed on the early withdrawal, will be deducted from the adjusted gross income utilized by HESAA to determine the applicant’s eligibility for, and the amount of, a State tuition aid grant.  This exclusion will only be permitted if the applicant provides documentation that the early withdrawal was taken due to an economic hardship, as determined by HESAA.