STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
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)
Co-Sponsored by:
Assemblymen Giblin, S.Kean, 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
Introduced Pending Technical Review by Legislative Counsel.
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.