New Jersey § 54a:6-10

§ 54a:6-10.

a. Gross income shall not include that part of any amount received as an annuity under

an annuity, endowment, or life insurance contract which bears the same ratio to such

amount as the investment in the contract as of the annuity starting date bears to

the expected return under the contract as of such date. Where (1) part of the consideration for an annuity, endowment, or life insurance

contract is contributed by the employer, and (2) during the three-year period beginning

on the date on which an amount is first received under the contract as an annuity,

the aggregate amount receivable by the employee under the terms of the contract is

equal to or greater than the consideration for the contract contributed by the employee,

then all amounts received as an annuity under the contract shall be excluded from

gross income until there has been so excluded an amount equal to the consideration

for the contract contributed by the employee. b. (1) In addition to that part of any amount received as an annuity which is excludable

from gross income as herein provided, gross income shall not include payments: for taxable years beginning before January 1, 2000, of up to $10,000 for a married

couple filing jointly, $5,000 for a married person filing separately, or $7,500 for

an individual filing as a single taxpayer or an individual determining tax pursuant

to subsection a. of N.J.S.54A:2-1 ; for the taxable year beginning on or after January 1, 2000, but before January 1,

2001, of up to $12,500 for a married couple filing jointly, $6,250 for a married person

filing separately, or $9,375 for an individual filing as a single taxpayer or an individual

determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for the taxable year beginning on or after January 1, 2001, but before January 1,

2002, of up to $15,000 for a married couple filing jointly, $7,500 for a married person

filing separately, or $11,250 for an individual filing as a single taxpayer or an

individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for the taxable year beginning on or after January 1, 2002, but before January 1,

2003, of up to $17,500 for a married couple filing jointly, $8,750 for a married person

filing separately, or $13,125 for an individual filing as a single taxpayer or an

individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for taxable years beginning on or after January 1, 2003, but before January 1, 2017

of up to $20,000 for a married couple filing jointly, $10,000 for a married person

filing separately, or $15,000 for an individual filing as a single taxpayer or an

individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for taxable years beginning on or after January 1, 2017, but before January 1, 2018,

of up to $40,000 for a married couple filing jointly, $20,000 for a married person

filing separately, or $30,000 for an individual filing as a single taxpayer or an

individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for taxable years beginning on or after January 1, 2018, but before January 1, 2019,

of up to $60,000 for a married couple filing jointly, $30,000 for a married person

filing separately, or $45,000 for an individual filing as a single taxpayer or an

individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for taxable years beginning on or after January 1, 2019, but before January 1, 2020,

of up to $80,000 for a married couple filing jointly, $40,000 for a married person

filing separately, or $60,000 for an individual filing as a single taxpayer or an

individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for taxable years beginning on or after January 1, 2020, of up to $100,000 for a married

couple filing jointly, $50,000 for a married person filing separately, or $75,000

for an individual filing as a single taxpayer or an individual determining tax pursuant

to subsection a. of N.J.S.54A:2-1 ; for taxable years beginning on or after January 1, 2021, for a taxpayer with gross

income in excess of $100,000, but not more than $125,000, 50 percent of payments for

a married couple filing jointly, 25 percent of payments for a married couple filing

separately, or 37.5 percent of payments for an individual filing as a single taxpayer

or individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 ; for taxable years beginning on or after January 1, 2021, for a taxpayer with gross

income in excess of $125,000, but not more than $150,000, 25 percent of payments for

a married couple filing jointly, 12.5 percent of payments for a married couple filing

separately, or 18.75 percent of payments for an individual filing as a single taxpayer

or individual determining tax pursuant to subsection a. of N.J.S.54A:2-1 , which are received as an annuity, endowment or life insurance contract, or payments

of any such amounts which are received as pension, disability, or retirement benefits,

under any public or private plan, whether the consideration therefor is contributed

by the employee or employer or both, by any person who is 62 years of age or older

or who, by virtue of disability, is or would be eligible to receive payments under

the federal Social Security Act 1 . (2) For taxable years beginning on or after January 1, 2005, but before January 1, 2021, the exclusion provided by this subsection shall only be allowed if the taxpayer has

gross income for the taxable year of not more than $100,000. For taxable years beginning on or after January 1, 2021, the exclusion provided by

this subsection shall only be allowed if the taxpayer has gross income for the taxable

year of not more than $150,000. c. Gross income shall not include any amount received under any public or private

plan by reason of a permanent and total disability. d. Gross income shall not include distributions from an employees' trust described

in section 401(a) of the Internal Revenue Code of 1986 2 , as amended (hereinafter referred to as “the Code”), which is exempt from tax under

section 501(a) of the Code if the distribution, except the portion representing the

employees' contributions, is rolled over in accordance with section 402(a)(5) or section

403(a)(4) of the Code. The distribution shall be paid in one or more installments which constitute a lump-sum

distribution within the meaning of section 402(e)(4)(A) (determined without reference

to subsection (e)(4)(B)), or be on account of a termination of a plan of which the

trust is a part or, in the case of a profit-sharing or stock bonus plan, a complete

discontinuance of contributions under such plan. 1

42 U.S.C.A. § 301 et seq. 2

For references to the Internal Revenue Code, see 26 U.S.C.A.