N.J. Admin. Code § 18:35-2.6

Current through Register Vol. 56, No. 19, October 7, 2024

Section 18:35-2.6 - Qualified State Tuition Program; education individual retirement account

(a) Definition: A "qualified state tuition program" means:

1. An account established under the New Jersey Better Educational Savings Trust (NJBEST) Program; or

2. An account established under the laws of any other state as defined under section 529 of the Internal Revenue Code; or

3. A tuition credit or certificate purchased under such program.

(b) An "education individual retirement account" means an education retirement account as defined by section 530(b)(1) of the Internal Revenue Code.

(c) Upon distribution from the plan, amounts that are used for qualified higher education expenses as defined under section 529(e)(3) of the Internal Revenue Code are excluded from the taxpayer's income. Distributions from the plan that are not used for qualified higher education expenses are includible in gross income.

1. A rollover from one account to another is considered a qualified distribution if it meets the requirements of section 529(c)(3)(C)(i) or section 530(d)(5) of the Internal Revenue Code.

N.J. Admin. Code § 18:35-2.6

New Rule, R.2003 d.285, effective 7/21/2003.
See: 35 N.J.R. 1384(a), 35 N.J.R. 3386(a).