Here's How NJ Bill Can Help Senior Citizens Save For Retirement

RIDGEWOOD, NJ — A New Jersey congressman will introduce legislation to incentivize families to save for retirement.

Rep. Josh Gottheimer (NJ-5) is introducing the Senior Housing Improvement and Retirement Accounts Act. The legislation would allow senior citizens who sell their principle residence to avoid paying capital gains tax on the proceeds of the sale if they are vested in a Roth Individual Retirement Account.

Gottheimer unveiled the bill at a real estate office in Ridgewood. He was joined by a Glen Rock couple, Jonathan and Marcia Rieff, who are in the process of selling their home.

"It's way too expensive to live and retire in New Jersey. We are turning our backs on families who have been here decades if not generations because they just can't afford to stay here in their golden years," said Gottheimer. "We need to cut taxes for seniors and help them transition into and save for retirement so they can stay here in New Jersey."

Jonathan, a Bergen County native, and Marcia Reiff moved to Glen Rock in 1991 and raised their daughter here. However, they can no longer afford to live in New Jersey because of the taxes.

New Jersey imposes the second highest state and local income tax burdens on families and has the second slowest job market in America, Gottheimer said, citing the federal Bureau of Labor Statistics.

"Compound taxes with the high cost of commuting and health care, and families are encouraged to downsize and move out of the state as soon as their children graduate high school simply to survive," Gottheimer said.

Gottheimer's legislation hopes to give seniors a chance to get full access the equity in their homes.

"I'm hoping extra money toward retirement will help seniors in New Jersey afford to stay here in our state in their golden years, instead of packing up to go elsewhere," Gottheimer said. "We shouldn’t be slapping seniors with outrageous taxes for trying to downsize their homes, making it even less affordable to live here."

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