New Jersey has enacted RetireReady NJ, an initiative with the goal of making retirement savings more accessible to New Jersey workers. RetireReady NJ is an effortless way businesses can empower employees to save for retirement and gain control of their financial future. The program offers educational resources, planning tools and other guidance to help those make informed decisions.
New Jersey businesses with twenty-five or more employees that have been in business for two years or more and do not currently offer a qualified retirement plan are required by law to facilitate the program. Employers will be notified by RetireReady NJ when it is time to register. The deadline to register is September 15, 2024 for employers with 40 or more employees. The deadline to register is November 15, 2024 for employers with 25 to 39 employees. If your company meets one or more of the exemption criteria, you must notify the state of exemption.
How it works:
- Businesses must register, set up their portals and payroll information, and add their employees.
- Employees will receive communications directly from RetireReady NJ and can choose to stay automatically enrolled or opt out within the 30-day window.
- Employees can choose between a Roth or Traditional Individual Retirement Account.
- The payroll deductions selected will start as soon as the next payroll.
- To stay in compliance, employers must continue to send payroll contributions and update their employee records.
There is no cost to the employer and employees pay an annual asset-based fee of approximately .75%. RetireReady NJ requires little time and administration and allows for easy integration into the payroll process. Employer contributions are not permitted and there is no fiduciary responsibility. Business owners are allowed to participate. RetireReady NJ is available to employees with New Jersey earned income, even if they reside outside the state. Employees can maintain the same RetireReady NJ account in the event they switch jobs, if the employer becomes exempt, or the employer is no longer in business.
Many payroll companies are addressing this on behalf of their customers. If you use a payroll company, you may want to check with them before filing with the state, as they may have already done so on your behalf.
For questions, reach out to a WG advisor or visit nj.gov/treasury/securechoiceprogram/
