Many employees, especially those who work for small businesses, do not have access to a workplace retirement plan. To address this gap, the State of New Jersey signed into law the New Jersey Secure Choice Savings Program Act; creating a retirement savings program for small businesses.

The RetireReady NJ program is a state-mandated Individual Retirement Account (Auto-IRA) model. Under this program, employers who do not currently offer a retirement program to their employees may be required to offer the RetireReady NJ program.

What is the RetireReady NJ plan?

It is a state-run IRA program for private sector workers who do not have a retirement plan available to them at work.

How does it work?

  • Employers report to the state their full employee demographics and maintain those records with the state.
  • The state will send communications direct to the employees to notify them of their enrollment eligibility.
  • Employees who do not opt out or make another election will be automatically enrolled in the plan at 3% of gross pay.
  • The state will report contribution elections back to the employer to properly set-up payroll.

What does this mean for employees?

Employees who do not have a retirement plan available to them at work will now have access to one via a state-run Roth or Traditional IRA (Individual Retirement Account) through convenient payroll deductions. This new program is an easy way for New Jersey workers to save for the future.

  • Enrollment is simple. Once you join the program, payroll contributions start automatically, unless you opt out.
  • You’re in control. Decide your monthly contribution amount from your post-tax paycheck.
  • It's your money and account. Your savings and account stay with you if you change or leave jobs.

What does this mean for employers?

If you have been in business for at least 2 years and have 25 employees (including part-time employees); you will now be required to offer a private retirement plan of your own or implement the RetireReady NJ program for your employees.

If you currently sponsor a SEP IRA, SIMPLE IRA, 401(k) or Defined Benefit Plan you already meet the requirement and are exempt from the RetireReady NJ program.

Filing an Exemption for an Existing Retirement Plan

Starting in May 2024, the state of New Jersey will be sending communications to all businesses registered in the state. This communication will include a link and access code for your specific business. If you already sponsor a retirement plan, you will follow the instructions in the communication to file for your existing plan exemption.

Please contact us if you have any questions or concerns completing this process.

Employer Responsibilities

The employer’s only responsibilities are to maintain accurate employee records and submit payroll contributions. This includes updating contribution elections for any changes as well as adding new employees to the system and removing those who have terminated. Aside from remitting contributions to the state, the employer has NO ongoing relationship with the IRA account or access to the accounts.

If you do not currently sponsor a retirement plan and you meet the requirements (been in business for 2 years and have 25 or more employees; including part time), then you have options. You can choose to join the RetireReady NJ program or implement your own private retirement program.

Below is a comparison of some other plan types that are often used by small business owners:


RetireReady NJ


401(k) Profit Sharing

Employer Match/Contributions




2024 Employee Contribution Limit

$7,000 ($7,500 for age 50+)

$16,000 ($19,500 for age 50+)

$23,000 ($30,500 for age 50+)

Who Selects Investment Menu

State Board

Employer/Financial Advisor

Employer/Financial Advisor

Flexible Plan Design




Business Tax Credit Available?





Still wondering how to select the right retirement plan for your business? Contact us to help you decide or learn more about how to meet the new state requirements.


- Article posted on 5/29/24 -


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information in this article has been sourced from

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