New Jersey businesses with 25 or more employees must soon either offer company-sponsored retirement plans or register in the state-administered RetireReady NJ program. This state-run option mandates employers without a qualified retirement plan, such as a 401(k), to facilitate an automatic payroll deduction into an IRA for their employees.
The compliance deadlines are September 15, 2024, for companies with 40+ employees and November 15, 2024, for those with 25-39 employees. Employers who provide a qualified retirement plan to their employees will need to certify their exemption from the program.
Employers will receive notifications from RetireReady NJ as their deadlines near. This requirement was established by the New Jersey Secure Choice Savings Program Act of 2019.
Employers looking for an alternative to the state-run plan, can learn more about EANJ’s Member Retirement Savings Plan here.