RetireReady NJ is a state-sponsored retirement savings initiative created to help employees save for retirement through automatic payroll deductions when their employer does not offer a retirement plan.
The program currently applies to employers that:
- Have 25 or more employees
- Have been operating for at least two years
- Do not currently offer a qualified retirement plan
Employers that meet these criteria are required to either:
- Register for the RetireReady NJ program, or
- Certify that they offer their own qualified retirement plan
Under the program, employees who choose to participate contribute to an individual retirement account (IRA) through payroll deductions.
It is also important to be aware that proposals for future phases of the program, if enacted, may expand the requirement to include employers with as few as one employee.
The program is part of a broader national trend in which states are implementing retirement savings programs to increase employee access to retirement planning opportunities.
Timing: Companies with 40+ employees should have registered or submitted an exemption by June 15, 2025. Companies with 25-39 employees had until August 15, 2025, to register or submit an exemption.
Penalties/Credits: Employers that don’t offer a plan within 1 year of eligibility will receive a written warning from the government. Each subsequent year of non-compliance will result in the following penalties:
- Second calendar year with a violation: $100 fine
- Third or fourth calendar year with a violation: $250 for each violation
- Fifth and subsequent years with a violation: $500 for each violation
For more program information, program timelines, and employer requirements, employers can visit the official RetireReady NJ website provided by the State of New Jersey.