Everything NJ employers need to know about RetireReady NJ — deadlines, penalties, exemptions, and your step-by-step path to compliance.
RetireReady NJ is New Jersey's state-mandated retirement savings program, established under the New Jersey Small Business Retirement Marketplace Act. The program is administered by the New Jersey Department of the Treasury and requires private-sector employers to facilitate retirement savings for their employees.
The mandate was designed to address a retirement savings crisis: more than 1.7 million private-sector workers in New Jersey lacked access to any workplace retirement savings plan. RetireReady NJ closes that gap by requiring employers to either enroll employees in the state-run IRA program or offer a comparable private plan.
RetireReady NJ applies to private-sector employers operating in New Jersey that meet the following criteria:
The 25-employee threshold is based on the number of W-2 employees, not contractors, 1099 workers, or temporary staffing agency employees. Part-time employees who work at least 20 hours per week generally count toward the threshold.
| Business Type | Covered? | Notes |
|---|---|---|
| Private employer, 25+ W-2 employees, NJ | YES | Must comply or file exemption |
| Private employer, fewer than 25 employees | NO | Not currently mandated |
| Government / public employer | NO | Exempt by statute |
| Employer already offering 401(k), SIMPLE, SEP, etc. | NO | File Certificate of Exemption |
| Church / religious organization | NO | Exempt by statute |
| Multi-state employer with NJ employees | YES | NJ employees must be enrolled |
Employers who fail to enroll eligible employees in RetireReady NJ or a qualifying alternative plan — and have not filed a valid Certificate of Exemption — are subject to civil penalties enforced by the NJ Department of Labor.
Penalties are assessed on a per-employee, per-year basis. For a business with 30 employees that has been out of compliance for 2 years, potential liability could reach $30,000 before legal fees or remediation costs.
| Employees | 1 Year Non-Compliance | 2 Years | 3 Years |
|---|---|---|---|
| 25 employees | $12,500 | $25,000 | $37,500 |
| 50 employees | $25,000 | $50,000 | $75,000 |
| 100 employees | $50,000 | $100,000 | $150,000 |
| 250 employees | $125,000 | $250,000 | $375,000 |
Note: These are maximum penalty estimates. Actual enforcement may vary. Contact our team for a current compliance risk assessment.
Employers who already provide a qualifying retirement plan are exempt from the RetireReady NJ mandate. However, you must still file a Certificate of Exemption through the RetireReady NJ portal to document your exempt status.
Offering a qualifying plan does not automatically exempt you. You must log into the RetireReady NJ employer portal and submit your Certificate of Exemption. Failure to file — even if you offer a 401(k) — can result in penalties.
Exemptions must be renewed annually. If your plan is terminated or you drop below the qualifying threshold, you must re-enroll within 30 days.
Count all W-2 employees in New Jersey. If you have 25 or more, you are covered. Part-time employees (20+ hrs/week) typically count.
Check whether you already offer a qualifying plan (401k, SIMPLE IRA, SEP IRA, 403b, pension). If yes, you still need to file a Certificate of Exemption.
Go to retirereadynj.com. You'll need your Federal EIN, business address, and total number of NJ employees.
Coordinate with your payroll provider. The default employee contribution rate is 3% of gross wages. Employees can change this or opt out entirely.
Send employees required disclosure notices. The RetireReady NJ portal provides template notices. New hires must be enrolled within 30 days of start date.
Deductions begin after the employee notification period. Employers remit contributions directly through the portal on payroll cycle.
Keep enrollment and contribution records. File annual compliance confirmation through the portal. Update when employees leave or are hired.
Employers have two paths to compliance: enroll in the state-run RetireReady NJ IRA program, or offer a private retirement plan and file for exemption.
| Factor | RetireReady NJ (State IRA) | Private 401(k) |
|---|---|---|
| Employer cost | No employer contribution required | Admin fees + optional match |
| Tax deduction for employer | None | Yes — contributions deductible |
| Employee contribution limit | $7,000/yr (IRA limit) | $23,500/yr (2025 limit) |
| Employer branding / retention | Low (generic state plan) | High (your plan, your brand) |
| Setup complexity | Low | Moderate (with help: easy) |
| Employer fiduciary duty | Minimal | Yes — manageable with proper setup |
| Best for | Employers who want zero cost | Employers who want tax benefits + retention |
Many NJ employers find that a SIMPLE IRA or Solo 401(k) provides significantly better tax benefits than the state plan, at lower cost than a traditional 401(k), while also satisfying the mandate. Our team can walk you through the numbers in 15 minutes.
We've helped 100+ NJ employers get compliant — fast, at no obligation. Free 15-minute compliance check. No pressure, no runaround.
Book Free Compliance Check →RetireReady NJ is designed as an automatic enrollment program. Employees are enrolled by default unless they proactively opt out.
Employers must provide employees with the opt-out window and process it promptly. Employers cannot pressure employees to opt out, nor can they limit the opt-out process. Violations can result in additional liability.
No. The current threshold is 25 or more W-2 employees in New Jersey. However, if you expect to grow past 25 employees, you should prepare for compliance in advance. The mandate covers you from the date you cross the threshold.
Yes — you must file a Certificate of Exemption through the RetireReady NJ portal, even if your 401(k) fully satisfies the mandate. Without that filing, you are technically non-compliant even with a great plan in place.
Enroll as soon as possible. While penalties can be assessed for past non-compliance, the NJ Department of Labor has generally focused on getting employers into compliance rather than maximum enforcement against employers who self-correct. Contact our team for guidance on your specific situation.
No. Employees are automatically enrolled but have the right to opt out at any time. Employers cannot require participation as a condition of employment.
No. Under the state RetireReady NJ program, there is no required employer contribution. The IRA is funded entirely by employee payroll deductions. If you choose a private plan (like a SIMPLE IRA or 401(k)), employer contribution requirements vary by plan type.
Multi-state employers must comply for all New Jersey-based employees. Employees working in other states are governed by those states' respective mandates. You can maintain a single 401(k) plan that covers all employees and file exemptions in each applicable state.
Enrolling in the state RetireReady NJ program typically takes 1–2 business days. Setting up a private 401(k) or SIMPLE IRA through a qualified advisor typically takes 5–10 business days. Filing a Certificate of Exemption takes under 30 minutes once your plan documents are ready.
RetireReady NJ is a Roth IRA limited to $7,000/year per employee with no employer contribution required. A SIMPLE IRA allows contributions up to $16,500/year (2025), requires a 2–3% employer match or 2% non-elective contribution, and provides tax deductions for the employer. For many NJ employers, a SIMPLE IRA is the smarter compliance path.
We'll review your current situation, tell you exactly what you need to do, and help you choose the right path — state plan, SIMPLE IRA, or 401(k). 15 minutes. Free. No obligation.
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