Registration Open for RetireReady NJ — But it's Not the Only Retirement Plan Option
A state-mandated retirement plan like RetireReady NJ can help Garden State employers attract and retain workers, while supporting their retirement savings. But state-run plans are just one option available.
Many workers in New Jersey do not have access to a private retirement savings plan.
But that's about to change.
While employers are generally not required to offer their employees any retirement benefits, many states, like New Jersey, are requiring employers to provide their workers with a retirement savings program. This is commonly referred to as a state-mandated retirement plan.
All eligible New Jersey employers with 25 or more employees must register by November 15, 2024 to offer a plan through the RetireReady NJ program, if they don't currently offer a company-sponsored plan. If they already have a plan in place, they must certify their exemption to the state agency to remain in compliance.
A win-win for employees and employers
Retirement planning is a crucial aspect of financial wellness for today's workers — and employers play a significant role. Having access to a retirement plan offers employees a sense of security and peace of mind about their financial future. It allows them to save for retirement in a tax-advantaged account, building a nest egg for what's ahead.
A retirement plan is also a valuable hiring and retention tool, showing employees that they work for an employer that cares about their financial well-being. By offering retirement savings options, businesses can attract top talent, retain valuable employees and boost overall employee satisfaction. And by prioritizing retirement savings, businesses can create a more engaged and loyal workforce that is better equipped to navigate financial challenges in the future.
But state-mandated plans like RetireReady NJ aren't the only option. Businesses have another way to comply — by sponsoring a plan through the private market.
When "one-size-fits-all" isn't a good fit
When state-mandated plans don't align with a business's specific needs and goals, employer-sponsored plans can offer more flexibility and control.
State-mandated retirement plans often come with limited choices and rigid guidelines, leaving employees unable to optimize their savings strategy. Company-sponsored retirement plans offer more investment options and plan types, and may also provide more enhanced plan maintenance options, such as auto-escalation, financial wellness tools and personalized participant communications.
And for eligible small businesses with up to 100 employees sponsoring a new plan, the new SECURE 2.0 legislation also offers a tax credit for employer matching or profit-sharing contributions for the first five years of the plan.
A must-have benefit
As an employer, offering a retirement plan of any kind can help your hiring and retention. ADP can help you offer a competitive retirement plan with the options you need and a limited administrative commitment.
Connect with an ADP retirement planning services specialist to discuss ADP's retirement plan solutions or call 844-462-3887.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor.
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