RetireReady NJ vs. WealthRabbit SIMPLE IRA: what New Jersey employers should know
The RetireReady NJ program was designed to help employees save for the future, but many small business owners remain unsure about how it affects them—or whether it’s their best option.
Here’s what you need to know about RetireReady NJ, how it works, and why some employers are looking to a SIMPLE IRA instead.
What is RetireReady NJ?
RetireReady NJ (formerly known as the New Jersey Secure Choice Savings Program) is a state-facilitated retirement savings program for employers who don’t already offer a plan.
It’s administered by Vestwell State Savings, LLC, and designed to make retirement savings simple through automatic payroll deductions.
Here’s how it works:
- Who must register: Employers with 25 or more employees, who have been in business for at least two years, and who do not currently offer a qualified retirement plan.
- Type of account: Roth or Traditional Individual Retirement Account (IRA)
- Default contribution: Employees contribute 3% of their pay, with automatic annual increases of 1% until reaching 6% (unless they opt out).
- Annual IRA limit (2025): $7,000 (or $8,000 if age 50+)
- Administrator: Vestwell State Savings, LLC
- Penalties for noncompliance: Employers may face escalating penalties - Year 1: written warning, Year 2: $100 fine per employee, Years 3–4: $250 fine per employee, and Year 5+: $500 fine per employee not enrolled or opted out.
Key registration deadlines
New Jersey’s state-run retirement program now requires businesses with 25 or more employees to offer a retirement plan. The registration deadlines are as follows:
- Employers with 40+ employees: Deadline was September 15, 2024
- Employers with 25–39 employees: Deadline was November 15, 2024
If you already offer a qualified plan (such as a SIMPLE IRA), you are exempt but must still certify your exemption through the RetireReady NJ portal.
Why some New Jersey businesses are choosing a SIMPLE IRA
Many small business owners are discovering that compliance doesn’t have to mean compromise. If your goal is to meet state requirements and offer something more valuable, a WealthRabbit SIMPLE IRA is a smarter choice.
WealthRabbit’s SIMPLE IRA is an employer-sponsored retirement plan designed for small businesses with up to 100 employees.
Key features include:
- The SIMPLE IRA is a qualified retirement plan that fulfills the state mandate, allowing you to certify your exemption from RetireReady NJ.
- Employer contributions (required: 3% match or 2% non-elective), which are tax-deductible
- Higher contribution limits for 2025:
- Standard: $16,500
- SECURE 2.0 - Small employers (25 or fewer employees): $17,600
- Age 50–59 or 64+ catch-up: Additional $3,500 (or $3,850 for small employers)
- Age 60–63 super catch-up: Additional $5,250
- Flexible investment choices
- Automated payroll integration with providers like QuickBooks, ADP, and Gusto
- No annual IRS filings or complex paperwork
- Compliance automation and expert support
It’s a smarter, more customizable way to meet state requirements while supporting your team’s financial well-being.
The clear choice for New Jersey employers
As a New Jersey business owner, the mandate is clear: you must offer a qualified retirement plan or enroll in RetireReady NJ.
But simply complying with a regulation is not a strategy. The true choice is between meeting the minimum requirement and gaining a competitive advantage.
With WealthRabbit, compliance is built in, contributions are automated, and your employees get a modern, flexible retirement benefit.
Ready to offer more?
Secure your team’s future and simplify compliance with a solution that works for both you and your employees.
Get started with WealthRabbit SIMPLE IRA today—the easy, affordable way to go beyond the mandate and build lasting financial security. Explore SIMPLE IRAs with WealthRabbit
*Disclaimer: This blog is for educational purposes only and is not intended as tax, legal, or financial advice. Please consult a qualified professional regarding your specific situation.
