A simpler, more powerful retirement plan for
New Jersey employers
Offering a retirement plan your team will actually value can set your business apart. While New Jersey provides a default savings program, it offers limited flexibility and few investment options. With WealthRabbit, you can deliver a SIMPLE IRA that gives employees meaningful choice, simplifies administration, and provides stronger tax advantages for your organization.
What is RetireReady NJ?
RetireReady NJ is the state-mandated retirement savings program for New Jersey employers. The program requires businesses with 25 or more employees that have been in operation for at least two years to automatically enroll eligible workers into the state-run IRA if no other retirement plan is offered.
With WealthRabbit, New Jersey employers can stay compliant while offering a stronger benefit for their team. Our flexible SIMPLE IRA delivers a modern retirement solution designed for growing businesses.
Registration deadlines
The registration deadline depends on the size of your business:
- Employers with 40+ employees: September 15, 2024
- Employers with 25 to 39 employees: November 15, 2024
Non-compliance penalties
Failure to comply with the state mandate may result in financial penalties:
- 1st year: A written warning is issued by the state
- 2nd year: $100 per eligible employee
- 3rd and 4th years: $250 per eligible employee
- 5th year and beyond: $500 per eligible employee
What you’re missing with RetireReady NJ
RetireReady NJ is designed to check a compliance box - but for businesses and employers, it often falls short:
- Limited investment optionsEmployees can't build customized retirement portfolios.
- No employer benefitsBusinesses spend time managing compliance, but don't receive tax incentives.
- One-size-fits-allEvery business is forced into the same model, regardless of size or needs.
- Minimal growth potentialLimited funds can mean lower returns for employees over time.
- Harsh penaltiesNew Jersey businesses that fail to comply could face penalties of up to $500 for each employee.
Ready for a retirement solution that works better for your business?
SIMPLE IRA: The smart alternative to RetireReady NJ
A SIMPLE IRA plan offers significant advantages over the state-mandated option, providing tax benefits for employers and greater growth potential for employees. It's a powerful tool for attracting and retaining talent.
- Tax credits Qualify for up to $5,500 in tax credits for starting a new plan.
- Employer tax deductions Contributions you make are tax-deductible as a business expense.
- Higher contribution limits Both employees and employers can contribute significantly more than with RetireReady NJ.
- Investment flexibilityEmployees get access to a wide range of investment options, not just a few target-date funds.
- Attract & retain talentOffering a superior retirement benefit makes your company more competitive.
See How Much You Can Save with a SIMPLE IRA
Small businesses can take advantage of tax credits to help cover setup and administrative costs. By launching a new plan with auto-enrollment, you could qualify for up to $5,500 in tax credits!
How tax credits work
Tax credits are designed to offset the cost of setting up and administering, as well as contributing to the employees retirement savings.
Employers can claim up to $5,000 per year for three years to offset plan setup and administrative costs. They may qualify for additional tax credits.
- Auto-enrollment bonusIf you make the plan automatic (employees are enrolled unless they opt out), you get an extra $500 credit for 3 years.
- Employer contributionsYou may also get credits for money you put into employees' accounts (up to $1,000 per employee in the early years).
Together, these credits can add up to thousands in savings for your business. Curious how much you could claim?
Try our calculator and see exactly how much you could save.
Estimate your tax credit
Disclosure*
The SIMPLE IRA tax credit calculator is intended to estimate the average tax credit for your business. Please note, it does not constitute tax or legal advice.
Elevate your retirement savings with WealthRabbit
Looking for an alternative to RetireReady NJ? With a WealthRabbit SIMPLE IRA, New Jersey employers can stay compliant while providing employees with a more flexible, modern retirement benefit.
- Self-onboardingEmployers and employees sign up on their own—retirement plans are up and running in just a few clicks.
- Seamless payroll integrationWealthRabbit seamlessly connects with your payroll system to ensure accurate and timely contributions for every employee.
- Streamlined plan rolloversEasily roll funds from your existing retirement plan into WealthRabbit— no hassle, no delays.
- Automated contributionsEnjoy a hands-off approach to retirement savings. Set up automatic deposits so your team never misses a contribution.
- Employee & employer portalsManage contributions and investments anytime, anywhere — with real-time access to performance and account activity.
RetireReady NJ vs. WealthRabbit
A quick look at how WealthRabbit’s SIMPLE IRA compares to New Jersey’s state program.
| Feature | Delaware EARNS | WealthRabbit SIMPLE IRA |
|---|---|---|
| Administrative efforts | State-mandated with limited customization; minimal employer involvement | Streamlined process with automated setup and payroll integration |
| Retirement options | Roth IRA only; default 5% contribution and no employer match | More diverse investment options, customizable based on business needs |
| Eligibility criteria | Employers in NJ with 25 or more employees, in business at least 2 years | Participation is open to employers with ≤100 employees earning ≥$5,000. A required contribution is either a 3% dollar-for-dollar match or a 2% nonelective contribution |
| Flexibility | State-regulated with fixed contribution rates and minimal flexibility | Highly customizable plan with the ability to modify contribution rated and match options |
| Monthly fees | No cost to employer; employees incur ~0.75% annual asset-based fee + fund expense ratios | User-friendly portals+mobile access + stronger growth Low-cost setup: $29/month + $4 per employee, no state fees |
| Employee experience | Basic account with limited tools for employees | Comprehensive dashboard, financial literacy resources, and rollover support |
Frequently asked questions
Private-sector employers in New Jersey are required to register for RetireReady NJ or certify an exemption if they meet the following three criteria:
- They have 25 or more employees in New Jersey (at any time during the previous calendar year)
- They have been in business for at least two years
- They do not already offer a qualified retirement plan to their employees
Employers who do offer a qualified plan (such as a SIMPLE IRA) must still notify the state by certifying their exemption through the RetireReady NJ portal.
The RetireReady NJ program launched on June 30, 2024. The mandatory compliance deadlines for eligible employers, which have already passed, were grouped by size:
- Employers with 40 or more employees: The registration deadline was September 15, 2024.
- Employers with 25-39 employees: The registration deadline was November 15, 2024.
For employers who become newly eligible (e.g., by reaching 25 employees), you must register or offer a qualified alternative by the deadline communicated to you by the state.
If you have questions about your specific deadline, contact WealthRabbit support for assistance.
Employers are responsible for facilitating the program, but have no fiduciary responsibility for the plan's performance. The main requirements include:
- Registering with the state program or certifying an exemption.
- Providing basic employee information for all eligible employees.
- Automatically enrolling eligible employees (age 18 or older) who have not opted out.
- Facilitating payroll deductions at the default rate of 3% of pretax earnings (or the rate chosen by the employee).
- Remitting contributions to the state program promptly.
Employers are not permitted to match or contribute to the state-sponsored RetireReady NJ program.
Employers that fail to register or certify an exemption may face escalating penalties:
- Year 1: A written warning from the state
- Year 2: A $100 fine for each employee not enrolled or opted out
- Year 3 and 4: A $250 fine for each employee not enrolled or opted out
- Year 5 and beyond: A $500 fine for each employee not enrolled or opted out
Choosing a WealthRabbit SIMPLE IRA ensures your organization remains compliant while offering employees a more modern and flexible retirement benefit.
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