It’s no joke: New Jersey is expanding its retirement laws on April 1, 2026. Previously, the New Jersey Secure Choice Retirement Savings Program only applied to larger employers. Now, the expanded rules include smaller businesses, like health and dental practices. Already offering retirement? You’re exempt, but you still have to take steps for compliance. Here’s what the New Jersey retirement law requires from you, what your employees get out of the deal, and what your setup options are.
What Does the New Jersey Retirement Law Say?
New Jersey is one of many states that now requires employers to offer retirement plans and help them save for the future. That’s why the New Jersey Secure Choice Savings Program Act created RetireReady NJ, which is a state-mandated auto-enrollment Roth IRA for employees. RetireReady NJ is free for employers to facilitate.
This law originally set registration deadlines in 2024. Back then, only employers with 25 or more employees needed to enroll. Now, the threshold for the minimum number of employees is lowered to 10. That’s just about the size of an average single-location health or dental practice.
If you have been in business in New Jersey for at least two years, you have 10 or more employees, and you don’t already offer them retirement, you must register for and participate in the New Jersey Secure Choice Savings Program. Your employees will then be set up with RetireReady NJ, which allows for employee contributions through payroll deductions. The default contribution is set at 3%, but it can be adjusted. Employees may choose to adjust their contributions or opt out. Be sure to implement those changes at least once per calendar quarter.
If you miss the April 1 registration deadline, you may be subject to penalties with the state. Those penalties are costly and cumulative, so don’t delay.
Who Doesn’t Need to Participate?
Employers with fewer than 10 employees don’t have to participate. They can, however, join the New Jersey Secure Choice Savings Program voluntarily.
If you already offer a sufficient retirement plan, you’re in good shape. If you file for an exemption, you don’t have to switch plans. Here’s what’s considered sufficient for an exemption:
- A defined benefit plan
- A 401(k) or 403(b) plan
- A Simplified Employee Pension (SEP) plan
- A Savings Incentive Match Plan for Employees (SIMPLE) plan
According to the New Jersey retirement law, there may be other applicable retirement structures, so check details before you file.
Offering Retirement Can Be a Smart Choice, Even If It’s Not Required
Did you know one in four Americans has nothing saved for retirement? It’s eye-wateringly expensive to retire, so that’s a scary future. For many workers, the only way they could save for retirement is with help from their employer. That’s why so many states are rolling out these laws.
On the fence? Think of it this way: when you invest in employees’ future, you’re showing them that you value them. Retirement plans keep you competitive, and it can even reduce turnover. With all that in mind, it might even be the more affordable option for you.
And as the New Jersey retirement law points out, retirement plans are flexible. Maybe employees have a little extra financial cushion, so they can add more to their retirement savings. Times are getting tight? Retirement plans can help reduce contributions and keep more of their paychecks upfront. If you’re there to help, those decisions can be a lot easier.
Stay Up to Date with HR for Health
Retirement plans aren’t just for major corporations anymore. Whether you’re offering your own retirement plan or not, HR for Health can help. However you’re set up, retirement benefits instantly sync with our HR for Health payroll solution, so your employee contributions and employer matches are always correct.
Rather stick with RetireReady NJ? No problem. HR for Health will keep you up to date on all the latest laws so you never miss an expensive deadline.
Schedule a demo or contact our on-demand HR experts to find out what else HR for Health can do.
