Tax Tip #216

NJ employees will now have the ability to save for a secure retirement through the launch of RetireReady NJ, a state-administered retirement savings program that aims to reach workers who do not have access to private-employer retirement plans. 

Businesses in the state with 25 or more employees that have been in business for two years or more and do not currently offer a qualified retirement plan will be required to register with the program. Employees will be given the opportunity to begin saving for retirement through payroll deductions into a Roth or Traditional IRA. Self-employed individuals will also be able to save directly with RetireReady NJ. There is no cost for employers to participate in the program. 

Alternatively, the employer can offer a company-sponsored plan. While an employee will be automatically enrolled in this program, the employee can opt out & reenroll at a later time.