Live mandate
Does my New Jersey business have to offer a retirement plan?
Short answer
Yes, if you have 10 or more employees, have been in business in New Jersey for at least 2 years and don’t offer a retirement plan such as a 401(k). You either register for RetireReady NJ or certify that you already offer a plan. Employers with 20 to 24 employees are due December 1, 2026; those with 10 to 19 are due February 17, 2027.
Who must comply
A 2026 amendment lowered the threshold from 25 employees to 10. Every New Jersey employer that had 10 or more employees throughout the previous calendar year, has been in business in the state for at least 2 years and doesn't offer a qualified retirement plan must register and start payroll deductions.
Deadlines
Employers with 20 to 24 employees must register by December 1, 2026. Employers with 10 to 19 employees must register by February 17, 2027. Larger employers were due in 2024: September 15 for 40 or more employees and November 15 for 25 to 39. RetireReady NJ is mailing notices to newly covered employers.
Penalties
New Jersey starts with a written warning for the first year with a violation. After that, the fine is a flat $100 in year two, $250 per unenrolled employee in years three and four, and $500 per unenrolled employee from year five. Collecting contributions without sending them in costs $2,500 the first time and $5,000 after that. These are maximums, and the program can reduce or waive them.
How to get exempt
If you provide a qualified retirement plan such as a 401(k), certify your exemption on the RetireReady NJ portal with the Access Code from your notice. If you can't find the code, you can look it up online. The RetireReady NJ FAQ lists the plan types that qualify.
RetireReady NJ or a 401(k)?
RetireReady NJ accounts are Roth IRAs by default, so each saver is held to the IRA limit: $7,500 a year in 2026 and 2027, or $8,600 at 50 or older, across all their IRAs. Higher earners can be phased out of Roth contributions altogether, starting at $153,000 of income for single filers in 2026 and $158,000 in 2027. A 401(k) leaves far more room: employees can defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. RetireReady NJ doesn’t allow employer contributions, so you can’t add a match; a 401(k) can include one. RetireReady NJ costs employers nothing to run; savers pay the account and fund fees. New savers start at 3% of pay, rising 1% each January from 2027 to 10% unless they change it.
Sources
RetireReady NJ (State of New Jersey): Employers (nj.gov) RetireReady NJ: Program Details for Employers (nj.gov) RetireReady NJ: Contributions (savers) (nj.gov) State of New Jersey: P.L. 2019, c. 56, §19 (N.J.S.A. 43:23-31) (nj.gov) Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov) Internal Revenue Service: COLA increases for dollar limitations on benefits and contributions (irs.gov) Internal Revenue Service: 401(k) plan overview (irs.gov) Georgetown University Center for Retirement Initiatives: States: 2026 state program status (as of November 6, 2026) (cri.georgetown.edu)
This page is general information, not legal or tax advice. Confirm current rules with the state program before acting.
