Choosing Your Retirement Path
A Visual Guide for New Jersey Business Owners
The NJ Mandate: What You Need to Know
New Jersey requires businesses with 25 or more employees to offer a retirement plan. You can either join the state-sponsored RetireReady NJ program or choose a qualified private plan like a 401(k) or SIMPLE IRA. This guide helps you understand the differences to find the best fit for your business.
25+
Employees Triggers the Mandate
3%
Default Employee Contribution for RetireReady NJ
$0
Direct Cost to Employers for RetireReady NJ
RetireReady NJ at a Glance
How It Works for Employers
While there are no direct fees, employers have significant administrative tasks. Your primary role is to facilitate employee enrollment and payroll deductions.
Pros vs. Cons
Pros:
- Fulfills state mandate
- No direct employer fees
- Limited fiduciary responsibility
Cons:
- No employer contributions allowed
- Lower contribution limits for employees
- Significant administrative burden
- No loan option available
Comparing Your Options: Contribution Limits (2025)
One of the biggest differences between plans is how much you and your employees can save. Private plans offer significantly higher limits, which is crucial for maximizing your own retirement savings as a business owner.
Feature Breakdown: Which Plan Offers What?
Your choice impacts more than just savings. Key features like employer matching and loan availability are powerful tools for attracting and retaining talent, and are only available in private plans.
Making the Right Choice for Your Business
Solo 401(k)
Best For:
Owner-only businesses or owner + spouse.
Key Benefit:
Highest possible personal contribution limits and loan option.
SEP IRA
Best For:
Businesses with few employees and variable profits.
Key Benefit:
High employer contribution limits and contribution flexibility.
SIMPLE IRA
Best For:
Businesses up to 100 employees wanting a simple, attractive benefit.
Key Benefit:
Easy administration with mandatory employer contributions.
Traditional 401(k)
Best For:
Growing businesses seeking the most competitive benefits.
Key Benefit:
Maximum flexibility, high limits, and strong employee retention tool.
✨ Find Your Ideal Plan ✨
Answer a few questions to get a personalized recommendation for your business's retirement plan.
Your Recommended Plan:
Ready to Take the Next Step?
Schedule a personalized consultation with a Financial Advisor to discuss your specific business needs and set up the perfect retirement plan.
Schedule a Consultation