New Jersey Secure Choice Savings Program

New Jersey Governor Phil Murphy signed the New Jersey Secure Choice Act in March of 2019. The program is expected to start in 2024. Upon implementation any New Jersey business owner who has been operating for two or more years and employs 25 or more employees will be required to adopt the New Jersey Secure Choice Savings Program, unless they have an employer-sponsored retirement plan in place. The chart below illustrates a brief summary of the program as currently proposed.


Feature State IRA Plan Employer Sponsored 401k
Plan Type Payroll Deduction Roth IRA Pre-tax, Roth AND Employer Contributions
Contribution Limits Limited to $7,000 (2024) $23,000 (plus more if over age 50)
Compliance Penalties could be from $100-$250 per employee for non-compliance Compliant with state program
Eligibility Age 18 with NJ wages Employer controls eligibility requirements
Plan Costs Legislation stipulates fees cannot exceed 0.75% Dependent on type of plan design chosen.
Tax Deductible NO Employer contributions are tax deductible
Tax Credit Available NO Plan costs qualify for available tax credits
Default Contribution 3% of annual pay unless employee opts out or elects lower amount Employee choice
Auto Escalation Feature NO NO
Minimum Employees to Participate 25 Any Number
Investments Not established yet More than 25 funds in a variety of Morningstar categories

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