New Jersey Secure Choice Savings Program
State of New Jersey IRA program
Year enacted |
2019 |
Status |
Not yet active
Initial implementation date was March 28, 2021, but the program was allowed up to a one-year extension. Anticipated implementation deadline was March 28, 2022, but the program's website notes that it's not yet operational. Under the statute, the board shall implement the program in two phases based on the size of the employers participating, as measured by the number of employees per employer, with the program implemented first for larger employers. |
Employers affected |
Mandatory for employers with 25 or more employees that don’t provide their own plan, with a two-year deferral for new businesses |
Type of account |
Roth or traditional IRA authorized |
Automatic enrollment |
Yes |
Auto-escalation |
No |
Default contribution rate |
3% |
Employer contributions |
Not permitted |
Investment options |
The program’s board may establish the following as investment options: a capital preservation fund, a life cycle fund, and other investment funds deemed appropriate by the program’s board. If the board elects to establish a capital preservation fund, the board may provide that the first $1,000 in contributions be deposited into the capital preservation fund and may provide for an account revocation period during which a participant who chooses to end participation in the program may withdraw the deposited amounts from the capital preservation fund without penalty.
Default—The board shall determine the investment option to serve as the default for participants who fail to elect an investment option. |
Fees |
None for employers. Employee fees are capped at 0.75% of the fund’s total balance on an annual basis for the first three years of the program, and after that time, capped at 0.6% of the fund’s total balance on an annual basis. |
Website |
Sources: Most of the information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21 and the program's website. It is subject to change without notice. Please contact the state to learn more.
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