Business owners in New Jersey and several other states face urgent compliance deadlines with state-mandated retirement plan laws—missing them can mean steep fines, with penalties as high as $500 per employee for prolonged non-compliance. Now is the time to act and review the best-fit options for your business, including flexible 401(k) plans and cost-effective SIMPLE IRAs; personalized guidance from a Financial Advisor with a Chartered Retirement Planning Councilor (CRPC) and a Certified Plan Fiduciary Advisor (CPFA) designation can help owners confidently navigate the rules and secure optimal benefits for both themselves and their teams though their specialized training.
Urgent Retirement Plan Deadlines in New Jersey
Since we're located in New Jersey, we'll focus on the law in that state in this discussion, however, we work in several states that are also effected such as CA, DE and VA for example. In NJ Employers with 25 or more employees must comply with the new RetireReady NJ mandate—if the business does not currently offer a qualifying retirement plan and missed the registration deadline (November 15, 2024 for 25-39 employees; September 15, 2024 for 40+ employees), substantial fines will apply and escalate over time. The law applies to organizations in operation for at least two years, including both for-profit and nonprofit entities; exemption certification is required for those offering qualifying plans.
NJ Fines for Non-Compliance:
- Year 2 non-compliance: up to $100/employee
- Years 3-4: up to $250/employee
- Year 5+: up to $500/employee
401(k) vs. SIMPLE IRA: Choosing the Best Fit
While a 401(k) is often the best choice due to its flexibility, tax advantages, and ability to attract top talent, some small businesses may prefer a SIMPLE IRA, which offers lower administrative burdens and faster setup. As a CRPC and CPFA, Scott Jones of Genesis Wealth Advisor Group is uniquely qualified to assess each business's needs.
401(k) Plans:
- Highest contribution limits, employer match options
- Numerous investment choices, Roth or pre-tax options
- Fully customizable to business goals
- Strong retention and recruiting benefits
SIMPLE IRA Plans:
- Easy setup, minimal paperwork
- Lower administrative costs than 401(k)
- Good fit for businesses with 100 or fewer employees
- Mandatory employer contributions—either matching or fixed percent
Why Prompt Action Is Critical
State enforcement has already begun; employers who delay risk accumulating penalties and face more complex remediation. Inaction can also impact employee morale and recruitment as workers increasingly expect robust retirement benefits in today’s job market. A timely, compliant plan—tailored by an experienced professional—protects the business and its workforce.
How Genesis Wealth Advisor Group Can Help
With specialized credentials (CRPC and CPFA), Genesis Wealth Advisor Group offers:
- Retirement plan selection and design expertise for 401(k) and SIMPLE IRA
- Regulatory compliance evaluation—even across state lines
- Optimized plan integration for owner, employee, and beneficiary benefit
- Step-by-step, personable guidance from analysis to implementation and beyond.
Ready to Take Action?
Business owners should immediately:
- Assess current retirement plan status
- Review compliance deadlines and potential fines
- Contact Genesis Wealth Advisor Group for custom advice and a no-obligation review
Don’t jeopardize hard-earned success with avoidable penalties—leverage proven expertise and protect your business with the right retirement plan today
Not sure what your state requirements are? Reach out to us and we'll let you know.
Looking for more info? Check out my related article in Biz Recap: Navigating State-Mandated Retirement Plans: Why a 401(k) Could Be The Best Choice for Your Business