New Jersey Bill Considers Portable IRAs For Retirement Plans

New Jersey may soon join small list of states, including Vermont and Oregon, that enable employees to take their retirement plans with them if they change jobs. These are known as portable IRAs.

Those employees who work for businesses that have 25 or more employees would automatically be enrolled in a retirement plan managed by a professional unless they chose to opt out if a proposed bill is accepted. In New Jersey this bill is S-2891, which would effectively create the secure choice for retirement program.

This would enable those workers who did not have an employer sponsored retirement plan to be able to save on their own for retirement. According to AARP research, over 1.7 million people living in New Jersey have no vehicle to save for retirement at their jobs.

Planning ahead for retirement is also important because you must consider the possibility of the cost of long term care. Health care costs for the elderly can be significant particularly if the person develops a disabling or incapacitating condition. Schedule a consultation with an estate planning attorney to learn more about how your retirement plan and your estate plan can work together.