February 1, 2016

NJ Retirement Savings Plan

According to statistics published by the AARP, employers in New Jersey fail to supply about 1.7 million workers with access to a retirement plan. Acknowledging the importance of retirement savings for individuals and society as a whole, NJ legislators passed the Secure Choice Savings Plan Act. This bill requires private sector employers with 25 or more employees to provide a payroll deduction to an Individual Retirement Account (IRA) for employees who choose to do so. Employers with fewer than 25 employees may also opt into the program. While employers are not required to match any contributions, supplying workers with direct access to a retirement savings plan will hopefully encourage more individuals to financially plan ahead for their retirement years.

Your retirement savings plan and bankruptcy

Many people fail to contribute to a retirement savings plan or stop their existing contributions when they are having difficulty paying their debts. However, there are other solutions to financial struggles besides halting your savings or—even worse—cashing out an existing retirement account. An experienced bankruptcy attorney can review your situation and help you decide whether bankruptcy can help relieve you from overwhelming debts and start with a clean slate.

Some individuals may be hesitant to file for bankruptcy because they are afraid their retirement savings may be at risk. However, when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005, the law instituted protections for retirement accounts. In Chapter 7 bankruptcy, many retirement accounts are completely exempt and there are significant exemptions for IRAs. In Chapter 13 bankruptcy, your retirement account balances will not affect your repayment plan. These protections allow individuals to find financial relief from debts without having to jeopardize their retirement years.

Discuss your situation with a qualified bankruptcy lawyer

Having a retirement savings plan is critical to protect you and your loved ones as you get older. Protecting that plan even in the face of financial struggles can help to preserve your quality of life down the road. An experienced bankruptcy attorney can provide legal advice and guidance and help you determine whether bankruptcy is right for you, as well as help you keep your hard-earned retirement savings whenever possible. At The Law Offices of Michael Alan Siddons, we provide the highest quality of assistance in every type of bankruptcy case in New Jersey, Maryland, and Pennsylvania. Please call 609-285-3999 for a free consultation today.