State IRA Mandates

Stay up-to-date with the latest state-mandated IRA legislation

As a growing number of states consider and enact legislation requiring that employers offer a retirement savings plan to employees, understanding where things stand in your state can help you avoid costly fines and headaches.

While these programs are a step in the right direction in terms of expanding access to retirement savings options, these state-sponsored programs have some notable limitations, especially if you own a business:

Owners, along with employees earning more than $144,000, may not be eligible to participate.
Possibility of administrative complexities if employees are in multiple states that are subject to mandates.
The maximum annual contribution for these state-run programs is $6,000 in 2022 ($7,000 if age 50 or older). In a 401(k), participants can contribute up to $20,500 ($27,000 if 50 or older).
Opting to offer a state-run program could mean losing out on up to $16,500 in tax credits available for starting a qualified plan.
Employer contributions are not permitted.

States w/ Mandatory Programs	Status	Businesses Impacted	Penalties for Noncompliance
CA - CalSavers	Active	Currently more than 50, 5 or more 6/30/22	$250 per elgible employee after 90 days, additional $500 per employee after 6 months
CO - Colorado Secure Savings Program	Active	50+ employees - register by 3/15/23; 15-49 employees - 5/15/23; 5-14 employees - 6/30/23	$100/employee/year up to a maximum of $5,000/year
CT - MyCTSavings	Active	5+ employees and not currently offering a qualified plan	Possible investigation and penalties
IL - Illinois Secure Choice	Active	25+ employees currently, 16+ on 11/1/22, 5+ on 11/1/23	$250 per eligible employee for 1st year, additional $500 per eligible employee for each year thereafter
MD - MarylandSaves	Active	All employers that pay employees through a payroll system or service	Will not receive $300 waiver of the Maryland business annual filing fee
ME - Maine Retirement Savings Program	Passed	25+ 4/1/23, 15+ 10/1/23, 5+ 4/1/24	TBD
NJ - New Jersey Secure Choice Savings Plan	Passed	25+ employees, in business for 2 years - have 9 months from enactment	Yr. 2: $100/employee, Yrs. 3 + 4: $250/employee, Yrs. 5+: $500/employee
NY - New York Secure Choice Savings Program	Passed	Private sector businesses w/ 10+ employees	$250 per eligible employee for 1st year, additional $500 per eligible employee for each year thereafter
OR - OregonSaves	Active	Currently 5+ employees, 4 or less targeted for late 2022	$100 per eligible employee up to a maximum of $5,000 per calendar year
VA - RetirePathVA	Passed	Businesses w/ 25 or more employees, planned launch by 7/1/23	TBD
DE - Deleware EARNS	Passed	Businesses w/ 5+ employees, 6+ months in business, launching by 2025	TBD
HI - Hawaii Saves	Passed	Businesses w/ 1 or more employees, employees must opt-in - launch scheduled for 6/1/24	TBD

Where the remaining states stand:

States that have enacted voluntary programs: MA, NM, VT, WA
States that studied or proposed legislation within the last year: AR, GA, IA, ID, IN, KS, KY, MN, MO, MS, NC, NV, OH, OK, PA, RI, TX, WI
States w/ legislative efforts prior to 2021: AZ, LA, MI, MT, ND, NE, NH, SC, TN, UT, WV, WY
States that have not pursued an Auto-IRA: AK, AL, Washington, DC, FL, SD

Learn about your alternatives to state-run IRAs

401(k)s have a reputation for being costly, complex and time consuming, putting them out of reach for many small businesses. But thanks to the introduction of pooled employer plans, there's now a simple, affordable way for businesses to offer a 401(k).