Don't Get Forced Into A State Retirement Plan
As social security’s future becomes more uncertain by day, state mandates on retirement plans are coming, and a handful are already here.
The thing is, inaction on these mandates does not mean you wait until you get caught. It means getting forced into a state-run retirement program that will:
Funnel your savings and employee savings into an Auto-IRA—Roth only, no less, which means taxes are upfront and contribution limits are much lower
Give you a narrow selection of investments that doesn’t consider your unique risk tolerance
Charge you the same or more than other plans in the market that give you more tailored options
In the chart that follows, we’re going to break down each of the 12 states that are affected today —and what you’ll get from a forced vs. intentional move on your retirement plan.
Note that actual fee percentages and specific penalty details may be updated over time, so it’s always best to check the latest state guidance.
| State Plan Name | Penalty Fees to Employers | Fees to Employees | Threshold for # of Employees | Auto-enrollment? | Roth-IRA only? |
|---|---|---|---|---|---|
| California - CalSavers Plan | $250-$500 per eligible employee | 0.32–0.49% on assets under management (AUM) | 1+ | Yes | Yes |
| Colorado Secure Savings Program | $100 per eligible employee per year, with a maximum of $5,000 per year | 0.32% on AUM + $22 annual account fee | 5+ | Yes | Yes |
| Connecticut - MyCTSavings | $500 to $1,500 per employee | ~0.26% on AUM + $26 annual account fee | 5+ | Yes | Yes |
| Delaware - DE Earns |
$250 per eligible employee per year, with a maximum penalty of $5,000 annually | 0.32% on AUM + $22 account fee + $4 annual state fee | >5 | Yes | Yes |
| Illinois Secure Choice | $250 per employee for the first year and $500 per employee for each subsequent year | 0.75% on AUM | 5+ | Yes | Yes |
| Maine State-Sponsored Retirement Plan | $20 per covered employee from July 1, 2025, to June 30, 2026. $50 per covered employee from July 1, 2026, to June 30, 2027. $100 per covered employee on or after July 1, 2027 |
0.32% on AUM + $22 account fee | 5+ | Yes | Yes |
| MarylandSaves | None; early enrollment (by Dec 1) earns a $300 discount | Annual asset fee of 0.18%, and an annual account fee of $30 | 1+ | Yes | Yes |
| Massachusetts Defined Contribution CORE Plan (Non-profits only) | None specified | First $100,000: 0.45% Next $150,000: 0.35% Greater than $400,000: 0.15% |
20 or fewer | Yes | No* |
| New Jersey Secure Choice Savings Program or “RetireReady NJ” | First year: A written warning from the state Second year: A $100 fine for each employee who isn't enrolled Third and fourth years: A $250 fine for each employee who isn't enrolled Fifth year and beyond: A $500 fine for each employee who isn't enrolled Failing to remit employee contributions: A $2,500 fine for the first offense and $5,000 for each additional offense |
~0.75% | 25+ | Yes | Yes |
| OregonSaves | $100 per affected employee, with a maximum annual penalty of $5,000 | 0.50% | 1+ | Yes | Yes |
| Virginia - Retire Path VA |
$200 annual penalty per eligible employee | 0.22-0.32% of AUM + $6.75 per quarter | 25+ | Yes | Yes |
| Washington Saves | Violations occurring after Jan. 1, 2030: the max penalty for a first-time willful violation is $100 and $250 for the second willful violation. The maximum penalty for each subsequent violation is $500. |
TBD. Similar programs (Washington State ABLE Savings Program) charge 0.30%-0.38% of AUM. |
n/a | No* | Yes |
This chart provides a quick reference; however, always consult the latest state program details for the most current information.
Other states that have passed legislation but as yet have not launched: Hawai'i, New Mexico (postponed), New York (postponed), and Rhode Island.
Make Your Financial Plan Intentional and Tailored To Your Business
A compelling benefits plan that allows an employee to build wealth with their compensation is a priority driver to stay with or make a change of their employer.
If you haven’t yet made the move to choose one because it feels to complex or too expensive, just know it doesn’t have to be that way.
With Saveday, businesses get the advantage of:
Making pre-tax contributions, meaning you can reduce your taxable income now, plus much higher contribution limits to maximize that nest-egg. This is a game-changer when it comes to building wealth.
401(k), IRA, other wealth building tools like Trust& Will and profit sharing
Ability to self-direct investments and add-on AI, cryptocurrency, E.S.G. and gold bundles
Financial advisory services enhanced by algorithms to define a customized and appropriate portfolio based on individual needs
Competitive 0.25% annual management fee
White-glove reporting, and Saveday takes fiduciary responsibility
Get a retirement you and your team will love.
Schedule your free consultation today to learn more about your options and what kind of plan would work best for your business.