These 13 States Require Small Businesses to Provide Retirement Plans

These 13 States Require Small Businesses to Provide Retirement Plans

More are on their way, so we’ll keep you posted.

Millions of private-sector workers still lack access to retirement plans through their jobs, especially those employed at small businesses. In response, a growing number of states are stepping in with legislation that requires the workplace to offer savings programs, gov-sponsored or otherwise. 

Employees will have the option to opt out, adjust their contributions, or cash out in case of emergencies. These efforts won’t fill all the cracks — the financial future for millions of gig workers still needs to be addressed — but the following 13 states now have laws on the books that mandate small employers provide retirement plans. 

More are on their way, so we’ll keep you posted.

California

For employers with a staff of five or more who cannot provide retirement plans, they must register workers in the state-run CalSavers program.  

  • Deadlines 

    • for 100+ employees: Sept 30, 2020 (already passed)

    • for 50–99 employees: June 30, 2021 (already passed)

    • for 5–49 employees: June 30, 2022 (already passed)

    • for 1 or more employees: December 31, 2025

Colorado

Employers with at least five employees, have been operating for two years, and do not offer a qualified retirement plan are required to enroll in the state’s SecureSavings Program. The state will then assist their workers with automatic payroll contributions to their Roth IRAs. 

  • Contribution default: 5% of wages, with optional annual auto-escalation

  • State began enforcing compliance in early 2024

Connecticut

Employers with five or more workers who don’t provide retirement plans are required to enroll their employees in the MyCTSavings program.

  • Eligible employees must be at least 19 years old, have earned income and have been employed with the company in Connecticut for at least 120 days.

  • Initial rollout launched in 2022, with a March 30, 2023, registration deadline

Delaware

Businesses with at least five employees and no tax-qualified retirement plan in place must enroll their workers in Delaware’s EARNS program.

  • The program launched in 2022, and implementation begins in 2025

  • Employees will be auto-enrolled into a Roth IRA with contribution flexibility 

Illinois 

The Illinois Secure Choice program requires businesses with at least five employees (and two years in operation) enroll their workers if they don’t already provide a retirement option.  

  • Contribution defaults: 5% payroll deduction into a Roth IRA

  • Noncompliance may lead to fines of $250 per employee per year

Maine 

The Maine Retirement Savings Board requires employers who do not offer a retirement plan and with at least five employees to register workers in the state-run program. 

  • Auto-enrolls employees into a Roth IRA with contribution customization

  • Launching in early 2025, currently under administrative development 

Maryland

The MarylandSaves program mandates that two-year-old businesses with at least one employee over 18 must enroll if they do not offer a retirement plan. ​

  • Employees contribute via automatic payroll deductions to IRAs

  • Employers compliant with MarylandSaves may receive waived $300 annual business filing fee

Nevada

Employers with at least five workers and that have been operating for three years are required to enroll in the Nevada Employee Savings Trust for a state-facilitated IRA.

  • Effective beginning July 1, 2025

  • Automatically enrolls workers into an IRA, with opt-out provisions 

New Jersey

RetireReady NJ mandates employers who do not offer a qualified retirement plan register with the state-run program. 

  • Applies to businesses with 25+ employees

  • Employees contribute to a state-facilitated IRA

Oregon

OregonSaves requires all employers that do not offer a retirement plan to facilitate the state-run program.

  • The first in the nation to launch this model in 2017

  • No minimum employee requirement; sole proprietors and self-employed can participate

Vermont

Vermont Saves is set to launch in 2025 for businesses with at least five employees.

  • Voluntary during initial rollout; expected to become mandatory in phases

  • Default contribution rate is automatically set at 5% if you do nothing after enrollment

Virginia

Businesses without a qualified retirement plan but with at least 25 employees and have been in business for two years are required to offer the state-run RetirePath program.

  • Employers must register and facilitate payroll deductions

  • Employees are auto-enrolled at 5% with ability to modify

Washington

Businesses are required to enroll in Washington Saves if they do not offer retirement plans and have been operating for at least two years and whose employees have worked a combined 10,400 hours in the previous year.

  • Currently in development; full launch expected in the next 1–2 years

  • Eligibility criteria tied to total hours worked rather than number of employees

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Using Financing to Become an Owner

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The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. The appropriateness of a particular account or investment strategy will depend on an investor’s individual circumstances and objectives. Investors should carefully consider their investment objectives and risks, as well as charges and expenses of Basic Capital before investing. Basic Capital investments should only be part of your overall investment portfolio.

This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials.

Basic Capital Group Inc, is the direct owner of Basic Capital Markets LLC. Basic Capital Markets LLC has not yet been approved as a member of FINRA/SIPC.

Basic Capital Advisors LLC’s internet-based advisory and administrative services are designed to assist clients in achieving customer defined financial goals. They are not intended to provide comprehensive tax advice or provide comprehensive financial planning with respect to all aspects of your financial situation, nor do they account for specific investments held outside our platform. Investing in securities carries inherent risks, including the possibility of losing money. While asset allocation and diversification aim to manage risk, they do not ensure profits or protect against losses, and past performance does not guarantee future outcomes.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Basic Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

Private placement investments are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency), are not guaranteed by Basic Capital or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

In-app investment advisory services are provided by Basic Capital Advisors LLC ("Basic Capital Advisors"), an SEC registered investment adviser, and a wholly owned subsidiary of Basic Capital Group Inc, a Section C Delaware Corporation.In-app brokerage and custody services are provided by Apex Fintech Solutions LLC, member FINRA/SIPC. IRA plans are provided by Apex Custody Solutions and opened via the Basic Capital application.

Basic Capital is not a bank. Certain services are offered through Plaid, Fragment, Apex and Footprint and none of such entities is affiliated with Basic Capital. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.

Basic Capital, 137 Grand Street, 4th Floor, New York, NY 10013. 855-800-8322

Articles or information from third-party media outside of this domain may discuss Basic Capital or relate to information contained herein, but Basic Capital does not approve and is not responsible for such content.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.Investing in private placements requires long-term commitments, and the ability to afford to lose the entire investment.

Investment advisory services are only provided to clients of Basic Capital Advisors, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf.

© 2024 Basic Capital. All rights reserved.

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No communication by Basic Capital Group Inc. ("BCG"), or any of its affiliates (collectively, "Basic Capital"), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by Basic Capital Advisors, LLC pursuant to a written advisory agreement between such entity and the recipient.

The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. The appropriateness of a particular account or investment strategy will depend on an investor’s individual circumstances and objectives. Investors should carefully consider their investment objectives and risks, as well as charges and expenses of Basic Capital before investing. Basic Capital investments should only be part of your overall investment portfolio.

This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials.

Basic Capital Group Inc, is the direct owner of Basic Capital Markets LLC. Basic Capital Markets LLC has not yet been approved as a member of FINRA/SIPC.

Basic Capital Advisors LLC’s internet-based advisory and administrative services are designed to assist clients in achieving customer defined financial goals. They are not intended to provide comprehensive tax advice or provide comprehensive financial planning with respect to all aspects of your financial situation, nor do they account for specific investments held outside our platform. Investing in securities carries inherent risks, including the possibility of losing money. While asset allocation and diversification aim to manage risk, they do not ensure profits or protect against losses, and past performance does not guarantee future outcomes.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Basic Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

Private placement investments are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency), are not guaranteed by Basic Capital or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

In-app investment advisory services are provided by Basic Capital Advisors LLC ("Basic Capital Advisors"), an SEC registered investment adviser, and a wholly owned subsidiary of Basic Capital Group Inc, a Section C Delaware Corporation.In-app brokerage and custody services are provided by Apex Fintech Solutions LLC, member FINRA/SIPC. IRA plans are provided by Apex Custody Solutions and opened via the Basic Capital application.

Basic Capital is not a bank. Certain services are offered through Plaid, Fragment, Apex and Footprint and none of such entities is affiliated with Basic Capital. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.

Basic Capital, 137 Grand Street, 4th Floor, New York, NY 10013. 855-800-8322

Articles or information from third-party media outside of this domain may discuss Basic Capital or relate to information contained herein, but Basic Capital does not approve and is not responsible for such content.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.Investing in private placements requires long-term commitments, and the ability to afford to lose the entire investment.

Investment advisory services are only provided to clients of Basic Capital Advisors, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf.

© 2024 Basic Capital. All rights reserved.

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