Live mandate
Does my Connecticut business have to offer a retirement plan?
Short answer
Yes, if you had 5 or more employees in Connecticut and don’t offer a retirement plan such as a 401(k). You either register for MyCTSavings or certify that you already offer a plan. Since July 2025, employers that ignore the final notice can be fined $500 to $1,500 a year, depending on size.
Who must comply
You’re covered if you had 5 or more employees in Connecticut on October 1 of last year and paid at least 5 of them $5,000 or more that year. Businesses that didn’t exist for all of this year and last year aren’t covered. Covered employers without a retirement plan must register.
Deadlines
The first registration waves ran from 2022 through March 30, 2023. Newly eligible businesses register by August 31 each year. Next: August 31, 2027. If you were notified and haven’t acted, MyCTSavings says to register or certify an exemption now.
Penalties
Connecticut added penalties on July 1, 2025. The State Comptroller sends at least two notices and then a final notice. If you’re still out of compliance 90 days after that, the fine is up to $500 a year for 5 to 24 employees, $1,000 for 25 to 99 and $1,500 for 100 or more.
How to get exempt
Offering a qualified retirement plan, such as a 401(k), exempts you from MyCTSavings. Certify the exemption on the MyCTSavings employer portal with the Access Code from your notice; if you can't find the code, you can look it up online.
MyCTSavings or a 401(k)?
MyCTSavings accounts are Roth IRAs, so each saver is held to the IRA limit: $7,500 a year in 2026 and 2027, or $8,600 at 50 or older, across all their IRAs. Higher earners can be phased out of Roth contributions altogether, starting at $153,000 of income for single filers in 2026 and $158,000 in 2027. A 401(k) leaves far more room: employees can defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. MyCTSavings doesn’t allow employer contributions, so you can’t add a match; a 401(k) can include one. MyCTSavings costs employers nothing to run; savers pay the account and fund fees. New savers start at 5% of pay, rising 1% each January to 10% unless they change it.
Sources
MyCTSavings: Program details (employers) (myctsavings.com) MyCTSavings: Contributions (savers) (myctsavings.com) Connecticut General Assembly: Public Act No. 25-30 (SB 1221), amending CGS §31-425(c) (cga.ct.gov) Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov) Internal Revenue Service: COLA increases for dollar limitations on benefits and contributions (irs.gov) Internal Revenue Service: 401(k) plan overview (irs.gov) Georgetown University Center for Retirement Initiatives: States: 2026 state program status (as of November 6, 2026) (cri.georgetown.edu)
This page is general information, not legal or tax advice. Confirm current rules with the state program before acting.
