Enacted not yet live
Does my Hawaii business have to offer a retirement plan?
Short answer
Not yet, but it’s coming. Hawaii law requires private employers with even one employee to offer a retirement plan such as a 401(k) or sign up for the Hawaii Retirement Savings Program. The state expects to launch it in late December 2026 and hasn’t set employer deadlines. If you already offer a plan, you’re exempt.
Who must comply
The Hawaii Retirement Savings Act covers any private employer in business in Hawaii with one or more employees, unless it offers a qualified retirement plan such as a 401(k), 403(b), SEP or SIMPLE IRA, or has offered one in the past two years. A 2025 law (Act 113) made automatic enrollment of eligible employees mandatory.
Deadlines
The program is projected to launch in late December 2026. The Hawaii Retirement Savings Board has not announced employer registration deadlines yet, and the state says to prepare now.
Penalties
Hawaii can make you pay the contributions you missed plus 6% interest, along with $25 a month for each employee you didn’t enroll, rising to $50 a month after a penalty is assessed. Other violations cost at least $500 each, up to $5,000 a year. The monthly penalties don’t apply if you were reasonably diligent, didn’t know about the problem and fix it within 90 days of learning about it.
How to get exempt
Offering a qualified retirement plan, such as a 401(k), exempts your business. The state hasn't published how employers will certify an exemption yet. The program's FAQ also lists a pooled employer plan (PEP) as a way to meet the requirement.
Hawaii Retirement Savings Program or a 401(k)?
Hawaii’s accounts will be Roth IRAs, so each saver will be held to the IRA limit: $7,500 a year in 2026 and 2027, or $8,600 at 50 or older. A 401(k) lets employees defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. Hawaii doesn’t require employer contributions; a 401(k) lets you add a match. New savers will start at 5% of pay.
Sources
Hawaii Department of Labor and Industrial Relations: Hawaii Retirement Savings Program (labor.hawaii.gov) Hawaii Department of Labor and Industrial Relations: Employers: Hawaii Retirement Savings Program (labor.hawaii.gov) Hawaii Department of Labor and Industrial Relations: HRSP FAQs (November 2025) (labor.hawaii.gov) Hawaii State Legislature: HRS §389-14 Penalties (capitol.hawaii.gov) Hawaii State Legislature: Act 296 (SLH 2022) (data.capitol.hawaii.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.
