Enacted not yet live
Does my Washington business have to offer a retirement plan?
Short answer
Not yet. Washington Saves, the state’s new auto-IRA, expects to open in July 2027, and proposed rules put the first employer deadlines in December 2028 and December 2029. It will cover employers that have been in Washington at least 2 years, had employees work 10,400 or more combined hours last year and don’t offer a plan such as a 401(k).
Who must comply
You’re covered if your business has been in Washington for at least 2 years, has a physical presence there, had employees work at least 10,400 combined hours last year, about 5 full-time people, and doesn’t offer a retirement plan.
Deadlines
Washington Saves anticipates opening in July 2027. Proposed rules published in August 2026 would require covered employers with more than 20,800 combined hours to register by December 1, 2028, and all other covered employers by December 1, 2029. These dates are not final until the rules are adopted.
Penalties
Only willful violations after January 1, 2030 can be penalized: up to $100 for the first, $250 for the second and $500 for each one after that. Until then, the Department of Labor & Industries helps employers fix problems instead of fining them.
How to get exempt
Offering a qualified retirement plan such as a 401(k) means you are not a covered employer. Under the proposed rules, an employer contacted by the program would certify on the program website that it offers a qualified plan or participates in one through a trade association, chamber of commerce or professional employer organization (PEO). Washington also runs a voluntary Retirement Marketplace where small employers can compare plans.
Washington Saves or a 401(k)?
Washington Saves accounts will be Roth IRAs by default, 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. Washington Saves won’t allow employer contributions; a 401(k) can include a match. Proposed rules set the default at 5% of pay, rising 1% each January to 10%.
Sources
Washington Saves: About the Washington Saves Program (wasaves.wa.gov) Washington State Legislature: Chapter 19.05 RCW: Washington Saves (app.leg.wa.gov) Washington State Department of Labor & Industries: Washington Saves Retirement Program (lni.wa.gov) Washington State Register: WSR 26-16-061 Proposed rules: Washington Saves (lawfilesext.leg.wa.gov) Washington Retirement Marketplace: Washington Retirement Marketplace (retirementmarketplace.com) 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.
