Many states have started to launch “state-run” retirement programs and California is no exception. The California program is called “CalSavers”. This is a state mandated program with penalties for non-compliance. All employers will eventually be required to participate if they do not have or do not adopt an exempted retirement program by the appropriate deadlines (discussed below).

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What is Calsavers?

A state mandated automatic ROTH After tax IRA contribution program.

  • ROTH contribution rate of (5%) of pay: age eighteen (18) and employed at least 30 days
  • Automatically escalates by one percent (1%) per year to a maximum of eight percent (8%)
  • The individual employee may elect a different amount, elect out of auto-escalation, or completely opt-out of the program.

When Employers Must Register

June 30, 2020

Businesses with 100+ employees

June 30, 2021

Businesses with 50+ employees

June 30, 2022

Businesses with 5+ employees

Let us help!

We will explain your options and determine the best course of action for your business

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What happens if the employer doesn’t take action?

Employers need to be aware, there is no option not to act.

  • Lack of action, whether registering for an exemption or failing to enroll employees, may result in
  • Employers may face financial penalties for non-compliance.
  • Fines range from $250 per eligible employee after 90 days from failure notification and can grow up to $500 per eligible employee after 180 days after a failure notification from California.

See how CalSavers compares to other private retirement programs like 401(k)’s and the advantages for both employees and business owners.