Your guide to the Nevada state retirement savings program (NEST)

What Nevada employers should know about NEST

In 2023, Nevada joined a growing number of states taking steps to close the retirement savings gap. The Nevada Employee Savings Trust (NEST) is a state-facilitated program designed to make saving for retirement easier for private-sector workers whose employers don’t offer a plan.

For small and midsized businesses, the law means new compliance requirements — and new opportunities to offer employees a long-term financial benefit. Whether you missed the 2025 registration deadline or are looking to replace NEST with a more robust 401(k) option, we’ll outline how your organization can follow state rules and give employees a way to save for the future.

As a Retirement Industry Disruptor™, we support small businesses across the country with modern 401(k) solutions. Explore how Human Interest can bring simplicity and transparency to your organization’s savings plan.

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What is the Nevada Employee Savings Trust (NEST)?

NEST is a state-run retirement savings program that automatically enrolls eligible employees in a Roth IRA, allowing them to contribute directly from their paychecks unless they opt out.

• The program is mandatory for employers with 6 or more employees who have been in business for at least 36 months and do not offer a qualified retirement plan.
• Employees are automatically enrolled after working at least 120 days, and if 18 years or older. 
• Contributions are set at a default rate of 5% of earnings, though employees can adjust their rate or opt out entirely. 
• Employers are not required to contribute to these accounts.
• Employers will be notified by the state with registration instructions and must maintain accurate employee records, including contribution updates and terminations. 
• While employers are responsible for processing payroll deductions and sending contributions to the state, they are not considered fiduciaries under the program.

Employers were required to register with NEST by September 1, 2025. For businesses that did not complete registration, it’s recommended to review the next steps for enrollment to remain aligned with state requirements. Although NEST has stated that nonparticipating employers could be subject to penalties, the specifics have not been announced.

The Nevada State Treasurer’s office is slated to move into the enforcement phase soon. Under SB305, the board has the authority to impose penalties, meaning that businesses may now face per-employee fines, making the transition to a 401(k) a matter of immediate financial protection.

What employees should know about NEST

Once enrolled, eligible workers will have their contributions automatically transferred to a Roth IRA held through the NEST program. They can opt out or change their contribution rate at any time. Employees retain control over their accounts, including investment selections and portability if they change jobs. 

The state’s board of trustees will provide informational materials and disclosures that explain:

• Benefits and risks of saving through NEST
• How to access more information about the program
• Tax considerations of contributing to a Roth IRA
• Details about default investment options and contribution rates

Alternatives to NEST for Nevada employers

While NEST offers a state-managed savings option, some employers may prefer the flexibility and potential tax benefits of choosing their own 401(k) plan. A 401(k) can provide higher contribution limits, employer match opportunities, and potential tax credits under the SECURE 2.0 Act. These include:

• A startup cost tax credit that can cover up to 100% of eligible administrative expenses for small businesses starting a new plan
• An employer contribution tax credit of up to $1,000 per employee annually for eligible companies. The IRS provides guidance on claiming this credit through Form 8881.
• A credit for adding automatic enrollment features to encourage participation.

Beyond tax incentives, 401(k) plans can strengthen employee retention and engagement by offering more flexible savings options and a smoother administrative process. Partnering with a modern platform like Human Interest can streamline plan management and enhance the overall employee experience.

How to decide between NEST and a 401(k)

While both programs aim to expand access to retirement, they differ in terms of flexibility and benefits. NEST enables a straightforward path to compliance for small businesses with limited resources. A 401(k), in comparison, offers higher contribution limits, potential employer matches, and greater customization for growing organizations. For businesses that want to stay compliant while also building a competitive benefits package, a 401(k) may present more advantages.

Why choose Human Interest

Human Interest is a technology-driven retirement platform created to make 401(k) administration simple for businesses of all sizes. Our built-in compliance support can help Nevada employers meet state requirements while giving employees more ways to save for the future. With payroll integrations, robust account management, and dedicated support, we help streamline every step of the process—so you can focus on running your business.

Learn how Human Interest can help your business stay compliant and simplify retirement planning.

Get started today.

Frequently asked questions

Who must participate in NEST?

Private-sector Nevada employers with 6 or more employees and at least 36 months in business that don’t offer a retirement plan must register.

Are Nevada employers required to contribute to NEST?

No. Employers facilitate payroll deductions but are not required to contribute.

Can employees opt out of NEST?

Yes. Employees can opt out of automatic enrollment or change their contribution rate at any time.

How can Human Interest help Nevada businesses offer a 401(k)?

For Nevada employers that want to stay compliant while offering more flexibility than state IRAs,

Human Interest offers a technology-forward 401(k) solution with automated administration, transparent pricing, and built-in compliance support.

I missed the September 2025 deadline. What do I do now?

You should register for NEST immediately or adopt a qualified plan like a 401(k). Once you adopt a 401(k), you can claim an exemption from the state mandate, potentially avoiding late-filing penalties.