New York Secure Choice Savings: What SMBs should know

In October 2021, legislation was signed establishing the New York State Secure Choice Savings Program. The program officially launched in October 2025, with compliance deadlines set for 2026. The mandatory program is structured as an automatic-enrollment Roth IRA and is designed to help private-sector workers in New York who lack access to a retirement plan.

So, who does this impact? Businesses with 10 or more New York employees (and that have been in business for at least two years) must take action, with deadlines staggered by size:

• Employers with 30 or more employees: March 18, 2026

• Employers with 15 to 29 employees: May 15, 2026

• Employers with 10 to 14 employees: July 15, 2026

However, mandatory state registration is not the only compliance option. Businesses looking for a more robust offering—or one that allows employer matching and greater flexibility—can choose to start their own qualified plan. Options like a 401(k) or 403(b) offer higher contribution limits, flexible plan design, and are exempt from the state mandate, allowing your clients to gain a competitive edge in attracting and retaining talent.

The nuts and bolts of the New York State Secure Choice Savings Program

Originally enacted in 2018, the Secure Choice Savings plan is an automatic enrollment payroll deduction IRA retirement savings program. New York’s $168 billion fiscal budget for 2019 added a provision for this new, voluntary option to help more New Yorkers save for retirement using a Roth IRA. The program is managed by the New York State Secure Choice Savings Board, while the Department of Taxation and Finance oversees its development and implementation. 

Passed by the New York General Assembly in May 2021 and the New York State Senate in June 2021, ​​Senate Bill S5395A was signed into law on October 21, 2021. ​​Senate Bill S5395A requires private sector employers without a retirement plan to automatically enroll employees in New York State's Secure Choice Savings Plan. The program launched in October 2025. 

What employers should know about the New York Secure Choice Savings Program 

Is New York Secure Choice mandatory?

Yes. Private-sector companies with at least 10 employees that have been in business for at least two years and have not offered employees a qualified retirement plan such as a 401(k) or 403(b) are required to provide an auto-enroll IRA program. 

What are the deadlines for businesses?

Deadlines are staggered throughout 2026 by size of business:

• Employers with 30 or more employees: March 18, 2026

• Employers with 15 to 29 employees: May 15, 2026

• Employers with 10 to 14 employees: July 15, 2026

What if my company already offers a retirement savings program?

If your small business already offers a 401(k), 403(b), or pension plan, you are not required to use the New York Secure Choice Savings Program. Businesses retain the option to choose retirement programs for their choice for employees.

Learn more about New York State Secure Choice Savings Program alternatives:

• Use our calculator to see how much a 401(k) would cost with SECURE Act tax credits applied.

• Read more about the fees associated with launching and maintaining a 401(k) plan for your business.

• Read our guide on setting up a small business 401(k).

Are employees automatically enrolled or can they opt out?

When an employer complies with the plan, eligible employees are automatically enrolled at a contribution rate of 3% of their wages, unless they designate that they will opt out. Payroll deductions will begin following the 30th day an employee has been enrolled in the program. 

Employees may voluntarily elect to change their contribution levels or opt out at any time. Savings are portable and can be transferred if an employee takes a position with another company. Following implementation, employers must provide an open enrollment period at least once a year for employees who previously opted out to re-enroll in the program.

How much does the plan cost employers and employees?

How much does the plan cost employers and employees? The program is free for employers to administer and imposes no fiduciary responsibility. Employers are not required to contribute. This means that small business owners won’t—and can’t—match employee contributions. If you’re interested in providing an employer match to your employees, you will need to consider offering a 401(k) plan.

According to program literature, New York Secure Choice has an annual asset-based fee ranging from 0.22% to 0.31% depending on investment choices. There is also an annual per-account fee of $28 (which is charged quarterly at $7)

How much can employees save with an IRA?

The new plan simplifies the savings process via a payroll deduction. Employees can save up to the annual Roth IRA limits: 

Roth IRAs allow retirement savings to grow tax-free, and withdrawals made after retirement are generally not taxed.

Is NY the only state with a state-sponsored retirement program?

New York is not alone in its efforts to boost retirement programs for workers. Refer to our guide on state-mandated retirement plans to confirm which states have authorized mandatory programs.

Employers have options

Rather than Secure Choice, an employer could offer another type of retirement savings plan to their employees instead. Consider the tax advantages and savings potential of a 401(k) compared to a Roth IRA. 

A Human Interest 401(k) allows employees to save more and benefit from pre-tax advantages. This means contributions are deducted from the employee's paycheck before federal and state income taxes are calculated, which helps lower taxable income and reduce the amount of tax they owe today. 401(k) plans also allow employers to leverage tax credits to cover plan startup costs and offer a powerful employer match, which can help with employee retention. 

Want to learn more about 401(k) retirement savings plans designed to match the needs of small and medium-sized businesses? We’re here to help.