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State Mandated Retirement Plans

Stay updated on your state's requirements.

Many states require employers to offer retirement benefits. Starting a Human Interest 401(k) can help you comply with legislation and avoid costly penalties.

Comply Today With a 401(k)

States with active legislation

California - CalSavers
Type of Plan: Roth IRA (option available to recharacterize account as traditional IRA)
Deadlines: Final deadline on December 31, 2025, will require employers with 1+ employees over age 18 in the prior year that do not currently offer a qualified retirement plan to participate in the program. (Mandates for businesses with 100+ employees, 50+ employees, and 5+ employees have already passed.)
Fines: Employers may be subject to a $250 fine per employee if found in noncompliance 90+ days after the notice and an additional $500 fine per employee if found in noncompliance after 180+ days.
Colorado - Colorado SecureSavings
Type of Plan: Roth IRA
Deadlines: All existing deadlines have passed. Employers with 5+ employees that have been in business for two or more years, and who do not currently offer a qualified retirement plan are currently required to comply.
Fines: Employers may be subject to a $100 fine per employee (up to a maximum of $5,000 per calendar year) if found in non-compliance.
Connecticut - MyCTSavings
Type of Plan: Roth IRA
Deadlines: All existing deadlines have passed. Employers with 5+ employees are currently required to comply.
Fines: Employers that don’t comply by 90 calendar days after the final noncompliance notice could receive between $500 and $1,500 in fines as outlined below:
  • $500 for employers with 5-24 employees
  • $1,000 for employers with 25-99 employees
  • $1,500 for employers with 100+ employees
Delaware - Delaware EARNS
Type of Plan: Roth IRA
Deadlines: Employers with 5+ employees and who do not currently offer a qualified retirement plan are currently required to comply by October 15, 2024.
Fines: Employers that don't comply with the law could be fined up to $250 per employee per year with a maximum total penalty of $5,000 per year.
Illinois - Illinois Secure Choice
Type of Plan: Roth IRA
Deadlines: Employers with 5+ employees and who do not currently offer a qualified retirement plan are currently required to comply.
Fines: Employers that do not comply face penalties of $250 per employee for the first year and $500 per employee for each subsequent year.
Maine - Maine Retirement Investment Trust (MERIT)
Type of Plan: Roth IRA
Deadlines: Employers with 5+ employees who have been in business 2+ years and who do not currently offer a qualified retirement plan are currently required to comply.
Fines: Per eligible employee:
  • $20 from July 1, 2025 - June 30, 2026
  • $50 from July 1, 2025 - June 30, 2027
  • $100 starting July 1, 2027
Maryland - Maryland$aves
Type of Plan: Roth IRA
Deadlines: Employers with 1+ employees who have been in business 2+ years, pays employees through an automated payroll system and who do not currently offer a qualified retirement plan are currently required to comply.
Fines: The program does not currently provide for penalties for non-compliance. However, participating employers receive a waiver of the $300 required annual report filing fee.
Massachusetts - Massachusetts CORE Plan
Type of Plan: Multiple Employer Plan (MEP)
Deadlines: No specific deadlines as the program is voluntary.
Fines: No fines.
Nevada - Nevada Employee Savings Trust Program
Type of Plan: Auto IRA
Deadlines: Employers with 6 or more employees are currently required to comply by September 1, 2025.
Fines: TBD
New Jersey - RetireReady NJ
Type of Plan: Roth IRA
Deadlines: All existing deadlines have passed. Employers with 10 or more employees that do not already offer a retirement program are required to enroll or provide an employer-sponsored retirement plan to their employees.
Fines: After a written warning in the first year, employers are subject to these fines per employee for every year following: $100 in year 2, $250 in years 3-4, $500 in year 5+.
New York - New York Secure Choice Savings Program
Type of Plan: Roth IRA
Deadlines: Enrollment is launching in phases based on employee count:
  • 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
Fines: TBD
Oregon - OregonSaves
Type of Plan: Roth IRA
Deadlines: All Oregon businesses are currently required to comply.
Fines: Employers not in compliance with the mandate must pay a fine of $100 per affected employee, up to a maximum of $5,000 per calendar year.
Rhode Island - Rhode Island Secure Choice Retirement Savings Program
Type of Plan: Roth IRA
Deadlines: Enrollment is launching in phases:
  • Employers with more than 100 employees: within one year of the opening of the program
  • Employers with more than 50 employees: within two years of the opening of the program
  • All other employers: within three years of the opening of the program
Fines: Yes. Each eligible employer that, without good cause, fails to allow its eligible employees to participate in the program within 30 days from the date the notice of penalty was issued, shall be subject to a penalty of $250 per eligible employee.
Vermont - VT Saves
Type of Plan: IRA or Roth IRA
Deadlines: Enrollment is launching in phases:
  • Businesses with 25 or more employees: July 1, 2025
  • Businesses with 15-24 employees: January 1, 2026
  • Businesses with 5-14 employees: July 1, 2026
Fines: Yes. Below are the fees per eligible employee per year:
  • Prior to October 1, 2025: $10
  • From October 1, 2025, to September 30, 2026: $20
  • On or after October 1, 2026: $75
Virginia - RetirePath Virginia
Type of Plan: IRA or Roth IRA
Deadlines: All existing deadlines have passed as of February 2024.
Fines: Up to $200 per eligible employee per year.
Washington - Washington Saves
Type of Plan: Marketplace - multiple options, Roth IRA coming in 2027
Deadlines: No deadlines for existing marketplace. Washington Saves to replace Washington's Small Business Retirement Marketplace by July 1, 2027. Deadlines for new program unknown as this time.
Fines: For existing marketplace, no fines. For Washington Saves (coming 2027), yes. If the department finds an employer administrative violation, the department must first provide an educational letter outlining the violations and provide 90 days for the employer to remedy the violations. Then, a first-time willful violation is $100 and $250 for a second willful violation. For each subsequent willful violation, the employer is subject to a maximum penalty amount of $500 for each violation.

States with passed legislation

Hawaii - Hawaii Retirement Savings Program
Type of Plan: Roth IRA
Deadlines: Currently unknown. The program has yet to be implemented.
Fines: Yes. Noncompliant employers will receive a penalty of no less than $500 for each violation or failure; provided that the penalties shall not exceed $5,000 per calendar year.
Minnesota - Minnesota Secure Choice Retirement Program
Type of Plan: IRA or Roth IRA
Deadlines: The Minnesota Secure Choice retirement program will begin operation in the 1st quarter of 2026.
Fines: Written warnings provided for the first year of noncompliance. Then, other unspecified penalties may be assessed.
Missouri - MyRetirement Savings
Type of Plan: Open multiple-employer plan (MEP)
Deadlines: Expected to be operational on or before September 1, 2025.
Fines: TBD
New Mexico - New Mexico Work & Save and New Mexico Marketplace
Type of Plan: Roth IRA & Marketplace
Deadlines: The program is currently on an indefinite hold.
Fines: Penalties for the New Mexico Work & Save Roth IRA program have not been determined yet. Because the New Mexico Marketplace will be voluntary, there will not be any penalties associated with enrollment or lack thereof.

Retirement Legislation

State mandate legislation is sweeping the country

More than 20 states have proposed state-mandated retirement plan legislation, and 16 states have active mandated plans.

Read about state laws

What are state mandated retirement plans?

What are state mandated retirement plans?

State mandate overview

These programs require employers to provide access to retirement savings options. Employers may enroll their employees in a state-sponsored retirement program—or choose an employer-sponsored plan, such as a Human Interest 401(k) plan. Our 401(k) plans provide a flexible alternative to state-mandated options, ensuring your employees have robust retirement savings opportunities tailored to their needs.

Traits of a typical state program

Limited plan structure

State plans often use Roth IRAs and auto-enroll employees at 3-5% of wages, with opt-out options.

Lower contribution limits

IRA: $7,500/year (under 50), $8,600 (over 50). 401(k): 24,500/year (under 50), $32,500/year (50-59 or 64+), $35,740 (60-63).

Employer roles and fees

Employers aren't required to contribute. Participant fees range from 0.5% to 1% annually.

Portability and management

Accounts are portable, and professional firms manage investment options and compliance.

Investment Options

State plans offer a limited range of investment options, typically including target-date funds, balanced funds, and conservative choices like money market or stable value funds.

Penalties for non-compliance

Employers who fail to comply with state mandates may face annual fines per eligible employee.

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State mandated retirement plans FAQ