States and Municipalities with Mandated 401(k) & Retirement Plans

State-required retirement programs are becoming increasingly common. Across the country, lawmakers are rolling out rules that require employers to either offer a retirement plan, like a 401(k), or enroll employees in the state’s Roth IRA program.

These programs are designed to help close the retirement savings gap, but for business owners, they also create another layer of compliance to keep track of. If you’re already juggling hiring, onboarding, payroll, and day-to-day operations, the details can feel overwhelming.

The good news? Most of these programs are straightforward once you understand the basics, and they typically don’t cost employers money. Below is a simple breakdown of what the rules look like and which states have active or upcoming mandates.

How State-Mandated Retirement Programs Work

While every state’s program has its own nuances, most of them follow a similar framework:

• They’re state-facilitated Roth IRA programs, not employer-funded plans.
• Employers must automatically enroll eligible employees unless the employee opts out.
• Employers don’t contribute: these plans are funded entirely by employees.
• Employers must either
  (1) register for the state plan, or
  (2) certify they already offer a qualified retirement plan (like a 401(k)).

Where employers feel the biggest impact is on the administrative side, payroll deductions, employee uploads, ongoing roster maintenance, and meeting the state-specific deadlines.

States with Active or Upcoming Mandated Retirement Plans

Each state name links directly to the official program page.

California — CalSavers

• CalSavers is a state-facilitated Roth IRA designed for employees who don’t have access to a workplace plan.
• Employers must register or certify an exemption once they have one or more employees, and deadlines have been rolling out by size. CalSavers handles employee enrollment and investment options, and employers only manage payroll deductions
• [Learn more about CalSavers]

Colorado — Colorado SecureSavings

• Colorado SecureSavings requires employers with 5+ employees, in business for at least two years, to enroll eligible workers in a Roth IRA program if they don’t offer their own retirement plan. Contributions are auto-deducted, and employees may opt out or adjust their rate.
• [Colorado SecureSavings Program]

Connecticut — MyCTSavings

• MyCTSavings applies to employers with five or more employees earning over $5,000 per year. This Roth IRA program uses automatic enrollment to help employees save, with simple employer requirements focused entirely on payroll deduction and reporting.
• [MyCTSavings]

Delaware — EARNS (Starting 2025)

• Delaware EARNS (Expanding Access for Retirement and Necessary Savings) launches in 2025 and provides a Roth IRA for workers at employers with 5+ employees that have operated in the state for at least six months.
• [Delaware EARNS]

Hawaii — Hawai‘i Retirement Savings Program

• Hawai‘i’s program provides a state-facilitated Roth IRA. Employers with one or more employees and two years in business must enroll their workers unless they already offer a retirement plan.
• [Hawaii Retirement Savings Program]

Illinois — Secure Choice

• Illinois Secure Choice is a statewide Roth IRA mandate for employers with 5+ employees in business for at least two years. Once registered, employers must send employee contribution information through payroll, but do not contribute themselves.
• [Illinois Secure Choice]

Maine — Maine Retirement Savings Program

• Employers with 5+ employees that haven’t offered a retirement plan in the last two calendar years must participate. The program offers a Roth IRA with automatic enrollment, and employers simply remit contributions through payroll.
• [Maine Retirement Savings Program]

Maryland — MarylandSaves

• MarylandSaves requires employers with 1+ W-2 employees, in business for at least two years, and using an automated payroll system to participate unless they provide their own plan. Employers that comply receive a waiver of the state’s $300 annual report filing fee, a unique incentive.
• [MarylandSaves]

Massachusetts — CORE (Nonprofits Only)

• CORE is a voluntary post-tax 401(k) program specifically for nonprofits with up to 100 employees. This is not a mandate but provides access to a low-cost plan for eligible organizations.
• [Massachusetts CORE Program]

Minnesota — Secure Choice (Launching 2026)

• Minnesota’s upcoming Secure Choice program will offer both pre-tax and Roth IRA options—one of the few states allowing either. It applies to employers with 1+ employees and at least one year of operating in the state.
• [Minnesota Secure Choice]

Missouri — Workplace Retirement Savings Plan (Voluntary)

• Missouri’s program is not mandatory but allows employers to join a voluntary, multi-employer retirement plan, making plan access simpler for small businesses.
• [Missouri House Bill Summary]

Nevada — Nevada Employee Savings Trust (Starting 2025)

• Starting July 2025, employers with 5+ employees that have been operating for 36 months or more must participate unless they sponsor a qualified plan. This program offers a typical state-facilitated IRA with automatic enrollment.
• [Nevada Employee Savings Trust]

New Jersey — Secure Choice

• New Jersey requires employers with 25+ employees, operating for two years or longer, to enroll workers in the Roth IRA-based Secure Choice program unless they provide their own qualified plan.
• [New Jersey Secure Choice]

New Mexico — Work & $ave (Voluntary)

• Work & $ave is a voluntary Roth IRA program aimed at improving retirement access, especially for very small employers. No employer is required to participate.
• [New Mexico Work & $ave]

New York — Secure Choice

• New York State Secure Choice requires employers with 10+ employees, in business for two years, and lacking a qualified retirement plan to enroll workers in a Roth IRA program.
• [New York Secure Choice Savings Program]
  
  
• New York City: NYC passed its own Retirement Security for All program earlier than the state, with a lower threshold of 5+ employees whose regular duties occur in the city. While implementation has largely shifted to the state program, NYC employers should assume the 5-employee rule still matters and comply through the state platform.

Oregon — OregonSaves

• OregonSaves was the nation’s first mandated state retirement program and remains one of the most robust. It applies to all employers, regardless of size, who do not offer a retirement plan. Contributions are directed to a Roth IRA, and employers simply manage deduction flows.
• [OregonSaves]

Pennsylvania — NO MANDATE 

• Philadelphia - NOTE: Philadelphia has introduced legislation to create a city-run auto-IRA program, but the bill has not been passed or enacted as of now. Employers should be aware of the proposal, but they do not have compliance obligations at this time.

Rhode Island — Secure Choice (2024)

• Rhode Island uses a phased rollout:
  • 100+ employees → within 12 months
  • 50+ employees → within 24 months
  • <50 employees → within 36 months

It is a Roth IRA program with typical auto-enrollment and payroll deduction.

• [Rhode Island Secure Choice]

Vermont — VTSaves (2025–2026)

• Vermont’s program launches in stages:
  • 25+ employees: July 1, 2025
  • 15–24 employees: January 1, 2026
  • 5–14 employees: July 1, 2026

It offers a Roth IRA and requires participating employers to facilitate payroll deductions.

• [VTSaves]

Virginia — RetirePath Virginia

• RetirePath requires employers with 25+ employees, operating for at least two years, to enroll workers in a state-facilitated Roth IRA unless they sponsor a plan.
• [RetirePath Virginia]

Washington — Washington Saves (Starting 2027)

• Washington Saves begins in 2027 and applies to employers with 10,400+ total employee hours per year (combined across employees). It functions like other auto-IRA programs and fills a major coverage gap statewide.
• [Washington Saves]

Seattle: Seattle enacted a city retirement program years before the state law, but it is not active and is considered on indefinite hold now that Washington’s statewide program is launching.
Seattle employers should follow Washington Saves as their governing mandate.

States with Pending Legislation

These states are actively considering mandatory retirement bills:

• Arizona
• Ohio
• Wyoming

With new bills introduced every year, it’s likely this list will continue to grow.

What Employers Should Do Now

Even if your state’s deadline is still a ways off, a little preparation now saves headaches later. Here’s where to start:

1. Check whether your state has a mandate or pending legislation.
2. Confirm your eligibility: most requirements depend on employee count and years in business.
3. Decide which route makes more sense:
   • Register for the state IRA, or
   • Offer your own 401(k), which often provides more flexibility and stronger benefits.
4. Review your payroll setup: These programs rely heavily on accurate census data, file uploads, and automated deductions.

Being proactive protects your business from potential penalties and keeps your payroll running smoothly.

How Exact Payroll Helps

Exact Payroll helps employers understand their state’s rules and stay compliant with as little disruption as possible. If you’re unsure where your business stands, just reach out. We can provide a clear, personalized assessment and guide you through your next steps so you can stay compliant without the stress.