California CalSavers Retirement – Employer Requirements
State law requires that California employers who don’t already offer an employer-sponsored retirement plan and who have five or more employees, either sponsor a retirement plan or participate in CalSavers. The three-year phased rollout includes staggered deadlines for registration based on employer size. All eligible employers are encouraged to join at any time prior to their registration deadline or register their exemption.
| · More than 100 employees – Deadline: September 30, 2020 |
| · More than 50 employees – Deadline: June 30, 2021 |
| · More than 5 employees – Deadline: June 30, 2022 |
If you have at least five California-based employees, at least one of whom is age eighteen, and don’t sponsor a qualified retirement plan, your business is required to register for CalSavers by your deadline date.
Qualified retirement plans include:
- 403(a) – Qualified Annuity Plan or 403(b) Tax-Sheltered Annuity Plan
- 408(k) – Simplified Employee Pension (SEP) plans
- 408(p) – Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA Plan
- 401(a) – Qualified Plan (including profit-sharing plans and defined benefit plans)
- 401(k) plans (including multiple employer plans or pooled employer plans)
- Payroll deduction IRAs with automatic enrollment
For additional information about the CalSavers Program or Employer Retirement Plan Requirements, you can go directly to their website at: https://www.calsavers.com/
