Retirement Plan
California’s Mandatory Retirement Plan: What You Need to Know
California now requires businesses with one or more employees (excluding owners) to offer a retirement plan. This law aims to make saving for retirement easier through automatic payroll deductions.
Here’s a summary of the key requirements and deadlines:
If your business offers a 401(k), SEP IRA, SIMPLE IRA, or another qualifying plan, you still need to register on the CalSavers website to notify them of your exemption. CalSavers is only mandatory for businesses without an existing plan.
Important Note: There are no employer fees or contributions required for CalSavers.
Visit CalSavers.com or call 855-650-6916 to:
If you need help navigating this process, contact us today.
The information provided in this blog post is for general informational purposes only and is not intended as legal advice. Every business and financial situation is unique, and the strategies discussed may not be applicable to your specific circumstances.
For personalized guidance, please schedule a consultation appointment with a Principal at Bernstein Financial Services to help you determine your optimal planning strategies.
Here’s a summary of the key requirements and deadlines:
Compliance Deadlines
- 5+ Employees: If you haven’t registered, you’re out of compliance and must do so immediately.
- 1-4 Employees: Register by December 31, 2025.
Already Have a Retirement Plan?
If your business offers a 401(k), SEP IRA, SIMPLE IRA, or another qualifying plan, you still need to register on the CalSavers website to notify them of your exemption. CalSavers is only mandatory for businesses without an existing plan.
Important Note: There are no employer fees or contributions required for CalSavers.
About CalSavers
- Employer Responsibilities: Register with CalSavers and upload your employee roster within 30 days.
- CalSavers will handle communication with employees about enrollment.
- Employee Participation: Employees aged 18 or older are automatically enrolled unless they opt out. Initial contributions are set at 5% of pay and gradually increase to 8%. Employees select investment options through CalSavers and can opt out at any time.
Penalties for Non-Compliance
- $250 per employee if you’re 90+ days past the notice to register.
- $500 per employee if you’re 180+ days past the notice to register.
Next Steps
Visit CalSavers.com or call 855-650-6916 to:
- Request an exemption if you already have a qualifying plan.
- Sign up for the CalSavers plan if needed.
If you need help navigating this process, contact us today.
The information provided in this blog post is for general informational purposes only and is not intended as legal advice. Every business and financial situation is unique, and the strategies discussed may not be applicable to your specific circumstances.
For personalized guidance, please schedule a consultation appointment with a Principal at Bernstein Financial Services to help you determine your optimal planning strategies.
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