Connecticut’s state retirement savings program
Retirement mandates have arrived in Connecticut. Employers meeting certain requirements must offer either the state-facilitated retirement program, or a qualified alternative to their employees.Reach out to the ePlan Services team today to learn more about Connecticut’s retirement mandate and set up a plan in 24 hours.
What to know about MyCTSavings
MyCTSavings is Connecticut’s retirement savings program. Here are the basics:
- Program Status: Open for enrollment
- Employer Participation: Mandatory
- Program Type: Roth IRA
- Penalty: $500 annually (5-24 employees); $1,000 annually (25-99 employees); $1,500 annually (100+ employees)
- Employer Requirements: Employers with five or more employees who do not offer a qualified retirement plan
- State Website: MyCTSavingsopens in a new tab
ePlan Services vs. MyCTSavings
See how Connecticut’s retirement savings program measures up against an ePlan Services 401(k)
Potential for up to $5,000 start up credit and $500 automatic enrollment credit for 3 years, plus available employer contribution credit of up to $1,000 per employee
Roth IRAs do not qualify
Yes
Matching is not permitted
Yes
The state manages the plan solely
Yes
Restricted options
$24,500
+ $8,000 (age 50-59, 64+) or $11,250 (age 60-63) in catch-up contributions
$7,500
+ $1,100 in catch-up contributions (age 50+)
Meet your regional wholesaler
Quick and easy plan setup
Plan setup can be easily completed online so you can focus on helping more clients.
Higher contribution rates
401(k) retirement accounts have higher contribution limits than IRAs—putting more in your clients’ pockets down the road.
Potential tax breaks
SECURE Act offers tax credits to employers who start plans, add an auto-enrollment feature, or make contributions.
A Financial Advisor’s Guide to State-Administered Retirement Plans
Millions of private-sector workers across the United States do not have access to a retirement savings account and, to address this crisis, several states have implemented state-administered retirement plans. What does this mean for you? It means that, as a trusted financial advisor, your clients are going to need your help selecting and enrolling in a retirement plan that will suit the needs of their business.
