Are you ready for state retirement mandates?

Many states are now requiring employers to offer retirement savings options to their employees. Is your state one of them?

When a state retirement mandate is in place, an employer in that state is generally required to enroll in the state-administered program or offer a qualifying workplace retirement plan of their choice. With new state retirement mandates passing every year, ePlan Services is helping businesses and financial advisors stay informed of state requirements.

Have questions or want to discuss opening a plan? Our team is here to help.

Learn about your state’s retirement mandate

Click a state on the map or select it from the dropdown to review the state’s requirements.

Program Status

Active

Proposed, in-development, or postponed

No legislation

ePlan Services 401(k) vs State Mandated Retirement Plans

See how state mandated retirement plans measure up to an ePlan Services 401(k).

ePlan Services 401(k)

State IRA

Employer Tax Credits

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

Employer Match

Yes

Matching is not permitted

Plan Management Tools

Yes

The state manages the plan solely

Flexible Investment Options

Yes

Restricted options

Employee Contribution Limit

$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+)

Financial advisors: Help your clients stay compliant

As states continue to pass retirement mandates, the demand for compliant retirement plans will increase. Partnering with ePlan Services can help you build your book of business and maintain trust with your clients through these policy changes.

State mandate FAQs

Are there penalties for not complying with a state’s retirement requirements?

Yes, there are generally penalties for not complying with a state’s retirement mandate. The specific penalties vary by state, so be sure to check your or your client’s state requirements.

For example, in the state of Illinois, if you do not enroll in Illinois Secure Choice or make an alternate workplace retirement savings plan available, the penalty is $250 per employee for the first year of failure, and $500 per employee in each subsequent year.

Does my or my client’s business need to offer my state’s retirement savings program?

No, businesses do not need to offer the state’s retirement savings program. In states with retirement mandates, a business needs to either enroll in the state’s retirement program or offer a qualifying private workplace alternative (like an ePlan Services 401(k)).

My state does not have a retirement mandate. Do I need to take action?

If you are a business owner or financial advisor in a state without a state mandated retirement program, no action is required at this time. However, it’s important to stay up to date on proposed legislation. If you’d like to stay ahead of any future mandates by offering a 401(k) plan, reach out to our team.

What are the main benefits of offering a 401(k) plan over a state IRA?

401(k) plans allow for higher contribution limits and the opportunity for tax credits, as well as perks like employer contribution opportunities and flexible investment options.

What if you or your client already offer a retirement plan?

That’s great! You’ll likely have to tell your state that you’re covered.

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