Many states are looking to remedy this by providing a state-sponsored IRA savings plan to small businesses. Currently, ten states have enacted legislation or launched pilot programs, while others have legislation pending [2]<\/a>. There is also talk on Capitol Hill about federally mandating retirement plans for businesses with 10 or more employees.<\/p>\n\n\n\n <\/p>\n\n\n\n The goal of state-sponsored retirement plans is to fill unmet gaps in coverage by offering simple, low-cost retirement savings plans to employees. While you don\u2019t have to participate in a state-run program, many states are mandating by law that businesses offer some type of retirement plan. Businesses can opt to create their own private-sector plans through a professional retirement services provider.<\/p>\n\n\n\n <\/p>\n\n\n\n State-sponsored retirement programs:<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n State-run IRA plans have limits on employee contributions, and companies aren\u2019t allowed to make employer contributions. The employer is also typically responsible for administration and remitting employee contributions.<\/p>\n\n\n\n With an ePlan Services 401(k), employees can make larger contributions than state-run programs, and employers may also make profit sharing or matching contributions at their discretion. ePlan Services plans satisfy the state mandate and offer eligible employers potential tax benefits, such as those defined by the federal Setting Every Community Up for Retirement Enhancement (SECURE) Act.<\/p>\n\n\n\n <\/p>\n\n\n\n SECURE Act benefits include:<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n Also, with a state run IRA, you are responsible for administration and processing. With features like online compliance testing, 5500 filing and preparation, and payroll integration, ePlan Services can simplify the administration of your 401(k) plan.<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n California is providing a state-sponsored IRA savings plan to small businesses. The goal is to fill unmet gaps in coverage by offering simple, low-cost retirement savings plans to employees.<\/p>\n\n\n\n Sponsored by the state, the CalSavers retirement savings plan is facilitated by employers and funded by employee investments via payroll deductions.<\/p>\n\n\n\n <\/p>\n\n\n\n The CalSavers program:<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n Do businesses have to use CalSavers?<\/strong><\/p>\n\n\n\n No. Businesses can establish their own plan, such as a 401(k) retirement plan or a SIMPLE IRA, to satisfy the state requirement. They can also go through a retirement services provider like ePlan Services. Whatever they choose, businesses must establish a retirement plan or register with CalSavers before the end of their enrollment period:<\/p>\n\n\n\n Recent California legislation expanded the CalSavers mandate to businesses with at least one employee.<\/p>\n\n\n\n Illinois is providing a state-sponsored retirement plan to businesses with 25 or more employees. The goal is to fill unmet gaps in coverage by offering simple, low-cost retirement savings plans to employees.<\/p>\n\n\n\n <\/p>\n\n\n\n What is Illinois Secure Choice?<\/strong><\/p>\n\n\n\n Sponsored by the state, the Illinois Secure Choice retirement savings plan is facilitated by employers and funded by payroll deductions into retirement investments.<\/p>\n\n\n\n <\/p>\n\n\n\n The Illinois Secure Choice program:<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n Do businesses have to use Illinois Secure Choice?<\/strong><\/p>\n\n\n\n No. Businesses can establish their own plan, such as a 401(k) retirement plan or a SIMPLE IRA, to satisfy the state requirement. They can also go through a retirement services provider like ePlan Services. Whatever they choose, businesses with 25 or more employees must establish a retirement plan.<\/p>\n\n\n\n <\/p>\n\n\n\n Oregon is providing a state-sponsored retirement plan to businesses. The goal is to fill unmet gaps in coverage by offering simple, low-cost retirement savings plans to employees.<\/p>\n\n\n\n <\/p>\n\n\n\n What is OregonSaves?<\/strong><\/p>\n\n\n\n Sponsored by the state of Oregon, this retirement savings plan is facilitated by employers and funded by employee payroll deductions into retirement investments.<\/p>\n\n\n\n <\/p>\n\n\n\n The OregonSaves program:<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n Do businesses have to use OregonSaves?<\/strong><\/p>\n\n\n\n No. Businesses can establish their own plan, such as a 401(k) retirement plan or a SIMPLE IRA, to satisfy the state requirement. They can also go through a retirement services provider like ePlan Services. Whatever they choose, all Oregon businesses must establish a retirement plan before the end of their enrollment period:<\/p>\n\n\n\n Regardless of which plan you choose, it can be challenging to update employee demographics, edit payroll lists, and submit contributions.<\/p>\n\n\n\n ePlan Services can lighten your administrative burden. Our experts can work with you to determine which of the many plans we offer will best fit the needs of your business and employees. We can integrate your 401(k) with any of our payroll partners to simplify employee setup and payroll processing of your plan.<\/p>\n\n\n\n We also assist with eligibility, compliance testing, and help ensure documents are provided in a timely manner.<\/p>\n\n\n\n <\/p>\n\n\n\nWhat is a state-sponsored retirement plan?<\/h2>\n\n\n\n
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State-run IRA or 401(k) \u2014 what\u2019s the difference?<\/h2>\n\n\n\n
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![\"State-run](\"\/blog\/wp-content\/uploads\/2021\/03\/ePlan-Marketing-Blog-StateGraphic@2x.png\")
<\/figure><\/figure>\n\n\n\nState Specific Retirement Plans<\/h2>\n\n\n\n
California<\/h2>\n\n\n\n
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Illinois<\/h2>\n\n\n\n
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Oregon<\/h2>\n\n\n\n
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Plan administration? ePlan Services has you covered.<\/h2>\n\n\n\n