March 9, 2023
Why Should a Business Owner Work With you to Offer Employees a Retirement Plan?
Tax Credits, choices, no fees, and retirement planning Strategies with your guidance and support!
Several states have mandated retirement plan access for employees of small businesses to address the retirement savings gap that many employees face, this has opened NEW markets for annuity sales.
State Legislators are mandating that small business owners provide their employees with a retirement plan or enroll employees in a state-run plan. On average more than 60% of small businesses do not offer retirement benefits to their employees¹– lots of opportunities to help small business owners navigate these new state mandates.
Business owners impacted by these mandates have three choices
- Register with the state, enroll all eligible employees in the state program, set up payroll deductions for each employee, and post regular notices. Program fees vary from state to state. Employees can opt-out after being enrolled.
- Offer one of the following qualified plans and be exempt from the mandate.
- Payroll Deducted IRAs (California only)
- SEP – Simplified Employee Pension 408(k)
- SIMPLE – Savings Incentive Matching Plan for Small Employers 408(p)
- 401(a) – Qualified Plan (including profit-sharing plans and defined benefit plans)
- 401(k) plans (including multiple employer plans or pooled employer plans)
- 403(a) – Qualified Annuity Plan or 403(b) Tax-Sheltered Annuity Plan
- Ignore the mandate and face fines ranging from $100 to $500 per employee not enrolled or exempt.
Why should a business owner work with you to offer employees a retirement plan?
Tax Credits, choices, no fees, and retirement planning strategies with your guidance and support!
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California – CalSavers Retirement Savings Program
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Currently – All Employers with five (5) or more employees are required to have a retirement plan for their employees or adopt CalSavers to avoid fines.
January 1, 2023 – Employers with four (4) or fewer employees can join, the deadline is December 31, 2025
CalSavers Retirement Savings Program Info
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Colorado – Secure Savings
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March 15, 2023 – Employers with 50 or more employees
May 15, 2023 – 15 to 49 employees
June 30, 2023 – 5 to 14 employees
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Connecticut – MyCTSavings
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https://myctsavings.com/employers/program-details
Currently all employers with 26 or more employees
March 30, 2023 – 5 to 25 employees
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Illinois – Secure Choice
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Currently – All employers with 16-plus employees
November 1, 2023 – All employers with 5 to 15 employees
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Maine – Retirement Savings Program
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April 1, 2023 – Employers with 25 or more employees
October 1, 2023 – 15 to 24 employees
April 1, 2024 – 5 to 14 employees
Website not operational: Retirement Savings Program Info
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Maryland – MarylandSaves
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Currently – All qualifying employers with one (1) or more employees
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New Jersey – Secure Choice Savings
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Legislation passed, currently not operational
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New Mexico – Work and Save Act
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July 1, 2024 – Currently not operational
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Oregon – OregonSaves
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Currently all employers with five (5) or more employees
March 1, 2023 – Three (3) or more employees
July 31, 2023 – One (1) or more employees
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Virginia – RetirePathVA
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July 1, 2023 – For profit and non-profit businesses with 25 or more employees
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Want to learn more? Access the IRA Agent e-Kit here.
Contact us to learn more about this great opportunity!
RetirementServices1@nationallife.com
