top of page

Employer State Mandated
Retirement Plans

Many states have passed legislation that require employers 

to provide access to retirement plans to their employees or face financial penalties.

 

Employers can choose the State offered plan

or consider other options; like the one that is right for your business. 

 

This doesn't have to be complicated. I will be with you every step of the way.

You don't have to wait for your state to mandate a plan. You can put one in place for your employees today.

*For state sponsored plans, see your respective state.

my states pic.png

Map updated 1/2023

Which plan is right for your business?

Payroll Deducted IRA

for the business owner...

  • Who wants to offer employees a retirement plan, without an employer match.

  • Who needs a low administrative cost plan without government filing or annual reporting requirements.

  • Who lives in a state that is or will be mandating auto-enroll IRAs for all private sector employees.

 

Plan basics

  • Employees make all the contributions by payroll deductions. There are no employer matching contributions.

  • Employees are 100 percent vested; the IRA belongs to the employee.

  • Low administrative costs and no filings with the government to establish the program or any annual reports.

Simple IRA

for the business owner...

  • Who is looking for more tax savings opportunities for their business.

  • Who wants to offer a pre-tax retirement savings plan for employees.

  • Who wants to attract and retain employees.

  • Who lives in a state that is or will be mandating auto-enroll IRAs for all private sector employees.

 

Plan basics

  • Plan is primarily funded by elected pre-tax employee contributions.

  • Employers are required to make contributions:

    • Flat 2% for all eligible employees, or

    • Dollar-for-dollar match of up to 3% for contributing employees.

  • Policies are owned by the employees; contributions are immediately vested.

SEP IRA

for the business owner...

  • Who owns a business with few (or no) employees.

  • Who wants to attract and retain employees.

  • Who needs a significant tax deduction for the business.

  • Who lives in a state that is or will be mandating auto-enroll IRAs for all private sector employees.

 

Plan basics

  • Plan is solely funded by business owner, no employee contributions.

  • Contributions are not required every year but must be the same percentage of pay for all employees, including the owner(s).

  • Policies are owned by the employees; contributions are immediately vested.

bottom of page