Retirement savings mandates by state

More and more states are requiring employers to offer retirement savings plans. These rules aim to help workers save for the future, especially low-and moderate-income workers without access to traditional plans.

By promoting automatic enrollment, states hope to make saving easier and boost financial security.

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Learn more about state regulations below—when you're ready, integrate your state's auto-IRA program with Gusto. Go to a different article to learn how to set up a 401(k) in Gusto.

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Retirement savings regulations by state

The table below gives you a quick breakdown of current state programs, and resources where you can learn more about them.

Last updated Mar 27, 2025

State	Plan name and website	Program requirement Employers with...	Additional info
California	CalSavers	1 or more employees	Employer FAQs
Colorado	Colorado Secure Savings Program	5 or more employees	Employer FAQs
Connecticut	MyCTSavings	5 to 25 employees	Employer resources and portal help center
Delaware	Delaware EARNS	50 or more employees	Employer resources and portal help center
Hawaii	Hawaii's Retirement Savings Program	1 or more employees	HRSP phone: (808) 586-8846
Illinois	Illinois Secure Choice	25 or more employees	Employer overview Materials for employers
Maine	Maine Retirement Investment Trust	5 or more employees	Employer overview Employer resources
Maryland	MarylandSaves	5 or more employees	Employer overview Employer resources
Massachusetts	Massachusetts Retirement Savings Plan Office of Economic Empowerment	6 or more employees
New Jersey	RetireReady NJ	25 or more employees	Employer overview FAQs and portal help
New York* *Upcoming, but not in effect yet	New York State Secure Choice Savings Program	10 or more employees	Get email updates about the program
Oregon	OregonSaves	1 or more employees	Employer overview Program details Other resources
Virginia	RetirePath Virginia	25 or more employees	Employer FAQs
Washington	Washington Cares Fund	5 or more employees	Gusto handles this in payroll Employer information

FAQs

Q: How do mandates apply to companies with employees in multiple states?

A: A few things to consider:

Employers must enroll employees in a retirement plan if they live in a state with a mandate and meet the size requirement.
Out-of-state employees cannot join another state’s plan (e.g., Oregon employees can’t join California’s CALSavers plan).
To meet all state rules, employers can offer a 401k plan through providers like Guideline.

Q: Who counts as an "employee"? Only full-time or W-2 workers?

A: Double-check your state's program.

Most states require all W-2 employees to be offered a plan. Virginia is the only state that excludes part-time employees (working fewer than 30 hours/week).
1099 contractors are not included in the mandates.

Q: I just started my business. When do I need to follow the rules?

A: It depends—check your state’s program for details.

If your state’s plan hasn’t launched yet, you usually have 2 years before the rules apply.
If the plan is already active and the deadline for your company size has passed, you usually have until the end of the next calendar year to comply.

Q: What if I hire more employees during the year? When do I need to comply?

A: If you add enough employees to meet the mandate, you typically have until the end of the next calendar year to follow the rules. Check your state’s plan for specifics.

Q: What type of retirement plans do states offer?

A: Most state plans are Roth IRAs, which are funded with after-tax contributions. Contribution limits update annually.

No employer contributions are allowed for Roth IRAs.
Roth IRAs have lower limits than 401ks ($7,000 vs. $24,000 in 2024).
Employees are responsible for checking if they qualify after enrolling.