This article is for admins who need to comply with state retirement savings mandates.
More states now require employers to offer workers a way to save for retirement. Many programs use automatic enrollment to help people—especially low- and moderate-income workers—build savings. We help you stay compliant by supporting both state auto-IRA programs and 401(k) plans.
Review these items so you set up the right option.
Check your state’s rules and deadlines.
Requirements vary by state and employer size. Always review your state’s retirement regulations or contact your state program for final guidance.
Confirm tax treatment.
Many state auto-IRAs use post-tax (Roth) contributions. Confirm the tax treatment with your state program.
Decide your path.
You can use a state auto-IRA or a compliant 401(k).
Use this option if your state mandates an auto-IRA.
You either add a post-tax deduction in payroll based on your state’s rules or, if supported, connect your auto-IRA provider to Gusto.
Use this option if you prefer a 401(k) that meets your state’s exemption criteria.
You can set up a Gusto 401(k) powered by Guideline. You can also set up manual 401(k) deductions in Gusto or offer retirement benefits through Betterment, Human Interest, or Vestwell.
Contact partners directly for details on supported state programs and plan design.
The table below gives you a quick breakdown of current state programs and resources where you can learn more about them.
Last updated July 2, 2025
State
Plan name and website
Program requirement
Employers with...
Additional info
California
1 or more employees
Colorado
Colorado Secure Savings Program
5 or more employees
Connecticut
5 or more employees
Delaware
5 or more employees
Hawaii
Hawaii's Retirement Savings Program
1 or more employees
HRSP phone: (808) 586-8846
Illinois
5 or more employees
Maine
Maine Retirement Investment Trust
1 employee or more
Maryland
5 or more employees
Massachusetts
Massachusetts Retirement Savings Plan
Office of Economic Empowerment
501(c) organizations with 20 or fewer employees
Minnesota
Minnesota Secure Choice Retirement Program
5 or more employees
Missouri
Show-Me MyRetirement Savings Plan
This is a 401(k) Multiple EmployerPlan (MEP)
50 or fewer employees
Nevada
Nevada Employee Savings Trust (NEST)
More than 5 employees
New Jersey
25 or more employees
New York
New York State Secure Choice Savings Program
10 or more employees
Oregon
1 or more employees
Rhode Island
5 or more employees: Required if no existing and qualifying retirement plan.
Fewer than 5 employees:
Optional.
Vermont
5 or more employees
Virginia
25 or more employees
Washington*
*Due to launch on July 1, 2027, but could be phased in
Employees need to have worked a combined minimum of 10,400 hours during the previous calendar year
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 cannot join California’s CalSavers plan).
To meet all state rules, employers can offer a Gusto 401(k) powered by Guideline.
Q: Who counts as an “employee”? Only full-time or W-2 workers?
A: Double-check your state’s program. Most states require employers to offer a plan to all W-2 employees. Virginia is the only state that excludes part-time employees (working fewer than 30 hours/week). The mandates do not include 1099 contractors.
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 has not launched yet, you usually have two 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 you fund with after-tax contributions. Contribution limits update annually.
Roth IRAs do not allow employer contributions.
Roth IRAs have lower contribution limits than 401(k)s. In 2026, the Roth IRA limit is $7,500. The standard 401(k) limit for 2026 is $24,500.
Employees are responsible for checking their eligibility after enrolling.