Here are some details you’ll need to know about the New York Secure Choice Savings Program:

• Income Limits: If employees earn too much, they are not eligible for the program. It’s also not an effective vehicle for those who are close to retirement.
• Contribution Limits: Far lower than a 401(k), Roth IRAs only allow contributions of $6,500/yr (in 2023). If an employee has an additional private IRA, they’ll need to track these limits themselves.
• Matching Funds: Employers are barred from making matching contributions to employee accounts.
• No Protection: The New York program is not subject to worker protections under ERISA, which requires fiduciary oversight, plan information to be provided to participants, and the establishment of a grievance and appeals process.
• No Tax Benefit for Employees: Since Roth IRA contributions are made post-tax, workers looking for more immediate tax benefits will not get them. By contrast, 401(k) plans offer both pre- and post-tax contributions.
• Poor Investment Options: The small selection of investments available to New York employees may not be suitable for everyone.