There's a much better alternative to the New York Secure Choice Savings Program.

Look closely at the details and compare them to a 401(k) plan from 401GO.

New York SCSP alternative

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. 

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    401GO is an automated 401(k) solution that simplifies plan administration and day-to-day management for small businesses. We offer a fast 15-minute setup, financial wellness tools for employees, and best-in-industry customer support. Find out why the customers who use us stay! 

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