Guide to Secure Choice Retirement Programs

With an epidemic of Americans being underprepared to provide financially for their twilight years, more and more states are mandating that businesses offer a retirement plan to their employees.

Many of these states have established Roth IRA programs for those businesses that either don’t want or can’t afford to offer a private retirement plan.

But with private plans for small businesses being much easier to administer and more affordable than ever before, many companies are turning to fintech options like 401GO to give their employees a truly beneficial experience.

Get the details about individual state secure choice retirement mandates below.

State	Notes
Delaware	Legislation signed, launch date not yet established.
Hawaii	Legislation signed. Expected to launch July 2024.
Massachusetts	Active, voluntary MEP for non-profits only.
Minnesota	Legislation signed, launch date expected in 2024 or 2025.
Missouri	Voluntary MEP, expected launch by September 2025.
New Jersey	Legislation signed, launch date not yet established.
New Mexico	Currently voluntary. Planning to partner with Colorado, expected to launch July 2024. (Will still be voluntary.)
Pennsylvania	Legislation signed, expected to launch 2025.
Vermont	Voluntary MEP designed for businesses with 50 or less employees. Vermont Saves rolling out to all businesses starting 2025.
Washington	Voluntary marketplace with multiple types of low-cost IRA and 401(k) plans, for companies with 100 or less employees.

Download the free guide to secure choice retirement plans.

With secure choice plans being offered in more and more states, it’s important for businesses to understand enough details to make an informed decision. Retirement plan decisions can have far-reaching consequences for both employer and employee.

State mandated plans are typically Roth IRAs, which have different rules and regulations than 401(k) plans. Plan designs and mandates vary from state to state, but most have some basic similarities that will help you make a smart choice.

This guide will help you know what to consider when choosing a retirement benefit.

More Reading About Secure Choice Retirement Programs & Alternatives

An epidemic of under-preparedness for retirement is growing in the United States, while confidence in Social Security is shrinking. States are responding with legislation that requires businesses to offer a work-sponsored retirement program to their employees, either a private plan — such as a 401(k) — or the state-provided plan, often a Roth IRA.

While a Roth IRA can be a beneficial tool for retirement saving, these broad scale programs are far from ideal. Program details vary from state to state, so it’s wise to read the fine print.

In these articles, we discuss program details, pros and cons, and consider alternatives.