Retirement Plans for California Employers

The June 30, 2022 deadline for employers to implement a retirement plan for their employees is rapidly approaching! California state law requires California employers with 5 or more employees to either sponsor a qualified retirement plan, or participate in the state sponsored CalSavers program. Employers can implement a plan with a private market broker, or sign up with CalSavers to offer the auto IRA program.

Qualified retirement plans include:

• 401(a) – Qualified Plan

• 401(k) plans

• 403(a) – Qualified Annuity Plan or 401(b) Tax-Sheltered Annuity Plan

• 408(k) SEP – Simplified Employee Pension plans

• 408(p) Simple IRA– Savings Incentive Match Plan for Employees of Small Employers

• IRA with automatic enrollment for payroll deduction

If you already offer a retirement plan, be sure to file an exemption on the CalSavers site. If you’d like a referral to a broker to help you with this, let us know, we have great partners we can introduce you to!