401(k) Program FAQ.
The most common questions we hear from members evaluating the plan.
The state of California has already mandated that any business that employs 5 or more eligible employees must have a retirement plan in place. By the end of 2025, that will change to 1 or more eligible employees beyond the CEO. If you are unable to sponsor a plan, you will be required to participate in CalSavers or face fines.
CalSavers, formerly Secure Choice, is the state-operated retirement savings plan. Compared to other retirement plans, CalSavers offers fewer investment options and the maximum amount that employees can contribute per year is far less. CalSavers is a Roth IRA, which means it has income limits. Employees don't receive a tax benefit for their savings in the year they make contributions, and there is no employer matching or profit sharing. Additionally, employees may also be charged investment fees and state and administrative fees.