Active mandate
CalSavers
CalSavers applies to California employers with one or more eligible employees that do not sponsor a qualified retirement plan. All phased deadlines have passed; mandate status is now reassessed each spring, and newly covered employers must register or file their exemption by December 31 of that year.
The Program
CalSavers is California's state-run automatic-enrollment Roth IRA program and the largest state retirement mandate in the country. It applies to employers with one or more eligible employees that do not sponsor a qualified retirement plan. The original phased rollout is complete — the final tier for employers with one to four employees closed on December 31, 2025.
Compliance is now an annual cycle rather than a one-time event. Each spring, the state reassesses mandate status using prior-year payroll data reported to the EDD (DE9C filings). Employers identified as newly mandated receive a December 31 registration deadline for that year — the 2026 cohort must register or file an exemption by December 31, 2026. A business that was below the threshold last year can become covered this year, so California employers should confirm their status annually.
Importantly, sponsoring a 401(k) or other qualified plan does not by itself close the loop: the exemption must be registered through the CalSavers employer portal. Owner-only businesses, government entities, and religious and tribal organizations are exempt, and controlled-group rules apply under IRC §414(b)/(c).
Enrolled employees are placed in a Roth IRA at a 5% default contribution rate with automatic escalation. Employers facilitate payroll deductions but do not contribute — one reason many California businesses instead adopt an employer-sponsored plan, where matching contributions, higher limits, and plan-design flexibility are available.
At A Glance
All phased tiers have passed (final 1–4 employee tier: December 31, 2025). Mandate status is reassessed each spring from prior-year EDD DE9C filings; newly mandated employers must register or file their exemption by December 31 of that year — the 2026 cohort's deadline is December 31, 2026.
Employers with 1 or more eligible employees that do not sponsor a qualified retirement plan. Mandate status is reassessed each spring from prior-year payroll data reported to the EDD.
Per Gov. Code §100033(b): $250 per eligible employee if non-compliance extends 90+ days after service of notice, and an additional $500 per eligible employee at 180+ days. Penalties recur annually for continued non-compliance. The Franchise Tax Board handles collection.
The Requirements
Register with CalSavers (or formally register an exemption through the CalSavers portal) by the assigned deadline, then facilitate payroll deductions for enrolled employees. Having a qualified plan alone is not enough — the exemption itself must be registered.
Eligible employees are enrolled automatically unless they opt out; enrollment is administered through the CalSavers program. Additional program guidance is available from the official CalSavers employer resources.
Employers sponsoring a qualified plan (401(k), 403(b), SEP, SIMPLE, pension) — but the exemption must be registered through the CalSavers portal. Also exempt: owner-only businesses, government entities, religious and tribal organizations. Controlled-group rules apply per IRC §414(b)/(c).
Per Gov. Code §100033(b): $250 per eligible employee if non-compliance extends 90+ days after service of notice, and an additional $500 per eligible employee at 180+ days. Penalties recur annually for continued non-compliance. The Franchise Tax Board handles collection.
Your Options
Sponsoring a qualified retirement plan — a 401(k), Safe Harbor 401(k), 403(b), SEP, SIMPLE, or pension — satisfies the CalSavers mandate, provided the exemption is registered through the CalSavers portal. Employer-sponsored plans allow matching contributions and higher limits that the state Roth IRA cannot offer.
Design a plan around your workforce — matching, Roth options, vesting, and federal startup tax credits.
Start a new planConfirm your current plan qualifies, then tune its design so the mandate works in your favor.
Upgrade my company’s planLRS handles compliance testing, filings, and day-to-day administration so the plan stays qualified.
Plan administration servicesRead more about state-approved qualifying retirement plans.
Common Questions
California employers with one or more eligible employees that do not sponsor a qualified retirement plan. The state reassesses mandate status each spring using prior-year payroll data reported to the EDD, so a business can become newly covered in any year.
Employers newly mandated in the 2026 assessment cycle must register u2014 or register their exemption u2014 by December 31, 2026. All of the original phased tiers, including the final one-to-four-employee tier, closed by December 31, 2025.
No. A qualified plan makes you eligible for the exemption, but the exemption must be registered through the CalSavers employer portal. Having the plan without filing the exemption leaves you out of compliance.
Under Gov. Code u00a7100033(b), non-compliance running 90 or more days after service of notice brings a $250 penalty per eligible employee, with an additional $500 per employee at 180 or more days. Penalties recur annually and are collected by the Franchise Tax Board.
Yes. Any qualified plan u2014 401(k), Safe Harbor, 403(b), SEP, SIMPLE, or pension u2014 satisfies the mandate once the exemption is registered. Employer-sponsored plans also allow matching contributions and higher savings limits than the state Roth IRA.
Talk It Through
Leading Retirement Solutions designs and administers plans that satisfy state mandates. Talk through your requirements with a consultant before your deadline.
This page is provided for general information only and is not legal or tax advice. Program details change; confirm requirements with the official state program or your advisors.