State Retirement Mandates by State

Employer Compliance Resource

State Retirement Mandates by State

More than twenty states have enacted state-mandated retirement plan requirements or state-facilitated savings programs. Use the interactive map to check where your state stands, what the deadlines and penalties are, and how an employer-sponsored plan can satisfy the mandate.

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Reviewed by the LRS compliance team · Updated July 2026

The Landscape

Why state retirement mandates matter to employers

A growing number of states now require businesses without a retirement plan to enroll employees in a state-facilitated savings program — typically a Roth IRA with automatic enrollment — or to certify that they already sponsor a qualifying plan such as a 401(k).

Deadlines, employer-size thresholds, penalties, and exemption rules differ in every state, and several programs are still phasing in. This resource summarizes each state’s requirements as verified by the LRS compliance team.

Retirement plan mandates explained State-approved qualifying plans

  • It applies to employers, not just big ones Thresholds start as low as one employee in California and Oregon, and two in Vermont.
  • The rules keep moving Several states re-assess covered employers every year, so last year’s exemption may not hold.
  • A qualifying plan satisfies the mandate Sponsoring a 401(k) or similar plan exempts you — though some states require you to file for it.

Check retirement mandate requirements by state

United States state retirement mandate map Choose a state to review its retirement mandate status. The same information is available from the state selector below the map. Alaska — Legislation under consideration Alabama — Legislation under consideration Arkansas — Legislation under consideration Arizona — Legislation under consideration California — Active mandate Colorado — Active mandate Connecticut — Active mandate District of Columbia — No state program identified Delaware — Active mandate Florida — Legislation under consideration Georgia — Legislation under consideration Hawaii — Enacted — launching Iowa — Legislation under consideration Idaho — No state program identified Illinois — Active mandate Indiana — Legislation under consideration Kansas — No state program identified Kentucky — No state program identified Louisiana — No state program identified Massachusetts — Voluntary program Maryland — Active mandate Maine — Active mandate Michigan — Legislation under consideration Minnesota — Not currently enforced Missouri — Voluntary program Mississippi — Voluntary program Montana — No state program identified North Carolina — Legislation under consideration North Dakota — No state program identified Nebraska — No state program identified New Hampshire — No state program identified New Jersey — Active — deadlines phasing in New Mexico — Voluntary program Nevada — Active mandate New York — Active — deadlines phasing in Ohio — No state program identified Oklahoma — No state program identified Oregon — Active mandate Pennsylvania — Legislation under consideration Rhode Island — Active — deadlines phasing in South Carolina — Legislation under consideration South Dakota — No state program identified Tennessee — Legislation under consideration Texas — No state program identified Utah — Voluntary program Virginia — Active — deadlines phasing in Vermont — Active mandate Washington — Enacted — launching Wisconsin — Legislation under consideration West Virginia — Legislation under consideration Wyoming — No state program identified New Hampshire — No state program identified Vermont — Active mandate Massachusetts — Voluntary program Rhode Island — Active — deadlines phasing in Connecticut — Active mandate New Jersey — Active — deadlines phasing in Delaware — Active mandate Maryland — Active mandate District of Columbia — No state program identified

Select any state on the map — or use the state selector — to review its requirements.

No state selected yet

Choose a state on the map or from the selector to see its mandate status, deadlines, penalties, and qualifying alternatives.

How It Works

How state retirement mandates generally work

The programs differ in the details, but nearly all of them follow the same three-step shape.

  1. The state sets a threshold

    Most programs apply to employers above a minimum size — commonly one, five, or ten employees — that have been in business for a set period and do not already offer a qualified retirement plan.

  2. Employers register or certify exemption

    Covered employers must register with the state program by their deadline — or certify that they sponsor a qualifying plan. In several states, simply having a plan is not enough; the exemption must be filed through the program portal.

  3. Missed deadlines can bring penalties

    Penalty structures vary widely — from per-employee annual fines that escalate over time to states that currently rely on notices and outreach. Some programs have not yet announced penalty amounts.

By The Numbers

State retirement mandates at a glance

10 states with active mandates
4 states with deadlines phasing in
2 states enacted and launching
5 states with voluntary programs

Counts reflect the LRS compliance review, updated July 2026. Minnesota’s requirement exists in program materials but is not currently being enforced.

Before You Act

Employer compliance considerations

Whether the state program or an employer-sponsored plan is the better fit depends on your workforce, payroll systems, and benefits strategy.

  • Confirm you are actually covered

    Employee count, tenure, and payroll setup all factor in — and thresholds are measured differently from state to state.

  • Multi-state means multi-deadline

    Employers with staff in several states may be covered by several programs at once, each with its own deadline and exemption filing.

  • An exemption often must be filed

    Sponsoring a qualified plan generally exempts you — but several states require that exemption to be registered or re-certified through their portal.

  • State IRAs cannot take employer money

    Auto-IRA programs do not allow employer contributions. An employer-sponsored plan can offer matching, higher limits, and design flexibility.

  • Coverage is re-assessed annually

    Several programs re-check covered employers every year, so a business that was exempt last year can become covered this year.

  • Not sure your plan qualifies?

    Our plan administration team can review your current setup against the states you operate in.

    Plan administration services

Your Options

Qualifying employer-sponsored alternatives

In every mandate state reviewed by LRS, employers that sponsor a qualified retirement plan satisfy the requirement instead of enrolling in the state program.

401(k) plans

The most flexible option — employer matching, profit sharing, Roth and traditional contributions, and vesting schedules that support retention.

Start a new plan

Safe Harbor 401(k)

Simplified nondiscrimination testing in exchange for a required employer contribution — a popular fit for small businesses responding to a mandate.

Safe Harbor basics

403(b), SEP, SIMPLE & pooled plans

Nonprofits, small teams, and employers joining pooled employer plans all have qualifying paths — each state lists which plan types satisfy its mandate.

State-approved qualifying plans

New plans may qualify for federal startup tax credits, and existing plans can often be upgraded to meet state requirements without starting over.

What employers should do next

Confirm your status

Check every state where you have employees — thresholds, deadlines, and exemption filings differ.

Compare your options

Weigh the state program against an employer-sponsored plan on contributions, tax credits, and flexibility.

Act before your deadline

Register, certify your exemption, or launch a qualifying plan — LRS can help you choose and implement.

Talk to a retirement plan consultant

Directory

State retirement mandate directory

Every state and Washington, D.C. States with a full LRS compliance guide are marked; all others open their reviewed summary in the panel above.

  • California Active mandate Guide
  • Colorado Active mandate Guide
  • Illinois Active mandate Guide
  • Oregon Active mandate Guide
  • Washington Enacted — launching Guide

Questions

Frequently asked questions

What is a state retirement mandate?

A state retirement mandate is a law requiring employers above a certain size that do not offer a retirement plan to enroll employees in a state-facilitated savings program — usually a Roth IRA with automatic payroll deductions — or to certify that they already sponsor a qualifying plan such as a 401(k).

Which states currently have active retirement mandates?

As of the July 2026 LRS compliance review, 10 states have mandates in force — California, Oregon, Illinois, Connecticut, Maryland, Colorado, Maine, Delaware, Vermont, and Nevada — and 4 more (Virginia, New Jersey, New York, and Rhode Island) are actively phasing in registration deadlines. Washington and Hawaii have enacted programs that are preparing to launch.

Do employers have to use the state program?

No. In every mandate state reviewed by LRS, sponsoring a qualified retirement plan — such as a 401(k), 403(b), SEP, or SIMPLE — satisfies the requirement. Note that several states, including California, require employers to formally register their exemption through the state portal; having a plan alone is not always enough.

What happens if an employer misses a registration deadline?

Penalties vary by state. Examples from the LRS review include $100 per eligible employee per year capped at $5,000 in Oregon and Colorado, $250 rising to $500 per employee in Illinois, and $250 plus an additional $500 per employee in California after extended non-compliance. Some newer programs have not announced penalty amounts, and a few states currently rely on notices rather than fines.

What is the status of the Minnesota Secure Choice program?

Minnesota Secure Choice opened in January 2026 and its statute sets registration waves by employer size. The requirement exists in the program materials, but it is not presently being enforced — no penalties are currently assessed. Minnesota employers should still document their status and monitor future guidance.

How often is this information reviewed?

The dataset behind this map was verified by the LRS compliance team against official state program sites, statutes, and the Georgetown Center for Retirement Initiatives tracker, and it enters a quarterly re-verification cycle with interim updates when legislation changes. Each state shows its own last-reviewed date.

Next Step

Not sure how your state’s mandate applies to you?

Leading Retirement Solutions designs and administers retirement plans that satisfy state mandates — 401(k), Safe Harbor, 403(b), pooled plans, and more. Talk through your requirements with a consultant before your deadline.

Talk to a retirement plan consultant Start a new plan

This resource 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.