Employer requirements
Once the program launches: register, provide employees written notice of the opt-out right, and facilitate payroll deductions — or rely on a qualified plan offered within the past 2 years.
Enacted — launching
Hawaii Retirement Plan Mandate: Requirements for Employers
Hawaii Retirement Savings Program (Hawaii Saves)
Hawaii's Retirement Savings Program (enacted 2022) will apply to employers in business 2+ years with 1+ employee that have not offered a qualified plan within the past 2 years. A May 2025 amendment made it an automatic-enrollment program. No launch date has been announced.
The Program
How the Hawaii Retirement Savings Program works
The Hawaii Retirement Savings Program (Hawaii Saves), enacted in 2022, will apply to employers in business two or more years with one or more employees that have not offered a qualified plan within the past two years. Legislation effective May 29, 2025 converted the program to an automatic-enrollment model with employee opt-out; employers must provide written notice of the opt-out right. Hawaii joined the Multistate Alliance for Retirement Security on February 10, 2026. The Hawaii Retirement Savings Board has not yet announced a launch date. Per the official FAQ, employers required to participate that fail to do so once the program is active may face penalties of up to $5,000 per calendar year, and covered employees denied enrollment may file a civil action.
Because no launch date has been set, Hawaii employers have time to decide their approach rather than react to a deadline. Sponsoring a qualified retirement plan will satisfy the requirement when the program does go live — and an employer-sponsored 401(k) adds matching contributions and higher limits that a state Roth IRA cannot offer.
At A Glance
The Hawaii mandate at a glance
Registration deadlines
None announced yet. Per the official HRSP FAQ, employers should prepare for future deadlines — failure to comply with registration and enrollment deadlines once announced could result in penalties. Additional program guidance may be forthcoming.
Covered employers
Will apply to employers in business 2+ years with 1+ employee that have not offered a qualified plan within the past 2 years.
Penalties / enforcement
Per the official HRSP FAQ: employers required to participate that fail to do so once the program is active may face penalties of up to $5,000 per calendar year. Any covered employee denied enrollment may file a civil action against the employer for injunctive relief and recovery of costs, including reasonable attorneys' fees.
The Requirements
Who must comply in Hawaii — and what is required
Employee eligibility
Employees will be auto-enrolled with contributions withheld unless they explicitly opt out (amendment effective May 29, 2025); employers must provide written notice of the opt-out right. 5% default contribution per program materials.
Exemptions
Employers offering a qualified plan within the past 2 years; government employers.
Penalties and enforcement
Per the official HRSP FAQ: employers required to participate that fail to do so once the program is active may face penalties of up to $5,000 per calendar year. Any covered employee denied enrollment may file a civil action against the employer for injunctive relief and recovery of costs, including reasonable attorneys' fees.
Your Options
Qualifying retirement plan alternatives in Hawaii
Employers that offered a qualified retirement plan within the past two years will satisfy the Hawaii Saves requirement.
Start a new 401(k)
Design a plan around your workforce — matching, Roth options, vesting, and federal startup tax credits.
Start a new planUpgrade an existing plan
Confirm your current plan qualifies, then tune its design so the mandate works in your favor.
Upgrade my company’s planFull plan administration
LRS 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
Hawaii mandate FAQs
Is Hawaii Saves mandatory yet?
Not yet. The program was enacted in 2022, but the Hawaii Retirement Savings Board has not announced a launch date and no registration deadlines exist today. Employers should prepare for future deadlines rather than act now.
Which Hawaii employers will be covered?
Employers in business two or more years with one or more employees that have not offered a qualified retirement plan within the past two years. Government employers are excluded.
What are the penalties under Hawaii Saves?
Per the official HRSP FAQ, employers required to participate that fail to do so once the program is active may face penalties of up to $5,000 per calendar year. A covered employee denied enrollment may also file a civil action for injunctive relief and recovery of costs, including reasonable attorneys' fees.
Did Hawaii change from opt-in to automatic enrollment?
Yes. Legislation effective May 29, 2025 converted the program to an automatic-enrollment model with employee opt-out. Employees will have contributions withheld unless they explicitly opt out, and employers must provide written notice of that right.
When will Hawaii Saves launch?
No launch date has been announced. Hawaii joined the Multistate Alliance for Retirement Security on February 10, 2026, but the Hawaii Retirement Savings Board has not yet published a timeline.
Does having a 401(k) exempt us in Hawaii?
Yes. Employers that offered a qualified retirement plan within the past two years will satisfy the Hawaii Saves requirement.
Talk It Through
Not sure how the Hawaii mandate applies to you?
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.