What is it: Colorado General Assembly passed a law requiring certain employers to have a retirement plan in place or use the Colorado Secure Savings Program.
Who: Colorado employers with 5 employees or more. Those with current 401k or other qualified savings plans are not required and have the option to opt out.
When: Staring in 2023 this will be a required, the pilot program started October of 2022
What are my options as an employer in Colorado with 5 or more employees?
401(k): One of the most popular employee sponsored retirement plans
-
- Pros: High contribution limits, no required employee match in many cases, Roth option, flexible vesting in many cases.
- Cons: There are fixed costs for the plan, filing requirements.
Simple IRA: Popular plan for many small companies and non profits
-
- Pros: No set up or annual plan expenses, employee has their own investment choices, no filing requirements.
- Cons: Lower contribution limits, immediate vesting, mandatory matching requirements for employers.
Colorado Secure Savings Program: This is the State option
-
- Pros: No cost to the employer, no required match.
- Cons: Government mandated program, new program (hasn’t been tested), filing requirements with the State.