Did you get one of these emails from the CalSavers Retirement Savings Program?
It is not Spam
If you re a business owner with at least one employee in California, you need to take action.
So what should you do?
#1. If you DO HAVE a 401k/Simple IRA or something else:
- You need to inform the state of California.
- Follow this link or copy and paste to the CalSavers website.
- https://employer.calsavers.com/californiaertpl/enroll/createEmp/viewCollectEmpPreRegDetails.cs?request_locale=en_US
- It takes less than 3 minutes if you have your business's EIN and CA payroll number (I found mine on my last EDD notice, or you can ask your payroll company).
#2 If you DO NOT have a 401k/Simple IRA/CalSavers Plan/SEP IRA, or any other covered retirement plan, you need to get one.
Starting next year, EVERY business with at least one employee located in California is now required to have a retirement plan, with few exceptions.
https://www.calsavers.com/home/about.html
No, the business owner does not have to offer a match, but that still might make sense for your personal tax and financial plan.
If you do not have a plan in place before December 31st, reach out to our office. We are conducting multiple calls for business planning to determine what retirement plans make the most sense. Considering costs, contribution limits, deductions, and tax credits are important.
CalSavers does offer a low-cost, bare bones option, but the Roth IRA limits still apply, and there are no deductible tax strategies that can help a business owner. The CalSavers plan does suit its purpose of offering a one-size fits most approach, but we often see better plan options available.
The more equipped and educated a business owner is, the better they can usually make decisions.