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The New York Secure Choice Savings Program (the “Program”), which we discussed in our previous client alert, has been officially launched. The Program requires covered private-sector employers to participate in an automatic-enrollment Roth IRA program.
Employers are required to participate if they:
- have ten or more employees in New York during the prior calendar year;
- do not already offer a qualified retirement plan (such as a 401(k)); and
- have been in business for at least two years.
Employees must be automatically enrolled in the Program. Upon enrollment, employees will have 30 days to opt out of the Program or adjust their contribution rate and investment options. The default contribution rate is 3% of the employee’s gross income, but employees may increase their contribution to up to 10%. Employees can opt-out of the program and later choose to re-enroll.
The Program is free and run by New York State. Employer responsibilities include informing employees about the Program, registering for the Program, uploading employee information, facilitating payroll deductions, submitting contribution information for the employees who stay in the Program, and continuing to maintain and submit payroll and employee records to the Program. Employers do not contribute to accounts, manage the funds, or assume fiduciary responsibility.
Employers will be notified of their registration obligations from the Program by mail or email; however, they may also choose to register proactively by accessing the employer portal. The deadlines to register are as follows:
- Employers with 30 or more employees: March 18, 2026
- Employers with 15 to 29 employees: May 15, 2026
- Employers with 10 to 14 employees: July 15, 2026
If an employer believes they are exempt from the Program (e.g. they offer a qualifying retirement plan, have less than 10 employees, or have not operated for two years), they must certify their exemption using the portal.
Employers should not provide employees with advice regarding the Program or their investment options. Rather, employers should refer employees to the Program website for additional information or suggest that employees consult a financial or tax advisor for individualized guidance.
Employers should take steps now to determine whether they are required to participate in the Program or qualify for an exemption, monitor for communication from the Program regarding registration (or prepare to register proactively), and consult with legal counsel to assess compliance obligations.
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