Learn what the state mandated Savers programs are and how to set it up in your payroll service.
Savers program is a state mandated retirement plan that is supported through a payroll deduction. It is taxable to all payroll taxes and is modeled after Roth IRA. This contribution does not show on W-2s.
Here are the Savers program mandated by states:
- Oregon: OregonSaves
- California: CalSavers
- Illinois: Illinois Secure Choice
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Enhanced, Basic, Standard, and Assisted
Note: Oregon reports are available now, California and Illinois reports will be available mid-December 2019
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No. Each state has an employer portal in which companies can pay and report each payroll directly online. Visit their website for more details:
The Savers program acts as a payroll deduction IRA, not a retirement plan as defined by the IRS instructions for the W-2. Hence, these contributions will not reflect on W-2s.
Yes, limits follow the standard IRA limits. See Deferred compensation limits for more details.
Yes. Employees can contribute to more than one savings plan or account at a time. However, IRS contribution limits for IRAs are cumulative for all Traditional and Roth IRAs owned by an individual.
At this time, these contributions are made on a post-tax basis. This is subject to change per state law.