State Mandates in 2024: How Your Clients Are Impacted

State retirement mandates have been popping up across the country requiring private businesses to offer state-run retirement benefits or qualified alternatives like a 401(k) from a private provider. These mandates were established in an effort to increase retirement savings for workers within the United States.

With the new year comes new rounds of deadlines for businesses to comply, as well as potential updates from states with passed mandates that are not yet live. Read on to learn more.

Upcoming state mandate deadlines

Several states have already established deadlines for 2024 and 2025.

Maine has several upcoming deadlines. Businesses that have 15+ employees must register by April 30, 2024. Those with 5+ employees have until June 30, 2024 to register. All businesses will be required to comply by December 31, 2024, or face fines starting in 2025.¹

Virginia’s first deadline is approaching quickly on February 15, 2024. Starting on that date RetirePath Virginia will require businesses that have existed for 2+ years and have 25+ employees to join the state-mandated program or certify their exemption to a qualifying plan type.²

California’s next deadline for businesses with 1+ employees will go into effect on December 31, 2025. Businesses with 5+ employees are already required to comply with the CalSavers mandate.³

States to keep an eye on

There are a handful of states on the precipice of launching their plans but haven’t yet nailed down deadlines. Businesses in these states should be anticipating deadline announcements to come. States to keep an eye on include:

Hawaii - the program is expected to be operational by July 1, 2024.³

New Mexico - currently enrollment is slated for July 1, 2024.³

Colorado & Connecticut - Enforcement penalties are beginning to be enforced in 2024.³

How can your clients prepare while they await details and deadlines?

Start researching options! What are the pros and cons of the state-run plan? What are the options for qualified alternatives? If they decide the state-run plan isn’t the right choice for them, consider getting the ball rolling on a private retirement plan option, allowing them to take advantage of tax credits and help their employees start saving sooner.

As these state mandates continue to be introduced, passed, and go live - it is important to know the nuances of how each state’s program works and how it impacts businesses with employees in those states. Check out related articles on The Woodard Report!

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_{1 New State Requirement for Retirement Savings in 2024. Maine Association of Non-Profits. November 17, 2023.}

_{2 Your guide to the RetirePath Virginia state-sponsored retirement program. Human Interest. 2023.}

_{3 What is a state-sponsored retirement plan? Human Interest. 2023.}

_{Human Interest Inc. is an affordable, full-service 401(k) and 403(b) provider that seeks to make it easy for small and medium-sized businesses to assist their employees with investing for retirement. For more information, please visit humaninterest.com.}