In the US, Labor Day will be celebrated on Monday, September 2nd this year. Retirement planning and saving for retirement impacts not only the individual, but the family, the community, and the state of residence.
Motley Fool reports in 2024:
- The median retirement savings for American households is $87,000.
- Median retirement savings for Americans younger than 35 is $18,800.
- 67% of Americans have a retirement account but only 34% feel on track for retirement.
Image by WOKANDAPIX from Pixabay
Employee Impact
Less than half of the workforce in the US will have access to a retirement plan in 2024. To counteract that, 20 states have state-run retirement programs for employers to facilitate enrolling their employees.
Most of these programs have mandates requiring businesses to enroll employees in the state-run program or provide their own privately run 401(k) plan; a few states have voluntary programs or marketplaces. In the eight states actively auto-enrolling workers into a state-run IRA, more than $1.6 billion has been contributed by employees, and more than 858,000 employee accounts have been funded.
Upcoming State Deadlines
Many of the 20 state-run retirement programs have had 2024 deadlines. If this is new information, it is important to follow up with your state program. Am sharing the states and deadlines from The Guideline.com
Maine
Program: MERIT (Maine Retirement Investment Trust)
How it works: Maine businesses with five or more employees, have been in business for at least two years, and don’t offer a qualified retirement plan already must register with the program by the deadline.
Upcoming deadlines:
- April 30, 2024: Businesses with 15+ employees
- June 30, 2024: Businesses with 5-14 employees
Need to know: Employers will face state penalties of up to $100 per employee for each individual employee they fail to cover without reasonable cause.
Colorado
Program: Colorado Secure Savings Program
How it works: Colorado businesses that have been in business for at least two years, have five or more employees, and don’t offer a qualified retirement plan for their employees are required by law to facilitate Colorado SecureSavings. Employers already offering a qualified plan are exempt but must certify their exemption.
Upcoming deadline: May 15, 2024, for newly eligible businesses with five or more employees
Need to know: Employers will be subject to a penalty of $100 per employee per year (max $5,000/year) for not complying.
Oregon
Program: OregonSaves
How it works: Oregon businesses with one or more employees who don’t offer a qualified retirement plan must register with the program by the deadline.
Upcoming deadline: July 31, 2024, for newly eligible businesses with one or more employees
Need to know: Employers will be subject to a penalty of $100 per employee per year (max $5,000/year) for not complying.
California
Program: CalSavers
How it works: California businesses with five or more employees and don’t offer a qualified retirement plan already must register with the program by the deadline.
Upcoming deadline: December 31, 2024, for newly eligible businesses with five or more employees
Need to know: Employers will be subject to a penalty of $250 per employee if noncompliance extends 90 days after receiving a notice from the state. An additional $500 per employee penalty will be applied if noncompliance extends to 180 days or more after being notified.
Maryland
Program: MarylandSaves
How it works: Maryland businesses that have been in business for at least two years, use an automated payroll system, have at least one employee, and don’t offer a qualified retirement plan already must register with the program by the deadline. Employers already offering a qualified plan are exempt but must certify their exemption.
Upcoming deadline: December 31, 2024, for newly eligible businesses with one or more employees
Delaware
Program: Delaware EARNS
How it works: Delaware businesses with five or more employees and don’t offer a qualified retirement plan already must register with the program by the deadline.
Upcoming deadline: October 15, 2024
Need to know: Employers will be subject to a penalty of $250 per employee per year for noncompliance.
New Jersey
Program: RetireReady NJ
How it works: New Jersey businesses with 25 or more employees and don’t offer a qualified retirement plan already must register with the program by their specific business size deadline.
Upcoming deadlines:
- Businesses with 25-39+ employees: November 15, 2024
- Businesses with 40+ employees: September 15, 2024
Need to know: There are penalties for noncompliance with the RetireReady NJ program:
- Year 1: Written warning by the department
- Year 2: $100 per employee
- Year 3 and 4: $250 per employee
- Year 5: $500 per employee
Penalties for companies with 20+ employees begin on August 15, 2024, and penalties for companies with 40+ employees start in June 2025.
Washington
Program: Washington Saves Program
How it works: On March 28, 2024, the Washington governor signed a bill establishing the Washington Saves Program, which will require employers who have been in business for two years and do not offer a qualified retirement plan to register with the program.
Upcoming deadline: The program is set to launch by July 1, 2027
Need to know: The program is still under development. A previous version of this program was structured as a voluntary marketplace program but given lackluster sign-ups, legislators are now revising the program as a mandatory law. Employers will face penalties if they don’t comply after the program has launched.
Rhode Island
Program: Rhode Island Secure Choice Retirement Savings
How it works: On June 11, 2024, the Rhode Island governor signed a bill creating the Rhode Island Secure Choice Retirement Savings program. This program requires private-sector employers in Rhode Island with five or more employees to provide a retirement plan for their workers.
Upcoming deadline: None at this time.
Need to know: The program is still under development.
Image by 3D Animation Production Company from Pixabay
Planning
Keeping up with state requirements, national requirements, and personal planning – oh my! Whether you are in a state offering a state-run retirement plan or not, planning for retirement is for everyone.
And, always remember overall planning for and about life and business 😉I would highly suggest communicating regularly with trusted people in your circle about the what’s what in your life and business!
If you’re interested in pre-planning, knowing what to do at a loss, and/or learning about the ongoing follow-up, check out my book The Living Planner (What to Prepare Now While You Are Living). Here is a direct link to my shopping cart. Check it out HERE. For those who prefer to access information via an online portal, I’ve created a step-by-step 12-Module DIY method: Check it out HERE.
Reach out via Email or Message me if you have any questions. For additional information about my work check out @ The Living Planner or @ The Living Planner.
Happy Labor Day! Found this unknown author quote that sums it up “August is like the Sunday of Summer”. Enjoy the end of summer! Lynn
#Can’tPredictCanPrepare #PlanfortheUnplanned