Napa Sonoma SBDCSanta Rosa and Napa, California

CalSavers Retirement Savings Program

Do you have employees? Learn more about CalSavers!

The basics:

  • What is CalSavers? CalSavers is a retirement savings program for workers in the private sector who do not have a way to save at work.
  • Is it required for an employer to offer CalSavers? If you have 5 or more employees and do not have another retirement program it is required. Here is the schedule for when it is required.
  • When can employees join? Do they have to join? Once CalSavers is set up for your business, employees are automatically enrolled. However it is optional for employees so they can opt-out at any time if they do not want to participate.
  • Who pays for the retirement? Employees don't 'pay' but they 'invest' as follows:
    • Initially 5% of the employee's paycheck is automatically deducted and placed into a personal Roth IRA. As mentioned, employees can opt-out if they prefer.
    • Each year, employee contributions automatically increase 1% annually until it reaches a maximum of 8%
  • Are there any fees? Who pays them? Employees who enroll in CalSavers also pay a small annual administrative charge:
    • There is an administrative charge of 0.825% to 0.95% annually depending on your investment choices. This means for every $100 in your account, you will pay between $.83 and $.95 per year.
  • Can business owners also participate? Yes... If you are also an employee of your business you are eligible to participate in the same way any employee does. If you are not an employee, you can enroll as an individual and make automatic contributions from your bank account.

Learn More - CalSavers Resources

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Funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA or HSU Sponsored Programs Foundation.