Click below to review information on states with mandatory and voluntary retirement programs, as well as which states have begun the legislative process and which have no plan.
California
Status: Implemented; registration is open
Coverage: Employers with at least one employee that don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 8% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: Up to $750 per eligible employee
Colorado
Status: Implemented; registration is open
Coverage: Employers with 5 or more employees that have been in business at least 2 years and do not already offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 8% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: Up to $100 per eligible employee, capped at $5,000 per year
Connecticut
Status: Implemented; registration is open
Coverage: Employers with 5 or more employees that don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: The state may bring enforcement actions for failure to remit contributions
Delaware
Status: Implemented; registration is open
Coverage: Employers with 5 or more employees that have been in business at least 6 months and don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: Up to $250 per employee per year, to a maximum total of $5,000 per year
Hawaii
Status: Legislation passed
Coverage: Employers with 1 or more employees who have not offered a qualified retirement plan in the past 2 years
Plan type: Auto-IRA
Default contribution rate: 5%
Employer contributions: Not permitted
Deadline: Implementation deadline is to be determined, launch expected mid-2026
Penalties: Up to $75 per employee per month; employer must also pay the employee an amount equal to the missed contributions plus interest
Illinois
Status: Implemented; registration is open
Coverage: Employers with 5 or more employees that have been in business at least 2 years and do not already offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: $250 per employee for the first year, then $500 per employee for any subsequent calendar year
Maine
Status: Implemented; registration is open
Coverage: Employers who’ve been in business for at least 2 years, have 5 or more employees and don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties:
Phased penalities:
- Until 6/30/2026: $20 per employee
- 7/1/26 to 6/30/2027: $50 per employee
- After 7/1/2027: $100 per employee per year
Maryland
Status: Implemented; registration is open
Coverage: Employers who have at least 1 employee, use an automated payroll system, have been in operation for at least 2 years and don't already offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: Only employers who register will qualify for a waiver of the $300 annual filing fee for Maryland businesses
Minnesota
Status: Legislation passed; registration will open in January 2026
Coverage: Employers with at least 5 employees that have been in business for at least 12 months and don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permtted
Deadline:
- 100+ employees: 6/30/2026
- 50-99 employees: 12/1/2026
- 25-49 employees: 6/30/2027
- 10-24 employees: 12/31/2027
- 5-9 employees: 6/30/2028
Penalties: Up to $500 per employee per year
Nevada
Status: Implemented; registration is open
Coverage: Employers with 6 or more employees that have been in business for at least 3 years and don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permtted
Deadline: Initial deadlines have passed
Penalties: To be determined
New Jersey
Status: Implemented; registration is open
Coverage: Employers with 25 or more employees that have been in business for at least 2 years and don't offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 3%
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: Up to $500 for each unenrolled employee, and up to $5,000 for unremitted contributions
New York
Status: Implemented; phased deadlines for registration
Coverage: Employers with 10 or more employees that have been in business for at least 2 years and have not offered a qualified retirement plan in the preceding 2 years
Plan type: Auto-IRA
Default contribution rate: 3% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline:
- 30+ employees: 3/18/2026
- 15-29 employees: 5/15/2026
- 10-14 employees: 7/15/2026
Penalties: To be determined
Oregon
Status: Implemented; registration is open
Coverage: Employers that do not currently offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: Up to $100 per employee, not to exceed $5,000 in a calendar year
Rhode Island
Status: Implemented; phased deadlines for registration
Coverage: Employers with 5 or more employees that don’t provide a qualified retirement retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline:
- 100+ employees: 10/21/2026
- 50+ employees: 10/21/2027
- 5+ employees: 10/21/2028
Penalties: $250 per employee for failure to allow participation
Vermont
Status: Implemented; registration is open
Coverage: Employers with 5 or more employees that have been in business for at least 2 years and don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 8% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties:
- Until 9/30/2026: $20 per employee
- After 10/1/2026: $75 per employee
Virginia
Status: Implemented; registration is open
Coverage: Employers with 25 or more eligible employees that have been in business for at least 2 years and don’t offer a qualified retirement plan
Plan type: Auto-IRA
Default contribution rate: 5% with auto-escalation of 1% per year, capped at 10% of salary
Employer contributions: Not permitted
Deadline: Initial deadlines have passed
Penalties: Up to $200 per employee annually
Washington
Status: Legislation passed
Coverage: Employers that have been in business for at least 2 years, whose employees worked a combined 10,400 hours or more in the previous year and don’t offer a qualified retirement plan
Plan type: Auto-IRA*
Default contribution rate: To be between 3% and 7% with auto-escalation of no more than 1% per year, capped at 10% of salary
Employer contributions: Not permitted*
Deadline: To be determined; program to begin no later than July 1, 2027, and may be implemented in phases
Penalties: Up to $500 per violation, not to be levied prior to 2030
Footnote/Important infomation:
*Washington also offers a voluntary retirement plan marketplace with state-approved plans for employers with fewer than 100 employees, the Washington Small Business Retirement Marketplace. Employer contributions are permitted in certain plans available on the marketplace.
Details for each state are compiled from Georgetown University’s Center for Retirement Initiatives as of December 1, 2025.
Massachusetts
Status: Legislation passed; registration is open
Coverage: Non-profit employers with 100 or fewer employees
Plan type: Multiple Employer Plan — 401(k)
Default contribution rate: 6% with auto-escalation of 1% or 2% per year, capped at 12% of salary
Employer contributions: Permitted but not required
Deadline: Not applicable
Missouri
Status: Legislation passed; an implementation timeline has yet to be determined
Coverage: Employers with 50 or fewer employees
Plan type: Multiple Employer Plan — 401(k)
Default contribution rate: 5%
Employer contributions: Permitted but not required
Deadline: Not applicable
New Mexico
Status: Legislation passed; the program is not currently operational and has been delayed
Coverage: Any employer with its primary place of business in New Mexico
Plan type: Two options: enroll employees in the state-sponsored voluntary IRA, or select a plan from the New Mexico retirement plan marketplace
Employer contributions: Not permitted in voluntary IRA. Permitted in some marketplace plans
Deadline: Not applicable
Details for each state are compiled from Georgetown University’s Center for Retirement Initiatives as of December 1, 2025.
Alabama, Alaska, Arkansas, Arizona, District of Columbia, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennslyvania, South Carolina, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming
Details for each state are compiled from Georgetown University’s Center for Retirement Initiatives as of December 1, 2025.
South Dakota
Details for each state are compiled from Georgetown University’s Center for Retirement Initiatives as Decenber 1, 2025.
