CalSavers

or

Qualified Retirement Plan

In California, every business with at least one employee must provide access to a retirement plan, as per state mandate.

Employers must participate in for CalSavers if they do not sponsor a retirement plan.

However, before registering for CalSavers, it's worth considering alternatives.

Sponsoring a qualified retirement plan not only fulfills the state's requirement but also provides additional benefits, flexibility, and significant tax advantages, including enhanced tax credits made possible by the Secure 2.0 act.

Qualified retirement plans include:

  • 401(a) – Qualified Plan (including profit-sharing plans and defined benefit plans)

  • 401(k) plans (including multiple employer plans or pooled employer plans)

  • 403(a) - Qualified Annuity Plan or 403(b) Tax-Sheltered Annuity Plan

  • 408(k) - Simplified Employee Pension (SEP) plans

  • 408(p) - Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA Plan

  • Payroll deduction IRAs with automatic enrollment

Why Choose a Qualified Plan?

  • Smaller contribution limits (IRA Limits)

  • Only Roth contributions

  • High Earners above the income restrictions cannot participate

  • No employer contributions allowed

  • Limited investment options: State Street Target Retirement Fund Series and 5 investment options selected by CalSavers

  • No Employer fees for ongoing management

  • Minimal fiduciary responsibility for employers

CalSavers Features

  • Larger contribution limits

  • Allows for Pre-Tax and Roth contributions

  • All employees allowed to participate (unless excluded by plan design)

  • Employer can decide which investment options and target date series to offer

  • Employer contributions allowed

  • Flexible plan design options

  • Employer contributions tax deductible

  • Professional guidance from Financial Advisor and Third Party Administrator.

  • Employers have fiduciary responsibilities

Qualified Plan Features

Ready to Get Started?