WHAT EMPLOYERS NEED TO KNOW ABOUT
Most Colorado businesses are now required to offer a retirement plan, but business owners don’t have to settle for a limited plan.
In 2020, the State of Colorado passed the Colorado Secure Savings Act with the goal of helping more employees save for retirement. This law requires businesses with five or more employees to offer a retirement savings plan, such as a 401k. The state established its own retirement savings plan, SecureSavings, but employers can choose to offer their own plan which can offer additional benefits.
Colorado SecureSavings Requirements
Colorado businesses are required to offer a retirement plan if they have:
Five or more employees
Been in business for at least two years
Not offered a qualified retirement plan in the last two years
Colorado SecureSavings Alternatives
Colorado business owners have the freedom to choose between the state plan and offering their own 401k plan. Have you thought about what retirement plan is best suited for you and your company?
Offering your own 401(k) retirement plan
can present these opportunities:
Increased control & customization
Expert support from financial professionals
Less administrative work
Tax benefits & credits
Plan design flexibility
NOT HAPPY WITH THE COLORADO SECURESAVINGS PLAN?
CONTACT US TO DISCUSS WAYS TO OPTIMIZE YOUR PLAN!
Colorado SecureSavings Deadlines
Originally, deadlines were staggered based on the number of employees at a company. As of mid-2023, all deadlines have elapsed. Eligible employers must now offer a plan or face fines.
Colorado SecureSavings Penalties
Non-compliance will result in fines.
Up to $100 per eligible employee per year, not to exceed an aggregate amount of $5,000 in a calendar year.
Employees are 15x more likely to save when they have access to a workplace retirement savings plan.
* Waggoner, John. “Voters Support Workplace Retirement Savings Plans.” AARP, 20 Oct. 2021.
2024 Employee Contribution Limit
$7,000 ($8,000 if age 50+)
$23,000 ($30,500 if age 50+)
Pre-tax or Roth
Default Savings Rate
5% (No Auto-Escalation)
Flexible (Auto-Escalation Optional)
Easy to startup; Difficult to maintain
Easy to startup; Easy to maintain
Profit Sharing Contributions
$66,000 ($73,500 if age 50+)