CalSavers was launched in 2019. Registration took place in three waves. All employers with five or more employees must have registered by June 30, 2022, unless they offer their own qualified retirement plan. The registration deadline for employers with 1-4 employees is December 31, 2025. The chart below illustrates a brief summary of the program.
| Feature | State IRA Plan | Employer Sponsored 401k |
| Plan Type | Payroll Deduction Roth IRA | Pre-tax, Roth AND Employer Contributions |
| Contribution Limits | Limited to $7,000 (2024) | $22,000 (plus more if over age 50) |
| Compliance | $250 penalty per employee if non-compliant after 90 days’ notice, additional $500 per employee if remains non-compliant |
Compliant with state program |
| Eligibility | 18 years old and status as an employee under California law | Employer controls eligibility requirements |
| Plan Costs | $18.00 annual fee and 0.325-0.49% asset based fee paid from employee’s account | Dependent on type of plan design chosen. |
| Tax Deductible | NO | Employer contributions are tax deductible |
| Tax Credit Available | NO | Plan costs qualify for available tax credits |
| Default Contribution | 5% of pay with auto escalation unless opt into a lesser amount | Employee choice |
| Auto Escalation Feature | Yes, 1% annually up to 8%, but can opt out at any time | NO |
| Minimum Employees to Participate | 1 | Any Number |
| Investments | Money Market, Target Date or may select from others | More than 25 funds in a variety of Morningstar categories |
