Connecticut established and began requiring employers to join MyCTSavings in April 2022. Currently any employer with five or more employees in Connecticut – at least five of whom have been paid more than $5,000 in the calendar year – are required by law to join the program unless they have an employer-sponsored retirement plan in place. 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) | $23,000 (plus more if over age 50) |
| Compliance | May be penalties | Compliant with state program |
| Eligibility | 19 years old and employed in the state of Connecticut for at least 120 days | Employer controls eligibility requirements |
| Plan Costs | Average asset based fee of 0.26% plus $26 annual account fee paid by the employee | 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 | 3% of annual pay unless employee opts out or elects lower amount | Employee choice |
| Auto Escalation Feature | NO | NO |
| Minimum Employees to Participate | 5 | Any Number |
| Investments | Target Date Series and Portfolios | More than 25 funds in a variety of Morningstar categories |
