Connecticut MyCT Savings Program

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


More Articles