Legislation to establish the Hawaii Savings Retirement Savings Program passed in 2022. Employers who have been in business at least 2 years and have not offered or maintained a qualified retirement plan at any time during the past 2 years and who also have one or more employees will be required to participate. The implementation date is yet to be determined but it is expected to begin either 7/1/2024 or 1/1/2025. The chart below illustrates a brief summary of the program.
| Feature | State IRA Plan | Employer Sponsored 401k |
| Plan Type | Voluntary 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 | Penalty for failing to provide written notice to employees | Compliant with state program |
| Eligibility | 18 years old | Employer controls eligibility requirements |
| Plan Costs | Unknown at this time | 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 annual pay, unless employee opts out or elects a higher or lower amount | Employee choice |
| Auto Escalation Feature | NO | NO |
| Minimum Employees to Participate | 1 or more employees | Any Number |
| Investments | Unknown at this time | More than 25 funds in a variety of Morningstar categories |
