Hawaii Retirement Savings Program

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

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