New Mexico will offer a voluntary program where employees can contribute to Roth IRAs. Legislation allows for development of a web-based “retail” Retirement Savings Plan Marketplace. A measure was passed that included an extension of time to July 2024 to design and implement the program. The chart below illustrates a brief summary of the program.
| Feature | State IRA Plan | Employer Sponsored 401k |
| Plan Type | Voluntary Roth IRA | Pre-tax, Roth AND Employer Contributions |
| Contribution Limits | Limited to $7,000 (2024) | $23,000 (plus more if over age 50) |
| Compliance | Unknown at this time | Compliant with state program |
| Eligibility | Unknown at this time | 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 | 6% after 60 days after program enrollment unless employee opts out or elects a different amount | Employee choice |
| Auto Escalation Feature | Unknown at this time | NO |
| Minimum Employees to Participate | 5+ employees | Any Number |
| Investments | Unknown at this time | More than 25 funds in a variety of Morningstar categories |
