New Mexico Work & Save

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

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