Legislation was passed to begin a program for New York City employers, but implementation is still to be determined. Employers with 5 or more employees in the previous calendar year whose regular duties occur in the city will be impacted. Employers must have been in business for at least two years.
| Feature | City 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 | To be determined | Compliant with state program |
| Eligibility | Age 21, work at least 20 hours per week with regular duties occurring in New York City | Employer controls eligibility requirements |
| Plan Costs | Not currently available | 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% in NYC unless employee opts out | Employee choice |
| Auto Escalation Feature | Unknown at this time | NO |
| Minimum Employees to Participate | 5 in NYC | Any Number |
| Investments | Unknown at this time | More than 25 funds in a variety of Morningstar categories |
