OregonSaves applies to businesses that do not offer an employer-sponsored retirement savings plan to their employees. As of July 2023, if your business had at least one employee, you are required to register or sponsor a qualified retirement plan. The chart below illustrates a brief summary of the program.
| Feature | State 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 | Penalties of $100 per employee, up to a maximum of $5,000 annually, may be incurred for non-compliance | Compliant with state program |
| Eligibility | Age 18 and employed for at least 60 calendar days | Employer controls eligibility requirements |
| Plan Costs | $16.00 annual fee and 0.17-0.27% asset based fee paid from the employee’s account | 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 pay with auto increases | Employee choice |
| Auto Escalation Feature | YES, 1% annually up to 10%, unless the employee opts into a different amount | NO |
| Minimum Employees to Participate | 1 | Any Number |
| Investments | Target Dates, Cap Preservation or S&P 500 Index | More than 25 funds in a variety of Morningstar categories |
