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

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