Washington does not mandate that businesses adopt a retirement savings plan. They have developed a Retirement Marketplace that is entirely voluntary. Each retirement plan available on the Retirement Marketplace must meet certain criteria to comply with requirements the legislature has developed. Plan enrollment is managed by private financial services firms.
| Feature | State Plan | Employer Sponsored 401k |
| Plan Type | Roth IRA, Traditional IRA, SEP IRA, Simple IRA | Pre-tax, Roth AND Employer Contributions |
| Contribution Limits | Limited to $7,000 (2024) | $23,000 (plus more if over age 50) |
| Compliance | Voluntary Enrollment | Compliant with state program |
| Eligibility | Age 18 | Employer controls eligibility requirements |
| Plan Costs | Varies among providers. Fees range from 0.57% – 0.65% and some may charge $5 per month for accounts without monthly auto deposit | 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 | Employee choice | Employee choice |
| Auto Escalation Feature | NO | NO |
| Minimum Employees to Participate | 1 | Any Number |
| Investments | Varied among providers | More than 25 funds in a variety of Morningstar categories |
