Washington State Small Business Retirement Marketplace

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

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