Private sector employers in New York should get ready to comply with or certify their exemption from the New York State Secure Choice Savings Program (“New York Secure Choice”), the state’s mandatory employer-facilitated retirement savings program that the state is now implementing following its enactment in 2021.
Covered employers will need to begin the process of facilitating enrollment of eligible employees in a Roth IRA through the New York Secure Choice program by recently announced dates in 2026. Specifically, covered employers must register according to the following dates, based on employer size:
Employers with 30 or more employees: March 18, 2026
Employers with 15 to 29 employees: May 15, 2026
Employers with 10 to 14 employees: July 15, 2026
Importantly, employers that already sponsor a qualified retirement plan, such as a 401(k) and/or profit-sharing plan, are not required to enroll employees in New York Secure Choice. In addition, small employers with fewer than 10 employees in the previous calendar year, and employers that have been in business for fewer than two (2) years, are not required to facilitate enrollment in New York Secure Choice. Eligible employees must be employed by participating employers, be at least 18 years old and must have earned taxable wages from a New York employer.
Unlike with qualified retirement plans, employers are neither required nor permitted to make employer contributions to an eligible employee’s Roth IRA (post-tax) in the New York Secure Choice program. Instead, an employer’s role is limited to facilitating employee participation in the program. There are no fees to employers, but employers must automatically deduct enrolled employees’ set contribution amounts to their Roth IRAs established under the program. Employee expenses include an annual asset-based fee between 0.22% to 0.31%, depending on an enrolled employee’s investment choice(s).
To facilitate employee enrollment or certify their exemption from New York Secure Choice, employers will need to provide their employer identification number (EIN) and an Access Code that the New York Secure Choice program will send to employers by email or letter.
Enrolled employees will receive information directly from New York Secure Choice, according to the program. If employees do not set their own contribution amounts after 30 days, the law provides for an automatic three percent (3%) of gross pay as the employee’s contribution per pay period, which amount can be changed by the employee. Employees also have the option to choose their own investments under the program.
