CalSavers is California’s state-sponsored alternative retirement savings program. By 2022, any employee of a company with five or more employees will be automatically enrolled into CalSavers if their company doesn’t already offer a retirement plan.
What should you do as a business owner or the employee of a company without a retirement plan in California? Businesses may either sponsor a retirement plan or register and participate in the CalSavers plan. Employees of a company registered with CalSavers can either “Do Nothing” (automatically enrolled), “Customize their CalSavers options” or “Opt Out” of participating in the plan.
You’ll want to make the decision that best fits your situation. But, make that choice with your eyes wide open. Here are some of the pros and cons of CalSavers.