CalSavers Deadline: What California Employers Need to Know by December 31, 2025

California's CalSavers Retirement Savings Program mandates that all employers with at least one employee must offer a retirement plan by December 31, 2025. This requirement applies to businesses that do not currently sponsor a qualified retirement plan, such as a 401(k), SEP IRA, or SIMPLE IRA.

Key Points:

• Who Must Comply? Any California employer with one or more employees who does not offer a qualified retirement plan.

• Deadline: December 31, 2025.

• Penalties for Non-Compliance: Employers who fail to comply may face penalties of $250 per eligible employee after 90 days of non-compliance, increasing to $500 per eligible employee after 180 days.

What Are Your Options?

1. Enroll in CalSavers: A state-run Roth IRA program with no employer fees or fiduciary responsibilities.

2. Offer a Qualified Retirement Plan: Implement a private retirement plan, such as a 401(k), which may provide additional benefits like higher contribution limits and employer matching.

Why Consider a Private Plan?

While CalSavers offers a straightforward solution, private retirement plans can offer greater flexibility, potential tax advantages, and enhanced benefits for both employers and employees.

Next Steps:

• Assess Your Current Retirement Offerings: Determine if your existing plan qualifies under state requirements.

• Consult with Infinium HR: Seek guidance from HR professionals like Infinium HR to choose the best retirement plan option for your business needs.

• Act Promptly: Ensure compliance before the December 31, 2025 deadline to avoid penalties.

REQUEST MORE INFORMATION

For more information and resources, visit the CalSavers official website.