Connecticut MyCTSavings Employer Guide: Deadlines and Penalties

The Connecticut MyCTSavings employer guide you need: Connecticut has the highest state retirement mandate penalties in the country, with fines reaching $1,500 per employee per year for non-compliant businesses. If your Connecticut business has 5 or more employees, here’s what you need to know.

What Is Connecticut MyCTSavings?

MyCTSavings is Connecticut’s state-mandated retirement savings program, administered by the Connecticut Office of the State Comptroller. The program requires private-sector employers with 5 or more employees to either enroll workers in the state-administered Roth IRA or establish a qualifying private retirement plan.

Key program facts:

• Employee threshold: 5 or more W-2 employees
• Penalty range: $500–$1,500 per employee per year (highest in the country)
• Status: Active — 2025 amendment enforcement underway
• Default contribution rate: 3% of gross wages (employee-paid)

Connecticut MyCTSavings Penalties: The Highest in the Nation

Connecticut’s penalty structure is the steepest of any state retirement mandate in the United States:

• Initial penalty: $500 per employee who should have been enrolled
• Escalating penalty: Up to $1,500 per employee per year for continued non-compliance

For a 20-person Connecticut business, initial penalties are $10,000 — escalating to $30,000 per year for continued non-compliance. These penalties significantly exceed the cost of establishing a compliant private retirement plan.

2025 Amendment: What Changed for Connecticut Employers?

Connecticut’s 2025 legislative amendment strengthened enforcement provisions for MyCTSavings:

• Enforcement authority was clarified and expanded
• Penalty assessment procedures were streamlined
• Employers who proactively register or file for exemption may receive penalty mitigation
• Annual exemption renewal requirements were formalized

Who Is Covered by Connecticut MyCTSavings?

• Private-sector for-profit employers with 5+ W-2 employees
• Non-profit organizations with 5+ W-2 employees
• Businesses that have been operating for 2+ years
• Part-time W-2 employees count toward the threshold

Federal government, state/local government, and businesses with qualifying private retirement plans (with exemption certificate) are exempt.

Qualifying Exemptions: Plans That Satisfy MyCTSavings

The following plans qualify your Connecticut business for a Certificate of Exemption:

• 401(k) plan
• SIMPLE IRA
• SEP IRA
• 403(b) plan
• Defined benefit pension
• 457(b) plan

You must file your exemption certificate through the MyCTSavings portal. Simply having the plan is not sufficient — formal registration of your exempt status is required.

How to Register or File for Exemption

1. Visit the official MyCTSavings portal through the Connecticut Office of the State Comptroller website
2. Create your employer account using your EIN
3. Choose either: (A) Enroll employees in MyCTSavings, or (B) File for exemption with your qualifying plan details
4. Upload your employee roster (for enrollment) or plan documentation (for exemption)
5. Submit and save your confirmation or exemption certificate

Given CT’s Penalties, Is a Private Plan Worth It?

For Connecticut employers, the calculus strongly favors a private plan. At $500–$1,500 per employee in penalties, even a 10-person business faces $5,000–$15,000 per year in fines. A SIMPLE IRA or 401(k) typically costs $1,500–$3,000/year in admin — and SECURE 2.0 credits can cover those costs entirely for the first 3 years.

🔗 View Connecticut state details: Connecticut State Mandate Overview

🔗 Compare all state mandates: State Mandate Comparison