Connecticut MyCTSavings Employer Guide: Deadlines and Penalties

The Connecticut MyCTSavings employer guide you need: Connecticut assesses annual per-company penalties, with fines reaching $1,500 per year for the largest 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 company per year, banded by employee count
• Status: Active — 2025 amendment enforcement underway
• Default contribution rate: 3% of gross wages (employee-paid)

Connecticut MyCTSavings Penalties: How the Per-Company Fines Work

Connecticut’s penalty is assessed per company — not per employee — after three notices and a 90-day cure window:

• 5–24 employees: $500 per company per year
• 25–99 employees: $1,000 per company per year; 100+ employees: $1,500 per company per year

For a 20-person Connecticut business, the penalty is $500 per year — assessed annually for as long as you remain non-compliant. These fines recur every year you remain out of compliance — while a compliant plan can qualify for federal tax credits.

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 company in penalties, non-compliance is a recurring annual cost with none of the recruiting upside of a real plan. A SIMPLE IRA or 401(k) typically costs $1,500–$3,000/year in admin — and SECURE 2.0 credits can offset much of those costs for the first 3 years, depending on your headcount and eligibility.

View Connecticut state details: Connecticut State Mandate Overview

Compare all state mandates: State Mandate Comparison

This content is for educational purposes only and does not constitute financial, tax, legal, or investment advice. State requirements and penalties are subject to change. Consult a qualified professional before making compliance decisions.