Hawaii’s the Hawaii Retirement Savings Program program is bringing retirement savings requirements to employers of all sizes across Honolulu, Pearl City, Hilo, Kailua, Kaneohe, Maui, and Kona. Unlike most other state mandates, the Hawaii Retirement Savings Program may apply to businesses regardless of size — making it one of the broadest retirement coverage initiatives in the nation. Here’s everything Hawaii employers need to know.
What Is the Hawaii Retirement Savings Program?
the Hawaii Retirement Savings Program is Hawaii’s state-facilitated retirement savings program, designed to extend access to retirement savings for Hawaii workers who currently have no employer-sponsored plan. The program is particularly significant in Hawaii given the state’s large hospitality, tourism, and small business sectors, where traditional retirement benefits have historically been rare.
Unlike many other state programs that have a 5-employee threshold, the Hawaii Retirement Savings Program is designed to reach a broader range of employers. See our full Hawaii state page for current coverage rules and deadlines.
Which Hawaii Employers Are Covered?
- Hawaii employers across all sizes — the program is designed for broad coverage
- Businesses in Honolulu, Pearl City, Hilo, Kailua, Kaneohe, Maui (Kahului, Lahaina area), and Kona
- Employers in hospitality, retail, construction, healthcare, professional services, and more
- Exempt: Employers already offering a qualifying retirement plan (401(k), 403(b), SEP-IRA, SIMPLE IRA, pension)
How the Hawaii Retirement Savings Program Works
the Hawaii Retirement Savings Program is a payroll-deduction Roth IRA program. Covered employers must:
- Register with the Hawaii Retirement Savings Program program through the state portal
- Auto-enroll eligible employees at the default contribution rate
- Set up payroll deductions and remit employee contributions
- Allow employees to opt out or adjust their contribution rate
- Enroll new hires within 30 days of their start date
Employees contribute to a Roth IRA. Employers do not make contributions under the state program, but must handle enrollment and payroll processing.
Hawaii’s Unique Compliance Landscape
Hawaii already has some of the most comprehensive employment laws in the United States, including mandatory health insurance under the Hawaii Prepaid Health Care Act. Adding a retirement savings mandate reflects the state’s commitment to worker financial security. For Honolulu and Maui employers already navigating complex HR obligations, adding retirement compliance is one more moving part — but one that comes with significant federal support.
SECURE 2.0 Federal Tax Credits — Don’t Leave Money on the Table
Employers who start a new qualifying retirement plan can claim:
- Up to $5,000/year for 3 years (startup cost credit)
- Up to $1,000/employee/year for 5 years (employer contribution credit — for employers with ≤50 employees)
These credits can offset most or all of your first-year costs. Use our free calculator to estimate your exact credit.
the Hawaii Retirement Savings Program vs. Private 401(k): The Honolulu Employer’s Choice
For large hospitality employers on Oahu — hotels, resorts, restaurants — the private 401(k) route funded by SECURE 2.0 credits is often the best path. For small shops in Kailua, Kaneohe, or Kona with 5–10 employees, the Hawaii Retirement Savings Program may be the simplest route to compliance.
But consider: a Maui resort company with 40 employees starting a new 401(k) plan could qualify for:
- $5,000/year × 3 years = $15,000 in startup credits
- $1,000/employee/year × 40 employees = $40,000/year (for employers with ≤50 employees)
Over 3 years, that’s potentially well over $100,000 in federal tax credits — subject to phase-outs and actual employer contributions — for launching a retirement benefit your employees will actually value far more than a basic Roth IRA. Use our free SECURE 2.0 calculator to see your Hawaii numbers.
Key Deadlines and Rollout for Hawaii Employers
the Hawaii Retirement Savings Program is being phased in, with larger employers facing earlier deadlines. Given Hawaii’s dependence on seasonal hospitality workers, compliance timelines may vary by industry and employer size. Check your specific deadline now at our Hawaii compliance page — don’t wait for an enforcement notice.
Steps for Hawaii Employers to Comply
- Verify your current retirement benefit offerings — do you already have a qualifying plan?
- Confirm whether the Hawaii Retirement Savings Program applies to your business size and industry
- Check your enrollment deadline
- Decide: the Hawaii Retirement Savings Program or a private 401(k)?
- Run your SECURE 2.0 numbers before you commit to either path
- Register, integrate payroll, and notify employees
- Document compliance for your records
Ready to Get Compliant — With Federal Credits Doing the Heavy Lifting?
Get your free compliance audit at retirementmandate.com. We’ll review your current setup, calculate your federal tax credits, and build a step-by-step compliance plan — at no cost.
From Honolulu’s financial district to Maui’s hotel corridor to Hilo’s small business community, the Hawaii Retirement Savings Program is changing what it means to be a compliant employer in Hawaii. The good news: federal tax credits under SECURE 2.0 mean many Hawaii employers can launch a retirement benefit that actually competes with major employers — at a dramatically reduced net cost. Act now and make the most of this window. Get full the Hawaii Retirement Savings Program details here.
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.
