MyCTSavings: Connecticut Employer Compliance Guide for Hartford and New Haven Businesses

Connecticut’s MyCTSavings program is now in full force, and employers across Hartford, New Haven, Bridgeport, Stamford, Waterbury, Norwalk, and Danbury with 5 or more employees are required to either enroll or offer their own qualifying retirement plan. Here’s your complete guide to staying compliant — and how to turn this mandate into a federal tax credit windfall.

What Is MyCTSavings?

MyCTSavings is Connecticut’s state-mandated payroll-deduction Roth IRA program. It’s designed for Connecticut workers who don’t have access to an employer-sponsored retirement plan — and it requires employers to either facilitate MyCTSavings enrollment or offer their own qualifying plan (401(k), 403(b), SEP-IRA, or SIMPLE IRA).

The program is administered by the Connecticut Retirement Security Authority (CRSA) and modeled after successful programs in other states. See our full Connecticut state page for program details.

Who Must Comply?

• Connecticut employers with 5 or more employees
• Businesses that have been in operation for at least 2 years
• Employers who do not already offer a 401(k), 403(b), SEP-IRA, SIMPLE IRA, or pension plan
• Applies to businesses throughout Hartford, New Haven, Bridgeport, Stamford, Waterbury, Norwalk, and Danbury

How MyCTSavings Works

Employees are automatically enrolled in MyCTSavings at a default contribution rate (typically 3–5% of wages), contributed to a Roth IRA. Employees can adjust their contribution rate or opt out at any time. Employers do not contribute — your role is to:

1. Register your business on the MyCTSavings portal
2. Provide employee enrollment materials
3. Set up payroll deductions and remit contributions
4. Enroll new hires within 30 days of their start date

Penalties for Non-Compliance

Connecticut employers who fail to register or facilitate MyCTSavings face penalties of approximately $100 per employee per year. A Stamford professional services firm with 20 employees could face $2,000/year in penalties — plus back-compliance costs and reputational risk.

MyCTSavings vs. a Private 401(k): Which Is Better?

For many Connecticut employers — especially those in growing companies in Bridgeport, Norwalk, or New Haven — a private 401(k) plan may be a smarter move than enrolling in MyCTSavings. Here’s why:

• MyCTSavings is Roth IRA only, with annual contribution limits of $7,000 (2025). A 401(k) allows up to $23,500/year.
• 401(k) plans are a stronger recruitment and retention tool
• SECURE 2.0 federal tax credits can make a new 401(k) essentially free for 3+ years

A Hartford business with 12 employees starting a new 401(k) could qualify for over $21,000 in federal tax credits. Use our free calculator to see your numbers.

Enrollment Deadlines and Compliance Timeline

MyCTSavings has been rolling out in phases. If you have 5 or more employees and no retirement plan, your enrollment window may already be open — or past due. Check your compliance status now.

Visit our Connecticut compliance page for current deadlines and portal links.

Action Steps for Connecticut Employers

1. Audit your current benefits — do you already offer a qualifying plan?
2. If not, decide: MyCTSavings or private plan?
3. Run the SECURE 2.0 numbers — tax credits may make a 401(k) cheaper than you think
4. Register and set up payroll integration before your deadline
5. Brief your HR team and document compliance

Whether you’re running a law firm in Hartford, a restaurant in New Haven, or a retail shop in Danbury, MyCTSavings compliance is not optional. The good news: with SECURE 2.0 tax credits, going above and beyond the mandate with a full 401(k) can pay for itself many times over. Learn more and get compliant today.