Everything New York employers need to know about NY Secure Choice — 2026 deadlines, penalties, exemptions, and enrollment steps.
NY Secure Choice is New York State's mandatory retirement savings program requiring private-sector employers with 10 or more employees to either enroll workers in the state-administered Roth IRA or offer a qualifying private retirement plan. The program is administered by the New York State Secure Choice Savings Board.
The program was enacted to address the retirement savings gap among private-sector workers in New York. With an estimated 3.5 million private-sector workers lacking access to a workplace retirement plan, NY Secure Choice creates a pathway for employees to save through automatic payroll deductions, while giving employers a simple compliance option.
Employees are automatically enrolled at a default 3% contribution rate and invested in a Roth IRA. They may adjust their contribution rate, choose different investment options, or opt out entirely within a 30-day window. Employers have no obligation to contribute — their role is enrollment facilitation and payroll deduction management.
The mandate applies broadly to private-sector employers in New York. Below is a breakdown of which employer types are covered:
| Employer Type | Covered? | Notes |
|---|---|---|
| For-profit businesses with 10+ W-2 employees | YES | Must enroll or have qualifying plan |
| Non-profit organizations with 10+ employees | YES | Non-profits are included |
| Sole proprietors with no W-2 employees | NO | No employees = no mandate |
| Employers with qualifying retirement plan | EXEMPT | Must file exemption certificate |
| Federal government employers | NO | State mandate does not apply |
| Employers with 1099 contractors only | NO | Only W-2 employees count |
| New businesses (under 2 years) | VARIES | Businesses in operation less than 2 years may be exempt initially |
New York employers who fail to comply with NY Secure Choice face financial penalties that accumulate annually until the employer either registers for the program or obtains an exemption certificate by establishing a qualifying private retirement plan.
| Business Size | Year 1 Penalty | Year 2 Penalty | Year 3 Penalty |
|---|---|---|---|
| 25 employees | $6,250 | $6,250 | $6,250 |
| 50 employees | $12,500 | $12,500 | $12,500 |
| 100 employees | $25,000 | $25,000 | $25,000 |
Important: These penalties are in addition to any back-registration fees. The best way to avoid penalties is to either enroll in NY Secure Choice or establish a qualifying private retirement plan and file for exemption.
If your business already offers one of the following qualifying retirement plans, you are exempt from NY Secure Choice — but you must still file a Certificate of Exemption through the official portal at nysecurechoice.com.
Having a qualifying plan exempts your business immediately. Note: you must actively maintain the plan and keep contributions current to maintain exempt status.
If your business does not have a qualifying plan, here is how to enroll in NY Secure Choice:
Alternatively, establish a qualifying private plan (401k, SIMPLE IRA, etc.) to bypass the state program entirely and potentially provide better benefits for your team.
Employers required to comply with NY Secure Choice have two options: enroll in the state-administered Roth IRA, or establish a private retirement plan. Here is how they compare:
| Feature | NY Secure Choice (State Plan) | Private 401(k) / SIMPLE IRA |
|---|---|---|
| Employer cost | $0 setup | $500–$2,000 setup; flat-fee available |
| Employee contribution type | Roth IRA only | Pre-tax + Roth options |
| 2026 contribution limit | $7,000/yr (IRA limit) | $23,500/yr (401k) or $16,500/yr (SIMPLE) |
| Employer matching | Not available | Optional (tax-deductible) |
| SECURE 2.0 tax credits | Not available | Up to $15,000 over 3 years |
| Recruiting advantage | Limited | Strong competitive benefit |
| Admin burden | Low — state manages it | Low with flat-fee TPA |
| Satisfies mandate | YES | YES |
Bottom line: For most businesses with growth ambitions, a private 401(k) or SIMPLE IRA offers better contribution limits, tax advantages, and recruiting power — often at a similar or lower net cost once SECURE 2.0 credits are factored in.
Get a free 20-minute compliance audit. We will review your New York mandate requirements, employee count, and recommend the best compliant plan for your business.
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