OregonSaves Complete Guide: What Every Oregon Small Business Owner Must Know in 2026

OregonSaves was the first state retirement mandate in the country, launched in 2017. If you’re an Oregon employer with even one W-2 employee, you must participate — or offer a qualifying private plan. This guide covers everything Portland, Salem, and Eugene-area employers need to know.

OregonSaves: The Basics

OregonSaves is Oregon’s state-run automatic enrollment IRA program. All Oregon employers with 1+ employees must either:

• Register and facilitate payroll deductions into employee Roth IRAs, OR
• Certify an exemption because you already offer a qualifying retirement plan

Penalty for non-compliance: $100 per eligible employee per year. Oregon’s Bureau of Labor and Industries (BOLI) is actively enforcing this.

How OregonSaves Works

Employees are automatically enrolled at a 5% contribution rate unless they opt out. Contributions go into Roth IRA accounts managed by the state. As an employer, you facilitate payroll deductions — you don’t contribute and you don’t bear investment risk.

The Exemption: How to Opt Out of OregonSaves

You can file an exemption if you offer:

• A 401(k) or 403(b) plan
• A SEP IRA or SIMPLE IRA
• A pension or defined benefit plan

The exemption must be renewed every 3 years through the OregonSaves portal.

OregonSaves vs. Private Plan: What’s Better?

For many Oregon employers — especially in the Portland metro area where talent competition is fierce — a private 401(k) is the smarter move:

OregonSaves: Free to administer. No employer contributions. No tax credits. Baseline compliance only.

Private 401(k): SECURE 2.0 credits cover costs. Employer contributions are tax-deductible. Higher limits ($23,500 vs $7,000 Roth IRA limit). Better tool for attracting Portland tech and creative talent.

Portland, Salem, Eugene: What Local Employers Are Doing

We’re seeing a clear pattern among Oregon employers: small businesses with 1-4 employees often choose OregonSaves for simplicity. Businesses with 5+ employees — especially in Portland’s competitive job market — are increasingly choosing private plans to differentiate themselves and maximize SECURE 2.0 credits.

Key Deadlines and Compliance Tips

• New Oregon employers must register within 90 days of their first payroll
• Employee opt-out window is 30 days after enrollment notice
• Exemptions must be renewed every 3 years
• Keep records of employee opt-outs for at least 3 years

We offer free compliance consultations for employers in Portland, Salem, Eugene, Gresham, Hillsboro, Beaverton, and throughout Oregon. Get your free audit →