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 →
