With 17 states now having active or pending retirement mandate laws, employer compliance has become a serious issue for small businesses across the US. This checklist walks you through exactly what to do — state by state — to stay compliant in 2026.
Step 1: Determine If You’re Subject to a State Mandate
Check if your state has an active mandate and whether you meet the employee threshold:
- California (CalSavers): 1+ employees — enforcing now
- Oregon (OregonSaves): 1+ employees — enforcing now
- Maryland (MarylandSaves): 1+ employees — enforcing now
- Illinois (IL Secure Choice): 5+ employees — enforcing now
- Colorado (SecureSavings): 5+ employees — enforcing now
- Connecticut (MyCTSavings): 5+ employees — enforcing now
- Maine (MERIT): 5+ employees — enforcing now
- New Jersey (RetireReady NJ): 10+ employees — enforcing now
- Virginia (RetirePath VA): 5+ employees — enforcing now
- New York (NY Secure Choice): 10+ employees — enforcing now
- Vermont (VT Saves): 5+ employees — enforcing now
- Minnesota, Nevada, Delaware, Rhode Island, Washington, Hawaii: Coming 2026-2027
Step 2: Choose Your Compliance Path
Option A — Enroll in the state program:
Register through your state’s portal. Integrate payroll deductions. No employer contributions required. Stops penalties.
Option B — Set up a qualifying private retirement plan:
A 401(k), SEP IRA, SIMPLE IRA, or pension plan qualifies in all 17 states. File an exemption certification. for eligible employers, SECURE 2.0 tax credits can offset much or all of the cost.
Step 3: Calculate Your SECURE 2.0 Credits
Before you decide, run the numbers:
- Startup cost credit: up to $5,000/year × 3 years
- Contribution credit: up to $1,000/employee/year (1-50 employees)
- Compare to: annual plan administration costs ($1,500-$6,000/year typical)
Use our free penalty calculator to see your state mandate exposure, then compare against SECURE 2.0 credits.
Step 4: Act Before the Next Penalty Cycle
State mandate penalties typically run on annual cycles. The sooner you act, the less you pay. Every month of delay is a fraction of the annual penalty accruing.
Step 5: File Your Exemption (If Using Private Plan)
Each state has its own exemption filing process:
- California: CalSavers portal exemption filing
- Oregon: OregonSaves portal exemption certification
- Illinois: IL Secure Choice exemption form
- New Jersey: RetireReady NJ exemption registration
- (Other states: check state portal for current exemption process)
Free Compliance Audit
Don’t navigate this alone. We offer free 15-minute compliance audits for employers in all 17 mandate states. We’ll tell you exactly what you owe in potential penalties, what SECURE 2.0 credits you qualify for, and which path saves you the most money.
Book your free compliance audit →
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.
