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UPDATED FOR 2026 · STATUTE-VERIFIED

California Retirement Mandate: CalSavers

California has the most mature state retirement mandate in the US. CalSavers launched in 2019 and is now fully enforced for ALL employers with 1+ employees. Penalties are actively being issued.

CalSaversENFORCING
State program
1+ employees
Employee threshold
Up to $500 / employee / yr (escalating)
Non-compliance penalty
// 60-second check

What does California actually require?

Set your headcount for your real exposure — data verified against the statute.

Informational only — not legal or tax advice.

Annual exposure · California

Get your full breakdown + a private-plan savings estimate:

// state plan vs your own

You can comply two ways. Only one builds anything.

The state auto-IRA

Compliance, nothing else
  • No employer match allowed
  • Low Roth-IRA contribution limits
  • One-size-fits-all investments
  • No tax credits for your business
RECOMMENDED

Your own 401(k)

Compliant — and working for you
  • Match if and when you want
  • Far higher contribution limits
  • SECURE 2.0 credits offset setup
  • A real recruiting & retention perk
// frequently asked

Asked by employers here.

Is CalSavers mandatory for all California employers?

Yes. As of 2022, all California employers with 1 or more employees must either enroll in CalSavers or offer a qualifying private retirement plan such as a 401(k), SEP IRA, or SIMPLE IRA.

What is the CalSavers penalty?

California fines non-compliant employers $250 per eligible employee after 90 days of notice, and $500 per employee after 180 days. Penalties are actively being issued by the Franchise Tax Board.

How do I avoid CalSavers as a California employer?

Offer a qualifying private retirement plan (401k, SEP IRA, SIMPLE IRA). This automatically exempts you from CalSavers. Plus, SECURE 2.0 tax credits can offset up to $5,000/year of startup costs.

// local guides

California guides by city.

Find out where you stand — before the state does.

Book a free 15-minute compliance audit. We'll show your exact requirement, your real exposure, and whether your own plan saves you money.

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