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UPDATED SEPTEMBER 2026 · STATUTE-VERIFIED

California Retirement Mandate: CalSavers

CalSavers is enforcing now. It applies to California employers with 1+ employees (prior-year average) that do not offer a qualifying retirement plan. Penalty: Up to $500 / employee / yr (escalating). Already passed: 100+ employees (2020-09-30); 50+ employees (2021-06-30); 5+ employees (2022-06-30); 1–4 employees (2025-12-31) — unregistered employers should register or certify an exemption now.

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

What does California actually require?

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Informational only, not legal or tax advice.

Annual exposure · California
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// verified to the statute

CalSavers at a glance.

Who is covered

CalSavers covers California employers with 1+ employees (prior-year average) that do not offer a qualifying retirement plan. Counting rule: Average number of California employees on the four prior-year DE 9C filings, at least one of whom is 18 or older. No years-in-business requirement; newly eligible employers register by December 31 of the year they are notified.

Penalty and enforcement

Escalating: $250 per employee (90+ days after notice); $500 per employee (180+ days after notice). Penalties are being assessed now.

Deadlines

Already passed: 100+ employees (2020-09-30); 50+ employees (2021-06-30); 5+ employees (2022-06-30); 1–4 employees (2025-12-31) — unregistered employers should register or certify an exemption now. Newly eligible employers: December 31 of the year notified.

Source

Cal. Gov. Code §§100000, 100032, 100033(b)(2); Rev. & Tax. Code §19287; 10 CCR §§10000–10012 · Official program: www.calsavers.com · Verified 2026-09-17.

// 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.

What is CalSavers?

CalSavers is California's state-facilitated retirement savings program. It is enforcing now. Program: https://www.calsavers.com.

Who must comply with CalSavers?

CalSavers covers California employers with 1+ employees (prior-year average) that do not offer a qualifying retirement plan. Counting rule: Average number of California employees on the four prior-year DE 9C filings, at least one of whom is 18 or older. No years-in-business requirement; newly eligible employers register by December 31 of the year they are notified.

What is the CalSavers penalty?

Escalating: $250 per employee (90+ days after notice); $500 per employee (180+ days after notice). Penalties are being assessed now.

When are the CalSavers deadlines?

Already passed: 100+ employees (2020-09-30); 50+ employees (2021-06-30); 5+ employees (2022-06-30); 1–4 employees (2025-12-31) — unregistered employers should register or certify an exemption now. Newly eligible employers: December 31 of the year notified.

How do California employers become exempt?

Exempt with a DB plan, 401(k), SEP, SIMPLE or auto-enrollment payroll IRA — but the exemption form must be filed by December 31. A private 401(k) or SIMPLE IRA satisfies the mandate and may qualify for SECURE 2.0 startup credits.

Find out where you stand — before the state does.

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