Highlights
Impacted Employers: Private employers with 10 or more employees. See below for further details.
Effective Date: Dependent on employer size. See below for further details.
Summary: Employer registration for New York’s mandatory retirement program is open.
Next Steps: Covered employers should review the New York State Secure Choice Savings Program requirements and be on lookout for information from the state.
The Details
Employer registration for the New York State Secure Choice Savings Program is now open for certain employers.
Background
As a reminder, the New York Secure Choice Savings Program was established in 2021. It is a state-sponsored retirement program that requires and facilitates the creation of Roth IRAs for private-sector employees who do not have access to a qualified employer-sponsored retirement plan.
Note: These plans are portable if employees change jobs.
Employer participation requirements
Employer registration was delayed, but is now open.
A private employer must participate in New York Secure Choice if they:
· Have been in business for at least two years;
· Employed 10 or more employees in New York in the previous calendar year; and
· Do not offer qualified retirement plan.
To register, an employer will need:
· A federal employer identification number (EIN)
· A unique access code from the notification sent by the state
There are no employer fees to participate in the Program, and currently, there are no employer-contribution or matching requirements.
Employees enrolled in the program will be charged a $28 annual fee ($7 per quarter) plus an annual asset-based fee of the total amount invested.
Employee Participation Requirements
Employees of covered employers who are 18 years of age and older and have earned taxable wages from an enrolled New York employer must participate in the program.
Employer Enrollment of Employees
An employer participating in the New York Secure Choice program must automatically enroll each eligible employee in the program.
Contributions
After enrollment, an employee will have 30 days to customize their contribution rate and investment selections, or opt out of the program altogether. An employee may contribute $7,500 maximum to the plan per year ($8,600 for employees that are at least 50 years old).
Note: Employers cannot match employee contributions.
An employee who does not customize their participation in the program or opt out will have 3% of their gross income automatically deducted from their wages.
Note: Participants may not borrow from their savings.
An employer must remit the contributions to the Roth IRA.
Employer Exemption Certification
An employer that offers a qualified retirement plan is not required to enroll in the program, but must certify its exemption from the program by reporting certain information about its retirement plan offerings to the Secure Choice Savings Program Board.
Employer Deadlines
The Board aims to contact private-sector employers on when they must register or certify their exemption, which will vary based on each employer’s headcount:
· March 18, 2026: An employer with 30 or more employees
· May 15, 2026: An employer with 15 to 29 employees
· July 15, 2026: An employer with 10-14 employees
Next Steps
Review the New York State Secure Choice Savings Program requirements and be on the look out for information from the state.
How ADP Can Help
The ADP TotalSource® Retirement Savings Plan (the “Plan”) is a professionally managed 401(k) Multiple Employer Plan (MEP) available to help TotalSource clients meet the New York new retirement requirements—at no additional cost to your business. It can also enhance your overall benefits offering by reducing administrative complexity, streamlining compliance, and supporting employee participation. To learn more or explore your options, reach out to your ADP TotalSource representative to setup a call with a MEP 401(k) Plan Consultant.