Posted on Apr 4, 2022
Connecticut has implemented a mandatory program called MyCTSavings for employers with 5 employees or more who do not currently have a retirement plan in place. The intent is to enable employees to save for their retirement and have these funds available to them even if they switch jobs later. Employers who already offer a qualified retirement plan are exempt, but they are required to certify their exemption online. The Access Code, which is needed to either certify your exemption (or to register if you don’t already have a retirement plan) will be sent to you by the State via email or mail this month.
Vestwell, the state’s retirement administration partner, has set up an employer registration portal for set-up of accounts or certification of exemption. Registration to set up an account for employees involves entering the company’s EIN and unique Access Code, payroll provider, bank information, and employee roster with accompanying personal information. Employees are automatically enrolled in a Roth IRA, with 3 percent of their gross income deducted as a contribution, unless they choose to opt out. Employers are not permitted to contribute to the program.
Registration opened on April 1, 2022, with the following schedule for compliance:
- WAVE ONE: Employers with 100 or more employees are required to register by June 30, 2022.
- WAVE TWO: Employers with 26 – 99 employees are required to register by October 31, 2022.
- WAVE THREE: Employers with 5 – 25 employees are required to register by March 30, 2023.
To reiterate, employers that already offer a qualified retirement plans such as a 401(K), 403(b) or SIMPLE plan ONLY need to certify their exemption online in accordance with the deadlines above once they receive their Access Code.
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