Small Business Retirement Plan Mandates Coming In 2017 in some states

Half of private sector employees don’t have access to a workplace retirement savings plan, but by next year several states expect to have new plans up and running. Washington state is anticipating an early 2017 start date for its Small Business Retirement Marketplace, where financial services firms will offer low-cost plans to businesses with less than 100 employees, including solo business owners. The Marketplace will be voluntary for employers—and employees. By contrast, programs in Oregon and Illinois, with expected June 1, 2017 start dates, will be mandatory for employers, while employees will always be able to opt out. In Oregon, employees will be automatically enrolled into a plan that is pooled and professionally managed. In Illinois’ Secure Choice program, employees will be automatically enrolled in a Roth IRA-like savings account.