WHAT EMPLOYERS NEED TO KNOW ABOUT
Colorado
SecureSavings
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Most Colorado businesses are now required to offer a retirement plan, but business owners don’t have to settle for a limited plan.
In 2020, the State of Colorado passed the Colorado Secure Savings Act with the goal of helping more employees save for retirement. This law requires businesses with five or more employees to offer a retirement savings plan, such as a 401k. The state established its own retirement savings plan, SecureSavings, but employers can choose to offer their own plan which can offer additional benefits.
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Colorado SecureSavings Requirements
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Colorado businesses are required to offer a retirement plan if they have:
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Five or more employees
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Been in business for at least two years
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Not offered a qualified retirement plan in the last two years
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Colorado SecureSavings Alternatives
Colorado business owners have the freedom to choose between the state plan and offering their own 401k plan. Have you thought about what retirement plan is best suited for you and your company?
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Offering your own 401(k) retirement plan
can present these opportunities:
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Increased control & customization
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Expert support from financial professionals
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Less administrative work
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Tax benefits & credits
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Plan design flexibility
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NOT HAPPY WITH THE COLORADO SECURESAVINGS PLAN?
CONTACT US TO DISCUSS WAYS TO OPTIMIZE YOUR PLAN!
Colorado SecureSavings Deadlines
Originally, deadlines were staggered based on the number of employees at a company. As of mid-2023, all deadlines have elapsed. Eligible employers must now offer a plan or face fines.​
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Colorado SecureSavings Penalties
Non-compliance will result in fines.
Up to $100 per eligible employee per year, not to exceed an aggregate amount of $5,000 in a calendar year.
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At 401k Extra, we specialize in retirement plans so people can retire on their terms. Explore how we go the extra mile to help plan sponsors manage retirement plans.
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Employees are 15x more likely to save when they have access to a workplace retirement savings plan.
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* Waggoner, John. “Voters Support Workplace Retirement Savings Plans.” AARP, 20 Oct. 2021.
2024 Employee Contribution Limit | $7,000
($8,000 if age 50+) | $23,000
($30,500 if age 50+) |
Employee Contribution | Roth Only | Pre-tax or Roth |
Employer Contribution | Not allowed | Optional |
Default Savings Rate | 5% (No Auto-Escalation) | Flexible (Auto-Escalation Optional) |
Loans Allowed | Not allowed | Optional |
Administration | Easy to startup;
Difficult to maintain | Easy to startup;
Easy to maintain |
Investment Options | Limited | Wide range |
Profit Sharing Contributions | Not allowed | $66,000
($73,500 if age 50+) |