ARTICLE | December 16 , 2024

Washington State’s “Washington Saves” program, set to be fully implemented by July 1, 2027, requires all businesses without a current retirement plan to offer an auto-IRA program to employees. This initiative is designed to enhance retirement savings by facilitating automatic payroll deductions for employee contributions.

To qualify, businesses must have operated in Washington for at least two years and have employees who collectively worked 10,400 hours in the previous year, (which is the equivalent to 5 full-time employees [or more]). Employers will be required to enroll employees ages 18+ with at least one year of continuous service, though it should be noted that employees have the flexibility to opt out. The program includes automatic contribution escalation and penalties for non-compliance, ensuring a robust framework for retirement savings.

The phased implementation, based on business size, will ensure a smooth transition for all involved, promoting long-term financial security for Washington’s workforce. To learn more, visit https://bit.ly/WASaves.