CalSavers notice: what's going on?
Updated: Aug 24, 2022
Businesses that are not exempt must:
Report eligible workers to the CalSavers program;
Collect payroll deductions; and
Send CalSavers the money taken from workers.
The businesses have no other involvement. CalSavers charges participating workers for its cost, not the employer.
Here are reasons why a worker may want to opt out or reduce the debits:
Already contributing to a retirement plan;
A Traditional IRA may be tax-deductible;
Doesn't qualify for a Roth IRA; or
Can't afford the paycheck debit.
Which way is better: starting a retirement plan, or CalSavers?
Workers are better off with a retirement plan at work when the employer pays the costs. The employer may qualify for a retirement plan startup tax credit.
Didn't receive a notice, missed the deadline or have a question? No worries, call CalSavers today:
Workers: (855) 650-6918
Employers: (855) 650-6916
Or visit the CalSavers Q&A page.
But for help with an insurance or retirement benefit plan, call Mark Dierolf @ (831) 753-0507. Services include plan options, setup, and rollovers.