New York State is officially moving forward with the rollout of the New York State Secure Choice Savings Plan, a state-facilitated Roth IRA program for private-sector workers who do not have access to an employer-sponsored retirement plan. After several years of delay, employer registration is now open, and beginning in March 2026, employers will be required to either register for the Program or certify that they are exempt.
The statewide rollout includes detailed deadlines tied to employer headcount. Businesses should begin preparing now for compliance, data gathering, and payroll adjustments.
Which Employers Are Covered?
An employer is required to participate in New York Secure Choice if it meets all of the following (a) Has been in business for at least two years, (b) Employed 10 or more employees in New York during the previous calendar year, and (c) Does not offer employees a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP). Employers that offer a qualified plan are exempt but must certify their exemption to the Secure Choice Savings Program Board.
There are no fees for employers to participate. However, enrolled employees will be charged a $28 annual account fee, plus an investment-based fee ranging from 0.22% to 0.31%.
Key Registration and Certification Deadlines
Employers must register or certify their exemption based on their New York headcount. The registration deadlines are:
– March 18, 2026: Employers with 30 or more employees
– May 15, 2026: Employers with 15 to 29 employees
– July 15, 2026: Employers with 10 to 14 employees
All covered employers must take action by their applicable deadline.
What Covered Employers Must Do
Covered employers must complete several compliance steps once required to participate:
1. Provide program information, disclosures, and instructions.
2. Manage enrollment by collecting employee elections or opt-out forms.
3. Automatically enroll employees who do not respond within 30 days at the default 3% Roth IRA payroll deduction rate.
4. Withhold after-tax Roth IRA contributions and remit them to the state-designated provider.
5. Ensure payroll accuracy and remittance compliance.
Employers are not allowed to make employer contributions or matching contributions to Secure Choice IRAs.
Employee Enrollment Rules
All employees aged 18 or older who earn taxable wages from a participating New York employer must be enrolled unless they opt out. Employees have 30 days after enrollment to select a different contribution percentage, change investment selections, or opt out entirely. Employees who do nothing will be automatically enrolled at 3% of gross income. Employers are responsible for accurate withholding and remittance.
Investment Options and Vendor Selection
New York State has pre-selected the program administrator and investment menu. Participants will choose from four state-approved funds or remain in the default investment option. Employers have no role in plan design, investments, or vendor selection.
Should Employers Consider Offering Their Own Retirement Plan Instead?
Secure Choice is intended as a baseline compliance option, not a comprehensive retirement benefit. Employers may want to evaluate whether adopting their own qualified retirement plan offers more flexibility and value.
A private plan allows employers to choose plan design, eligibility, vesting schedules, matching contributions, and investments, and it exempts them from Secure Choice entirely. Employers should also consider that lower-income employees who do not opt out may see reduced take-home pay.
What Employers Should Do NowEmployers should begin preparing now by:
– Determining whether they are covered by the mandate
– Reviewing whether an existing plan qualifies them for exemption
– Considering whether adopting a 401(k) or SIMPLE IRA before the compliance deadline is preferable
– Gathering data required for registration
– Verifying payroll provider capabilities for withholding and remittance
Forework will continue monitoring implementation developments and will ensure payroll logic supports auto-enrollment, deduction tracking, contribution remittance, and employee opt-out processing.