Resources
Does your business operate in California ?
If your business operates in California and you have over five employees, you’ll need to offer your employees access to a retirement plan.
- September 30, 2020 – 100 plus employees
- June 30, 2021 – 50 to 99 employees
- June 30, 2022 – 5 to 49 employees
To meet the requirements of the California State Retirement Plan Mandate, you don’t have to be limited to the CalSavers state-run IRA. You can choose a Futuready retirement plan that has higher contribution limits and better potential for tax credits. Bundled with Futuready, your business will benefit from a truly automated and integrated system, leading to a more efficient workflow and more time to focus on what matters most.
Besides staying compliant with the state mandate, establishing a retirement plan before the deadline may potentially help your employees save thousands of dollars more for their retirement, due to the power of compounded interest.
What is the DIFFERENCE Between
a State-Run IRA, and 401(k)?
The biggest difference between these types of retirement plan is a company match and the maximum amount employees can contribute.
When you choose a retirement plan through Futuready, we also help you with all of the administrative tasks, such as updating employee demographics, editing payroll lists, submitting contributions every pay period, and more.
| State-IRA | 401(k) (Offered by Futuready) |
|
| Contribution Max | $6,000 | $19,500 |
| Company Match Option | No | Yes, at employer’s discretion |
| Tax Credits for Opening New Plan | No | Up to $5,000 per year, for the firsts 3 years. |
| Employer Tasks | Employer processess payroll contributions, updates contribution rates, adds newly eligible, etc. | Futuready is your plan administrator |
| Contribution Type | Roth Only | Pre Tax and Roth |