NEVADA RETIREMENT PLAN MANDATE: HELP BUSINESS OWNERS BENEFIT
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Nevada Employee Savings Trust (NEST) is a state-sponsored retirement savings program designed for employees whose employers do not offer a qualified retirement plan. The program becomes effective on September 1, 2025, and may roll out in phases based on employer size and eligibility.
Employers who do not currently offer a retirement plan have two options:
- Register for NEST, the state-facilitated Roth IRA program.
- Adopt their own qualified retirement plan.
Participation is mandatory for eligible employers, but voluntary for employees, who are automatically enrolled unless they opt out. Employees can customize their savings rate, choose from professionally managed investment options, and retain their account even if they change jobs.
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Contact a Regional Plan Consultant
Non-Compliant Employers Could Face Stiff Penalties
While exact fines or enforcement actions are still being finalized, the law authorizes the NEST Board to establish rules that may include:
- Fines
- Administrative penalties
- Enforcement actions for failure to register, facilitate payroll deductions, or maintain records
How to Stay Compliant
- Register or certify exemption at nest.nv.gov
- Integrate payroll systems
- Communicate with employees using NEST-provided materials
- Monitor updates from the NEST Board as enforcement details are finalized
How it Works:
- Automatic sign-up: You must be 18 years old or older and you must work for a NEST participating employer to be automatically enrolled. You can opt out or re-enroll anytime.
- Open for all: If you are self-employed or your employer has not joined NEST, you will be able to set up your own account.
- Employers: Participation is mandatory unless they already offer a qualified retirement plan.
- Employees: Participation is voluntary (they can opt out).
- Decide how much to save: Keep the default savings rate or pick a different amount. You will be able to choose how much you save.
Maintain the account when you move jobs: Your contributions are still in the same account even in event of you changing to a new employer. - Professionally managed investments: Your money would be managed by seasoned investors.
We will post more information on this website as the program becomes available.
Nevada Employee Savings Trust (NEST) OR Customized Plan?
NEST is a basic, one-size-fits-all retirement savings program for businesses that do not wish to sponsor a plan for their own employees. Yet there are many businesses that would be better served with a plan from TRA that’s customized to their needs.
| NEST | Custom 401(k) from TRA | |
|---|---|---|
| Pre- and Post-Tax Deferrals | Roth IRA w/ auto after-tax payroll deduction | Pre-tax or Roth elective deferral contributions |
| Contributions | Employees are automatically enrolled at 5% of gross pay with an annual 1% increase up to 10% | Lesser of 100% of compensation or $23,500 |
| Catch-Up Contributions | $1,000 | $7,500 annually for those age 50 and older |
| Employer Match | Not Available | Available |
| Income Limit | Determined by IRA contribution limits | No income limits |
| Investment Choices | Limited selection | Can provide a wide variety from top asset managers |
| Automated Payroll Integration | Available | Available |
| Customizable for businesses | Not customizable | Yes – for example, Safe Harbor, SIMPLE, Profit-Sharing & Cash Balance |
| Tax Credit | Not available | Yes – 100% of the expenses paid up to the greater of $500 or the lesser of $250 for each non-HCE’s. A maximum tax credit of $5,000 per year would be available for 3 years. |
TRA Plans to Consider
For Washington Saves Retirement Program businesses who want to sponsor a retirement plan, some plans to consider include:
• 401(k)
• Safe Harbor 401(k)
• Cross Tested Profit-Sharing Allocation
• 401(k) plus Cash Balance Plan
Other alternatives to NEST include SIMPLE 401(k) Plans, Group 401(k) Plans (MEPs, PEPs and Aggregation Programs), and 403(b) Plans (for non-profits).
Working closely with you, TRA will create a customized plan that meets your client’s business. We partner with top recordkeepers and investment managers around the country and deliver exceptional client service. We also offer 3(16) Fiduciary Services & Plan Administration to relieve business owners of day-to-day plan administration responsibilities and manage their fiduciary risk.
Complete the form below and one of TRA’s Regional Plan Consultants will be in contact with you.
