NEW YORK RETIREMENT PLAN STATE MANDATE: HELP BUSINESS OWNERS BENEFIT

  • In late 2021, new legislation was signed into law, requiring private employers who do not sponsor a retirement plan to automatically enroll their employees into the State’s new program. The New York State Secure Choice Savings Plan (Program).

    No official implementation schedule has been announced. New York is presently working on the program schedule, but it is not yet operational. Those who haven’t yet adopted an employer-based plan have two choices:

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      Contact your Regional Plan Consultant
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What You Should Know

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      Deadlines:
      • 30 or more employees: March 18, 2026
      • 15–29 employees: May 15, 2026
      • 10–14 employees: July 15, 2026
      • Registration is open now, so employers can complete the process early.
      • After registration:
        • Employees have 30 days to opt out or customize contributions.
        • Employers must begin payroll deductions for those who remain enrolled.
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      Requirements:

      Employers that:

      • Have 10 or more employees in New York during the prior calendar year (including part-time and seasonal)
      • Have been in business for at least two years
      • Do not offer a qualified retirement plan (e.g., 401(k), 403(b), SIMPLE IRA, SEP IRA).
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      Penalties for Non-Compliance:

      NY businesses that don’t adhere to state-mandated retirement legislation within one year will receive a written warning from the government. Each subsequent year of non-compliance will result in these penalties:

      • First year: Written warning
      • Second year: $250 per employee
      • Third year: $500 per employee
      • Fourth year and beyond: $1,000 per employee for each subsequent violation
      • These penalties apply for each calendar year or portion of a year that an employee is not enrolled and has not opted out of the program.

      You can help your clients avoid these fines and offer a retirement plan that will:

      • Comply with the New York mandate
      • Reduce taxes
      • Control costs
      • Attract and retain top talent
      • Maximize business value
      • Enable them to work with their preferred business partners

New York Secure Choice OR Customized Plan?

New York Secure Choice 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.

New York Secure Choice 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 Auto-enrolled at a 3% contribution rate Lesser of 100% of compensation or $23.000
Catch-Up Contributions Determined by Roth IRA contribution limits $7,500 annually for those age 50 and older
Employer Match Not permitted Available
Income Limit Determined by Roth IRA contribution limits No income limits
Investment Choices Default investment option and investments to be determined 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 No, since there are no start-up costs for employers 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 New York Secure Choice 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 New York Secure Choice include SIMPLE 401(k) Plans, Group 401(k) Plans (MEPs, PEPs and Aggregation Programs), and 403(b) Plans (for non-profits).

COMPARE PLANS

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) Plan Administration Relief Services (PARS) 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.

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Pattern

Consider TRA's 3(16) Fiduciary Services & Plan Administration

To alleviate the day-to-day administrative burdens of yours or your clients retirement plans.
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