WASHINGTON RETIREMENT PLAN MANDATE: HELP BUSINESS OWNERS BENEFIT

  • Washington Saves Retirement Program is a state-sponsored program designed to provide retirement savings options for employees whose employers are not providing an employer-sponsored qualified retirement plan. The program will become effective on July 1, 2027, although its launch may be in phases based on the size of the employer. Those who haven’t yet adopted an employer-based plan have two choices:

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      Contact a Regional Plan Consultant
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What You Should Know

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      Deadlines:

      July 1, 2027 – Washington Saves officially begins. Employers without a qualified retirement plan must either:
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      Requirements:
      • Have operated in Washington for at least 2 years.
      • Have employees who worked 10,400+ hours in the previous year (≈ 5 full-time employees).
      • Do not offer a qualified retirement plan (e.g., 401(k), SIMPLE IRA).
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      Penalties:
      • Enforcement begins January 1, 2030.
      • Civil penalties:
        • $100 for the first willful violation.
        • Up to $500 for subsequent willful violations.
      • The Washington Department of Labor & Industries (L&I) will investigate violations and impose penalties for willful infractions.

      For violations occurring after Jan. 1, 2030, the maximum penalty for a first-time willful violation is $100 and $250 for the second willful violation. The maximum penalty for each subsequent violation is $500.

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

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

How it Works:

  • Automatic sign-up: You must be 18 years old or older and you must work for a Washington Saves 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 Washington Saves, 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.

Washington Saves Retirement Program OR Customized Plan?

Washington Saves Retirement Program 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.

Washington Saves Retirement Program 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 8% – $7,500 Lesser of 100% of compensation or $24,500
Catch-Up Contributions $1,000 (over 50) $8,000 annually (over 50)
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 Yes – employers with ≤100 employees can claim up to $500/year for 3 years for eligible Washington Saves startup costs. 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 Washington Saves Retirement Program 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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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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