A jar for Roth IRA contributions.
The State of New York is launching a Secure Choice Savings Program. This state-sponsored retirement savings program is for private-sector employees who don’t have access to a workplace retirement plan.
“With the launch of the New York State Secure Choice Savings Program, we are expanding access to retirement savings and empowering New Yorkers to invest in their future,” Governor Hochul said. “The program provides another tool for employees to build long-term financial security and plan for a dignified retirement.”
Currently, more than 50% of working New Yorkers do not have access to a retirement plan from their employer. New York Secure Choice is free for employers, and allows employees to save automatically through payroll deductions into portable Roth Individual Retirement Accounts (IRAs) they own and keep.
Following a successful pilot program, New York employers with 10 or more employees that do not already offer a qualified retirement plan will now be able to provide their employees the opportunity to save for retirement at work.
Once an employer facilitates New York Secure Choice, they’ll automatically add employees to the program. From that point, employees have 30 days until the employer automatically begins to deduct contributions from paychecks and deposit them into a Roth IRA.
During the 30 days, employees can choose to:
Set up and customize a New York Secure Choice account. They can customize the savings rate, investment options, and beneficiaries. They can also choose to automatically increase savings rate each year until you reach 10%.
Do nothing and save automatically. If an employee does nothing to set up their account or customize options, they will start saving after 30 days with the default savings and investment options.
Opt out. Participation in New York Secure Choice is completely voluntary. If an employee is not ready to start saving, they can opt out and re-enroll at any time.
“As Chair of the Assembly Committee on Aging, I commend Governor Hochul for launching the Secure Choice Savings Program, which offers working New Yorkers a simple and reliable way to plan for their financial future,” said Assemblymember Rebecca A. Seawright. “Too many older adults face economic insecurity in retirement because they lacked access to savings options during their working years. This program will empower employees to build stability and independence, ensuring that every New Yorker has the opportunity to age with dignity and peace of mind.”
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.