New York Retirement Plan Mandate: What Employers Need to Know for 2026
If you run a business in New York with 10 or more employees, a new state requirement now applies to you. New York's Secure Choice Savings Program mandates that private employers who don't already offer a retirement plan register for the program or certify their exemption. Registration is already underway, with deadlines rolling out through the summer of 2026 based on company size.
Here's what employers and employees need to know.
What Is the NY Secure Choice Savings Program?
Secure Choice is New York's answer to the retirement savings gap. It requires eligible private employers to either offer their own qualified retirement plan or enroll employees in the state-run program. Employees are automatically enrolled at a 3% contribution rate through payroll deduction into a Roth IRA, though they can opt out at any time.
Who Must Participate
Employers must comply if they meet all of the following criteria: they've been in business for at least two years, they had at least 10 employees in New York during the previous calendar year, and they don't already offer a qualified retirement plan.
Registration Deadlines
Deadlines are staggered by company size:
30 or more employees: March 18, 2026
15 to 29 employees: May 15, 2026
10 to 14 employees: July 15, 2026
What Employers Need to Do
Covered employers have a short list of responsibilities. They need to register on the Secure Choice website or certify an exemption if they already offer a qualified plan. They also need to set up payroll deductions for employee contributions and remit those contributions to the program on an ongoing basis.
Employers should keep a few things in mind. Since Secure Choice is a Roth IRA, employer contributions aren't permitted and employers aren't required to match employee contributions. Employers are, however, responsible for distributing employee information materials about the program.
What Employees Should Know
Employees who work for a covered employer are automatically enrolled at a 3% default contribution rate. Participation isn't mandatory. Employees can opt out at any time, and can also re-enroll later if they change their mind. Contribution rates can be adjusted whenever an employee wants. Contributions go into a Roth IRA, employers can't add matching funds, and the program offers a limited set of investment options.
What This Means for Your Business
If your business falls under the mandate and doesn't already offer a qualified retirement plan, it's important that you act now. Missing a registration deadline can result in compliance issues for your business.
If you're not sure whether your business is affected or where to start, give us a call or send an email. At Reynolds + Rowella, our team of compliance experts are happy to walk through your situation and help you get into compliance as quickly as possible. Contact us for more information.
