If you are a California resident or have your own business, you may be looking to get into some retirement savings program. For many people, this means diving into what is known as CalSavers, which is a type of program made for alleviating the retirement crisis that many employees in the private sector are worried about. The more you learn about CalSavers in Riverside, the easier it will be for you to make some decisions as you move forward.
Understanding the Need
As it develops, the retirement crisis has turned into a crisis on a national level, with California being one of the states most vulnerable. There are estimates now showing that a significant portion of the 40 million residents living within the state does not have access to a retirement plan sponsored by their employers. This could be due to the high cost of living and stagnant wages, contributing to the already low retirement savings rates. To add to that, there is notable inaccessibility for a retirement savings option.
Recent polls have shown that about 75% of small businesses within the state would support a savings program, but nothing viable has become available. Enter CalSavers for Californians.
This is a state-run program offering Roth IRA options for private-sector workers based in California with employers that are not already providing any savings plans for retirement. This program started piloting in November of 2018 and finally opened up taking registrations in July of 2019.
Do Employers Have to Offer Employees Retirement Plans?
It used to be that employers in the private sector were not mandated to bring their workforce retirement plans. However, many states are now putting forth legislation that requires the option of a qualified retirement savings deal. If you are in the state of California, then you may want to see what a Riverside CalSavers plan can do for you, your business, and your employees.
Is Everyone Able to Contribute to CalSavers Riverside?
Anyone who works for an employer in California that is CalSavers-eligible and fits in with the following criteria can join in on the program:
- Must have an earned income source
- Must be at least 18 years of age, or older
- Must have a bank account used for making contributions
- Must provide personal information to CalSavers, such as name, social security number (or ITIN), home address, and date of birth
You should also know that CalSavers is only mandatory if you have a business that employs at least five people, and you do not otherwise offer a retirement savings deal that is qualified by the registration deadline of June 30, 2022. If you have over 50 employees, that deadline is June 30, 2021, and for people having more than 100 employees, the deadline was June 30, 2020.
Do you still have questions when it comes to CalSavers Riverside and all of your options? If so, then we are here to help at The 401k Company! You can contact us by calling (858) 220-1505, and you will be one step closer to taking control of your future.