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Eligible California Employers with 5 or More Employees Must Comply with CalSavers Retirement Savings Trust Act by June 30, 2022

California law requires that employers doing business in California that do not offer a 401(k) plan must register under the CalSavers Retirement Program (the “CalSavers Program” or “Program”) and provide employee census information in order for CalSavers to automatically enroll eligible employees in a retirement savings program. By June 30, 2022, all employers with five or more employees must comply.

CalSavers gives employees the opportunity to have the employer direct contributions into an IRA account maintained by California. The employer will be directed to automatically deduct these contributions from the employee’s earnings and remit them to the CalSavers Program. Contributions are made on an after-tax basis to a Roth IRA, which is administered by the State of California.

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