15 States Closing Retirement Savings Gaps With Auto-IRAs

4. Connecticut

Also among the oldest in operation, the MyCTSavings program was established in 2016 and amended in 2019 and 2022.

Employer participation is mandatory for those with five or more employees, subject to a number of qualifying conditions, including that the employer does not currently offer a qualified plan and has at least five employees that make $5,000 or more in taxable wages.

The program is based on auto-enroll Roth IRA accounts, with a 3% default contribution. Employer contributions aren’t permitted.

While the program is not available to employers with fewer than five employees, self-enrollment is available for interested individuals.

The employer pilot program began Oct. 25, 2021. The program launched formally on April 1, 2022, utilizing a wave approach. The third wave, affecting employers with between five and 25 employees, was originally required to register by March 30, 2023, but the deadline was extended to Aug. 31, 2023.

Credit: myctsavings.com website