New York Secure Choice Savings Program
New Retirement Savings Requirement for Employers
New York State enacted legislation in 2021 establishing the Secure Choice Savings Program, a state-facilitated retirement savings requirement for certain private-sector employers. After several years of development, the program is now moving into full implementation, with mandatory compliance deadlines beginning in 2026. Since late 2025, the State has begun contacting affected employers directly, primarily through official notices sent by mail and email containing registration instructions and unique access codes, to prepare them for the upcoming requirements.
Under this law, certain private-sector employers must provide employees with access to a retirement savings program. Businesses that do not offer a qualified retirement plan may be required to participate in the State’s Secure Choice Savings Program.
The requirement is intended to ensure employees have access to a workplace retirement savings option. Employers can satisfy this obligation in one of two ways:
- Offering their own qualified retirement plan (such as a 401(k), 403(b), SEP IRA, or SIMPLE IRA), or
- Participating in the New York State Secure Choice Savings Program
What Is the New York Secure Choice Savings Program?
The New York Secure Choice Savings Program is a state-run retirement savings option for employees whose employers do not sponsor a qualified retirement plan. It was created to expand access to workplace retirement savings, particularly among workers at smaller businesses.
Secure Choice is not an employer-sponsored plan. Instead, it is a payroll-deduction arrangement in which employers facilitate contributions into individual Roth IRA accounts established in each participating employee’s name. The accounts belong to the employees, not the employer.
Eligible employees are automatically enrolled at a default contribution rate but may opt out, change their contribution level, or adjust investment selections at any time. Contributions are made from after-tax wages, and the accounts remain with employees even if they change jobs.
The program is funded entirely by employee contributions. Employers are not required and are not permitted to make matching contributions, manage investments, or provide financial advice. Employer responsibilities are primarily administrative, including registering for the program, providing employee information, and processing payroll deductions.
The State oversees program administration, including account management, investment options, and participant communications. The program is now being implemented statewide, with employer compliance deadlines rolling out through 2026.
Who Must Comply?
The program applies to private-sector employers (both for-profit and nonprofit) that meet all three of the following criteria:
- Employed 10 or more employees in New York at all times during the previous calendar year (including part-time and seasonal workers)
- Have been in business in New York for at least two years
- Do not currently offer a qualified retirement plan (such as a 401(k), 403(b), SEP IRA, SIMPLE IRA, or similar)
Employers with fewer than 10 employees are not required to participate, though they may voluntarily do so.
Already Offer a Retirement Plan? You Still Need to Act
Even if your business already sponsors a qualified retirement plan and is therefore exempt from participation, you are still required to certify that exemption through the Secure Choice online portal. To do so, you will need your Employer Identification Number (EIN) and the unique Access Code that the state will send you by email or mail.
Qualifying plans that exempt you from the program include 401(k) and other 401(a) plans, 403(a) qualified annuity plans, 403(b) tax-sheltered annuity plans, 408(k) simplified employee pensions, 408(p) SIMPLE IRAs, and 457(b) governmental deferred compensation plans.
Registration Deadlines
Whether you need to register for the program or certify an exemption, the deadlines are staggered based on the number of employees at your business:
| Employer Size | Registration / Exemption Deadline |
| 30 or more employees | March 18, 2026 |
| 15 to 29 employees | May 15, 2026 |
| 10 to 14 employees | July 15, 2026 |
The Secure Choice Board plans to contact each employer when it is time to register or certify an exemption, but employers should not wait for that notice to begin preparing.
Employer Compliance Obligations
For employers subject to the Secure Choice Program, responsibilities are primarily administrative and payroll-related. No employer contributions are required, and investment decisions are handled by the program administrator. Required actions include:
- Registering for the program by the applicable deadline or certifying an exemption if a qualified retirement plan is already offered
- Providing required employee information through the Secure Choice online portal
- Distributing program materials to eligible employees
- Enrolling eligible employees and processing opt-out requests
- Implementing payroll deductions for employee contributions
- Remitting deducted contributions to the program administrator each pay period
- Maintaining records of participation, opt-outs, and contribution activity
Key Program Details
The following details apply to employers and employees participating in the program
For Employees
- Eligible employees (age 18 and older with taxable wages) are automatically enrolled unless they opt out.
- The default contribution rate is 3% of gross income, deducted from after-tax wages and deposited into an individual Roth IRA.
- Employees have 30 days after enrollment to opt out, adjust their contribution rate, or customize their investment selections.
- Maximum annual contributions follow IRS Roth IRA limits: $7,000 for 2026, with a $1,000 catch-up for those age 50 and older.
- Accounts are portable; employees keep their IRA even if they change jobs.
- Employees will be charged a $28 annual administrative fee (billed quarterly) plus an annual asset-based fee ranging from 0.22% to 0.31%.
For Employers
- There is no cost to employers to facilitate the program.
- Employers are not permitted to make matching or discretionary contributions under Secure Choice.
- Employers do not act as fiduciaries, manage investments, or provide financial advice.
- Employer responsibilities are primarily administrative: register with the program, upload employee information, set up payroll deductions, remit contributions each pay period, and keep employee records up to date.
Penalties for Non-Compliance
While New York has indicated an education first approach during the initial rollout, the law authorizes civil penalties for employers that fail to register for the program or certify an exemption. Based on currently available guidance and legislative summaries, the estimated penalty structure may include the following:
- Initial Notice: Typically a written warning or notice of non-compliance.
- First Violation: Approximately $250 per employee.
- Second Violation: Approximately $500 per employee.
- Subsequent Violations: Up to $1,000 per employee.
Grace Period
If an employer receives a notice of non compliance, current guidance suggests a limited correction window, often referenced as approximately 90 days, to resolve the issue before financial penalties are assessed. Additional fines, starting around $100 per employee, may also apply for failure to maintain required enrollment and opt out records.
Enforcement procedures and penalty schedules are subject to final rules issued by the New York Secure Choice Savings Board. Employers should monitor official program communications for the most current requirements.
What You Should Do Now
With compliance deadlines underway, employers should take the following steps to prepare:
- Determine your status. Review your workforce size, how long your business has been operating, and whether you currently offer a qualified retirement plan. This will determine whether you need to register for the program or certify an exemption.
- Prepare for your exemption, if applicable. If you already sponsor a qualified retirement plan, gather supporting documentation so you can certify your exemption promptly through the portal.
- Coordinate with your payroll provider. Confirm that your payroll system can accommodate Roth IRA deductions, remit contributions on time, and track employee opt-outs.
- Organize your employee data. You will need to provide employee information through the Secure Choice portal. Preparing this data in advance will help streamline the registration process.
- Evaluate your alternatives. Employers that do not currently offer a retirement plan should consider whether Secure Choice or a private plan better serves their needs. The following section covers this in more detail.
Secure Choice vs. Sponsoring Your Own Plan
While Secure Choice satisfies the state mandate at no direct cost to employers, it does have limitations. Employers cannot match employee contributions, the annual contribution limits are lower than those of a 401(k), and employees who do not opt out will see an automatic 3% reduction in their take-home pay. For a full-time employee earning near minimum wage, that could mean roughly $80 less per month.
By contrast, offering a private employer-sponsored plan like a 401(k) gives you the flexibility to make matching contributions, allows higher contribution limits, may qualify your business for SECURE Act tax credits, and can serve as a powerful recruiting and retention tool. If you prefer the recruitment and retention advantages of a private plan, we recommend moving quickly; establishing a new plan takes time, and registration deadlines are approaching.
Key Resources
- Secure Choice Program Website: www.NewYorkSecureChoice.com
- Employer Registration & Verification: https://newyorksecurechoice.com/employers/program-details (use your EIN and Access Code)
- Help Center & FAQs: www.NewYorkSecureChoice.com/help
- Payroll Integrations: www.NewYorkSecureChoice.com/payroll
- State Program Board: securechoice.ny.gov
How We Can Help
Our team is here to help you navigate these new requirements. Whether you need assistance determining your compliance obligations, evaluating whether to enroll in Secure Choice or establish your own retirement plan, or coordinating with your payroll provider, please don’t hesitate to reach out. The deadlines are approaching quickly, and taking action now will ensure a smooth transition for your business and your employees.
