What Employers Need to Know About New York Secure Choice Savings Program

New York employers that do not currently offer a workplace retirement plan will soon face new compliance responsibilities. The New York Secure Choice Savings Program introduces mandatory retirement savings access for certain businesses, requiring eligible employers to facilitate payroll deductions into employee-owned retirement accounts.

While the program is designed to improve retirement readiness across the state, it also creates new administrative considerations for employers—particularly small and mid-sized organizations that have not previously sponsored retirement benefits.

This guide explains how the program works, which employers are covered, and what steps businesses should take to stay compliant.

What Is the New York Secure Choice Savings Program?

The New York Secure Choice Savings Program is a state-facilitated retirement savings program that allows employees to save for retirement through automatic payroll deductions into a Roth Individual Retirement Account (IRA).

The program was created to address a significant coverage gap. An estimated 3.5 million private-sector workers in New York currently lack access to an employer-sponsored retirement plan. By leveraging payroll deduction, the state aims to increase participation in retirement savings without requiring employers to establish or fund a traditional retirement plan.

Although the program is administered by the state, participation is tied directly to employer payroll processes—making it an important compliance issue for affected businesses.

Which Employers Are Required to Participate?

Participation in New York Secure Choice is mandatory for covered employers. A business is considered covered if it meets all of the following criteria:

• Employs 10 or more eligible employees in New York State during the prior calendar year

• Has been in business for at least two years

• Has not offered a workplace retirement plan (such as a 401(k), 403(b), or SIMPLE IRA) in the past two years

Employers that already sponsor a qualified retirement plan are generally exempt, provided the plan remains active and compliant.

Employer Registration Deadlines

New York has established phased registration deadlines based on employer size. Covered employers must register by the applicable date:

• 30 or more employees: March 18, 2026

• 15 to 29 employees: May 15, 2026

• 10 to 14 employees: July 15, 2026

Missing these deadlines could expose employers to penalties once enforcement begins, making early preparation essential.

Key Features of the New York Secure Choice Program

While Secure Choice expands retirement access, it differs significantly from employer-sponsored retirement plans.

Roth IRA Structure

Employee contributions are made on an after-tax basis into a Roth IRA. Standard IRA contribution limits apply, and employers are not permitted to make matching or profit-sharing contributions.

Automatic Enrollment

Employees are automatically enrolled once payroll deductions begin, typically at a 3% contribution rate, unless they choose to opt out or adjust their contribution.

Limited Investment Options

The program offers a restricted menu of investment choices selected by the state. Employees who do not actively choose an option are defaulted into the program’s designated investment structure.

No Federal Tax Credits for Employers

Unlike employer-sponsored retirement plans, participation in a state-administered IRA does not qualify for SECURE Act or SECURE 2.0 tax credits. Employers receive no federal incentives for facilitating the program.

Employee Eligibility Requirements

Employees are eligible to participate in the New York Secure Choice Savings Program if they:

• Are 18 years of age or older

• Are employed in New York State

• Earn wages subject to New York payroll reporting

Participation is voluntary for employees, even though employer facilitation is mandatory.

Employer Responsibilities Under Secure Choice

Although employers are not required to contribute financially, they do have ongoing responsibilities, including:

• Registering with the program by the assigned deadline

• Enrolling eligible employees

• Processing payroll deductions accurately and timely

• Submitting employee contributions to the program

• Maintaining employee communications and opt-out records

For employers with limited HR infrastructure, these administrative tasks can still require careful coordination with payroll providers.

How Secure Choice Compares to Employer-Sponsored Retirement Plans

Secure Choice is designed as a baseline solution, not a comprehensive retirement benefit. Contribution limits are lower, investment flexibility is minimal, and employers cannot enhance the benefit with matching contributions.

By contrast, employer-sponsored plans such as 401(k)s allow higher contribution limits, employer matching, broader investment choice, ERISA protections, and access to federal tax credits—making them a more strategic tool for recruitment, retention, and executive planning.

For some employers, adopting a qualified retirement plan may not only exempt them from Secure Choice requirements but also deliver greater long-term value to both the business and its workforce.

Next Steps for New York Employers

As the New York Secure Choice Savings Program continues to roll out, employers should proactively assess:

• Whether they meet the definition of a covered employer

• Their registration deadline and payroll readiness

• Whether establishing an employer-sponsored retirement plan may be a better alternative

At Taylor Benefits Insurance Agency, we help New York employers evaluate retirement plan obligations alongside group health insurance and total benefits strategy—ensuring compliance without sacrificing flexibility or long-term value.

Final Thought

New York Secure Choice expands retirement access, but it also introduces new compliance responsibilities for employers that do not currently offer a retirement plan. Understanding your obligations now—and exploring strategic alternatives—can help you avoid last-minute disruptions while building a stronger, more competitive benefits package.