CalSavers: California retirement savings plan mandate

MKG Insurance Agency

MKG Insurance Agency offers privately owned employers defined benefit plans and business owners retirement plans.

Safe Harbor 401(k)s are designed to allow owners and highly compensated employees (generally owners and those making over $120,000) to contribute up to the maximum dollar limit as their 401(k) elective deferral without regard to what other employees contribute. These plans allow the key employees to contribute up to the maximum dollar limit of $20,500 for 2022 as their 401(k) elective deferral without regard to what the other employees contribute. The maximum deferral for 2022 is $27,000 if a participant is age 50 or over

https://mkginsuranceagency.com/business-owner-retirement-plans/

An important deadline is on the horizon for California business owners. By June 30, 2022 employers with five or more employees are required to have a retirement plan in place for workers — either through a private-market option, like a 401(k), or through the state-run CalSavers program

CalSavers: California retirement savings plan

A by-product of state-mandated retirement legislation, CalSavers is designed to improve the financial security of Californians working in the private sector. It also presents an opportunity for small business owners who otherwise wouldn’t have been able to afford the overhead or administrative costs of a retirement plan to keep employees engaged and attract new talent.

What is CalSavers?

CalSavers is a retirement savings program sponsored by the State of California, facilitated by businesses and funded by employee savings. It has no employer fees or fiduciary responsibility and minimal administrative upkeep, making it relatively simple for businesses to participate.

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