Retirement State Mandate Resource Center

Be prepared for state requirements and explore your options

Many states have already enacted state-facilitated retirement savings programs for private sector workers. The majority of these programs are mandatory, but employers in all program states retain the option of offering their own retirement plan.

Offering an employer-sponsored retirement plan has helpful benefits for both employers and employees. When deployed effectively, it can help your employees with their retirement readiness – and be a powerful recruiting and retention tool. Small businesses with under 100 employees starting a 401(k) now also have access to a significant tax credit through the SECURE Act.

Whether your business is starting its first retirement plan or looking to upgrade an existing retirement plan, HUB can help you take that big step forward. Contact us to review your options today.

401(K) VS State IRA

Differences Between 401(k) Plans and State-run Roth IRAs

401(k)

Roth IRA

Availability

Most employers can contribute

Employees can contribute

Only employees can contribute

Employer Advantages

Flexible plan design and vesting schedule

Tax deductible contributions

Possible tax credit for start-up costs

Enhanced contribution options for owners and highly compensated employees

Payroll integration

Attract and retain top talent

No year-end process

No cost to employer

No fiduciary liability

Employee Advantages

Higher contribution limits

Tax savings with pretax deductions from paycheck

Employer contributions

Easy, online setup

Distribution options such as loans and hardship

ERISA protection from creditors

No vesting schedule

Easy, online setup

Disadvantages

Annual notices, plan testing, and maintenance may be required

Cost to employer

No employer start-up cost tax credit

Lower contribution limits

Owners and highly compensated employees may not be able to contribute

Cost to employee

No ERISA protection from creditors

Differences Between 401(k) Plans and State-run Roth IRAs

401(k)

Roth IRA

Availability

Most employers can contribute

Employees can contribute

Only employees can contribute

Employer Advantages

Flexible plan design and vesting schedule

Tax deductible contributions

Possible tax credit for start-up costs

Enhanced contribution options for owners and highly compensated employees

Payroll integration

Attract and retain top talent

No year-end process

No cost to employer

No fiduciary liability

Employee Advantages

Higher contribution limits

Tax savings with pretax deductions from paycheck

Employer contributions

Easy, online setup

Distribution options such as loans and hardship

ERISA protection from creditors

No vesting schedule

Easy, online setup

Disadvantages

Annual notices, plan testing, and maintenance may be required

Cost to employer

No employer start-up cost tax credit

Lower contribution limits

Owners and highly compensated employees may not be able to contribute

Cost to employee

No ERISA protection from creditors

Small Business

HUB Retirement Select

HUB Retirement Select is a fully bundled retirement plan that takes the guesswork out of plan administration and investment selection. Our service options accommodate for-profit and nonprofit companies of all sizes—from owner-only businesses to those with hundreds of employees.

ERISA 3(38) Investment Management

When you choose HUB Retirement Select, you’ll have an ERISA 3(38) Investment Manager who provides the investment menu for your retirement plan – saving you time and informing you on the funds in your plan.

Intentional Plan Design

We incorporate design features that recognize human behavioral weaknesses and work to counteract their impact. HUB Retirement Select’s default investment offering takes your employees’ evolving needs into consideration.

Fiduciary Risk Support

Plan administration can be challenging to navigate without the appropriate resources. HUB Retirement Select offers access to the guidance you need at a price point appropriately scaled for your business.

Quarterly Resources

You’ll receive a quarterly monitoring report that includes tools and analytics that make it easy to monitor and optimize your plan, and an economic update to help you understand the bigger picture.

401(K) VS State IRA
Small Business

Differences Between 401(k) Plans and State-run Roth IRAs

401(k)

Roth IRA

Availability

Most employers can contribute

Employees can contribute

Only employees can contribute

Employer Advantages

Flexible plan design and vesting schedule

Tax deductible contributions

Possible tax credit for start-up costs

Enhanced contribution options for owners and highly compensated employees

Payroll integration

Attract and retain top talent

No year-end process

No cost to employer

No fiduciary liability

Employee Advantages

Higher contribution limits

Tax savings with pretax deductions from paycheck

Employer contributions

Easy, online setup

Distribution options such as loans and hardship

ERISA protection from creditors

No vesting schedule

Easy, online setup

Disadvantages

Annual notices, plan testing, and maintenance may be required

Cost to employer

No employer start-up cost tax credit

Lower contribution limits

Owners and highly compensated employees may not be able to contribute

Cost to employee

No ERISA protection from creditors

Differences Between 401(k) Plans and State-run Roth IRAs

401(k)

Roth IRA

Availability

Most employers can contribute

Employees can contribute

Only employees can contribute

Employer Advantages

Flexible plan design and vesting schedule

Tax deductible contributions

Possible tax credit for start-up costs

Enhanced contribution options for owners and highly compensated employees

Payroll integration

Attract and retain top talent

No year-end process

No cost to employer

No fiduciary liability

Employee Advantages

Higher contribution limits

Tax savings with pretax deductions from paycheck

Employer contributions

Easy, online setup

Distribution options such as loans and hardship

ERISA protection from creditors

No vesting schedule

Easy, online setup

Disadvantages

Annual notices, plan testing, and maintenance may be required

Cost to employer

No employer start-up cost tax credit

Lower contribution limits

Owners and highly compensated employees may not be able to contribute

Cost to employee

No ERISA protection from creditors

HUB Retirement Select

ERISA 3(38) Investment Management

Intentional Plan Design

Fiduciary Risk Support

Quarterly Resources

You’ll receive a quarterly monitoring report that includes tools and analytics that make it easy to monitor and optimize your plan, and an economic update to help you understand the bigger picture.

Retirement Programs by State

Many states looking to address the U.S. retirement savings gap have passed legislation mandating retirement benefits for private sector employees.
Click on the name of your state below to see how state mandates can affect you and your business.

Retirement Programs by State

Search by State

Source: Georgetown University’s Center for Retirement Initiatives

updated as of 1/6/23

Source: Georgetown University’s Center for Retirement Initiatives

updated as of 1/6/23