OregonSaves Explained and Requirements for Employers

OregonSaves is a retirement savings program sponsored by the state of Oregon, facilitated by employers and funded by employee investments via payroll deductions. OregonSaves is a Roth IRA retirement account with automated enrollment. Employee participation is completely voluntary, and money in workers’ accounts is 100 percent fully vested and portable if they change jobs.

• This site is offered as a public service to inform and educate Oregon Consumers about the upcoming 2019 Oregon Retirement Savings Mandate.
• In conversations initiated by our former service provider, the state and Ascensus were not able to reach terms agreeable to both parties on proposed changes to the OregonSaves program structure.
• Any business with employees in Oregon that does not offer an employer-sponsored retirement plan is required to facilitate OregonSaves for its employees.
• The materials provided by OregonSaves will be simple and explain what the program is, what choices employees have, and where they can go to get more information and answers to any questions they have.

If your business is exempt, you’ll have to certify your exemption online — the exemption certificate is valid for three years. This is completed by entering a unique access code provided https://adprun.net/oregonsaves-retirement-savings-plan/ by the State of Oregon and your employer identification number on the OregonSaves website. During the exemption process, you are required to indicate the reason for the exemption.

What are the employee-eligibility requirements for OregonSaves?

Sumday and its affiliates are responsible for day-to-day program operations. Participants saving through OregonSaves beneficially own and have control over their Roth IRAs, as provided in the program offering set out at /savers. Newly registered businesses will receive a notification that they are required to sign up for OregonSaves or certify exemption from the program. The next deadline for newly eligible businesses will be on July 31, 2024. As OregonSaves is rolled out with large employers, this feature may become available if enough plan participants and employers ask for it. OregonSaves does provide the option to invest in a traditional IRA, after all.

• Please note that very small employers will not be required to facilitate until the year 2020, and that OregonSaves is working with employers to consider how facilitation can be made as simple as possible.
• It is meant to help employers that don’t have the time, money, or resources to offer a 401(k) plan.
• “Whereas, if people have an opportunity to save through a plan at work, 70 percent of people do that,” says Read.
• Making contributions with after-tax dollars makes sense for young retirement savers who have a high potential for income growth.
• For example, Human Interest offers you access to all these types of funds and more (depending on your employer’s choices).

Launched as a pilot program in 2017, OregonSaves became the nation’s first state-mandated retirement savings program. Designed for Oregonians that did not have access to a workplace-based retirement plan, OregonSaves quickly became the model retirement program for numerous states. Today, nearly 118,000 Oregon workers are enrolled in OregonSaves, with the program now available to businesses with a minimum of one employee.

What happens if your company already offers a 401(k)?

This site is offered as a public service to inform and educate Oregon Consumers about the upcoming 2019 Oregon Retirement Savings Mandate. No offer of securities is made nor intended on OregonSavesHelp.com. Neither Real Benefits Group, Inc. nor Aliat provides investment advice.

At Your Service

Employers simply pass information along to employees and handle payroll deductions. Through OregonSaves, employers can help their employees take responsibility for their own financial futures. OregonSaves is designed to combine some of the best features of employer plans and IRAs, making it easier to save by lowering the barriers that often keep people from saving. For example, to start an IRA on your own, you have to go seek it out.

This covers investment fund fees, program administration by expert IRA specialists, customer and data service staff, and Oregon Retirement Savings Board costs. After 30 days of being employed employees are auto-enrolled in the standard savings program and investment options. Tobias Read, current Oregon state treasurer, was an early champion of the program when he served in the state Legislature. The initial feasibility study found that 66% of Oregon businesses didn’t have a retirement plan for employees.

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Previously, a buyer would need a tax liability at least $7,500 in a given year to get the full benefit of the credit. That’s because the credit could reduce your tax bill to zero, but it would never result in the IRS actually paying you. But contributions to a 401(k), for instance, could easily mean your AGI is actually under the limit, she explains.

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Employers have 60 days from the date of hire to add a new employee in OregonSaves or accept their election to opt out of the program. With OregonSaves, it’s easy to save and plan for your retirement dreams. You can even invite a payroll representative to help you facilitate this process.

The time needed to complete payroll deductions for the program should be similar to the time needed to make other types of payroll deductions employers already do. Yes, if your employees are 18 or older, have earned income, and are eligible for an IRA, they can sign up themselves for an account at saver.oregonsaves.com. They can contribute through their bank account or by check, and they may be able to contribute through payroll deductions if you as an employer are willing to set up a deduction for them. Yes, any business with employees in Oregon must facilitate the State’s program for its employees, unless it already offers a qualified, employer-sponsored retirement plan. Saving through a Roth IRA will not be appropriate for all individuals.