If you’re like us, you may not have heard about New York State’s Secure Choice Savings Program, a retirement savings program for private-sector employees who do not have access to a retirement plan at work. Through automatic enrollment and payroll deduction, employees can save in their own Roth Individual Retirement Account (IRA).
To be clear – this is not an ad for this program. This is something that all eligible NYS employers will be expected to facilitate in the coming months and which will impact their employees. So here’s what you need to know.
What is Secure Choice?
The NYS Secure Choice Savings Program is a state-sponsored retirement savings program structured as an automatic-enrollment Roth IRA. Contributions are funded through payroll deductions, but employers are not expected to contribute, manage investments, or assume fiduciary responsibility.
This program was established in 2021 by an amendment to the NYS General Business Law, but not officially launched until fall 2025 and goes into effect in spring/summer 2026.
What Do Employers Need to Know?
All private-sector NYS employers who –
- Have 10 or more employees
- Do not currently offer a qualified retirement plan (i.e. 401k, 403b, IRA, SEP)
- Have been in business for at least two years
– must register for and facilitate this program for their employers. The employer’s role is limited to facilitating employee access to this program by registering with the program, updating their employees on the program, and coordinating with payroll providers to submit employer contributions for payroll deductions each pay period.
Also, eligible employers must auto-enroll their employees at the state’s default savings rate of 3% of their gross pay.
If your company is eligible for this program, NYS has probably already notified you.
The deadline to register for the program is based on the number of employees the business has.
- 30 or more employees – March 18, 2026
- 15 to 29 employees – May 15, 2026
- 10 to 14 employees – July 15, 2026
Learn more on their website – Employer Program Details
What Do Employees Need to Know?
All eligible employees – individuals who are 18 years or older and who have earned taxable wages from an eligible NYS employer – will be automatically enrolled in this savings program.
To be clear, if your company already offers a retirement plan, they are not required to participate in this program, so you will not be eligible for this program. This is only if your employer meets the eligibility requirements of this program.
Employers are required to automatically enroll their employees in this program at the state’s default savings rate of 3% of their gross pay.
While participation is voluntary, it’s up to the employee to opt out. Employees will be provided with 30 days notice before automatic payroll deductions begin. At that time, employees can opt out or adjust their rate to a level they feel comfortable with (up to 10%). If you opt-out, you can re-enroll at any time.
Roth IRA’s are a type of retirement account funding with after-tax wages. That means you pay taxes now instead of when you withdraw the money later.
New York Secure Choice has an annual asset-based fee that ranges from 0.22% to 0.31%, depending on your investment choices. This means you’ll pay between $0.22 to $0.31 for every $100 in your account. There is also an annual per-account fee of $28, which is charged quarterly at $7.
Learn more on their website – Employee Program Details
