Saver Resources

And after launching in November 2017, OregonSaves became the first state-provided, auto-enrollment IRA program in the country. The program is free to employers and funded entirely by employee contributions, at a rate of about 1% ($1 per $100 contribution) annually. This covers investment fund fees, program administration by expert IRA specialists, customer and data service staff, and Oregon Retirement Savings Board costs. Since Oregon businesses merely serve as program facilitators, there are no assessed program fees. In addition, Oregon employers are prohibited from contributing any employer-matching funds to an employee’s savings plan.

Starting in 2019, OregonSaves offered a traditional IRA to savers who need to recharacterize their prior year Roth IRA contributions. Making a stronger push for this option is an easy fix and, to be fair, the Oregon Retirement Savings Board still has time to develop and adjust any materials to do so. Because of this, many employers are having trouble with OregonSaves as it requires manual 401(k) administration. As a result, many Oregon businesses are turning to integrated 401(k) solutions that have a 360 integration with payroll, eliminating the need for things like manual data entry and reducing the administrative burden. If you do not offer a retirement plan for your employee, sign up for OregonSaves now.

Fast facts about OregonSaves

There are also no age limitations for contributions to a Roth, meaning you can keep saving after age 70.5 as long as you’re still earning income. At the close of every pay period, employee contribution data needs to be provided to OregonSaves. Your Oregon payroll company should have the ability to set up a retirement plan feed or API integration that allows this data to be sent to OregonSaves automatically once payroll is finalized. A Roth Individual Retirement Account (IRA) is a specific type of retirement account that you fund with your after-tax earnings, a percentage of which are deposited into your Roth IRA.

• During the registration phase, it will monitor compliance by reaching out to businesses and providing technical assistance to meet deadlines and requirements.
• For instance, if an employer established their business in Oregon on September 15, 2024, their OregonSaves registration deadline is July 31, 2025.
• Oregon was the first state to go “live” with its program, in July 2017.
• At the close of every pay period, employee contribution data needs to be provided to OregonSaves.
• All OregonSaves social media activities are the sole responsibility of the Board.

Explore what corporate payroll services offer and how to choose the right provider to streamline payments, taxes, and compliance. When the above information is complete, you will receive an Onboarding Complete message. Once onboarding is complete, you’ll have access to the Employer Dashboard, where you can manage current employees, add new employees, and manage and submit employee contributions. By clicking on one of the social media icons, you are leaving the OregonSaves website, maintained by Vestwell and are being redirected to a social media site solely maintained by the Oregon Retirement Savings Board (“Board”). Vestwell, the program administrator for OregonSaves, does not monitor or endorse the Board’s social media activities. All OregonSaves social media activities are the sole responsibility of the Board.

What type of retirement savings program is OregonSaves?

Contributions are made through payroll deductions into a Roth Individual Retirement Account (IRA) that follows the saver throughout their career. OregonSaves is the state of Oregon’s retirement savings program designed to give employers an easy way to help their employees save for retirement. To date, Oregon has 8,186 employers submitting payroll deductions and 138,276 workers with funded accounts (see Table 1). Newly eligible businesses will receive a notification that they are required to sign up for the program. Employers who already offer a qualified plan or choose to start one can certify their exemption from the program. All Oregon employers are required by law to facilitate OregonSaves if they don’t offer a retirement plan for their employees.

• Once approved, a Certificate of Exemption is valid for three years from its original date of filing, as long as the employer continues to offer a qualified plan.
• The first $1,000 in contributions is defaulted into a money market fund; contributions above this amount are defaulted into a target date fund.
• This means that the employee can change jobs or even more out of state and continue to contribute to the account if they desire.
• Participants saving through OregonSaves beneficially own and have control over their Roth IRAs, as provided in the program offering set out at

Using this schedule, Oregon employers must provide eligible employees informational materials about OregonSaves at least 30 days before the initial enrollment date. Employers will receive those materials from the Plan Administrator at least 60 days before the initial enrollment date. To determine your deadline, use the number of employees in your most recently filed Oregon Quarterly Tax Report (Form OQ). Offered by the State of Oregon, OregonSaves shouldn’t be confused with a pension plan and has no connections to the Oregon Public Employee Retirement Fund (PERS).

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

As of 2020, over a third of Oregonians lack retirement savings plans at work, and nearly 1 out of every 5 seniors in Oregon relies on Social Security alone. Given the increasing cost of living, the need for more robust retirement savings options for Oregon workers is clear. At the end of the 30-day period, we will notify you of their choices and send a reminder to begin payroll deductions, and submit contribution information and funding for the employees who choose to stay in the program. Employers who provide a qualified retirement plan or have no W2 employees should certify their exemption from the program using their provided Access Code. We believe that everyone deserves access to a secure financial future, which is why we make it easy to provide a 401(k) to your employees.

The financial downsides of OregonSaves

OregonSaves was created to provide easy access to a retirement plan for the more than one million Oregon workers without access to one through their employer. The plan was also designed to create a low-cost way for employers to offer retirement benefits to their employees and to self-employed individuals. The State’s goal is to make the account set up process clear and easy for employers. During the registration phase, it will monitor compliance by reaching out to businesses and providing technical assistance to meet deadlines and requirements. Once an account is set up, employers are responsible for its ongoing account maintenance, employee payroll deductions and IRA contribution submissions. For instance, if an employer established their business in Oregon on September 15, 2024, their OregonSaves registration deadline is July 31, 2025.

Which Businesses are Affected?

According to the OregonSaves website, all Oregon businesses, regardless of size, must facilitate the OregonSaves retirement program unless they already offer a qualified, employer-sponsored retirement plan. OregonSaves is a oregon saves requirements government-sponsored retirement plan that launched in 2017. Since its inception, Oregon employers who meet certain criteria are required by law to offer a qualified, employer-sponsored retirement plan or enroll their employees in the program. Many retirement plans offer access to low-cost index funds (the Human Interest average for allocation profiles is 0.07%). For example, the Vanguard Total Stock Market Index Admiral (VTSAX) expense ratio was 0.04% as of April 2021.

Are There Other Requirements Outside of Offering a Retirement Plan?

LLC, an SEC-Registered Investment Adviser, and is not intended to be construed as investment advice. Most individuals who are 18 years or older and have earned wages in Oregon for at least 60 days are eligible to participate in OregonSaves. Your business should have received notifications that you are required to sign up for OregonSaves or certify exemption from the program.

Learn about how OregonSaves enables family-owned Dahle Orchards to provide an important benefit that helps employees stay financially secure at no extra cost. If an employee does not meet Roth IRA requirements or wishes to contribute more, they have the option to set up their account as a traditional IRA, which does not have an annual earnings limit. Although your OregonSaves account was designed to be managed online, we understand that there may be times that you prefer to do things offline. It is unlawful practice for an employer to fail to administer the OregonSaves program. Noncompliant employers are subject to investigation by the Oregon Bureau of Labor and Industries and a $100 fine per employee up to $5,000. If you missed your deadline, register your business online today or reach out to our call center for assistance.

OregonSaves: Understanding Oregon’s state-mandated retirement savings program

Similarly, if you are single, head of household, or married filing separately and make less than $138,000 up to these limits. Refer to this chart if your modified AGI is outside these thresholds. The OregonSaves program reaches out to businesses to notify them of their upcoming registration date, and the verification code received in that notification is the access code, mentioned above.