Gov. Jay Inslee of Washington signed a invoice Thursday that can facilitate entry to computerized enrollment particular person retirement accounts for staff within the state’s non-public sector who in any other case lack entry to employer-based retirement plans.
Adoption of the laws, often known as SB 6069, provides Washington to the rising pool of states that require no less than some employers to supply entry to tax-advantaged office retirement financial savings for each full- and part-time staff.
Washington’s “auto-IRA” technique, primarily based on the language within the laws, follows within the latest footsteps of states resembling Minnesota and Nevada. Somewhat than requiring employers to create conventional 401(ok) plans or pensions, the state will create a central Washington Saves program, to which staff could make payroll contributions.
Washington’s program, like these in lots of states, consists of options to assist contributors spend money on diversified retirement portfolios.
Below the textual content of the laws, the default contribution charge is to be “not lower than 3%, nor greater than 7%, of wages.” This system additionally consists of 1% annual computerized escalation to a cap of 10% of wages, and the accounts are transportable.