Is it time to unplug from your PEO? Thinking about leaving your PEO’s 401(k)? Learn when to opt out, how to switch, and why a standalone plan may better fit your growing business. Overseeing employee benefits can be a lot to manage—especially with a business to run. That’s why many growing businesses outsource to a Professional Employer Organization (PEO) — streamlined benefits, simplified payroll, and less administrative overhead. But as your business grows, so do your needs—and what once felt like flexibility might now feel more like a constraint. If your benefits options feel limited, costs are hard to decipher, or you’re craving more control over your retirement plan and broader HR strategy, you might be ready to explore other options for your business. Below, we’ll dig into how PEOs work—and why you don’t have to sacrifice flexibility when it comes to your company’s retirement plan. What is a PEO? A PEO is a third-party organization that enters into a co-employment relationship with your business, in which the PEO will: administer payroll and taxes offer benefits like health insurance, 401(k) plans, and more manage HR compliance and risk mitigation For small and medium-sized businesses, this can be a game-changer—helping employers provide benefits without having to build out a full HR team, which takes time and money. How does a PEO 401(k) work? In general, PEOs offer access to a Multiple Employer Plan (MEP) or a Pooled Employer Plan (PEP). These structures group multiple businesses into a single retirement plan. By joining forces, small businesses may be able to access better pricing—and outsource plan administration. However, MEPs and PEPs may involve certain trade-offs—such as a limited investment menu, plan design restrictions, and less transparency into fees—since decisions are made at the pooled level. Employers who oversee their own 401(k) plan retain full control over investment selection, plan features, service providers, and participant support—allowing for a more tailored and strategic approach. If you’d like to learn more MEPs and PEPs, check out our in-depth guide. Can you pick your own 401(k) provider if you’re using a PEO? In short: yes. While PEOs often offer a default retirement plan, you can choose to set up and sponsor your own 401(k)—even if you continue using the PEO for other services like payroll, benefits, and HR support. This is called an “opt-out 401(k)" or a "standalone 401(k)." You’re still using the PEO for everything else, but your retirement plan stands on its own. Keep in mind that as a 401(k) plan sponsor, you would take on additional responsibilities, such as overseeing plan compliance and filing Form 5500. However, many modern 401(k) providers can handle much of the heavy lifting for you. Why businesses choose to go independent Companies often choose to set up their own 401(k) outside of a PEO for a few key reasons: More flexibility. You can design a plan tailored to your employees’ needs, with features like Roth contributions, automatic enrollment, or customized vesting schedules. Greater investment choice. You often have more options—and lower-cost options— when it comes to the fund lineup. Better fee transparency. Standalone plans typically provide clearer visibility into fees and plan costs. Greater employee engagement. Modern providers tend to offer more intuitive, digital experiences, better education tools, and more personalized retirement advice for employees. Ultimately, it’s about choosing a 401(k) that’s truly aligned with your team—and your business goals. Thinking about opting out of your PEO’s 401(k)? If you’re currently with a PEO but wondering if your retirement plan could be doing more for your employees, it may be time to explore a new 401(k) option. The good news: transitioning doesn’t have to be complicated—with the right support. Betterment at Work can help you design a flexible, easy-to-manage 401(k) plan that’s tailored to your business.

April 2025 market update: Tariff and investment insights Rising tariffs, market swings, and policy shifts fuel economic uncertainty—discover how diversification can help investors stay grounded. Former European Central Bank President Mario Draghi once described the challenge of decision making amidst ambiguity as: “You just do what you think is right and you temper…. In other words, in a dark room, you move with tiny steps.” For business leaders and investors, the economic landscape has appeared murky of late, and for good reason… The threat of tariffs has become a reality, not just a negotiating tactic, causing uncertainty to pervade expectations for the economy and markets. President Trump just rolled out his most expansive round of global tariffs yet, at levels worse than anticipated ahead of the April 2 announcement. Although USMCA-compliant goods—like dairy and sugar imports from Canada and Mexico—will continue to enjoy a 0% tariff under the trade agreement, non-compliant goods will be subject to higher tariffs. Other countries, including major U.S. trade partners such as China, Taiwan, Vietnam, India, and South Korea, will face significant tariff rates on exports to the U.S., all apparently over 20%. China has notably retaliated against the imposition of tariffs, levying their own 34% tariff on all imports from the US, matching the level of the White House’s reciprocal tariffs on Chinese products. Federal Reserve Chair Jerome Powell has warned that the impact of new tariffs is likely to be significantly larger than expected and could cause higher inflation as well as weaker growth. Read: Making sense of market volatility The state of economic uncertainty But uncertainty isn’t just showing up in market action—it’s in all kinds of data sets. To track uncertainty, researchers create indices that analyze both news reports and economic forecasts, using data to measure the extent of uncertainty. Two key measures—Headline Policy Uncertainty and Trade Policy Uncertainty (shown above)—reveal that economic uncertainty has climbed to its highest levels since the pandemic. Trade policy, specifically, has jumped to levels never before seen in as long as there has been available data, going back to 1960. As the economy shows signs of slowing (growth in Q4 of 2024 was +2.3% compared to +3.1% in Q3, and +3.0% in Q2), the ripple effects of uncertainty are showing up in key indicators of consumer and manufacturer sentiment. In the first quarter of 2025, the University of Michigan’s Consumer Sentiment Index for employment conditions nosedived to levels last observed during the global financial crisis of 2008. U.S. equity markets have clearly taken notice. The S&P 500 has sold off sharply, and even other risk assets such as crypto have plummeted. And, all of the Magnificent 7—the cohort of megatech stocks, including Amazon, Apple, Meta, and Google—have slid over 20% from the latest 52-week high. So, what does this mean for the market While markets have taken a shellacking so far this year, international stocks have served as some consolation. Year-to-date, international developed market stocks have outperformed their U.S. peers by over 10 percentage points. After U.S. stocks outpaced global markets in 2024, the tariff turbulence, as well as more attractive valuations and new stimulus measures from China and Germany, have flipped the script in early 2025. What does this mean for investors Diversify, diversify, diversify. While this kind of noise around trade policy isn’t normal, the market experiencing bouts of volatility is normal and something investors are required to manage over time. Although other asset classes, like international stocks and bonds, have not matched the performance of U.S. stocks in recent years, these assets can help dampen volatility in a period of heightened uncertainty. Diversification can help investors avoid being tied to any individual stock, asset type, or even a country’s performance. For example, the Betterment Core portfolio is globally diversified and has delivered 9.0% annual returns (after fees) since inception.1 Although the future might seem more unknowable right now, one thing we do know is that trying to time the market as policies change is a fool’s errand. Our investing team is here to keep you up-to-date on macro-trends and market insights.

The 401(k) employee engagement starter kit Here are 7 simple tools to help your employees get the most out of their 401(k) plans at Betterment. If you offer a 401(k) plan, making sure that your employees are engaged not only can improve their financial lives, but your business as well. With workers juggling competing financial priorities, we’ve seen that financial anxiety can impact people in every aspect of their lives, including their capacity to perform effectively in their jobs. Our 2024 Retirement Readiness report uncovered the need for employers to engage their employees when it comes to 401(k) education: Not only will engagement help your employees manage financial stress, but it will also help boost your workforce’s overall performance. If “employee engagement” sounds like a lot of work, don’t sweat it, we’ve got you covered. Use the seven tools in this playbook to help your employees feel comfortable navigating their 401(k) from day one. Your 401(k) starter kit: 7 tools to engage your employees Video: How to claim your Betterment 401(k) - Share this video with your employees. It walks them through claiming their account. Your employees will also receive a series of emails from Betterment, inviting them to claim their 401(k) account, but getting this video directly from you is a great way to nudge those who haven’t yet done so.. Video: Getting started webinar - Every month, our team at Betterment offers a live webinar where we walk through your employees’ 401(k). We’ll cover the importance of saving for retirement, how to use the platform, provide additional resources, and answer any questions your team may have. Resource center: Betterment.com/my401k - From 401(k) tricks to investing tips, our resource center has dozens of articles, videos, and more to help your employees navigate their financial lives. Video & article: How to pick a contribution rate - “How much from each paycheck should go into my account?” is a question every plan enrollee asks themselves (and we help them answer it). We highlight key considerations for employees to address when selecting a contribution rate. Article: How to rollover a 401(k) from a former employer - For employees with a 401(k) from an old employer, a rollover can sound daunting. In fact, in our Retirement Readiness Report, we found that 17% of employees don’t even know where their old 401(k) is, 22% don’t know how to do a rollover, and a whopping 34% with an old 401(k) plan have withdrawn it as cash, instead of rolling it into another retirement plan. In this article, we walk through why a rollover may make sense and the process to get started. Article: How to set up an emergency fund along with your 401(k) - Along with a 401(k), it’s recommended that people have three to six months of expenses saved in an emergency fund. We show employees three steps to help them figure out a number that works in their budget. . Article: Understanding required minimum distributions - For employees closer to retirement, required minimum distributions (RMDs) are important to start thinking about. In this article, we explain why the IRS requires RMDs and how they work. Start sharing these resources with your employees today. Together, we can help employees take control of their financial future.

Plan sponsor checklist: Key considerations for mergers & acquisitions Navigate 401(k) challenges during mergers and acquisitions with this guide for plan sponsors on compliance, plan decisions, and employee communication. M&A and your 401(k) Mergers and acquisitions (M&A) can shake things up at a company—including your 401(k) plan. But, with a bit of foresight, plan sponsors can help manage the transition smoothly. Here’s what you need to know to stay compliant and on track. Planning ahead Before an M&A deal, it’s important to evaluate the retirement plans currently in place for both companies. Oftentimes, in the sale agreement, there will be language that dictates what happens to the seller’s 401(k) plan.For instance, it may be noted that the seller’s plan will be terminated before the sale date. This helps ensure that all plan assets are distributed or rolled over appropriately, minimizing potential complications for the acquiring company and employees. Alternatively, the buyer may decide to merge the seller’s plan into their own, which requires a thorough review of both plans to identify differences in features, investment options, and compliance requirements. Understanding these details early allows plan sponsors to make informed decisions, reduce risks, and streamline the process for employees impacted by the transition. Understanding asset purchase vs stock purchase The structure of an M&A deal—whether an asset purchase or a stock purchase—can impact how 401(k) plans are handled during the transition. Asset purchases: The buyer chooses which assets and liabilities to take on, which will be defined in the asset purchase agreement. The seller usually keeps their retirement plan. Stock purchases: The buyer takes control of the entire company, including its retirement plan, which may require more attention post-merger. Think of it like buying a house: In an asset sale, the buyer can choose which furniture or fixtures to keep in the house. In a stock sale, the buyer takes everything. Now, let’s look at the asset sale from the seller’s perspective. The seller retains ownership and responsibility of the 401(k) plan. Even if the seller’s company is going out of business, their 401(k) plan needs to be addressed. Until the two plans are fully combined, the seller still has the risk and liability over the existing plan. Next, let’s look at a stock sale from the buyer’s perspective. During a stock sale, the buyer will inherit everything from the seller, including the 401(k) plan. In this scenario, it is common for the seller’s plan to be terminated before the sale. This would ensure that the buyer does not inherit an active 401(k) plan. If they do inherit the plan, they may be taking on more risk. In this scenario a buyer would now have two active 401(k) plans that they would have to manage. Terminating the seller’s plan is not possible once the buyer “owns” the 401(k) plan, since this would now be considered a “successor 401(k) plan”. The buyer has three options in this scenario: Freeze the acquired plan. This requires full maintenance of the plan, including the accounts, documents, annual Form 5500 filing, as well as any audits, but stops further contributions Merge the acquired plan into the buyer’s plan. This requires a close review of the merged assets, as well as the plan provisions to determine if any changes are needed to accommodate protected benefits. Keep the acquired plan as is. This means the buyer now operates two separate 401(k) plans, and has two sets of documents, two 5500 filings, and potentially two audits. The plan sponsor would also need to combine the plans for compliance testing purposes. How to manage risks and costs As with any major transition, managing costs and mitigating risks requires careful planning and collaboration. The acquiring party will want to budget for extra admin expenses during an M&A transition, such as recordkeeping fees and legal costs, to avoid unexpected financial strain. It’s also crucial to document key decisions to ensure compliance and reduce fiduciary (and litigation) risks. It could be beneficial to partner with experts, like ERISA attorneys, financial advisors, and recordkeepers, who can help you navigate the complexities of transitioning your 401(k) plan. Planning and understanding are everything. You’ll want to share updates with your employees in a timely manner. Let them know the timelines and what they can expect as you start the M&A transition. If you can, it would be helpful to designate an HR person for extra support during the merger, to help them make decisions about their retirement savings. While it is important to ensure participants have a seamless experience during any M&A situation, you want to plan ahead to avoid expensive corrections. The retirement plans involved in M&A deals can be tricky, but by analyzing the details, staying compliant, and seeking expert help, you can set up the merger or acquisition for long-term success.

2025 portfolio updates: What plan sponsors need to know Small updates to Core, Value Tilt, SRI, and Innovative Tech are coming soon. As part of Betterment’s investment oversight serving as your 3(38) investment fiduciary, our Investing team regularly reviews and updates our portfolio strategies to align with changing market conditions. As a fiduciary, Betterment is required to act in your employees’ best interests. We do this in part by regularly adjusting our portfolios' asset allocations, or the specific weights of asset classes (i.e., stocks and bonds) and subasset classes (large- cap stocks, long-term bonds, etc.). For 2025, we are implementing strategic adjustments across multiple portfolios that are guided by updated capital market assumptions and asset class expectations. Let’s quickly walk through our approach to portfolio management, and then we’ll preview the changes coming in the weeks ahead. How we evaluate and manage our portfolios Betterment runs a rigorous, quantitative process to formulate long-term expectations for both the returns and risk levels of various asset classes. Our aim is to maximize your expected return relative to risk, so that you’re compensated appropriately for the level of risk you take with your investing. From there, we simulate thousands of paths for the market, and average the optimal asset allocations for each to build more robust portfolio weights. This “Monte Carlo” technique is ideal for the areas of life where random variables are everywhere, areas like capital markets. It’s important to reiterate that things like interest rate shifts and federal fiscal policy can drive short-term market volatility in the months and year ahead, our portfolios are managed with a long-term outlook. We don’t chase trends, but rather we focus on helping your employees reach their investment goals. 2025 updates This year's portfolio updates, while much smaller in scope and scale than last year's, are no less important. Let’s take a closer look: Core Value Tilt All three SRI portfolios Innovative Technology Here's what's changing: More U.S. exposure While we don't advise going all-in on American markets, the forecasted risk-adjusted return for the U.S. remains strong in the long run (think: decades) relative to international markets. So similar to last year’s portfolio updates, we’re dialing down the international exposure for most portfolios. Those portfolios will see: Small increases in U.S. stock and bond allocations Small decreases in international emerging market stocks and bonds Small decreases in international developed market bonds More short-term corporate bonds The biggest change this year will be felt by portfolios with larger bond allocations. We expect U.S. short-term, high-grade corporate bonds to offer higher yields without undue increases in long-term risk, so we’re increasing the exposure to them while decreasing the weight of short-term U.S. Treasuries. The yields on these types of treasury bonds, which mature in a year or less, tend to fall right along with interest rates, and a lower interest rate environment is still expected in the long run. New innovation ETF Separately, we’re diversifying the Innovative Technology portfolio by adding a new actively-managed fund. This new ETF builds on themes like AI and biotech while adding more exposure to large-cap stocks and the Information Technology sector (hardware, software, etc.) as a whole. What this means for your employees The great thing about technology like ours is that it makes implementing updated portfolios simple. Our automated rebalancing will tax-efficiently transition employees’ portfolios to the new target weights over time. It’s yet another example of how we make it easy to be invested. Additional resources If you’d like to learn more about our approach to investing, you might want to check out these articles: Portfolio Construction Process: Core, Value, Innovative Technology ETF Selection Methodology SRI Methodology Innovative Technology Article and disclosures You can always review our 401(k) investment options here.

A 50-state guide to state-mandated retirement plans [2025] All but three states have either active mandates in place or are working towards implementing mandated retirement programs. Check your state to see how your business may be impacted. Table of contents: All active state mandate programs In-progress state mandate programs States with legislation being considered Unknown state mandate programs The retirement landscape is changing rapidly, with many Americans living longer but saving less for their golden years. One of the most significant developments in this space has been the rise of state-mandated retirement plans. These plans are designed to provide essential benefits to workers who may not have access to them through their employer. With a growing number of private workers not having access to these crucial benefits, states are increasingly requiring businesses to provide retirement plans to employees. In 2015, the Department of Labor (DOL) issued guidance to support the states' efforts to help promote retirement benefits within their respective states. What exactly are state-mandated retirement plans? In recent years, more states have passed legislation requiring businesses to provide retirement benefits for their employees. In these states, employers have the choice between enrolling their workers in the state-sponsored program or establishing their own workplace retirement plan through providers like Betterment. A state-sponsored plan usually involves an Individual Retirement Account (IRA) set up by the employer for participants to contribute. However, certain features may vary between states, so it's a good idea to research your state's specific program to ensure compliance. All but three states are currently working on legislation to implement these plans, which means that more and more Americans will have access to the retirement benefits they need. However, it's important to stay up-to-date on these changes, as failing to comply with the new rules could result in hefty fines. For more details on how state-mandated plans could impact you, read: What state-mandated plans could mean for your small business. All active state mandate programs The following states have enacted legislation and have either implemented or are in the process of implementing a state-mandated program. California Plan Name: CalSavers Status: Mandate in place Deadlines: Deadline passed for 5+ employees; December 31, 2025, for 1-4 employees Details: Not all employers are required to participate. Only employers who do not sponsor a retirement plan and have one or more California employees must join CalSavers. Fines: $250 per eligible employee Illinois Plan Name: Illinois Secure Choice Status: Mandate in place Deadlines: Deadline passed for 5+ employees Details: Not all employers are eligible. Only private-sector employers who do not offer a qualified retirement plan, had at least five employees in every quarter of the previous calendar year, and have been in business for at least two years must facilitate Illinois Secure Choice. Fines: $250 per employee for the first calendar year the employer is non-compliant Oregon Plan Name: OregonSaves Status: Mandate in place Deadlines: Deadline passed for 1+ employees Details: All Oregon employers are required by law to facilitate OregonSaves if they don’t offer a retirement plan for their employees. Fines: $100 per affected employee, with a $5,000 maximum fine per year Connecticut Plan Name: MyCTSavings Status: Mandate in place Deadlines: Deadline passed for 5+ employees Details: Eligible Connecticut businesses are required to facilitate MyCTSavings if they don’t offer a retirement plan and have 5 or more employees. Fines: Penalties may be imposed. Bill is currently in the legislature. Colorado Plan Name: Colorado SecureSavings Program Status: Mandate in place Deadlines: Deadline passed for 5+ employees Details: All Colorado employers who have been in business for at least 2 years, have 5 or more employees, and don’t offer a qualified retirement plan for their employees are required by law to facilitate Colorado SecureSavings. Fines: $100 per affected employee with $5,000 maximum fine per year Maine Plan Name: Maine Retirement Savings Program Status: Mandate in place Deadlines: Deadline passed for 5+ employees Details: Every Maine employer with 5 or more employees will need to facilitate the program if they don’t already offer their own qualified retirement savings plan. Fines: Penalties for failing to enroll employees go into effect on July 1, 2025, as follows: $20 per employee from July 1, 2025, to July 30, 2026 $50 per employee from July 1, 2026, to July 30, 2027 $100 per employee on or after July 1, 2027 Virginia Plan Name: RetirePath Status: Mandate in place Deadlines: Deadline passed for 25+ employees Details: State law requires Virginia employers with 25 or more eligible employees who have operated for 2 or more years and not offered a qualified, employer-sponsored retirement plan must now register and facilitate RetirePath. Fines: $200 per eligible employee New Jersey Plan Name: RetireReady NJ Status: Mandate in place Deadlines: Deadline passed for 40+ employees; November 15, 24 for 25+ employees Details: Every New Jersey employer with 25 or more employees will need to register with the program if they don't already offer their own qualified retirement savings plan. Fines: Businesses that don’t follow state-mandated retirement legislation within one year will receive a written warning. Each following year of non-compliance will result in fines of: 2nd year: $100 per employee 3rd and 4th years: $250 per employee 5th year and beyond: $500 per employee Delaware Plan Name: Delaware EARNS Status: Mandate in place Deadlines: October 15, 2024 for 5+ employees Details: Every Delaware employer with five or more employees will need to facilitate the program if they don’t already offer their own tax-qualified retirement plan. Fines: $250 per affected employee, with $5,000 maximum fine per year Maryland Plan Name: Maryland Saves Status: Mandate in place Deadlines: December 31, 2024 for 1+ employees Details: Businesses are required to register if they have been in operation for at least 2 calendar years, have at least one employee over the age of 18, and use an automated payroll system. Fines: Maryland does not impose a penalty, instead, they use an incentive, offering businesses that enroll $300 per year, waiving the annual filing fee for Maryland businesses. Vermont Plan Name: Vermont Saves Status: Mandatory for Vermont employers with 5+ employees who do not offer a qualified retirement plan. Deadlines: March 1, 2025 for 5+ employees Details: Employees are automatically enrolled in a Roth IRA with a default contribution rate of 5% that increases by 1% annually up to 8%, unless they opt out or select a different rate. Employers are not required to contribute but must facilitate payroll deductions. The program is free for employers and integrates with existing payroll systems. Fines: $10 per employee before October 1, 2025, then $20 per employee until September 30, 2026. After October 1, 2026 employers could pay up to $75 per employee. In-progress state mandate programs Nevada Plan Name: Nevada Employee Savings Trust Status: Will be mandatory Deadlines: July 1, 2025 for 1,000+ employees; January 1, 2026 for 500-999 employees; July 1, 2026 for 100-499 employees; Jan 1, 2027 for <100 employees Details: In 2023, the Nevada legislature passed SB305 which mandates the establishment of a retirement savings program for private sector employees. Fines: Information not available at this time. Massachusetts Plan Name: Massachusetts Defined Contribution CORE Plan Status: Nonprofit mandatory only Deadlines: Currently effective, but no deadline yet Details: Massachusetts nonprofit organizations with 20 employees or fewer may be eligible to adopt the CORE Plan. The CORE Plan is structured as a 401(k) Multiple Employer Plan (MEP). The MEP structure allows each adopting employer to join the CORE Plan under one plan and trust by executing a Participation Agreement. Fines: Not applicable. New York Plan Name: New York State Secure Choice Savings Program Status: Will be mandatory Deadlines: The SCSP is under development and there is no enrollment requirement at this time. Details: If you’re an employer in New York, state laws require you to offer the Secure Choice Savings Program if you have had 10 or more employees during the entire prior calendar year, have been in business for at least two years, and have not offered a qualified retirement plan during the prior two years. Fines: Information not available at this time. Minnesota Plan Name: Minnesota Secure Choice Retirement Program Act Status: Will be mandatory Deadlines: Expected to launch by Jan 1, 2025 Details: On May 19, 2023, Governor Walz signed into law a bill establishing the Minnesota Secure Choice Retirement Program. Employers with 5 or more covered employees that do not sponsor a retirement plan for their employees are required to participate in the plan. Fines: Information not available at this time. Hawaii Plan Name: Hawaii Retirement Savings Program Status: Will be mandatory Deadlines: Implementation in progress Details: The Hawaii Retirement Savings Program is a state-facilitated payroll-deduction retirement savings plan where individuals can choose to opt into the program. Employers will be required to provide covered employees with written notice that they may opt into the program, withhold covered employees’ contribution amount from their salary or wages, and transmit covered employees’ payroll deduction contributions to the program. Fines: Information not available at this time. Rhode Island Plan Name: Rhode Island Secure Choice Retirement Savings Program Act Status: Will be mandatory Deadlines: Implementation in progress Details: Private-sector employers with five or more employees will be required to offer a qualified retirement plan or opt into the state-run program. Fines: Information not available at this time. Washington Plan Name: Washington Saves Status: Will be mandatory Deadlines: Expected to launch Jan 1, 2027 Details: Employers must offer their employees access to a state-facilitated IRA if they don’t offer a retirement savings plan. Employees would be enrolled automatically unless they opt out. The program is slated to launch in 2027 and Washington will continue to offer its small-business retirement marketplace in the meantime. Fines: Penalties beginning after January 1, 2030. New Mexico Plan Name: New Mexico Work and Save IRA Status: Voluntary Deadlines: 7/1/24 deadline, but still voluntary Details: Work and Save is a voluntary savings program for private-sector and nonprofit employers and employees and the self-employed facilitated through a Roth Individual Retirement Account. Fines: Not applicable. Missouri Plan Name: Missouri Show-Me MyRetirement Savings Plan Status: Voluntary Deadlines: Expected to launch September 1, 2025 Details: Missouri introduced HB 1732 in 2022, which would create a voluntary MEP for small employers with 50 or fewer employees. Fines: Not applicable. Pennsylvania Plan Name: Keystone Saves Status: Will be mandatory Deadlines: To be determined pending bill passage by Pennsylvania State Senate Details: Employers will be required to offer a state-sponsored IRA or other qualified retirement plan. Employers do not have to participate if they have an established retirement program, have fewer than five employees, or have been in business less than 15 months. Fines: According to the current bill, covered employers shall not be subject to a penalty for not participating in the program. Georgia Plan Name: Peach State Saves Status: Voluntary Deadlines: To be determined pending bill passage Details: In February 2025, Georgia introduced SB 226, requiring businesses with 5+ employees and over one year in operation to offer a state-sponsored IRA or another retirement plan unless they already have one.The default payroll deduction is a Roth IRA with a 5% contribution rate. The state may add a traditional IRA option and adjust the contribution rate, increasing it annually by up to 1% (maximum 10%). Fines: Not applicable. States with legislation being considered The following states have legislation currently being considered for state-mandated reprograms: Alaska, Arizona, Arkansas, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming Unknown state mandate programs The following states have not yet made clear if they intend to mandate a state retirement program. We will actively update this article as legislation changes. Alabama Florida South Dakota What do state-mandated plans mean for your business? Now is the time to plan ahead if you do not offer a retirement plan for your employees, especially if you operate in a state with an upcoming mandate deadline. In most cases, you’ll have one of two options: Implement your state’s plan: You’ll need to follow your state’s procedures for enrolling and offering a retirement plan, usually an IRA, to your employees. Implement a 401(k) plan: A second option is to skip the state plan, and instead, offer a 401(k) plan from a private provider like Betterment at Work. The benefits of offering a 401(k) Offering a 401(k) has become a tablestakes benefit as employers attempt to attract and retain talent in today’s competitive environment. State mandated plans are designed by the government to address a lack of savings among employees. The purpose is admirable, but state mandated plans may lack some of the benefits of a modern, 401(k) plan, which include: Higher contributions limits to help people save more. A wider range of investment options depending on the number of funds available. The option to provide an employer matching contribution. (Did you know? A 401(k) employer match is the #2 most desired benefit among employees. Learn more.) Learn how to offer a modern 401(k) today At Betterment, we make it easy for small and mid-market businesses to provide a scalable retirement plan. With a Betterment 401(k), you get: Simplified administration, payroll integrations, fiduciary support, and compliance testing Customizable plan features and optional employee benefits Service and support at every step Learn more