How does CalSavers work?
The CalSavers program is a retirement plan controlled, offered, and managed by the State of California.
If you don’t offer a qualifying company retirement plan, you’ll need to enroll in CalSavers for your employees. CalSavers is an IRA-based plan that requires all employees to be automatically enrolled. Employees can opt out of CalSavers.
Who’s exempt from the CalSavers law?
You are exempt if your business offers a 401k or other qualified retirement plan such as a 403b, a Simple IRA, or a Payroll Deduct IRA with auto-enrollment.
If you have fewer than 5 employees, your business is also exempt.
What’s the Icon Savings Plan?
Icon is the easiest and most affordable way to offer a retirement savings plan.
Icon is a payroll-deduct IRA with auto-enrollment, and is built with modern digital technology.
Icon removes high costs, complexities, and administrative burdens from employers. Likewise, you have no federal filing requirements and no fiduciary responsibilities. There are no matching contributions, and the employee annual contribution limit is $6,000, or $7,000 for employees over 50 years old.
For employees, Icon delivers an easy-to-use plan with a browser-based interface. Savings are invested in a portfolio tailored to the needs of the individual. The Icon auto-advisor monitors and automatically rebalances a diversified portfolio of ETFs (Exchange Traded Funds) from leading asset managers like Vanguard and BlackRock.
You can enroll in about 5 minutes. And to set up your plan takes about 30 minutes. Icon integrates with your payroll and provides a streamlined dashboard for easy plan administration.
Your employees will be automatically enrolled, as required by the state mandate, and they can opt-out at any time.