Preparing for Washington Saves - Coming 2027

Beginning in 2027, some Washington employers will be required to provide employees with access to a retirement savings program through Washington Saves. While the program is still being finalized, now is a good time for employers to understand what the requirements may mean for their organization and employees.

Washington Saves is designed to help workers build retirement savings through automatic payroll deductions into an individual retirement account (IRA). Eligible employees are automatically enrolled but can choose to opt out at any time. The program is intended for employers that do not currently offer a qualified retirement plan, such as a 401(k), SEP IRA, or SIMPLE IRA.

For employers who meet the program requirements, participation is designed to be straightforward. There are no employer fees, contributions, or fiduciary responsibilities associated with facilitating the program. Employers will simply be responsible for registering, providing employee information, and processing payroll deductions.

For many organizations, Washington Saves may also serve as an opportunity to evaluate whether a traditional retirement plan could be a better fit for their workforce. Offering a qualified retirement plan can provide additional flexibility, customization, and employee benefits while satisfying the state's requirements.

Washington Saves is expected to launch in July 2027. As more details become available, Business Health Trust will continue to share updates and resources to help employers understand their options and prepare for implementation.

Frequently Asked Questions (FAQs)

• As an employer, do I have to participate in Washington Saves?

  State law requires employers to register and facilitate employee access to Washington Saves if you meet the following criteria:

  • Operated in Washington for 2 or more years

  • Maintain a physical presence in Washington State

  • Employed workers who together worked at least 10,400 hours in the previous calendar year (roughly equivalent to 5 full-time employees)

  • Do not offer a qualified retirement plan

• What qualified plans would make me exempt?

  If you offer any of these qualified retirement plans, you're not required to facilitate Washington Saves:

  • 401(a) – Qualified Plan (including profitsharing plans and defined benefit plans)

  • 401(k) – Qualified plans (including multiple employer plans or pooled employer plans)

  • 403(a) or 403(b) – Qualified Annuity Plan or Tax-Sheltered Annuity Plan

  • 408(k) – Simplified Employee Pension (SEP) plans

  • 408(p) – Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA Plan

• How much is this going to cost me?

  Washington Saves charges no fees to your business. Employer contributions are not allowed.

• What if my employee says that they do not want to participate?

  Employee participation is completely voluntary— they can opt out anytime. As a covered employer, you’ll still need to make the program available if you don’t offer a qualified plan. Your specific responsibilities will be detailed in program rules before the program opens.

• Can I contribute on behalf of my employees?

  No. Employers are not allowed to contribute to an employee account or match employee contributions. If you wish to make contributions to a retirement plan on behalf of your employees, you can explore offering an employer-sponsored retirement plan.