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CalSavers versus a Traditional 401k

  • by Arman Vahdatinia
  • on Apr 3, 2023

Did you know…
CalSavers, the State of California’s mandated retirement savings program, extends to any small business with 5 or more full or part time employees.

The mandate has been in effect for 9 months, but many growing small employers still have questions.

A bit of background…
The California Legislature established CalSavers in 2016 as a way to guarantee that all working Californians have access to financial retirement security. CalSavers achieves this goal by creating a portable and low-cost option for workers to invest in their future.

Specifically, CalSavers requires California businesses that employ five or more employees to do one of the following:
(1) offer a retirement plan to their employees and opt out of CalSavers; or
(2) provide their employees with access to CalSavers.

If the employer fails to comply, they will be subject to a minimum penalty of $250 per employee, with an additional $500 per employee if requirements are not met within 90 days of the initial penalty.

At a glance…


To review additional comparative highlights, click here.

We can help…
Bedrosian & Associates has 20 years of experience helping clients establish and maintain corporate retirement plans. Whether it’s navigating CalSavers vs a traditional 401k, or even reviewing your current retirement plan, let us bring our expertise to you and your employees.

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