INSIGHTS Connecticut Retirement Plan Mandate

By Richard Han, EA

Did you know that Connecticut-based businesses with five or more employees are now required to opt into the state-based retirement plan? MyCTSavings is Connecticut’s new state-sponsored retirement savings program. It gives businesses a convenient way to help their employees save for the future with no additional fees for the employer to set up. The savings program is voluntary for employees — they can stay automatically enrolled or opt out and re-enroll later. Eligible employees:

• Are at least 19 years old.
• Minimum annual salary of $5,000.
• Perform services for work within Connecticut.
• Have been employed for at least 120 days.

MyCTSavings makes it easy to set up in 3 easy steps:

1. Register:Use the “Register Now” link below.
2. Set up:Upload payroll and employee information to the system and submit your employees’ savings contributions levels. You can even invite your payroll representatives or a delegate to help you facilitate this process.
3. Update:All you’ll need to do once you’re set up is basic ongoing maintenance. This includes submitting your payroll details every pay period and keeping your employees’ payroll contributions and staff list up to date. That’s it!

Employers offering qualified retirement plans to their employees are exempt from participating but must certify that exemption by clicking on the following link and filing: Certify Exemption. Businesses with 5-25 employees have a registration deadline of March 30^th, 2023, to complete. Otherwise, the state may impose penalties. To enroll, you must register here: Register Now. For general questions, please visit the MyCTSavings FAQ’s website by clicking the link: FAQs. Have questions? Please get in touch with a Reynolds + Rowella advisor today!  

Reynolds + Rowella is a regional accounting and consulting firm known for a team approach to financial problem solving. As Certified Public Accountants, our partners foster a personal touch with our clients. As members of DFK International/USA, an association of accountants and advisors, our professional network is international, yet many of our clients have known us for years through the local communities we serve. Our mission is to operate as a financial services firm of outstanding quality. Our efforts are directed at serving our clients in the most efficient and responsive manner possible, delivering services that exceed the expectations of those we serve. The firm has offices at 90 Grove St., Ridgefield, Conn., and 51 Locust Ave., New Canaan, Conn. For more information, please contact Elizabeth Bresnan at 203.438.0161 or email.