If your employer doesn’t offer a 401(k) and you’re in one of the growing number of states with a mandatory retirement program, you’re likely already enrolled in a state auto-IRA whether or not you’ve noticed the deduction on your pay stub.
How Many States Actually Have This Now
As of 2026, 22 states have enacted programs for private-sector workers without an employer plan, with 17 of those specifically structured as auto-IRA programs and 15 fully operational — collectively holding upward of $2.75 billion in state-run retirement accounts. This isn’t a fringe pilot program anymore; it’s become the default retirement-savings mechanism for millions of workers at small businesses that never set up a 401(k).
How the Programs Actually Work
Employers above a certain size who don’t already offer a qualifying retirement plan are required to either register for their state’s program or adopt a private plan that satisfies the state mandate. OregonSaves, the first program of its kind, auto-enrolls employees into a payroll-deducted Roth IRA at a default 5% of gross pay unless the employee opts out or changes the rate. CalSavers, now the largest by assets with roughly $1.55 billion under management across about 590,000 funded accounts, required employer registration by the end of 2025 for businesses that don’t already offer a plan.
What’s New for 2026
New York’s Secure Choice Savings Program launched participation mandates in October 2025, with the largest employers facing registration deadlines starting in March 2026, and requires participation for businesses with 10 or more employees. Minnesota’s auto-IRA program opened to all eligible employers and workers on January 1, 2026, becoming the most recent state to go fully live.
What This Means If You’re the Employee
Because contributions default to a Roth IRA structure, you’re contributing after-tax dollars, and the account is yours — it moves with you between jobs the same way any IRA does, unlike a 401(k) tied to a specific employer. If you’d rather not participate, you can opt out entirely or adjust the contribution rate; if you’d rather contribute more than a state program’s IRA limits allow, comparing it against other employer-sponsored account types and your regular IRA contribution room is worth doing before assuming the auto-enrolled default is your only option.
What This Means If You’re the Employer
Check your specific state’s threshold and deadline — they vary by employee count and rollout date — and confirm whether you’re already required to register. Ignoring the mandate isn’t a passive option in states that have moved past the pilot phase; penalties for non-compliance are real and the registration process itself is generally simple.
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