We wanted to alert you to a potentially dramatic change in retirement planning for Oregon businesses.
Oregon recently passed legislation creating a new retirement savings plan now known as “OregonSaves.” If a business does not already have a qualified retirement plan, OregonSaves requires it to enroll its employees in this new state-sponsored plan. Employee contributions on an “after-tax” basis would be withheld from payroll and then remitted to a Roth IRA program managed by the state. No employer contributions are required or allowed. All business having Oregon employees are assumed subject to this new plan and will need to register with the Savings Board.
As noted previously, your business is exempt from the OregonSaves program if you have a qualified retirement plan for some or all of your employees such as a 401(k), SEP, or SIMPLE plan. However, registration is still required even if exempt and will have to be renewed every three years.
Please note that your registration requires a state provided password. Oregon will mail your account password to you, so no action is required until your password has been received. At that time you will need to log in to register. Listed below are the implementation dates based on the number of your Oregon employees. Automatic enrollment of all employees must begin no later than 60 days after any non-exempt registration at an initial contribution rate of 5% of wages with annual increases of 1% beginning on January 1, 2019, up to 10% of compensation. Contributions are capped at the IRA limits, currently $5,500 for adults under age 50, and $6,500 for those older than 50.
For additional information, please contact our office or visit the OregonSaves website at the following address: https://www.oregonsaves.com/