Colorado passed a new Secure Savings Program law that will be launched in early 2023.

What is the Colorado Secure Savings Program?

The Colorado Secure Savings Program mandates any private sector business with five or more W2 employees, that have been in business for at least two years, and not currently providing a qualified retirement benefit (Simple IRA, 401(K) or 403(B) plan) will now be required to comply and offer one or enroll their employees in the State’s program.

How Does the Colorado Secure Savings Program Work?

The program involves offering a payroll-deducted Roth IRA that will feature automatic enrollment and automatic escalation for participants. Because the state-mandated program was designed to close the coverage gap between employees who have access to a retirement plan and those who do not, private sector companies in Colorado will be required to comply unless they offer a different qualified plan instead. The program will not integrate with any payroll provider (manual upload of contribution to payroll).

Is the Colorado Secure Savings Program Mandatory?

Enrolling in the Colorado Secure Savings Program is not mandatory.  Employers who don’t want to participate in Colorado Secure Savings Program do have other options to satisfy the mandate. Another qualified plan, like a 401(k), satisfies the mandate while offering business owners more flexibility and potentially better alignment with business goals. Not to mention, 401(k) plans can be tax-advantaged for both the business and the plan participant. With many other perks and benefits, a 401(k) plan is a great option to consider for those looking to avoid Colorado Secure Savings participation.

What If An Employer Doesn’t Comply?

Employers in Colorado will want to stay on top of their Colorado Secure Savings registration deadlines, as penalties for non-compliance can add up quickly. Employers who do not comply with the mandate will be subject to fines which the State is still determining.

How To Know If Your Business Falls Under the Requirements Of This New Law

  • Your business has been open for at least two years.
  • You have at least five W2 employers who are:
    ◦ part or full-time
    ◦ are at least 18 years old
    ◦ have been employed by a Colorado employer for at least 180 days.


There are many benefits for employers to offer a 401(k) to employees and a large reason to start up a 401(k) in 2022 is that the IRS is offering employers with less than one hundred employees a tax credit for the first three years they offer the benefit. The tax credit that employers may qualify for is up to $15,000. This credit can help offset the administration costs to offer a 401(k) or 403(B) plan.