Connecticut’s retirement mandate requires most private-sector employers without a qualified retirement plan to register with MyCTSavings, the state-run Roth IRA program, and automatically enroll eligible workers through payroll deduction. The Connecticut retirement mandate’s employer requirements apply if your business had five or more employees in Connecticut on October 1 of the prior calendar year and paid at least five of them $5,000 or more in taxable wages that year. The program is administered by the state Comptroller under Connecticut General Statutes ยง 31-418, and the employer’s role is administrative: register the business, upload the employee roster, deduct contributions, and remit them on time.1Justia Law. Connecticut Code Title 31 Chapter 574 – Section 31-418
Which Businesses Are Covered
You are a qualified employer if two conditions are met based on the prior calendar year. First, you employed five or more people in Connecticut on October 1. Second, at least five of those employees each earned $5,000 or more in taxable wages during the year.2MyCTSavings. Program Details The $5,000 figure applies per employee, not as a total payroll number. Six workers on the books with only four earning at least $5,000 apiece puts you below the threshold.
For-profit and nonprofit employers both count. The statute excludes the federal government, Connecticut state government and its political subdivisions, municipalities, municipal housing authorities, and any employer that did not exist during both the current and preceding calendar year.3Connecticut General Assembly. Connecticut Code Chapter 574 – Connecticut Retirement Security Authority
If You Already Offer a Retirement Plan
Businesses that already sponsor a qualified retirement plan do not need to enroll employees in MyCTSavings. Qualifying plans include 401(k)s, 403(b)s, SIMPLE IRAs, and SEP plans. You still have to act, though. Exempt employers must log in to the MyCTSavings portal using their unique access code and EIN and certify the exemption so the state records your status.4MyCTSavings. Employers Ignoring the notice, even when you’re exempt, leaves you in the enforcement pipeline.
Registration Deadline
Connecticut rolled the mandate out in waves by employer size. If the state already notified your business in an earlier wave, your deadline has passed and you should register immediately. Newly eligible businesses have until August 31, 2025.2MyCTSavings. Program Details Penalties for noncompliance start applying in 2026.
How to Register
Before opening the employer portal, have your Federal Employer Identification Number, your payroll provider’s name, and your pay frequency ready; the setup flow asks about your pay cycle.5MyCTSavings. User Registration After the business profile is complete, you move on to the employee roster. For each eligible worker, you’ll enter full legal name, Social Security number, date of birth, and contact information so the state can create individual accounts and send enrollment notices.
Once the roster is submitted, the state contacts each listed employee directly and gives them 30 days to opt out before deductions begin.2MyCTSavings. Program Details After that window closes, you begin withholding contributions from each participating employee’s paycheck. Some payroll providers integrate directly with MyCTSavings, which automates most of the recurring work.
Which Employees Get Auto-Enrolled
An employee qualifies for automatic enrollment once they are at least 19 years old and have worked for your business for at least 120 days.6MyCTSavings. Program Details The 120-day period filters out short-term hires. Once someone crosses that threshold, enrollment happens by default; the employee doesn’t need to sign paperwork or take any action.
Employees can opt out at any time, and can re-enroll later by contacting MyCTSavings directly.7MyCTSavings. What Happens If I Opt Out? Employers are not responsible for processing opt-out decisions. That communication happens between the worker and the program.
Deducting and Remitting Contributions
The default savings rate is 5% of gross pay, deducted after taxes because the account is a Roth IRA. Employees can adjust the rate down to 1% or up to 100% of pay, subject to IRS caps.8MyCTSavings. Contributions Employers do not contribute to or fund these accounts; your only role is deducting the employee’s own money and forwarding it to the program.
The transmission deadline is strict. Withheld amounts must reach MyCTSavings no later than ten business days after the deduction is taken.3Connecticut General Assembly. Connecticut Code Chapter 574 – Connecticut Retirement Security Authority Build this step into your payroll workflow before the first deduction runs, because the penalty for holding onto the money is severe.
Enforcement and Penalties
The state Comptroller oversees compliance.1Justia Law. Connecticut Code Title 31 Chapter 574 – Section 31-418 Two violations carry consequences for employers.
Failing to enroll a covered employee exposes you to a civil action brought by the employee, the Labor Commissioner, or the Comptroller to compel enrollment and recover legal costs. Failing to transmit withheld contributions within ten business days is treated as a violation of Connecticut’s wage payment statute, which can carry both civil liability and criminal penalties.3Connecticut General Assembly. Connecticut Code Chapter 574 – Connecticut Retirement Security Authority Deducting money from a paycheck and not forwarding it is legally equivalent to withholding wages, so the exposure is the same as failing to pay workers on time.
For businesses that have not registered at all, the state implemented a three-step enforcement process effective in mid-2025. It begins with an initial notice from the Comptroller, followed by a second notice, and ends with a final notice before penalties are assessed. Penalties vary by employer size and accrue for each year of noncompliance after 90 or more days. Registering, or certifying your exemption, before the first notice arrives is the cleanest way to stay out of that sequence.