Colorado Secure Savings is mandatory for employers who meet all three of the state’s tests: you’ve been in business in Colorado for at least two years, you had five or more W-2 employees at any point during the prior calendar year, and you haven’t offered a qualified retirement plan during that two-year window.1Colorado General Assembly. Colorado Secure Savings Plan Act – Bill Text Miss any one of those, and the mandate doesn’t apply. Meet all three, and you’re required to facilitate the program or certify an exemption.
Who Counts as a Covered Employer
The law reaches businesses, nonprofits, and other enterprises operating in Colorado. The employee count includes anyone who receives a W-2, full-time or part-time. Sole proprietors, independent contractors paid on a 1099, and other non-W-2 workers don’t count toward the five-employee threshold.
The two-year operation requirement means a brand-new business isn’t immediately subject to the mandate. Once you cross both the two-year mark and the five-employee mark in a year when you haven’t sponsored a qualified plan, the obligation kicks in. Facilitating the program costs the employer nothing.2Colorado SecureSavings. Employers
Employers Who Are Exempt
If your business already offers a qualified retirement plan, the mandate doesn’t apply. The exemption covers a broad list of plan types: 401(k), 401(a), 403(a), 403(b), SEP plans under IRC § 408(k), SIMPLE IRAs under IRC § 408(p), and 457(b) deferred compensation plans.3Colorado General Assembly. Colorado Secure Savings Program – Exemption Provisions Employers in a legally compliant multiple employer plan are also exempt.
Exempt doesn’t mean invisible. The state still expects you to certify the exemption, confirming that you sponsor a qualifying plan. The certification is designed to be minimal and leans on existing compliance channels rather than a new reporting layer.3Colorado General Assembly. Colorado Secure Savings Program – Exemption Provisions
Registration Deadlines
Colorado phased the program in. Deadlines for existing employers have already passed. The most recent wave covered newer businesses, which were required to register by May 15, 2025.4Colorado SecureSavings. Program Details The state notifies employers directly when they’re due to register, so if you’ve recently crossed the two-year or five-employee threshold, watch for mail or email from Colorado SecureSavings with your access code.
If your deadline has already passed and you haven’t registered, the best move is to register now through the Colorado SecureSavings portal rather than wait for enforcement.
Penalties for Skipping It
Employers who neither register nor certify an exemption face fines of up to $100 per eligible employee per year, capped at $5,000 total per calendar year. Enforcement begins no earlier than one year after the program launches or one year after the employer was scheduled to enter, whichever is later. For most businesses covered in the initial rollout, that grace period has already run.
The state cross-references labor and tax records to spot noncompliance. Given that facilitating the program costs nothing, absorbing repeated $5,000 penalties for skipping it is the expensive option.
What Facilitating the Program Involves
Registration runs through the Colorado SecureSavings portal. You’ll need your Federal Employer Identification Number and the access code the state sent you. Once logged in, you enter payroll information for each eligible employee, including the identifying details needed to open individual Roth IRA accounts. After you submit, keep the confirmation receipt for your records.
From there, the state takes over most of the employee-facing work. Colorado SecureSavings notifies your workers directly, explains the program, and gives them a 30-day window to opt out before any money is deducted from a paycheck.5Colorado State Treasurer. Employer Program Overview Your role is limited to running the payroll deductions and remitting them. You have no claim on employee funds and no access to their accounts.
One point worth flagging for your workforce: because the accounts are Roth IRAs, employees whose income exceeds the federal Roth phase-out range could run into excess contribution penalties at tax time. The program’s own materials note that saving through a Roth IRA “will not be appropriate for all individuals.”2Colorado SecureSavings. Employers Higher-earning employees may want to opt out or consult a tax professional before their first deduction.