Quick Summary
- Colorado SecureSavings is Colorado’s state-administered automatic-enrollment payroll deduction Roth IRA program.
- The mandate generally applies to businesses that employed five or more employees at any time during the previous calendar year, have operated for at least two years, and have not offered a qualified retirement plan during the preceding two years.
- The May 15, 2026 registration deadline for newly eligible businesses has passed. Employers receive a program notice containing their access code and registration information.
- A noncompliant employer may be fined $100 per eligible employee per year, up to $5,000 per calendar year.
- An employer may certify an exemption if it offers a qualified retirement plan. A SIMPLE IRA is expressly included among qualified plans; a standalone payroll deduction IRA does not establish the exemption.
Introduction
Colorado SecureSavings requires certain Colorado employers that do not offer a qualified retirement plan to facilitate payroll deductions into employee Roth IRAs. Covered employers may instead offer a qualified retirement plan and certify an exemption from the state program.
Whether the requirement applies depends on employee count, length of time in business, and recent retirement-plan coverage. This article explains the current registration deadline, penalties, employer responsibilities, qualified-plan alternatives, and exemption process.
For a customized retirement plan, connect with a small business expert.
What Colorado SecureSavings Is
Colorado SecureSavings is a state-facilitated automatic-enrollment payroll deduction Roth IRA program. The Colorado Secure Savings Program Board governs the program, and Vestwell Government Savings handles day-to-day program administration.
Covered employers register, provide employee information, and remit payroll deductions. The program establishes employee Roth IRAs and communicates with employees about participation, contribution elections, and investment options.
Employee participation is voluntary. Employees may opt out or change their contribution and investment elections under the program’s rules. Employer contributions are not permitted, and employers do not select investments or manage employee accounts.
Colorado SecureSavings is one compliance option. An employer may instead offer a qualified retirement plan and certify an exemption. Employer-sponsored plans have their own contribution, documentation, and administrative requirements.
Which Employers Must Comply With Colorado SecureSavings?
A for-profit or nonprofit business operating in Colorado is generally covered when all three conditions apply:
- It employed five or more employees at any time during the previous calendar year.
- It has been in business for at least two years.
- It has not offered a qualified retirement plan to any employees during the preceding two years.
For program purposes, an employee is generally an individual who is at least age 18, has worked for the employer for at least 180 days, and earns wages subject to Colorado income tax.
An employer that offers a qualified retirement plan can certify an exemption. A business with fewer than five employees or less than two years in operation can also certify an exemption if it receives a program notice. The state program determines whether the coverage or exemption requirements are met.
Colorado SecureSavings Deadlines and Penalties
Colorado SecureSavings lists May 15, 2026, as the registration deadline for newly eligible businesses. Businesses notified before January 1, 2026, are already past their assigned deadlines. Each employer notice provides the program access code and registration information.
A noncompliant employer may be fined $100 per eligible employee per year, up to $5,000 per calendar year. Fines cannot begin until at least one year after the employer’s registration date or scheduled program entry date, whichever is later. A fine also cannot be assessed earlier than three months after the first notice of noncompliance.
An employer that receives a program notice can register and facilitate employee payroll deductions or certify an exemption based on a qualified retirement plan or another applicable exemption. The state program determines whether the exemption requirements are met.
Your Two Options
Employers subject to the Colorado retirement mandate generally have two compliance options.
Option 1: Register with Colorado SecureSavings
An employer can register for Colorado SecureSavings and facilitate payroll deductions into employee Roth IRAs. The employer provides employee information, maintains employment records within the program, and remits payroll deductions.
Employer contributions are not permitted. Employers also do not select investments, manage employee accounts, or provide investment advice.
Option 2: Sponsor Your Own Qualifying Plan
An employer can offer a qualified retirement plan and certify an exemption from Colorado SecureSavings. A SIMPLE IRA is one plan type expressly recognized under Colorado law. SIMPLE IRAs require matching or nonelective employer contributions and follow federal plan rules. Other accepted plans include 401(k)s, 403(a)/(b), SEP IRAs, and others.
The state program determines whether the exemption requirements are met.
What Counts as a Qualified Retirement Plan?
An employer can certify an exemption when it offers a retirement plan Colorado recognizes as qualified. Colorado law expressly lists plans under Internal Revenue Code §401(a), §401(k), §403(a), §403(b), §408(k), §408(p), and §457(b). Legally compliant multiple employer plans may also support an exemption.
A SIMPLE IRA for small businesses is expressly included under Internal Revenue Code §408(p). It requires matching or nonelective employer contributions.
A payroll deduction IRA allows employees to fund their own Traditional or Roth IRAs through payroll. However, it is not a qualified employer-sponsored retirement plan under the Colorado SecureSavings exemption rules and does not establish the exemption by itself.
The state program determines whether a specific plan and employer meet the exemption requirements.
How Employers Certify an Exemption
Establishing a qualified retirement plan does not automatically exempt an employer from Colorado SecureSavings. An authorized representative certifies the exemption through the program’s employer portal.
The employer uses its federal Employer Identification Number (EIN) and Colorado SecureSavings access code to enter the portal and certify that it offers a qualified retirement plan. The portal also allows a business to certify that it has fewer than five employees or has operated for less than two years.
After receiving the certification, the program administrator provides a Certificate of Exemption that documents the submission. Establishing the plan and certifying the exemption are separate administrative steps. The state program determines whether the exemption requirements are met.
Which Option Fits Your Business?
Colorado SecureSavings and qualified employer-sponsored plans differ in their contribution rules, administrative responsibilities, costs, and available plan features.
If you’re a very small business
Colorado SecureSavings coverage depends on employee count, time in operation, and recent retirement-plan coverage. Qualified retirement plans may have separate employer-size and employee-eligibility rules.
If you want to contribute for employees
Colorado SecureSavings does not permit employer contributions. A qualified retirement plan may permit or require them. For example, a SIMPLE IRA requires matching or nonelective employer contributions.
If you’re growing
Changes in employee count and workforce composition may affect program coverage, plan availability, and administrative requirements. These rules depend on the state program or qualified plan involved.
If you want predictable administration
Colorado SecureSavings does not charge employer fees, but employers must provide employee information, maintain program records, and remit payroll deductions. Qualified retirement plans have their own setup, documentation, payroll, fee, and administrative requirements.
The [what a plan costs] page lists current administrative fees and included services.
For comparison, [Illinois has a comparable requirement] under its Secure Choice program, but its coverage and enforcement rules differ from Colorado’s.
FAQ
Do all Colorado employers have to participate in Colorado SecureSavings?
No. A for-profit or nonprofit employer operating in Colorado generally must participate if it employed five or more employees at any time during the previous calendar year, has been in business for at least two years, and has not offered a qualified retirement plan during the preceding two years. An employer that offers a qualified retirement plan can certify an exemption.
Can a small business use its own retirement plan instead of Colorado SecureSavings?
Yes. A small business that offers a qualified retirement plan recognized under Colorado law can certify an exemption instead of participating in Colorado SecureSavings. The state program determines whether the plan and employer meet the exemption requirements.
What happens if an employer does not comply with Colorado SecureSavings?
A noncompliant employer may be fined $100 per eligible employee per year, up to $5,000 per calendar year. Fines cannot begin until at least one year after the employer’s registration date or scheduled program entry date, whichever is later, and cannot be assessed earlier than three months after the first notice of noncompliance.
Does a SIMPLE IRA satisfy Colorado SecureSavings requirements?
A SIMPLE IRA is expressly included among the qualified retirement plan types recognized under Colorado law. An employer that offers a SIMPLE IRA can certify an exemption, subject to the state program’s requirements and determination.
Can a payroll deduction IRA be used instead?
Not for the Colorado SecureSavings exemption. A standalone payroll deduction IRA may be offered as an employee-funded savings arrangement, but it is not a qualified employer-sponsored retirement plan under the program’s exemption rules. A covered employer must still participate in Colorado SecureSavings or offer a qualified retirement plan and certify an exemption.
Do employers have to use the Colorado SecureSavings program?
No. An employer subject to the mandate can register for Colorado SecureSavings or offer a qualified retirement plan and certify an exemption. The state program determines whether the exemption requirements are met.
Colorado Employer Retirement Plan Options
A covered employer can register for Colorado SecureSavings or offer a qualified retirement plan and certify an exemption. A SIMPLE IRA for small businesses is among the plan types expressly recognized under Colorado law. A payroll deduction IRA may provide an employee-funded savings arrangement, but it does not establish the Colorado SecureSavings exemption by itself.
Other accepted plans include 401(k)s, 403(a)/(b), SEP IRAs, and others.
The Colorado SecureSavings program determines whether an employer meets the coverage or exemption requirements.
Explore Your Retirement Plan Options
Colorado SecureSavings is one path. If your business wants to offer a qualified plan with customizable features and full administration, learn how an IRA Club SBS SIMPLE IRA for small businesses works. A payroll deduction IRA offers employee-funded savings but does not qualify for the Colorado exemption on its own.
Review what a plan costs or contact our small business team with questions about plan setup and administration.
