More than 40% of Colorado’s private-sector workforce – accounting for nearly 940,000 workers – does not have access to an employer-sponsored retirement plan. Colorado SecureSavings, a state-facilitated retirement savings program, was created to fill this significant gap for employees of Colorado’s small businesses. 

This innovative initiative aims to help Colorado’s workforce take a critical step toward financial security by providing a simple way for employees to save for their future. The program is:

• Automatic: Eligible employees are automatically enrolled, making saving effortless.
• Portable: Savings accounts move with employees from job to job.
• Voluntary: Employees can opt out or adjust their contribution at any time.
• Low cost: The program is designed to minimize participant fees.

Mandate for Employers

Under Colorado law, all private-sector employers with at least five employees who have been in business for at least two years are required to facilitate the Colorado SecureSavings program if they do not offer a qualified retirement plan. Alternatively, employers can choose to offer a 401(k) or another qualified retirement plan in order to meet state requirement.

Benefits for Employers

Colorado small business owners can now offer a valuable benefit to their employees without the administrative burden or cost typically associated with retirement plans. The program:

• Requires minimal employer involvement
• Incurs no fees for employers
• Helps attract and retain talented employees

Impact on Employees

For many workers, this program represents their first opportunity to save for retirement through their job. Key features include:

• Roth IRA structure, offering tax-free growth potential
• Default 5% contribution rate, with the ability to adjust
• Investment options tailored to individual risk tolerance and retirement timeline

The Bigger Picture

As trusted advisors, CPAs play a crucial role in educating clients about this new program and its benefits. Whether you're assisting small business owners in implementing the program or advising individuals on how to maximize their savings, your expertise is invaluable in helping Colorado’s workforce and business community take advantage of the Colorado SecureSavings program.

Darius West is a marketing and outreach specialist with the Colorado SecureSavings program. Join him online on Aug. 29, noon to 1 pm, for the COCPA’s “Lunch and Learn: Colorado SecureSavings Program.” West will share details on the program’s workings and the businesses that it impacts. 

Don’t miss the opportunity to learn more about this program, which can positively impact your clients – whether individuals or small businesses – and the larger Colorado business community. Part of the COCPA Lunch and Learn series, this program is offered for one CPE credit.