New York Secure Choice savings program

Last updated: January 14, 2026

New York employers who are looking for an affordable way to provide retirement benefits to their employees may want to consider New York Secure Choice. Not only do savings plans like this help attract and retain talent, but they’re also a requirement for some businesses in the Empire State.

New York Secure Choice key takeaways:

• Businesses that meet the New York Secure Choice criteria must participate in the program or sponsor another qualified retirement plan.
• Employees are automatically enrolled in New York Secure Choice but can opt out at any time.
• The minimum contribution rate is 3% and the maximum contributions to the plan per year is $7,500 (employers may not contribute).
• Employer-sponsored plans, like a traditional 401(k), may be better at maximizing employees’ savings opportunities.

What is the New York Secure Choice savings program?

New York Secure Choice is a state-sponsored retirement plan designed to help more private-sector employees save for their future. Participation in this program or another qualified retirement plan is mandatory for businesses that meet certain criteria.

Why is New York Secure Choice being implemented?

Legislators in New York passed New York Secure Choice to close the retirement savings gap that exists between employees of large businesses and those of small businesses.

How does the New York Secure Choice savings program work?

New York Secure Choice allows employees to contribute a portion of their post-tax earnings to an individual retirement account (IRA) via payroll deductions. They are automatically enrolled at a 3% contribution rate, unless they opt out or change their rate, and may contribute $7,500 maximum to the plan per year in accordance with IRS guidelines.

What are some additional features of the New York Secure Choice plan?

• Employers cannot match employee contributions.
• Participants may not borrow from their savings.
• The maximum contribution limit for employees 50 and older is $8,600.
• Plans are portable if employees change jobs.

How are investments for New York Secure Choice chosen and managed?

Investments in the New York Secure Choice Savings Program are chosen and overseen by the New York Secure Choice Savings Program Board, which selects a limited menu of professionally managed funds. Participants can select their own investments from these options, or they are placed into a default investment structure.

What do employers need to know about the New York Secure Choice savings program?

Businesses that meet the criteria for New York Secure Choice must enroll all employees who are at least 18 years of age and have earned taxable wages from a New York State employer.

Which employers does this affect?

New York Secure Choice applies to for-profit and nonprofit employers in the public sector who have:

• 10 or more employees
• Been in business for at least two years
• Not offered a qualified retirement savings program

Businesses with fewer than 10 employees may also participate in New York Secure Choice but are not required to do so.

What are the New York Secure Choice registration deadlines?

• March 18, 2026 for employers with 30 or more employees
• May 15, 2026 for employers with 15 to 29 employees
• June 15, 2026 for employers with 10 to 14 employees

How can employers comply with New York Secure Choice?

Employers must either implement New York Secure Choice by the appointed deadline or offer their employees a qualified retirement plan through the private market.

Are there penalties if an employer does not comply?

At this time, New York businesses are not subject to penalties for non-compliance, though a penalty structure is currently in review.

How do employers administer the plan?

Administering the New York Secure Choice plan can be burdensome. Employers must:

• Track eligibility status for all employees.
• Provide program information to all current and new employees.
• Enroll new employees within 30 days of their date of hire.
• Track and honor opt-out requests.
• Automatically withhold three percent of post-tax earnings for those who don’t opt out.
• Deposit retirement benefit deductions with the state.

Do SMBs need to participate in the NY state program, or can they offer a different retirement plan?

Small and medium-sized businesses that are eligible for New York Secure Choice but elect not to join may sponsor any other qualified retirement plan, such as:

• 401(k)
• 403(b)
• Starter-k
• Simplified employee pension (SEP) IRA
• SIMPLE IRA

Employers should weigh all their options and choose the plan that’s best for both them and their employees.

What are the pros and cons of New York Secure Choice?

New York Secure Choice makes it possible for more New York employees working in the private sector to save for retirement. However, the state-run option doesn’t maximize their saving opportunities because employers cannot match contributions, and the annual contribution limits are lower compared to other types of plans.

From the perspective of employers, New York Secure Choice has a minimal financial impact on their businesses. The downside is that they will have more administrative responsibilities taking up their time.

How does the New York Secure Choice savings program compare to alternatives?

See how New York Secure Choice measures up against retirement plans available through ADP:

ADP designs retirement plans that work better

Features	NY Secure Choice	ADP 401(k)	ADP SIMPLE	ADP SEP
Auto enroll	Mandatory 3%	Available	Available	N/A
Auto escalation	Available	Available	N/A	N/A
Payroll integration	Manual via website or FTP	Full integration	Full integration	N/A
Investment option	Limited	Broad range of funds	65+ options	65+ options
Investment advice	N/A	Available	Available	Available
Taxability	Roth after-tax contributions	Pretax & Roth contributions	Pretax contributions	Pretax contributions
Annual Contribution Limit	$7,500 employee contributions + $1.1K catch-up (over 50)	$24,500 employee contributions + $8,000 catchup (over 50) + optional employer contributions	$17,000 employee contributions + $4,000 catchup (over 50) + employer contributions	25% of total compensation up to $72,000 (all employer contributions)

Frequently asked questions about New York Secure Choice

¹ New York Secure Choice Program Details

M-855707-2025-12-18

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