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Can I offer a 401(k) plan to my employees in Hawaii? What are the requirements?
Requirements for Offering a 401(k) Plan to Employees in Hawaii
Yes, as an employer in Hawaii, you can offer a 401(k) plan to your employees. However, there are certain requirements that you must meet to offer a 401(k) plan in Hawaii.
According to the Hawaii Department of Labor and Industrial Relations, employers who offer a 401(k) plan must comply with the Employee Retirement Income Security Act (ERISA) [4]. ERISA requires employers to follow certain rules in managing 401(k) plans, including providing employees with information about the plan, ensuring that the plan is managed in the best interests of the employees, and offering a variety of investment options [4].
Additionally, Hawaii has established the Hawaii Retirement Savings Program (HRSP), which provides retirement plan coverage for private-sector employees who do not have access to employer-sponsored retirement plans [2]([4]:). While participation in the HRSP is voluntary, employers who do not offer a retirement plan to their employees must provide information about the HRSP to their employees [2]([4]:).
In summary, to offer a 401(k) plan to your employees in Hawaii, you must comply with ERISA regulations and provide information about the HRSP to your employees if you do not offer a retirement plan.
Source(s):
Jurisdiction
Hawaii