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Can I offer a 401(k) plan to my employees in New York? What are the requirements?
To offer a 401(k) plan to your employees in New York, you must comply with both federal and state laws.
Federal Requirements
Under federal law, you must comply with the Employee Retirement Income Security Act (ERISA) if you offer a 401(k) plan to your employees. ERISA sets standards for the administration of the plan, including reporting and disclosure requirements, fiduciary responsibilities, and vesting rules.
State Requirements
New York State does not have specific requirements for 401(k) plans, but employers must comply with the New York State Secure Choice Savings Program Act if they do not offer a retirement savings plan to their employees. This law requires employers with at least 10 employees to automatically enroll their employees in a state-run retirement savings plan, unless the employer offers a qualified retirement savings plan, such as a 401(k) plan.
Conclusion
To offer a 401(k) plan to your employees in New York, you must comply with federal ERISA requirements and ensure that your plan meets the standards set forth in the law. Additionally, if you do not offer a qualified retirement savings plan, you may be required to participate in the New York State Secure Choice Savings Program.
[2.3] provides information on the New York State Employees’ Retirement System, which is a qualified retirement savings plan that armory employees are required to participate in. However, this document is not directly relevant to the question of offering a 401(k) plan to employees.
Source(s):
Jurisdiction
New York