Washington Saves is coming. Here's what it means for your business.
The state's new workplace retirement program opens in 2027. Find out in two minutes whether it applies to you, what it would ask of you, and every option you have, including the ones that can also help you save more for yourself.
Does Washington Saves apply to my business?
You're a "covered employer" only if the answer to all four questions is yes. State law
In business in Washington for at least two years?
Measured as of the end of last calendar year.A physical presence in Washington?
Having employees working in the state counts.At least 10,400 employee hours in Washington last year?
About 5 full-time employees. Part-time hours count. Check your ESD quarterly reports. ProposedNo retirement plan offered to any employees?
A 401(k), SIMPLE IRA, SEP IRA, 403(b), pension, or a plan through a PEO or association all count as a plan.Answer the four questions
Your result will appear here. This is general information, not a legal determination.
Talk through your optionsThe deadline is years away. Here's why many owners decide now.
Washington Saves is free and simple, and for some businesses it's the right answer. But if you do nothing, it becomes your default. Comparing first lets you choose the option that also works for you and your team.
Your own savings
Washington Saves accounts are Roth IRAs, capped at $7,500 a year in 2026 (+$1,100 at 50+), and higher earners can be phased out of Roth IRAs entirely. With a 401(k) or SEP IRA, total contributions for you can reach up to $72,000 in 2026, and what the business contributes is generally tax-deductible.
Credits can cover the cost
Federal SECURE 2.0 credits can pay up to 100% of a new plan's startup and admin costs for three years if you have 50 or fewer employees, plus up to $1,000 per employee toward your contributions. The credits only start once a plan exists.
A benefit people value
Washington Saves doesn't allow employer contributions, so it can't be a matched benefit. A plan of your own lets you match or contribute, which can help you hire and keep good people.
Decide on your terms
Starting early means a calm setup with your payroll provider and CPA, instead of a scramble with every other Washington business before the 2028–29 deadlines.
What happens when
Dates marked Proposed come from draft rules and legislation and could change.
- 2026
Your 2026 payroll hours count toward coverage. Nothing is due.
- Jan–Jun 2027
Pilot with volunteer employers.
- 2027
Program opens: July 1 under current law; October 1 proposed.
- Dec 1, 2028
Deadline for businesses with more than 20,800 hours (~10+ FTEs). Proposed
- Dec 1, 2029
Deadline for all other covered businesses. Penalties possible from 2030. Proposed
What it costs and what you'd do
Your part
- Register online and upload an employee list
- Add new hires within 30 days
- Deduct contributions and send them within 7 business days of each payroll
- No program fees, no matching (it isn't allowed) and no fiduciary role
What employees get Proposed
- Their own Roth IRA that follows them from job to job
- 5% of pay by default, rising 1% a year up to 10%
- 30 days to opt out, and they can change or stop any time
- Account fees not yet set; similar state programs charge about 0.5–1% a year
Penalties: none before January 1, 2030. After that, L&I sends a warning letter with 90 days to fix the issue, then fines of up to $100, $250 and $500 for willful violations.
Any one of these meets the requirement
Each has trade-offs. None is right for every business.
| Washington Saves | SEP IRA | SIMPLE IRA | 401(k) | |
|---|---|---|---|---|
| Employer fees | None | Usually low | Usually low | Varies by provider |
| Employer contributions | Not allowed | Employer-funded, flexible each year | Required: 3% match or 2% for all | None, optional or required, by design |
| Employees save from pay | Yes | No | Yes | Yes |
| 2026 employee limit | $7,500 (+$1,100 age 50+) | Employer only | $17,000 (+$4,000 age 50+) | $24,500 (+$8,000 age 50+) |
| Most the owner can save (2026) | $7,500 (+$1,100 age 50+), Roth income limits apply | 25% of pay, up to $72,000 | $17,000 + employer match | Up to $72,000 total (+ catch-up) |
| Employer fiduciary role | None | Limited | Limited | Yes (shared in pooled plans) |
| Federal startup tax credits | No | Yes | Yes | Yes |
Federal tax credits for starting your own plan
SECURE 2.0 credits for eligible businesses with 100 or fewer employees that start a new SEP, SIMPLE IRA or 401(k), claimed on IRS Form 8881. Eligibility rules apply; ask your tax professional. 2026 limits from the IRS. How the credits work →
What happens when you reach out
No pressure and no jargon. Just a clear answer for your business.
A short intro call
Free, with no obligation. We confirm whether Washington Saves applies and what matters most to you.
A side-by-side comparison
Washington Saves next to a SEP, SIMPLE IRA and 401(k) for your business: estimated cost after tax credits, your own savings, and the work involved.
Setup, if you choose a plan
We help you open it with a provider and coordinate with your payroll company and CPA.
Ongoing support
Help with employee questions and enrollment, and a yearly check-in to keep the plan working for you.
If Washington Saves is the best fit for your business, we'll tell you.
Go deeper on the questions owners ask
Frequently asked questions
Is Washington Saves mandatory for employers?
Only for "covered employers": businesses in Washington for at least two years, with a physical presence in the state, at least 10,400 employee hours the prior year (proposed), and no retirement plan for employees. Covered employers must either register for Washington Saves or offer a plan of their own, such as a 401(k), SIMPLE IRA or SEP IRA.
Is anything due by the end of 2026?
No. There is no employer registration, filing or payment due in 2026. Your 2026 payroll hours help decide whether you're covered when the program opens in 2027.
When do employers have to register for Washington Saves?
Under proposed rules, by December 1, 2028 for employers with more than 20,800 employee hours (about 10+ full-time employees), and by December 1, 2029 for all other covered employers. See all deadlines and penalties.
What happens if I don't register?
No penalties apply before January 1, 2030. After that, L&I sends a warning letter with 90 days to fix the issue, then fines of up to $100, $250 and $500 for willful violations.
Does Washington Saves cost employers anything?
No. There are no program fees for employers. Your cost is the time to register, keep the employee list current and send payroll deductions within 7 business days of each payroll.
Is Washington Saves a 401(k)?
No. It's a state-run auto-IRA program. Each employee gets their own Roth IRA, funded only by their own payroll deductions. Employers can't contribute, and savings limits are the IRA limits ($7,500 in 2026, plus $1,100 at age 50+), much lower than a 401(k)'s. Compare the two.
Can I wait and see?
Yes. Under the proposed rules, registration isn't due until December 2028 or 2029 depending on your size, and no penalties apply before 2030. The trade-off: if a plan of your own would suit you better, its tax credits and your higher personal savings limits only start once that plan is in place.
Can I match my employees' savings in Washington Saves?
No. State law prohibits employer contributions to the program. If you want to contribute, you'd need a plan of your own, such as a SIMPLE IRA or 401(k).
Am I responsible for how the investments perform?
No. Employers are not fiduciaries of Washington Saves. Your role is administrative: registering and handling payroll deductions.
I already have a retirement plan. Do I need to do anything?
You're exempt. Under the proposed rules, if the program contacts you, you can certify your exemption. How the exemption works.
Does a SEP IRA or SIMPLE IRA exempt my business?
Yes. A SEP IRA, SIMPLE IRA, 401(k), 403(b), pension, or a plan offered through a PEO or association all count as a retirement plan for the exemption.
We use a PEO. Who's responsible?
Your business, not the PEO, is the covered employer. A plan offered through the PEO counts as an exemption.
Do part-time employees count?
Their hours count toward the 10,400-hour test, and employees 18 or older are eligible to enroll.
What still isn't decided?
The final rules, exact launch date, employee fees, the investment lineup and the company that will run the program. These are expected between late 2026 and 2027. For official updates, visit wasaves.com.
Take the details with you
About Four C Financial
Four C Financial is a retirement income planning firm serving retirees, pre-retirees and business owners.
Dustin Metcalf, CRPC®
Dustin brings 16 years of experience as a licensed financial advisor and holds the Chartered Retirement Planning Counselor (CRPC®) designation. After years of seeing clients struggle less with building wealth than with turning it into reliable, tax-efficient income, he founded Four C Financial around retirement income planning. His work centers on business owners, retirees and pre-retirees. Outside the office, he enjoys cooking, sports and time with his wife, Jamie, and their four sons.
Let's talk through your options.
Whether you plan to use Washington Saves or want to understand the alternatives, we'll help you sort out whether it applies, what each option would involve for your business and what to do next. The intro call is free.
Schedule a conversation