In 2026, many New York private-sector employers will face a new retirement savings requirement through the New York Secure Choice Savings Program. This state-mandated program is designed to ensure that private-sector employees who don’t have access to a retirement plan at work have a simple, automatic way to save for retirement. The state’s “Help Center” is here, and below we’ve provided a breakdown of what businesses need to know.
What is the NY Secure Choice?
The New York Secure Choice Savings Program is a state-administered, automatic enrollment Roth IRA program. Participating employees have a portion of their wages automatically deducted and deposited into a Roth IRA unless they choose to opt out.
Key features of the program include:
- Automatic enrollment:
- Employees are automatically enrolled at a default contribution rate of 3% of gross wages, unless they opt out.
- Employee choice:
- Employees can opt-out at any time.
- Employees can change their contribution rate (up or down).
- Employees may elect automatic annual escalation, typically 1% per year, up to a maximum of 10%.
- Payroll deduction:
- Contributions are made through the employer’s payroll system, with the employer’s role limited to facilitating the deductions and remitting them to the program.
The program is not a 401(k). Employers do not make contributions or provide matching; their role is strictly limited to facilitating payroll deductions and sending contributions to the program.
Which Employers Are Required to Participate?
The Secure Choice program applies to employers that meet all three criteria:
- 10 or more employees in New York State during the prior calendar year.
- In business (private sector and nonprofits) for at least two years.
- Do not currently offer a qualified retirement plan, such as a 401(k), 403(b), SEP, SIMPLE IRA, or governmental 457(b) plan.
Employers who already offer a qualified retirement plan are exempt but must certify the exemption through the Secure Choice portal. Even small employers with fewer than 10 employees may need to certify exemption, if they are otherwise not covered. Guidance indicates that the state will contact employers with an Access Code, which is utilized when certifying exemption through the portal.
Key Deadlines for 2026
New York is implementing the program in phases based on employer size. For covered employers, the deadlines to register or certify exemption are:
| NY Employee Count | Deadline |
| 30 or more | March 18, 2026 |
| 15-29 | May 15, 2026 |
| 10-14 | July 15, 2026 |
These deadlines are critical for compliance. The law includes enforcement provisions and contemplates civil penalties for failure to register or certify an exemption; however, public-facing guidance has indicated an education-first approach and penalty details/implementation remain evolving. While exact penalties are still under review, failing to meet deadlines could certainly result in enforcement action.
How Secure Choice Works for Employees
- Eligibility: Employees must be 18 or older, employed in New York, and earn wages from a covered employer.
- Account setup: Employers provide basic employee information to the program administrator.
- Opt-out option: Employees can opt out anytime. Those who do not opt out are automatically enrolled.
- Contribution limits: Contributions cannot exceed the annual IRA contribution limits under federal law.
- Account portability: Employees retain ownership of their Roth IRA, which stays with them if they change jobs.
Employer Responsibilities
Employers have a limited role in Secure Choice, primarily administrative:
- Register with the program when notified.
- Provide employee informational materials at least one month before facilitating the program for existing employees and at hiring for new employees.
- Set up payroll deductions for enrolled employees.
- Remit contributions to the program, generally by the end of the month following the month wages were paid.
Employers are not responsible for investment decisions, plan administration, or account performance and are not considered fiduciaries of the program.
401(k) vs. NY Secure Choice: How They Differ
| Feature | 401(k) Plan | NY Secure Choice |
| Type | Employer-sponsored qualified retirement plan | State-administered payroll-deduction Roth IRA |
| Enrollment | Optional or automatic, plan-dependent | Automatic enrollment (core feature) |
| Default contribution rate | Plan-specific | 3% of wages |
| Employer contributions | Allowed or required (matching/profit sharing) | Not allowed |
| Employer role | Plan administration, fiduciary duties | Payroll deduction facilitator only |
| Contribution limits | Higher (2026 elective deferral $24,500; catch-ups up to $11,250) | IRA-based, subject to federal IRA contribution limits |
Key takeaway: Employers are not required to adopt a 401(k) specifically. They can either offer a qualified employer-sponsored plan or facilitate the Secure Choice program.
Practical Steps for Employers in 2026
- Determine coverage: Do you have 10+ NY-based employees, 2+ years in business, and no qualified retirement plan?
- Prepare for registration: Await notification from Secure Choice and register or certify exemption by your size-based deadline.
- Provide employee materials: Distribute required informational packets in advance.
- Set up payroll: Ensure payroll can facilitate automatic deductions and timely remittance.
- Understand your role: You are facilitating deductions only; the program handles investments and account management.
Key Takeaways
The New York Secure Choice program offers a simple, low-cost way to help employees save for retirement while limiting employer obligations. For businesses, it represents a mandatory “either/or” decision: facilitate payroll-deduction Roth IRAs through Secure Choice or offer a qualified retirement plan and certify exemption.
Separately, employers adopting a new 401(k) or 403(b) plan should be aware that federal law includes automatic enrollment requirements for many plans established on or after December 29, 2022, generally effective for plan years beginning after December 31, 2024, subject to exceptions (including certain new and small businesses).
In order to ensure compliance and help employees take meaningful steps toward retirement security, New York businesses should understand the above deadlines, employee eligibility, and employer responsibilities. If you have any questions or are interested in learning more, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
