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California employers: There's a better retirement
solution than CalSavers

California businesses are required to provide a retirement plan. While CalSavers is one option, it may not always be the best fit for your business or your employees. WealthRabbit offers an employer-sponsored plan that's automated, affordable, and easy to manage—keeping you compliant while delivering more value to your team.

What is CalSavers?

CalSavers is a state-mandated retirement savings program for private-sector employees in California. If your business has five or more employees and doesn't offer its own retirement plan, you are required by law to either start a qualifying plan or register for CalSavers.

The program requires employers to automatically enroll their employees and facilitate payroll deductions, creating an administrative responsibility even if there are no direct employer fees.

Employee & employer portals

Registration deadlines

The registration deadline depends on the size of your business.

  • Employers with 100+ employees: September 30, 2020
  • Employers with 50+ employees: June 30, 2021
  • Employers with 5+ employees: June 30, 2022
  • Employers with 1-4 employees: December 31, 2025
Employee & employer portals

Non-compliance penalties

Failure to comply with the state mandate may face financial penalties:

  • $250 per eligible employee after 90 days of non-compliance
  • An additional $500 per eligible employee if non-compliance extends to 180 days or more
Set Up & Manage Your SIMPLE IRA—The Easy Way

What you're missing with CalSavers

CalSaver's is designed to check a compliance box - but for businesses and employers, it often falls short:

  • Limited investment optionsEmployees can't build customized retirement portfolios.
  • No employer benefitsBusinesses spend time managing compliance, but don't receive tax incentives.
  • One-size-fits-allEvery business is forced into the same model, regardless of size or needs.
  • Minimal growth potentialLimited funds can mean lower returns for employees over time.
  • Harsh penaltiesNon-compliant businesses face fines of up to $750 per eligible employee, creating significant financial risk.

Ready for a retirement solution that works
better for your business?

SIMPLE IRA: The smart alternative to CalSavers

A SIMPLE IRA plan offers significant advantages over the state-mandated option, providing tax benefits for employers and greater growth potential for employees. It's a powerful tool for attracting and retaining talent.

  • Tax credits Qualify for up to $5,500 in tax credits for starting a new plan.
  • Employer tax deductions Contributions you make are tax-deductible as a business expense.
  • Higher contribution limits Both employees and employers can contribute significantly more than with a CalSavers IRA.
  • Investment flexibility Employees get access to a wide range of investment options, not just a few target-date funds.
  • Attract & retain talentOffering a superior retirement benefit makes your company more competitive.
Set Up & Manage Your SIMPLE IRA—The Easy Way

See How Much You Can Save with a SIMPLE IRA

Small businesses can take advantage of tax credits to help cover setup and administrative costs. By launching a new plan with auto-enrollment, you could qualify for up to $5,500 in tax credits!

How tax credits work

Tax credits are designed to offset the cost of setting up and administering, as well as contributing to the employees retirement savings.

Employers can claim up to $5,000 per year for three years to offset plan setup and administrative costs. They may qualify for additional tax credits.

  • Auto-enrollment bonusIf you make the plan automatic (employees are enrolled unless they opt out), you get an extra $500 credit for 3 years.
  • Employer contributionsYou may also get credits for money you put into employees' accounts (up to $1,000 per employee in the early years).

Together, these credits can add up to thousands in savings for your business. Curious how much you could claim?

Try our calculator and see exactly how much you could save.

Estimate your tax credit

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Disclosure*

The SIMPLE IRA tax credit calculator is intended to estimate the average tax credit for your business. Please note, it does not constitute tax or legal advice.

Elevate your retirement savings with WealthRabbit

Set Up & Manage Your SIMPLE IRA—The Easy Way

Instead of enrolling in CalSavers, California businesses can choose a qualified alternative like a WealthRabbit SIMPLE IRA - a smarter way to stay compliant and support employees:

  • Self-onboardingEmployers and employees sign up on their own—retirement plans are up and running in just a few clicks.
  • Seamless payroll integrationWealthRabbit seamlessly connects with your payroll system to ensure accurate and timely contributions for every employee.
  • Streamlined plan rolloversEasily roll funds from your existing retirement plan into WealthRabbit— no hassle, no delays.
  • Automated contributionsEnjoy a hands-off approach to retirement savings. Set up automatic deposits so your team never misses a contribution.
  • Employee & employer portalsManage contributions and investments anytime, anywhere—whether you're on your computer or mobile device. View up-to-date data on contributions, investment performance, and account activity.

    • View full list of features

CalSavers vs. WealthRabbit

A quick look at how WealthRabbit's SIMPLE IRA compares to California's state program.

FeatureCalSaversWealthRabbit SIMPLE IRA
Admin workEmployer registration + state reporting required.Automated setup + payroll sync + minimal oversight
Investment choicesLimited + state-selected funds.Broader options + employee guidance tools
FlexibilityMandatory + one-size-fits-allCustomizable to your business: Higher contribution limits + employer match or non-elective contributions
Monthly feesState program fees applyLow cost: $29 /month + $4 monthly per employee
Employee experienceSeparate state account + fewer toolsUser-friendly portals+mobile access + stronger growth with contributions + employer match

Frequently asked questions

CalSavers is California’s state-mandated retirement savings program. Currently, employers with five or more employees are required to register. By December 31, 2025, the mandate will expand to include employers with one or more employees (unless exempt).

California law requires employers with employees to provide access to a retirement plan. Currently, businesses with 5 or more employees must comply, and by December 31, 2025, this expands to businesses with 1-4 employees (provided they've been in business for at least 2 years).

While you can register for the state-sponsored CalSavers program, many businesses choose a private plan instead. With WealthRabbit, you can offer a SIMPLE IRA or SEP IRA that's automated, affordable, and easy to manage—keeping you compliant while delivering more value to your team.

  • For businesses with 5+ employees: The initial deadline has already passed. If you're a newly established business or recently grew to 5 employees, you must register by December 31st of that calendar year.
  • For businesses with 1-4 employees: The deadline is December 31, 2025.

If you have questions about your specific deadline, contact WealthRabbit support for assistance.

Employers who fail to comply may face escalating penalties:

  • $250 per eligible employee if noncompliance extends 90 days or more after being served a notice of failure to comply
  • An additional $500 per eligible employee (total of $750) if noncompliance extends 180 days or more after the notice
  • Annual penalties of $500 per employee that may continue to be issued until compliance is reached

Retirement planning that supports your success

Join hundreds of small businesses and individuals building real financial security with
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