Colorado employers: there's a better retirement solution than Colorado SecureSavings
Offering a retirement plan is required in Colorado — but you’re not limited to the state’s default program. Colorado SecureSavings has restrictions that may not serve your business or your team’s needs. WealthRabbit’s SIMPLE IRA give you the flexibility, control, and tax advantages to offer a retirement benefit your employees will truly value.
What is Colorado SecureSavings?
Colorado SecureSavings is a state-mandated retirement savings program for private-sector employees in Colorado. If your business has more than four employees, has been in business for at least two years, you are required by law to either start a qualifying plan or register for Colorado SecureSavings.
Registration deadlines
The Registration deadline depends on the size of your business.
- Employers with 50+ employees: March 15, 2023
- Employers with 15-49 employees: May 15, 2023
- Employers with 5-14 employees: June 30, 2023
Non-compliance penalties
Failure to comply with the state mandate may face financial penalties:
- $100 per eligible employee per year, not to exceed $5,000 annually
What You're Missing with Colorado SecureSavings
Colorado SecureSavings 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.
- Lower contribution limitsEmployees can save only up to $7,000 per year (or $8,000 if age 50+) under Roth IRA rules
- Minimal growth potentialLimited funds can mean lower returns for employees over time.
- Harsh penaltiesNon-compliant businesses face fines of up to $100/ employee per year, creating significant financial risk.
Ready for a retirement solution that works better for your business?
SIMPLE IRA: The Smart Alternative to Colorado SecureSavings
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 Employees can contribute up to $16,500 per year (or $20,000 if age 50+) with a SIMPLE IRA in 2025 which is far higher than the Colorado SecureSavings limit.
- 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.
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
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
Instead of enrolling in Colorado SecureSavings, Colorado 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 — with real-time access to performance and account activity.
Colorado SecureSavings vs. WealthRabbit SIMPLE IRA
A quick look at how WealthRabbit’s SIMPLE IRA compares to Colorado’s state program.
| Feature | Colorado SecureSavings | WealthRabbit IRA |
|---|---|---|
| Admin work | Employer registration + state reporting required | Automated setup + payroll sync + minimal oversight |
| Investment options | Limited, state-managed funds | Broader options+ employee guidance tools |
| Flexibility | Mandatory + one-size-fits-all | Customizable to your business needs |
| Monthly fees | State program fees apply | Low cost: $29 /month + $4 per employee |
| Employee experience | Separate state account + fewer tools | Unified dashboard + literacy resources + rollover support |
| Employee contribution limits (2025) | $7,000 ($8,000 if 50+) | $16,500 ($20,000 if 50+) + employer contribution |
| Employer contributions | Not allowed | Matching or nonelective contributions |
Frequently asked questions
Colorado SecureSavings is the state-mandated retirement savings program for eligible private-sector employers in Colorado that do not offer a qualified retirement plan. It requires Colorado employers with 5 or more employees to register (unless exempt).
An employer is required to either register for the program or certify an exemption if they meet all of the following criteria:
- Your business is registered to conduct business in the state of Colorado
- Have 5 or more employees who have worked for you for at least 180 days
- Have been in business for at least 2 years, and
- Do not currently offer a qualified retirement plan
Employers that offer an eligible, qualified plan, such as a SIMPLE IRA through WealthRabbit, are exempt and must certify their exemption with the state.
The deadlines for existing businesses were staggered in 2023 based on employee count:
- 50 or more employees: March 15, 2023
- 15–49 employees: May 15, 2023
- 5–14 employees: June 30, 2023
For newly established businesses or those that become newly eligible, the employer must register or certify exemption by the date provided in the state's official notification. This deadline is generally set to be at least one year after the business first meets the eligibility criteria.
If you have questions about your specific deadline, contact WealthRabbit support for assistance.
Employers who fail to comply may face the following penalties:
- A fine of up to $100 per eligible employee per year
- This fine is capped at $5,000 in a calendar year
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