Connecticut has introduced updates to its MyCTSavings program, which is a state-sponsored retirement savings initiative for employers with five or more full- or part-time employees who do not offer their own retirement plans. The program allows employees to save for retirement through payroll contributions into a Roth IRA, and participation is free for businesses. More than 50 payroll companies are integrated with MyCTSavings, making it easier for employers to manage the process.
During the 2025 legislative session, changes were made to include penalties for qualified employers who do not comply with the state’s retirement law. Starting in 2026, eligible employers that have neither joined MyCTSavings nor adopted a private plan will receive compliance notifications before any fines are imposed. The annual fines will range from $500 to $1,500 depending on the number of employees.
According to program information, “Businesses will be given ample notice of this important change, and more information will be shared as details are finalized. In the meantime, employers are encouraged to review their options, register, and enroll their employees for MyCTSavings or a private retirement program to avoid fines in the future.”
The statement also emphasizes the importance of saving for retirement: “Building retirement savings is critical for a secure financial future. For employees, saving through payroll contributions at work is a simple and effective way to achieve that goal. Visit myctsavings.com for more information.”
Connecticut has officially put in place the My CTSavings program as part of its efforts to ensure workers have access to retirement savings options.
