New York Retirement Plan Mandate: Don’t Face $250/Employee Penalties
Your deadline is approaching. We’ll help you get compliant and discover a better option than the state program.
⚠️ First Deadline: March 18, 2026 | Businesses with 30+ employees must register now
Is Your Business Subject to the NY Secure Choice Mandate?
The mandate applies if your business meets ALL three criteria:
✓ At least 10 employees in New York State (at all times during the previous calendar year)
✓ Been in business for at least 2 years
✓ Haven’t offered a retirement plan (401(k), SIMPLE IRA, etc.) in the past 2 years
Even if you’re exempt, you must register and formally opt out to avoid penalties.
MARCH 18, 2026
30+ employees
MAY 15, 2026
15-29 employees
JULY 15, 2026
10-14 employees
What Happens if you Miss Your Deadline?
New York State will begin enforcing penalties in late 2026:
- $250 per employee for first offense
- Escalating fines for continued non-compliance
- For a 20-employee business, that’s a $5,000 penalty you can easily avoid
You have two options:
- Establish your own qualified retirement plan (the better choice for most businesses).
- Participate in the NY Secure Choice state program
Why NY Businesses Are Choosing 401(k) Plans Instead
Data from 12 states with similar mandates shows a 45% increase in 401(k) adoption.
Employer Responsibilities:
Even with NY Secure Choice, you’ll need to:
• Facilitate payroll deductions every pay period
• Automatically enroll employees who don’t opt out
• Maintain detailed employee records
• Update contribution elections when employees make changes
• Answer employee questions about the program
With all these responsibilities, why not offer a plan that provides real value?
Frequently Asked Questions
You’re exempt from participating in NY Secure Choice, but you must still register online and formally indicate your exemption. This takes less than 10 minutes and protects you from penalties.
Yes, but participants cannot roll their NY Secure Choice (Roth IRA) balances into your new 401(k) plan. It’s better to establish your own plan from the start.
With SECURE 2.0 tax credits, many small businesses find their net cost is minimal—or even negative—in the first few years. We can provide a customized cost analysis during your consultation.
You’ll face penalties of $250 per employee starting in late 2026, with escalating fines for continued non-compliance. More importantly, you’ll miss the opportunity to offer competitive benefits and receive substantial tax credits.
On average, 45-60 days for a new plan from start to launch. We handle the heavy lifting and guide you through every step.
Participation is voluntary for employees in both NY Secure Choice and a 401(k). However, with higher contribution limits and employer matching, 401(k) plans typically see higher participation rates.
Yes, both NY Secure Choice and 401(k) plans have eligibility rules for part-time employees under SECURE 2.0.
You can establish one 401(k) plan that covers employees across all states. Let’s discuss your specific situation during a consultation.
No. With the right partners, plan administration is handled for you. Your main responsibility is payroll integration and employee communication—similar to what you’d need for NY Secure Choice anyway.
A 3(38) investment fiduciary (like Morningstar) takes on the legal responsibility for selecting and monitoring plan investments, significantly reducing your fiduciary liability.
HBKS can serve as your ERISA 3(38) fiduciary, taking on the legal responsibility for selecting and monitoring your plan’s investments and significantly reducing your fiduciary liability.
Your Deadline Is Approaching—Let’s Get You Compliant
Schedule your complimentary consultation today and discover how a 401(k) can benefit your business and your employees.
HBKS Wealth Advisors (HBKS) provides wealth and asset management services to individuals, families, businesses, nonprofits, and other organizations. Our Certified Financial Planners (CFPs) are committed to helping our clients manage, grow, and protect their wealth. We are distinguished by our comprehensive, customized, and objective approach to managing wealth, a firm with the resources of a large, national financial services company providing local, personalized service from 15 offices in five states. Comprehensive wealth management goes beyond the portfolio to address the full realm of financial concerns and objectives of each client.
*The $86,500 figure is based on an assumed size of a company with 20 employees earning less than 100k and 4 employees earning between $100k – $155k.
The information is only intended for educational purposes to show an example of this type of offering.
Investment Advisory Services offered through HBK Sorce Advisory LLC, d.b.a. HBKS Wealth Advisors. Not FDIC Insured – Not Bank Guaranteed – May Lose Value, Including Loss of Principal – Not Insured By Any State or Federal Agency.