If you’re a New York business owner with 10 or more employees, you’ve likely received a notification about the New York State Secure Choice Savings Program. Perhaps you set it aside, planning to deal with it later. Or maybe you’re wondering what it means for your business and whether you need to take action now.
You’re not alone. Thousands of New York employers are navigating this new requirement, trying to understand their obligations while keeping their businesses running smoothly. But you still have questions: What exactly is required? When do deadlines hit? Will this create administrative headaches? And what happens if you already offer a retirement plan?
The confusion is understandable. New state-mandated programs can feel like one more thing on an already overwhelming plate. You’re already managing payroll, benefits, compliance issues, and the daily demands of running a business. The last thing you need is another complex requirement with unclear implications for your team and your bottom line.
With registration deadlines approaching in 2026, now is the time to understand what New York Secure Choice means for your business and determine your next steps.
Understanding the Stakes
The New York Secure Choice program addresses a significant problem. Over 50% of working New Yorkers—approximately 3.5 million private-sector employees—lack access to a workplace retirement savings plan. This retirement savings gap affects not just individual financial security but also the broader economic landscape as workers face uncertain futures.
For your employees, the statistics are sobering. Nearly 40% of Americans report having no retirement savings at all, while 47% of working households are in danger of not having enough saved to maintain their current standard of living in retirement. Among lower-income workers earning $15,000 to $50,000 annually, retirement plan participation has dropped from 58% in 2022 to just 52.9% in 2024.
As an employer in New York state, you have a role in addressing this gap.
Who Must Participate
New York Secure Choice applies to private-sector employers and nonprofits that meet specific criteria. You’re required to facilitate the program if your business:
- Has 10 or more employees at any time during the previous calendar year
- Has been in business for at least two years
- Does not currently offer a qualified retirement plan (such as a 401(k), 403(b), SIMPLE IRA, or SEP)
The size of your workforce determines your registration deadline:
- 30 or more employees: March 18, 2026
- 15 to 29 employees: May 15, 2026
- 10 to 14 employees: July 15, 2026
If you already offer a qualified retirement plan, you’re exempt from the program. You’ll simply need to certify your exemption using your unique Access Code and employer identification number (EIN).
What New York Secure Choice Actually Entails
The good news is that New York Secure Choice is designed to minimize employer burden. Unlike traditional retirement plans, you won’t assume fiduciary responsibility, make employer contributions, or manage investments. The state handles the administrative heavy lifting at no cost to you.
Here’s what the program involves:
It’s a Roth IRA Structure
Employee contributions are made with after-tax dollars through automatic payroll deductions. The default contribution rate is 3% of gross pay, though employees can adjust this rate or opt out entirely. These contributions go into individual Roth IRAs, meaning qualified withdrawals in retirement are tax-free.
Automatic Enrollment with Employee Choice
Once you register and add employee information, the state communicates directly with your workers to explain their options. Employees have 30 days to opt out or customize their savings rate and investment choices. After this period, you begin payroll deductions for employees who remain enrolled.
Portable Accounts
Unlike employer-sponsored 401(k) plans, these Roth IRAs belong to employees. If they change jobs, the account stays with them—providing continuity even as their careers evolve.
Your Specific Responsibilities
While the state manages most program aspects, you have three key responsibilities:
- Register Your Business
You’ll set up an employer portal account using your federal EIN and the unique Access Code provided in your notification letter. The registration process involves answering questions about your company and payroll process, completing payment setup, and uploading employee information (names, Social Security numbers, birth dates, and contact details).
If you can’t locate your Access Code, you can request a new one through the New York Secure Choice website.
- Submit Contributions
After the 30-day enrollment period, you’ll begin deducting contributions from participating employees’ paychecks and submitting them to the program. The frequency matches your regular payroll schedule. Many payroll providers are integrating with New York Secure Choice, potentially allowing automated contribution submissions.
- Maintain Employee Records
As your workforce changes, you’ll update the system with new hires, contribution rate changes, and employee terminations. This ongoing maintenance ensures accurate deductions and proper account management.
What You Won’t Handle:
- Establishing employee Roth IRA accounts
- Answering investment questions or helping employees choose investments
- Managing investment options or processing investment changes
- Processing distributions from employee accounts
- Providing financial advice about the program
The state and the program administrator (Vestwell) handle all participant-facing services.
Investment Options Available
While you won’t manage investments, understanding what your employees can access helps you answer basic questions. New York Secure Choice offers three investment options:
Capital Preservation Fund: A low-risk option focused on maintaining capital through cash and high-quality, short-term securities. This provides stability but limited growth potential.
Target Date Funds: These diversified funds automatically adjust their asset allocation based on an employee’s expected retirement date. As retirement approaches, the fund gradually shifts from growth-focused investments to more conservative, income-generating assets.
Large Cap Equity Fund: A higher-risk option passively invested in large-cap U.S. stocks (companies valued over $10 billion). This targets long-term growth but comes with more volatility.
The default option is the Target Date Fund matched to each employee’s birth date, providing age-appropriate diversification without requiring investment knowledge.
Considering Your Alternatives
New York Secure Choice establishes a baseline retirement benefit, but it’s not your only option. Before committing to facilitate the state program, consider whether establishing your own retirement plan might better serve your business goals.
When a Private Plan Might Make Sense:
If you want to contribute matching funds to attract and retain talent, traditional 401(k) plans allow employer contributions that New York Secure Choice prohibits. Private plans also offer higher contribution limits ($23,500 in 2025 for 401(k)s versus $7,000 for IRAs for those under 50), giving employees more aggressive savings options.
For businesses concerned about administrative complexity, modern 401(k) providers offer streamlined services with minimal employer involvement. Pooled employer plans (PEPs) can further reduce fiduciary burden by sharing administrative responsibilities across multiple employers.
Tax Advantages:
Employer contributions to traditional retirement plans are tax-deductible business expenses—a benefit unavailable with New York Secure Choice since employers don’t contribute. For some businesses, these tax savings can offset plan administration costs.
The Timing Question:
If you’re considering establishing your own retirement plan, act before your registration deadline. Once you facilitate New York Secure Choice, transitioning to a private plan requires careful coordination to avoid disrupting employee savings.
At HBKS Wealth Advisors, we help business owners evaluate retirement plan options based on their specific circumstances, from comparing costs and benefits to implementing comprehensive 401(k) solutions that support both business objectives and employee financial wellness.
Preparing for Implementation
Whether you’ll participate in New York Secure Choice or establish an alternative plan, take these steps now:
Audit Your Payroll Systems
Confirm your payroll provider can handle post-tax Roth IRA contributions, remit them according to the required schedule, and track employee opt-outs. Many major payroll services are already integrated with New York Secure Choice, but verify your specific provider’s capabilities.
Organize Employee Data
Gather the information you’ll need to register: employee names, Social Security numbers or individual taxpayer identification numbers, birth dates, mailing addresses, and email addresses. Ensure this data is current and accurate to streamline the onboarding process.
Protect Participant Data
With sensitive employee information involved, review your data security protocols. Confirm how information will be transmitted to the state program and who within your organization will have access to the employer portal.
Prepare Your Communication Strategy
While the state provides template materials for employees, prepare for questions. Your team will want to know what automatic enrollment means, how to opt out if desired, where to get investment advice, and what happens to their accounts if they leave your company.
Consider holding a brief information session or sending a clear email explaining the program before automatic enrollment begins. Position this as a new employee benefit rather than a burdensome requirement.
Review Your Existing Benefits
If you already offer a qualified retirement plan, gather documentation to certify your exemption promptly. This prevents unnecessary administrative work and ensures you’re not accidentally enrolled in duplicate systems.
What Happens After Registration
Once you’re registered and have uploaded employee information, New York Secure Choice takes over most communications. The state sends employees detailed information about the program, including:
- How automatic enrollment works
- The default 3% contribution rate and how to change it
- Investment options and the default Target Date Fund
- How to opt out if they choose
- Where to get questions answered
During the 30-day decision period, employees can log into their account portal to adjust contribution rates, select different investments, or opt out entirely. After this period ends, you’ll begin payroll deductions for enrolled employees.
The ongoing process is straightforward: deduct contributions according to employee elections, submit contributions with your regular payroll cycle, update employee information as your workforce changes, and respond to employee contribution rate change requests.
Penalties and Compliance
While the New York Secure Choice law includes enforcement provisions, the state has emphasized an education-first approach. The program aims to expand retirement savings access, not burden small businesses with punitive measures.
That said, meeting your registration deadline and fulfilling your facilitator responsibilities protects your business from potential issues. Document your registration, maintain records of contribution submissions, and keep communication materials provided to employees.
If you encounter challenges—perhaps a payroll provider issue or questions about employee eligibility—contact the employer assistance line at 1-833-369-1392. The program administrators are there to help you navigate obstacles.
The Bigger Picture
New York joins a growing number of states—including California, Illinois, Oregon, Colorado, Connecticut, Maine, Maryland, and Virginia—requiring retirement savings programs for workers without employer-sponsored plans. This trend reflects recognition that Social Security alone won’t provide sufficient retirement income for most Americans.
With only 64% of non-retirees having retirement accounts and 58% of American workers reporting their retirement savings are behind where they should be, programs like New York Secure Choice address a real need. Your participation helps your employees build financial security while ensuring your business remains compliant with state law.
Looking Ahead
The 2026 registration deadlines may seem far away, but they’ll arrive quickly. Between now and then, take time to understand your obligations, evaluate your options, and prepare your systems and team.
Imagine your business a year from now: your team has access to retirement savings options that improve their financial futures, your payroll systems are smoothly handling contributions, and you’re confident in your compliance with state requirements. You’ve turned a new mandate into a competitive advantage, demonstrating that you value your employees’ long-term wellbeing.
Or consider the alternative: scrambling to register at the last minute, facing confused employee questions you’re unprepared to answer, and dealing with payroll complications because you didn’t verify system compatibility. The chaos distracts from running your business and leaves employees uncertain about their benefits.
The choice is yours—and the time to act is now.
Ready to Navigate New York Secure Choice with Confidence?
At HBKS Wealth Advisors, we help business owners make informed decisions about retirement benefits for their teams. Whether you need guidance on New York Secure Choice compliance, want to evaluate alternative retirement plan options, or are ready to implement a comprehensive benefits strategy, we’re here to help.
Our experienced advisors understand both the regulatory requirements and the practical realities of running a business. We’ll help you weigh your options, implement solutions that work for your specific situation, and ensure your team has access to the retirement savings tools they need.
Schedule a consultation today to discuss your New York Secure Choice questions and explore how we can support your business’s benefits strategy. Don’t let deadlines catch you unprepared—let’s build a plan that works for you and your employees.
Important Disclosure:
The information included in this document is for general, informational purposes only. It does not contain any investment advice and does not address any individual facts and circumstances. As such, it cannot be relied on as providing any investment advice. If you would like investment advice regarding your specific facts and circumstances, please contact a qualified financial advisor.
HBKS Wealth Advisors is not a legal or accounting firm, and does not render legal, accounting or tax advice. You should contact an attorney or CPA if you wish to receive legal, accounting or tax advice.
The historical and current information as to rules, laws, guidelines, or benefits contained in this document is a summary of information obtained from or prepared by other sources. It has not been independently verified but was obtained from sources believed to be reliable. HBKS Wealth Advisors does not guarantee the accuracy of this information and does not assume liability for any errors in information obtained from or prepared by these other sources.
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.
