Washington Saves: will your business have to register, and when?

Washington Saves is not open yet. The law requires it to launch by July 1, 2027, and it will cover employers that have been in business in Washington for at least two years and don't offer a qualified retirement plan.

No registration deadline has been adopted. Employers that already offer a 401(k) will only need to claim an exemption.

Not open yetWashington Saves

Who has to do this?

Under the Washington Saves law (chapter 19.05 RCW)4, a Washington employer will be covered when all of these are true:

  • You have been in business in Washington for at least two years as of the previous calendar year, and have a physical presence in the state. 4
  • Your employees worked at least 10,400 hours combined in the previous calendar year. 4
  • You don't offer a qualified retirement plan. 4

What a covered employer does: Once the program opens: register, enroll covered employees automatically with the right to opt out, and send their contributions on time, or claim an exemption. 4

When?

The law requires the program to launch by July 1, 2027. Proposed rules, not yet adopted, would set registration deadlines of December 1, 2028 for employers with more than 20,800 combined staff hours and December 1, 2029 for the rest. 3

What is Washington Saves?

  • The program plans to offer Roth and traditional IRAs, with a Roth IRA as the default. Employees can opt out at any time. 2
  • By law the default contribution will be between 3% and 7% of pay. 4
  • There are no program fees and no contributions for employers. 1

What if we already have a 401(k)?

  • An employer that offers a qualified retirement plan is not covered and only has to claim an exemption. 4
  • How to claim it will be set in the program's rules, which are not adopted yet. 3

Your two options

Either one meets the requirement. The state program column is as the state describes it; which suits you depends on your business and your people.

Join Washington SavesOffer your own plan
What you doOnce the program opens: register, enroll covered employees automatically with the right to opt out, and send their contributions on time, or claim an exemption. 4Claim an exemption, once the program sets out how. 4
Where the money goesA Roth IRA for each employee, by default (planned) 2Accounts in the plan you choose, such as a 401(k)
Employer contributionsNone 1Up to you, within the plan's design
Fee to the employerNo program fees for employers, according to the program. 1Set by the provider you choose

What does it cost?

The state program: No program fees for employers, according to the program. 1

Your own plan: the provider sets the fees, and federal tax credits can cover part of the cost of starting one. See 401(k) tax credits for small businesses and our pricing.

What happens if we don't?

  • After an educational letter and 90 days to fix it, up to $100 for a first willful violation, $250 for a second and $500 for each one after. No penalty can be assessed before January 1, 2030. 4

General information, not legal advice. Rules change; confirm with the state program or your counsel.

Sources & Methodology
  1. Washington Saves Governing Board, About. Read October 13, 2026.
  2. Washington Saves Governing Board, Frequently asked questions. Read October 13, 2026.
  3. Washington Saves Governing Board, Proposed rules, chapter 520-01 WAC (not adopted), page dated filed July 28, 2026. Read October 13, 2026.
  4. Washington State Legislature, Chapter 19.05 RCW, Washington Saves. Read October 13, 2026.

Each statement is paraphrased or quoted from the source it cites. A link to a state agency does not mean the agency endorses alooola. Last verified October 13, 2026.

Get help with Washington Saves in three steps

  1. Tell us about your business: your state, how many people work for you, and any plan you have now.
  2. An advisor talks it through with you and sends a written proposal with the fees, so you can weigh it against the state program.
  3. If you choose your own plan, we coordinate the setup with you and your payroll provider. You then certify your exemption with the state.
Request a proposal

Prefer to talk? Call (484) 275-5525, Monday–Friday, 9am–5pm ET.