How Colorado Employers Can Claim a SecureSavings Exemption
Colorado employers that already offer a qualified retirement plan generally do not have to participate in Colorado SecureSavings. Instead, they can claim an exemption through the employer process. For employers that already have a qualified plan in place, understanding how the exemption works is an important part of staying compliant.
When an Employer May Be Exempt
Colorado employers may generally qualify for an exemption from Colorado SecureSavings if they already offer a qualified employer-sponsored retirement plan. That can include options such as a 401(k), SEP IRA, SIMPLE IRA, or another qualifying retirement arrangement. If the employer already offers a qualified plan, the state program is generally not the required path.
What Counts as a Qualified Retirement Plan
A qualified retirement plan is generally a private employer-sponsored retirement plan that satisfies the state requirement in place of Colorado SecureSavings. Common examples include 401(k) plans, SEP IRAs, and SIMPLE IRAs. Employers should make sure the plan they offer is a recognized qualifying arrangement before assuming they are exempt.
How the Exemption Process Works
For employers that already offer a qualified retirement plan, the next step is generally to certify the exemption through the Colorado SecureSavings employer process. That allows the employer to confirm that the business already satisfies the retirement plan requirement through a private plan instead of participating in the state-facilitated program.
Why Employers Should Not Ignore the Exemption Step
Even if an employer already offers a retirement plan, it is still important to complete the exemption process properly. Failing to respond, ignoring state notices, or assuming that the existence of a retirement plan automatically closes the issue can create unnecessary confusion and compliance problems.
When Employers Review Their Current Plan
For some employers, the exemption process is also a good time to review whether their current plan is still the right fit. A business may already have a retirement plan in place, but it may still make sense to compare plan structure, employer contribution strategy, administrative support, and overall employee value.
How National Benefits Consultants Helps
National Benefits Consultants helps Colorado employers review whether they may qualify for a Colorado SecureSavings exemption and whether their current retirement plan still fits the business. We help employers understand the difference between participating in the state program and using a qualified private retirement plan to satisfy the requirement.
Need Help Reviewing Your Colorado Compliance Options?
Need help comparing Colorado SecureSavings exemption options? Call 720-488-9892 or contact National Benefits Consultants to discuss your retirement plan status and next steps.