California, it’s time to offer a 401(k)

All California employers have to offer a retirement plan by
December 31st, 2025, or face penalties.1

Under 5 employees? Pay $0 employer fees until 2026
when you sign up today!§

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60K+
businesses2
1M+
savers3
93%
customer satisfaction score4
9/10 star rating on Business.com
Top 401(k) for small business5

What is CalSavers?

Established in 2016, the law requires California employers with at least one employee to offer the state-sponsored plan, CalSavers, or a qualified alternative like a Guideline 401(k) by December 31st of the year in which your business becomes eligible.1

Just learning about this? You’re not alone. 56% of California small businesses are unaware of the deadline.6

Guideline is here to help. Let’s look at your options.

  • 1-4 employees

    December 31, 2025

  • 5+ employees

    Deadline passed, penalties being enforced

"CalSavers is not free if it takes up your time and your worry."

Cliff J., North Valley Counseling

Client of Guideline. Views may not be representative of other clients.
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65% of business owners don’t know about the fines.6

They could cost you thousands.

  • Fines in California
up to $750/employee
You'll owe $250 per employee the first 90 days you're out of compliance, then an additional $500 per employee if you're still out of compliance at 180 days.1
  • Guideline Starter
$39/month + $4/month per active participant7
Your new 401(k) could be 100% covered with tax credits.8
Starter’s simplified plan design and no employer matching helps
make it easy and affordable to meet the mandate.
Why pay hundreds in penalties when you can save thousands with tax credits?8
See if you’re eligible

Compare Guideline Starter with CalSavers

Guideline logo
CalSavers
  • Retirement plan type
    Starter 401(k)
    Roth IRA
  • Tax benefit
    Pre or Post tax
    Post-tax only
  • Employee asset-based fee
    0.15%9
    0.30%10
  • Additional active employee fees
    None11
    $18/year account fee11
  • Professionally managed portfolios12
    6
    0
  • Investment options12
    40
    17
  • Payroll integrations
    25+ platforms
    Not disclosed
  • Exempt from IRS testing
    Yes
    Yes
  • Scales to a standard 401(k)
    Yes
    No
  • Monthly employer fee
    $39/month + $4 per participant7
    “Free”

91%

say CalSavers isn’t really “free”13

Admin time and payroll effort can add up, making CalSavers quite costly.

Guideline customers say they’ve saved 3.5 hours a month on plan admin13 since switching from CalSavers to Guideline.

Meet the mandate – and then some – with Guideline

California doesn’t specialize in retirement. We do.

Customers who switched from CalSavers to Guideline say they enjoy a better experience.14 Of those surveyed:
  • 100% eliminated payroll errors since switching
  • 93% say Guideline support is superior to CalSavers
  • 86% wish they had initially gone with Guideline
Rich H.Pallas Care
It wasn’t worth the business risk, or the stress, to do a state program without a payroll integration. Guideline Starter was an easy choice.Client of Guideline. Views may not be representative of other clients.

Direct integrations. Accurate information.

All of our payroll integrations are direct and custom-built—no third-party software to introduce security risks or slow you down with inaccuracies. See all payroll integrations
  • and more
  • and more

Pick a provider that has your back

The results are in – a Guideline 401(k) can be a breeze to manage:13
  • 96% say Guideline plans are easy to set up
  • 97% say Guideline plans are easy to manage
  • 93% say Guideline gives them peace of mind

81%

say Guideline fees are a small price to pay13

California clients agree – Guideline is worth the small investment for the peace of mind they get in return.13

Our affordable and easy-to-manage solution helps you offer a compelling employee benefit.7

Explore plans

Calculator

Your new 401(k) could be 100% covered

If you’re starting a new 401(k), your small business may be eligible to receive up to $16,500 in tax credits over the plan’s first three years to help offset plan costs.8

Not sure if your business is compliant?
See if the mandate applies to you.

Get a free consultation

CalSavers FAQs

What is the mandate?

The CalSavers Program was created to encourage more people to save for retirement. It requires California employers with at least 1 employee to provide access to a retirement plan. The plan can either be a private plan like a 401(k) or the state-sponsored plan.

When does the mandate take effect?

For businesses with 5+ employees, the initial deadline has already passed. For newly established businesses or businesses that hire their 5th employee, the deadline is December 31st each year.

For companies with 1-4 employees, the deadline is December 31, 2025.

Which employers are impacted by the retirement mandate?

You are eligible to participate in the CalSavers Program if:

  • Your business is registered to conduct business in the state of California
  • You have at least one California based employee
  • Your employees must be 18 years old to enroll in CalSavers
  • You don’t currently offer a qualified retirement savings program to your employees

Are there penalties for not offering a retirement benefit?

Yes. Employers will be subject to a penalty equal to:1

  • $250 per eligible employee if noncompliance extends 90 days or more after being served a notice of failure to comply
  • Additional $500 per eligible employee if noncompliance extends 180 days or more after the notice
  • An annual notice, including an additional $500 penalty per employee that may be issued until compliance is reached.

Does Guideline satisfy the retirement mandate?

Yes. All of Guideline's 401(k) plans are designed to satisfy state program requirements and are priced to be affordable for businesses of all sizes.

Do I have any fiduciary responsibilities?

Just like with the state offering, you won’t be responsible for investment option choices. We’ll serve as the ERISA 3(38) fiduciary which means we’re responsible for selecting and managing all investment options — our goal is to reduce your liability and provide you with peace of mind.12 Learn more

Can I move from Guideline Starter to a standard 401(k)?

While it is possible for a plan to convert from a Starter 401(k) to a standard 401(k) plan at Guideline, the transition cannot take place until the beginning of the next calendar year. Learn more here.
  • 1
    The CalSavers mandated registration deadline with at least 1 employee (as reported to the EDD in the preceding calendar year), who are not otherwise exempt from participation, can register with CalSavers. The registration deadline for employers with 1-4 employees is December 31, 2025. Requirements to report your exemption apply. Guideline has prepared this summary from third-party sources as of March 2025. The information herein is considered to be reliable at the time of writing, may not necessarily be all-inclusive, is not guaranteed as to accuracy and is subject to change at any time without notice. The information provided herein is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal and/or financial advice that considers all relevant facts and circumstances. Investing involves risk and investments may lose value. You are advised to consult a qualified financial adviser or tax professional before relying on the information provided herein. Deadlines, fees, and other program details are subject to change by the state without notice and should be checked prior to making any decisions and can be reviewed by visiting the State of California’s Franchise Tax Board. Visit the CalSavers site to learn more.
  • 2
    As of April 2025
  • 3
    Total number of Savers, both active and non-active, that have participated in Guideline products from 2016-2024.
  • 4
    Guideline’s average plan sponsor satisfaction score (CSAT) based on feedback received from 1/1/2024 to 12/31/2024.
  • 5
    Business.com “Guideline 401k Review and Pricing" February 26, 2025. Review criteria provided here.
  • 6
    Guideline research run with Suzy. Insights based on data collected February 2025 from a survey of 1002 California-based employees who do not have a retirement benefit from their employer. Guideline was not identified as the survey sponsor. The experiences of the respondents in this survey may not be representative of all people.
  • 7
    See here for more information regarding fees.
  • 8, †
    This content is for informational purposes only and is not intended to be taken as tax advice. Please consult a tax professional to determine what types of tax credits or deductions your company is eligible to claim.
  • 9

    Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser. An assumed annual account fee of 0.15% is applied to assets under management and is deducted on a monthly basis. It’s calculated at 1/12 of the annual stated rate (0.15%) based on the account balance on the last day of each month. Alternative account fee pricing is available, ranging from 0.15% to 0.35%. Contact Sales at hello@guideline.com to learn more about exclusive pricing options available in Enterprise tier. See the Form ADV 2A Brochure for more information regarding this fee.

  • 10
    CalSavers charges an assumed annual account fee of between 0.30% (.05% State Fee and a .25% Program Administrative Fee) on assets under management as of February 2025 according to CalSavers Program Description. This fee includes the State Fee and the Program Administrative Fee. The State Fee is payable to the Board to offset expenses related to the establishment, oversight, and administration of the Program. The State Fee accrues daily and is factored into each Investment Option’s Unit Value. The Program Administrator receives the Program Administration Fee for providing recordkeeping and administrative services for the Program pursuant to a contract with the Board. The Program Administration Fee accrues daily and is factored into each Investment Option’s Unit Value. The fee presented does not include other fees that an employee may incur, including, but not limited to, underlying fund fees. Fees are subject to change by the state without notice and should be checked prior to making any decision.
  • 11
    The fee presented does not include other fees that a 401(k) participant may incur, including, but not limited to, from mutual fund expense ratios and a monthly maintenance fee to participants who end employment.
  • 12

    Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser, the “Affiliated RIA”). Specific references herein to “asset-based fees” or “investment options” or “we” or “our” in this specific context is referring solely services provided- or fees charged- by the Affiliated RIA. See the Affiliated RIA’s Form ADV 2A Brochure for more information regarding its services and fees. Recordkeeping services are offered by Guideline RK, LLC. 3(16) plan administration services are also offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.

  • 13
    Research insights based on data collected in March 2025, from a survey conducted by Guideline, Inc that consisted of 156 clients who were active at the time of the survey based in California. Guideline was identified as the survey sponsor. Though the survey is broad in scope, the experiences of the respondents in this survey may not be representative of all clients.
  • 14
    Research insights based on data collected in March 2025, from a survey conducted by Guideline, Inc that consisted of 156 current clients based in California. Of these, 59 clients responded to these questions. Guideline was identified as the survey sponsor. Though the survey is broad in scope, the experiences of the respondents in this survey may not be representative of all clients
  • §
    Employer fees included in this promotion are the monthly base fee charged to the 401(k) plan sponsor and the monthly active participant fee. Other employer-paid service fees are not included in this promotion. Participant-paid fees are not included in this promotion and will still apply. See here for more information regarding fees. This offer ends June 30, 2025 and can’t be combined with other offers. Flexible pricing opportunities may affect this promotion. Contact Sales at hello@guideline.com for further details. We reserve the right to modify or discontinue this promotion at any time without prior notice

Guideline.com is owned and operated by Guideline, Inc. This website contains content from Guideline, Inc. and its affiliates, each a separate entity with different regulatory marketing requirements and standards. References to "our" or "we" on this website refer solely to Guideline RK, LLC unless otherwise specifically stated.

The information in this website is for informational purposes only and is not intended to be an offer, recommendation, investment advice, legal or tax advice, or a solicitation to buy or sell any security. By using this website, you agree to Guideline, Inc.’s Privacy Policy and Terms and Conditions of Use. Neither Guideline, Inc. nor its subsidiaries, are responsible for information provided by third parties. Information included herein from third parties is believed to be reliable however Guideline, Inc. does not guarantee the accuracy and completeness of that information.

Guideline, Inc. is a technology company that provides an integrated platform to companies who seek to work with 1) Guideline RK, LLC ("Guideline") and/or 2) Guideline Investments, LLC, an SEC Registered Investment Adviser ("RIA"), both of which are wholly owned by Guideline Holdings, LLC. Guideline Holdings, LLC is wholly owned by Guideline, Inc. Neither Guideline, Inc. nor Guideline Holdings, LLC or Guideline RK, LLC is involved in securities activities and is not registered with the SEC or FINRA. Neither Guideline, Inc., nor any of its affiliates, is a bank.

Investment advisory services for Guideline’s 401(k) (when 3(38) fiduciary services are selected) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser. For more information regarding fees and services, see Guideline Investments, LLC’s ADV 2A Brochure and Form CRS. References throughout this website to investment advisory services including but not limited to: investments offered, portfolios, managed portfolios, investment philosophy, assets under management (AUM), annual account fees expressed as a percentage of AUM, suitability questionnaire, 3(38) investment advisory management fiduciary services, robo-advisory services, and investment advice, unless otherwise specifically stated, are services provided by Guideline Investments, LLC. Investing involves risk and may lose money, including loss of principal. Investing is not guaranteed and past performance is not a guarantee of future performance. The investment options offered by Guideline Investments, LLC are not FDIC insured.

Recordkeeping services for Guideline’s 401(k) and SEP IRA/IRA products are offered by Guideline RK, LLC. 3(16) plan administration services are also offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. For more information on Guideline’s pricing, see here. Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.

Any graphs, charts, and other visual aids (collectively referred to as "image(s)") are provided for information purposes only. None of these images can of themselves be used to make investment decisions. No representation is made that these will assist any person in making investment decisions and no image can capture all factors and variables required in making such decisions.

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