CalSavers vs. a Guideline 401(k)

Meet California’s state retirement mandate with a simple, powerful Guideline 401(k).

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Guideline 401k
Guideline 401k
50K+

businesses1

1M+

savers2

88%

customer satisfaction score3

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Fintech 504

The mandate in a nutshell

CalSavers was established in 2016. It requires California employers with at least one employee to offer the state-sponsored plan or a qualified alternative like a Guideline 401(k) by December 31st of the year in which you become eligible.5 Compare your options

  • 5+ employees

    December 31, 2024

  • 1-4 employees

    December 31, 2025

Meet the mandate and more with a Guideline 401(k)

  • Magnifying glass with check mark inside, simple icon.

    20-minute setup

    Guideline will help you set up a 401(k) and enroll your employees for you. With CalSavers, you may have to do extra work on behalf of your employees during setup.

  • Lightening bolt simple icon.

    Seamless administration

    We’ll automatically deduct 401(k) contributions each pay run. With CalSavers, you may need to manually send payroll contributions, maintain employee records, and more.

  • Two hands shaking simple icon.

    Fast, live support

    We have your back — you and your team get access to fast, live support via phone and email. Our annual plan sponsor customer satisfaction score is 93%.3

Get back up to $16,500 in tax credits on your new 401(k).6

See if you’re eligible

Compare CalSavers with Guideline Starter

Guideline logo
CalSavers
  • Retirement plan type

    Starter 401(k)

    Roth IRA

  • Maximum employee contributions for 20247

    $6,000

    $7,000

  • Employee asset-based fee

    0.15%

    ($15 for every $10,000)8

    0.30%

    ($30 for every $10,000)9

  • Additional active employee fees

    None10

    $18/year account fee

    (charged quarterly at $4.50 each quarter)10

  • Monthly employer fee

    $39 + $4 per participant

    None

  • Investment options

    40

    17

    (Including Target Date Funds)

  • Professionally managed portfolios

    6

    0

  • Employer match

    No

    No

  • Profit Sharing

    No

    No

Custom integrations. Quick resolutions.

All of our payroll integrations are direct and custom built — we don’t use 3rd party software to sync data. Data syncs every 24 hours with 99% accuracy.11 See all payroll integrations

  • and more
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Investments are our responsibility

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. Learn more

Cliff JNorth Valley Counseling
It was clear that there was also going to be a lot of paperwork and compliance stress. I really did not want to do that. It was worth it to me to find an alternative to the state programClient of Guideline. Views may not be representative of other clients.

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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 five California based employees
  • 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:

  • $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 notice12

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. 13

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.