Employers are required to offer a retirement savings plan if they have 5 or more California-based employees, and if at least one of those employees is 18 or older. The plan can either be a private plan like a 401(k) or the state administered plan, CalSavers.

When does the mandate take effect?

The final deadline for most businesses was June 30, 2022. (Businesses that become newly eligible for CalSavers in 2022 have a Dec. 31, 2022 deadline.) Employers with 5 or more California-based employees are required to provide access to a retirement plan.

Which employers are impacted by the retirement mandate?

Employers with 5 or more California-based employees, with at least one of whom is age 18.

Does Guideline satisfy the retirement mandate?

Yes. Guideline's 401(k) plans are designed and priced with small businesses in mind. Starting a Guideline 401(k) satisfies the California retirement mandate.

I just started my business in 2022. Do I need to comply?

Yes you do. But as a newly eligible business, you have until December 31, 2022, to sign up for CalSavers or offer a qualified retirement plan.

Meet California’s mandate in 10 minutes or less

California businesses with at least one employee have to offer a qualified retirement plan by Dec. 31, 2025, or face penalties.¹

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low cost plans, seamless admin, meet the mandate

60K+

businesses²

1M+

savers³

$15B+

invested for retirement⁴

Innovation by Design Award 2024⁵

Meet the mandate and more with Guideline

Seamless Square integration
Automate your 401(k) experience with direct payroll sync.
Stress-free 401(k) management
Unlock always-on compliance and automatic tax filings, including Form 5500⁶ and 1099-R.
Tax credits could cover costs
Your business may be eligible to offset 100% of 401(k) plan costs over the first 3 years with tax credits.⁷ See how.

What is CalSavers?

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.¹

1-4 employees
December 31, 2025
5+ employees
Deadline passed, penalties being enforced

Flexible options fit for your business

From what you need today to where you’ll be tomorrow, a Guideline 401(k) scales with your business.

Starter
Simply meet your state’s mandate
Find peace-of-mind with an out-of-the-box solution. Starter’s simplified plan design and no employer matching makes it easy and affordable to meet the state mandate.
Standard 401(k)
Comply with a more comprehensive benefit
Take your new employee benefit further than the state requires by offering a 401(k) plan with higher savings limits and more custom plan designs.

Powerful plans for
businesses of any size

Our 401(k) plans come with low monthly costs and no transaction fees.⁸

Starter
$39
/ month
+ $4/mo per active participant
A simplified 401(k) with limited features and easy administration.
Connect
- $6,000 employee contribution limit
- No employer contributions
- Exempt from IRS testing
Core
$89
/ month
+ $8/mo per active participant fee
Our most popular 401(k) with robust features and more plan design options.
Connect
- $23,500 employee contribution limit⁹
- Safe Harbor¹⁰ or Traditional 401(k)
- Features like employer contributions and profit sharing
Enterprise
$149
/ month
+ active participant fee
Our most custom 401(k) with premium support and flexible pricing that scales as you grow.
Contact sales
- $23,500 employee contribution limit⁹
- Flexible pricing options
- Premium support for plan admin and employees
- Support for plan transfers

Claim up to $16,500 in tax credits to potentially offset initial plan costs.⁷ See if you’re eligible.

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Estimate your plan costs

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 initial plan costs.⁷