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Retirement designed with you in mind

When you save with CalSavers, you’ll put your money to work for you:

  • A portion of your pay is automatically contributed to an Individual Retirement Account that belongs to you.
  • You can do nothing and let the standard account options kick in or customize your account by setting your own contribution rate and investments. Also, we’ve added an automatic increase feature that will increase your savings rate by 1% each year until your savings rate reaches 8%, unless you choose otherwise.
  • Your account is portable: You keep it if you leave your job.
  • And you have access to your savings at any time, and the savings in your account is always yours.
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Eligibility

You may be eligible to open and maintain an account if:

  • Your employer has five or more employees.
  • Your employer doesn’t offer a retirement plan at work.
  • You are employed in the state of California.
  • You are 18 or older.
  • You have a Social Security Number or an Individual Taxpayer Identification Number.

NOTE: CalSavers accounts are Roth (post tax) IRAs, and those with higher incomes may not be eligible to contribute. If you earn more than the Roth IRA income limits set by the federal government, you may need to opt out of CalSavers. Learn more about contribution limits. Traditional (pre tax) IRAs will be offered starting in mid-2019, allowing for those with higher incomes to participate.

What to do with your account

Approximately 30 days before you are automatically enrolled in CalSavers, you’ll receive a notice asking you to set up your account, opt out, or wait to be automatically enrolled.

Do nothing

Customize it

Opt out

Do nothing

If you choose not to take action on your account, you will start saving automatically after 30 days with the standard savings and investment elections:

  • 5% of your gross income (wages before taxes and other deductions) earned with your facilitating employer
  • First $1,000 of contributions will be invested into the CalSavers Money Market Fund.

Customize it 

You’ll need the following information to access your account and customize it.

  • CalSavers access code from your notification
  • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
  • Date of birth
  • ZIP code

Opt out

You can opt out of participating in CalSavers at any time online, by phone, or mailing in a form. If you opt out before the end of the 30-day notification period, no payroll deductions will be made on your behalf and your account will not be activated. You can rejoin the program and begin contributing to your account at any time through the same methods.

I’m not sure how much to save 

If you’re not sure how much to contribute, check out our calculator to figure out what’s right for you.

Customizing your account

Once you have finalized your account by verifying your contact information and signed all account documents, you are able to:

  • Designate beneficiaries (who will inherit your Roth IRA in the event of your passing)
  • Manage your personal information
  • Change your contribution rate
  • Change your investment choices
  • Make a withdrawal

Your initial contributions

Unless you select another option, your first $1,000 in contributions will be invested in the CalSavers Money Market Fund and subsequent contributions will be invested in a target retirement date fund based on your age. You can decide at any time whether to keep your investment in this fund or choose from a simple menu of other investment options.

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THE CALSAVERS PROGRAM, COMBINED WITH CALIFORNIA’S NEW $15 MINIMUM WAGE LAW, CAN BOOST YOUNG LOW-INCOME WORKERS’ RETIREMENT INCOME BY 50%

UC Berkeley Labor Center, California's $15 Minimum Wage and Secure Choice Retirement Savings Program Can Boost Young Low-Income Workers' Retirement Incomes by 50%, (December 2017)

Opting out questions

I originally enrolled, but now I want out

You can choose to stop participating at any time, which will stop contributions into your account. You can opt out online, by calling the Client Service Team, or by mailing in a form. You can leave the money in your account, transfer or roll it over to another Roth IRA, or request a distribution. Keep in mind, requesting a distribution may result in taxes and penalties.

I originally opted out, but now I want to enroll

You can opt back in at any time online, by phone, or by mailing in a form.

What happens after I opt-out?

After you opt out, you will receive a notification confirming your decision.  At any time in the future, you can opt in to the Program.

California law requires that CalSavers conduct an Open Enrollment Period once every two years during which eligible employees that previously opted out of the Program shall be re-invited to participate under automatic enrollment and must opt out again if they still do not wish to participate in the Program.

Understanding the costs

A small fee will be applied to your account. This fee is necessary to cover the costs of the administration of the program and operating expenses. This fee is collected in the form of an annual asset-based fee of 0.825% to 0.95%, depending on your investment choice. This means you will pay between 83 cents and 95 cents per year for every $100 in your account, depending on your investment choice. The CalSavers Program is pleased to announce that fee rates for all CalSavers participants will drop when the Program as a whole hits growth milestones.

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The fee covers all administrative costs:
  • Maintaining your account
  • Oversight of the program’s investments
  • Providing customer service
  • Keeping records
  • Online and phone services
  • Operating expenses of the underlying investment funds in which the investment options are invested