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Retirement designed with you in mind

CalSavers provides a simple way to help you save for retirement. Your contributions to your account will occur automatically from each paycheck. You can do nothing and let the standard account options kick in or personalize 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. The best part: if you leave your job, your account stays with you.

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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.

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

Finalize 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.

Finalize it

You’ll need the following information to access your account and finalize 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 by accessing your online account or contacting our Client Service Team.

I’m not sure what to do

If the standard savings options feel like too much for you, consider saving at a lower rate. You’ll get to keep more of your paycheck, but you’ll still be savings something for retirement.

Use our Retirement Calculator to experiment with different savings rates and see if it fits your budget.

How to customize 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

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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)

I originally enrolled, but now I want out

You can choose to stop participating at any time, which will stop money from being taken out of your paycheck. 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 be result in taxes and penalties.

I originally opted out, but now I want to enroll

If you chose not to participate before your Roth IRA was set up, you can enroll at any time by contacting our Client Service team.

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 0.92%, depending on your investment choice. This means you will pay between 83 cents and 92 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