Colorado Secure Savings Program
State of Colorado IRA program
Year enacted |
2020 |
|
Status |
The program is active in 2023. The registration deadlines for employers depends on the size of their business:
|
|
Employers affected |
Mandatory for employers with five or more employees who have been in business for two years and haven't offered a qualified retirement plan in the last two years. |
|
Type of account |
Roth IRA (default) and traditional IRA (optional) |
|
Automatic enrollment |
Yes |
|
Auto-escalation |
Yes (1% per year, up to 8%), with option to increase to 10% in the future |
|
Default contribution rate |
5% |
|
Employer contributions |
Not permitted |
|
Investment options |
Contributions are invested in the program's capital preservation option for 30 days. After the expiration of the 30 days, an employee's contributions (including future contributions) are invested in the default target-date option based on the employee's date of birth. |
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Fees |
The program has an annual asset-based fee of approximately $0.32 for every $100 in an employee's account, which is paid by the employee. There's also a $22 annual account fee that's charged quarterly ($5.50 per quarter). These fees pay for the administration of the program and the operating expenses charged by the underlying investment funds in which the program's portfolios are invested. |
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Website |
Sources: Most of the information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21 and the program's website. It is subject to change without notice. Please contact the state to learn more.
Learn more about the opportunity with state-facilitated retirement plans
John Hancock Retirement Plan Services LLC offers administrative and/or recordkeeping services to sponsors and administrators of retirement plans. John Hancock Trust Company LLC provides trust and custodial services to such plans. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in NY), and John Hancock Life Insurance Company of New York, Valhalla, NY. Product features and availability may differ by state. Securities are offered through John Hancock Distributors LLC, member FINRA, SIPC.
John Hancock Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker-dealer for the John Hancock mutual funds, member FINRA, SIPC.
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