New Mexico Work and Save Act
State of New Mexico voluntary IRA and retirement plan marketplace
Year enacted |
2020 |
Status |
New Mexico will offer both a voluntary Roth IRA and a marketplace retirement plan. The program's board will implement the plans on or before July 1, 2024 (deadline extended in the enacted 2021 program amendment bill) |
Employers affected |
All private sector and nonprofit employers that have their primary place of business physically located in New Mexico |
Type of account |
Voluntary IRA—Roth is the default, but other IRA options are permissible
Retirement plan marketplace—SIMPLE IRA, payroll deduction IRA, multiple employer plans (if permitted under federal law), and 401(a) and 403(b) plans |
Automatic enrollment |
Voluntary IRA—Yes, if permitted by federal law
Retirement plan marketplace—Permitted |
Auto-escalation |
Voluntary IRA—Yes, if permitted by federal law
Retirement plan marketplace—Not specified |
Default contribution rate |
Voluntary IRA—To be determined by the program's board
Retirement plan marketplace—Not specified |
Employer contributions |
Voluntary IRA—Not permitted
Retirement plan marketplace—Permitted, if it's an ERISA retirement plan |
Investment options |
Voluntary IRA—Target-date funds (default) and other funds may be available, such as index funds. A principal protection fund may be established for initial savings up to an amount established by the program's board.
Retirement plan marketplace—Not specified |
Fees |
Voluntary IRA—The program's board will keep total fees and expenses below 1% of the funds invested
Retirement plan marketplace—The program's board will establish administrative fees for financial services firms that participate in the marketplace that are sufficient for covering the cost to maintain the marketplace |
Website |
Not yet available |
Source: 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. 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 Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker dealer for the John Hancock mutual funds. Member FINRA, SIPC.
John Hancock Retirement Plan Services LLC offers administrative 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 New York) and John Hancock Life Insurance Company of New York, Valhalla, New York. Product features and availability may differ by state. Securities offered through John Hancock Distributors LLC. Member FINRA, SIPC.
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