Washington Saves is coming. Here's what it means for your business.
The state's new workplace retirement program opens in 2027. Find out in two minutes whether it applies to you, what it would ask of you, and every option you have.
Does Washington Saves apply to my business?
You're a "covered employer" only if the answer to all four questions is yes. State law
In business in Washington for at least two years?
Measured as of the end of last calendar year.A physical presence in Washington?
Having employees working in the state counts.At least 10,400 employee hours in Washington last year?
About 5 full-time employees. Part-time hours count. Check your ESD quarterly reports. ProposedNo retirement plan offered to any employees?
A 401(k), SIMPLE IRA, SEP IRA, 403(b), pension, or a plan through a PEO or association all count as a plan.Answer the four questions
Your result will appear here. This is general information, not a legal determination.
Talk through your optionsWhat happens when
Dates marked Proposed come from draft rules and legislation and could change.
- 2026
Your 2026 payroll hours count toward coverage. Nothing is due.
- Jan–Jun 2027
Pilot with volunteer employers.
- 2027
Program opens: July 1 under current law; October 1 proposed.
- Dec 1, 2028
Deadline for businesses with more than 20,800 hours (~10+ FTEs). Proposed
- Dec 1, 2029
Deadline for all other covered businesses. Penalties possible from 2030. Proposed
What it costs and what you'd do
Your part
- Register online and upload an employee list
- Add new hires within 30 days
- Deduct contributions and send them within 7 business days of each payroll
- No program fees, no matching (it isn't allowed) and no fiduciary role
What employees get Proposed
- Their own Roth IRA that follows them from job to job
- 5% of pay by default, rising 1% a year up to 10%
- 30 days to opt out, and they can change or stop any time
- Account fees not yet set; similar state programs charge about 0.5–1% a year
Penalties: none before January 1, 2030. After that, L&I sends a warning letter with 90 days to fix the issue, then fines of up to $100, $250 and $500 for willful violations.
Any one of these meets the requirement
Each has trade-offs. None is right for every business.
| Washington Saves | SEP IRA | SIMPLE IRA | 401(k) | |
|---|---|---|---|---|
| Employer fees | None | Usually low | Usually low | Varies by provider |
| Employer contributions | Not allowed | Employer-funded, flexible each year | Required: 3% match or 2% for all | None, optional or required, by design |
| Employees save from pay | Yes | No | Yes | Yes |
| 2026 employee limit | $7,500 (+$1,100 age 50+) | Employer only | $17,000 (+$4,000 age 50+) | $24,500 (+$8,000 age 50+) |
| Employer fiduciary role | None | Limited | Limited | Yes (shared in pooled plans) |
| Federal startup tax credits | No | Yes | Yes | Yes |
Federal tax credits for starting your own plan
SECURE 2.0 credits for eligible businesses with 100 or fewer employees that start a new SEP, SIMPLE IRA or 401(k), claimed on IRS Form 8881. Eligibility rules apply; ask your tax professional. 2026 limits from the IRS.
Frequently asked questions
Can I wait and see?
Yes. Under the proposed rules, registration isn't due until December 2028 or 2029 depending on your size, and no penalties apply before 2030. Many owners use the time to compare options.
Can I match my employees' savings in Washington Saves?
No. State law prohibits employer contributions to the program. If you want to contribute, you'd need a plan of your own, such as a SIMPLE IRA or 401(k).
Am I responsible for how the investments perform?
No. Employers are not fiduciaries of Washington Saves. Your role is administrative: registering and handling payroll deductions.
I already have a retirement plan. Do I need to do anything?
You're exempt. Under the proposed rules, if the program contacts you, you can certify your exemption.
We use a PEO. Who's responsible?
Your business, not the PEO, is the covered employer. A plan offered through the PEO counts as an exemption.
Do part-time employees count?
Their hours count toward the 10,400-hour test, and employees 18 or older are eligible to enroll.
What still isn't decided?
The final rules, exact launch date, employee fees, the investment lineup and the company that will run the program. These are expected between late 2026 and 2027. For official updates, visit wasaves.com.
About Four C Financial
Four C Financial is a retirement income planning firm serving retirees, pre-retirees and business owners.
Dustin Metcalf, CRPC®
Dustin brings 16 years of experience as a licensed financial advisor and holds the Chartered Retirement Planning Counselor (CRPC®) designation. After years of seeing clients struggle less with building wealth than with turning it into reliable, tax-efficient income, he founded Four C Financial around retirement income planning. His work centers on business owners, retirees and pre-retirees. Outside the office, he enjoys cooking, sports and time with his wife, Jamie, and their four sons.
Let's talk through your options.
Whether you plan to use Washington Saves or want to understand the alternatives, we'll help you sort out whether it applies, what each option would involve for your business and what to do next.
Schedule a conversation- Call
- 360-865-7357
- info@fourcfinancial.com
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