• Which workers will be eligible for the program? All employees 18 years or older working for a covered employer that does not offer a qualifying employer-sponsored retirement plan.
• What is an automatic Individual Retirement Account (IRA)? Also referred to as an auto-IRA, secure choice, or “work and save” program, an auto-IRA allows participating workers to have a portion of their wages automatically deducted from each paycheck and contributed to a federally recognized individual retirement savings account. Contributions may be made on a pre-tax basis (traditional IRA) or post-tax (Roth IRA) basis, depending on options allowed under the program. As of 2023, 15 other states have adopted programs similar to Washington Saves.
• Will workers be able to opt out? Yes. Employees can opt out or terminate their participation in the program at any time, subject to rules to be established by the governing board.
• What investment options will be available? Participating workers’ contributions will automatically be invested in a default investment plan, unless they choose one or more alternative options approved by the governing board. There will also be a self-directed option for workers who want more control over how their funds are invested. Workers will be able to reallocate any current investment balances and future contributions among the different investment options offered under the program. Funds in workers’ IRAs will be invested and managed by an investment manager hired and overseen by the program’s governing board.
• What is the contribution rate? In the first year, the governing board will set the default contribution rate between 3% and 7%. In subsequent years, the board may increase that rate by no more than 1% per year, until the maximum default contribution rate of 10% is reached.
• What if a worker changes jobs or becomes unemployed? Washington Saves IRAs will be portable, allowing a worker to keep their existing IRA after changing employers. They will also be able to continue to contribute to existing plans if they become unemployed, or stop contributions.
• Will self-employed individuals be able to participate? Possibly. The law gives the governing board the authority to adopt rules allowing individuals who are not covered workers to participate, including self-employed individuals, independent contractors, and those who are unemployed.
• Will employers be allowed to match workers’ contributions? No. Under federal law, employers may not contribute to workers’ IRAs.
• What if a worker believes their employer is not adhering to required administrative procedures? A worker who believes their employer is failing to automatically enroll workers in Washington Saves, inform employees about their options, or meet other requirements will be able to file a complaint with L&I. The department will investigate the complaint and help employers take any needed actions to fulfill their responsibilities. Intentional violations may result in civil citations and penalties against the employer.
• What if an employer fails to remit employee contributions to Washington Saves? If a worker believes their employer is not remitting their contributions timely or not at all, they will be able to file a complaint. Complaints of unlawful deductions will be subject to enforcement under the wage payment requirements defined in the Wage Payment Act.
• How long do employees have to file a complaint? Three years. L&I may not investigate any alleged violation that occurred more than three years before the date the complaint was filed.

• What are covered employers? Employers who would be required to participate:
  • Have been in business in Washington State for at least 2 years and maintain a physical presence here.
  • Do not offer a qualified retirement plan to their covered employees who have had continuous employment of 1 year or more.
  • Had employees working a combined minimum of 10,400 hours during the previous calendar year.
• What are employers’ requirements? Covered employers must register with Washington Saves, provide the program administrator relevant information about their covered employees, and distribute program information and disclosures to employees. They will be required to automatically enroll covered employees in Washington Saves or a qualified retirement plan offered by a trade association or a chamber of commerce, but must allow workers to opt out. They must also withhold employees’ contributions from their paychecks and timely remit them to the program.
• Are employers responsible for the performance of employee IRA funds? No. Employers are not fiduciaries under Washington Saves. They will not be liable for any market gains or losses, or investment decisions approved by the governing board.
• What happens if a complaint is filed against an employer for violating administrative responsibilities? If a complaint is filed, L&I will investigate and determine whether the employer is in violation of any administrative responsibilities. If the complaint is filed before Jan. 1, 2030, and the employer is found to be in violation, the department will offer technical assistance. For complaints filed on or after Jan. 1, 2030, L&I must first send an educational letter explaining how an employer found to be in violation of their responsibilities can get back into compliance. Only willful violations – those in which the employer knowingly or intentionally shirked its administrative responsibilities – may be subject to civil penalties after Jan. 1, 2030.
• What are the penalties for failing to comply with the requirements? For violations occurring after Jan. 1, 2030, the maximum penalty for a first-time willful violation is $100 and $250 for the second willful violation. The maximum penalty for each subsequent violation is $500.
• How long do employees have to file a complaint? L&I may not investigate any alleged violation that occurred more than three years before the date the complaint was filed.
• Will employers be allowed to appeal citations and assessments? Yes. After L&I issues a citation, an employer will have 30 days to appeal.
• What if an employee files a complaint alleging contributions were not remitted to Washington Saves in a timely manner or not remitted at all? Complaints of unlawful deductions will be investigated as alleged violations of employee wage protections under the Wage Payment Act.

The Washington Saves Governing Board will convene in 2025 to begin creating the program. Throughout 2025 and 2026, the board will work to establish, design, develop, and implement the program. In doing so, they must consult with impacted businesses and workers. During this phase, the board must submit two reports to the legislature:

• A preliminary report: Due Dec. 1, 2025, the report will include feedback on the proposed timeline. It must also detail progress on required outreach initiatives and program implementation.
• A final report: Due Dec. 1, 2026, the report will include program design and implementation recommendations. It must include details on the board’s outreach activities, feedback received from workers and employers on design elements and the types of retirement accounts preferred, recommendations on whether the legislature should make changes to the program’s structure, recommendations on the board’s structure, and which state agency should provide administrative and staff support to the board once the program is operational.

In early 2027, L&I will begin working to educate employers about their responsibilities.

Washington Saves is scheduled to begin on July 1, 2027. However, to ensure a smooth start, the law allows the governing board to stagger implementation which may include phasing in implementation based on employer size or other factors.