Everything you need to know about California’s sponsored retirement savings program, and why you should consider an alternative.

What you need to know

Starting in 2020, California state law requires employers who don’t already offer an employer-sponsored retirement plan, and who have five or more employees, either offer one via the private market or register with CalSavers.

If employers do not comply with their applicable registration deadlines, they will be penalized for non-compliance.

The three-year phased rollout includes staggered registration deadlines dependent on company size, however, all eligible employers are encouraged to register prior to their deadline.

Consider other options

While the CalSavers program may seem like a good option, it is extremely limiting to both the employee and the employer.

Not only does it not allow employees to contribute as much as they could with a 401(k), but it charges a high asset-based fee that literally eats away at retirement savings.

Since CalSavers is an individual Roth IRA, contributions are made with after-tax dollars and are not tax-deductible. High-income earners are discriminated against and cannot participate in the program.

A better option: SaveDay’s CalSavers compliant 401(k) plans

SaveDay doesn’t cost a thing to the employer, is extremely affordable for employees, and we take care of the work that CalSavers leaves to the employer.

Our 401(k) plans offer more flexibility for auto-enrollment, employer contributions, and allow for tax-deductible contributions. Oh, and we take care of all recordkeeping, administration, and compliance duties.

Bottom line – we do all the work for you, have more retirement plan flexibility, and are more affordable than CalSavers.

The Only 401(k) Provider You’ll Ever Need

We cover everything you need, at absolutely no cost to the the employer.

Managed Investments

Your employees have access to index funds from leading fund managers. We’ll even help them choose the right managed portfolio with blended average fund fees of 0.06%.


SaveDay® performs nondiscrimination testing and manages any required corrections. Our compliance-friendly Safe Harbor plans are also available to businesses of any size.

Custodial Services

As the broker-dealer, we work directly with a third-party custodian to validate transactions and execute trades. Your 401(k) plan takes advantage of the savings.


As your recordkeeper, SaveDay® tracks all of your 401(k) plan’s balances, transactions, withholdings, and deferrals.

Fiduciary Services

For eligible plans, SaveDay® acts as your ERISA 3(16) and 3(38) plan fiduciary. For more information, click here.

Government Filings

SaveDay® also has you covered by preparing annual reports for no extra fee, including Form 5500 and 8955.

Portfolio Management

SaveDay® utilizes an internal automated investment program (i.e. virtual-advisor) to recommend and actively manage portfolios for 401(k) participants. The virtual-advisor proprietary technology and related advisory algorithms are easy to use and clear in their functionality. SaveDay® works as the administrator and utilizes WealthyX as an SEC-registered investment advisor, and Kapitall Generation as an SEC-registered broker-dealer.

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