Washington Saves Is Coming. Here’s What Employers Should Know.
Beginning in 2027, certain Washington employers that do not currently offer a qualified retirement plan to employees will be required to either participate in the Washington Saves program or implement another qualifying retirement option.
While Washington Saves is technically a retirement plan compliance change, for many employers it also creates broader conversations around tax strategy, employee benefits, payroll administration, and business growth.
What Is Washington Saves?
Washington Saves is a state-facilitated retirement savings program designed for employees who do not currently have access to a workplace retirement plan.
Employees contribute to an IRA through automatic payroll deductions unless they choose to opt out.
Based on current guidance, employers will generally be required to participate if they:
Have operated in Washington for at least two years
Maintain a physical presence in Washington
Have employees working a combined 10,400+ hours annually
Do not currently offer a qualified retirement plan
The program is expected to begin rolling out in 2027. Employers who fall under the mandate will be responsible for facilitating payroll deductions and supporting certain administrative requirements.
Why Employers Should Pay Attention Now
One of the biggest misconceptions we’re seeing is the assumption that Washington Saves functions the same way as a traditional employer-sponsored retirement plan, when in reality the planning opportunities, flexibility, and tax implications can look very different depending on the structure.
For some employers, Washington Saves may absolutely make sense as a straightforward way to comply with the requirement. For others, especially businesses already thinking about retention, owner retirement planning, compensation strategy, or future growth, this may be a good opportunity to evaluate whether another retirement plan structure would create greater long-term value.
In many cases, retirement plans can create meaningful tax advantages for both the business and owners, especially when paired with available startup plan tax credits and more intentional compensation planning.
Those are the types of planning conversations we’re increasingly having with clients now, particularly as business owners evaluate whether options like SIMPLE IRAs or Safe Harbor 401(k)s better align with their long-term business and tax planning goals.
What We’re Seeing With Clients
For many growing businesses, Washington Saves is surfacing conversations that were likely coming anyway.
Some employers are realizing they may already be at the stage where implementing a more formal retirement plan makes sense regardless of the mandate, while others are reevaluating whether their current benefits remain competitive as hiring and retention continue to evolve.
We’re also seeing more business owners think strategically about how retirement planning connects to broader tax and compensation decisions, including owner contributions, taxable income, and future growth plans.
In many cases, the conversation becomes less about simply satisfying a requirement and more about making sure the business is structured intentionally as it continues to grow.
The Bigger Planning Opportunity
Washington Saves is ultimately designed to expand access to retirement savings, and for many employers it may work perfectly well.
At the same time, this is also a good opportunity for business owners to step back and evaluate whether their current retirement, compensation, and tax strategies still align with where the business is headed over the next several years.
And while this program is specific to Washington, similar state-facilitated retirement plan mandates continue to expand across the country. Employers operating in multiple states, managing remote teams, or planning for future growth may find these conversations becoming increasingly relevant beyond Washington alone.
If you’re unsure how these changes may affect your business, now is a good time to start the conversation.
