Navigating State Retirement Mandates: A Guide for Advisors

State-mandated retirement programs have moved from the margins to the mainstream. To address concerns about retirement readiness and encourage workers to save, an increasing number of states now require employers to either sponsor a qualifying retirement plan or enroll employees in a state-run program.

That trend is accelerating in 2026. More states are adopting mandates, and many are extending them to smaller employers, with the size and type of affected companies varying by state. For advisors, staying current on these requirements is increasingly essential to serving clients well by helping them comply, meet upcoming deadlines, and avoid penalties.

First, some background

State-mandated programs are government-facilitated at the employer level and typically take the form of automatic-enrollment individual retirement accounts (IRAs). Employees are enrolled by default but may opt out if they choose not to participate. In most states with a mandate, employers that already sponsor a qualifying plan—such as a 401(k)—are generally exempt from the state program.

As of June 2026, 15 states have active retirement plan mandates, and many more are either considering legislation or developing programs. Several states have recently launched or expanded their programs, and others are preparing to come online. Keeping pace with this shifting landscape is a challenge in itself.

A summary of recent developments

States with current, active mandates

California          Colorado        Connecticut        Delaware        Illinois        Maine        Maryland
Minnesota          Nevada        New Jersey        New York        Oregon        Rhode Island        Vermont
Virginia        Mississippi        Missouri        New Mexico (currently on hold)        Utah

Voluntary (non-mandate) state programs

The rapid expansion of state mandates reflects a broader shift in how small businesses approach retirement benefits—and it creates an opening for advisors. Rather than framing these mandates solely as a compliance obligation, advisors can use them to spark a broader conversation about plan design: the tax advantages, higher contribution limits, and added flexibility that an employer-sponsored plan can offer compared with a state-run IRA.

DWC works with advisors to navigate these technical requirements—clarifying how a particular state’s rules apply, confirming whether a client’s current plan meets a given mandate, and identifying where a more robust plan design may better serve the client. If you’d like to dig deeper into a specific state’s rules, deadlines, or thresholds, reach out to your DWC representative. We’re here to help you pass along the most current information and best advice to your clients.

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Appendix: Official state program portals

Always direct your clients to these official, government-run sites for registration and compliance questions.

Source: Gusto, “State Retirement Mandates in 2026: A Current Breakdown by State” (Stephanie Hogarth, updated June 2026). State details cross-checked against the Georgetown Center for Retirement Initiatives and Paychex.