New York Secure Choice: A Mandatory New Savings Program

As concerns over retirement savings grow, many states are implementing programs to close the gap and offer employees a chance to increase their savings. New York is the latest one to join the fray.

As of the end of 2025, the state legislature officially launched the New York Secure Choice Savings Program. Since this new program affects both employers and employees, both groups need to understand the details that go into New York Secure Choice so they can comply correctly and make choices that best suit their goals.

In this blog, we’ll dive into:

• Who is eligible for the program

• How the program works

• How to get started to meet deadlines

  
  

What is the New York Secure Choice Savings Program?

This is a new state-sponsored retirement program that gives savings opportunities to private-sector employees who don’t have retirement plans through their jobs. They’ll be able to contribute to a Roth IRA at the minimum rate or adjust it to their liking.

Before now, it wasn’t uncommon for small to medium-sized businesses to not offer work-sponsored retirement plans. Under the Secure Choice Program, businesses that meet the program’s requirements will have to enroll by specific deadlines or offer other plans to give their employees a way to save for retirement.

Who is Eligible for New York Secure Choice?

The eligibility requirements for the program differ for employers and employees. If you check the boxes, you’ll need to take steps to enroll (and leave) before deadlines.

For Employees:

Employees are eligible to start saving through New York Secure Choice if you:

• Are at least 18 years old

• Earn a taxable wage in New York State

  
  

For Employers

Employers are required to enroll in New York Secure Choice if you:

• Have 10 or more employees

• Don’t currently offer a qualified retirement plan

• Have been in business for at least two years

  
  

What is the Deadline for Enrolling?

Employers whose businesses meet the requirements will have to move quickly to enroll. 

The program has the following deadlines based on employee numbers.

• March 18, 2026, if you have 30 or more employees

• May 15, 2026, if you have 15 to 29 employees

• July 15, 2026, if you have 10 to 14 employees

Before you start thinking, “Great, another thing to worry about,” consider the perks of enrolling in this savings program.

How Does New York Secure Choice Benefit Me?

Employers and employees alike can see some advantages from being part of the Secure Choice program.

By offering this state-sponsored retirement plan, employers:

• Avoid facilitation fees and fiduciary responsibilities

• Have an easy-to-use and maintain program

• Do not have to add to employee contributions

By enrolling in this retirement plan, employees:

• Save a portion of their paycheck automatically

• Choose a contribution rate that fits their preferences

• Carry over the plan if they switch jobs

For the first 30 days of your plan, your funds will be invested in the Conservative Principal Protection option. After that initial period, existing savings and future contributions will be invested in a default Target Retirement Date option based on your ideal retirement age.

Does the Plan Have Downsides?

The plans also come with a few restrictions, which include:

• Contribution Rates: Employees can contribute a max of $7,500 per year, or $8,600 for savers over 50.

• Borrowing Limits: Savers can’t borrow money from these accounts.

• Employee-Match: Unlike other employer-sponsored retirement plans, employers can’t match employees’ contributions here.

Because of these limits, it’s important to explore all options available to you. 

How to Get Started with the New York Secure Choice Savings Program

New York will send access codes to all business owners who meet the program requirements. Once you have your access code, enrolling in the program is as easy as:

• Registering with the program

• Setting up contributions through payroll deductions

• Maintaining employee contribution moving forward

New York offers an easy checklist to make sure you’re following the right steps.

For employees, enrollment is even easier. You’ll just have to decide to:

• Set up and customize your NY Secure Choice account,

• Let the program set aside savings automatically, or 

• Opt out entirely until you want to participate

  
  

Saving Smarter for Retirement with AVM DeMars

Whether you’re a New York small business owner needing to start complying with this new retirement plan or an employee who wants to start planning for the future, make sure you take the right steps. 

The team at AVM DeMars is your trusted tax experts on Long Island and the surrounding areas. We always stay on top of the latest tax rulings so you can trust us to get you primed for tax season. Let’s work together so you’re fully compliant with these new obligations. Contact us today to get started.