Frequently Asked Questions

You do. Your retirement account is your personal property, and you have full control over it.

Yes. You can choose your savings rate and change it at any time—before enrollment or after. If you don’t choose a rate, you’ll be enrolled at a default rate set by the Washington Saves Governing Board. By law, this will be between 3% and 7% of your pay.

Yes. You will get multiple notices before enrollment starts. We want every employee to know about the program and have the tools to make informed choices. Our goal is to make saving easy and remove barriers to participation.

No. Employers cannot see your account or balance. They only process payroll contributions and will know who is participating and the savings rate you choose.

Employee participation is completely voluntary. You can opt out at any time—before enrollment or later. You can also opt back in whenever you want.

No. You always control your money. You can withdraw your savings at any time (IRS rules apply).

Yes. Your money is yours. You can withdraw it at any time, even after opting out. Keep in mind, IRS rules about withdrawals still apply.

No. Contributions are made after taxes are taken out of your paycheck.

It depends on the type of IRA you have. Washington Saves hopes to offer both Roth and Traditional IRAs, with Roth IRAs as the default.

Roth IRA: You pay taxes on your contributions before you save, so you can withdraw your own contributions at any time, tax-free.

• If you wait until you reach retirement age and have had the account for at least five years, you can also withdraw your earnings (interest) tax-free because Roth IRAs offer tax-free growth.
• If you withdraw earnings before meeting these conditions, taxes and penalties may apply.

Traditional IRA: You get a tax deduction when you contribute, which lowers your taxable income now. But you will pay taxes on withdrawals when you take out the money in retirement.

• If you withdraw early, you may also have to pay penalties unless you qualify for certain exceptions.

IRS rules apply to early withdrawals. Roth IRAs let you take out your own contributions anytime without penalty, but Traditional IRAs may have penalties for early withdrawals unless you meet certain exceptions.

State law requires employers to register and participate in Washington Saves if they meet the following criteria:

• Have operated in Washington for two or more years,
• Have a physical presence in Washington,
• Employ workers who together worked at least 10,400 hours (roughly equal to five full-time employees) in the previous calendar year, and
• Do not sponsor a qualified retirement plan.

Qualified retirement plans include:

• 401(a) – Qualified Plan (including profit-sharing plans and defined benefit plans)
• 401(k) plans (including multiple employer plans or pooled employer plans)
• 403(a) - Qualified Annuity Plan or 403(b) Tax-Sheltered Annuity Plan
• 408(k) - Simplified Employee Pension (SEP) plans
• 408(p) - Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA Plan

If you meet the eligibility criteria and do not offer a qualified plan you are required to facilitate Washington Saves for your employees. While the specific details are still in development, we expect employers will need to:

• Register by the state-required deadline and set up an account (deadline to be determined by the Washington Saves Governing Board).
• Submit and maintain an employee roster.
• Distribute information about the program to your employees.
• Submit employee contributions each pay period.

As an employer, there are no program fees and no employer contributions.

Employers facilitating the Washington Saves program are required by law to provide information on all eligible employees to the program. The program administrator and recordkeeper is the only entity with access to employee personal data. The administrator is held to a strict privacy policy and uses the highest level of security to protect personal data.

 Employees who do not want to participate can opt out at any time.

No. Employers are not allowed to contribute to an employee account or match employee contributions. If you wish to make contributions to a retirement plan on behalf of your employees, you can explore offering an employer-sponsored retirement plan.

Washington Saves is currently in development and anticipates launching in July 2027.