What to Know About State-Mandated Retirement Plans

Learn About State-Mandated Retirement Plans

Has your state issued a mandate to begin a retirement plan for your employees? Or have you already enrolled your company into a state-mandated plan and wondered if it’s the best option for your company?

Whether you have an impending deadline from your state to start a retirement plan or are already enrolled in one, it is important to know that you can enroll your employees in any qualifying employer-sponsored retirement plan, such as a 401(k) plan through Beneco, where you can get help from set-up to disbursement. 

NOTE: You don’t have to work on prevailing wage projects to take advantage of the Beneco 401(k) plan.

What are the key differences between Beneco’s Retirement Plan & most state-mandated plans?

First and foremost, with the Beneco plan, you can reduce labor costs on prevailing wage projects by contributing fringe dollars to your company’s own 401(k) plan. Our 401(k) plan also allows company owners and highly compensated employees to participate. Plus, Beneco will help you with the administration of your plan and be there to help you with any questions.

One of the main differences between a 401(k) plan and a state-sponsored retirement plan is that most state plans are Roth individual retirement accounts (IRA). Here are a few of the others to think about:

Difference between 401k plan and State-Mandated plan

It is also important to note that employers in jurisdictions with state-mandated retirement programs who don’t comply with the requirements or miss enrollment deadlines may be penalized. These penalties vary by state.

Whether you have an approaching deadline, missed the deadline, or looking for a better option for your company, you can contact Beneco to find answers to your questions. We can also help you learn about maximizing your prevailing wage dollars, staying in compliance, and creating a benefits plan that works best for you and your employees. You can also read more about the Beneco 401(k) Plan here.

Click the map below for Georgetown University’s Center for Retirement Initiatives Interactive Map.

State-Mandated Program Map from Georgetown University Center for Retirement Initiatives

Through unique employee benefits, compliance services, and HR solutions, we ally with contractors to empower them to build their businesses, while helping their employees to build a secure and prosperous future for their families.

Reach out to us for questions about your plans.
Participants/Employees: Call 888.608.2680

Plan Sponsors/Employers: Email clientsuccess@beneco.com,
or call 877.532.3797

Mailing Address
P.O. Box 219664
Kansas City, MO 64121
800.965.2702

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