Colorado’s Retirement Plan Mandate: What Employers Need to Know
Colorado’s Retirement Plan Mandate: What Employers Need to Know
A growing number of states have taken action to address a major gap in the retirement system: millions of workers lack access to an employer-sponsored retirement plan. Colorado is one of those states, and its solution—the Colorado SecureSavings Program—now effectively requires many employers to offer a retirement savings option to their employees.
For business owners, this isn’t just a policy change—it’s a compliance requirement that carries real implications. Understanding how it works, who it applies to, and what your options are is critical.
Why This Law Exists
The driving force behind Colorado’s retirement mandate is simple: access.
A significant portion of the workforce—particularly employees of small and mid-sized businesses—historically had no easy way to save for retirement through payroll deductions. Studies consistently show that people are far more likely to save when it’s automatic and employer-facilitated.
Colorado’s legislature responded by creating a system that ensures employees have access to a retirement plan, even if their employer doesn’t offer a traditional 401(k).
The Core Requirement
At a high level, Colorado law now requires employers to do one of the following:
Offer a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP IRA), or
Enroll employees in the state-sponsored Colorado SecureSavings Program
This mandate applies to most private-sector employers who:
Have 5 or more employees
Have been in business for at least 2 years
Do not already offer a retirement plan
What Is Colorado SecureSavings?
Colorado SecureSavings is a state-sponsored retirement program designed to be simple and low-cost for employers. In short, the program is meant to remove the traditional barriers—cost, complexity, and liability—that prevent small businesses from offering retirement plans.
To find out more, visit their website directly at: https://coloradosecuresavings.com/
At this point in time (2026), all applicable employers should already be compliant or actively working toward compliance.
Employer Options: Private Plans vs SecureSavings
So, if you are a business owner and wondering whether to set up a private retirement plan or go with the state sponsored version, consider the following:
Option 1: Use Colorado SecureSavings
Pros:
No cost, minimal administration, no fiduciary responsibility & quick implementation
Cons:
Roth-only (no pre-tax option), lower contribution limits than 401(k)s, no employer match allowed & limited investment flexibility.
Perhaps most importantly, it doesn’t give employees access to a dedicated financial advisor
Option 2: Offer a Private Retirement Plan (e.g., 401(k))
Pros:
Higher contribution limits, ability to offer employer match, greater customization & stronger recruiting/retention tool
Access to a dedicated advisor to help employees not only with their retirement plan, but with their overall financial plan
Cons:
Administrative complexity, potential fiduciary responsibility, costs (though tax credits may offset these)
Ultimately, it comes down your objective as a business owner. If you’re looking to simply comply with the law in the fastest, easiest and cheapest way possible, the state sponsored program is probably the way to go.
On the other hand, if you’re looking to compete for talent and offer your employees a high quality retirement plan, with access to a financial advisor, you should look into setting up some type of employer sponsored plan like a 401(k).
Main Takeaway:
Colorado’s retirement mandate is ultimately about access—but for employers, it’s also about compliance, strategy, and competitiveness. If you’re a business owner, the key takeaway is simple:
You must either offer a qualified retirement plan or facilitate Colorado SecureSavings.
From there, the real question becomes:
Do you want to simply meet the requirement—or use it as an opportunity to strengthen your business and better serve your employees?
If you'd like to discuss starting a retirement plan for your employees, or review your current plan, reach out to me directly.
Ryan Page, CFP®, MBA®
Office & Text:720-826-1092
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
