Help CenterOnce an employer registers their employee list with CalSavers, their employees will automatically be registered for CalSavers with their own account. CalSavers will contact each employee with account details.
After receiving account details, employees have 30 days to opt out of CalSavers.
Employees enrolled in CalSavers can choose how they want to contribute to the plan. The default savings rate is 5% of gross pay, which each employee can accept or change. CalSavers will let employers know about each employee’s chosen contribution, so that your Hourly admin can deduct the correct amount.
Employees can manage their CalSavers accounts online, through the mobile app, or by phone at 855-650-6918. At any time, employees can change their contribution rate, investment choices, designate a beneficiary, and turn automatic escalation on or off. (When auto-escalation is on, the percent contribution will increase 1% each January 1, until a maximum contribution of 8% is reached.)
Employees can also opt out at any time, or withdraw or transfer funds.
IMPORTANT: Employees should understand that changes to their CalSavers account do not automatically carry over to Hourly. For each employee account change, CalSavers notifies the employer. The employer’s Hourly admin is responsible for updating the CalSavers contribution in Hourly.
What Your Employees Should Know
- A CalSavers account is tied to the employee, not the employer. So each employee can keep the same account throughout their career.
- If an employee leaves a job, or changes employers, all contributions remain in their account, and they can continue contributing regardless of where they work.
- CalSavers contributions are post-tax, unlike a 401K which is deducted before taxes.
- There is an annual contribution limit established by the IRS. For 2021, this limit was $6,000 for those under 50, and $7,000 for those 50 and older.
- This limit applies to all of their combined IRA accounts. So if they have other IRA accounts, be sure that their CalSavers contribution plus other contributions do not exceed the IRS limits.
- Eligibility to participate in a Roth IRA is limited to certain annual income levels. To determine eligibility, please visit the IRS website.
- Contributions must be at least $10.
- CalSavers deducts administrative charges between 0.825% to 0.95% of each contribution, depending on their investment choice.