If you’re a small business in California with 1 to 4 employees, there’s an important deadline on the horizon: by December 31, 2025, you must offer your team access to a retirement savings plan. Many businesses assume CalSavers is their only option—but that’s simply not the case.
CalSavers is California’s state-run retirement savings program designed for employers who do not offer a qualified plan. It’s a Roth IRA-based solution that allows employees to save for retirement through payroll deductions. While it satisfies the state mandate, it comes with serious limitations:
Why CalSavers Might Not Be Enough
Limited plan design – CalSavers is a one-size-fits-all program with little flexibility. You can’t contribute as an employer or customize the plan to better suit your employees.
Restricted investment options – Employees only have access to a narrow menu of investment funds.
No tax advantages for the employer – Because employer contributions aren’t allowed, you miss out on the tax benefits and retention advantages of more robust plans.
Administrative burdens still apply – You’re still required to register, manage employee enrollments, and process payroll deductions.
Better Alternatives for Small Business
The good news? CalSavers is not your only choice.
Small businesses now have access to affordable, customizable retirement plans that meet the state mandate and deliver far greater value to both you and your employees. Options like 401(k)s, SIMPLE IRAs, and SEP IRAs—especially through providers like 401GO—offer:
Employer contribution flexibility
Broader investment choices
Tax advantages for business owners
Better employee retention and engagement
Even better? These plans can be cost-effective, easy to administer, and designed to grow with your business.
Don’t Wait Until the Deadline
Getting ahead of the mandate now gives you time to explore your options, set up the right plan, and communicate the benefits to your team.
At Infinium HR, we help small businesses implement compliant retirement solutions that do more than just check a box—we help you build a real benefit that supports recruitment, retention, and long-term success.
Need help reviewing your options? Let’s talk, or visit our Retirement Options web page for more information on how we can help you improve your culture and automate your retirement plan.