Is Your Business Ready for California’s Retirement Plan Requirement?
If you own a business in California — even if you have just one employee — there’s a new rule you can’t afford to ignore.
By December 31, 2025, all employers must offer a qualified retirement savings plan or enroll their employees in the CalSavers state program.
This law was created to ensure every working Californian has access to a retirement savings option — but for business owners, it also brings new responsibilities and potential penalties for non-compliance.
What the Law Requires
The California Secure Choice Retirement Savings Trust Act mandates that all employers with at least one employee and no existing retirement plan (like a 401(k), SIMPLE IRA, or SEP IRA) must register for CalSavers or provide a qualified alternative plan.
Key points:
Deadline: December 31, 2025
Applies to: All California businesses with 1+ employees
Employers must:
Register with CalSavers or
Offer a qualified retirement plan through a private provider
Failure to comply could result in penalties of up to $750 per eligible employee.
What Happens If You Don’t Comply
Non-compliance isn’t just about fines. It can also:
Damage your business’s reputation and credibility with employees and regulators
Create administrative burdens later when trying to fix missed deadlines
Limit your ability to attract and retain top talent, especially as employees increasingly value financial wellness benefits
In short, waiting too long can cost you — financially and competitively.
A Smarter Way to Meet the Requirement
While CalSavers is a state-run Roth IRA program, it has limits:
Employee contribution limits are capped at $7,000–$8,000 annually
Employers cannot contribute
Investment options are limited
There are no tax benefits to the employer
That’s why many businesses are choosing to explore options outside of CalSavers to meet compliance and offer more value to both the business and employees.
At Childress Financial Consultants, we help business owners:
Understand their compliance requirements
Evaluate cost-effective private plan options
Create supplemental strategies (like Indexed Universal Life (IUL) plans and Annuities) that build wealth and protect assets
Educate employees on how to maximize their retirement savings
Let’s Make Sure You’re Covered
Don’t wait until the deadline. Take a proactive step to protect your business and empower your employees with better retirement options.
Start here: Join us for the Retirement Plan Compliance Workshop, hosted in partnership with the Menifee Valley Chamber of Commerce, to learn exactly what the state requires — and how to meet those requirements without added costs or confusion. Whether you’re a small business owner or an HR professional, this workshop will give you clear, practical strategies to protect your business, support your team, and strengthen your retirement benefits package. Reserve your seat today and take the first step toward compliance and financial confidence for you and your employees.
Next step: Schedule a free consultation with Childress Financial Consultants to:
Ensure compliance with the state mandate
Review your best options for business and employee retirement planning
Explore strategies to grow and protect your wealth
Secure your business. Empower your team. Build your legacy.
That’s what smart retirement planning is all about.
About Childress Financial Consultants
Kwesi and Cheri Childress are the husband-and-wife team behind Childress Financial Consultants, helping families and business owners plan for retirement with confidence. They specialize in maximizing Social Security benefits, protecting assets, and creating lasting legacies through safe-money strategies.
Together, they believe retirement planning isn’t just about money — it’s about family, freedom, and leaving a lasting legacy.
Schedule your complimentary Retirement Readiness Consultation today by calling (310) 256-7377 or sending an email to kchildress@cigbh.com.