If you’re a business owner in Oregon, you’ve likely heard of OregonSaves by now and have next steps on your radar so that you can meet the state’s mandate.
What’s important for employers to remember though is that OregonSaves isn’t their only retirement plan option. In fact, there are multiple choices for employers to choose from, like a 401(k), that still keep them compliant with Oregon’s requirements.
Below, we dive into everything you need to know about OregonSaves so that you can make the right choice while weighing your retirement plan options.
What is OregonSaves and How Does It Work?
OregonSaves is Oregon’s state-run retirement savings program that aims to help employees save more for their later years. It utilizes individual Roth IRAs that employees can put their savings in through payroll deductions.
Employees are automatically enrolled into their workplace’s OregonSaves program after a 30-day decision period unless they opt out or make their own election. The standard savings rate starts at 5% of gross pay and automatically increases 1% each year until it reaches 10%, unless the employer chooses otherwise.
On the employer side, they facilitate the program by adding eligible employees, processing payroll deductions, and submitting contributions. The things they don’t do are contributing to employee accounts or providing investment advice.
Who is Required to Participate in OregonSaves?
The answer to this is simple. OregonSaves applies to Oregon employers that don’t offer a qualified workplace retirement plan. This gives them the chance to implement workplace benefits and help get their teams on track when they otherwise might not have made the move. Employers may qualify for an exemption if they already offer a qualified plan or don’t have W-2 employees.
To participate, employees generally must:
- Have a verifiable SSN or ITIN
- Work for the employer for more than 60 days in a calendar year
This can include part-time, full-time, and seasonal employees. While employees can opt out of the program, employers that are subject to the mandate are still required to facilitate OregonSaves.
What are the OregonSaves Registration Deadlines?
OregonSaves has already been rolled out statewide. For newer businesses, the registration deadline is dependent on when the business was established.
OregonSaves Registration Deadlines for New Businesses
| Business Established |
Registration Deadline |
| January 1–March 31 |
July 31 of the same year |
| After March 31 |
July 31 of the following year |
What are Oregon Employers Required to Do Under OregonSaves?
If an employer is subject to OregonSaves, as we’ve mentioned, they responsible for facilitating the program but not for making contributions or managing employees’ accounts.
Generally, employers are in charge of:
- Registering their business with OregonSaves
- Adding eligible employees to the program
- Processing payroll deductions based on employee elections
- Submitting employee contributions each pay period
- Keeping employee information up to date
What Happens if an Employer Doesn’t Comply?
Employers that don’t meet OregonSaves requirements can face penalties, which can be very costly to fix! Under Oregon law, penalties can reach up to $100 per employee, up to a maximum of $5,000 per year.
So, employers that may be behind on their responsibilities should take the time now to review their status and take steps to comply or determine if they can qualify for an exemption.
Can Employers Opt Out of OregonSaves?
Not quite. Employees are the ones who can choose to opt out of the program. But under Oregon requirements, this doesn’t mean employers can simply opt out of facilitating the program.
However, a way of getting out of having to sign up for OregonSaves is by implementing a qualified retirement plan, like a 401(k). This gives businesses another way to meet Oregon’s retirement requirement while having more freedom to build a benefit around their goals.
How Much do Employees Contribute to Oregon’s State Retirement Program?
As mentioned, OregonSaves contributions come from employees through their payroll deductions. Employers don’t contribute to their employees’ accounts.
Employees can choose their own savings rate or use the program’s standard savings elections:
OregonSaves: How It Works
| OregonSaves Feature |
How It Works |
| Default contribution |
5% of gross pay |
| Automatic increase |
1% each year |
| Maximum auto-escalation |
10% of gross pay |
| Employee flexibility |
Employees can change their rate or opt out |
| Employer contributions |
Not permitted |
OregonSaves vs a 401(k): What’s the Difference?
Ultimately, OregonSaves and a 401(k) can both help employees build up their savings, but they work very differently.
As we’ve mentioned, OregonSaves is a state-facilitated Roth IRA program that’s funded by employee contributions through payroll deductions. So, employers manage the program but don’t directly contribute to their employees’ accounts. And on the other hand, a 401(k) is an employer-sponsored plan that can offer more flexibility, high contributions, and more savings depending on how it’s designed.
Here's a quick look at some of the key differences:
| Feature |
OregonSaves |
401(k) |
| Account type |
Roth IRA |
Employer-sponsored retirement plan |
| 2026 employee contribution limit |
$7,500 |
$24,500 |
| Employer contributions |
Not available |
May allow matching and/or profit-sharing contributions |
| Default employee contribution |
5% of gross pay |
Depends on plan design |
| Employee participation |
Employees are automatically enrolled after 30 days unless they opt out |
Depends on plan design and applicable requirements |
| Plan customization |
Limited |
Greater flexibility in plan design and features |
| Employer role |
Facilitate the program |
Sponsor and administer the plan |
What’s especially important to notice here is the contribution limit difference. In 2026, the IRA contribution limit is $7,500 while employees can defer up to $24,500 into a 401(k). And those who are eligible may be able to save even more thanks to additional catch-up contributions.
Is OregonSaves Right for Your Business?
If you just want to meet Oregon’s mandate, that is one thing. But choosing the option that makes the most sense for your business is another.
OregonSaves may make sense if:
- Your primary goal is to satisfy state requirements, and have the most straightforward, basic option.
- You don’t want to make employer contributions.
- You don’t need major flexibility around plan design
- You want a plan with no employer fees or fiduciary responsibilities
A 401(k) may be your choice if:
- You want the option to offer an employer match or profit-sharing.
- You want more flexibility for plan design and strategizing a competitive benefit around your workforce.
- You see a 401(k) as a major part of your plan to attract, retain, and award employees.
- You want employees to save more beyond IRA contribution limits.
Remember: There’s still no one-size-fits-all answer. The important thing to do is to look beyond the compliance box and think about what’s best for the longevity of your business and people.
Choosing a Retirement Plan for Your Oregon Business
While OregonSaves is the proposed way for Oregon business owners to implement a retirement plan, it isn’t the only option. Employers are able to go beyond the state-run option by offering another type of qualified workplace retirement plan, like a 401(k). And by doing so, they can open up new opportunities like more investment options, higher contributions, and better customization overall.
At Ubiquity, we help small businesses build flat-fee, customizable 401(k) plans around their goals. So, you don’t have to worry about a one-size-fits-all approach here. Whether you’re establishing your first retirement plan or exploring an alternative to OregonSaves, we’re here to help you understand your options.
Ready to explore your 401(k) options?
