Check CalSavers off your to-do list with Guideline

California businesses with at least one employee have to offer
a retirement plan by Dec. 31, 2025, or face penalties.2

Join the 50,000+ businesses that trust Guideline.3

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50K+
businesses3
1M+
savers4
93%
customer satisfaction score5
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Innovation by Design Award 20246

What is CalSavers?

Established in 2016, the law requires California employers with at least one employee to offer the state-sponsored plan, CalSavers, or a qualified alternative like a Guideline 401(k) by December 31st of the year in which your business becomes eligible.2 Let’s look at your options.
  • 1-4 employees

    December 31, 2025

  • 5+ employees

    Deadline passed, penalties being enforced

"CalSavers is not free if it takes up your time and your worry."

Cliff J., North Valley Counseling

Client of Guideline. Views may not be representative of other clients.
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The penalties could cost you thousands

  • Fines in California
up to $750/employee
You'll owe $250 per employee the first 90 days you're out of compliance, then an additional $500 per employee if you're still out of compliance at 180 days.2
  • Guideline Starter
$39/month + $4/month per active participant7
Your new 401(k) could be 100% covered with tax credits.1
Starter’s simplified plan design and no employer matching helps
make it easy and affordable to meet the mandate.
Why pay hundreds in penalties when you can save thousands with tax credits?1
See if you’re eligible

Compare Guideline Starter with CalSavers

Guideline logo
CalSavers
  • Retirement plan type
    Starter 401(k)
    Roth IRA
  • Tax benefit
    Pre or Post tax
    Post-tax only
  • Employee asset-based fee
    0.15%8
    0.30%9
  • Additional active employee fees
    None10
    $18/year account fee10
  • Professionally managed portfolios11
    6
    0
  • Investment options11
    40
    17
  • Payroll integrations
    25+ platforms
    Not disclosed
  • Exempt from IRS testing
    Yes
    Yes
  • Scales to a standard 401(k)
    Yes
    No
The state doesn’t specialize in retirement. We do.
  • Lightening bolt simple icon.

    ~9 minutes to get started

    We help get you set up and enroll your employees for you, while CalSavers can add more work to your already full plate.
  • Two hands shaking simple icon.

    Easy and affordable

    74% of customers went with Starter over the state’s program due to less complexity or low cost.12
  • Icon consisting of three people beneath a heart shape

    Lower employee fees

    Your team’s dollars can go further with Guideline thanks to lower employee fees than CalSavers.8,9 Learn more
Rich H.Pallas Care
It wasn’t worth the business risk, or the stress, to do a state program without a payroll integration. Guideline Starter was an easy choice.Client of Guideline. Views may not be representative of other clients.

Direct integrations. Accurate information.

All of our payroll integrations are direct and custom-built—no third-party software to introduce security risks or slow you down with inaccuracies. See all payroll integrations
  • and more
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Your new 401(k) could be 100% covered

If you’re starting a new 401(k), your small business may be eligible to receive up to $16,500 in tax credits over the plan’s first three years to help offset plan costs.1

Skip the state mandate stress.
Get compliant in just 10 minutes today.

See our Privacy Policy to learn how we use and protect your information.

CalSavers FAQs

What is the mandate?

The CalSavers Program was created to encourage more people to save for retirement. It requires California employers with at least 1 employee to provide access to a retirement plan. The plan can either be a private plan like a 401(k) or the state-sponsored plan.

When does the mandate take effect?

For businesses with 5+ employees, the initial deadline has already passed. For newly established businesses or businesses that hire their 5th employee, the deadline is December 31st each year.

For companies with 1-4 employees, the deadline is December 31, 2025.

Which employers are impacted by the retirement mandate?

You are eligible to participate in the CalSavers Program if:

  • Your business is registered to conduct business in the state of California
  • You have at least one California based employee
  • Your employees must be 18 years old to enroll in CalSavers
  • You don’t currently offer a qualified retirement savings program to your employees

Are there penalties for not offering a retirement benefit?

Yes. Employers will be subject to a penalty equal to:2

  • $250 per eligible employee if noncompliance extends 90 days or more after being served a notice of failure to comply
  • Additional $500 per eligible employee if noncompliance extends 180 days or more after the notice
  • An annual notice, including an additional $500 penalty per employee that may be issued until compliance is reached.

Does Guideline satisfy the retirement mandate?

Yes. All of Guideline's 401(k) plans are designed to satisfy state program requirements and are priced to be affordable for businesses of all sizes.

Do I have any fiduciary responsibilities?

Just like with the state offering, you won’t be responsible for investment option choices. We’ll serve as the ERISA 3(38) fiduciary which means we’re responsible for selecting and managing all investment options — our goal is to reduce your liability and provide you with peace of mind.11 Learn more

Can I move from Guideline Starter to a standard 401(k)?

While it is possible for a plan to convert from a Starter 401(k) to a standard 401(k) plan at Guideline, the transition cannot take place until the beginning of the next calendar year. Learn more here.
  • 1
    This content is for informational purposes only and is not intended to be taken as tax advice. Please consult a tax professional to determine what types of tax credits or deductions your company is eligible to claim.
  • 2
    The Calsavers mandated registration deadline with at least 1 employees (as reported to the EDD in the preceding calendar year), who are not otherwise exempt from participation, can register with CalSavers. The registration deadline for employers with 1-4 employees is December 31, 2025. Requirements to report your exemption apply. Guideline has prepared this summary from third-party sources as of March 2025. The information herein is considered to be reliable at the time of writing, may not necessarily be all-inclusive, is not guaranteed as to accuracy and is subject to change at any time without notice. The information provided herein is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal and/or financial advice that considers all relevant facts and circumstances. Investing involves risk and investments may lose value. You are advised to consult a qualified financial adviser or tax professional before relying on the information provided herein. Deadlines, fees, and other program details are subject to change by the state without notice and should be checked prior to making any decisions and can be reviewed by visiting the State of California’s Franchise Tax Board. Visit the CalSavers’ site to learn more.
  • 3
    As of May 2024
  • 4
    As of August 2024
  • 5
    Guideline’s average plan sponsor satisfaction score (CSAT) based on feedback received from 1/1/2024 to 12/31/2024.
  • 6
    2024 Fast Company Innovation by Design Award Winner for Guideline’s mobile application in the Mid-Size business category.
  • 7
    See here for more information regarding fees.
  • 8

    Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser. An assumed annual account fee of 0.15% is applied to assets under management and is deducted on a monthly basis. It’s calculated at 1/12 of the annual stated rate (0.15%) based on the account balance on the last day of each month. Alternative account fee pricing is available, ranging from 0.15% to 0.35%. Contact Sales at hello@guideline.com to learn more about exclusive pricing options available in Enterprise tier. See the Form ADV 2A Brochure for more information regarding this fee.

  • 9
    CalSavers charges an assumed annual account fee of between 0.30% (.05% State Fee and a .25% Program Administrative Fee) on assets under management as of February 2025 according to CalSavers Program Description. This fee includes the State Fee and the Program Administrative Fee. The State Fee is payable to the Board to offset expenses related to the establishment, oversight, and administration of the Program. The State Fee accrues daily and is factored into each Investment Option’s Unit Value. The Program Administrator receives the Program Administration Fee for providing recordkeeping and administrative services for the Program pursuant to a contract with the Board. The Program Administration Fee accrues daily and is factored into each Investment Option’s Unit Value. The fee presented does not include other fees that an employee may incur, including, but not limited to, underlying fund fees. Fees are subject to change by the state without notice and should be checked prior to making any decision.
  • 10
    The fee presented does not include other fees that a 401(k) participant may incur, including, but not limited to, from mutual fund expense ratios and a monthly maintenance fee to participants who end employment.
  • 11

    Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser, the “Affiliated RIA”). Specific references herein to “asset-based fees” or “investment options” or “we” or “our” in this specific context is referring solely services provided- or fees charged- by the Affiliated RIA. See the Affiliated RIA’s Form ADV 2A Brochure for more information regarding its services and fees. Recordkeeping services are offered by Guideline RK, LLC. 3(16) plan administration services are also offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.

  • 12
    Source: Based on data collected in 2024 from a survey of 81 Guideline Starter customers. The experiences of the respondents in this survey may not be representative of all people.

Guideline.com is owned and operated by Guideline, Inc. This website contains content from Guideline, Inc. and its affiliates, each a separate entity with different regulatory marketing requirements and standards. References to "our" or "we" on this website refer solely to Guideline RK, LLC unless otherwise specifically stated.

The information in this website is for informational purposes only and is not intended to be an offer, recommendation, investment advice, legal or tax advice, or a solicitation to buy or sell any security. By using this website, you agree to Guideline, Inc.’s Privacy Policy and Terms and Conditions of Use. Neither Guideline, Inc. nor its subsidiaries, are responsible for information provided by third parties. Information included herein from third parties is believed to be reliable however Guideline, Inc. does not guarantee the accuracy and completeness of that information.

Guideline, Inc. is a technology company that provides an integrated platform to companies who seek to work with 1) Guideline RK, LLC ("Guideline") and/or 2) Guideline Investments, LLC, an SEC Registered Investment Adviser ("RIA"), both of which are wholly owned by Guideline Holdings, LLC. Guideline Holdings, LLC is wholly owned by Guideline, Inc. Neither Guideline, Inc. nor Guideline Holdings, LLC or Guideline RK, LLC is involved in securities activities and is not registered with the SEC or FINRA. Neither Guideline, Inc., nor any of its affiliates, is a bank.

Investment advisory services for Guideline’s 401(k) (when 3(38) fiduciary services are selected) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser. For more information regarding fees and services, see Guideline Investments, LLC’s ADV 2A Brochure and Form CRS. References throughout this website to investment advisory services including but not limited to: investments offered, portfolios, managed portfolios, investment philosophy, assets under management (AUM), annual account fees expressed as a percentage of AUM, suitability questionnaire, 3(38) investment advisory management fiduciary services, robo-advisory services, and investment advice, unless otherwise specifically stated, are services provided by Guideline Investments, LLC. Investing involves risk and may lose money, including loss of principal. Investing is not guaranteed and past performance is not a guarantee of future performance. The investment options offered by Guideline Investments, LLC are not FDIC insured.

Recordkeeping services for Guideline’s 401(k) and SEP IRA/IRA products are offered by Guideline RK, LLC. 3(16) plan administration services are also offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. For more information on Guideline’s pricing, see here. Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.

Any graphs, charts, and other visual aids (collectively referred to as "image(s)") are provided for information purposes only. None of these images can of themselves be used to make investment decisions. No representation is made that these will assist any person in making investment decisions and no image can capture all factors and variables required in making such decisions.

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