OLYMPIA—Washington Saves, starting in 2027, is a state-facilitated automatic Individual Retirement Account (IRA) program designed to bridge the retirement savings gap for workers in Washington who lack access to employer-sponsored plans.
The program was created from Senate Bill 6069, passed by the Washington State Legislature in March 2024 and signed into law by Governor Jay Inslee on March 28, 2025, under RCW 19.05. The bill’s primary sponsor was Senator Mark Mullet (D-Issaquah) with several co-sponsors including local state senator Marko Liias (D-Edmonds).
A Pew Charitable Trusts (Pew) study released December 2023 found that forty-three percent (43%) of private sector workers in Washington—some 1.2 million workers—lacked access to a workplace retirement plan, particularly in small businesses or gig economies. The study was part of a 2023-25 biennial operating budget request that directed the Department of Commerce to assess retirement preparedness of Washington residents.
By creating Washington Saves, the state joined 19 other states with similar enacted state-facilitated auto-IRA initiatives. The thirteen states with active operational programs as of November 2025 are: California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont, and Virginia.
Washington Saves functions through automatic enrollment for eligible employees aged 18 and older at covered employers, with contributions deducted from paychecks and invested in a professionally managed IRA—either traditional (pre-tax) or Roth (post-tax), based on program options. The default contribution rate, set by the governing board between 3% and 7% initially, can escalate by up to 1% annually to a 10% maximum, according to the Final Bill Report.
Participants receive a default investment allocation but can select alternatives, including a self-directed option, or reallocate funds anytime.
“It’s an auto IRA program,” explained Cal from the Washington Saves team at the Department of Financial Institutions (DFI). “Any employee will be automatically enrolled. They’ll have an enrollment period to opt out. If you don’t opt out during that period, you can opt out at any time. Your money is your money.”
For enrollees, the plans are portable ensuring accounts travel with workers across jobs—self-employment or unemployment—all in one secure consolidated program.
“I know a lot of people who work for multiple employers,” Cal said. “Instead of having multiple 401Ks, if you have Washington Saves, if you’re contributing at two employers, it goes into the same account.”
This flexibility empowers individuals to build wealth toward retirement; however federal law prohibits employer matching for IRAs.
Employers play a facilitative role without fiduciary liability or administrative overhead costs, a key relief for small business owners.
Covered employers—those in business in Washington for at least two years, with a physical presence, at least 10,400 combined employee hours the prior year (roughly five full-time equivalents), and no qualified retirement plan for employees with one year of continuous service—must register, provide employee rosters, distribute disclosures, and remit deductions timely.
“The requirement is meant to be easy to administer, and no cost to the employer, and no financial liability as well,” said Heidi Iyall, Outreach and Marketing lead for Washington Saves at DFI.
Non-covered employers or self-employed individuals may join voluntarily. Iyall clarified wit the Lynnwood Tems that the program is still under development and “there are still some decisions to be made by the Governing Board that will determine how the final program will look.”
A 15-member Washington Saves Governing Board will oversee design, implementation, and operation of the program, with expertise from lawmakers, financial professionals, and advocates.
Membership includes the State Treasurer, the Director of Labor & Industries (L&I) or designee, one representative each from the two largest Senate and House caucuses, and nine Governor-appointed members representing securities, insurance, certified financial planners, small businesses, minority- and women-owned businesses, asset-building coalitions, retirement advocates, covered employees, and employers. Terms are three years, with DFI providing administrative support.
The board will also contract for investment management, set policies, collect modest fees, and annually report to the Washington State Legislature on participation and performance of the program.
The inaugural board meeting convened on June 30, 2025, where State Representative Kristine Reeves (D-Federal Way) led proceedings and was elected co-chair alongside Representative Hunter Abell (R-Inchelium). A preliminary report on timelines, outreach, and progress is due December 1, 2025, followed by a final design and feedback report on December 1, 2026. Education for employers ramps up in early 2027 through L&I, with full operations launching July 1, 2027—potentially phased in for an employer depending on employer size for a smoother transition.
Enforcement rests with L&I, which handles complaints from employees or representatives filed within three years of violations. For administrative lapses like failure to enroll or inform, L&I investigates, offers technical assistance or educational letters, and issues citations only for willful violations after January 1, 2030. Current penalties for employers who fail to comply are $100 maximum for the violation, $250 for the second, and $500 per subsequent offense.
Unremitted contributions trigger Wage Payment Act probes. Employers have 30 days to appeal citations, ensuring due process. If a worker believes their employer is failing to automatically enroll workers in Washington Saves, that worker can file a complaint with L&I.
Washington Saves promises retirement access, with employees holding rights to opt in/out, adjust rates, and control investments, while employers fulfill minimal administrative duties with no state fees or costs.
“It’s a way for employers to support their employees in building their wealth into retirement,” Iyall shared with the Lynnwood Times. ” It shows that they value their employees and want to see them be financially secure.”
To learn more about Washington Saves, visit wasaves.com. Also, Washington Saves will soon be announcing Requests for Proposals (RFPs) for fund managers, so sign up for the latest updates and notifications.
Author: Mario Lotmore
