Missouri is the latest state to join the Auto-IRA bandwagon. The Show-Me Retirement Savings Plan provides an IRA-type savings program for individuals employed by employers who do not otherwise offer a retirement plan. The law applies to employers employing no more than 50 employees.
The law establishes the Show-Me Retirement Savings board to design, develop, implement, and maintain the plan. The Board shall establish the plan so that individuals are able to begin contributing under the plan on or before September 1, 2025. The Board may implement the plan in phases based on employer size as long as such phased-in implementation schedule is completed on or before September 1, 2025.
An eligible employee is an individual who is employed by a participating employer, who has wages or other compensation that is allocable to the state, and who is eighteen years of age or older. Eligible employee does not include any of the following:
- Any employee covered under the federal Railway Labor Act,
- Any employee on whose behalf an employer makes contributions to a multiemployer pension trust fund, or
- Any individual who is an employee of the federal, state, or local governments.
The Board shall establish the processes for enrollment and contributions under the plan, including withholding by participating employers of employee payroll deduction contributions from wages and remittance for deposit to the plan.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.