State auto-IRA
In accounting, state auto-IRA means a state-run retirement program that employers without a retirement plan must make available, deducting employees' contributions from payroll unless they opt out: the employer's participation is mandatory, the employee's voluntary. California's CalSavers covers employers with one or more employees and charges $250, then a further $500, per eligible employee for noncompliance.
Also called CalSavers.
Authority: California FTB — AB 2650 analysis (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- 401(k)
- state pension
Also in Benefits
Defined in Lexicon. This page is generated from that document, so the two can't disagree.