Employers are already paying into retirement saving plans in addition to Social Security. Two examples of such retirement saving plans are 401(k) and 403(b) plans. Aside from the costs of establishing and maintaining these plans, the employers’ contributions are in the form of a company match to the employees’ contributions.
Unfortunately, not all employers offer the above plans. Several states have established retirement saving plans for smaller employers that can’t afford to establish their own 401(k) or 403(b) plan. Californiia has implemented a CalSaver plan for small employers that don’t have a retirement plan. The monies withheld from the employee’’ gross pay is deposited in a Roth IRA for the employee’s benefit.