Get answers to frequently asked questions
MyCTSavings is a new retirement savings program created to help Connecticut’s 600,000 private-sector employees without access to employer-sponsored retirement plans. Here are answers to many of the common things we’ve been asked. If you have questions beyond these, we’re here to help. Just drop us a line.
- Who is responsible for choosing the investment options for participants?
The Connecticut Retirement Security Authority is responsible for making decisions about the investment options available to participants of the program.
- Does the program have an investment consultant?
Yes. The program has a private investment consultant that provides input, monitoring, and feedback about investments to the Connecticut Retirement Security Authority.
- What is a Target Retirement Date Portfolio?
A Target Retirement Date Portfolio is an age-based portfolio designed to help manage investment risk and is based on two factors: an investor’s current age and approximate estimated retirement date. This type of portfolio includes a mix of investments — stocks, bonds, and cash equivalents — that evolve over time to focus on growth for younger investors and to help preserve savings closer to retirement age. MyCTSavings offers a range of Target Retirement Date Portfolios.
- Do I need to report contributions on my employees’ W2s?
No. The MyCTSavings program is structured as a payroll deduction IRA and not as a traditional retirement plan that needs to be reported on your employees’ W2s. The IRA trustee for the MyCTSavings program will file “Form 5498, IRA Contributions Information” with the IRS (as needed for your employees) and will send employees a copy for their records, no later than May 31.
- Can the State use money from this program to pay for other programs?
No. Employees’ contributions go directly to the MyCTSavings accounts in their names. The State can’t use the money for anything else, and there is no connection to other retirement plans offered by the State.