Get answers to frequently asked questions
Connecticut’s new state-sponsored retirement savings program is open right now. It was created to help the 600,000 private-sector employees without access to employer-sponsored retirement plans. We understand you’ll have questions. Here are the answers to some frequently asked questions. If you have additional questions, we’re here to help.
- Account Access
- Contributions
- Eligibility
- Employer Registration
- Fees and Costs
- General
- Investments
- Linking Bank Accounts
- Saver's Credit
- Security
- Self-enrollment
- Tax Forms
- Withdrawals
- Does this program replace 401(k)s?
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No, this program is not meant to replace or compete with 401(k)s or other qualified retirement plans.
- Will services be available in other languages?
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Yes, the call center will offer assistance in English and Spanish and will have access to translation services for other languages. Certain materials may also be available in Spanish.
- Where should I turn if I have an issue or concern with a MyCTSavings account?
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We're always available to answer any questions or concerns you may have. Whether you want to call, email, or send us something by mail, you can get our contact information here.
- Are there legal protections from creditors for my funds?
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Your MyCTSavings account is structured as an IRA and may be protected from creditors. Circumstances vary, and you should consult with an appropriate expert if you need specific guidance.
- What steps are taken to keep my account safe from cyber threats?
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MyCTSavings has processes in place to protect the security of accounts and protect your personal information. Our program administrator and their affiliates have dedicated security and compliance teams to implement encryption, strict internal protocols and training, and annual independent security audits. And they implement industry-standard account authentication and password protection procedures.
- Does MyCTSavings protect the security of funds deposited into my account?
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Yes, MyCTSavings has processes in place to protect the security of contributions to your account. Our program administrator and their affiliates have dedicated security and compliance teams to implement encryption, strict internal protocols and training, and annual independent security audits. And they implement industry-standard account authentication and password protection procedures.
- Is my personal information reported to government agencies to determine immigration status?
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No, reports are not made for the purpose of determining immigration status.
- How does the MyCTSavings program work?
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MyCTSavings offers a simple way to save for retirement. If your employer is registered for the program, you can save through automatic payroll contributions from your paycheck. The default savings rate for a MyCTSavings account is 3% of your gross pay (the amount you earn before taxes or any other deductions). You can change your savings rate at any time. This contribution amount is then deducted from your paycheck after taxes have been taken out and contributed into your Roth Individual Retirement Account (IRA). The program is facilitated by your employer but is totally under your control.
- How do I join MyCTSavings?
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If your employer facilitates MyCTSavings, you’ll be notified of your opportunity to save with the program. You can do nothing and start saving automatically or set up your account and customize your savings elections. If you start saving automatically, your funds will be invested in the Cash Preservation Fund for the first sixty days. After that time, your funds will be exchanged automatically to a default Target Retirement Date Portfolio based on your date of birth. Participation in MyCTSavings is completely voluntary, you can change your savings rate, investment election, and opt out or back in at any time.
If your employer does not meet the registration requirements, you can also open and contribute to your own retirement account with MyCTSavings.
- What is a Roth IRA?
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A Roth IRA is a specific type of retirement account that helps you reduce your taxes once you retire. While you’re working, you pay your usual income tax on the money you earn and deposit it into your Roth IRA. Your Roth IRA earns money (interest), and that money is constantly added to your contributions. When you retire and start taking money out of your Roth IRA (like you’re paying yourself), there are no taxes. In other words, all the interest that your account earns over the years is tax-free. And that’s a big deal. For even more details on Roth IRAs you can visit the Internal Revenue Service (IRS) website.