Get answers to frequently asked questions

There is an annual asset-based fee paid as a percentage of the money in your account. The fee for each investment option you choose is approximately 0.26% of its value per year ($0.26 for every $100 saved), which includes the investment management fee for underlying funds. There is also a $26 annual account fee (that is charged quarterly at $6.50 each quarter). These fees pay for the administration of the program, and the operating expenses charged by the underlying investment funds in which the program’s portfolios are invested. The asset-based fee is computed daily, and your investment returns are credited to your account minus the fee.

It covers all administrative costs associated with the program, such as the cost of maintaining your account, oversight of the program’s investments, providing customer service, keeping records, online and phone services, and the operating expenses of the underlying investment funds in which the investment options are invested.

Yes, similar programs are up and running in other states, a few of which include Colorado, Virginia, Maryland, and Oregon. Since these programs first launched in 2017, they have helped almost 700,000 hard working individuals save nearly $1 billion — and this number continues to grow each day.^* States are taking notice and many are about to launch state-sponsored retirement savings programs or are in the process of passing legislation to support them.

*Accounts and savings as of June 2023.

Yes, all qualified employers with five or more employees in Connecticut — at least five of whom have been paid more than $5,000 in the calendar year must facilitate the State’s program, unless the business offers an employer-sponsored qualified retirement plan.* 

*A qualified employer is any employer, whether for profit or not for profit, that had five or more employees in Connecticut on October 1, 2021, at least five of whom were paid $5000 or more in taxable wages in 2021. Qualified employers do not include those who were not in existence at all times during the current and preceding calendar years, and they do not include any employer employing only individuals whose services are excluded under the unemployment compensation law.

The program is designed to pull together some of the best features of popular employer plans and IRAs. We’re helping to lower barriers like complex administration and high costs that may keep employers from offering a successful retirement savings plan to their employees. With MyCTSavings, employers just have to facilitate the program – there is no cost to them.

A qualified, employer-sponsored retirement plan includes a plan qualified under Internal Revenue Code sections 401(a) (including a 401(k) plan), qualified annuity plan under section 403(a), tax-sheltered annuity plan under section 403(b), Simplified Employee Pension plan under section 408(k), a SIMPLE IRA plan under section 408(p), or governmental deferred compensation plan under section 457(b). It does not include payroll deduction IRAs.

The MyCTSavings program rules are detailed here.

Yes, the minimum age to enroll in MyCTSavings is 19.

Yes, however, you can be enrolled and have an account created only if you work for more than 120 days and if enough verifiable information is available to create an account in your name. If the program is unable to verify your information, an account will not be established for you.

The program has a private investment consultant that provides input, monitoring, and feedback about investments.