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.

Where do my automatic contributions go?

They’re deposited into a Roth IRA that is yours to keep for life and that you control completely.

What is the standard contribution rate?

The standard contribution is 3% of your gross income (which is the total amount you make in your paycheck before any taxes or deductions are taken out). You can choose to save more, or less, in 1% increments.

Can I contribute a set dollar amount per paycheck instead of a percentage?

Sorry, at this time you can only contribute a percentage through payroll deductions. If you’d rather contribute a dollar amount on a recurring monthly schedule, you will have to add a bank account to your MyCTSavings account and contribute that way.

Can I have a MyCTSavings account plus another retirement savings plan?

You can contribute to more than one savings plan or account at a time. But remember, the IRS contribution limits are cumulative for all Traditional and Roth IRAs owned by an individual.

Can employers match employee contributions?

MyCTSavings does not allow employer contributions. An employer's role is limited to facilitating the program for employees.

Can I roll over another plan’s money into my MyCTSavings account?

You can, but please consult with a tax expert or financial advisor before making any changes, to better understand any steps to take and restrictions that may apply. Rollovers from pre-tax retirement plans like 401(k)s and 403(b)s will be taxed to convert them from pre-tax to post-tax status for inclusion in a Roth IRA.

How are my contributions made?

Every pay period, your employer will deduct your contribution from your paycheck, based on your set savings rate, and will send your contribution to your personal Roth IRA account. You can also make your own contributions through your bank account or by check, using a paper mail-in form.

How will I know when my MyCTSavings account is close to the annual IRA contribution limit?

MyCTSavings will monitor your account and notify your employer to stop contributions when you are nearing the limit. However, MyCTSavings will not have information on your contributions to another Roth IRA, or any other IRAs you may have. You should ensure that the total of all your retirement accounts is within the IRS’s annual limits. Please consult a tax expert or financial advisor to discuss your specific circumstances.

If I have another IRA, in addition to the State's program, does the contribution limit apply to each separately or to the combined amount?

The IRS's annual IRA contribution limits apply to the combined amount contributed to all of your IRAs, both Traditional and Roth.

Is my contribution pre-tax or post-tax?

Contributions to MyCTSavings are made on a post-tax basis. The percentage contributed is based on your gross income earned (the amount you make before any taxes or deductions have been taken out) with your facilitating employer. If you also contribute to a Traditional IRA, those contributions may be deductible on your tax return. It may be best to consult with a tax professional to determine what you can or cannot deduct.