Millions Gain Access to 401(k)s as More Small Businesses Launch Plans

State mandates and the hot job market prompted the big increase in new retirement plans

In California there was a 16% increase in new 401(k)-type plans in 2019 through 2021, compared with 2013 to 2018. Photo: Yalonda M James/San Francisco Chronicle/Getty Images

A relatively strong job market, new tax breaks and state mandates are leading more small businesses to offer employees a 401(k) plan.

The state mandate boost can be seen in California, Oregon and Illinois. Those three states were among the first to require private-sector employers that don’t offer retirement plans to give employees access to state-sponsored programs. 

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