OregonSaves will be rolled out in phases over the next few years to all employers who have employees in Oregon and don't offer an employer-sponsored retirement plan. Once it is your employer's turn to join, you will be automatically enrolled in your own OregonSaves Roth IRA. At that time, OregonSaves will contact you by email or regular mail to let you know it's time to access your account. If you do not want to participate, you can opt out at that time. If you choose to do nothing, you will be automatically enrolled and contributions will automatically be removed from your paycheck about 30 days after you receive the notification from OregonSaves. Participation in OregonSaves is completely voluntary.
If you are self-employed, you are not eligible for an OregonSaves account at this time. In the future, self-employed individuals and others may have the ability to opt in.
The only administrative charge for OregonSaves is in the form of an annual asset-based fee of approximately 1%, which means you will pay approximately $1 per year for every $100 in your Roth IRA. These fees accrue daily and are factored into each Investment Option's Unit Value. You will not get a bill. This cost is automatically taken out of your OregonSaves balance on a regular basis to help pay for the administration of the program.
Your employer will automatically deposit 5% of your gross income earned pay from your paycheck in your personal OregonSaves Roth IRA every pay period. You can choose to save more or less, starting as low as 1%. You can change the contribution amount at any time online, by phone, or through your employer. If you do not want to participate in OregonSaves, you can always opt out. You may opt back into making contributions to your OregonSaves account at any time in the future.
These contributions will be made into your Roth Individual Retirement Arrangement (IRA) in the OregonSaves program. This means that your savings are made after tax. Your contributions will be tax free when removed. Any earnings on those contributions could be tax free if you meet certain IRS criteria.
While 5% is a good amount to start saving, saving more than that may help when it comes to retire. Every year your savings rate will automatically go up by 1% until it reaches 10% of your gross pay. If increasing your savings rate annually doesn't work for you, you can always change the rate, or opt out of the automatic increase all together. You can opt back into the automatic increase at any time in the future.