What Is a State Auto-IRA Program?
Simple definition: A state-run IRA account that deducts contributions directly from your paycheck.
It's not your employer's plan — it's the state's plan that your employer participates in. You enroll, designate a contribution percentage (usually 3% to start), and it comes out of your paycheck automatically, just like taxes.
Key Features
- Automatic enrollment: You're enrolled by default at 3%, but can opt out or change the percentage anytime
- Payroll deduction: Money comes straight from your paycheck (pre-tax or post-tax, your choice)
- Low or no fees: Most states charge minimal fees (0.5–1% per year) or none at all
- You own the account: It's your IRA. When you leave the job or move states, you take it with you
- Roth or Traditional: Most programs let you choose traditional (pre-tax) or Roth (after-tax) contributions
Which States Have Programs? (2026)
15 States Fully Active or Open
California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia
Plus: Massachusetts (MEP) and Washington (Marketplace) offer alternative programs.
Recently Launched or Launching Soon
- Minnesota: Opened January 1, 2026
- Utah: Launched March 2026 (Utah Retirement Exchange)
- Mississippi: Enacted April 2026, launches by August 2028
- Hawaii: Launching mid-2026
If Your State Isn't Listed Yet
More states are enacting programs every year. Check your state's labor department website or search "[your state] auto-IRA program" to see if legislation is pending.
ITIN Holders: Can You Participate?
Short Answer: Yes, If You Have W-2 Income
State auto-IRA programs are available to ITIN holders as long as you:
- Have earned income from a job (W-2 wages)
- Are authorized to work in the U.S.
- Work at a company in a participating state
What "Authorized to Work" Means
You need to be legally eligible to work in the U.S. This includes:
- H-1B visa holders
- Green card holders
- DACA recipients (with work authorization)
- Any ITIN holder with valid work authorization
Important: If you're working without authorization, you cannot participate in state auto-IRA programs (or any employer retirement plan). However, if you have an ITIN and valid work authorization (through an employer sponsorship or government authorization), you're eligible.
No SSN Required
You do not need a Social Security Number. Your ITIN is sufficient identification for the state program. Contribute to your auto-IRA account using your ITIN — it works the same way as for SSN holders.
How to Enroll
If Your Employer Participates
- Your employer will give you enrollment materials (online portal or paper form)
- Decide: Traditional or Roth?
- Set your contribution percentage (usually 3% minimum to start)
- Enroll through the state's website or your employer's portal
- Contributions start on your next paycheck
If Your Employer Hasn't Set It Up
Most employers in participating states are required to offer the program if they have 5+ employees. If yours hasn't, ask your HR department to enroll.
Auto-IRA vs 401(k): Key Differences
| Feature | Auto-IRA | 401(k) |
|---|---|---|
| Contribution limit (2026) | $7,500 (Roth/Traditional IRA limit) | $24,500 (higher cap) |
| Employer match | No | Often yes (free money) |
| Fees | Very low (0.5–1% or less) | Varies (often 0.5–1.5%) |
| Portable if you leave | Yes, immediately | Yes (rollover required) |
What Happens If You Move to Another State?
Short answer: Your auto-IRA account goes with you.
Interstate Portability
If you move from California to Nevada and both states have auto-IRA programs, your account is portable. You can:
- Keep your existing account open and stop contributing (if you leave your CA job)
- Roll it over to your new state's program (if you get a job in NV)
- Roll it into a traditional or Roth IRA at a brokerage like Fidelity
Multi-State Innovation: Colorado and New Mexico created the first multi-state IRA portability agreement, allowing seamless account transfers between the two states without penalties or disruptions.
Should You Use Auto-IRA or a Personal Roth IRA?
Auto-IRA Is Better If
- Your employer doesn't offer a 401(k)
- You want automatic, payroll-based savings (less discipline required)
- You want low fees
- You're not maxing out other retirement accounts
Personal Roth IRA Is Better If
- You want full control over investments (auto-IRAs typically offer limited fund choices)
- You want higher contribution limits ($7,500 is the same either way, so this isn't different)
- You value having accounts at a brokerage you know (Fidelity, Schwab)
The Real Answer
Do both. Open an auto-IRA at work (easy, automatic). Max out a personal Roth IRA at Fidelity ($7,500). You have separate contribution limits. Together they total $7,500 + whatever you contribute via auto-IRA (up to $7,500 as an IRA).
Bottom Line
If your job doesn't offer a 401(k) and you live in one of the 15+ participating states, an auto-IRA is an easy way to save for retirement. Enrollment is automatic, contributions come straight from your paycheck, and you take the account with you if you change jobs or move states. As an ITIN holder with work authorization, you're fully eligible.
Frequently Asked Questions
What is a state auto-IRA program?
A state-run retirement program (such as CalSavers, OregonSaves, or Illinois Secure Choice) that automatically enrolls workers whose employer offers no plan, deducting contributions from payroll into a Roth IRA in the worker’s name.
Can ITIN holders join a state auto-IRA?
Yes, if you have W-2 income. Enrollment runs through payroll, not an SSN check. Because the account is a Roth IRA, it follows Roth rules and stays yours if you change jobs.
What happens if I move to another state?
The account is a Roth IRA in your name and is portable. You keep it, can keep contributing on your own, or roll it into another IRA.
Auto-IRA or a personal Roth IRA — which is better?
If your employer auto-enrolls you, the auto-IRA is effortless. A personal Roth IRA at a brokerage gives you more investment choices and control. Many people start with the auto-IRA and open a personal Roth IRA for flexibility.