You may have heard a buzz about Nevada's new NEST program. There are still some uncertainties around the program details, but I hope this sheds a bit more light on what to expect…
The Nevada Employee Savings Trust (NEST), established through Senate Bill 305, is a new retirement savings initiative launching by July 1, 2025. Its primary goal is to expand access to retirement plans for private-sector workers. Under NEST, employers in Nevada with six or more employees, who have been in business for at least three years and do not currently offer a retirement plan, will be required to participate. These employers must completely facilitate the program by registering through the NEST portal and making it available to eligible employees, but they are not responsible for managing the retirement accounts or contributing to them financially. Instead, the NEST Board oversees the plan’s investments, although employees can select from various investment options or stick with a default. Eligible employees—those 18 or older, employed for more than 120 days, and receiving wages—will be automatically enrolled, with contributions (defaulting to 5%) funneled from their paychecks into a personal IRA. Workers can modify their contribution rate, opt out entirely within a minimum 90-day window, or withdraw funds in accordance with traditional retirement rules. While most private employees are included, exclusions apply to government workers, those in multiemployer pension plans, and workers under the federal Railway Labor Act. Independent contractor eligibility is still under review. While participation in NEST is initially cost-free for employers, who use a payroll provider (though it’s not required) or process contributions directly through the portal. Importantly, IRAs under NEST are portable, staying with the employee even if they change jobs. The program is expected to roll out in phases, and while employer compliance is mandated, the bill currently isn't outlining additional penalties for non-participation at this time.
For businesses exploring additional retirement plan options, establishing your companies own dedicated 401(k) plan can offer distinct advantages—including potential tax incentives, enhanced control over plan features, and the flexibility to offer matching contributions that support long-term employee retention. If you're considering setting up a plan or would like support managing your existing 401(k), we're here to help—feel free to reach out to start the conversation.