HB 2839 Summary

• Establishes the Arizona Retirement Savings Board and Arizona Retirement Savings Program to provide individual retirement accounts (IRAs) for Arizona workers without access to employer-sponsored retirement plans.

• Requires covered employers to automatically enroll covered employees in a payroll deduction Roth IRA program with a default 5% contribution rate, with employees able to opt out or adjust contributions.

• Implements phased enrollment beginning April 1, 2026 for employers with 25+ employees, October 1, 2026 for employers with 15-24 employees, and April 1, 2027 for employers with 1-14 employees.

• Imposes escalating penalties on covered employers failing to enroll employees without reasonable cause, ranging from $10 per employee (before April 1, 2027) to $100 per employee (October 1, 2029 and after).

• Appropriates $1,600,000 from the state general fund in fiscal year 2024-2025 for the board's operations and administration.