AZ HB4126

Establishes the Arizona Retirement Savings Board with 9 members (state treasurer plus 8 gubernatorial appointees) to develop and maintain a retirement savings program for employees whose employers don't offer qualified retirement plans.

Requires covered employers to automatically enroll employees in payroll deduction Roth IRA accounts with a default 5% contribution rate, though employees may opt out or adjust contribution levels at any time.

Phases in employer participation requirements: employers with 25+ employees must participate by April 1, 2028; 15-24 employees by October 1, 2028; and 1-14 employees by April 1, 2029.

Imposes penalties on covered employers who fail to enroll employees, ranging from $10 per employee initially to $100 per employee after October 1, 2031, with waivers available for reasonable cause.

Protects employers and the state from liability for employee investment decisions, program performance, and adverse tax consequences, and specifies that employers are not considered fiduciaries of the program.