Nevada NEST Program
The Nevada Employee Savings Trust, established by Senate Bill 305 of the 2023 Legislative Session, is designed to help Nevadans save for retirement, especially those who do not have access to a workplace retirement plan. By automatically enrolling employees and deducting contributions from their paychecks, the program makes it easier to start saving.
How the Program Works for Employers
Employers that currently do not offer a tax-favored workplace retirement plan, such as a 401(k) plan, are required to participate in the NEST Program (or a similar program offered through a chamber of commerce or trade association) if they employ 6 or more employees and have been in operation for at least 36 months (“covered employer”). The NEST Program will reach out to eligible businesses to facilitate registration and provide resources to help inform employees about the program.
How the Program Works for Employees
Based on information provided from employers, eligible employees will be automatically enrolled in the program, with contributions moving directly from their paycheck into an Individual Retirement Account (IRA). Employees will have the option to adjust their contribution rate or opt out. They will also get details on how to access and manage their accounts so they can choose one of several investment options or withdraw contributions at any time to meet a financial or other emergency.
When will the NEST Program be available?
Business registration is expected to take place in the month of June 2025. The NEST Program is expected to launch by July 1, 2025. Employees will be able to start contributing to their IRAs at that time.
Who is Required to Participate?
Covered Employees: Employees who meet the eligibility criteria, such as being employed for at least 120 days and being 18 years or older are automatically enrolled in the program but can opt-out of the program at any time without any penalty.
Covered Employers: Employers with six employees or more who have been in business at least 3 years (36 months) and do not currently offer another retirement plan must offer the program to eligible employees once it is available.