Get answers to frequently asked questions
Colorado’s new state-facilitated retirement savings program was created to help the nearly 940,000 workers in Colorado without access to employer-sponsored retirement plans. We understand you’ll have questions. Here are the answers to some frequently asked questions. If you have additional questions, we’re here to help.
- Account Access
- Employer Registration
- Fees and Costs
- Saver's Credit
- Tax Forms
- Can I make withdrawals if I work during my retirement?
Yes, you can make withdrawals from your account at any time. Consider whether a withdrawal from your Colorado SecureSavings account is really your best option. You may want to consult with a tax expert.
- Are there additional withdrawal restrictions beyond normal Roth IRA restrictions?
The only withdrawal restrictions for Colorado SecureSavings accounts are those set by the federal government for any Roth or Traditional IRA. Please consult a tax expert or financial advisor about your circumstances.
- Can I transfer my Colorado SecureSavings money into another retirement savings account?
Money in your Roth IRA can be transferred or rolled into another Roth IRA only. You should consult with a tax expert or financial advisor first.
- Can I take money from my Colorado SecureSavings account?
You can take money out of your account, which is a Roth IRA, at any time. There is no fee or penalty for withdrawing the contributions you make. However, investment earnings are subject to taxation and an additional penalty if taken out before you reach age 59½. There are penalties if you withdraw funds before you’ve had your first Roth IRA for five years. There are exceptions though. For example, if you’re a first-time homebuyer and your Roth IRA withdrawal may be tax-free if you have met the five-year requirement. Taking early withdrawals from Traditional IRAs may also be subject to income tax and penalty. That said, if you’re unsure about your status, it’s best to consult with a tax expert or financial advisor.
- Is there an administrative fee or penalty for withdrawing my money?
There is no administrative fee or penalty for withdrawing the money you put into your Roth IRA. That’s your money and you already paid taxes on it. The interest your money has earned is taxable and possibly subject to a 10% penalty if withdrawn before you are age 59½. Please consult with a tax expert or financial advisor to determine what steps and restrictions may apply to you.
- Is there a waiting period before I can withdraw my money?
You can take your money out of your account, which is a Roth IRA, at any time. But note that what funds you’re withdrawing, when you’re withdrawing them, and why will affect whether you’ll have to face any taxes or penalties. Although you can withdraw your contributions at any time without taxes or penalties, the earnings on your contributions are treated differently. If you take money out and you don't meet the IRS criteria for a “qualified” distribution, you will need to include the earnings in your income for the tax year. If you withdraw money from your account before you turn age 59½ by requesting a “nonqualified” distribution, you’ll pay a 10% penalty on the earnings portion of your distribution. You may wish to consult a tax advisor to be sure you understand the impact of any withdrawals you make.
- How long will it take to receive my money?
Please allow up to 3-5 business days. Distributions will generally be processed within 3 business days of your request. During periods of market volatility and at year-end, distribution requests may take up to 5 business days. For security purposes, there will be a hold of 15 calendar days when there is a change to your address, and a hold of 15 calendar days following a change to your banking information. Distributions of contributions made by check or ACH will not be available for withdrawal for 5 business days.
- What happens to my money if I die with no named beneficiaries?
If you die and have no named beneficiaries, the account will be payable to your estate under the terms of the IRA. Accounts that become unclaimed property will be subject to applicable law.
- How do I know if my employer facilitates the State's program?
If you haven’t received your automatic notification and enrollment, you should ask your employer, or call 1-844-711-5001, Monday – Friday, 8 a.m. – 5 p.m. MT.
- Is my employer required to offer Colorado SecureSavings?
An employer is required to facilitate the Colorado SecureSavings retirement savings program if:
The business is registered to conduct business in the state of Colorado
They have at least five W-2 employees who have worked for them for at least 180 days
They have been in business for two or more years; and
They don’t currently offer a qualified retirement savings program to employees