Quick Answer
15+ states offer payroll-deducted IRA programs — including CalSavers, OregonSaves, and Illinois Secure Choice — for workers without access to a 401(k). ITIN holders can participate; these programs accept ITIN in place of an SSN. Workers are automatically enrolled when their employer participates and can opt out.
What Is a State Auto-IRA Program?
A state auto-IRA is a state-run retirement account that deducts contributions directly from your paycheck — enrolled by default at 3%, with fees of 0.5%–1% or less. ITIN holders pay about $8,889 per person per year in taxes (ITEP) yet often have no employer retirement plan; state auto-IRAs are one of the few automatic savings paths available. You own the account and take it when you change jobs.
It's not your employer's plan but the state's plan that your employer participates in. You enroll, designate a percentage, and it comes out automatically, just like taxes.
Key Features
- Automatic enrollment: You're enrolled by default at 3%, but can opt out or change the percentage anytime
- Payroll deduction: Money comes straight from your paycheck (pre-tax or post-tax, your choice)
- Low or no fees: Most states charge minimal fees (0.5–1% per year) or none at all
- You own the account: It's your IRA. When you leave the job or move states, you take it with you
- Roth or Traditional: Most programs let you choose traditional (pre-tax) or Roth (after-tax) contributions
Which States Have Programs? (2026)
In 2026, at least 15 states have fully active auto-IRA programs, including California, Illinois, New York, Oregon, and Colorado. Massachusetts and Washington offer alternatives, and newer programs are arriving fast: Minnesota opened January 1, 2026, Utah launched in March 2026, and Hawaii launches mid-2026.
15 States Fully Active or Open
California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia
Plus: Massachusetts (MEP) and Washington (Marketplace) offer alternative programs.
Recently Launched or Launching Soon
- Minnesota: Opened January 1, 2026
- Utah: Launched March 2026 (Utah Retirement Exchange)
- Mississippi: Enacted April 2026, launches by August 2028
- Hawaii: Launching mid-2026
If Your State Isn't Listed Yet
More states are enacting programs every year. Check your state's labor department website or search "[your state] auto-IRA program" to see if legislation is pending.
ITIN Holders: Can You Participate?
Yes, ITIN holders can participate in a state auto-IRA as long as they have W-2 income, valid authorization to work in the U.S., and work at a company in a participating state. No Social Security Number is required: your ITIN is sufficient identification, and contributions work exactly the same way as for SSN holders.
Short Answer: Yes, If You Have W-2 Income
State auto-IRA programs are available to ITIN holders as long as you:
- Have earned income from a job (W-2 wages)
- Are authorized to work in the U.S.
- Work at a company in a participating state
What "Authorized to Work" Means
You need to be legally eligible to work in the U.S. This includes:
- H-1B visa holders
- Green card holders
- DACA recipients (with work authorization)
- Any ITIN holder with valid work authorization
Important: If you're working without authorization, you cannot participate in state auto-IRA programs (or any employer retirement plan). However, if you have an ITIN and valid work authorization (through an employer sponsorship or government authorization), you're eligible.
No SSN Required
You do not need a Social Security Number. Your ITIN is sufficient identification for the state program. Contribute to your auto-IRA account using your ITIN — it works the same way as for SSN holders.
How Do I Enroll in My State's Auto-IRA?
If your employer participates, enrollment is simple: you get the materials, choose Roth or Traditional, set your contribution percentage (usually a 3% minimum to start), and enroll through the state portal, with contributions starting on your next paycheck. Employers with 5 or more employees in participating states are required to offer the program, so ask HR to register if yours hasn't.
If Your Employer Participates
- Your employer will give you enrollment materials (online portal or paper form)
- Decide: Traditional or Roth?
- Set your contribution percentage (usually 3% minimum to start)
- Enroll through the state's website or your employer's portal
- Contributions start on your next paycheck
If Your Employer Hasn't Set It Up
Most employers in participating states are required to offer the program if they have 5+ employees. If yours hasn't, ask your HR department to enroll.
How Does an Auto-IRA Compare to a 401(k)?
| Feature | Auto-IRA | 401(k) |
|---|---|---|
| Contribution limit (2026) | $7,500 (Roth/Traditional IRA limit) | $24,500 (higher cap) |
| Employer match | No | Often yes (free money) |
| Fees | Very low (0.5–1% or less) | Varies (often 0.5–1.5%) |
| Portable if you leave | Yes, immediately | Yes (rollover required) |
What Happens If You Move to Another State?
Your auto-IRA account goes with you when you move, because you own it. You can keep it open and stop contributing, transfer it to your new state's program, or roll it into an IRA at a brokerage. Colorado and New Mexico created the first interstate portability agreement between 2 states, allowing penalty-free transfers between them.
Interstate Portability
If you move from California to Nevada and both states have auto-IRA programs, your account is portable. You can:
- Keep your existing account open and stop contributing (if you leave your CA job)
- Roll it over to your new state's program (if you get a job in NV)
- Roll it into a traditional or Roth IRA at a brokerage like Fidelity
Multi-State Innovation: Colorado and New Mexico created the first multi-state IRA portability agreement, allowing seamless account transfers between the two states without penalties or disruptions.
Should You Use Auto-IRA or a Personal Roth IRA?
Auto-IRA Is Better If
- Your employer doesn't offer a 401(k)
- You want automatic, payroll-based savings (less discipline required)
- You want low fees
- You're not maxing out other retirement accounts
Personal Roth IRA Is Better If
- You want full control over investments (auto-IRAs typically offer limited fund choices)
- You want higher contribution limits ($7,500 is the same either way, so this isn't different)
- You value having accounts at a brokerage you know (Fidelity, Schwab)
The Real Answer
Do both. Open an auto-IRA at work (easy, automatic). Max out a personal Roth IRA at Fidelity ($7,500). You have separate contribution limits. Together they total $7,500 + whatever you contribute via auto-IRA (up to $7,500 as an IRA).
An auto-IRA contributes to a Roth IRA in your name, so the 2026 IRA limit of $7,500 applies across both accounts combined.
What's the Bottom Line on State Auto-IRAs for ITIN Holders?
If your job doesn't offer a 401(k) and you live in one of the 15+ participating states, an auto-IRA is an easy way to save for retirement. Enrollment is automatic, contributions come straight from your paycheck, and you take the account with you if you change jobs or move states. As an ITIN holder with work authorization, you're fully eligible.
Frequently Asked Questions
What is a state auto-IRA program?
A state-run retirement program (such as CalSavers, OregonSaves, or Illinois Secure Choice) that automatically enrolls workers whose employer offers no plan, deducting contributions from payroll into a Roth IRA in the worker’s name.
Can ITIN holders join a state auto-IRA?
Yes, if you have W-2 income. Enrollment runs through payroll, not an SSN check. Because the account is a Roth IRA, it follows Roth rules and stays yours if you change jobs.
What happens if I move to another state?
The account is a Roth IRA in your name and is portable. You keep it, can keep contributing on your own, or roll it into another IRA.
Auto-IRA or a personal Roth IRA — which is better?
If your employer auto-enrolls you, the auto-IRA is effortless. A personal Roth IRA at a brokerage gives you more investment choices and control. Many people start with the auto-IRA and open a personal Roth IRA for flexibility.