Nevada NEST Program LaunchesRetirement Savings Deadline Sept 1

If you run a business in Nevada or earn a paycheck there, 2025 isn’t just another calendar yearit’s the year the Nevada Employee Savings Trust (NEST) program officially joins your to-do list. This new, state-facilitated retirement savings program is designed to help hundreds of thousands of private-sector workers who don’t have access to a 401(k) finally start building a nest egg (pun absolutely intended).

The headline you need to remember: All covered employers must either register with NEST or certify an exemption by September 1, 2025. Miss the deadline, and you could be facing penalties once the state finishes writing that part of the script.

In this guide, we’ll break down what the Nevada NEST program is, who has to participate, how it works for both employers and employees, and what you should do now to stay compliant and make the most of it. We’ll also walk through some real-world style experiences to help you picture how NEST works on the ground.

What Is the Nevada NEST Program?

NESTshort for Nevada Employee Savings Trustis a state-administered retirement savings program that uses Roth Individual Retirement Accounts (Roth IRAs) to help workers save for retirement through automatic payroll deductions.

The program was authorized by Nevada law in 2023 and became operational in mid-2025. It’s overseen by a Board of Trustees and administered through the Nevada Treasurer’s office. The goal is simple: provide an easy, low-cost way for workers to save for retirement when their employers don’t offer a traditional retirement plan.

Instead of employers sponsoring and managing a 401(k), NEST lets them plug into a state-run Roth IRA platform. Employers facilitate the payroll deductions; the state handles the investment infrastructure, recordkeeping, and plan administration.

Key features of Nevada NEST

• State-facilitated Roth IRA: Each saver owns an individual Roth IRA, not a pooled plan.
• Automatic payroll deductions: Contributions come straight out of paychecks.
• Default contribution rate: Typically starts at 5% of pay, with automatic annual increases up to 10%, unless the worker changes it.
• Portable accounts: The account belongs to the worker, not the employerso it follows them if they change jobs.
• No employer contributions required: Employers don’t have to match or contribute any money.

NEST joins a growing club of state retirement programs nationwide, but its rules and deadlines are specific to Nevada. That September 1 deadline is one you do not want to ignore.

Who Has to Participate in the Nevada NEST Program?

NEST is mandatory for certain employers, but not for everyone. The state drew a line based on employer size, business history, and whether a retirement plan already exists.

Covered employers

In general, an employer is required to facilitate NEST if it:

• Is registered to do business in Nevada, and
• Has been in business for at least three years (36 months), and
• Has six or more W-2 employees in Nevada (often described as “more than five employees”), and
• Does not currently offer a qualified retirement plan (such as a 401(k), 403(b), SEP, or SIMPLE IRA).

If all of those boxes are checked, you’re considered a covered employer and must either register with NEST or start your own qualified retirement plan to claim an exemption.

Exempt employers

You’re generally exempt from facilitating NEST if:

• You already offer a qualified retirement plan to employees (401(k), 403(b), SEP, SIMPLE IRA, etc.).
• You have fewer than six W-2 employees in Nevada.
• Your business is less than three years old.

Here’s the catch: even if you’re exempt, the state still expects you to certify your exemption through the NEST website. So “we already have a 401(k)” doesn’t mean “we can ignore this.” It means, “we need to log in and check the exemption box.”

Which Employees Are Eligible to Save Through NEST?

While employers provide the gateway, NEST is ultimately about individual workers building retirement savings. Employees are eligible if they:

• Are at least 18 years old, and
• Have been employed by the company for at least 120 days, and
• Receive wages or compensation in Nevada.

Once an employer is on board, eligible employees are typically automatically enrolled at the default contribution rate unless they opt out or choose a different percentage.

Participation is voluntary for employees. They can:

• Stay at the default 5% contribution rate,
• Increase or decrease their contribution amount (within IRA limits), or
• Opt out entirely, with the ability to re-enroll later.

This auto-enrollment design nudges people toward saving without forcing them. Historically, automatic enrollment dramatically increases participation in retirement plans, which is exactly what Nevada is aiming for.

How the Nevada NEST Program Works in Practice

For employers

1. Register or certify exemption: By September 1, 2025, employers log into the NEST website using their access code and EIN to either register or certify that they’re exempt.
2. Provide employee information: Once registered, employers pass basic employee data (name, address, contact info, etc.) to NEST so accounts can be set up.
3. Run payroll with deductions: After a 30-day employee opt-out window, employers begin withholding NEST contributions from paychecks and remitting them through the NEST platform.
4. Maintain ongoing compliance: Employers add newly eligible hires, stop deductions when employees opt out, and continue submitting contributions on the required schedule.

No investment picking, no plan document drafting, and no employer contributionsjust payroll facilitation and communication. That’s the trade-off for a mandatory program designed to be relatively light-touch for businesses.

For employees

1. Account created: NEST creates a Roth IRA in the employee’s name once their information is received from the employer.
2. Automatic contributions: Paycheck deductions begin at the default rate after the opt-out period ends, unless the employee changes the amount.
3. Investment options: Employees can typically choose from a menu of investment options or remain in a default option (often a target date or balanced fund).
4. Full portability: If they change jobs, they can keep the same NEST account and continue contributing through a new employer (if that employer participates) or directly.

Because NEST uses a Roth IRA structure, contributions are made with after-tax dollars, and qualified withdrawals in retirement are generally tax-free.

Key Dates: Why September 1 is Such a Big Deal

The September 1, 2025 deadline is the main “circle it in red” date for Nevada employers.

By that date, covered employers must have:

• Registered with NEST to facilitate the program, or
• Certified an exemption because they already provide a qualified retirement plan or don’t meet the size/age thresholds.

Several law firms and benefits advisors have flagged that Nevada has not yet finalized specific penalty amounts for missed deadlines. But that doesn’t mean there are no consequencesjust that the details are still in motion. Historically, other states with similar programs have used per-employee penalties that can add up quickly if compliance is ignored for too long.

In short: You don’t want to be the test case. Treat September 1 as a hard deadline and stay ahead of any enforcement guidance.

Benefits of NEST for Employers

At first glance, NEST might feel like “one more compliance thing.” But there are some genuine upsides for Nevada businesses, especially small and midsize employers who haven’t been ready to launch a full retirement plan.

1. No employer contributions required

Unlike a traditional 401(k), NEST does not require employers to make contributions. You’re providing access to a benefit, not funding it.

2. Low administrative burden

The state handles the plan-level administration, recordkeeping, investment menu, and disclosures. Employers mostly handle payroll integration and employee communication, rather than becoming full-time plan sponsors.

3. Competitive edge in hiring and retention

Offering any path to retirement savings can make your business more attractive to employeesespecially in industries where benefits are thin. NEST lets you offer that without the cost and complexity of launching a standalone plan.

4. A stepping stone to a future 401(k)

Some employers may start with NEST now and later decide to implement their own 401(k) plan once they grow. At that point, they can terminate NEST participation and certify an exemption. Think of NEST as a “starter option” that gets employees saving today.

Pros and Cons of NEST for Employees

Benefits for workers

• Automatic savings: Money is saved before it ever hits a checking account, which is one of the most effective ways to build wealth.
• Tax advantages: With Roth IRAs, contributions are made with after-tax dollars, but qualified withdrawals in retirement are usually tax-free.
• Portable accounts: The account stays in the employee’s name forever. Changing jobs doesn’t mean losing their retirement savings.
• Flexible contribution rates: Workers can raise, lower, or pause contributions, within IRS limits.

Things employees should watch

• IRA contribution limits: NEST accounts are subject to federal IRA limits, so contributions must be coordinated with any other IRAs the worker has.
• Investment risk: As with any market-based investment, balances can go up or down. There’s no guarantee from the state.
• Roth eligibility: Higher-income workers need to pay attention to Roth IRA income limits when filing taxes.

For most moderate-income workers who don’t have access to a workplace plan, NEST is a meaningful improvement over having no structured retirement savings at all.

NEST vs. Starting Your Own 401(k): Which Makes Sense?

Some Nevada employers may see NEST as a minimum compliance solution. Others might view it as a catalyst to consider sponsoring their own plan instead.

Reasons to rely on NEST

• You want a low-cost, low-complexity way to comply with the new law.
• Your business is small or mid-sized and not ready for the administration and fiduciary responsibilities of a 401(k).
• You’re primarily focused on giving workers access to tax-advantaged savings, not designing a custom plan.

Reasons to consider your own retirement plan

• You want to offer employer contributions or matching as part of your compensation strategy.
• You want more control over plan design, vesting schedules, or contribution limits.
• You are competing for talent against employers with strong benefits packages and want to stand out.

Either path can satisfy the lawas long as you’re registered with NEST or officially exempt by the deadline. The key is to pick a strategy intentionally, not by procrastination.

Action Plan: What Nevada Employers Should Do Before Sept 1

1. Confirm whether you’re a covered employer

Check your headcount, business age, and existing retirement benefits. If you have six or more Nevada W-2 employees, have been in business at least three years, and don’t offer a qualified plan, you’re almost certainly covered.

2. Watch for your NEST access code

The state has been sending access codes and instructions via mail or email. If you haven’t seen one, visit the official NEST site to request your code or verify your contact information.

3. Register or certify exemption online

Use your access code and EIN to log into the employer portal. From there, either register to facilitate NEST or submit documentation that you’re exempt (for example, because you already sponsor a 401(k)).

4. Coordinate with your payroll provider

Talk to your payroll vendor or in-house payroll team about integrating NEST deductions. Many vendors are already building support for state auto-IRA programs, so there may be templates or integrations ready to go.

5. Prepare employee communications

NEST provides standard materials you can share, but you should also be ready to answer basic questions: What is NEST? How much will be deducted? How can employees opt out or change their contribution rate? Clear communication upfront reduces confusion and panicked emails later.

6. Build an ongoing compliance checklist

Once you’re up and running, you’ll need internal procedures for adding new hires after 120 days, handling opt-outs, and ensuring contributions are timely and accurate. A simple checklist or internal SOP can go a long way.

Real-World Experiences With Nevada NEST: What It Looks Like on the Ground

The rules and deadlines are importantbut what does NEST actually feel like for real businesses and workers? Let’s walk through some composite experiences based on how similar state programs have rolled out and how Nevada’s rules are structured.

A 12-employee restaurant finally offers retirement savings

Imagine a family-owned restaurant in Reno with 12 W-2 employees. The owners have always wanted to offer a retirement plan but felt a full 401(k) was out of their budget and too complicated to manage. When they receive a NEST access code in mid-2025, their first reaction is, “Great, another government mandate.”

But once they log into the NEST site and see what’s actually requiredregister the business, upload employee info, coordinate payroll deductionsthey realize it’s more manageable than expected. Their payroll provider already supports NEST, so the main work is communication: explaining to staff what NEST is, what 5% of their paycheck looks like, and how to opt out if they’re not ready.

By September 1, they’ve registered and uploaded their employees. A few staff members opt out at first, but most stay in once they see the modest impact on their paychecks. A year later, the owners are surprised at how many employees proudly mention “finally having a retirement account.” What started as a compliance requirement turns into a genuine morale boost.

A growing tech firm chooses a 401(k) instead

Now picture a 40-person software company in Las Vegas. They’ve been promising employees a 401(k) “soon” for years but never got around to it. The NEST deadline forces the issue: either register for the state program or finally implement the private plan they’ve talked about.

After talking to their benefits advisor, they decide to launch a traditional 401(k) with a modest employer match. They register for NEST only to certify an exemption, upload plan documentation, and then move on. For them, NEST is the nudge that pushed leadership to align their benefits with their recruiting goals.

Several employees later say they’re glad the state mandate existed; without it, the 401(k) might have been “next year’s project” forever.

A self-employed contractor uses NEST as a simple Roth IRA solution

NEST isn’t just for W-2 employees working for covered employers. A self-employed electrician in Henderson hears about NEST from a friend and learns that individuals can open their own NEST Roth IRA even if their clients aren’t “employers” in the traditional sense.

He sets up an account directly through the NEST portal and begins making monthly contributions via ACH. For him, NEST is simply an easy, structured way to save for retirement without having to research providers or compare investment menus. He likes that if he later hires employees, the same platform can help them save too.

A cautious employer worried about penalties

A multi-location retail business with around 25 employees hesitates. They’ve heard mentions of potential penalties for noncompliance but haven’t seen specific numbers yet. The uncertainty makes them nervousbut not nervous enough to ignore the deadline.

They decide to assume penalties could be similar to other statesper employee, per yearand plan accordingly. Their legal counsel’s advice is simple: treat September 1, 2025, as a hard cutoff, keep documentation of their registration, and maintain clear records of contributions and communications. Even without finalized penalty guidelines, they sleep better knowing they’ve done what the law currently requires.

In all of these scenarios, the theme is the same: NEST starts as a compliance checkbox and ends up becoming part of the financial wellness conversation for Nevada’s workforce.

Bottom Line: Don’t Sleep on Nevada’s NEST Deadline

The Nevada NEST program is both a legal requirement and an opportunity. For employers, it’s a way to provide a genuine benefit at minimal cost. For employees, it’s a path to tax-advantaged, automatic retirement savings that’s portable and flexible.

But all of that starts with one simple step: don’t miss the September 1, 2025 deadline to register or certify your exemption. Review your business status, coordinate with payroll, communicate with your team, and get your NEST setup done nowbefore it becomes an emergency.

Your future selfand your employees’ future selveswill be glad you took the time to build a stronger retirement foundation today.