Nevada business owners faced a new compliance challenge this year: meeting the September 1, 2025, deadline for the Nevada Employee Savings Trust (NEST) Program. If you haven’t registered your business or certified an exemption yet, it’s not too late. We’re providing this post-deadline update to help you understand your obligations and avoid penalties.
What Is the NEST Program?
The NEST Program, also known as Nevada Saves, was established by Senate Bill 305 in 2023. It’s a Roth IRA system designed to help private-sector employees who lack access to an employer-sponsored plan. Employees are automatically enrolled in the plan with a 5% payroll deduction, but can opt out or change their contribution rate.
How NEST Affects Employers
The Nest program is state-administered and free for employers. Registration is mandatory if your business:
- Has operated for at least 36 months
- Employs six or more people in Nevada
- Does not offer a qualified retirement plan such as a 401(k), 403(b), SEP, or Simple IRA.
Employers participating in NEST have several ongoing responsibilities. One of the most important is managing payroll deductions for employee contributions. You need to accurately withhold deductions from each paycheck and submit them on time through the NEST portal. You’re also required to notify the program of any contribution changes, new hires, or terminations.
Critically, under NEST, you’re not considered a fiduciary and are immune from civil liability for employee decisions. It’s purely a payroll deduction program.
Alternatives to NEST
Facilitating a state-run IRA keeps you compliant, but it may not be the most advantageous option. The federal SECURE 2.0 Act of 2022 offers significant financial incentives for businesses that establish a qualified retirement plan. Eligible businesses with 50 or fewer employees can claim a credit covering up to 100% of the administrative startup costs (capped at $5,000) for the first three years, substantially mitigating the cost barrier of setting up your own plan. An additional $500 annual tax credit is available for three years if the plan includes an automatic enrollment feature.
Additional strategic advantages of employer-sponsored plans include higher contribution limits and the ability to offer an employer match or profit-sharing contribution. You also maintain control over plan design and investment options.
What To Do If You Missed the Deadline?
If you missed the NEST registration window, here’s what you can do.
- Register with NEST or certify your exemption as soon as possible.
- Review your payroll systems and ensure you can support automated Roth IRA deductions and reporting.
- Evaluate if setting up your own employee retirement plan is a better long-term strategy.
Nevada businesses that are eligible for NEST ultimately have two options: register for the program or adopt a qualified retirement plan. The right choice depends on your workforce needs and preferred tax strategy. Some employers will find NEST to be a simple, no-cost way to satisfy state requirements. Others appreciate the strong recruitment value and the generous SECURE 2.0 tax credits tied to establishing their own plan.
Whichever route you choose, don’t wait. Late registration may be easier to resolve today than it will be once Nevada begins formal enforcement. Call Kondler & Associates, CPAs, if you’re still determining your business’s response to NEST. Our team is ready to help you find the most cost-effective path.