Nevada Employee Savings Trust Program

I have a Nevada client that has had a 401k plan for a few decades. They are concerned that they may have to amend their 401k to incorporate all the provision of the new Nevada state program (e.g. auto enroll). I think they are exempt since they already have a plan. But the way they read it, the exemption is only valid if their plan meets all the provisions of the Nevada state plan.

Can anyone confirm the proper interpretation?

Thanks, Greg

Here’s a hyperlink to Nevada Revised Statutes chapter 353D—Nevada Employee Savings Trust.

https://www.leg.state.nv.us/nrs/NRS-353D.html#NRS353DSec070

Nev. Rev. Stat. § 353D.070 “Covered employer” means an employer that: 1. Employs more than five persons in this State; 2. Has been in business for at least 36 months; and 3. Has not maintained a tax-favored retirement plan for its employees or has not done so in an effective form and operation at any time within the current calendar year or 3 immediately preceding calendar years.

Nev. Rev. Stat. § 353D.150 “Tax-favored retirement plan” means a retirement plan that is tax-qualified under or is described in and satisfies the requirements of section 401(a), 401(k), 403(a), 403(b), 408(k) or 408(p) of the Internal Revenue Code[.]