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Industry guide · NAICS 531 · Updated September 2026

Retirement plans for real estate brokerages & property management

A brokerage's roster says fifty people; its W-2 payroll says four — and the retirement mandate only ever reaches the four.

The short answer

Real estate agents are almost always independent contractors — federal tax law treats licensed agents paid on commission under written contract as statutory nonemployees — so your agents are not covered by the CalSavers mandate and don't belong on any roster you register. The mandate reaches your W-2 payroll: transaction coordinators, office administrators, property managers, leasing and maintenance staff. If you employ even one such person, you're a covered employer and every deadline has passed. That makes the honest scope of this page narrower than the industry's headcount suggests — and it means a brokerage plan should be sized, priced and designed for the small W-2 team it will actually cover, not the agent roster it won't.

Why this industry is different

The mandate treats every employer alike. The payroll realities underneath don't cooperate:

  • The roster and the payroll are different documents. Fifty agents hang their licenses at the brokerage; four people are on W-2. Every mandate obligation, and every plan you might sponsor, is about the four.
  • Agents are on their own — and mostly know it, but haven't acted. A 1099 agent's retirement is a solo 401(k), SEP or IRA question in their own name; the brokerage can host the education session but can't sponsor the account.
  • Commission income is lumpy on both sides of the house. The brokerage's own revenue swings with closings, which argues for employer contributions that are discretionary rather than promised.
  • Property management spreads small W-2 teams across sites. A management company may have two people at each of six buildings — one employer, one mandate obligation, and an enrollment process that has to work without gathering anyone in a room.
  • Nobody has told the broker any of this plainly. Providers pitching "plans for your fifty-person office" are selling to a headcount that doesn't legally exist.
15,753
real estate brokerages & property management establishments in Los Angeles County alone.
Source: Census County Business Patterns 2022, NAICS 531
$6,750
first-cycle penalty exposure for a typical 9-person shop that ignores its notices — then $4,500 a year.
Source: Cal. Gov. Code § 100033(b)

What actually works

The design conversation here starts with an honest scope statement: the plan covers the W-2 staff, period. For a brokerage with a handful of coordinators and admins, that means small-plan economics — CalSavers satisfies the mandate at no employer cost, while a small 401(k), with startup costs frequently offset by the SECURE 2.0 credits, adds real retention value for the staff who actually run the office and far higher contribution room for the broker-owner, who is often above the Roth income limits and can't use CalSavers personally. Property management companies with staff across sites should weight administration heavily: payroll-integrated enrollment, no meetings required.

What we won't do is oversell the agent side. Agents, as independent contractors, can't be covered by the brokerage's plan — their options are their own solo 401(k)s, SEPs and IRAs, and the useful thing a broker can offer is an education session, not an account. We'll run that session; we just won't pretend it's a company plan.

The SECURE 2.0 credits frequently cover most of the first three years' administration for employers under 50 staff — the formula, worked honestly — and if after the arithmetic CalSavers is still the right answer for your shop, we'll say so: the full comparison · run your own numbers.

By county

This guide is statewide. The county pages go local — where the industry physically clusters, which cities it sits in, and the municipal rules that stack on top of the state mandate.

Where this industry clusters near us

Real Estate Brokerages & Property Management questions

Do my 1099 agents count toward CalSavers?
No. Licensed real estate agents paid substantially on commission under a written contract are statutory nonemployees under federal tax law, and as 1099 contractors they aren't eligible employees for CalSavers — they don't go on your roster and don't count toward your obligation. Your W-2 staff do: coordinators, admins, property managers, maintenance. One W-2 employee is enough to make the brokerage a covered employer.
Can I put my agents in the brokerage's 401(k) anyway?
Not as agents — qualified plans cover employees, and independent contractors aren't employees. An agent who also holds a genuine W-2 role at the brokerage participates through that role like any other employee. For everyone else, the answer lives on their own tax return: a commission agent is a self-employed business who may be able to fund a solo 401(k) or SEP with contribution room far beyond an IRA's.
I run a property management company with staff at six buildings. One obligation or six?
One employer, one obligation — the mandate follows the EIN, not the addresses. All W-2 staff across every site aggregate onto one CalSavers roster or into one plan. The design consequence is administrative: enrollment and notices have to work by payroll and phone, because you'll never have everyone in the same room.
As the broker-owner, what about my own retirement?
Usually the strongest reason to look past CalSavers. The state program is a Roth IRA with Roth income limits — a good production year can price the owner out of it entirely. A 401(k) has no such ceiling and dramatically higher limits, and with a small W-2 staff the testing math is often manageable. That comparison, run with your real census, is the fifteen-minute conversation worth having.
Educational information, not legal or tax advice. Establishment counts are from Census County Business Patterns (most recent published by-industry figures). Confirm your CalSavers obligations at (855) 650-6916 and with your CPA; consult ERISA counsel on plan design. Aduna Capital LLC is not affiliated with CalSavers, is registered as an investment adviser in California, and works from its principal office in Norwalk.

A plan designed around real estate brokerages & property management — not around the average employer

We design around the census you actually have — turnover, seasonality, pay structure and all. Fifteen minutes, no charge, and a straight answer.