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New York has joined the growing list of states that require employers to offer retirement savings access to their employees. Under the new state mandate, private-sector employers with 10 or more employees must either provide a qualified retirement plan or enroll in the state's New York Secure Choice program.
The good news? You have options. Many New York employers are choosing to take control of their benefits strategy rather than settle for the state plan. A SIMPLE IRA through WealthRabbit not only satisfies the mandate but also provides greater tax advantages, lower costs, and a smoother experience for both you and your employees.
Understanding New York's state mandate
New York's retirement savings mandate requires eligible employers to offer their employees access to retirement savings. Employers can meet this requirement in two ways:
1. Facilitate New York Secure Choice, the state-run Roth IRA program
2. Offer a qualified retirement plan (such as a SIMPLE IRA)
The state rolled out compliance deadlines in phases based on business size:
- March 18, 2026: Employers with 30+ employees
- May 15, 2026: Employers with 15-29 employees
- July 15, 2026: Employers with 10-14 employees
Who must comply?
The mandate covers employers with 10 or more employees in New York at all times during the prior calendar year who have been in business for at least two years and don't currently sponsor a qualified retirement plan.
How New York Secure Choice works
- Employees contribute through payroll deductions (Roth, post-tax)
- No employer contributions (unlike SIMPLE IRA)
- The default contribution rate is 3%, with an automatic annual increase of up to 10%
- $7,000 annual contribution limit (2025) and $8,000 for taxpayers age 50 or older - significantly lower than SIMPLE IRA's contribution limit
For many small businesses, WealthRabbit offers a much smoother alternative. The platform integrates directly with leading payroll systems, including QuickBooks, ADP, Gusto, and Paychex, automating contributions and compliance, so employers can focus on running their businesses.
The real cost of non-compliance
New York businesses that don't comply with the state retirement mandate within one year will receive a written warning. After that, penalties escalate:
- $250 per employee per year for employees not enrolled or opted out
- $500 for any portion of the year employees remain unenrolled without opting out
- $1,000 per employee for third and subsequent violations
These penalties can add up quickly. For a business with 20 employees, non-compliance could result in fines of up to $20,000 for the third violation. Choosing a qualified plan, such as WealthRabbit’s SIMPLE IRA, ensures compliance and protects your business from unnecessary costs.
The most innovative way to comply
WealthRabbit offers a complete solution that meets New York’s state mandate while strengthening your employee benefits package. A SIMPLE IRA allows employer contributions, provides higher contribution limits, and delivers valuable tax advantages for both employers and employees.
A SIMPLE IRA (Savings Incentive Match Plan for Employees) is specifically designed for small businesses with 100 or fewer employees. Here’s why New York businesses are choosing it over the state’s Secure Choice program:
Key features include:
- Meets mandate requirements: A SIMPLE IRA is a qualified plan, allowing employers to certify an exemption from the state program
- Employer contributions: Required employer match of 3% or non-elective contribution of 2%, both fully tax-deductible
- Higher contribution limits (2025):
- Standard: $16,500
- Small employers (≤25 employees): $17,600 under SECURE 2.0
- Catch-up (ages 50–59 or 64+): +$3,500 (or $3,850 for small employers)
- Super catch-up (ages 60–63): +$5,250
- Simplified administration: No annual IRS filings or nondiscrimination testing
- Seamless payroll integration: Works directly with QuickBooks, ADP, Gusto, and Paychex
- Compliance automation and expert support: WealthRabbit handles the details so you can stay focused on your business
Taking action before your compliance deadline
With the first compliance deadline just months away, now is the time to decide how you'll meet New York's mandate:
If you already offer a qualified retirement plan: You'll need to certify your exemption from the state mandate once registration opens.
If you don't currently offer a plan: Don't default to the state program just because it's the easiest path. WealthRabbit's SIMPLE IRA gives you full compliance with the mandate, plus:
- Immediate exemption from the mandate
- Better employee benefits that aid in recruiting and retention
- Tax advantages for both your business and your team
- A competitive edge in New York's tight labor market
Making the wise choice for mandate compliance
WealthRabbit's SIMPLE IRA satisfies New York's mandate while positioning your business as an employer of choice. In a competitive job market, offering superior benefits isn't just about compliance; it's about building a team that wants to grow with you.
Ready to meet the mandate with a better solution? Learn how WealthRabbit’s SIMPLE IRA can help your New York business stay compliant while providing employees with a smarter, more rewarding retirement benefit.
Disclaimer: This blog is for educational purposes only and is not intended as tax, legal, or financial advice. Please consult a qualified professional regarding your specific situation.
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