Contents
If you’re a Rhode Island business owner, a significant shift in retirement compliance is on the horizon. The Rhode Island retirement mandate requires eligible employers to either enroll their employees in the state-run plan or offer a qualified retirement option of their own.
While the state program is designed to help workers save, employers should understand that there are more beneficial alternatives that offer greater control and long-term value. A SIMPLE IRA through WealthRabbit meets the exact compliance requirements while providing added flexibility, more substantial tax advantages, and a smoother experience for both employers and employees.
What is RISavers?
RISavers is the state’s retirement savings program, structured as a Roth IRA for private-sector employees. Employers that do not already offer a qualified retirement plan must register for the program or certify an exemption.
- Who must participate: Employers with five or more employees that have been in business for at least two years
- Employee eligibility: Workers aged 18 or older who receive wages from a participating employer
- Account type: Roth IRA, funded through payroll deductions.
- Employee contribution rate: The default is Contribution Amount: 5% default, flexible 1% auto-increase per year up to 10%
- Employer contributions: None
The program is administered by the Office of the Rhode Island General Treasurer and managed by an external financial provider. Participating employers are responsible for facilitating payroll deductions but are not required to manage investment decisions or fund matching contributions.
Why some employers are choosing their own plan
While the program provides a baseline for retirement savings, it offers limited control and no employer tax benefits. Many Rhode Island businesses are opting to exceed the state’s minimum requirements by providing their own qualified plan, unlocking greater benefits.
The benefits of a SIMPLE IRA
A SIMPLE IRA (Savings Incentive Match Plan for Employees) is designed specifically for businesses with up to 100 employees. It offers built-in tax benefits and lower administrative costs, making it a strong alternative to the state-run option. Employer contributions are tax-deductible, whether you choose to match up to 3 percent of employee pay or contribute 2 percent for all eligible employees. With straightforward setup and no annual IRS filings, it’s easy to maintain compliance while helping your team save for the future.
Unlike the state plan, a SIMPLE IRA enables you to strengthen employee loyalty and reduce turnover by allowing direct employer contributions to their retirement accounts. It’s a proactive, personalized approach to compliance that benefits everyone involved.
Why WealthRabbit is the better choice
WealthRabbit makes it simple for Rhode Island employers to stay compliant while keeping control over their benefits. The platform was designed to help small organizations and nonprofits establish and manage retirement plans with minimal complexity and cost.
Key features include:
- Meets state mandate requirements: A SIMPLE IRA is a qualified plan, allowing employers to certify exemption from VT Saves
- Employer contributions: Required employer match of 3% or non-elective contribution of 2%, both 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
- Automated payroll integration: Works seamlessly with QuickBooks, ADP, Gusto, and Paychex
- No annual IRS filings or complex paperwork
- Compliance automation and expert support
Don’t wait for the State, Get compliant now
Choosing a SIMPLE IRA through WealthRabbit not only meets Rhode Island’s requirements but also helps your organization stand out as one that invests in its people. The RISavers program is expected to become mandatory for eligible employers soon, and compliance will be closely monitored once rollout is complete. Taking action early gives your business time to choose the right path and ensure a smooth transition.
If you’re ready to simplify compliance, reduce costs, and provide lasting value to your employees, WealthRabbit’s SIMPLE IRA can help your organization meet every requirement with confidence.
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.
Not sure which plan fits?
Answer three quick questions about team size and budget - we'll match you to a plan, no reading required.
