WealthRabbit SIMPLE IRA vs. CalSavers: Why small businesses should choose WealthRabbit

Mandate

California employers with 1 or more employees aged 18 or older who do not offer a qualified employer-sponsored retirement plan are required to provide access to a retirement savings plan.

If you’re a small business owner in California, you’ve probably heard about CalSavers, the state-run retirement savings program designed for employers without a retirement plan. While CalSavers provides a basic option to help employees save, it may not meet all the needs of your business or your team.

WealthRabbit’s SIMPLE IRA offers a more flexible, tax-advantaged, and employer-friendly alternative — designed specifically to help small businesses offer meaningful retirement benefits with less hassle.

What is CalSavers?

CalSavers is a Roth IRA payroll deduction program administered by the state of California. It requires employers with five or more employees who don’t offer a retirement plan to register and facilitate automatic employee contributions.

Key points about CalSavers:

• Employee-only contributions — no employer contributions or matching

• Limited investment options controlled by the state

• Employers must register and manage payroll deductions

• No tax deductions or credits for employers

• Employees can opt out at any time

What is WealthRabbit SIMPLE IRA?

WealthRabbit’s SIMPLE IRA is an employer-sponsored retirement plan tailored for small businesses with fewer than 100 employees. It allows both employer and employee contributions, tax benefits, and comes with a fully digital, streamlined experience.

Key features include:

• Employer contributions (mandatory matching or fixed contribution) with tax deductions

• Employee contributions can be Traditional or Roth IRA

• Flexible investment choices for employees

• Fully automated payroll integration and plan management

• No complicated paperwork or annual IRS filings

• Expert support and compliance automation

Why WealthRabbit is a better fit than CalSavers

What this means for your business and employees

• For Employers: WealthRabbit SIMPLE IRA provides you with a tax-deductible way to contribute to your employees’ retirement savings and helps attract and retain talent. CalSavers offers no employer tax advantages or contribution options, and places ongoing administrative tasks on you.
• For Employees: With WealthRabbit, employees gain access to both Traditional and Roth IRAs, more investment choices, and employer contributions — significantly increasing their retirement savings potential. CalSavers limits employees to Roth contributions with no match, which may reduce motivation to participate.
• Ease of Use: WealthRabbit’s platform is designed to eliminate paperwork and administrative headaches, integrating smoothly with your payroll system. CalSavers requires employers to manually register, set up, and manage payroll deductions.

Conclusion

CalSavers serves as a basic safety net for California employees, but it falls short for employers and employees looking for a more robust, flexible, and beneficial retirement plan.

By choosing WealthRabbit SIMPLE IRA, you’re investing in a plan that offers real tax advantages, employer matching, and a superior employee experience — all while simplifying compliance and administration.

Ready to offer a retirement plan that works for your business and your team?

Visit WealthRabbit.com to get started with a SIMPLE IRA today — the easy, affordable way to support your employees’ futures.