Rhode Island Passes Savings Plan Mandate: What Does That Mean for YourClients?

Rhode Island is the latest state to mandate an employer retirement savings program for certain businesses, bringing the grand total to 17. On June 26, 2024, Rhode Island passed the Rhode Island Secure Choice Retirement Savings Program Act, a law that aims to provide retirement coverage for workers who did not previously have access to a retirement savings account.

While this legislation is a great opportunity for Rhode Island workers to save for their futures, the state’s Roth IRA program is not the only option your business-owning clients have. They could also choose a qualifying alternative, like an ePlan Services 401(k) retirement plan. Want to learn how you can help them choose wisely? Allow us to be of assistance.

Key Takeaways:

• Recently, Rhode Island has mandated business owners to offer their workers a retirement savings option. However, the program is in development, and there are currently no established deadlines for enrollment.
• Business owners with five or more employees will need to choose the state-administered Roth IRA or provide a qualifying retirement savings plan alternative like an ePlan Services 401(k).
• You can earn your clients’ trust and boost your business by showing them what they can gain from an ePlan Services retirement plan.

What is the Rhode Island Secure Choice Retirement Savings Program?

The Rhode Island government passed the Rhode Island Secure Choice Retirement Savings Program Act, a bill that provides a retirement savings option to the 172,000 Rhode Islanders who currently do not have access to a retirement plan. According to a Secure Retirement for All report, workers are 15 times more likely to save for retirement if they can participate in a workplace plan. This bill states that employers with five or more employees must provide their employees with a retirement savings solution. The mandate is scheduled to become effective within 36 months of the enrollment period’s start.

Deadlines for enrollment in the Rhode Island Secure Choice program have not yet been determined. But it’s best for your clients not to wait until the last minute to enroll in a qualifying plan. Once a deadline for enrollment is determined, failure to comply with this legislation can result in a $250 fine per employee.

Why is an ePlan Services 401(k) retirement plan a wise choice?

Do you want to provide your clients with a retirement plan option that helps both their businesses and yours? A state-sponsored Roth IRA may seem like a quick fix, but it lacks the advantages that come along with enrolling in a 401(k) plan. An ePlan Services 401(k) retirement plan caters more to the needs of your client, has higher contribution limits, and offers beneficial tax credits for starting a new plan, adding an employer-matching contribution, and an auto-enrollment option.

How can you show your clients the ePlan Services difference?

Speaking of tax credits, you can show your clients what they stand to save with our easy-to-use tax estimator. There’s no need to crawl through complex government documentation: simply input their business information and press calculate. It’s a powerful tool that may help you close more deals and expand your book of business.

Conclusion:

Rhode Island just passed their mandatory retirement savings program legislation which means your clients need to be ready to comply with the state’s requirements or face the consequences. Instead of letting your clients settle for the bare minimum, lead them to a plan that works for them, their employees, and your book of business. Are you ready to learn more about how working with ePlan Services can help you and your clients? Contact our seasoned sales team today. We’ll be glad to help!