Rhode Island’s state retirement savings program
Rhode Island businesses with five or more employees should be prepared for Rhode Island’s active retirement mandate. Under state law, business meeting this requirement need to offer either the state-facilitated plan or a qualified alternative.If you’re an advisor or employer in Rhode Island, the ePlan Services team is here to answer your questions and help you set up a 401(k) plan in 24 hours.
What to know about RISavers
RISavers is Rhode Islands’s retirement savings program. Here are the basics:
- Program Status: Open for enrollment
- Employer Participation: Mandatory
- Program Type: Roth IRA
- Penalty: $250 per employee for failure to enroll
- Employer Requirements: Employers with five or more employees that don’t offer a qualified retirement plan
- State Website: RISaversopens in a new tab
ePlan Services vs. RISavers
See how Rhode Islands’s retirement savings program measures up against an ePlan Services 401(k)
Potential for up to $5,000 start up credit and $500 automatic enrollment credit for 3 years, plus available employer contribution credit of up to $1,000 per employee
IRAs do not qualify
Yes
Matching is not permitted
Yes
Individual accounts
Yes
Restricted options
$24,500
+ $8,000 (age 50-59, 64+) or $11,250 (age 60-63) in catch-up contributions
$7,500
+ $1,100 in catch-up contributions (age 50+)
Meet your regional wholesaler
Quick and easy plan setup
Plan setup can be easily completed online so you can focus on helping more clients.
Higher contribution rates
401(k) retirement accounts have higher contribution limits than IRAs—putting more in your clients’ pockets down the road.
Potential tax breaks
SECURE Act offers tax credits to employers who start plans, add an auto-enrollment feature, or make contributions.
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.
A Financial Advisor’s Guide to State-Administered Retirement Plans
Millions of private-sector workers across the United States do not have access to a retirement savings account and, to address this crisis, several states have implemented state-administered retirement plans. What does this mean for you? It means that, as a trusted financial advisor, your clients are going to need your help selecting and enrolling in a retirement plan that will suit the needs of their business.
