A recent Pew Charitable Trusts study of private-sector Rhode Island employers found that more than 51% don’t offer retirement benefits. To encourage more people to sock away savings, Rhode Island Governor Dan McKee signed the Secure Choice Retirement Savings Program Act into law. The new legislation introduces the RISavers Retirement Savings Program, which provides a portable Roth IRA for qualifying workers.
What you’ll learn
What you’ll learn
Key takeaways for Rhode Island employers
- The RISavers program is a Roth IRA retirement savings plan available to Rhode Island employers
- If eligible organizations with five or more employees don’t currently have another retirement savings plan, they will need to offer RISavers
- Businesses with 100 or more eligible employees need to register by October 15, 2026, the first deadline in a phased rollout that continues through 2028
- To avoid legal action, qualifying businesses should register for and implement the RISavers program by the phased enforcement date to avoid legal action
If you are a Rhode Island employer hearing about the RISavers program for the first time, you may have a few questions. This guide breaks down exactly how the mandate works, which businesses are exempt, and the upcoming deadlines you need to know to stay compliant.
Who is required to participate in RISavers?
All Rhode Island businesses with five or more employees must participate in RISavers. However, there is an exemption for organizations that already offer a qualifying retirement savings plan, such as a 401(k). Businesses with such a plan don’t have to offer RISavers. If your organization already offers one of these qualifying plans, you can certify your exemption through the RISavers website.
| Plan type | Common name or description |
| 401(a) | Includes standard 401(k) plans |
| 403(a) | Qualified annuity plan |
| 403(b) | Tax-sheltered annuity plan |
| 408(k) | Simplified Employee Pension (SEP) plan |
| 408(p) | SIMPLE IRA plan |
| 457(b) | Governmental deferred compensation plan |
Even if your organization already has a retirement plan, you’re still required to certify your exemption. To do so, visit the RISavers.gov website and register using the access code sent to your business. If you’ve lost your access code, you can request a new one.
Important RISavers deadlines and compliance penalties
The registration period for organizations to signal their intent to enroll in RISavers ended on December 12, 2025. If you missed the deadline, don’t worry. The state government stated that the date was only established to help with program administration. Businesses that missed the registration deadline won’t face any fines or other consequences.
However, over the next few years there are upcoming deadlines that require businesses to set up RISavers and begin full administration of the program. Or, they must offer access to retirement savings through a private provider. That includes setting up an account with Vestwell State Savings, LLC, the state’s retirement program administrator, and enrolling your employees.
Deadlines to set up RISavers vary depending on the number of workers employed by your business:
- October 15, 2026: Businesses with 100 or more eligible employees
- October 15, 2027: Businesses with 50-99 eligible employees
- October 15, 2028: Businesses with 5-49 eligible employees
Throughout the year, many organizations experience shifts in their employee counts. To determine how many workers your business has (and which deadline applies), the state relies on the data submitted on your organization’s TX-17 form: “Quarterly Contribution Return and Report of Wages” for the previous calendar year.
Failing to enroll in RISavers by the due date and not facilitating deductions will result in a noncompliance letter from the state. You’ll have 30 days afterward to set up the program or face a $250 fine per eligible employee.
How the RISavers program works for employees
Eligible employees are automatically enrolled in the RISavers program by their employers. An eligible employee is anyone who:
- Is at least 18 years old
- Has earned at least 120 days of taxable wages from a Rhode Island employer
After enrollment, the employee has 30 days to opt out if they decide they don’t want to participate. If they continue in the program, 5% of their after-tax wages are deposited into their RISavers Roth IRA account.
The money sits for 60 days in a low-risk capital preservation fund. After the 60 days end, the money is transferred into age-appropriate investments based on a Target Retirement Date, which Vestwell selects based on the employee’s birthday.
Employees can change their investment options, contribution amounts, and beneficiaries of their RISavers plan at any time. Funds are owned by the worker, and the plan transfers with them if they decide to change employers or stop working.
Implementing RISavers through your payroll system
Implementing the RISavers program requires some preparation, but it’s not hard. Use these steps to get started:
1. Register your organization
To enroll your business in RISavers, visit the RISavers.gov website. You’ll need your federal tax Employer Identification Number (EIN), plus the access code sent to you via post or email.
Expect basic questions about your employee headcount and payroll frequency. You’ll also be asked for your banking information, which Vestwell uses to transfer funds into your employees’ RISavers accounts.
2. Add your employees
After registration, share the resources provided to you by Vestwell with your employees. These documents outline the plan details. They also include an opt-out form if a worker decides not to participate. Employees have 30 days to opt out from their initial registration date.
To facilitate plan enrollment, Vestwell requires certain information about each employee, including their name, address, birthday, and Social Security number or tax identification number. These details are used to create their account.
3. Time and send deductions
Each payroll period, you’ll withhold your team’s RISavers contributions from their after-tax pay. The contributions are immediately transferred to Vestwell, which deposits them into your employees’ individual accounts.
Modern payroll software can help you manage payroll deductions and avoid mistakes. Platforms such as OnPay automatically calculate total earnings, pre-tax and after-tax earnings. You won’t have to worry about convoluted spreadsheets or missed deductions that affect your employees’ paychecks and your compliance with RISavers.
Employer responsibilities and administrative tasks
Rhode Island’s retirement savings program was developed with simplicity in mind. Unlike some other plans, employers don’t have to worry about hefty fees or a complex administrative burden. Your main tasks as an employer include:
- Enrolling in the program: Sign up for the program if you are required to. Or, claim an exemption if you have fewer than five employers or have another retirement plan available.
- Keep employee records up to date: Add new employees to the program when they join your team. If they choose to opt out, maintain a signed copy of their opt-out decision.
- Withhold the appropriate contribution for each pay period: Deduct the employee’s 5% contribution (or other amount of their choice) from each paycheck. As the RISavers plan is a Roth IRA, deductions are made after taxes.
- Submit employee contributions: Transmit contributions to Vestwell via bank transfer. Their team will apply the appropriate contribution to each employee’s account.
Easy and efficient
“The setup was simple, making it easy to ensure our taxes are paid and forms are filed. OnPay even reaches out to verify we have accurate tax filing info before deadlines, which makes things so much easier for us! It’s a complete solution for everything from employee onboarding and benefits tracking to payroll processing and tax filings.”
— Danielle Wojtkiewicz, Cascade Hand & Orthopedic Rehab
Do employers contribute to RISavers?
As an employer, you’re not responsible for matching an employee’s contributions. In fact, the plan doesn’t permit matching contributions. If that’s something you would like to offer, you may want to set up a 401(k) for employees through a traditional commercial provider.
Employers also don’t retain any fiduciary responsibility for the plan’s performance or their employees’ investment decisions. Workers are free to invest the money into the available plan options. If they leave your company in the future, the plan goes with them. You won’t have any further responsibility for its oversight.
Offering a retirement savings plan sends a positive signal to potential job candidates. With RISavers, you get access to a free plan with minimal administrative work. It’s an easy way to encourage your team to save for the future without cutting into your bottom line.
Rhode Island’s place in the national retirement mandate trend
Rhode Island isn’t the first state to introduce mandated retirement plans — over 15 other states currently have similar programs. Under these state mandates, employers are required to either facilitate the state-sponsored program or offer a qualifying private retirement plan (like a 401(k) or SIMPLE IRA).
- California: Employers with at least one employee must participate in CalSavers or offer a qualifying private plan.
- Colorado: Employers with five or more employees that have been in business for at least two years are required to facilitate Colorado SecureSavings or provide a private plan.
- Delaware: Employers with five or more workers that have been in business for at least six months must enroll in Delaware EARNS or offer a private plan.
- Maryland: Employers with at least one employee and two years in business are obligated to participate in MarylandSaves or offer a qualifying private plan.
- Nevada: Organizations with six or more workers and three years in business must join the Nevada Employee Savings Trust or another qualified retirement plan.
- Oregon: All Oregon employers with one or more workers are required to enroll in OregonSaves unless they offer a similar qualifying private retirement plan.
- Vermont: Businesses operating for at least two years with five or more employees are required to join VT Saves or offer a private plan.
Of the state-mandated programs, the RISavers retirement savings program closely mirrors Illinois Secure Choice. Illinois’ program launched in 2018 and requires businesses with five or more employees to enroll unless they have another qualifying retirement plan. Penalties for noncompliance are $250 per employee for the first year, and double to $500 per employee for each following year.
Moving forward with retirement savings compliance
If you are new to the world of retirement plans, Rhode Island’s new state savings mandate may seem a little intimidating, but it’s easy to set up. The RISavers website walks you through the whole process, and you don’t have to worry about registration fees or matching contributions. If you’re unsure whether you qualify for an exemption or need to register, review your organization’s Form TX-17 for the previous year. Remember, even if you’re exempt, you’ll need to claim the exemption through the state to avoid potential fines.
Payroll compliance is easy with the right tools. With OnPay, you can automate payroll calculations and deductions, so you don’t have to worry about costly errors. To learn more about state-mandated retirement plans and what they mean for your business, check out our comprehensive guide.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.