Employers FAQs

When will RISavers go into effect?

The program is expected to launch in the spring of 2025.

Do employers have to offer this program?

Yes. Any private sector employer, whether for profit or not for profit, must facilitate the RISavers program if:

It employs five or more employees in Rhode Island, and;
It does not currently provide a qualified, employer-sponsored retirement savings plan

Employers are exempt from program participation if they currently offer or adopt a defined benefit plan or a 401(k), 403(b), 457(b) simplified employee pension (SEP) plan, or savings incentive match plan for employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA.

How can facilitating RISavers help my business?

The program can help you attract and retain employees, at little to no cost for your business. It can be challenging for small businesses to provide a qualified, employer-sponsored retirement plan that helps employees reach their financial goals. RISavers can help you minimize this burden.

Exactly how does RISavers help my employees?

RISavers makes it easier for employees to save for retirement, and automatic retirement savings through the workplace can help them build a more financially secure future. The program uses automatic enrollment and savings through payroll contributions to help employees save. Employees can opt out if they don’t want to participate or prefer to save another way.

Which businesses are eligible to participate in RISavers?

Businesses employing five or more individuals must offer RISavers to their employees unless they already offer or adopt a qualifying retirement plan. Employers with under five employees may offer RISavers to their employees but are not required to.

Are there any fees for employers to participate?

There are little to no employer fees. Employers are neither required nor permitted to make employer contributions to the program.

What if a business doesn’t register for the program as required by law?

Any business with five or more employees in Rhode Island will be required to facilitate the RISavers program, unless it offers a qualified, employer-sponsored retirement plan. The program will be monitoring businesses for compliance and will try to assist businesses in getting enrolled if needed.

Do I need to facilitate the program if I only have a small number of employees?

Is there a penalty for late or omitted payroll deductions?

Failure to remit deductions in a timely manner violates Rhode Island law, including wage and hour requirements. The State may impose penalties for such violations.

What if I already offer a qualified retirement account?

If you already offer a qualified retirement plan, your business is exempt from program participation.

If I offer RISavers to my employees now and then decide to offer a qualified retirement plan later, what do I do?

Employers that choose to introduce a qualified retirement plan after enrolling employees in the RISavers program can request to “unregister.” We will begin the process of exempting your business from the program and adjusting your employees’ accounts as needed. You should communicate what is happening to your employees and inform participating employees that they can still access their RISavers account after you’ve exempted out of the program.

How will I know when I have to register and enroll my employees?

First, you’ll be asked to provide certain information about your business and employees. We ask only for the basic information necessary to set you up as an employer and to set up your employees' accounts. You’ll receive information to share with your employees that will include instructions for them. After that, you’ll start the payroll contributions for the employees who choose to save through the program.

When can I register as an employer?

RISavers will launch in the spring of 2025. Official registration communications and instructions will be sent to qualifying businesses thereafter.

How will enrollment work?

First, you’ll be asked to provide certain information about your business and employees. We ask only for the basic information necessary to set you up as an employer and to set up your employees' accounts. You’ll get information to share with your employees that will include instructions for them. After that, you’ll start the payroll contributions for the employees who choose to stay in the program.

If I have employees in multiple states, including Rhode Island do I just facilitate the State's program for employees in Rhode Island?

Yes, you would need to facilitate the program only for employees whose services are performed within Rhode Island.

Are H-2A visa holders eligible for the program?

Yes, however, they can be enrolled and have an account created for them only if enough verifiable information is available to create an account in their name. If the program is unable to verify their information, an account will not be established for them.

Are seasonal employees eligible?

Yes, if they work for you for at least 120 days, which is the window for you to enroll new hires. If they work for fewer than 120 days, you will not need to enroll them.

Are workers of only certain immigration statuses eligible for the program? What about undocumented workers?

Yes, seasonal employees are eligible to save. However, business owners are not obligated to offer the RISavers program to employees until the employee has worked there for at least 120 days.

How are accounts tracked?

Accounts are tracked using tax ID numbers or Social Security numbers.

What do employees need to do after they are enrolled?

Your employees will be able to choose to remain enrolled in RISavers or opt out. If they remain, you must process the employees chosen payroll deduction. An employee may opt out but will always have the option to rejoin.

What does automatic enrollment mean?

Employees are automatically enrolled to participate in RISavers unless they affirmatively opt out of program participation.

Do employees need to fill out paperwork to enroll or make changes?

Employees are enrolled automatically and do not need to fill out any paperwork. Once enrolled, employees will manage most account functions online. Our customer service team will also be available if your employees need any additional help or have other questions.

When do I need to enroll new employees?

Once the program launches, employers can immediately begin offering RISavers to their employees.

Can I have a designated employee or payroll services provider complete the registration and enrollment process?

Yes. The program is designed to work seamlessly with payroll provider systems.

Do I need to report contributions on my employees’ W2s?

No. The RISavers program is structured as a payroll deduction IRA, not as a traditional retirement plan that needs to be reported on your employees’ W2s. The IRA trustee for the RISavers program will file “Form 5498, IRA Contributions Information” with the IRS (as needed for your employees) and will send employees a copy for their records, no later than May 31.