Savers FAQs

When will RISavers go into effect?

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

How do I join RISavers?

If your employer is eligible for RISavers, you’ll be notified of the opportunity to save with the program once it launches. You can do nothing and start saving automatically or set up your account and customize your savings elections. Participation in RISavers is completely voluntary, you can change your savings rate, investment election, and opt out or back in at any time. 

Will Rhode Island state income tax be withheld from my Roth IRA withdrawals?

If you are a resident in the state, Rhode Island income tax withholding applies only to the taxable portion of IRA distributions. Therefore, if your withdrawal is a qualified distribution there will be no income tax withheld.  If your withdrawal is not a qualified distribution, then a percentage of the taxable portion (the earnings) will be withheld by the state of Rhode Island, but you may claim an exemption from withholding, if eligible, or you may elect to have an additional amount withheld.

Who is responsible for choosing the available investment options?

The Office of the Rhode Island Treasurer, in cooperation with the Connecticut Office of the State Comptroller, is responsible for making decisions about the investment options available in the program. The Rhode Island State Investment Commission must approve of the investment options. 

Are there income limits to participate in RISavers?

Yes, you must determine if you meet federal income limits. If you don’t, you can’t contribute to Roth IRA accounts. Simply put, if you make over a certain amount of income in a given year, you may not be eligible. This income limit is determined by the IRS and is based on your Modified Adjusted Gross Income (MAGI). This figure is determined by certain deductions that are removed and, in some cases, added back into your gross income. You can use this worksheet from the IRS to help you calculate your MAGI. Your MAGI will determine whether – and if so how much – you are able to contribute to your RISavers Roth IRA account.

What happens if I opt out?

You can opt out at any time. If you opt out before deductions have begun, your account will not be activated. If you choose to stop participating after contributions have begun, payroll deductions will end. You can leave the money in your account for your retirement savings. You can also transfer your money or roll it into another IRA. You may also request a withdrawal, which may be subject to penalties and state and federal taxes. And if you change your mind, you can always opt in again at any time by notifying RISavers.

Can I transfer my RISavers money into another retirement savings account?

Money in your Roth IRA can be transferred or rolled into another Roth IRA only. You should consult with a tax expert or financial advisor first.

Can I make withdrawals?

You can take money out of your RISavers Roth IRA at any time. There is no fee or penalty for withdrawing your contributions. However, investment earnings may be subject to taxation and penalties depending on your age and the number of years your account has been active, subject to certain exceptions. If you’re unsure about your status, it’s best to consult with a tax expert or financial advisor.

What steps are taken to keep my account safe from cyber threats?

RISavers has processes in place to protect the security of accounts and protect your personal information. Our program administrator utilizes reasonable security technologies to protect sensitive information in accordance with industry and regulatory standards, which may include encryption, two-factor authentication, and automatic logout after a specified period of inactivity.