Live mandate
Does my Rhode Island business have to offer a retirement plan?
Short answer
Yes, if you have 5 or more employees and don’t offer a retirement plan such as a 401(k). You either sign up for RISavers or certify that you already offer a plan. Enforcement phases in by size: more than 100 eligible employees from October 2026, 51 to 100 by October 15, 2027, and 5 to 50 by October 15, 2028.
Who must comply
RISavers covers Rhode Island employers with 5 or more employees that don’t offer a tax-qualified retirement plan, such as a 401(k), 403(b), 457(b), SEP, SIMPLE or pension plan, or an automatic-enrollment payroll deduction IRA. Businesses with fewer than 5 employees don’t have to participate.
Deadlines
Rhode Island law phases in compliance by size: 51 to 100 eligible employees by October 15, 2027, and 5 to 50 by October 15, 2028. Employers with more than 100 were due October 15, 2026. RISavers also runs registration windows, which the Treasurer has said help with program administration and are not enforcement deadlines.
Penalties
Rhode Island first sends a notice. If you still don’t let eligible employees join within 30 days of a penalty notice, and don’t have a good reason, you owe $250 per eligible employee.
How to get exempt
If you provide a qualified retirement plan such as a 401(k), certify your exemption on the RISavers employer portal with the Access Code from your notice. Rhode Island law lets you set up your own tax-qualified plan at any time instead of facilitating RISavers.
RISavers or a 401(k)?
RISavers accounts are Roth IRAs, so each saver is held to the IRA limit: $7,500 a year in 2026 and 2027, or $8,600 at 50 or older, across all their IRAs. Higher earners can be phased out of Roth contributions altogether, starting at $153,000 of income for single filers in 2026 and $158,000 in 2027. A 401(k) leaves far more room: employees can defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. RISavers doesn’t allow employer contributions, so you can’t add a match; a 401(k) can include one. RISavers costs employers nothing to run; savers pay the account and fund fees. New savers start at 5% of pay, rising 1% each January to 10% unless they change it.
Sources
RISavers: Program details (employers) (risavers.gov) RISavers: Contributions (savers) (risavers.gov) Rhode Island General Assembly: R.I. Gen. Laws §35-23-9 Employer participation (webserver.rilegislature.gov) Rhode Island General Assembly: R.I. Gen. Laws §35-23-15 Penalties (webserver.rilegislature.gov) Rhode Island Office of the General Treasurer: Important information regarding RISavers program (2025-12-02) (treasury.ri.gov) Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov) Internal Revenue Service: COLA increases for dollar limitations on benefits and contributions (irs.gov) Internal Revenue Service: 401(k) plan overview (irs.gov) Georgetown University Center for Retirement Initiatives: States: 2026 state program status (as of November 6, 2026) (cri.georgetown.edu)
This page is general information, not legal or tax advice. Confirm current rules with the state program before acting.
