WealthRabbit now integrates with Paycor and Auris payroll. Link your account to automate every contribution. Learn more

What could non-compliance actually cost?

Penalties are charged per employee, per year, in every active-mandate state. Move the slider to see a rough estimate for your headcount.

California
1200

Between 1 and 5 years.

Estimated Maximum Exposure
$7,500

Based on California's maximum published penalty of $250/employee, rising to $500/employee, across 15 employees over 1 year. This is an estimate for planning purposes only - actual fines are set by the state.

State-run Roth IRA vs. a WealthRabbit SIMPLE IRA

Sponsoring your own qualifying plan - like a SIMPLE IRA - automatically exempts you from your state's mandate. Here's what changes for your team.

Feature

WealthRabbit SIMPLE IRA

Typical state program

Account type
Pre-tax SIMPLE IRA - lowers taxable payroll today
Roth IRA only, after-tax (a few states add a traditional option)
2026 contribution limit
SIMPLE IRA limit — $17,600 ($19,600 if 50+), higher under SECURE 2.0 for small employers
Standard IRA limit — $7,000 ($8,000 if 50+)
Employer contributions
Employer match or 2% nonelective contribution, often tax-deductible
Not permitted - employees fund it alone
Setup effort
Guided onboarding, done in one sitting
State portal, per-pay-period file uploads, ongoing registration checks
Payroll integration
Native sync with common payroll providers
Manual file exports in most states
Investment choice
Curated core portfolios, with an optional digital-asset sleeve
A small, fixed menu set by the state board
Support model
A dedicated small-business support team
State call center, shared across every employer in the program
Mandate status
Sponsoring this plan satisfies the mandate — you opt out of the state program entirely
You're in it because the law requires it

Built for the business that has to comply - and would rather thrive

Under SECURE 2.0, business owners can choose Roth tax treatment for SEP IRA contributions instead of the traditional pre-tax option.

Satisfies every active mandate

A SIMPLE IRA is a qualifying employer-sponsored plan in all 15 mandate states, so you're exempt the moment it's active.

Tax credits, not just tax bills

Startup and auto-enrollment credits under SECURE 2.0 can offset a meaningful share of your setup and admin costs.

One plan for every location

Multi-state employers stop tracking five different portals - one plan, one filing, wherever your team works.

Room to grow

Outgrow the SIMPLE IRA's limits later and roll into a 401(k) without disrupting your team's existing balances.

Set up in the time it takes to read the state notice

No paperwork. No back-and-forth. Most plans are set up in under 15 minutes.

Tell us your state and headcount

1. Tell us your state and headcount

We confirm which mandate applies and what your effective deadline is.

Connect payroll

2. Connect payroll

Link your existing payroll provider - no spreadsheets, no manual uploads.

3. Invite your team

3. Invite your team

Employees enroll or opt out on their own; you don't manage individual elections.

Get your compliance record

4. Get your compliance record

We generate the documentation you'd show a state auditor or your accountant.

Nuances that change whether you're actually covered

State retirement mandates read simply until they don't. Four details worth checking before you assume you're exempt - or that you're not.

It's about where employees work, not where you're incorporated

Most mandates apply based on the employee's work location. A Delaware-incorporated company with two remote hires in Colorado can be subject to Colorado's mandate even with zero Colorado offices.

Related companies can be counted together

Several states - New York among them - aggregate employee counts across affiliated employers under IRC §414. Two small entities under common ownership can be treated as one employer for threshold purposes.

Contractors and gig workers usually don't count - but check

Employee thresholds are typically based on W-2 headcount. 1099 contractors generally aren't counted toward the minimum, though a few state programs let them opt in voluntarily.

A 401(k), SEP IRA, or SIMPLE IRA all qualify as an exemption

You don't have to use the state program if you already sponsor a qualifying employer plan - the exemption isn't limited to SIMPLE IRAs, but SIMPLE IRAs are the lowest-lift option for most small teams.

Trusted by Businesses,
Accountants & Individuals

Small business owners, freelancers, and CPAs across the country rely on WealthRabbit for their team's retirement future.

Frequently asked questions

It's a law requiring qualifying employers that don't already sponsor a retirement plan to either offer one or facilitate payroll deductions into a state-run account — almost always a Roth IRA. Fifteen states currently enforce one.

Usually, yes. Most mandates are triggered by where your employees work, not where your company is registered. If you have even one eligible W-2 employee in an active-mandate state, that state's rules likely apply to you.

It depends on the state. Most active-mandate states charge a per-employee fine, often escalating the longer you go without registering or offering a qualifying plan — Illinois and Vermont are examples with clearly published penalty scales.

A SIMPLE IRA is an employer-sponsored plan you choose and control. Unlike most state Roth IRA programs, it allows pre-tax contributions, employer matching, and higher annual limits — and sponsoring one exempts you from the state mandate entirely.

Generally no — thresholds are based on W-2 employees. Some states allow contractors to opt into the state program voluntarily, but they don't count toward whether you're a covered employer.

It's worth considering. More than half the states without an active mandate now have legislation introduced, and several — like Michigan — have already moved bills through one chamber. Setting up a plan now avoids a scramble later.