Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I offer a 401(k) plan to my employees in Rhode Island? What are the requirements?

Here is the response to your query:

Offering a 401(k) Plan to Employees in Rhode Island

Yes, you can offer a 401(k) plan to your employees in Rhode Island. However, there are certain requirements that you need to fulfill.

According to the Rhode Island General Laws, employers are required to make contributions to the retirement system in order to fund the benefits attributable to the transferred employees earned after the transfer date in accordance with the provisions of this section [1.8][1.9]. Additionally, the member contributions of the transferred employees shall be considered picked up and paid by the airport corporation to the retirement system after the interim period pursuant to the provisions of § 414(h)(2), 26 U.S.C. 414(h)(2), of the United States Internal Revenue Code. The contributions so picked up shall be treated as employer contributions in determining the tax treatment under the United States Internal Revenue Code and shall not be included as gross income of the transferred employee until such time as they are distributed [1.8][1.9].

It is recommended that you consult with a financial advisor or a legal professional to ensure that you are meeting all the requirements for offering a 401(k) plan to your employees in Rhode Island.

I hope this helps!

Source(s):
Jurisdiction

Rhode Island