Vermont Saves vs WealthRabbit
Vermont retirement plan
compliance made simple
Up to $17,000
Employee contribution
limit (2026)
Up to $16,500
SECURE 2.0 startup
tax credit (3 yrs)
<15 min
Average
setup time
100% Digital
No paperwork,
no fax, no hassle
Vermont's retirement mandate is now in effect
Most Vermont employers with 2 or more employees are now required to register or certify an exemption. If you already offer a qualified retirement plan like a SIMPLE IRA or 401(k), you're exempt, but you still need to certify through the portal.
Registration deadlines by employer size
25+ employees
Deadline was July 1, 2025. Enroll or certify exemption immediately to avoid penalties.
15–24 employees
Deadline was January 1, 2026. Enroll or certify exemption now.
2–14 employees
Deadline was July 1, 2026. Enroll or certify exemption now.
Fewer than 2 employees
Currently exempt. A pending rule change may expand the mandate. Check back for updates.
Non-compliance penalties can add up quickly
Per covered employee, per year
Per covered employee, per year
A business with 10 covered employees that remains non-compliant on or after October 1, 2026, could face up to $750 per year in penalties. WealthRabbit SIMPLE IRA helps your business offer an affordable qualified retirement plan and certify an exemption from Vermont Saves.
Your retirement plan
could pay for itself
Eligible Vermont businesses may qualify for up to $16,500 in federal SECURE 2.0 tax credits when starting a SIMPLE IRA, helping offset most or all retirement plan costs during the first few years while providing an alternative to the Vermont Saves program.
A quick look at how WealthRabbit's SIMPLE IRA compares to Vermont's state program
Vermont Saves is designed to provide a baseline option. WealthRabbit is built to go further, for the employers and employees who want more.
Four reasons Vermont businesses choose WealthRabbit SIMPLE IRA over Vermont Saves
Vermont Saves gets you to the baseline. WealthRabbit takes you further, with more flexibility, more tax savings, and a better experience for your team.
Matching contributions
Employers can offer matching contributions, a powerful tool for attracting and retaining talent. Vermont Saves prohibits employers from contributing at all.
Flexible investment options
Your employees choose their own portfolio, from conservative bond-heavy allocations to aggressive growth and even crypto-enabled portfolios managed by Bitwise.
Higher contribution limits
Employees can save up to $17,000 (or $18,100 for small employers under SECURE 2.0), more than double what Vermont Saves allows with its $7,500 Roth IRA cap.
Employer tax credits
Qualify for up to $5,000/year in SECURE 2.0 startup credits for the first 3 years, a benefit Vermont Saves accounts simply don't offer.
Set Up Your Plan
in 3 Simple Steps
No advisors, no paperwork, no delays. From signup to employees enrolled in under 20 minutes.
1. Create Your Retirement Plan
Sign up online. No paperwork, no faxing required. Your plan is set up and IRS-ready in minutes, not weeks.
2. Invite Your Employees
Employees get a secure invite to set up their own account. They choose their portfolio, set their contribution rate, or opt out. All on their own.
3. Connect payroll and automate contributions
Sync with your existing payroll system. Contributions flow automatically every pay period with no manual steps and no missed deadlines.
Everything you need to manage retirement benefits
WealthRabbit handles the complexity so you can focus on your business. Built for small teams with big responsibilities.
Payroll Integration
Connects with your payroll system to automate deductions, employer matches, and reporting. No double-entry.
Fully Digital Onboarding
Employees sign up on desktop or mobile in minutes. No paper enrollment forms, no waiting for signatures.
Employer & Employee Dashboards
Real-time visibility into contributions, account balances, and plan performance for both administrators and participants.
Compliance Support
No Form 5500 filing required for SIMPLE IRAs. We provide the records and reporting you need to stay audit-ready. WealthRabbit does not file taxes on your behalf.
Choose Your Investment Options
Employees answer 8 questions and get a personalized portfolio recommendation from 10 expertly managed options.
Vermont Mandate Compliance
A WealthRabbit SIMPLE IRA is a qualified retirement plan, and setting one up fully exempts you from the Vermont Saves mandate.
Professionally managed portfolios built for long-term growth
WealthRabbit's core portfolios have been actively managed since June 2014. Employees choose based on a simple 8-question risk assessment with no investment knowledge required.
Core Portfolios
Diversified, time-tested investment strategies built for steady long-term growth and capital preservation.
- Professionally managed portfolios
- Time-tested methodologies
- Diversified asset allocation
- Automatic rebalancing for optimal performance
Crypto Portfolios
Powered by
Get exposure to digital assets inside your Backdoor Roth IRA — combining tax-free growth with professionally managed crypto strategies.
- All investments held in crypto ETFs & ETPs
- Research-driven fund allocation
- No digital wallet management needed
- No special crypto tax reporting needed
SIMPLE IRA Setup Guides
Download free resources designed to help employers and employees understand, launch, and manage a SIMPLE IRA with confidence.
Employee starter guide
A beginner-friendly guide that helps employees understand how SIMPLE IRAs work, enroll in the plan, and make informed retirement savings decisions.
- What is a SIMPLE IRA?
- How employee enrollment works
- Understanding employer contributions
- Investment options & account access
Employer setup guide
A practical guide for business owners covering SIMPLE IRA setup, compliance requirements, payroll coordination, and employee communication.
- Setup process & implementation timeline
- Contribution rules & tax credit opportunities
- Compliance requirements & deadlines
- Employee onboarding best practices
Frequently asked questions
Vermont Saves is the state-mandated retirement savings program for eligible private-sector employers in Vermont that do not offer a qualified retirement plan. It requires Vermont employers with five or more employees to register (unless exempt).
An employer is required to either register for the program or certify an exemption if they meet all of the following criteria:
- Your business is registered to conduct business in the state of Vermont
- Have five or more employees who have worked for you for at least 120 days.
- Have been in business for at least 2 years
- Do not currently offer a qualified retirement plan
Employers that offer an eligible, qualified plan, such as a SIMPLE IRA through WealthRabbit, are exempt and must certify their exemption with the state.
The deadlines for existing businesses are staggered based on employee count:
- March 1, 2025: Employers with five or more employees must register or certify an exemption
- July 1, 2025: Employers with 25 or more employees must enroll their eligible workers
- January 1, 2026: Employers with 15 to 24 employees must enroll their eligible workers
- July 1, 2026: Employers with 2 to 14 employees must enroll their eligible workers
For newly established businesses or those that become freshly eligible, the employer must register or certify exemption by the date provided in the state's official notification. This deadline is generally set to be at least one year after the business first meets the eligibility criteria.
If you have questions about your specific deadline, contact WealthRabbit support for assistance.
Employers who fail to comply may face the following penalties:
- Before October 1, 2025: A fine of up to $10 per eligible employee per year
- October 1, 2025 – September 30, 2026: A fine of up to $20 per eligible employee per year
- After October 1, 2026: A fine of up to $75 per eligible employee per year
To stay compliant and offer employees greater flexibility and benefits, employers can choose a WealthRabbit SIMPLE IRA instead of enrolling in MERIT.