Virginia’s state-facilitated retirement savings plan provides a convenient and affordable way for employees to save for their future, and covered organizations must register for the program by February 15, 2024. The program is mandatory for Virginia employers with 25 or more employees who have been operating for two or more years and who do not offer a qualified retirement plan.
What is RetirePath Virginia?
RetirePath Virginia is an automatic enrollment Individual Retirement Account (IRA) program designed to help employees who do not have access to an employer-sponsored retirement plan save for retirement. Here is how it works:
- Eligible employees are automatically enrolled in the program unless they opt out.
- Contributions are deducted from employees’ paychecks and invested in a diversified portfolio of low-cost mutual funds.
- Employees can choose to increase or decrease their contributions at any time.
Covered employers who fail to enroll could face penalties of $200 per employee per year.
Covered employers should have received a notification and Access Code from the state to register. To avoid penalties covered employers should register for the program online at https://www.retirepathva.com/ by February 15, 2024.
Employers who received a notification and their organization offers a retirement plan, must certify their exemption at https://retirepathva.vestwell.com/register/employer. For employers who have not yet received a notice from the state, it is recommended that you contact them as soon as possible by calling 1-833-608-6281.