RetirePath Virginia requires businesses with 25 or more eligible employees and in operation for more than two years to enroll in Retire Path if they do not offer a qualified, employer-sponsored retirement plan. The chart below illustrates a brief summary of the program.
| Feature | State IRA Plan | Employer Sponsored 401k |
| Plan Type | Payroll Deduction Roth IRA | Pre-tax, Roth AND Employer Contributions |
| Contribution Limits | Limited to $7,000 (2024) | $23,000 (plus more if over age 50) |
| Compliance | Up to $200 per employee may be assessed for non-compliance | Compliant with state program |
| Eligibility | Up to $200 per employee may be assessed for non-compliance | Employer controls eligibility requirements |
| Plan Costs | Annual fee of $27.00 plus an asset-based fee of 0.12 – 0.32% paid from the employee’s account | Dependent on type of plan design chosen. |
| Tax Deductible | NO | Employer contributions are tax deductible |
| Tax Credit Available | NO | Plan costs qualify for available tax credits |
| Default Contribution | 5%, but can opt out | Employee choice |
| Auto Escalation Feature | YES, 1% each January up to 10%, but can opt out at any time | NO |
| Minimum Employees to Participate | 25 | Any Number |
| Investments | BlackRock Target Date Funds and 4 funds | More than 25 funds in a variety of Morningstar categories |
