RetirePath Virginia

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

More Articles