Vermont’s VTSaves Retirement Program

Vermont passed legislation in May 2023 to establish an auto-IRA program. The program, VTSaves, will be phased in starting mid-year 2025 for all employers who have been in business within the past two years. All employers with 25 or more employees must auto-enroll by July 1, 2025, with further phase-in dates in 2026. The chart below illustrates a brief summary of the program.


Feature State IRA Plan Employer Sponsored 401k
Plan Type Mandatory Roth IRA Pre-tax, Roth AND Employer Contributions
Contribution Limits Limited to $7,000 (2024) $23,000 (plus more if over age 50)
Compliance Unknown at this time Compliant with state program
Eligibility Unknown at this time Employer controls eligibility requirements
Plan Costs Unknown at this time Dependent on type of plan design chosen.
Tax Deductible Unknown at this time Employer contributions are tax deductible
Tax Credit Available Unknown at this time Plan costs qualify for available tax credits
Default Contribution 5% Employee choice
Auto Escalation Feature YES, appears will increase 1% annually up to 8% NO
Minimum Employees to Participate 25 Any Number
Investments Unknown at this time More than 25 funds in a variety of Morningstar categories

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