The RetirePath Virginia Retirement Savings Program was initially created by legislation on April 15, 2021, and is expected to launch in July 2023. The program is an automatic-enrollment payroll deduction state-run IRA program for employers who do not otherwise offer employees a qualified retirement savings program. RetirePath contributions default to a Roth IRA, but employees have the option to recharacterize their contributions to a traditional IRA.
An employee is eligible to participate in Retire Path if they are at least 18 years old, employed by a covered employer for at least 30 hours a week, and paid Virginia-taxable wages. An employer is required to offer the RetirePath program to eligible employees if it has been in business in Virginia for at least two years, employed 25 or more eligible employees, and does not offer a qualified, employer-sponsored retirement savings plan.
Specifically, covered employers will be required to register with RetirePath and facilitate optional employee contributions through payroll deductions to the state-run IRA program. Covered employers will receive their first registration notification and access code before July 1, 2023, with the registration deadline on February 15, 2024. Employers that receive a registration notification but are exempt must certify their exemption online.
More information is available on RetirePath Virginia’s website: FAQs | RetirePath Virginia.
Employer Registration » Employer Exemption »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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