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Effective July 1, 2026, RetirePath Virginia expanded to include qualifying employers with five or more eligible employees.
Businesses may be required to register if they:
Employers that fail to comply may face penalties of up to $200 per eligible employee annually.
Take the RetirePath Virginia Employer Eligibility Quiz
Originally Published: April 2024 | Last Updated: July 2026
In response to concerning statistics showing that many Virginia employees lack access to employer-sponsored retirement savings plans, the Commonwealth created RetirePath Virginia.
The state-facilitated, automatic-enrollment program offers businesses that may not have the resources to provide an employer-sponsored retirement plan a relatively simple way to help employees save for the future.
RetirePath opened in June 2023 after a group of Virginia employers participated in a pilot launch.
Employee contributions are made through payroll deductions and deposited into an individual retirement account. Employers facilitate the program but do not contribute to or manage employee accounts.
Participation is voluntary and flexible for employees. Employees may opt out, change their contribution rate or re-enroll at any time.
RetirePath is also available to independent contractors, gig workers, self-employed individuals and Virginians who do not work for an employer registered with the program.
RetirePath previously applied to qualifying employers with 25 or more eligible employees.
Effective July 1, 2026, the program expanded to include qualifying businesses and nonprofit organizations with five or more eligible employees.
As a result, many smaller Virginia employers that were not previously required to participate must now register for RetirePath or certify that they offer a qualified employer-sponsored retirement plan.
For-profit businesses and nonprofit organizations are generally required to register and facilitate RetirePath if all of the following apply:
Businesses that already offer a qualified retirement plan do not need to facilitate RetirePath. However, an employer that receives a notice from the program may still need to certify its exemption.
Eligible employees are generally individuals who:
Employers may exclude temporary or seasonal employees who work fewer than 90 days during the year.
Eligible employees must be added to RetirePath by their employer. Employees then receive information directly from the program and have 30 days to make account elections or opt out.
Employees who opt out may re-enroll at any time.
Temporary or seasonal workers who are not required to be enrolled through an employer may have the option to open a RetirePath account independently.
Eligible employers receive a notice and unique access code from RetirePath when it is time to register.
Employers that became eligible in 2026 must register and facilitate the program by the following deadlines:
The deadline has already passed for businesses that were eligible before 2026. Those employers should take action as soon as possible.
Employers that receive an access code must either register for RetirePath or certify that they are exempt because they offer a qualified employer-sponsored retirement plan.
Businesses that believe they are eligible but have not been notified can request their Access Code through the RetirePath website.
By default, the RetirePath Virginia contribution rate is 5% of an employee’s gross pay. Employees may adjust their contribution rate or opt out of the program. Unless an employee changes the account settings, the contribution rate automatically increases by 1% each year until it reaches 10%.
The total amount employees may save through RetirePath is subject to federal annual IRA contribution limits and cannot exceed their taxable compensation for the year.
For 2026, the annual contribution limit is:
Employees who contribute to another IRA should consider those contributions when determining how much they can contribute through RetirePath.
RetirePath is designed to be relatively easy to administer, but participating employers still have several responsibilities.
Employers generally must:
Employers are not responsible for managing investments, processing distributions or providing employees with investment advice. RetirePath communicates directly with employees about their accounts.
RetirePath helps Virginia businesses that lack the resources to offer their own retirement plan provide employees with access to retirement savings through payroll deductions.
Additional benefits include:
RetirePath offers a simple online registration process with limited ongoing employer responsibilities. The program integrates with payroll processes and communicates directly with employees so business owners can remain focused on running their companies.
Employers are not subject to program fees or fiduciary responsibilities and cannot contribute to or match employee contributions. Participating employees pay the applicable account and investment fees.
A RetirePath account belongs to the employee. Employees can keep their accounts if they change jobs and may be able to roll their savings into another eligible retirement account.
RetirePath gives qualifying employers a relatively simple way to comply with Virginia law and provide employees with access to retirement savings. However, it may not be the best option for every business.
Private employer-sponsored retirement plans may allow businesses to make employer contributions, offer higher employee contribution limits, and provide greater flexibility in structure. Depending on the plan and the business’s circumstances, there may also be tax benefits for the employer.
A private retirement plan may also support broader recruiting and retention goals. Because RetirePath does not permit employer contributions or matching, it may have less value as a competitive employee benefit.
Before registering, business owners should consider more than the immediate compliance requirement. Workforce size, available cash flow, administrative resources, tax-planning opportunities, and long-term hiring goals may all affect which option makes the most sense.
Employers that establish a qualified retirement plan can certify an exemption from RetirePath.
RetirePath provides online resources to help employers and employees understand and participate in the program, including:
RetirePath also offers employer assistance by phone at 1-833-608-6281 or through the contact form on its website.
If you need additional guidance registering for RetirePath Virginia or understanding how different retirement plan options may affect your business, contact Wendroff & Associates using the FREE CONSULT button below.
