Live mandate
Does my Virginia business have to offer a retirement plan?
Short answer
Yes, if you have 5 or more eligible employees and have been in business for 2 years or more. Since July 1, 2026, you must register for RetirePath Virginia unless you offer a retirement plan such as a 401(k), in which case you certify an exemption. Missing your deadline can cost up to $200 per eligible employee a year.
Who must comply
Virginia law requires an employer to register and facilitate RetirePath if it has 5 or more eligible employees, has operated for at least 2 years, and doesn't offer a qualified employer-sponsored retirement plan. The threshold was 25 employees until July 1, 2026. It applies to for-profit and nonprofit businesses.
Deadlines
Newly eligible employers get a notice with their dates. The 2027 dates aren’t published yet (2026: September 30 for 10 to 24 employees, October 30 for 5 to 9 or 25 or more). RetirePath says noncompliant employers are subject to enforcement action, which may include financial penalties.
Penalties
RetirePath says businesses that don’t register or certify an exemption by their deadline may owe up to $200 per eligible employee each year.
How to get exempt
Offering a qualified plan, such as a 401(k), 403(b), SEP or SIMPLE IRA, means your business isn't an eligible employer. If RetirePath notified you, certify the exemption on the RetirePath employer site using your EIN and Access Code.
RetirePath Virginia or a 401(k)?
RetirePath Virginia accounts are Roth IRAs, so each saver is held to the IRA limit: $7,500 a year in 2026 and 2027, or $8,600 at 50 or older, across all their IRAs. Higher earners can be phased out of Roth contributions altogether, starting at $153,000 of income for single filers in 2026 and $158,000 in 2027. A 401(k) leaves far more room: employees can defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. RetirePath Virginia doesn’t allow employer contributions, so you can’t add a match; a 401(k) can include one. RetirePath Virginia costs employers nothing to run; savers pay the account and fund fees. New savers start at 5% of pay, rising 1% a year to 10% unless they change it.
Sources
RetirePath Virginia: Virginia Employers (retirepathva.com) RetirePath Virginia Help Center: Are there penalties for non-compliance? (support.retirepathva.com) RetirePath Virginia: Program Description (retirepathva.com) Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov) Internal Revenue Service: COLA increases for dollar limitations on benefits and contributions (irs.gov) Internal Revenue Service: 401(k) plan overview (irs.gov) Georgetown University Center for Retirement Initiatives: States: 2026 state program status (as of November 6, 2026) (cri.georgetown.edu)
This page is general information, not legal or tax advice. Confirm current rules with the state program before acting.
