RetirePath Virginia vs WealthRabbit SIMPLE IRA: What small businesses need to know

What is RetirePath Virginia?

RetirePath Virginia is a state-sponsored Roth IRA program designed for employees whose employers do not already offer a qualified retirement plan. Through automatic payroll deductions, employees can contribute to their own Roth IRAs without employer contributions or matching.

The state handles investment selection, account administration, disclosures, and fiduciary oversight. Employers only need to facilitate payroll deductions and remit contributions.

How RetirePath works

Here is how the Virginia state-mandated retirement program operates:

• Plan type: Roth IRA funded through after-tax payroll deductions
• Default contribution rate: 5% of gross pay, with automatic annual increases of 1% up to 10%
• Employee enrollment: Automatically enrolled if eligible, with the option to opt out at any time
• Investment options: Managed by private investment firms selected by the program; includes target-date and index fund options
• Employer contributions: Not permitted; employees fund their own accounts

Key Registration Deadlines

Virginia employers without a qualified retirement plan must register or certify an exemption with RetirePath Virginia by the following dates:

• February 15, 2024: For businesses eligible in 2023
• October 30, 2024: For newly eligible employers in late 2024
• October 30, 2025: For businesses becoming eligible in 2025

Who Must Register or Certify Exemption

• You must register for RetirePath or certify that you already offer a qualified plan if you meet all of the following:
• You have 25 or more employees in Virginia
• Your business has been in operation for at least two years
• You do not already offer a qualified retirement plan (SIMPLE IRA)

If your business already sponsors a qualifying retirement plan, you can file a certification of exemption and skip RetirePath.

Why some Virginia employers are choosing a SIMPLE IRA

Many small business owners want to meet the state’s requirements—but also offer a benefit that goes further. That’s where the WealthRabbit SIMPLE IRA comes in.

A SIMPLE IRA is a qualified retirement plan designed specifically for small businesses with up to 100 employees. It not only satisfies Maine’s mandate but also provides stronger benefits for both employers and employees.

Key features include:

• Meets state mandate requirements: A SIMPLE IRA is a qualified plan, allowing employers to certify exemption from MERIT.

• Employer contributions: Required employer match of 3% or non-elective contribution of 2%, both tax-deductible.
• Higher contribution limits (2025):

- Standard: $16,500

- Small employers (≤25 employees): $17,600 under SECURE 2.0

- Catch-up (age 50–59 or 64+): +$3,500 (or $3,850 for small employers)

- Super catch-up (age 60–63): +$5,250

- Automated payroll integration: Works seamlessly with QuickBooks, ADP, Gusto, and Paychex

- No annual IRS filings or complex paperwork

- Compliance automation and expert support

With WealthRabbit, small business owners can stay compliant while giving employees a benefit that’s flexible, modern, and easy to manage.

A Smarter Option: WealthRabbit SIMPLE IRA

RetirePath keeps you compliant, but you can go further.

With WealthRabbit’s SIMPLE IRA, you can:

• Offer employer contributions and higher savings limits
• Maintain full customization and flexibility
• Retain integrated payroll and administrative ease

When you are ready to move beyond the state minimum and offer a more compelling benefits program, WealthRabbit simplifies the transition.

Learn more about WealthRabbit SIMPLE IRAs now!