Virginia employers: there's a better retirement solution
than RetirePath Virginia
Mandatory retirement plans are required in Virginia — but you don’t have to settle for the state’s default program. RetirePath Virginia offers limited flexibility and fewer control options. With WealthRabbit, you can provide a retirement benefit your employees will value, with greater control, broader investment options, and stronger tax advantages.
What is RetirePath Virginia?
RetirePath Virginia is a state-mandated retirement savings program for private-sector employers who do not offer a qualified retirement plan. Employers must have been in operation for at least two years and have 25 or more eligible employees to qualify. Employees become eligible once they are at least 18 years old, work at least 30 hours per week, and earn taxable wages from a Virginia employer.
Registration deadlines
The registration deadline is based on the year your business becomes eligible.
- February 15, 2024: The deadline for businesses eligible in 2023
- October 30, 2024: The registration deadline for newly eligible employers in late 2024
- October 30, 2025: The registration deadline for businesses becoming eligible in 2025
Non-compliance penalties
Failure to comply with the state mandate may result in financial penalties:
- $100 per eligible employee per year
What you’re missing with RetirePath Virginia
RetirePath Virginia is designed to check a compliance box - but for businesses and employers, it often falls short:
- Limited investment optionsEmployees can't build customized retirement portfolios.
- No employer benefitsBusinesses spend time managing compliance, but don't receive tax incentives.
- One-size-fits-allEvery business is forced into the same model, regardless of size or needs.
- Minimal growth potentialLimited funds can mean lower returns for employees over time.
- Harsh penaltiesNon-compliant businesses face fines of up to $200/ employee per year, creating significant financial risk.
Ready for a retirement solution that works better for your business?
SIMPLE IRA: The Smart Alternative to RetirePath Virginia
A SIMPLE IRA plan offers significant advantages over the state-mandated option, providing tax benefits for employers and greater growth potential for employees. It's a powerful tool for attracting and retaining talent.
- Tax credits Qualify for up to $5,500 in tax credits for starting a new plan.
- Employer tax deductions Contributions you make are tax-deductible as a business expense.
- Higher contribution limits Both employees and employers can contribute significantly more than with RetirePath Virginia.
- Investment flexibilityEmployees get access to a wide range of investment options, not just a few target-date funds.
- Attract & retain talentOffering a superior retirement benefit makes your company more competitive.
See How Much You Can Save with a SIMPLE IRA
Small businesses can take advantage of tax credits to help cover setup and administrative costs. By launching a new plan with auto-enrollment, you could qualify for up to $5,500 in tax credits!
How tax credits work
Tax credits are designed to offset the cost of setting up and administering, as well as contributing to the employees retirement savings.
Employers can claim up to $5,000 per year for three years to offset plan setup and administrative costs. They may qualify for additional tax credits.
- Auto-enrollment bonusIf you make the plan automatic (employees are enrolled unless they opt out), you get an extra $500 credit for 3 years.
- Employer contributionsYou may also get credits for money you put into employees' accounts (up to $1,000 per employee in the early years).
Together, these credits can add up to thousands in savings for your business. Curious how much you could claim?
Try our calculator and see exactly how much you could save.
Estimate your tax credit
Disclosure*
The SIMPLE IRA tax credit calculator is intended to estimate the average tax credit for your business. Please note, it does not constitute tax or legal advice.
Elevate your retirement savings with WealthRabbit
Instead of enrolling in RetirePath Virginia, Virginia businesses can choose a qualified alternative like a WealthRabbit SIMPLE IRA — a smarter way to stay compliant
- Self-onboardingEmployers and employees sign up on their own—retirement plans are up and running in just a few clicks.
- Seamless payroll integrationWealthRabbit seamlessly connects with your payroll system to ensure accurate and timely contributions for every employee.
- Streamlined plan rolloversEasily roll funds from your existing retirement plan into WealthRabbit— no hassle, no delays.
- Automated contributionsEnjoy a hands-off approach to retirement savings. Set up automatic deposits so your team never misses a contribution.
- Employee & employer portalsManage contributions and investments anytime, anywhere — with real-time access to performance and account activity.
RetirePath Virginia vs. WealthRabbit
A quick look at how WealthRabbit’s SIMPLE IRA compares to Virginia’s state program.
| Feature | RetirePath Virginia | WealthRabbit SIMPLE IRA |
|---|---|---|
| Administrative efforts | State-mandated with limited customization; minimal employer involvement | Streamlined process with automated setup and payroll integration |
| Retirement options | Roth IRA only; default 5% contribution with auto-escalation to 10% and no employer match | More diverse investment options, customizable based on business needs |
| Eligibility criteria | Employers must have 25 or more employees and be in business at least 2 years | Participation is open to employers with ≤100 employees earning ≥$5,000. A required contribution is either a 3% dollar-for-dollar match or a 2% nonelective contribution |
| Flexibility | State-regulated with fixed contribution rates and minimal flexibility | Highly customizable plan with the ability to modify contribution rated and match options |
| Monthly fees | No employer fees; employee accounts are subject to state administrative fees | User-friendly portals+mobile access + stronger growth Low-cost setup: $29/month + $4 per employee, no state fees |
| Employee experience | Basic account with limited tools for employees | Comprehensive dashboard, financial literacy resources, and rollover support |
Frequently asked questions
Private-sector employers in Virginia must register for RetirePath Virginia if they:
- Have been in business for at least two years,
- Employ 25 or more eligible employees, and
- Do not offer a qualified retirement plan (such as a 401(k), 403(b), or SIMPLE IRA)
Employers that offer an eligible, qualified plan, such as a SIMPLE IRA through WealthRabbit, are exempt and must certify their exemption with the state.
Note: Smaller employers (with fewer than 25 employees) or those that have not been in operation for at least 2 years may choose to register voluntarily, but are not required to do so unless they meet the eligibility threshold.
The RetirePath Virginia program launched in 2023, with phased registration deadlines:
- February 15, 2024: The deadline for businesses eligible in 2023
- October 30, 2024: The registration deadline for newly eligible employers in late 2024
- October 30, 2025: The registration deadline for businesses becoming eligible in 2025
Newly eligible employers are required to register or certify an exemption within 12 months of meeting the eligibility criteria. If you have questions about your specific deadline, contact WealthRabbit support for assistance.
Employers are required to do the following:
- Register with the RetirePath Virginia employer portal
- Provide basic employee information (a roster of eligible employees)
- Facilitate payroll deductions for employees who choose to participate. Employers must enable payroll deduction, but are not required to match or contribute themselves.
- Ensure eligible employees are auto-enrolled, with the option for those employees to opt out.
The employer does not have fiduciary responsibilities for the investment decisions of participating employees.
Virginia employers who are required to participate in the RetirePath Virginia program and fail to register or certify an exemption may face escalating penalties:
- $200 per eligible employee for each year of noncompliance
To stay compliant and offer employees greater flexibility and benefits, employers can choose a WealthRabbit SIMPLE IRA instead of enrolling in RetirePath Virginia.
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