If you own a for-profit or not-for-profit business in Virginia and do not offer an employer-sponsored employee plan, you may be required to register and facilitate RetirePath Virginia as early as September 30, 2026.

In 2021, Virginia passed legislation establishing a state-facilitated retirement savings plan called RetirePath. This is a state facilitated retirement savings program specifically designed for workers without access to an employer-sponsored retirement plan. One July 1, 2026, RetirePath was expanded and now additional Virginia businesses are required to register and facilitate this plan. If the business is required to register, employees may still opt out of participation.

Business are required to register if they meet the following criteria:

  1. The business has 5 or more eligible employees. Eligible employees include full and part-time workers 18 years or older and receiving wages.
  2. The business has been operating for two or more years.
  3. The business does not offer a qualified, employer-sponsored retirement savings plan.

Businesses should have received or will receive a series of emails or letters when it is time to register. If you fail to respond before the registration deadline, you could face up to an annual penalty of $200 per eligible employee.

Please note that RetirePath is not meant to replace any existing plans that are in place. It is solely intended to give employees an opportunity to save when they do not have access to employer provided plans.

If your business is now subject to these requirements, now may be a good time to compare the RetirePath with other retirement plan options – such as SEP IRA, SIMPLE IRA, 401(k), or other plan design. Other options may offer additional business benefits to your business such as federal credits or adopting a plan or making employer contributions.

Please contact us if you would like help determining whether RetirePath applies to your business, comparing available retirement plan options, or estimating how potential federal credits may interact with plan costs and employer contributions.