Many Virginians working in the private sector don’t have access to an employer-sponsored retirement savings plan. To help give these people a path to economic security, the state government created RetirePath Virginia.

What is RetirePath VA?

RetirePath Virginia is a state-sponsored retirement savings program. Eligible employers are required to participate in it or provide their employees with a qualified retirement savings plan from the private market.

How does RetirePath VA work?

RetirePath VA is a Roth Individual Retirement Account (IRA). Participating employees contribute to it via post-tax payroll deductions processed automatically by their employer. Interest earned over time is added to the contributions. When plan participants retire and draw from their RetirePath IRA, the income is generally tax free.


Employees are automatically enrolled in RetirePath VA within 30 days of joining a business that is registered for the program. Their participation is voluntary, so they may opt out and re-enroll anytime.


The default contribution rate is 5%, but employees can change it whenever they choose. Options range from 1% to 100% as long as the total annual contributions are within IRS limits. If employees do nothing, the rate increases by 1% annually up to 10%. Employers are neither required nor permitted to contribute.


Rollovers from a RetirePath account directly to another type of IRA are tax free and not subject to penalties. The IRS permits such transfers between IRA accounts once per year.

Note: plan participants should review their fees and expenses, including any charges associated with transferring their account. They should also consider whether such a transfer changes any features or benefits that may be important to them.

Administrative fees

RetirePath regularly deducts a small fee from the accounts of participating employees to cover the cost of administration, investment options and other operating expenses. There are no fees charged to employers.

Which employers need to register and when?

For-profit and non-profit Virginia employers may be required to register for RetirePath if they:

  • Have been in business for two or more years
  • Have 25 or more eligible employees
  • Don’t already sponsor a qualified retirement savings program

RetirePath will contact those who meet these criteria to let them know their registration deadline.

What if employers already offer another retirement plan?

Employers who sponsor a qualified retirement savings plan on their own are exempt from RetirePath. They can certify their exemption online using the access code provided to them by the state.

Which employees are eligible to participate in RetirePath VA?

RetirePath VA is open to employees who are 18 or older, work at least 30 hours per week and earn taxable wages from a VA employer. Their modified adjusted gross income (MAGI) cannot exceed the IRS limit for contributing to an IRA.

What are the benefits of RetirePath VA?

Retirement savings programs can help employers attract and retain talent, but some may not have the time or the resources to sponsor a plan on their own. Such businesses might find RetirePath appealing. It charges no fees to employers, has minimal administration and integrates easily with payroll systems. Employers also have no fiduciary responsibilities with RetirePath and do not have to match employee contributions.

How do businesses register for RetirePath VA?

Signing up for SecureSavings is easy, but some basic information is required, including:

How does RetirePath VA compare to other retirement plans?

RetirePath Virginia chart

This information is intended to be used as a starting point in analyzing state-mandated retirement plans and is not a comprehensive resource of all requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.

Unless otherwise agreed in writing with a client, ADP, Inc. and its affiliates (ADP) do not endorse or recommend specific investment companies or products, financial advisors or service providers; engage or compensate any financial advisor or firm for the provision of advice; offer financial, investment, tax or legal advice or management services; or serve in a fiduciary capacity with respect to retirement plans. All ADP companies identified are affiliated companies.

ADP, Inc. is affiliated with ADP Broker-Dealer, Inc. (“ADP BD”),  a limited purpose broker dealer registered with the Financial Industry Regulatory Authority (“FINRA”), and operating pursuant to Securities and Exchange Commission (“SEC”) Rule 15c3-3(k)(2)(i), approved by FINRA to offer 401(k) and SEP/ SIMPLE IRAs, and related retirement plans (the “Retirement Products”) on a payroll deduction basis.