• The VT Saves program establishes a retirement savings plan for Vermonters who are not currently offered a retirement plan through their employer. It’s designed to make saving for retirement easy and automatic, at no cost to employers and no ongoing cost to taxpayers.

    It’s the law: Virginia businesses with more than 5 employees must offer a retirement saving opportunity. Those who haven’t yet adopted an employer-based plan have two choices:

    • Adopt their own retirement plan
    • Register for VTSaves, the state-sponsored retirement savings program
    • Contact your Regional Plan Consultant
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Employer Enrollment Deadlines

Employers who don’t comply with the Vermont retirement plan mandate by their deadline date have to pay significant fines:

Size of Business Compliance Deadline Date
>25 employees July, 1, 2025
15 – 24 employees January 1, 2026
5 – 14 Employees July 1, 2026

Non-Compliant Employers Face Stiff Penalties

Similar to some of the currently active state-mandated programs, employer involvement is minimal with VTSaves, but there are certain requirements necessary to stay compliant. Businesses must:

  • Prior to October 1, 2025: Maximum penalty is $10 per covered employee
  • October 1, 2025 to September 30, 2026: Maximum penalty is $20 per employee
  • After October 1, 2026: Maximum penalty is $75 per employee

You can help your clients avoid these fines and offer a retirement plan that will:

  • Comply with the Virginia mandate
  • Reduce taxes
  • Control costs
  • Attract and retain top talent
  • Maximize business value
  • Enable them to work with their preferred business partners

VTSaves OR Customized Plan?

VTSaves is a basic, one-size-fits-all retirement savings program for businesses that do not wish to sponsor a plan for their own employees. Yet there are many businesses that would be better served with a plan from TRA that’s customized to their needs.

VTSaves Custom 401(k) from TRA
Pre- and Post-Tax Deferrals Roth IRA w/ auto after-tax payroll deduction Pre-tax or Roth elective deferral contributions
Contributions $6,500 – ($7,500 age 50+) Lesser of 100% of compensation or $22,500
Catch-Up Contributions Determined by Roth IRA contribution limits $7,500 annually for those age 50 and older
Employer Match Employers cannot contribute to the program such as matching funds. Available
Income Limit Savers not eligible for the default Roth IRA have the option to recharacterize contributions to a traditional IRA No income limits
Investment Choices Limited selection of low-cost investment options Can provide a wide variety from top asset managers
Automated Payroll Integration Available Available
Customizable for businesses Not customizable Yes – for example, Safe Harbor, SIMPLE, Profit-Sharing & Cash Balance
Tax Credit No, since there are no start-up costs for employers Yes – 100% of the expenses paid up to the greater of $500 or the lesser of $250 for each non-HCE’s. A maximum tax credit of $5,000 per year would be available for 3 years.

TRA Plans to Consider

For Virginia businesses who want to sponsor a retirement plan, some plans to consider include:

Safe Harbor 401(k)
Cross Tested Profit-Sharing Allocation
401(k) plus Cash Balance Plan

Other alternatives to RetirePath Virginia include SIMPLE 401(k) Plans, Group 401(k) Plans (MEPs, PEPs and Aggregation Programs), and 403(b) Plans (for non-profits).


Working closely with you, TRA will create a customized plan that meets your client’s business. We partner with top recordkeepers and investment managers around the country and deliver exceptional client service. We also offer 3(16) Plan Administration Relief Services (PARS) to relieve business owners of day-to-day plan administration responsibilities and manage their fiduciary risk.

Complete the form below and one of TRA’s Regional Plan Consultants will be in contact with you.

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Consider TRA's 3(16) Fiduciary Services & Plan Administration

To alleviate the day-to-day administrative burdens of yours or your clients retirement plans.