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State Retirement Mandates for Employers | Cornerstone Advisor Group

Important information for business owners

Virginia’s retirement mandate is expanding.

Beginning in July 2026, more Virginia employers may be required to offer employees access to a retirement savings option. The state plan is one path—but it may not be the only path for your business.

JUL 2026

Newly eligible employers are expected to receive a notice from RetirePath with a registration deadline and instructions to participate or confirm that they offer a qualified plan.

5+Employees may trigger Virginia’s expanded employer threshold.
2 yearsThe business generally must have been operating for at least two years.
2 pathsFacilitate RetirePath or offer a qualifying private retirement plan.
$200Maximum annual penalty authorized per eligible employee for noncompliance.

What changed

The threshold is dropping from 25 employees to five.

RetirePath Virginia is a state-facilitated, payroll-deduction IRA program. The 2026 expansion brings many smaller private-sector and nonprofit employers into the program’s reach.

  • Part-time employees count toward the employer-size threshold under the expansion guidance.
  • Employers that already offer a qualifying retirement plan may certify an exemption rather than facilitate RetirePath.
  • The state plan does not charge employer program fees and employers do not contribute to employee accounts.
  • Exact deadlines will be included in notices sent to newly eligible employers beginning in July 2026.

Virginia employer checklist

Could your business be affected?

You may need to act when all of the following generally apply. RetirePath makes the final eligibility determination.

  1. You are a private-sector or nonprofit employer in Virginia.Government employers are not included in the program definition.
  2. Your business has operated for at least two years.The program uses employer and payroll records to identify potentially eligible businesses.
  3. You have five or more employees under the expanded threshold.Expansion guidance says both full-time and part-time workers count toward the employer threshold.
  4. You do not currently offer a qualifying retirement plan.Examples can include certain 401(k), 403(b), SEP IRA, or SIMPLE IRA arrangements.

Your two main paths

The state plan is an option—not automatically the best fit for every business.

The right approach depends on business size, payroll, recruiting goals, desired employer contributions, tax considerations, administrative needs, and the type of benefit you want to offer.

Path 1

Facilitate RetirePath Virginia

Eligible employers can use the state-facilitated payroll-deduction IRA program.

  • No employer program fee
  • No employer contributions permitted
  • Employees are automatically enrolled unless they opt out
  • Employer remits employee payroll deductions
  • State program controls investment menu and program design
Path 2 · Compare before deciding

Offer a qualifying private plan

A private retirement plan may provide more flexibility, depending on your business goals and employee needs.

  • Potential employer contribution options
  • Potentially higher contribution limits than an IRA
  • More plan-design and eligibility choices
  • May support recruiting and employee retention goals
  • Requires review of costs, administration, and fiduciary responsibilities

Ignoring the requirement may become costly.

Virginia law authorizes enforcement procedures and penalties of up to $200 per eligible employee annually. Confirm your actual deadline and current program requirements directly with RetirePath.

A clearer decision process

Do more than simply default to the state plan.

Cornerstone can help you compare possible plan structures through a practical decision-tree analysis built around your workforce and business priorities.

Step 1

Confirm the mandate

Review employee count, business age, current benefits, payroll process, and the notice received from the state.

Step 2

Compare the paths

Evaluate RetirePath alongside qualifying private-plan alternatives, including costs, contributions, limits, and administration.

Step 3

Choose and implement

Select a direction that addresses compliance while supporting your broader employee-benefit and business objectives.

Employer retirement requirements

State Retirement Program Requirements Map

Select a highlighted state to review the program name, employer threshold, and current status. Requirements and implementation dates can change, so employers should confirm details with the official state program.

Active mandate Upcoming or phased mandate Voluntary or limited program No active statewide mandate shown
United States retirement program status map Green states have active mandates, yellow states have upcoming or phased mandates, blue states have voluntary or limited programs, and gray states have no active statewide mandate shown. Alaska: No active statewide mandate shown Alabama: No active statewide mandate shown Arkansas: No active statewide mandate shown Arizona: No active statewide mandate shown California: Active mandate Colorado: Active mandate Connecticut: Active mandate Delaware: Active mandate Florida: No active statewide mandate shown Georgia: No active statewide mandate shown Hawaii: Upcoming or phased mandate Iowa: No active statewide mandate shown Idaho: No active statewide mandate shown Illinois: Active mandate Indiana: No active statewide mandate shown Kansas: No active statewide mandate shown Kentucky: No active statewide mandate shown Louisiana: No active statewide mandate shown Massachusetts: Voluntary or limited program Maryland: Active mandate Maine: Active mandate Michigan: No active statewide mandate shown Minnesota: Upcoming or phased mandate Missouri: Program enacted Mississippi: Upcoming or phased mandate Montana: No active statewide mandate shown North Carolina: No active statewide mandate shown North Dakota: No active statewide mandate shown Nebraska: No active statewide mandate shown New Hampshire: No active statewide mandate shown New Jersey: Active mandate New Mexico: Voluntary or limited program Nevada: Active mandate New York: Upcoming or phased mandate Ohio: No active statewide mandate shown Oklahoma: No active statewide mandate shown Oregon: Active mandate Pennsylvania: No active statewide mandate shown Rhode Island: Active mandate South Carolina: No active statewide mandate shown South Dakota: No active statewide mandate shown Tennessee: No active statewide mandate shown Texas: No active statewide mandate shown Utah: Voluntary or limited program Virginia: Upcoming or phased mandate Vermont: Active mandate Washington: Upcoming or phased mandate Wisconsin: No active statewide mandate shown West Virginia: No active statewide mandate shown Wyoming: No active statewide mandate shown
How to use this map: Select a highlighted state to jump to its requirement summary below. All states from the original overview are included.

State-by-state overview

Program requirements and deadlines

CAActive mandate

California · CalSavers

Generally applies to qualifying businesses with one or more employees that do not offer a retirement plan.

Official CalSavers website ↗
COActive mandate

Colorado · SecureSavings

Generally applies to qualifying businesses with five or more employees that do not offer a workplace retirement plan.

Official program website ↗
CTActive mandate

Connecticut · MyCTSavings

Generally applies to qualifying businesses with five or more employees that do not offer a retirement plan.

Official MyCTSavings website ↗
DEActive mandate

Delaware · EARNS

Generally applies to qualifying businesses with five or more employees that do not offer a workplace retirement plan.

Official EARNS website ↗
HIUpcoming

Hawaii · Retirement Savings Program

Designed for qualifying businesses with one or more employees. Confirm the current launch schedule and enrollment phases.

Hawaii Department of Labor ↗
ILActive mandate

Illinois · Secure Choice

Generally applies to qualifying businesses with five or more employees that do not offer a retirement plan.

Official Secure Choice website ↗
MEActive mandate

Maine · MERIT

Generally applies to qualifying businesses with five or more employees that do not offer a workplace retirement plan.

Official MERIT website ↗
MDActive mandate

Maryland · MarylandSaves

Generally applies to qualifying businesses with one or more employees, subject to program eligibility requirements.

Official MarylandSaves website ↗
MALimited program

Massachusetts · CORE Plan

A voluntary program for certain eligible nonprofit organizations. It is not a broad statewide employer mandate.

Official CORE information ↗
MNUpcoming

Minnesota · Secure Choice

Program requirements and implementation phases should be confirmed through the official state program.

Minnesota government website ↗
MSUpcoming

Mississippi · Work and Save

Expected to begin with an early rollout before broader implementation. Confirm the latest launch schedule.

Mississippi government website ↗
MOProgram enacted

Missouri · Show-Me MyRetirement

A multiple-employer retirement program. Employers should confirm current availability and participation requirements.

Missouri government website ↗
NVActive mandate

Nevada · NEST

Generally applies to qualifying businesses with five or more employees that do not offer a retirement plan.

Nevada Treasurer website ↗
NJActive mandate

New Jersey · RetireReady NJ

Generally applies to qualifying businesses with 10 or more employees that do not offer a retirement plan.

Official RetireReady NJ website ↗
NMVoluntary / developing

New Mexico · Work & Save

Program availability, employer participation, and deadlines should be confirmed through official state sources.

New Mexico government website ↗
NYPhased mandate

New York · Secure Choice

Designed for qualifying businesses with 10 or more employees, with phased compliance deadlines.

Official Secure Choice website ↗
ORActive mandate

Oregon · OregonSaves

Generally applies to qualifying businesses with one or more employees that do not offer a retirement plan.

Official OregonSaves website ↗
RIActive mandate

Rhode Island · RISavers

Generally applies to qualifying businesses with five or more employees, subject to current program deadlines.

Rhode Island government website ↗
UTVoluntary marketplace

Utah · Retirement Plan Exchange

A voluntary state-facilitated marketplace rather than a broad employer mandate.

Utah government website ↗
VTActive mandate

Vermont · Vermont Saves

Generally applies to qualifying businesses with phased employer deadlines based on workforce size.

Official Vermont Saves website ↗
VAExpanded mandate

Virginia · RetirePath Virginia

The employer threshold is scheduled to expand to qualifying businesses with five or more employees beginning in 2026.

Official RetirePath website ↗
WAUpcoming

Washington · Washington Saves

A state-facilitated auto-IRA program scheduled for future implementation. Confirm current launch and phase-in dates.

Official Washington Saves website ↗

This page is for general educational purposes only and is not legal, tax, investment, or compliance advice. State programs, employer thresholds, deadlines, exemptions, and enforcement procedures may change. Confirm current requirements with the applicable state program and qualified professionals.

Start the conversation

What are you implementing to address Virginia’s retirement mandate?

Before you default to the state option, speak with Cornerstone about the alternatives that may be available to your business. A review can help you identify the questions to ask and the plan features worth comparing.

Contact Cornerstone

Helpful resources

Learn more from the program administrators

RetirePath Virginia official website↗ Official RetirePath employer eligibility quiz↗ Code of Virginia: State-Facilitated IRA Savings Program↗ Book an introductory call with Cornerstone↗