09/26/2026
Three ways to satisfy Virginia's retirement mandate.
Each one hands the owner a different job.
This week covered RetirePath Virginia: the deadlines, the federal tax credits an employer plan may unlock, and the SIMPLE IRA as the fast path. Today, the wrap: the three options side by side.
1. SIMPLE IRA: speed, with a required contribution.
Generally establish by October 1 for an employer's first SIMPLE IRA. The employer must add either a match up to 3% for eligible employees who contribute or 2% for every eligible employee. Generally no annual federal plan filing. Employees generally direct their own investments, so the employer's fiduciary role runs limited compared with a 401(k), but not zero: the employer administers the plan, sends notices, and must remit contributions on time. The federal credits may apply.
2. 401(k): the most flexibility and the most responsibility.
A new calendar-year safe harbor plan generally must start by October 1 (the first plan year needs at least three months); a traditional design can generally start later, with employee contributions counting from adoption forward. Employer contributions stay optional in a traditional design; safe harbor designs require a qualifying employer contribution or match. The plan generally files a Form 5500 each year, and plan fiduciaries must prudently monitor investments and service providers. Certain duties can be delegated, with oversight. The federal credits may apply.
3. RetirePath: comply, and hand off the rest.
Employees save through a state-facilitated IRA (Roth by default, traditional available) at the combined 2026 IRA limit of $7,500 ($8,600 at 50 and up); Roth income limits apply. The employer cannot contribute, files no federal plan return, but still facilitates payroll and records. Federal employer retirement plan tax credits generally do not apply.
Which path fits depends on headcount, payroll, growth plans, and how much of the job you want to keep. That decision belongs in a conversation before the deadline.
Compliance answers the state. The plan you choose can align with your goals.
