Key Takeaways
Impacted Employers: Employers with five or more employees who do not offer a qualified employer-sponsored retirement plan.
Effective Date: July 1, 2026
Summary: Virginia has enacted legislation which expands the number of employers that may be required to participate in the Virginia RetirePath program.
Next Steps: Review employee counts to determine eligiblity and review payroll processes to ensure timely transmission of contributions.
The Details
Virginia has enacted legislation (House Bill 176), which expands the number of employers that may be required to participate in the Virginia RetirePath. House Bill 176 takes effect July 1, 2026.
Background
Currently, a Virginia employer with 25 or more employees, whose business has operated for two or more years and does not offer a qualified employer-sponsored retirement program, must:
- Offer an employer-sponsored retirement program; or
- Register for RetirePath.
House Bill 176
Effective July 1, 2026, House Bill 176 expands the definition of eligible employer to include employers with five or more employees for the period ending December 31 of the preceding calendar year prior to the program’s open enrollment period for that calendar year.
The law also:
- Clarifies that employers who offer and sponsor a qualified retirement plan, including 401(k) plans, are not required to register for RetirePath;
- Removes the requirement that eligible employees work at least 30 hours a week; and
- Adds the requirement that participating individuals enrolling in the program be at least 18-years old.
Contributions
Employees have 30 days after an employer has registered for RetirePath to opt out or adjust their contribution rate.
An eligible employer that withholds a contribution from a participating employee's wages in connection with RetirePath program must remit the contribution on the earliest date that the amount withheld from the eligible employee's compensation can be transmitted.
Note: This amount must be remitted no later than 10 business days following the date that the eligible employee's contribution amount was withheld from the employee's paycheck.
Registration process and deadlines
RetirePath Virginia sends a series of emails or letters to eligible employers when it’s time to register. These communications include a unique Access Code, registration deadline and instructions.
If you have not yet received a RetirePath notification with your Access Code, you can request an Access Code be generated for your business. If you have misplaced your previously issued Access Code, you can retrieve your Access Code via email.
Employers that already offer a qualified plan or are otherwise exempt from the Commonwealth’s mandate can certify an exemption.
Employers eligible in 2026, must register and facilitate the program by the following deadlines:
- For employers with 10-24 employees, the registration deadline is September 30, 2026.
- For 5-9 or 25 or more employees, the registration deadline is October 30, 2026
The deadline has passed for employers that were eligible before 2026.
Penalties
An employer that is found to have violated the law may face penalties.
Next steps
- Determine whether the business meets the employee threshold criteria that require them to have an employer-sponsored retirement program or to register with RetirePath;
- Review payroll processes to ensure timely transmission of withholdings.
How ADP can help
The ADP TotalSource® Retirement Savings Plan (the “Plan”) is a professionally managed 401(k) Multiple Employer Plan (MEP) available to help TotalSource clients meet Virginia’s new retirement requirements—at no additional cost to your business. It can also enhance your overall benefits offering by reducing administrative complexity, streamlining compliance, and supporting employee participation. To learn more or explore your options, reach out to your ADP TotalSource representative to setup a call with a MEP 401(k) Plan Consultant.