Virginia Enacts a Virginia Saves ProgramApril 27, 2021 Alert
Virginia Governor approved HB 2174 to establish a state- facilitated individual retirement account (IRA) savings program for employees who are not offered a qualified retirement plan through their employer.
On April 15, 2021, Virginia Governor Ralph Northam approved HB 2174 to establish a state- facilitated individual retirement account (IRA) savings program (called the Virginia Saves Program) for employees who are not offered a qualified retirement plan through their employer. Enrollments are expected to begin no later than July 1, 2023.
Virginia Saves Program
Virginia has become the latest state to establish a state-facilitated IRA savings program for employees who are not offered a retirement plan through their employer. Virginia’s version will be called the Virginia Saves Program. Participation in the Virginia Saves is mandatory for eligible employers. Eligible employers are defined as any non-governmental employer that employs 25 or more eligible employees and does not offer a qualified retirement plan to their employees. Eligible employees are limited to individuals who are employed at least 30 hours per week. Each eligible employee shall be enrolled in the Virginia Saves Program unless the employee elects not to participate.
The governing board of the Virginia College Savings Plan is responsible for establishing, developing and administering the Virginia Saves Program and enrollments are expected to being no later than July 1, 2023.
Paylocity will be monitoring the rule-making process and will provide updates as needed.
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This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.