State-facilitated IRA Savings Program
Commonwealth of Virginia IRA program
Year enacted |
2021 |
Status |
Anticipated program launch date is on or before July 1, 2023 |
Employers affected |
Mandatory for employers with 25 or more employees who worked at least 30 hours a week in the preceding calendar year, have been in business for at least two years, and haven't offered a qualified retirement plan. To encourage participation in the program, the board can explore and, as appropriate, establish incentives, including a grant program to incentivize compliance with the program and to defray the costs of small businesses. |
Type of account |
Roth IRA (default) and traditional IRA (optional) |
Automatic enrollment |
Yes |
Auto-escalation |
Yes (1% per year up to 10%) |
Default contribution rate |
5% |
Employer contributions |
Not permitted |
Investment options |
To be determined by the board
Default—The board shall determine the investment option to serve as the default investment option for participants who fail to make an election. |
Fees |
To be determined by the board |
Website |
In development; information may be added to virginia529.com until the website is developed |
Sources: Most of the information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21 and "State-Facilitated Retirement Savings Program: A Review of Progress and Outlook for 2022" webinar, Georgetown University Center for Retirement Initiatives, 2/17/22. It is subject to change without notice. Please contact the state to learn more.
Learn more about the opportunity with state-facilitated retirement plans
John Hancock Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker dealer for the John Hancock mutual funds. Member FINRA, SIPC.
John Hancock Retirement Plan Services LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans. John Hancock Trust Company LLC provides trust and custodial services to such plans. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, New York. Product features and availability may differ by state. Securities offered through John Hancock Distributors LLC. Member FINRA, SIPC.
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