Vermont’s state retirement savings program
Vermont law requires that businesses meeting specific requirements need to either offer the state-facilitated retirement plan or a qualified alternative. Now is the time to act to avoid penalties.If you or your client is operating a business in Vermont, the ePlan Services team is here to answer your questions and help you set up a 401(k) plan in 24 hours.
What to know about VermontSaves
VermontSaves is Vermont’s retirement savings program. Here are the basics:
- Program Status: Open for enrollment
- Employer Participation: Mandatory
- Program Type: Roth IRA
- Penalty: $20 per employee (until September 30, 2026); $75 per employee (starting on or after October 1, 2026)
- Employer Requirements: Employers that have been in business for at least two years, have two or more employees, and do not offer a qualified retirement plan
- State Website: VermontSavesopens in a new tab
ePlan Services vs. Vermont
See how Vermont’s retirement savings program measures up against an ePlan Services 401(k)
Potential for up to $5,000 start up credit and $500 automatic enrollment credit for 3 years, plus available employer contribution credit of up to $1,000 per employee
IRAs do not qualify
Yes
Matching is not permitted
Yes
Individual accounts
Yes
Restricted options
$24,500
+ $8,000 (age 50-59, 64+) or $11,250 (age 60-63) in catch-up contributions
$7,500
+ $1,100 in catch-up contributions (age 50+)
Meet your regional wholesaler
Quick and easy plan setup
Plan setup can be easily completed online so you can focus on helping more clients.
Higher contribution rates
401(k) retirement accounts have higher contribution limits than IRAs—putting more in your clients’ pockets down the road.
Potential tax breaks
SECURE Act offers tax credits to employers who start plans, add an auto-enrollment feature, or make contributions.
A Financial Advisor’s Guide to State-Administered Retirement Plans
Millions of private-sector workers across the United States do not have access to a retirement savings account and, to address this crisis, several states have implemented state-administered retirement plans. What does this mean for you? It means that, as a trusted financial advisor, your clients are going to need your help selecting and enrolling in a retirement plan that will suit the needs of their business.
