In 2023, Governor Phil Scott signed a new retirement savings bill, the Vermont Saves Program (“VT Saves”). VT Saves gives the Office of the State Treasurer the ability to administer individual retirement accounts (“IRA”) for employees. This IRA is available to state employees as well as employees in the private sector whose employers do not offer a qualified retirement program.
What is VT Saves?
The VT Saves Program is a state-run Roth IRA made available to the following individuals:
- Vermont workers whose employers do not offer a workplace retirement plan.
- Self-employed individuals.
- Others who want an easy way to save in an IRA and don’t have access to a retirement plan.
This plan is at no cost to employers and requires very little time and administration. Qualified employers will need to register and provide their payroll information to VT Saves.
Who qualifies for VT Saves?
A company qualifies and must register for VT Saves if it has more than 5 employees, has been in business for two (2) years, and does not offer a qualified retirement plan.
An employee qualifies for VT Saves if they are over the age of eighteen (18) and have worked at least five hundred (500) hours for a qualified Vermont employer.
What should qualified employers do?
Employers who do not offer a retirement plan must register for the program and provide their payroll information to the VT Saves portal to avoid fines and penalties. Payroll information is required so VT Saves can be accessed by employees who may enroll and make contributions directly from their paycheck. Companies will have to go to the Employer Portal (below) and verify their identity with their EIN and an Access Code that was sent to them by mail or e-mail.
After receiving the payroll information, VT Saves will reach out directly to employees via mail or e-mail. If an employee has questions regarding VT Saves, they should be directed to the VT Saves website for questions and guidance. Employee participation is voluntary, and they may opt-out or re-enroll at any time.
Employers are not required nor permitted to match contributions, nor do they have a fiduciary responsibility to employees regarding VT Saves.
Do employers who already have a retirement plan have to take any action?
Yes. Employers who offer a retirement plan to their employees must manually verify their exemption. Employers should have received an Access Code sent to them by mail or e-mail. They should use this code, along with their EIN, in the Employer Portal below to certify their exemption. This needs to be done by March 1, 2025, to avoid possible fines and penalties. Here at Gravel & Shea, we are monitoring the program and are happy to answer questions regarding registration and any updates regarding VT Saves.
Important Links:
- Help Desk Number: (844)599-4911
- VT Saves Website: https://www.vtsaves.vermont.gov/
- VT Saves Employer FAQ: https://vermontsaves.zendesk.com/hc/en-us
- VT Saves Employer Portal: https://vtsaves.vestwell.com/register/employer
Please contact Heather Hammond (hhammond@gravelshea.com) at Gravel & Shea PC if you have questions or would like assistance.
