Your Contributions Can Add Up

RetirePath Virginia is an automatic-enrollment, state-facilitated retirement savings program. Contributions default to a Roth individual retirement account (IRA). Savers have the option to recharacterize their contributions to a traditional IRA.

The total amount you can save must be within the federal government’s annual contribution limits for IRAs and cannot exceed your earned income for the year. In 2025, the maximum annual contribution is $7,000, with an additional $1,000 catch-up contribution allowed for individuals age 50 and older, bringing their total to $8,000.

In addition to the general contribution limit that applies to both Roth and traditional IRAs, your Roth IRA contribution may be limited based on your filing status and income. If you file taxes as a single person and your Modified Adjusted Gross Income (MAGI) is under $150,000 in 2025, or if you are married and file jointly with a MAGI under $236,000 in 2025, you can contribute the maximum amount to your Roth IRA. Visit the Internal Revenue Service (IRS) website for more details.

The default savings rate for a RetirePath Virginia account is 5% of your total pay. It’s deducted from your paycheck after taxes have been taken out.

After your account is open more than 180 days, your RetirePath savings rate will increase by 1% each January 1. The rate will increase each year until you’re saving 10% of your total pay. You can opt out of auto escalation at any time.

At any time, adjust your RetirePath savings rate to as little as 1% or as much as you want, within Internal Revenue Service (IRS) limits. Contributions are made post-tax, and your employer can deduct contributions only from the amount available in your paycheck after other payroll deductions required by law have been made.