Vermont Saves: does your business have to register, and by when?

Since February 2026, Vermont employers with two or more W-2 employees must register with Vermont Saves unless they already offer a qualified retirement plan.

Every deadline the state has listed has passed; the most recent was June 30, 2026, for newly eligible employers.

The Treasurer sets each employer's deadline in its registration notice, at least 30 days after the first notice. If you already offer a 401(k), you certify an exemption instead.

In forceVermont Saves

Who has to do this?

Under Vermont's retirement savings law (3 V.S.A. chapter 18) and the Vermont Saves program rule6, a Vermont employer is covered when all of these are true:

  • You employ two or more people at any time during a calendar year, counting part-time, seasonal and temporary employees. This took effect in February 2026; before then the threshold was five. 4
  • You have been in business for longer than just the current calendar year. 6
  • You don't offer a qualified workplace retirement plan. 1

The program's site says a business must have been operating for at least two years. The statute only leaves out a business that has existed for the current calendar year alone. If your business is new, check with Vermont Saves. 2

What a covered employer does: Register with Vermont Saves and facilitate payroll deductions for eligible employees, or certify an exemption. 1

When?

Every deadline the state has listed has passed. The rule is in force.

Vermont Saves deadlines
WhoDeadlineWhat is due
Employers with 5 or more employees (original threshold)March 1, 2025PassedRegister or certify an exemption 5
Newly eligible employersJune 30, 2026PassedRegister or certify an exemption 2

Each employer's registration date is set in its registration notice from the Treasurer, at least 30 days after the first notice. 4

What is Vermont Saves?

  • Employee accounts are Roth IRAs by default, with a traditional IRA option. 1
  • The default savings rate is 5% of gross pay, rising 1% each January up to 8%. Employees can change, pause or opt out at any time. 3
  • Employer contributions are not required or permitted. 6

What if we already have a 401(k)?

  • Employers that offer a 401(k), 403(b), SEP IRA, SIMPLE IRA or another qualified plan are not covered, but must certify the exemption if they get a notice. 4
  • Certify on the Vermont Saves website with the Access Code from your notice. 2

Your two options

Either one meets the requirement. The state program column is as the state describes it; which suits you depends on your business and your people.

Join Vermont SavesOffer your own plan
What you doRegister with Vermont Saves and facilitate payroll deductions for eligible employees, or certify an exemption. 1Certify an exemption online with the Access Code from your notice. 2
Where the money goesA Roth IRA for each employee, by default 1Accounts in the plan you choose, such as a 401(k)
Employer contributionsNot permitted 6Up to you, within the plan's design
Fee to the employerEmployers are not charged to facilitate Vermont Saves, according to the Treasurer. 1Set by the provider you choose

What does it cost?

The state program: Employers are not charged to facilitate Vermont Saves, according to the Treasurer. 1

Your own plan: the provider sets the fees, and federal tax credits can cover part of the cost of starting one. See 401(k) tax credits for small businesses and our pricing.

What happens if we don't?

  • For failing without reasonable cause, the penalty is up to $75 per covered employee for each calendar year or part of a year, from October 1, 2026. It was up to $20 before that. Paying a penalty does not satisfy the duty to register or certify. 6

General information, not legal advice. Rules change; confirm with the state program or your counsel.

Sources & Methodology
  1. Office of the Vermont State Treasurer, Vermont Saves. Read October 13, 2026.
  2. Office of the Vermont State Treasurer, Vermont Saves, Program details (employers). Read October 13, 2026.
  3. Office of the Vermont State Treasurer, Vermont Saves, Savers: contributions. Read October 13, 2026.
  4. Office of the Vermont State Treasurer, Vermont Saves program rule, page dated updated February 2026. Read October 13, 2026.
  5. Office of the Vermont State Treasurer, Treasurer Pieciak reminds eligible employers to enroll in Vermont Saves by March 1, page dated February 24, 2025. Read October 13, 2026.
  6. Vermont General Assembly, 3 V.S.A. chapter 18, Vermont Saves. Read October 13, 2026.

Each statement is paraphrased or quoted from the source it cites. A link to a state agency does not mean the agency endorses alooola. Last verified October 13, 2026.

Get help with Vermont Saves in three steps

  1. Tell us about your business: your state, how many people work for you, and any plan you have now.
  2. An advisor talks it through with you and sends a written proposal with the fees, so you can weigh it against the state program.
  3. If you choose your own plan, we coordinate the setup with you and your payroll provider. You then certify your exemption with the state.
Request a proposal

Prefer to talk? Call (484) 275-5525, Monday–Friday, 9am–5pm ET.