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Can I offer a 401(k) plan to my employees in Vermont? What are the requirements?

Offering Retirement Plans to Employees in Vermont

If you are a business owner in Vermont, you can offer a retirement savings plan to your employees. However, Vermont does not require employers to offer retirement plans to their employees [1].

401(k) Plans in Vermont

A 401(k) plan is a type of retirement savings plan that is commonly offered by employers in the United States. While Vermont does not have any specific requirements for offering a 401(k) plan, employers who offer a 401(k) plan must comply with federal regulations set forth by the Employee Retirement Income Security Act (ERISA) [1].

Vermont State Retirement System

The Vermont State Employees’ Retirement System (VSERS) is the public pension plan provided by the State of Vermont for State employees. It is a defined benefit plan, which means that employees and the State make contributions to the trust fund. The system is governed by Vermont Statute Title 3, Chapter 16 [3][5].

Deferred Compensation Plan

The Deferred Compensation Plan is a savings and investment plan for retirement that is overseen by the Vermont State Retirement System. All contributions can be made on a pre-tax or after-tax basis depending upon the accounts you elect. Participation in the Deferred Compensation plan is voluntary [4][5].

Conclusion

While Vermont does not have any specific requirements for offering a 401(k) plan, employers who offer a 401(k) plan must comply with federal regulations set forth by the Employee Retirement Income Security Act (ERISA). Additionally, the Vermont State Employees’ Retirement System (VSERS) is the public pension plan provided by the State of Vermont for State employees, and the Deferred Compensation Plan is a voluntary savings and investment plan for retirement overseen by the Vermont State Retirement System [1][3][4][5].

Source(s):
Jurisdiction

Vermont