UPDATED FOR 2026 · 17 STATES · STATUTE-VERIFIED

Retirement mandates for law firms, handled.

Associates, paralegals, and staff count toward the mandate — and partners deserve better limits than a state IRA. Both handled.

Check your exposure Book a free 15-min audit

Verified to state statutes 17 states covered No obligation

Two attorneys reviewing a document in a bright law office with bookshelves

Compliant & covered17 states · 2026

Example exposure · VA · 21 staff

$4,200/yrCovered*

Do nothing → penalty · your plan → covered*

// why law firms get caught out

Where the mandate bites businesses like yours.

Your staff count

Associates, paralegals, and administrative staff are W-2 employees that count toward the threshold.

Partners want real limits

Partners want tax-advantaged, higher-limit retirement options — the state IRA caps out at IRA levels.

Benefits win associates

A real 401(k) with a match helps you recruit and keep associates in a competitive market.

Flexibility the state can't match

Profit-sharing, vesting schedules, safe-harbor design — a firm 401(k) flexes where the auto-IRA can't.

// 60-second check

What does your state actually require?

Pick your state and headcount for your real exposure — data verified against each state's own statute.

Your state

Number of employees

Informational only, not legal or tax advice.

Annual exposure · Virginia

$4,200

RetirePath Virginia · applies at 5+ employees

Get your full breakdown + a private-plan savings estimate:

// state plan vs your own

You can comply two ways. Only one builds anything.

The state auto-IRA

Compliance, nothing else

No employer match allowed
Low Roth-IRA contribution limits
One-size-fits-all investments
No tax credits for your business

RECOMMENDED

Your own 401(k)

Compliant — and working for you

Match if and when you want
Far higher contribution limits
SECURE 2.0 credits offset setup
A real recruiting & retention perk

// the part nobody tells you

Credits can offset much of the startup cost for eligible employers.

Under SECURE 2.0, small employers starting a plan can claim credits toward setup and contributions. The amount depends on your size and phases out over the first years — we model your real number, not a headline.

See what you'd qualify for

$5,000/yr

Startup credit toward administration costs, up to three years.

$1,000/emp

Toward employer contributions for smaller employers, phasing down as you grow.

Low net cost

Credits can offset much of the startup cost for eligible employers. We model your real net.

// law firms faq

Asked by owners like you.

Do equity partners count toward the employee threshold?

Generally no — partners compensated on K-1 typically aren't W-2 employees. Associates, paralegals, and staff are. Entity structure matters, so we confirm your exact count under your state's definition.

Can the firm keep a separate partner retirement arrangement?

Yes — but the mandate is about covering eligible employees. A qualifying firm plan can cover staff and give partners far higher contribution room at the same time; we design both sides together.

Is the state auto-IRA ever the right answer for a firm?

Sometimes, for very small firms wanting zero administration. But for most firms the recruiting value and partner limits of a 401(k) — with SECURE 2.0 credits offsetting setup — argue the other way. We show you both with real numbers.

Find out where your law firms business stands.

Book a free 15-minute compliance audit. We'll show your exact requirement, your real exposure, and whether your own plan saves you money.

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