Retirement Mandate Compliance for Law Firms | RetirementMandate.com
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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.

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/yr≈ $0*
Do nothing → penalty · your plan → covered*
17
States tracked
60s
To check your exposure
$0
Setup with credits*
100%
Statute-verified data
// 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.

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

Federal credits can cover most of your startup cost.

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.
$0down
Most eligible businesses can start for little to nothing in year one.
// 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.

100% freeNo obligation15 minutes

Get your free audit

Takes 30 seconds. We'll reach out to schedule.
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