Live mandate
Does my Maine business have to offer a retirement plan?
Short answer
Yes, if your business is at least 2 years old, has 5 or more employees and doesn’t offer a retirement plan such as a 401(k). You either register for MERIT, the Maine Retirement Investment Trust, or certify that you already offer a plan. The maximum penalty is $50 per covered employee now and rises to $100 on July 1, 2027.
Who must comply
MERIT applies to Maine employers that have been in business for at least 2 years, have 5 or more employees, and don't offer a qualified retirement plan. Employers with fewer than 5 employees may offer MERIT but don't have to.
Deadlines
The first deadlines were in 2024: April 30 for 15 or more employees and June 30 for 5 to 14. Newly eligible businesses get a notice with their date. The 2027 date isn’t published yet (2026: June 30). Penalties apply from July 1, 2025 to employers that missed their deadline.
Penalties
Maine sets a maximum penalty per covered employee for each calendar year, or part of a year, an employee is left unenrolled: $20 from July 1, 2025 to June 30, 2026, $50 from July 1, 2026 to June 30, 2027, and $100 on or after July 1, 2027. Each year an employee is left out draws a new penalty, and the Maine Attorney General handles enforcement and collection.
How to get exempt
If you offer a qualified retirement plan such as a 401(k), certify your exemption on the MERIT employer portal with the Access Code from your notice. Employers with fewer than 5 employees use the same step.
MERIT or a 401(k)?
MERIT accounts are Roth IRAs, so each saver is held to the IRA limit: $7,500 a year in 2026 and 2027, or $8,600 at 50 or older, across all their IRAs. Higher earners can be phased out of Roth contributions altogether, starting at $153,000 of income for single filers in 2026 and $158,000 in 2027. A 401(k) leaves far more room: employees can defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. MERIT doesn’t allow employer contributions, so you can’t add a match; a 401(k) can include one. MERIT costs employers nothing to run; savers pay the account and fund fees. New savers start at 5% of pay, rising 1% each January to 10% unless they change it.
Sources
MERIT (Maine Retirement Investment Trust): Program details (employers) (meritsaves.com) MERIT: Contributions (savers) (meritsaves.com) Maine Legislature: 5 M.R.S. Chapter 7-A, §173(4) Penalties (legislature.maine.gov) MERIT: MERIT Enforcement: What Maine Businesses Need to Know (2026-06-23) (meritsaves.org) Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov) Internal Revenue Service: COLA increases for dollar limitations on benefits and contributions (irs.gov) Internal Revenue Service: 401(k) plan overview (irs.gov) Georgetown University Center for Retirement Initiatives: States: 2026 state program status (as of November 6, 2026) (cri.georgetown.edu)
This page is general information, not legal or tax advice. Confirm current rules with the state program before acting.
