Voluntary
Does my Massachusetts business have to offer a retirement plan?
Short answer
No. Massachusetts doesn’t require private employers to offer a retirement plan. The state does run the CORE Plan, a voluntary 401(k) that nonprofits with 100 or fewer employees may be able to join.
Who must comply
No employer is required to offer a plan or join a state program in Massachusetts. A state auto-IRA mandate for larger employers has been proposed in the legislature but hasn’t become law. The CORE Plan is open only to eligible nonprofit organizations that choose to adopt it.
Deadlines
There are no state registration deadlines.
Penalties
There are no state penalties for not offering a retirement plan.
How to get exempt
No exemption is needed because there is no mandate. If you have employees in another state with a mandate, that state's rules still apply to them.
CORE Plan or a 401(k)?
The CORE Plan is a 401(k) run by the State Treasurer for nonprofits, so 401(k) limits apply: employees can defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. Unlike the state auto-IRAs, it lets employers contribute. For-profit employers would use a 401(k) or another plan from a private provider.
Sources
Commonwealth of Massachusetts: CORE Plan for Nonprofits (mass.gov) 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) 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.
