Live mandate
Does my Minnesota business have to offer a retirement plan?
Short answer
Yes, if you have 5 or more covered employees in Minnesota and haven’t offered a retirement plan in the past 12 months. You either register for Minnesota Secure Choice or certify that you offer a plan such as a 401(k). Deadlines depend on size, from December 31, 2026 for 50 to 99 employees to June 30, 2028 for 5 to 9.
Who must comply
You’re covered if you do business in Minnesota, have 5 or more covered employees and haven’t offered or contributed to a retirement plan in the past 12 months. Workers under 18 and temporary or seasonal staff hired for 180 days or less don’t count.
Deadlines
Employers with 100 or more employees were due June 30, 2026. The remaining deadlines are December 31, 2026 for 50 to 99 employees, June 30, 2027 for 25 to 49, December 31, 2027 for 10 to 24, and June 30, 2028 for 5 to 9.
Penalties
Minnesota sends written warnings for the first two years. After that, penalties are per covered employee: $100 at the second anniversary of your enrollment window (up to $4,000), $200 at the third (up to $6,000), $300 at the fourth and $500 every year after. Fix the problem within 30 days of a notice and you avoid the penalty. Keeping employee contributions without sending them in carries separate penalties.
How to get exempt
If you offer a qualified retirement plan such as a 401(k), certify your exemption on the Minnesota Secure Choice employer portal with the Access Code from your notice. Because the law looks back 12 months, a business that started a plan recently may want to confirm its status with the program.
Minnesota Secure Choice or a 401(k)?
Minnesota Secure Choice accounts are Roth IRAs by default, 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. Minnesota Secure Choice doesn’t allow employer contributions, so you can’t add a match; a 401(k) can include one. Minnesota Secure Choice costs employers nothing to run; savers pay the account and fund fees. New savers start at 5% of pay, rising 1% each January to 8% unless they change it.
Sources
Minnesota Secure Choice: Program details (employers) (securechoice.mn.gov) Minnesota Secure Choice: Contributions (savers) (securechoice.mn.gov) Minnesota Office of the Revisor of Statutes: Minn. Stat. §187.03 Definitions (revisor.mn.gov) Minnesota Office of the Revisor of Statutes: Minn. Stat. §187.12 Penalties for noncompliance (revisor.mn.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) 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.
