Voluntary
Does my New Mexico business have to offer a retirement plan?
Short answer
No. New Mexico doesn’t require employers to offer a retirement plan. The state passed a voluntary Work and $ave IRA and a retirement plan marketplace, but neither has launched, and the State Treasurer’s Office lists the program as inactive.
Who must comply
No New Mexico employer is required to offer a plan or join a state program.
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.
Work and $ave IRA or a 401(k)?
Because New Mexico’s programs aren’t running, employers that want to offer retirement savings use a private plan such as a 401(k). A 401(k) lets employees defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50, compared with $7,500 a year for an IRA.
Sources
Georgetown University Center for Retirement Initiatives: States: 2026 state program status (as of November 6, 2026) (cri.georgetown.edu) Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov)
This page is general information, not legal or tax advice. Confirm current rules with the state program before acting.
