If you’re an employer in Minnesota, you might have heard of the Minnesota Secure Choice Retirement Program.

If you have more than five employees, you will be required to either provide a qualifying retirement plan benefit to your employees or participate in this program.

Come the first quarter of 2026, many small business owners and operators will be out of compliance. If you already have a retirement plan benefit in place, make sure to schedule a meeting with us, or your plan’s administrator, to confirm it meets the State’s requirements.

If you do not have a retirement plan benefit in place, your options are to participate in the Minnesota Secure Choice Retirement Program (hereto referred to as “The Program”), or set up a plan such as a Simple, SEP, IRA, or 401K.

This may provide you an opportunity to have more control over the plan option(s) you offer your employees, and could make you a more competitive option once all qualifying employers are compelled to offer The Program or other retirement plan benefits.

Our attorneys are ready to meet to discuss this or other changes in employment laws, and/or provide an introduction to one of the financial advisors and plan administrators we work with to help set up a plan for you. Contact us here.

According to MN.Gov:

Employers are required to transmit contributions deducted from each employee’s paycheck to the Program for deposit in an Individual Retirement Account (IRA) established for each employee.

Contributions will be invested at the direction of the employee into investment funds offered with the oversight of the Minnesota State Board of Investment.

Here are some questions you may have about the Program:

Can I Opt Out of the Program?

Employers who have five or more employees cannot opt out of the Program. Individual employees are allowed to opt out of the Program.

What will I be responsible for?

Employers will be responsible for deducting contributions from their employees’ paychecks and remitting them to the Program. There will be multiple ways to do so and the Program will help you get started.

What will it cost me?

Employers are anticipated to not have any costs other than those associated with remitting deductions to the recordkeeper, and distributing provided information to employees.

Where do the deductions go?

Deductions will be deposited into a Roth IRA, unless the employee elects to contribute to a traditional IRA on a pre-tax basis.

Can I match employee contributions?

No, employer contributions are not permitted.

Can employees decide how much they contribute or are they required to contribute a certain amount?

Employees will be able to change their contributions at any time. The Board of Directors proposes a contribution of 5% at first, with an automatic yearly increase of 1% until it reaches 8%.

When will the Program be implemented?

The Program is anticipated to be available between January 1, 2026 and March 30, 2026. After the program becomes available, employers will have time to enroll and begin payroll deduction contributions. There will be a phase-in period based on how many employees you have.

See the Implementation Timeline to see when your phase is.

What if I have employees living in other states?

The Program will need to be offered to employees even if they live in another state, though the employees may opt out if they prefer.

If you have questions about this or any other employment law in Minnesota, Contact us here. We’re experts in employment law so you don’t have to be.