Minnesota’s state retirement savings program
Minnesota’s state retirement mandate is here and will continue to expand. Under state law, employers with 100 or more employees must offer the state-facilitated retirement program or a qualified alternative.Between late 2026 and mid 2028, the mandate will scale in phases to include businesses with fewer employees. Don’t wait to prepare! The ePlan Services team is here to help you set up a retirement plan in just 24 hours.
What to know about Minnesota Secure Choice
Minnesota Secure Choice is Minnesota’s retirement savings program. Here are the basics:
- Program Status: Open for enrollment
- Employer Participation: Mandatory
- Program Type: Roth IRA (Traditional pre-tax option available)
- Penalty: $100/employee up to $4,000 (24 months after applicable deadline); $200/employee up to $6,000 (36 mo.); $300/employee (48 months); $500/employee (each year thereafter)
- Employer Requirements: Employers that have been in business for at least 12 months, have five or more employees, and have not sponsored a qualified retirement plan in the preceding 12 months
- State Website: Minnesota Secure Choiceopens in a new tab
ePlan Services vs. Minnesota Secure Choice
See how Minnesota’s retirement savings program measures up against an ePlan Services 401(k)
Potential for up to $5,000 start up credit and $500 automatic enrollment credit for 3 years, plus available employer contribution credit of up to $1,000 per employee
IRAs do not qualify
Yes
Matching is not permitted
Yes
Individual accounts
Yes
Restricted options
$24,500
+ $8,000 (age 50-59, 64+) or $11,250 (age 60-63) in catch-up contributions
$7,500
+ $1,100 in catch-up contributions (age 50+)
Meet your regional wholesaler
Quick and easy plan setup
Plan setup can be easily completed online so you can focus on helping more clients.
Higher contribution rates
401(k) retirement accounts have higher contribution limits than IRAs—putting more in your clients’ pockets down the road.
Potential tax breaks
SECURE Act offers tax credits to employers who start plans, add an auto-enrollment feature, or make contributions.
A Financial Advisor’s Guide to State-Administered Retirement Plans
Millions of private-sector workers across the United States do not have access to a retirement savings account and, to address this crisis, several states have implemented state-administered retirement plans. What does this mean for you? It means that, as a trusted financial advisor, your clients are going to need your help selecting and enrolling in a retirement plan that will suit the needs of their business.
