Beginning in 2026, Minnesota employers with five or more employees who do not currently offer a retirement plan will be required to participate in the Minnesota Secure Choice Retirement Program. This state-sponsored program enables employers to offer a retirement savings option with minimal administrative effort and no cost to the employer.
Employer Responsibilities
- Register for and implement the program (see implementation timeline below).
- Distribute program-provided materials to employees.
- Deduct employee contributions from paychecks and remit them to the program.
- Report contributions on employee W-2 forms, based on the type of retirement account selected by the employee.
Implementation Timeline
The program is expected to launch between January 1, 2026, and March 30, 2026, and will be rolled out in phases based on employer size. The following timeline outlines when employers should begin deductions:
| Employer Size | Enrollment Window |
| 100+ employees | First 6 months |
| 50–99 employees | Months 7–12 |
| 25–49 employees | Months 3–18 |
| 10–24 employees | Months 19–24 |
| 5–9 employees | Months 25–30 |
The program is designed to integrate easily with most payroll systems. There is no cost to employers, and employer contributions are not permitted.
Employees
- Participation is voluntary, employees may opt out.
- Employees may choose between a Roth IRA or a Traditional IRA accounts.
- Contribution amounts can be adjusted at any time. The default initial contribution rate is proposed at 5%.
Stay Informed and Prepare Early
The Minnesota Secure Choice Retirement Program represents a significant shift for employers who do not currently offer retirement benefits. While the program is designed to be low-effort and cost-free for employers, it’s important to understand the requirements and timeline to ensure a smooth implementation.
We recommend reviewing your current retirement benefit offerings and payroll capabilities ahead of the rollout. Staying proactive will help your organization remain compliant and provide employees with a valuable opportunity to save for their future.
For official details, enrollment guidelines, and ongoing updates, please visit:
If you have questions about how this may impact your business or would like to discuss your retirement plan options, please contact our team. We’re here to help you navigate this new requirement with confidence.
