Minnesota’s Secure Choice Retirement Program requires employers doing business in Minnesota to either enroll workers in the state’s payroll‑deduction IRA program or, if the employer already offers a qualifying retirement plan (e.g., a 401(k), 403(b), SEP, or SIMPLE), to certify its exemption from that requirement by the end of the employer’s assigned registration window. All employers with 100+ covered employees must set up a Minnesota Secure Choice Employer Account by June 30, 2026, and either enroll their workers in the state’s payroll‑deduction IRA program or certify their exemption by the required date. Noncompliant employers face graduated fines of up to $500 per employee after an initial warning period.
Who Is a “Covered Employer”?
The Secure Choice Retirement Program applies to any private-sector employer that has been doing business in Minnesota for at least 12 months and employs five or more covered employees receiving Minnesota taxable wages. Temporary or seasonal employees expected to work 180 days or less are excluded from the count.
Exempt Employers Must Certify Exemption
Employers that currently sponsor or contribute to a qualifying retirement savings plan, including a 401(k), 403(b), SEP, SIMPLE, pension, or profit-sharing plan, are exempt from enrolling their employees in the state’s payroll-deduction IRA program, but they still must file a certification of their exemption through the portal using their Federal Employer Identification Number (FEIN) or the unique identifier provided by the state.
Employer Registration Windows
A covered employer’s registration window is based on their number of covered employees:
| Number of Covered Employees | Registration Window |
| 100 or more | April 1, 2026-June 30, 2026 |
| 50 to 99 | July 1, 2026-December 31, 2026 |
| 25 to 49 | January 1, 2027-June 30, 2027 |
| 10 to 24 | July 1, 2027-December 31, 2027 |
| 5 to 9 | January 1, 2028-June 30, 2028 |
How It Works
For employers that are not exempt, the obligation is to facilitate, not fund, employee savings. Responsibilities are limited to processing auto-enrollment, making payroll deductions, and remitting contributions. Employees default into a 5% Roth IRA contribution, auto-escalating 1% per year up to a maximum of 8%, with the option to switch to a traditional IRA or opt out entirely. Accounts are 100% vested and portable.
What Employers Should Do Now
- Employers with a qualifying retirement plan: should certify their exemption through the portal by the end of the registration window applicable to them (which is based on their number of covered employees).
- Employers without a qualifying retirement plan: must choose between enrolling employees in Secure Choice (coordinating payroll deduction workflows) or adopting a qualifying retirement plan and then certifying their exemption by the end of their registration window.
Either way, the time to act is now: The largest employers are days away from the June 30, 2026, registration deadline, and smaller employers would be well served by planning now how they will comply with this new requirement.
If you have questions about the Minnesota Secure Choice Retirement Program (or state-mandated retirement programs more broadly), please contact a member of the Faegre Drinker benefits and executive compensation team.
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