Minnesota’s Secure Choice program is set to reshape retirement savings requirements for employers across Minneapolis, St. Paul, Rochester, Bloomington, Brooklyn Park, Plymouth, and Duluth. If your business has 5 or more employees and doesn’t already offer a qualifying retirement plan, 2026 is the year you need to act. Here’s everything Minnesota employers need to know.
What Is Minnesota Secure Choice?
Minnesota Secure Choice is a state-facilitated retirement savings program that requires covered employers to either auto-enroll employees in the state program or offer an equivalent private plan. The program is modeled after successful IRA-based mandates in Oregon, Illinois, and Colorado, and is designed to extend retirement savings access to the roughly 1.2 million Minnesota workers currently without a workplace retirement plan.
→ Full Minnesota Secure Choice details and enrollment links
Who Is Covered by Minnesota Secure Choice?
- Minnesota employers with 5 or more employees
- Employers who do not currently offer a qualifying plan (401(k), 403(b), SEP-IRA, SIMPLE IRA, pension)
- Applies to businesses in Minneapolis, St. Paul, Rochester, Bloomington, Brooklyn Park, Plymouth, Duluth, and all Minnesota communities
How the Minnesota Secure Choice Program Works
Under Secure Choice, employees are automatically enrolled in a Roth IRA at a default contribution rate. Employees retain the right to change their contribution rate or opt out entirely. Employer obligations include:
- Registering your business with the Secure Choice program
- Notifying and enrolling eligible employees
- Setting up payroll deductions and submitting contributions
- Enrolling new eligible employees within 30 days of hire
Employers do not make their own contributions under the state program — but they also miss out on the significant tax benefits of offering a private plan.
Penalties for Non-Compliance
Minnesota employers who fail to comply face enforcement exposure — Minnesota has not yet finalized penalty amounts. Whatever the final amount, exposure will accrue — year after year, until you come into compliance. Enforcement timelines are tightening now that the 2026 phased registration deadlines are taking effect.
SECURE 2.0 Federal Tax Credits — Don’t Leave Money on the Table
Employers who start a new qualifying retirement plan can claim:
- Up to $5,000/year for 3 years (startup cost credit)
- Up to $1,000/employee/year for 5 years (employer contribution credit — for employers with ≤50 employees)
These credits can offset most or all of your first-year costs. Use our free calculator to estimate your exact credit.
The Smart Play: Private 401(k) vs. Secure Choice
Here’s what many Minnesota employers don’t realize: starting a private 401(k) in 2025 or 2026 can actually cost less than enrolling in the state program — when you factor in SECURE 2.0 federal tax credits.
Example: A Rochester manufacturer with 18 employees starting a new 401(k) plan could qualify for:
- Up to $5,000/year × 3 years = $15,000 in startup credits
- Up to $1,000/employee/year × 5 years = up to $63,000 in employer contribution credits over five years (the credit rate phases down after year two) (for employers with ≤50 employees)
The 401(k) also gives employees higher contribution limits ($23,500 vs. $7,000 for a Roth IRA), stronger plan investment options, and a more attractive benefits package for recruiting talent in the competitive Minneapolis-St. Paul market.
Use our free SECURE 2.0 calculator to run your numbers.
2026 Deadlines and Compliance Phases
Minnesota Secure Choice is rolling out in phases based on employer size. Larger employers (50+ employees) face earlier registration deadlines; smaller employers are in subsequent waves. If you have 5+ employees and no retirement plan, don’t wait for a notice — check your compliance status now.
See our Minnesota state page for the latest deadlines and registration portal access.
Steps for Minnesota Employers to Comply
- Confirm: Do you have 5+ employees and no qualifying plan?
- Decide: State program (Secure Choice) or private 401(k)/SIMPLE IRA?
- If going private: calculate your SECURE 2.0 tax credits before you decide
- Set up your chosen plan and payroll integration
- Notify employees and enroll them within required timeframes
- Document everything for compliance records
Ready to Get Compliant — and Get Paid to Do It?
Get your free compliance audit at retirementmandate.com. We’ll review your current setup, calculate your federal tax credits, and build a step-by-step compliance plan — at no cost.
Minnesota’s Secure Choice mandate is real, the deadlines are approaching fast, and the penalties for ignoring it add up quickly. But the opportunity is just as real: SECURE 2.0 credits mean many Minnesota employers can launch a better retirement plan at a substantially reduced net cost. Whether you’re in Minneapolis, Duluth, or Plymouth — act now. Get the full details on our Minnesota page.
This content is for educational purposes only and does not constitute financial, tax, legal, or investment advice. State requirements and penalties are subject to change. Consult a qualified professional before making compliance decisions.
