🔴 Enforcing Now

Maine Retirement Mandate:
MERIT

Maine's MERIT (Maine Retirement Investment Trust) program requires employers with 5+ employees to facilitate retirement savings. Monthly penalties make non-compliance expensive fast.

Get Your Free Maine Compliance Audit →
HomeAll States › Maine
5+
Employee Threshold
Active Now
Enforcement Status
⚠️ Penalty: Up to $20/employee/month

What is MERIT?

MERIT is Maine's state-mandated retirement savings program. Maine's MERIT (Maine Retirement Investment Trust) program requires employers with 5+ employees to facilitate retirement savings. Monthly penalties make non-compliance expensive fast.

Employers who already offer a qualifying private retirement plan — such as a 401(k), SEP IRA, or SIMPLE IRA — are exempt from MERIT requirements.

Learn more at the official state portal: https://www.meritsaves.com

How to Comply in Maine

Option 1 — Enroll in MERIT: Register through the state portal and facilitate payroll deductions. This fulfills the mandate but doesn't maximize tax savings.

Option 2 — Set up a private plan (recommended): A qualifying 401(k), SEP IRA, or SIMPLE IRA exempts you from the mandate AND qualifies you for up to $15,000 in SECURE 2.0 Act tax credits over 3 years.

Key difference: A private plan belongs to your company. CalSavers/state plans do not. Private plans also attract and retain better employees.

SECURE 2.0 Tax Credits for Maine Employers

The SECURE 2.0 Act (2023) gives small business owners massive tax credits for starting a retirement plan:

Up to $5,000/year for 3 years for plan startup costs

$1,000 per employee/year for employer contributions (up to 50 employees)

For many Maine small businesses, this makes a private 401(k) free or nearly free — while exempting you from MERIT requirements entirely.

Serving Maine Employers in:

PortlandLewistonBangorSouth PortlandAuburnBiddefordSanfordAugustaScarborough

Frequently Asked Questions — Maine Retirement Mandate

What is Maine's MERIT program?

MERIT (Maine Retirement Investment Trust) is Maine's state-mandated retirement savings program for employers with 5+ employees.

What is the MERIT penalty in Maine?

Up to $20 per employee per month for non-compliance — that's $240/employee/year, higher than many other states.

How do Maine businesses avoid MERIT?

Offer a qualifying retirement plan. SECURE 2.0 Act credits can offset up to $5,000/year in startup costs.

Related Articles

Free Maine Compliance Audit

Find out exactly what MERIT means for your business — and whether a private plan saves you more money than enrolling in the state program.

Book Your Free 15-Minute Audit →