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UPDATED SEPTEMBER 2026 · STATUTE-VERIFIED

Maine Retirement Mandate: MERIT

MERIT is enforcing now. It applies to Maine employers with 5+ employees that do not offer a qualifying retirement plan. Penalty: Up to $100 / employee / yr (escalating). Already passed: All employers notified through 2026 (2026-06-30) — unregistered employers should register or certify an exemption now.

MERITENFORCING
State program
5+ employees
Employee threshold
Up to $100 / employee / yr (escalating)
Non-compliance penalty
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What does Maine actually require?

Set your headcount for your real exposure — data verified against the statute.

Informational only, not legal or tax advice.

Annual exposure · Maine
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Get your full breakdown + a private-plan savings estimate:

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MERIT at a glance.

Who is covered

MERIT covers Maine employers with 5+ employees that do not offer a qualifying retirement plan. Counting rule: Headcount as of the date the employer certifies an exemption or onboards (MRSB Rule Ch. 101); penalties use Maine DOL employee counts. Must have been in business during both the current and the preceding calendar year.

Penalty and enforcement

Escalating: $20 per employee (2025-07-01 to 2026-06-30); $50 per employee (2026-07-01 to 2027-06-30); $100 per employee (on/after 2027-07-01). Penalties are being assessed now.

Deadlines

Already passed: All employers notified through 2026 (2026-06-30) — unregistered employers should register or certify an exemption now. Newly eligible employers: June 30 of the notice year.

Source

5 M.R.S. §171, §173(3), §173(4)(A); MRSB Rule Ch. 101 · Official program: meritsaves.com · Verified 2026-09-17.

// state plan vs your own

You can comply two ways. Only one builds anything.

The state auto-IRA

Compliance, nothing else
  • No employer match allowed
  • Low Roth-IRA contribution limits
  • One-size-fits-all investments
  • No tax credits for your business
RECOMMENDED

Your own 401(k)

Compliant — and working for you
  • Match if and when you want
  • Far higher contribution limits
  • SECURE 2.0 credits offset setup
  • A real recruiting & retention perk
// frequently asked

Asked by employers here.

What is MERIT?

MERIT is Maine's state-facilitated retirement savings program. It is enforcing now. Program: https://meritsaves.com.

Who must comply with MERIT?

MERIT covers Maine employers with 5+ employees that do not offer a qualifying retirement plan. Counting rule: Headcount as of the date the employer certifies an exemption or onboards (MRSB Rule Ch. 101); penalties use Maine DOL employee counts. Must have been in business during both the current and the preceding calendar year.

What is the MERIT penalty?

Escalating: $20 per employee (2025-07-01 to 2026-06-30); $50 per employee (2026-07-01 to 2027-06-30); $100 per employee (on/after 2027-07-01). Penalties are being assessed now.

When are the MERIT deadlines?

Already passed: All employers notified through 2026 (2026-06-30) — unregistered employers should register or certify an exemption now. Newly eligible employers: June 30 of the notice year.

How do Maine employers become exempt?

Exempt if a plan under 401(a)/401(k), 403(a)/403(b), SEP (408(k)), SIMPLE (408(p)) or 457(b) was offered in the current or two preceding years; certification required. A private 401(k) or SIMPLE IRA satisfies the mandate and may qualify for SECURE 2.0 startup credits.

Find out where you stand — before the state does.

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