MERIT: Maine Retirement Mandate for Employers

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.

Escalating: July 1, 2025 to June 30, 2026: $20 per employee; July 1, 2026 to June 30, 2027: $50 per employee; on/after July 1, 2027: $100 per employee. Penalties are being assessed now.

• Passed: All employers notified through 2026, June 30, 2026

Newly eligible employers: June 30 of the notice year.

If your group's date has passed and you have not registered, register or certify an exemption now.

5 M.R.S. §171, §173(3), §173(4)(A); MRSB Rule Ch. 101. Official program: MERIT official site. Verified September 17, 2026.

You must take part if your business has 5 or more employees in Maine and you do not offer a qualified retirement plan, such as a 401(k) or SIMPLE IRA. The section above explains exactly how Maine counts your employees.

Every announced MERIT deadline has passed. If you have not registered or certified an exemption, do it now.

Fines rise the longer you stay out of compliance, reaching $100 per employee per year at the top tier. Maine is already sending penalty notices.

Offer your own qualified retirement plan and certify it with MERIT. What counts in Maine: 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.

MERIT spares you from running a plan, but it allows no employer match and caps each saver at the IRA limit ($7,500 for 2026). A 401(k) allows up to $24,500 per employee for 2026, lets you add a match, and credits can offset much of the startup cost for eligible employers.