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UPDATED OCTOBER 2026 · STATUTE-VERIFIED

Minnesota Secure Choice: Minnesota Retirement Mandate for Employers

If your business has 5 or more employees in Minnesota and offers no qualified retirement plan, Minnesota Secure Choice requires you to register or certify an exemption. Upcoming deadlines: 50–99 employees by December 31, 2026; 25–49 employees by June 30, 2027; 10–24 employees by December 31, 2027; 5–9 employees by June 30, 2028.

Alex Kandelaki, CLU, ChFC, CPFA, CFEI
Updated October 4, 2026

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Minnesota Secure ChoiceACTIVE

State program

5+ employees

Employee threshold

Up to $500 / employee / yr (escalating)

Non-compliance penalty

// 60-second check

What does Minnesota actually require?

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Minnesota Secure Choice at a glance.

Who is covered

Minnesota Secure Choice covers Minnesota employers with 5+ employees that do not offer a qualifying retirement plan. Counting rule: Five or more covered employees (18+, full- or part-time); seasonal or temporary workers under 180 days are excluded. The program uses headcount data as of January 2026. No years-in-business test; employers not doing business in Minnesota in the preceding 12 months are not covered.

Penalty and enforcement

Escalating: 2nd anniversary of the enrollment window: $100 per employee (cap $4,000); 3rd anniversary: $200 per employee (cap $6,000); 4th anniversary: $300 per employee; each later anniversary: $500 per employee. The program has launched; enforcement has not begun.

Deadlines

Passed: 100+ employees, June 30, 2026
Upcoming: 50–99 employees, December 31, 2026
Upcoming: 25–49 employees, June 30, 2027
Upcoming: 10–24 employees, December 31, 2027
Upcoming: 5–9 employees, June 30, 2028

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

Source

Minn. Stat. §§187.03, 187.05, 187.07, 187.12 (Laws 2025 c.37; 2026 c.106). Official program: Minnesota Secure Choice official site. Verified September 17, 2026.

// 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 can offset setup costs
A real recruiting & retention perk

// frequently asked

Asked by employers here.

Who has to comply with Minnesota Secure Choice?

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

When do I have to register for Minnesota Secure Choice?

The next date to know is December 31, 2026: 50–99 employees. Earlier groups' dates have already passed; if yours is one of them, act now.

What is the penalty for not complying with Minnesota Secure Choice?

Fines rise the longer you stay out of compliance, reaching $500 per employee per year at the top tier. Enforcement has not started yet.

How do I get exempt from Minnesota Secure Choice?

Offer your own qualified retirement plan and certify it with Minnesota Secure Choice. What counts in Minnesota: a 401(a), 403(b), 457(b), SEP, SIMPLE, IRA-based or multiemployer plan sponsored in the preceding 12 months; certification required.

Minnesota Secure Choice or a 401(k): which is better for my business?

Minnesota Secure Choice 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.