Minnesota is joining a growing number of states that require employers to help employees save for retirement. If you’re a small business owner who doesn’t currently offer a retirement plan, you’ll soon need to provide one for your employees.
The Minnesota Secure Choice Retirement Program is designed to make retirement savings more accessible. It gives employers a simple way to offer a retirement option without having to set up or manage their own plan.
We’re already helping clients navigate what this means in practice. Here’s what you need to know about the Minnesota Secure Choice Retirement Program, how it works, and the deadlines you’ll want to keep on your radar.
What is Minnesota Secure Choice?
The Minnesota Secure Choice Retirement Program is a state-facilitated retirement savings program for employees who don’t have access to a workplace plan.
In 2023, Minnesota passed legislation to address a major gap: a significant amount of workers don’t have access to retirement savings through their jobs. According to the Economic Innovation Group, a 2024 survey found that 42% of full-time working Americans and 79% of part-time employees lack access to a retirement plan. (These statistics exclude government and self-employed workers.) The law aims to close the retirement savings gap for about 718,000 Minnesota workers.
Instead of setting up a traditional 401(k), employers enroll in the program and facilitate payroll deductions into employee IRAs, typically Roth IRAs. The state handles the accounts, investments, and communication with employees.
The goal is simple: make saving for retirement automatic.
Who is Required to Participate?
Employers must participate if they:
- Have 5 or more employees in Minnesota
- Do not offer a qualified retirement plan, like a 401(k), SIMPLE IRA, etc
If that’s you, participation isn’t optional. You’re required by law to either:
- Enroll in Secure Choice, or
- Offer your own qualifying retirement plan and claim an exemption
How the Program Works, From an Employer Perspective
One of the biggest misconceptions is that this is not a traditional employer-sponsored retirement plan.
And one of the biggest concerns we hear is: “How much work is this going to add to my plate?” The answer is less than a traditional retirement plan, but it’s not zero.
Here’s what employers need to do:
1. Register for the Program
You’ll receive a notice from the state with instructions and an access code. You’ll need:
- Your EIN
- Basic company and payroll information
2. Add Employees
Once registered, upload your employee roster, including their emails.
The program then communicates directly with employees via email about their options. Employees makes any changes through the website themselves, as employers are not able to make changes in the system on the employee’s behalf.
3. Handle Payroll Deductions
After a 30-day opt-out window:
- Employees are automatically enrolled (unless they opt out)
- You begin withholding contributions from paychecks
- You remit those contributions through the program portal
4. Ongoing Maintenance
Your responsibilities are limited to:
- Submitting payroll contributions
- Updating employee records (new hires, terminations, changes)
What Employers Are Not Responsible For
This is where Secure Choice differs from a 401(k):
- No employer contributions are required (or allowed)
- No plan administration or investment management
- No involvement in investment options
- No fees charged directly to employers
In short, you’re simply facilitating payroll deductions and the state handles the rest.
Employee Contributions
Employees are automatically enrolled at a default contribution rate of 5% of gross pay. The default rate increases automatically by 1% each year until it reaches 8% of gross pay. The program makes saving consistent and gradual while still giving employees flexibility in how they participate.
At any time, employees can:
- Change contribution rates, from 1% to 100%, but you must be within IRS contribution limits
- Adjust investment options
- Name beneficiaries
- Take withdrawals
- Opt out
It’s important to note that the employee must facilitate any changes through the state website; an employer does not have access to this on the portal, so cannot make these changes for the employee.
Should Employers Use the State Program Long-Term?
For many business owners, this is the more important decision.
Secure Choice is the default option—but not always the best long-term fit.
It may make sense if you:
- Want the simplest path to compliance
- Don’t want to take on additional cost
- Have a smaller or more transient workforce
You may want to consider your own plan if you:
- Want to offer a stronger employee benefit
- Are thinking about retention and hiring
- Want higher contribution limits or employer match options
This is where we typically have deeper conversations with clients, because the “right” answer depends on your goals, not just the requirement.
Key Dates & Deadlines
Minnesota is rolling this out in phases based on employer size. Here are the key deadlines:
- 100+ employees: June 30, 2026
- 50–99 employees: December 31, 2026
- 25–49 employees: June 30, 2027
- 10–24 employees: December 31, 2027
- 5–9 employees: June 30, 2028
A soft launch started in January 2026. Based on the number of employees as of December 15, 2025, employers with over 100 employees have been notified by Minnesota Secure Choice that it’s time to register. Businesses with fewer employees will be notified in the months prior to the deadline to start the enrollment process.
How We’re Helping Clients Navigate This
Here’s how we’re supporting clients with Secure Choice:
- Determining whether the requirement applies
- Evaluating Secure Choice vs. other plan options
- Coordinating with payroll to ensure proper setup
- Handling the implementation process so nothing falls through the cracks
- Building it into your existing systems so it doesn’t become a recurring headache
Minnesota Secure Choice is part of a broader shift. Retirement access is becoming expected, and in some cases, required. Small businesses can keep it simple, but they still need to get ahead of it.
If you’d like help thinking through your options or getting everything set up, reach out to us. We’re happy to walk through it with you and make sure it’s done right the first time. Whether you’re an existing client or just need help with Secure Choice, we can support you as a one-time project or as part of an ongoing HR and/or payroll solution, depending on what fits your business best!