Ready, Set, Secure: What Minnesota Secure Choice Means for Employers

Minnesota Just Made Retirement Benefits Mandatory — Here's What That Means for You

If you run a small business in Minnesota and you don't currently offer a retirement plan to your employees, this is your heads-up: you're going to have to. The Minnesota Secure Choice Retirement Program is the state's answer to a real problem — millions of Minnesotans have no access to a workplace retirement savings option. The legislature decided to fix that, and the fix lands on employers.

The good news: it's not as complicated as it sounds. The bad news: the deadlines are closer than you think, and "I didn't know about it" won't buy you any grace with the state.

Here's what you need to know in plain English.

What Minnesota Secure Choice Actually Is

Minnesota Secure Choice is a state-run retirement savings program. If your business doesn't already offer a qualifying retirement plan — think 401(k), SIMPLE IRA, SEP-IRA, or similar — you'll be required to enroll in the state program and automatically enroll your eligible employees.

Once enrolled, employees contribute a percentage of their paycheck into a Roth IRA managed by the state. They can opt out if they want to. You, as the employer, are not required to contribute anything. Your job is to set up the payroll deduction, enroll employees, and pass the money through.

Think of it less like offering a benefit and more like running a new payroll line item.

A few things to know about what it covers:

• ✦Employees must be at least 18, have worked for you for at least 60 days, and receive W-2 wages in Minnesota.
• ✦The default contribution rate is expected to start at 5% of gross wages (employees can adjust this).
• ✦You cannot contribute as the employer — this is employee-funded only, which keeps your cost burden low.
• ✦If you already offer a qualifying plan, you're exempt. You just need to be able to prove it.

The Deadlines (This Is the Part You Should Screenshot)

The rollout is phased by employer size. Here's how it breaks down based on current guidance:

• ✦Employers with 50+ employees: Expected to be among the first required to comply — watch for the state's official implementation timeline, as registration deadlines are expected to land in 2025.
• ✦Employers with 5–49 employees: Compliance deadlines follow the larger employers, likely rolling into 2026.
• ✦Employers with fewer than 5 employees: May have additional time or different requirements — details are still being finalized.

These dates are subject to change as the state finalizes its rollout, so "check later" is a reasonable strategy only if "check later" actually makes it onto your calendar. Set a reminder now.

If you're already running a 401(k) or similar qualified plan, document it. The state will likely ask for proof of an existing plan when you register or certify your exemption. Don't assume being exempt means being invisible — you'll probably still need to do something.

What You Should Actually Do Right Now

Here's the practical checklist, no fluff:

1. ✦

   Figure out if you have a qualifying plan. If you have any retirement benefit in place — even a simple SEP-IRA — talk to whoever manages your payroll or your accountant and confirm it qualifies. If it does, document it and keep that documentation somewhere you can find it.

2. ✦

   If you don't have a plan, decide whether to set one up independently or use Secure Choice. Some employers will find that this deadline is actually a good reason to set up their own 401(k) — especially if you want to attract and retain staff in a competitive market. A state-run Roth IRA is fine, but it's a floor, not a ceiling.

3. ✦

   Count your employees now. Your compliance deadline is tied to your headcount. Know your number.

4. ✦

   Put someone in charge of tracking this. In a small business, "everyone's responsible" usually means no one is. Assign this.

5. ✦

   Watch for communications from the state. The Minnesota Department of Commerce will be the source of official registration information. Sign up for updates if you can.

One thing worth acknowledging: compliance deadlines for new programs like this have a way of sneaking up on businesses that are already stretched thin. That's especially true if you're running a fitness studio, a therapy practice, or any other small operation where HR isn't exactly a full-time role.

If you want a second set of eyes on where your business stands — retirement plan compliance included — the team at SMC People Strategies is happy to take a look. No pressure, just clarity.