Minnesota Secure Choice is a state-mandated retirement program that requires employers with 5+ employees who don't offer a retirement plan to automatically enroll their workers in a state-run IRA program starting January 1, 2026.

Yes, if you have 5 or more employees and don't currently offer a qualified retirement plan. All private sector employers (for-profit and non-profit) must participate unless they already sponsor a retirement savings plan.

Minnesota takes compliance seriously with a structured penalty system designed to give businesses ample time to act. Here's what you need to know:

⏰ Your 24-Month Compliance Timeline Starts When:

Your business reaches 5+ employees

You've been operating for over 1 year

You don't currently offer a retirement plan

📅 What to Expect:

Months 1-6: Friendly reminder notices about the upcoming enrollment requirement

Months 7-18: Official written notices of non-compliance

Months 19-24: Two certified warning letters alerting you that penalties begin after Month 24

Month 25+: Penalties kick in and escalate annually

💰 Penalty Structure (Per Employee, Per Year):

Years 3-4: $100/employee (capped at $4,000 total)

Years 4-5: $200/employee (capped at $6,000 total)

Years 5-6: $300/employee (no cap)

Year 6+: $500/employee annually (no cap)

🚨 The Bottom Line: A business with 20 employees could face $10,000+ in annual penalties by Year 6. But here's the good news—you can avoid ALL penalties by implementing our 401(k) solution, which often costs less than the first year of penalties while providing superior benefits to your employees.

Why wait? Contact us today to get your compliant 401(k) plan in place and turn this mandate into a competitive advantage for your business.

The program launches January 1, 2026, with a phased rollout over 30 months based on employer size. Larger employers (100+ employees) will be required to comply first, with smaller businesses following in phases.

A 401(k) offers more investment options, higher contribution limits ($23,000 vs $7,000), employer matching opportunities, and greater flexibility. Secure Choice is a basic IRA with limited investment options and rigid state-controlled administration.

Absolutely! Any employer offering a qualified retirement plan (like our 401(k)) is exempt from the Minnesota Secure Choice mandate.

You can switch to a 401(k) at any time. We'll help you transition your employees seamlessly while ensuring continued compliance.

Our concierge solution includes $3,500 in education, training, and onboarding for qualified businesses.

Under the SECURE Act 2.0, businesses with up to 100 employees can receive up to $16,500 in tax credits over three years:

• 100% of startup costs (up to $5,000 annually for 3 years)

• Additional $1,000 per employee credit for employer contributions

• Auto-enrollment credit of $500 for 3 years

Our streamlined process takes 2-4 weeks from start to finish. We handle all paperwork, compliance filings, and employee education.

No, employer contributions are optional. However, matching contributions are tax-deductible and help attract/retain employees.

We handle virtually everything! Your only responsibilities are payroll deductions and remitting contributions. We manage all compliance, Form 5500 filings, testing, and employee support.

We integrate with 500+ payroll systems including ADP, Paychex, QuickBooks, and more. Contributions are automatically calculated and deducted with minimal effort from you.

Employees can opt out at any time, unlike some state programs with restrictions. We provide clear enrollment materials explaining their options.

Yes, but we provide all materials and handle employee education. This includes enrollment packets, investment education, and ongoing support through our mobile app.

Our plans offer diversified portfolios including target-date funds, index funds, and actively managed options - far more choice than state programs' limited options.

Yes, 401(k) plans offer loans, hardship withdrawals, and in-service distributions not available in state IRA programs. Employees have much greater flexibility.

Their 401(k) account is 100% portable. They can roll it to a new employer's plan, keep it with us, or roll to an IRA. Much more flexible than state program restrictions.

Yes! Yes, our site is mobile-friendly and easy to access and make changes.

Studies show businesses with 401(k) plans experience:

• 40% higher employee satisfaction

• 32% lower turnover rates

• 20% competitive advantage in hiring

• Significant tax deductions for the business

Yes! Our plans work for businesses with as few as 2 employees and scale as you grow.

No problem! We accommodate seasonal employers and part-time workers with flexible eligibility requirements.

Book a free 15-minute consultation where we'll review your situation, explain your tax credit eligibility, and provide a customized proposal.

Just basic business information: number of employees, current payroll system, and business entity type. We handle the rest.

While you can switch, our clients rarely do because of our superior service and competitive pricing. We're confident you'll love working with us.