FOR BUSINESS OWNERS
Minnesota businesses with five or more employees and no retirement plan now have a deadline to register for the state’s new program. Here’s who’s affected, when, and why a plan of your own may fit better.
By Austin Bock, Partner | Legacy Capital Wealth Management | November 2026
If you run a Minnesota business with 50 to 99 employees and no retirement plan, you have a deadline coming. December 31, 2026.
That’s the date to register for Minnesota Secure Choice, the state’s new retirement savings program. Smaller businesses aren’t far behind. Every employer with five or more employees and no plan gets a turn by mid-2028.
The good news? You have a choice in how you meet it. And the choice you make now will shape what you can offer your people, and yourself, for years.
What is Secure Choice?
It’s a state-run Roth IRA program for employees whose company doesn’t offer a retirement plan. Employees save through payroll deduction. They can opt out or change their contribution within 30 days of enrolling.
You register if you have 5 or more covered employees and don’t offer a qualified retirement plan. Already have a 401(k)? You still have a job to do. You certify your exemption with the access code in your state notice.
Your part as the employer is mostly payroll. Register, add employees, send deductions, and keep the roster current. There’s no employer fee. There’s also no employer match.
When does your business need to register?
It depends on headcount.
| Employees | Registration deadline |
|---|---|
| 100 or more | June 30, 2026 (passed) |
| 50 to 99 | December 31, 2026 |
| 25 to 49 | June 30, 2027 |
| 10 to 24 | December 31, 2027 |
| 5 to 9 | June 30, 2028 |
Source: Minnesota Secure Choice, Program Details
Ignoring the notice gets expensive. Employers that don’t comply can face fines of up to $500 per employee after a warning period (Faegre Drinker).
Your two paths
You can join the state program. Or you can start a plan of your own and certify out. Here’s how they compare.
| Secure Choice | Your own 401(k) | |
|---|---|---|
| Account type | Roth IRA owned by each employee | Employer-sponsored plan |
| Employer match or profit sharing | Not available | Your choice |
| Savings room | IRA limits | Much higher 401(k) limits |
| Savings for you, the owner | Same IRA limits as everyone | Room for real owner savings, plus safe harbor and profit sharing options |
| Cost to the business | No employer fee | Setup and admin costs, often offset by tax credits |
| Recruiting and retention | Basic | A benefit you can point to |
Secure Choice works. It’s simple and it checks the box. For some businesses, that’s enough.
But if you want to reward your people, or save meaningfully for your own retirement, a 401(k) gives you room the state program can’t.
The cost is lower than you think
SECURE 2.0 added tax credits for small employers that start a plan. If you have 50 or fewer employees, the startup credit can cover up to 100% of eligible plan costs, up to $5,000 a year for three years. Employers with 51 to 100 employees can get 50%.
There’s more. A separate credit can offset employer contributions, up to $1,000 per eligible employee, phasing down over five years. Adding automatic enrollment can earn another $500 a year for three years.
Your CPA can confirm what your business qualifies for. We’re happy to get on a call with them.
A NOTE FOR S CORP AND C CORP OWNERS
Your own contributions are based on your W-2 salary only, not distributions. Worth a look before you set your pay for next year.
What to do before your deadline
01Find your state notice. It has your access code. You’ll need it either way.
02Count your covered employees. That sets your deadline.
03Decide which path fits. The state program, or a plan of your own.
04Already have a plan? Certify your exemption so you don’t get flagged.
05Starting a plan? Give yourself time. Setup takes a few weeks, and you’ll want it in place before your deadline.
Where we come in
We help Minnesota business owners design and run 401(k) plans that fit the business and the people in it. Plan design. Fund lineup oversight. Fee checks. And monthly employee education sessions, so your team has someone to call that isn’t HR.
If you already have a plan nobody has looked at in a while, this is a good excuse to look.
Learn more on our 401(k) Plan Services page.
SECURE CHOICE OR A PLAN OF YOUR OWN?
Let us help you set the board.
We’ll look at your headcount, your deadline and what you want the plan to do, then walk through your options with you and your CPA.
| Request a 401(k) Review |
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. LPL Financial does not provide tax or legal advice. Please consult your tax or legal professional regarding your situation.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. Economic forecasts set forth may not develop as predicted.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
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