In recent years, legislation passed that requires all Minnesota employers with five or more employees to offer a workplace retirement plan or participate in the Minnesota Secure Choice Retirement Program. The Program is expected to be available to employers beginning in the first quarter of 2026. However, there are a number of benefits to designing your own workplace retirement plan before your employees get relegated to the state’s default plan.
Guidance on the best plan for your unique business. The Minnesota Secure Choice Retirement Program offers an individual retirement account (IRA) or Roth IRA through the government system. Although it requires employers to deduct contributions from employees’ paychecks and deposit them directly into an IRA, it doesn’t allow employers to explore other plan options, such as a SIMPLE IRA or 401(k), which might better fit their needs. Employees do have the opportunity to change contribution amounts or opt out altogether, but available funds in which to invest are offered with the oversight of the Minnesota State Board of Investment.
Ability to provide a company match for contributions. When employers are able to design their own workplace retirement plans, they can incorporate incentives to help employees save for retirement such as matching an individual’s contributions. These types of incentives don’t only help employees but also turn the company’s retirement plan into a powerful benefit that can attract and retain talent.
Support of a local advisor. Designing your own workplace retirement plan through a local partner like Stewards Planning Group affords your employees valuable assistance. They receive support not only to enroll in the plan but also to understand available investment funds, identify their personal risk tolerance and make educated decisions about contribution amounts that support their cash-flow needs. When you work with a local advisor, your company has a direct line to a friendly face waiting to help.
The Minnesota Secure Choice Retirement Program should become available January 1, 2026, with affected companies being notified 30 days in advance. However, now is the perfect time to explore your retirement plan options before deciding if the Program is best for your business and employees. Contact our team to schedule a complimentary, no-obligation consultation.