Minnesota Secure Choice Retirement Program

Minnesota passed legislation on May 19, 2023, to adopt a state-run savings program. The legislation will require employers that employ five or more employees and who have been in business for the preceding 12 months to participate if they do not sponsor their own qualified retirement plan. Implementation is in process with the start date yet to be determined. The chart below illustrates a brief summary of the program.


Feature State IRA Plan Employer Sponsored 401k
Plan Type Mandatory Auto IRA Pre-tax, Roth AND Employer Contributions
Contribution Limits Limited to $7,000 (2024) $23,000 (plus more if over age 50)
Compliance Unknown at this time Compliant with state program
Eligibility Unknown at this time Employer controls eligibility requirements
Plan Costs Unknown at this time Dependent on type of plan design chosen.
Tax Deductible NO Employer contributions are tax deductible
Tax Credit Available NO Plan costs qualify for available tax credits
Default Contribution YES – unknown at this time Employee choice
Auto Escalation Feature NO NO
Minimum Employees to Participate 5+ Any Number
Investments Unknown at this time More than 25 funds in a variety of Morningstar categories

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