Employer requirements
Register with MERIT by your rolling deadline and facilitate payroll deductions, or certify an exemption based on a qualified plan.
Active mandate
Maine Retirement Plan Mandate: Requirements for Employers
MERIT (Maine Retirement Investment Trust)
MERIT covers Maine employers in business 2+ years with 5 or more employees that do not offer a qualified retirement plan. Rolling deadlines apply to newly eligible businesses; the non-compliance penalty stepped up to $50 per employee on July 1, 2026 and rises to $100 in July 2027.
The Program
How MERIT works
MERIT — the Maine Retirement Investment Trust — is Maine's state-facilitated auto-IRA program, administered by Vestwell. Maine employers that have been in business two or more years with five or more employees and no qualified retirement plan are covered. Employers below five employees are not required to participate, though they may join voluntarily.
The five-employee threshold is worth confirming against the source. The official MERIT employer page states 5+, verified by the LRS compliance team in July 2026, while at least one industry tracker publishes a 3+ threshold. If you sized your obligation from a secondary source, it is worth re-checking.
Maine is one of the few programs with a published penalty schedule rather than a flat amount. Non-compliance costs $20 per eligible employee per calendar year from July 1, 2025 through June 30, 2026; $50 per employee from July 1, 2026 through June 30, 2027; and $100 per employee from July 1, 2027 onward. Initial registration deadlines have passed, and MERIT assigns rolling deadlines to newly eligible businesses — the most recent was June 30, 2026 — so a business that was too small in one year can become covered in the next.
At A Glance
The Maine mandate at a glance
Registration deadlines
All initial deadlines have passed. MERIT sets rolling deadlines for newly eligible businesses; the most recent was June 30, 2026. Businesses notified before January 1, 2026 are past their deadline and should register or certify an exemption.
Covered employers
Maine employers in business 2+ years with 5 or more employees that do not offer a qualified retirement plan (per the official MERIT employer page; one industry tracker incorrectly lists 3+).
Penalties / enforcement
Phased per eligible employee per calendar year: $20 (July 1, 2025 – June 30, 2026) ? $50 (July 1, 2026 – June 30, 2027) ? $100 (July 1, 2027 onward).
The Requirements
Who must comply in Maine — and what is required
Employee eligibility
Eligible employees are enrolled automatically unless they opt out; administered by Vestwell for the MERIT program.
Exemptions
Employers offering a qualified plan; employers with fewer than 5 employees (smaller employers may join voluntarily).
Penalties and enforcement
Phased per eligible employee per calendar year: $20 (July 1, 2025 – June 30, 2026) ? $50 (July 1, 2026 – June 30, 2027) ? $100 (July 1, 2027 onward).
Your Options
Qualifying retirement plan alternatives in Maine
Employers sponsoring a qualified retirement plan satisfy the MERIT requirement; employers under five employees may join voluntarily.
Start a new 401(k)
Design a plan around your workforce — matching, Roth options, vesting, and federal startup tax credits.
Start a new planUpgrade an existing plan
Confirm your current plan qualifies, then tune its design so the mandate works in your favor.
Upgrade my company’s planFull plan administration
LRS handles compliance testing, filings, and day-to-day administration so the plan stays qualified.
Plan administration servicesRead more about state-approved qualifying retirement plans.
Common Questions
Maine mandate FAQs
Is MERIT mandatory for Maine employers?
Yes, for covered employers. Maine employers in business two or more years with five or more employees and no qualified retirement plan must register with MERIT or certify an exemption.
Is the Maine threshold 3 employees or 5?
It is 5. The official MERIT employer page states five or more employees, confirmed by the LRS compliance team in July 2026. At least one industry tracker incorrectly lists a 3+ threshold.
What is the MERIT penalty schedule?
Maine's penalties are phased per eligible employee per calendar year: $20 from July 1, 2025 to June 30, 2026; $50 from July 1, 2026 to June 30, 2027; and $100 from July 1, 2027 onward.
We were notified and never registered. What now?
Register with MERIT or certify your exemption. Businesses notified before January 1, 2026 are past their deadline, and the penalty accrues per eligible employee per calendar year on the published schedule.
Do employers with fewer than five employees have to join MERIT?
No. Employers below the five-employee threshold are not required to participate, though they may join voluntarily.
Does a 401(k) satisfy the Maine mandate?
Yes. Employers offering a qualified retirement plan are exempt from MERIT. An employer-sponsored plan also permits matching and higher contribution limits, which the state Roth IRA does not.
Talk It Through
Not sure how the Maine mandate applies to you?
Leading Retirement Solutions designs and administers plans that satisfy state mandates. Talk through your requirements with a consultant before your deadline.
This page is provided for general information only and is not legal or tax advice. Program details change; confirm requirements with the official state program or your advisors.