Employer requirements
None — participation is optional and limited to small nonprofits.
Voluntary program
Does Massachusetts Have a Retirement Mandate? What Employers Need to Know
Massachusetts Defined Contribution CORE Plan
Massachusetts has no general private-sector mandate. The CORE Plan is a voluntary 401(k) multiple-employer plan for Massachusetts nonprofits with 100 or fewer employees — the first state-facilitated MEP in the nation, and unique in permitting employer Safe Harbor matching.
The Program
How the Massachusetts Defined Contribution CORE Plan works
Massachusetts has no general private-sector retirement mandate. Its CORE Plan is a voluntary 401(k) multiple-employer plan for Massachusetts nonprofits with 100 or fewer employees — expanded from 20 in the FY26 state budget (confirmed at mass.gov; many industry trackers still show the old 20-employee cap). Launched in October 2017 as the first state-facilitated MEP in the nation, it is unique among state programs in being a 401(k) rather than an IRA and in permitting employer Safe Harbor matching. It is administered by Empower and serves roughly 2,400 employees across 240+ nonprofits.
Because Massachusetts imposes no mandate, the practical question for most employers is simply which retirement benefit best fits their workforce. For-profit businesses can sponsor a 401(k), Safe Harbor, or SIMPLE plan; nonprofits under 100 employees can weigh the CORE Plan against sponsoring their own. And if you also employ workers in states that do mandate coverage — California and Oregon among them — a single employer-sponsored plan can satisfy every state's requirement at once.
At A Glance
The Massachusetts mandate at a glance
Registration deadlines
Not applicable — participation is voluntary.
Covered employers
Voluntary: Massachusetts nonprofits with 100 or fewer employees may join (cap expanded from 20 in the FY26 state budget). No employer is required to participate.
Penalties / enforcement
Not applicable.
The Requirements
What Massachusetts employers should know
Employee eligibility
Participating nonprofits' employees are auto-enrolled at 6%, escalating 1–2% per year to 15%.
Exemptions
Not applicable — there is no mandate to be exempt from.
Penalties and enforcement
Not applicable.
Your Options
Qualifying retirement plan alternatives in Massachusetts
Massachusetts employers of any type can sponsor their own qualified retirement plan; nonprofits under 100 employees may alternatively join the CORE Plan.
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
Massachusetts mandate FAQs
Does Massachusetts require employers to offer a retirement plan?
No. Massachusetts has no general private-sector retirement mandate, so most employers are not required to register with any state program. The state's CORE Plan is voluntary and limited to nonprofits with 100 or fewer employees.
What is the Massachusetts CORE Plan?
The CORE Plan is a voluntary, state-facilitated 401(k) multiple-employer plan for Massachusetts nonprofits with 100 or fewer employees. Launched in 2017, it was the first state-facilitated MEP in the nation and is administered by Empower.
Can a for-profit business join the Massachusetts CORE Plan?
No. The CORE Plan is limited to nonprofit organizations with 100 or fewer employees. For-profit employers that want to offer a retirement benefit can sponsor their own 401(k), Safe Harbor, or SIMPLE plan.
Is the CORE Plan a 401(k) or an IRA?
A 401(k) u2014 which makes Massachusetts unusual, since most state programs are Roth IRAs. Because CORE is a 401(k) multiple-employer plan, participating nonprofits can offer employer Safe Harbor matching, which auto-IRA programs cannot.
Does Massachusetts penalize employers that don't offer a plan?
No. Because there is no mandate, there are no penalties. Participation in the CORE Plan is entirely optional.
We have employees in Massachusetts and other states u2014 what should we check?
Whether any of those other states mandate coverage. States like California and Oregon require employers without a plan to register. A single employer-sponsored plan can satisfy every state's requirement at once.
Talk It Through
Not sure how the Massachusetts 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.