MERIT: does your Maine business have to register, and by when?

If your Maine business has five or more employees, has been in business this year and last, and offers no qualified retirement plan, the state requires you to register with MERIT or offer your own plan.

Every deadline the state has listed has passed; the most recent was June 30, 2026, for newly eligible employers notified in 2026.

Employers that get a notice register or certify an exemption by June 30 of that year. If you already offer a 401(k), you certify an exemption instead.

In forceMERIT (also called Maine Retirement Investment Trust, MeritSaves)

Who has to do this?

Under Maine's retirement savings program law (5 MRSA chapter 7-A, sections 171 to 178)5, a Maine employer is covered when all of these are true:

  • You have five or more employees. An employer with fewer than five does not have to offer the program. 6
  • You have been in business during both the current and the previous calendar year. 5
  • You have not offered a qualified retirement plan this year or in the two years before. 5

What a covered employer does: Register with MERIT, add employees, start their payroll deductions after their 30-day opt-out period and send contributions, or certify an exemption. 1

When?

Every deadline the state has listed has passed. The rule is in force.

MERIT deadlines
WhoDeadlineWhat is due
Employers with 15 or more employees (notified in 2024)April 30, 2024PassedRegister or certify an exemption 4
Employers with 5 to 14 employees (notified in 2024)June 30, 2024PassedRegister or certify an exemption 4
Employers notified in 2025June 30, 2025PassedRegister or certify an exemption 4
Newly eligible employers notified in 2026June 30, 2026PassedRegister or certify an exemption 1

Newly eligible employers must register or certify an exemption by June 30 of the year they are notified. 4

What is MERIT?

  • Employees are enrolled in a Roth IRA in their own name and can opt out. 2
  • The default savings rate is 5% of gross pay, rising 1% each January up to 10%. 3
  • Employers do not contribute; matching is not permitted by the program. 2

What if we already have a 401(k)?

  • Employers that offer a qualified retirement plan, such as a 401(k), 403(b), SEP, SIMPLE or 457(b) plan, are exempt. 5
  • Certify your exemption online with the Access Code from your notice and your EIN. 1

Your two options

Either one meets the requirement. The state program column is as the state describes it; which suits you depends on your business and your people.

Join MERITOffer your own plan
What you doRegister with MERIT, add employees, start their payroll deductions after their 30-day opt-out period and send contributions, or certify an exemption. 1Certify an exemption online with the Access Code from your notice and your EIN. 1
Where the money goesA Roth IRA for each employee 2Accounts in the plan you choose, such as a 401(k)
Employer contributionsNot permitted 2Up to you, within the plan's design
Fee to the employerNo cost to the employer, according to the program. 2Set by the provider you choose

What does it cost?

The state program: No cost to the employer, according to the program. 2

Your own plan: the provider sets the fees, and federal tax credits can cover part of the cost of starting one. See 401(k) tax credits for small businesses and our pricing.

What happens if we don't?

  • For failing to enroll without reasonable cause, the penalty per covered employee is up to $50 from July 1, 2026, and up to $100 from July 1, 2027. It was up to $20 before that. 6
  • MERIT says enforcement began in 2026, and that paying a penalty does not make an employer compliant. 4

General information, not legal advice. Rules change; confirm with the state program or your counsel.

Sources & Methodology
  1. Maine Retirement Savings Board, MERIT, Program details (employers). Read October 13, 2026.
  2. Maine Retirement Savings Board, MERIT, Employers. Read October 13, 2026.
  3. Maine Retirement Savings Board, MERIT, Savers: contributions. Read October 13, 2026.
  4. Maine Retirement Savings Board, MERIT, MERIT enforcement: what Maine businesses need to know, page dated June 23, 2026. Read October 13, 2026.
  5. Maine Legislature, 5 MRSA § 171, Definitions. Read October 13, 2026.
  6. Maine Legislature, 5 MRSA § 173, Employer duties. Read October 13, 2026.

Each statement is paraphrased or quoted from the source it cites. A link to a state agency does not mean the agency endorses alooola. Last verified October 13, 2026.

Get help with MERIT in three steps

  1. Tell us about your business: your state, how many people work for you, and any plan you have now.
  2. An advisor talks it through with you and sends a written proposal with the fees, so you can weigh it against the state program.
  3. If you choose your own plan, we coordinate the setup with you and your payroll provider. You then certify your exemption with the state.
Request a proposal

Prefer to talk? Call (484) 275-5525, Monday–Friday, 9am–5pm ET.