Understanding Maine's State Mandates for Retirement Plans: Options and Compliance
Help clients navigate Maine's retirement state mandate and understand alternative plan options, ensuring compliance with the mandates.
Key Points
- State-Mandated Retirement Options: Maine requires employers with five or more employees to offer one of three retirement plans: the state-run MERIT IRA, a private sector retirement plan, or a pooled employer plan (PEP).
- Compliance Requirements: Keep clients up to date on specific deadlines they must meet to avoid financial penalties.
- Benefits of Each Option: The MERIT program offers no fees and limited administrative responsibilities, while alternative options like 401(k)s and PEPs provide flexibility and potential tax benefits.