Initial implementation of the Maine retirement savings program will not take place on April 1, 2023.
- The Maine Retirement Savings Program (the “Program”) was created by An Act to Promote Individual Retirement Savings through a Public-Private Partnership, enacted in June 2021.
- The registration deadline for employers with 25 or more employees in the legislation is April 1, 2023. The program will not be available in time to allow employers to meet this deadline.
- An amendment to the legislation to extend the registration deadlines for employers will be considered this legislative session.
- When it is operating, employers will register through an online portal. Registration will be designed to be quick and easy.
- Employers that do not offer a qualified retirement plan to their employees will register with the program, make the payroll deductions and send the funds to the Program Administrator.
- Using data provided by employers, the program will automatically enroll Maine employees without a workplace retirement plan in a Roth IRA funded by the employee through payroll deductions. Initially 5% of the employee’s salary will be deducted and deposited in a Roth IRA account for the employee.
- Employees will be able to opt out of participation or choose to have a different percentage of their income contributed to the retirement account.
- When the program is operating in late 2023 or early 2024 it will support small Maine businesses in attracting quality employees by providing benefits like larger organizations
- Any questions? Send them to info@mainesaves.org.
