Get answers to frequently asked questions

MERIT is a retirement savings program created for Maine's nearly 940,000 workers without access to employer-sponsored retirement savings plans. Here are answers to many of the common things we’ve been asked. If you have questions beyond these, we’re here to help.

Which businesses are eligible to participate in MERIT?: You are eligible to participate in the MERIT Retirement Savings Program if:
Your business is registered to conduct business in the state of Maine
You have at least five W-2 employees
You have been in business for two or more years; and
You don’t currently offer a qualified retirement savings program to your employees
If your business already offers a qualified retirement plan to your employees, you are not eligible to participate in MERIT.
Are my employees who live in other states eligible for Maine's program?: Yes, if their employment is based in Maine.
If I have employees in multiple states, including Maine, do I just facilitate the State's program for employees in Maine?: Yes, you would need to facilitate the program only for employees with income in Maine.
Are workers of only certain immigration statuses eligible for the program? What about undocumented workers?: Only workers with a verifiable Individual Tax Identification Number (ITIN) or Social Security number (SSN) can participate in the program. If a worker's information cannot be verified, the worker will not be enrolled, and an account will not be established for him or her.
Do family members who work for my business count as employees?: Yes, they can participate if they are considered to be employees for tax purposes.
If a business owner or shareholder is also an employee, are they eligible to participate?: Yes, they can participate if they are considered to be employees for tax purposes.
Do I need to facilitate the program if I only have a small number of employees?: Yes. Employers with at least five W-2 employees must facilitate the State's program if they don't offer a qualified, employer-sponsored retirement plan.
Do I need to offer the program to work-study students?: You do not need to facilitate the program for full-time students in work-study programs.
Do payroll deduction IRAs count as a qualified, employer-sponsored retirement plan?: No. Payroll deduction IRAs are not qualified retirement plans as defined by either federal or Maine state statutes.
If I offer my employer-sponsored retirement plan only to some employees but not all, do I have to offer the State's program as well?: No, if you offer an employer-sponsored retirement plan to any of your employees, you will file a certificate of exemption and you will not need to facilitate the State's program.