Beginning in 2018, Illinois implemented its state-sponsored retirement program—the Illinois Secure Choice Retirement Savings Program (Secure Choice). This program offers a Roth Individual Retirement Arrangement (IRA) to employees in Illinois who do not have access to a tax-qualified retirement program through work. While covered employers do not need to pay costs or fees in connection with Secure Choice, they must distribute informational materials about Secure Choice to their employees, facilitate enrollment in the program, set up payroll deductions and remit employee contributions.
On November 1, 2022, companies with 16 to 24 employees that have been operational for at least two years and don’t already offer a qualifying retirement plan (e.g., a 401(k) plan) will be subject to the requirements of the Illinois Secure Choice Savings Program Act. Currently, the threshold is for companies with at least 25 employees. Starting November 1, 2023, companies with 5 to 15 employees will become subject to the requirement.
Click the following link to read the entire Employment Law Summary: Illinois Secure Choice Retirement Program
Employco’s clients have the ability to adopt into our large, multi-employer 401(k) plan to satisfy the Secure Choice requirement and relieve the administrative burden associated with managing a retirement plan. Outside of a one-time $500 adoption agreement fee, there is no cost to our clients. Contact us for more information.