2022 Illinois Secure Choice Program

What Is the 2022 Illinois Secure Choice Program?

The Illinois Secure Choice Savings Program is a retirement savings program that offers Illinois businesses the option to either enroll their employees into the Secure Choice Plan or offer a qualified savings plan, such as a 401(k).

There are zero employer fees associated with this program, and employers who choose to participate will have minimal responsibilities. The 2022 Illinois Secure Choice Program requires certain employers to provide access to a retirement savings option if they do not offer a qualified employer-sponsored plan.

2022 Illinois Secure Choice Program Requirements for Employers

Employers in Illinois will be required to participate in the 2022 Illinois Secure Choice Program if they meet the following criteria:

• Have 5 or more employees
• Have been in operation for at least two years
• Do not offer a qualified employer-sponsored retirement plan

Employers who meet these requirements and do not offer a qualified plan must either register for the Secure Choice Program or establish a qualifying retirement plan.

What Retirement Plans Qualify for Exemption?

Qualified retirement plans include:

• 401(a) or 401(k) – Qualified plan including profit sharing plans and defined benefits plans
• 403(a) – Qualified annuity plan
• 403(b) – Tax-sheltered annuity
• 408(k) – Simplified Employee Pension (SEP) plan
• 408(p) – SIMPLE IRA plan
• 457(b) – Governmental tax-deferred compensation plan
• Taft-Hartley plan

Note: Payroll deduction IRAs are NOT considered to be qualified retirement plans.

Employers with fewer than five employees or those who offer one of the qualified retirement plans listed above are exempt and do not need to participate in the Program.

2022 Illinois Secure Choice Registration Deadlines

Employers with 16-24 employees have until November 1, 2022 to either register for the program or establish a qualified employer-sponsored retirement plan.

Employers with 5–15 employees have until November 1, 2023, to either register for the program or establish a qualified employer-sponsored retirement plan.

The State will notify your business directly with instructions and deadlines to either register or indicate you are exempt from the program.

Where to Get Help With Illinois Secure Choice Compliance

If you would like more information on the Illinois Secure Choice Savings Program, please contact us at Siepert & Co., LLP.

If you would like more information on establishing a qualified employer-sponsored retirement plan in lieu of participating in this program, contact Wendy West with Siepert West Financial Consulting, located in our Sycamore office, at 815-787-7657.