Illinois Secure Choice Savings Program
September 5, 2023The 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.
Employers in Illinois will be required to participate in the Illinois Secure Choice Savings Program if they meet the following criteria:
- Have 5 or more employees
- If a business reported W-2 wages for 5 or more employees on Form IL-941 during all four quarters of 2022, it is considered to have 5 or more employees.
- Have been in operation for at least two years
- Do not offer a qualified employer-sponsored retirement plan
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
- Pension plans – Including IMRF and other union pension funds
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.
Employers with 5 or more employees have until November 1, 2023 to either register for the program, establish a qualified employer-sponsored retirement plan, and/or indicate that they are exempt from the program.
The State will notify your business directly with instructions and deadlines to either register or indicate you are exempt from the program. However, if you would like more information on the Illinois Secure Choice Savings Program, please contact our office or visit www.ilsecurechoice.com.