Illinois Secure Choice is a state-sponsored retirement savings program that launched in 2018 and is not only open to employees who have an employer but is open to anyone who wants to enroll and save for retirement. Starting in 2022, the program now covers all employers with five or more employees, and by state law it is required for these employers to offer their own program or use Secure Choice.
The deadline has passed for companies with 16 or more employees, but registration is still open for businesses with 5-15 employees (closing on November 1, 2023). Employers who do not comply will be subject to certain fines and penalties.
Illinois Secure Choice was designed to simplify your role and keep business running smoothly, provide opportunity for all employees to save for retirement, increase employee productivity, and attract and retain talent. To facilitate Secure Choice, employers simply need to add and maintain an employee roster and submit contributions by payroll deduction each pay period.
There are a few straightforward steps to getting started as an employer:
- Register your company using your company’s Federal Employer Identification Number or Tax Identification Number (EIN/TIN) and your Secure Choice access code (requested via the website).
- Submit information for your employees, which will set up a Roth IRA for each employee. In the following 30 days, employees can decide to opt out or participate, but not making a selection will automatically enroll them.
- Once information is submitted and accounts are created, employers will facilitate payroll deductions via bank transfer, and they will be invested based on the employee’s selections.
Some of the primary benefits of an IRA account through Illinois Secure Choice is that the savings are automatic, and your account stays with you even if you change jobs. Plus, you can adjust your savings rate and investment decisions at any time as you go to match your savings goals.
As an Illinois resident, you are automatically enrolled in the program either through your employer or as an individual. If enrolled through an employer, a percentage of your paycheck will automatically go into your IRA. As an individual, you can choose to invest whatever percentage of your yearly earnings into your IRA.
Of course, you do have the opportunity to opt out of the program if you are not ready to save for retirement just yet. However, it is encouraged to start looking into how saving even a small portion here and there can significantly impact your potential savings for retirement years.
You can learn more about the Illinois Secure Choice program and all its requirements by visiting their website. Additionally, our bankers are always ready to help your business navigate these programs as well as helping you individually invest and meet your goals in the way that’s best for you. Give us a call today at 800-526-9127.