Still time for small to mid-sized Illinois employers to sign up for Illinois Secure Choice
Illinois Secure Choice is an employer mandate to provide retirement savings to employees that went into effect on November 1. The program requires that employers, both for-profit and nonprofit, with more than 25 employees (July 1, 2019 for 100+employees and Nov 1, 2018 for 500+employees) provide a retirement savings program for its employees. The program makes it easy to save by offering a default investment option that can move with the worker from job to job.
If the employer decides to implement a retirement plan (e.g., 401k, Simple, 403b) instead of using Illinois Secure Choice, they need to have a plan document in place within 60 days of the above deadlines to avoid penalties. Note that Illinois Secure Choice applies to Nonprofits as well as for profit businesses.
By implementing the Illinois Secure Choice program for their employees they are automatically enrolled unless they opt out, the choice of opting out must be done annually, and employee participants will be contributing to a Roth IRA.
More than 32,000 Illinoisans have saved more than $8.5 million for their retirement as part of Illinois Secure Choice. The program was implemented in the past year after it was created by state law in 2015.
There are no fees for employers to become part of the plan, and statue prohibits employer contributions. Employers are required only to register on ilsecurechoice.com, enter employee information, and deduct and remit to the state the employee contributions from payroll.
For more information on the Illinois Secure Choice program contact a Dugan & Lopatka professional at firstname.lastname@example.org or (630) 665-4440. Dugan & Lopatka Wealth Management can also provide retirement plan services to any Illinois company needing to set up a plan.