Illinois’ state retirement savings program
A retirement savings mandate is active in Illinois. This means that employers meeting specific requirements need to offer the state-facilitated retirement program (My Illinois Savings) or a qualified alternative.The ePlan Services team is here to help Illinois businesses stay compliant and avoid penalties. Reach out today to set up a 401(k) plan in 24 hours.
What to know about My Illinois Savings
My Illinois Savings (formerly Illinois Secure Choice) is Illinois’ retirement savings program. Here are the basics:
- Program Status: Open for enrollment
- Employer Participation: Mandatory
- Program Type: Roth IRA (Traditional IRA option for alternative election)
- Penalty: $250 per employee for failing to enroll the first year; $500 per employee for each subsequent year
- Employer Requirements: Employers that have been in business at least two years, had 5+ employees each quarter of the previous calendar year, and are not currently sponsoring a qualified retirement plan
- State Website: My Illinois Savings opens in a new tab
ePlan Services vs. My Illinois Savings
See how Illinois’ retirement savings program measures up against an ePlan Services 401(k)
Potential for up to $5,000 start up credit and $500 automatic enrollment credit for 3 years, plus available employer contribution credit of up to $1,000 per employee
IRAs do not qualify
Yes
Matching is not permitted
Yes
Individual accounts
Yes
Restricted options
$24,500
+ $8,000 (age 50-59, 64+) or $11,250 (age 60-63) in catch-up contributions
$7,500
+ $1,100 in catch-up contributions (age 50+)
Meet your regional wholesaler
Quick and easy plan setup
Plan setup can be easily completed online so you can focus on helping more clients.
Higher contribution rates
401(k) retirement accounts have higher contribution limits than IRAs—putting more in your clients’ pockets down the road.
Potential tax breaks
SECURE Act offers tax credits to employers who start plans, add an auto-enrollment feature, or make contributions.
Illinois Secure Choice: Retirement Savings Program
The state of Illinois now requires employers with 5 or more employees to enroll them in the Illinois Secure Choice program if they don’t offer another qualifying retirement plan. This state-administered retirement program launched in 2018. Do you currently offer your employees a retirement plan? If not, we’ll inform you of your options—your state-administered program and ePlan Services 401(k) plan.
A Financial Advisor’s Guide to State-Administered Retirement Plans
Millions of private-sector workers across the United States do not have access to a retirement savings account and, to address this crisis, several states have implemented state-administered retirement plans. What does this mean for you? It means that, as a trusted financial advisor, your clients are going to need your help selecting and enrolling in a retirement plan that will suit the needs of their business.
