*Attention: Employers not offering retirement plans
Author: Mike Feuerstein
Illinois launched the Illinois Secure Choice- State sponsored Retirement Plan in 2018. For employers conducting business in Illinois, the program mandates employers with 25 or more employees, must offer their employees an employer-sponsored retirement plan or enroll with Illinois Secure Choice. Employers who enroll with Illinois Secure Choice will allow participating employees to contribute to a Roth IRA, an after-tax retirement vehicle. Employers who already offer an employer-sponsored retirement plan option or have 25 or fewer employees are exempt from enrollment. Failure to comply with the mandate will result in a penalty of $250 for each employee during the initial year of non-compliance and $500 for each employee for each subsequent year of non-compliance.
If employers find themselves out of compliance, Illinois Secure choice offers two registration deadlines. Employers that have 100-499 employees have until July 31, 2019 to enroll and employers with 25-99 employees have until November 30, 2019. The deadline for employers with 500+ employees has already passed.
If you are an employer who believes they are not in compliance or have further questions, please contact us to discuss.