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Illinois Secure Choice Savings Program

Picture of Heather Palermo Heather Palermo · August 23, 2019

payroll + hr compliance small business accounting business & tax strategy

ILLINOIS BUSINESS OWNERS

A retirement savings program is mandatory as of November 2019.

You have options, and we can help. Please contact us today!

Effective November, 2019, The Illinois Secure Choice Savings Program Act (Secure Choice), will require Illinois businesses to automatically enroll their employees in the savings program if they have at least 25 employees, have been in business for at least two years, and do not provide a qualified savings plan of their own. Businesses who meet these specifications will either need to implement a retirement plan through providers of their choice or will need to enroll employees in Secure Choice’s Roth IRA. Please note: Secure Choice has already been implemented for companies with more than 100 employees.

Employers who meet the specifications above that do not comply with the Illinois Secure Choice Savings Program can be subject to hefty penalties as outlined in the act.

Setting up a retirement plan prior to Secure Choice implementation is a good option to consider. Here’s why:

Time. You will be required to enroll every employee, set up payroll deductions, send educational material, and remit employee contributions to the provider. These time-consuming tasks are done for you, by service providers, when you utilize an advisor.
Tax benefits. With a Roth IRA, contributions are taxed now, meaning the benefit of deferred taxation isn’t applicable. In addition, you will miss out on the tax benefits from matching employee contributions.
Limited contributions. Roth IRAs have stricter contribution limits. The limit for 2019 is $6,000 ($7,000 if age 50 or over).
No advisor. Financial advisors are not required under the Secure Choice model, leaving your employees without the guidance to make an informed decision that is in their best interest.

Again, now is the time to consider your options. Don’t wait until November when Secure Choice is implemented. We can help you now! We have financial advisors on staff who would love the opportunity to talk with you and discover the best plan for you and your employees!

Kaizen CPAs works with auto repair shops across the country. We know running a successful shop takes more than keeping the bays full. We help shop owners understand their numbers, stay ahead of taxes, and build stronger, more profitable businesses. Auto repair is at the heart of what we do, but we bring the same practical, hands-on approach to businesses in other industries, too.

YPD HCM is part of the Kaizen CPAs family. YPD HCM helps small businesses manage payroll, HR, and compliance with the right tools and personal, human support—from payroll and tax filings to onboarding, employee management, and more. It’s practical help for the people side of your business, from a team that’s there when you need them.

The information in this article is provided for general educational purposes and reflects conditions as of the publication date. It is not legal, tax, accounting, payroll, HR, or compliance advice. Every business is different, so talk with a qualified professional about your specific situation.