Illinois Secure Choice requires all employers with 5+ employees who have been in business 2+ years to offer retirement savings. Penalties up to $500/employee are being enforced.
Get Your Free Illinois Compliance Audit →IL Secure Choice is Illinois's state-mandated retirement savings program. Illinois Secure Choice requires all employers with 5+ employees who have been in business 2+ years to offer retirement savings. Penalties up to $500/employee are being enforced.
Employers who already offer a qualifying private retirement plan — such as a 401(k), SEP IRA, or SIMPLE IRA — are exempt from IL Secure Choice requirements.
Learn more at the official state portal: https://www.ilsecurechoice.com
Option 1 — Enroll in IL Secure Choice: Register through the state portal and facilitate payroll deductions. This fulfills the mandate but doesn't maximize tax savings.
Option 2 — Set up a private plan (recommended): A qualifying 401(k), SEP IRA, or SIMPLE IRA exempts you from the mandate AND qualifies you for up to $15,000 in SECURE 2.0 Act tax credits over 3 years.
Key difference: A private plan belongs to your company. CalSavers/state plans do not. Private plans also attract and retain better employees.
The SECURE 2.0 Act (2023) gives small business owners massive tax credits for starting a retirement plan:
✅ Up to $5,000/year for 3 years for plan startup costs
✅ $1,000 per employee/year for employer contributions (up to 50 employees)
For many Illinois small businesses, this makes a private 401(k) free or nearly free — while exempting you from IL Secure Choice requirements entirely.
Illinois employers with 5 or more employees who have been in business at least 2 years and don't offer a qualifying retirement plan must register with IL Secure Choice.
Non-compliant Illinois employers face fines of $250 per employee in the first year and $500 per employee per year thereafter.
By offering a qualifying 401(k), SEP IRA, or SIMPLE IRA plan. Many Chicago small businesses are using SECURE 2.0 tax credits (up to $5,000/yr x 3 years) to fund this at zero net cost.
Find out exactly what IL Secure Choice means for your business — and whether a private plan saves you more money than enrolling in the state program.
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