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UPDATED NOVEMBER 2026 · STATUTE-VERIFIED

My Illinois Savings (formerly Illinois Secure Choice): Illinois Retirement Mandate for Employers

If your business has 5 or more employees in Illinois, has been in business at least 2 years, and offers no qualified retirement plan, My Illinois Savings (formerly Illinois Secure Choice) requires you to register or certify an exemption. All announced registration deadlines have passed.

Alex Kandelaki, CLU, ChFC, CPFA, CFEI
Updated November 2, 2026

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My Illinois Savings (formerly Illinois Secure Choice)ENFORCING

State program

5+ employees (every quarter of the prior year)

Employee threshold

Up to $500 / employee / yr (escalating)

Non-compliance penalty

// 60-second check

What does Illinois actually require?

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Informational only, not legal or tax advice.

Annual exposure · Illinois

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My Illinois Savings at a glance.

Who is covered

My Illinois Savings covers Illinois employers with 5+ employees (every quarter of the prior year) that do not offer a qualifying retirement plan. Counting rule: At least 5 Illinois employees in every quarter of the previous calendar year; penalties use the annual average of quarterly headcount. Applies to employers in business for 2+ years.

Penalty and enforcement

Escalating: first non-compliant year: $250 per employee; each subsequent year: $500 per employee. Penalties are being assessed now.

Deadlines

Passed: 16–24 employees, November 1, 2022
Passed: 5–15 employees, November 1, 2023
Passed: Newly eligible employers, November 1, 2026

If your group's date has passed and you have not registered, register or certify an exemption now.

Source

820 ILCS 80/5, 80/60, 80/85 (as amended by P.A. 104-100, eff. August 1, 2025). Official program: My Illinois Savings official site. Verified September 17, 2026.

// state plan vs your own

You can comply two ways. Only one builds anything.

The state auto-IRA

Compliance, nothing else

No employer match allowed
Low Roth-IRA contribution limits
One-size-fits-all investments
No tax credits for your business

RECOMMENDED

Your own 401(k)

Compliant — and working for you

Match if and when you want
Far higher contribution limits
SECURE 2.0 credits can offset setup costs
A real recruiting & retention perk

// frequently asked

Asked by employers here.

Who has to comply with My Illinois Savings?

You must take part if your business has 5 or more employees in Illinois and you do not offer a qualified retirement plan, such as a 401(k) or SIMPLE IRA. Businesses open fewer than 2 years are not covered yet. The section above explains exactly how Illinois counts your employees.

When do I have to register for My Illinois Savings?

Every announced My Illinois Savings deadline has passed. If you have not registered or certified an exemption, do it now.

What is the penalty for not complying with My Illinois Savings?

Fines rise the longer you stay out of compliance, reaching $500 per employee per year at the top tier. Illinois is already sending penalty notices.

How do I get exempt from My Illinois Savings?

Offer your own qualified retirement plan and certify it with My Illinois Savings. What counts in Illinois: a plan under 401(a)/401(k), 403(a)/403(b), SEP (408(k)), SIMPLE (408(p)) or 457(b); certification required — an approved exemption removes any proposed assessment.

My Illinois Savings or a 401(k): which is better for my business?

My Illinois Savings spares you from running a plan, but it allows no employer match and caps each saver at the IRA limit ($7,500 for 2026). A 401(k) allows up to $24,500 per employee for 2026, lets you add a match, and credits can offset much of the startup cost for eligible employers.