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UPDATED FOR 2026 · STATUTE-VERIFIED

Illinois Retirement Mandate: IL Secure Choice

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.

Illinois Secure ChoiceENFORCING
State program
5+ employees
Employee threshold
Up to $500 / employee / yr (escalating)
Non-compliance penalty
// 60-second check

What does Illinois actually require?

Set your headcount for your real exposure — data verified against the statute.

Informational only — not legal or tax advice.

Annual exposure · Illinois

Get your full breakdown + a private-plan savings estimate:

// 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 offset setup
  • A real recruiting & retention perk
// frequently asked

Asked by employers here.

Who must enroll in Illinois Secure Choice?

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.

What are Illinois Secure Choice penalties?

Non-compliant Illinois employers face fines of $250 per employee in the first year and $500 per employee per year thereafter.

How do Chicago small businesses avoid IL Secure Choice?

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.

// local guides

Illinois guides by city.

Find out where you stand — before the state does.

Book a free 15-minute compliance audit. We'll show your exact requirement, your real exposure, and whether your own plan saves you money.

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