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UPDATED SEPTEMBER 2026 · STATUTE-VERIFIED

Illinois Retirement Mandate: IL Secure Choice

My Illinois Savings (formerly Illinois Secure Choice) is enforcing now. It applies to Illinois employers with 5+ employees (every quarter of the prior year) that do not offer a qualifying retirement plan. Penalty: Up to $500 / employee / yr (escalating). Upcoming: Newly eligible employers by 2026-11-01.

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?

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

Informational only, not legal or tax advice.

Annual exposure · Illinois
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Get your full breakdown + a private-plan savings estimate:

// verified to the statute

My Illinois Savings (formerly Illinois Secure Choice) at a glance.

Who is covered

My Illinois Savings (formerly Illinois Secure Choice) 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: $250 per employee (first non-compliant year); $500 per employee (each subsequent year). Penalties are being assessed now.

Deadlines

Upcoming: Newly eligible employers by 2026-11-01. Already passed: 16–24 employees (2022-11-01); 5–15 employees (2023-11-01) — unregistered employers should register or certify an exemption now.

Source

820 ILCS 80/5, 80/60, 80/85 (as amended by P.A. 104-100, eff. 2025-08-01) · Official program: myilsavings.com · Verified 2026-09-17.

// 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.

What is My Illinois Savings (formerly Illinois Secure Choice)?

My Illinois Savings (formerly Illinois Secure Choice) is Illinois's state-facilitated retirement savings program. It is enforcing now. Program: https://myilsavings.com.

Who must comply with My Illinois Savings (formerly Illinois Secure Choice)?

My Illinois Savings (formerly Illinois Secure Choice) 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.

What is the My Illinois Savings (formerly Illinois Secure Choice) penalty?

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

When are the My Illinois Savings (formerly Illinois Secure Choice) deadlines?

Upcoming: Newly eligible employers by 2026-11-01. Already passed: 16–24 employees (2022-11-01); 5–15 employees (2023-11-01) — unregistered employers should register or certify an exemption now.

How do Illinois employers become exempt?

Exempt with 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. A private 401(k) or SIMPLE IRA satisfies the mandate and may qualify for SECURE 2.0 startup credits.

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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