Illinois Secure Choice Savings Program

Illinois launched the Secure Choice Savings Program in 2018 with phased implementation based on employer size. As of September 1, 2023, all employers with five or more employees that have been in business for two or more years are required to participate unless they have an employer-sponsored retirement plan in place. The chart below illustrates a brief summary of the program.


Feature State IRA Plan Employer Sponsored 401k
Plan Type Payroll Deduction Roth IRA Pre-tax, Roth AND Employer Contributions
Contribution Limits Limited to $7,000 (2024) $23,000 (plus more if over age 50)
Compliance Penalty of $250 per employee for the first calendar year or $500 per employee for each subsequent calendar year of noncompliance Compliant with state program
Eligibility 18 years old and employed, full-time or part-time, in the state of Illinois Employer controls eligibility requirements
Plan Costs $16.00 annually paid by the employee and 0.32-0.45% depending on investment choice Dependent on type of plan design chosen.
Tax Deductible NO Employer contributions are tax deductible
Tax Credit Available NO Plan costs qualify for available tax credits
Default Contribution 5% of annual pay unless employee opts out or elects lower amount Employee choice
Auto Escalation Feature Yes, annually up to 10% NO
Minimum Employees to Participate 5 Any Number
Investments 3 Funds + BlackRock Target Date Series More than 25 funds in a variety of Morningstar categories

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