June 22, 2023
Small Business Owners Need Your Help: Illinois Secure Choice State Mandate Deadline
November 1, 2023 Deadline.
*Several states have passed mandates that require small business owners to offer a retirement plan to their employees or enroll them in a state-mandated plan. Businesses that do not comply can be fined.
That’s where you come in, help business owners avoid fines, and take advantage of tax credits offered to employers who open a retirement plan for their employees – Up to $5,000 for three years – this and other tax credits are NOT available to employers who choose to adopt a state-mandated plan.
All Illinois employers are required by law to: Either enroll their employees in the Illinois Secure Choice Retirement Savings program if they do not currently have an employee retirement plan in place or create a retirement plan of their own!
What is a qualified employer-sponsored retirement plan?
Under the Internal Revenue Code 401(a), qualified plans are retirement plans. A SEP IRA, SIMPLE IRA, 401(k), 403(b) if a non-profit, or 457(b) for governmental plans are examples.
Important 2023 due dates for Illinois Secure Choice
Currently – All employers with 16-plus employees
November 1, 2023 – All employers with 5 to 15 employees
If employers fail to enroll eligible employees, they could face a $100 penalty per employee per year, up to a maximum of $5,000 annually. An employer SEP or SIMPLE IRA plan that meets state mandate requirements excuses the employer from any potential state-imposed penalties for non-compliance.
Utilize SECURE 2.0 with the right knowledge
and take advantage of these excellent resources to start the SIMPLE or SEP IRA Simply Makes Sense conversation today!
Illinois Secure Choice Retirement Savings Program
IRS Retirement Topics – Automatic Enrollment
Which states have mandatory retirement plans?
In an environment that is challenging to attract and retain high-quality talent, a SIMPLE IRA or SEP IRA may be just the alternative some employers/employees are looking for to provide a more employee-centric and customized retirement plan.
