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Employer Registration
No, there are no industry-specific exemption for private-sector employers. Governmental entities are not covered by the state law.
Yes you can have a designee. An authorized representative of the employer will need to complete the registration process. The authorized representative can then add employees or representatives from an external non-payroll vendor as delegates to help facilitate the program. Representatives from your external payroll provider can be added as payroll representatives to assist as well.
The program began in July 2018 with a small pilot group of employers. The program has gone through its initial waves for larger employers with 25 or more employees and has rolled out to larger employers. Employers who do not comply with the Illinois Secure Choice Savings Program Act may be subject to fines and penalties as described in 820 ILCS 80/85. The registration deadlines for employers based on employer size is outlined below:
For more information on definitions of employer, employee, and employment, and number of employees, please see the administrative rules associated with the program.
The Board has established an implementation timeline that is available on this website (see FAQ above about the timeline for implementation). The account administrator will notify employers of the date(s) they may begin registration and start enrolling their employees and when that process must be complete. The account administrator will also provide employers with access to an online portal to register for the Program and facilitate enrollment of their employees.
Yes. Any business with employees in Illinois that does not offer or contribute to a qualified retirement plan, had at least 5 employees in every quarter of the previous year, and has been in business for at least 2 years will be required to facilitate the Illinois Secure Choice program for its employees. The goal is to make the process simple, clear, and easy. During each employer registration phase, the State will monitor compliance, reach out to employers, and provide technical assistance to help them meet deadlines and requirements. Employers who do not comply with the Illinois Secure Choice Savings Program Act may be subject to fines and penalties as described in 820 ILCS 80/85.
An employer-sponsored retirement plan includes a plan qualified under Internal Revenue Code sections:
It does not include payroll deduction IRAs.
It can be challenging for a small business to offer an employer-sponsored retirement plan, and many don’t. Employers tell us this program lets them provide retirement savings to their employees in a manageable way. Illinois Secure Choice helps small businesses attract and retain good employees—with zero employer fees. Employers simply pass information along to employees and handle payroll deductions. Through Illinois Secure Choice, employers can help their employees take responsibility for their own financial futures.
Enrollment Process
No. Employee signatures are not required to open employee accounts or to start making payroll deductions. A signature is necessary to make certain changes to accounts such as naming beneficiaries, changing contribution rates, changing investments, or taking withdrawals.
You need to provide the program with certain information about your business and employees. The program will then reach out directly to your employees with information on their options. Your employees will have 30 days to opt out or make adjustments to their savings rates or investment choices. At the end of the 30-day period, you will begin payroll deductions for all participating employees.
The amount of time to complete the employee enrollment process will vary, depending on how many employees you have and whether you enter them in one at a time or by bulk upload using an electronic format provided by the program. Initial enrollment may take as little as a few minutes but can take longer if you are entering large numbers of employees one at a time.
Illinois Secure Choice will make materials available online. Employers can provide materials electronically to their employees or print them out. If employers provide email addresses for their employees, the program can provide the materials directly to the employees on behalf of the employer. Some printed materials may be made available to employees as well.
No, you do not need to worry about identifying an existing account for an employee who tells you they already have one. You will simply provide basic information about the employee, and Illinois Secure Choice will use an employee's information to ensure new contributions go into the employee’s existing account.
Automatic enrollment means that following notification, employers will enroll eligible employees in Illinois Secure Choice unless employees have elected to opt out of the program.
You should refer the employee to the program website or call center for questions about the program or their Illinois Secure Choice account. Employees should contact their financial advisors for investment advice.
Illinois Secure Choice will provide a simple form for employees to use to change their contribution elections or opt out of the program. Forms can be completed on paper, online, or by phone. Employees do not need to fill out any paperwork to be automatically enrolled. Employees are encouraged to claim their accounts online, so that they can have access to retirement-related tools and information, and more. Employees will also work directly with Illinois Secure Choice to change their investment and account-related elections. Employees can obtain the relevant paper forms by contacting client services at (855) 650-6914.
The materials provided by Illinois Secure Choice will be simple and explain what the program is, what choices employees have, and where they can go to get more information and answers to any questions they have. Employees will be able to opt out or make elections online, by phone, by mail, or by using a simple paper form available online or through client services at (855) 650-6914.
Employers have 30 days from the date of hire to enroll a new employee in Illinois Secure Choice or accept their election to opt out of the program and then each employee enters a 30-day decision period.
Illinois Secure Choice will provide some materials in a number of commonly used languages in Illinois in addition to English. Translation services will be available for a broader range of languages by phone.
Eligibility
Employee count for the purpose of determining if an employer is covered by the state law is based on data coming from quarterly withholding income tax returns an employer submitted to the Illinois Department of Revenue across the previous calendar year. Specifically, this is Form IL-941 and the number of individuals listed on Schedule P as having Illinois withholdings. To be covered by the state law, an employer must have had at least five Illinois employees in every quarter of the previous calendar year.
Employers run payroll at different frequencies and with different methods while quarterly reports submitted to the Illinois Department of Revenue allow for consistent reporting across all employers.
Yes, however, they will only be enrolled and have an account created for them if they work for more than 60 days and if enough verifiable information is available to create an account in their name. If the program is unable to verify their information, their account will not be established.
Yes, if they have wages allocable to Illinois.
Yes, if they work for an employer for more than 60 days, which is the window for employers to enroll new hires in the program. If they work for less than 60 days, the employer will not need to enroll them.
Workers must have a verifiable Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN) to participate in the program. If a worker's information cannot be verified, the worker will not be enrolled and an account will not be established for them.
Yes, a worker with Illinois wages can choose to self-enroll in the program.
If your business is already sponsoring a qualified retirement plan, then your business is not required to facilitate Illinois Secure Choice. Employees can choose to self-enroll in the program if they would like but you are not required to facilitate payroll deductions for those employees.
Yes, if they are considered employees for tax purposes.
The employee count from the previous calendar year’s withholding income tax returns filed to the Illinois Department of Revenue is the relevant employee count. Private-sector employers that had at least five employees in every quarter of the previous year and that have been in business for at least two years must offer their own qualified retirement plan or facilitate Illinois Secure Choice. If in the current year, your employee count has dropped, please contact Client Services at clientservices@ilsecurechoice.com or (855) 650-6913 to discuss your situation.
No. You do not need to facilitate the program for full-time students in work-study programs.
No. Payroll deduction IRAs are not qualified retirement plans as defined by either federal or Illinois state statutes.
Yes. Business owners or shareholders can participate if they are considered employees for tax purposes.
No. If you offer an employer-sponsored retirement plan to any of your employees, you will not need to facilitate Illinois Secure Choice.
Yes, you would only need to facilitate the program for employees with income earned in Illinois.
No. If you offer an employer-sponsored retirement plan to any of your employees, you will not need to facilitate Illinois Secure Choice.
Yes, any business that has been in business for more than two years and that had five or more Illinois employees in each quarter of the previous calendar year will need to facilitate the Illinois Secure Choice program for its employees. Employers that do not comply with the requirement will be subject to enforcement, including financial penalties.
Please reference the Illinois Secure Choice Savings Program Act (820 ILCS 80/) for the definitions.
Employees are responsible for determining if they meet income limits and are not eligible to contribute to Roth IRA accounts. Program materials will include information on income limits to help employees give consideration to whether and how they can participate in the program.
Sending Contributions
No, Illinois Secure Choice does not allow employer contributions. The employer's role is limited to simply facilitating the program for employees.
No, Illinois Secure Choice does not allow employer contributions.
Yes, failure to timely remit deductions violates Illinois law, including wage and hour requirements. The State may impose penalties for deduction violations.
Account Access
Accounts will be tracked based on tax ID number or Social Security number.
Go to saver.ilsecurechoice.com and click "Set up your account."
If you choose to participate, you'll need to select a username and password before setting up your account.
If you choose to opt out, you won’t need to set up a username and password if you received notification within the past 30 days. After that point, you will need to set up a username and password to complete your opt out.
Yes. Contact Client Services via email at clientservices@ilsecurechoice.com or by phone at (855) 650-6913 Monday through Friday, 8 a.m. – 8 p.m. CST for assistance with your specific request. Forms can be mailed to Illinois Secure Choice, P.O. Box 56000, Boston, MA 02205-6000 or faxed to (617) 559-8920.
.You can access your account online at saver.ilsecurechoice.com or by calling (855) 650-6913. You will also receive periodic account statements via email or mail.
Your Roth IRA through Illinois Secure Choice belongs to you. If you still have Illinois sources of income from an employer that facilitates Illinois Secure Choice, you can continue to fund your account through payroll deduction. If your employer does not facilitate Illinois Secure Choice, you can still keep your account and, if you would like, make contributions on your own through bank drafts. You can also roll over or transfer your account into a Roth IRA outside of Illinois Secure Choice if the outside Roth IRA accepts rollovers or transfers.
Your Roth IRA through Illinois Secure Choice belongs to you. Your money remains in your account as your retirement savings. If your new employer facilitates Illinois Secure Choice, you will receive a notification and payroll deductions will begin at your new job unless you opt out. If your new employer offers an employer-sponsored retirement plan, then they are not required to facilitate the Illinois Secure Choice program, but you may be eligible for the employer-sponsored retirement plan. Additionally, you can continue to make contributions your Illinois Secure Choice account on your own through bank drafts.
You can opt out of participating at any time. If you opt out within 30 days after the program notifies you about the establishment of your account, no payroll deductions will be made from your paycheck on your behalf and your account will not be activated. If you choose to stop participating after contributions have begun, payroll deductions will end. You can leave the money in your account to grow your retirement savings, or you can transfer or roll over to another Roth IRA. You may also request a distribution, which may be subject to federal taxes. You may rejoin the program at any time by notifying the program or your employer that you would like to start contributing to your account again.
If your employer facilitates Illinois Secure Choice, you won’t need to do anything to enroll and start saving. Your employer will automatically enroll you unless you opt out. Remember, Illinois Secure Choice is completely voluntary. If your employer isn’t registered with Illinois Secure Choice or if you are self-employed, you can enroll on your own.
Eligibility
Yes. You can opt out at any time online at saver.ilsecurechoice.com; by calling at (855) 650-6913 Monday through Friday, 8 a.m. – 8 p.m. CST; or by mailing an Opt Out form to the program.
Only if you have earned income. If you do have earned income you can sign up on your own or be invited through a facilitating employer.
Yes, you can rejoin at any time by notifying your employer that you would like to start contributing to your account again.
There is no mandatory waiting period, but the enrollment process takes 60 days. If you work for an employer for less than 60 days, you will not be enrolled by that employer.
In general, qualified retirement accounts are not counted for federal financial aid; however, you should carefully review your own circumstances with a tax expert or financial advisor. Withdrawals from IRAs can also jeopardize financial aid for the year following the withdrawal. For more information, check with your financial aid office.
In general, federal benefits programs do not count retirement assets against a person's eligibility. For more information, check with your benefits office.
You can opt out online at saver.ilsecurechoice.com; by calling (855) 650-6913 Monday through Friday, 8 a.m. – 8 p.m. CST; or by mailing an Opt-out Form to the program.
Yes, if you are 18 or older, have earned income, and are eligible to contribute to an IRA, you can join the program at saver.ilsecurechoice.com. You can contribute through your bank account or you may be able to contribute through payroll deductions if your employer is willing to set up a deduction for you.
Yes, if you are 18 or older, have earned income, and are eligible to contribute to an IRA, you can join the program at saver.ilsecurechoice.com and contribute through your bank account.
The standard account option for savers will be a Roth IRA. The maximum income limits for Roth IRA savers are set by the federal government. For 2023, the maximum income limits are $153,000 for a single tax filer and $228,000 for married taxpayers filing jointly. At this time, Illinois Secure Choice offers Traditional IRAs to savers who are not eligible to contribute to a Roth IRA and need to recharacterize prior year contributions. Traditional IRAs do not have an income limit.
Yes, if you are 18 or older, have earned income, and are eligible to contribute to an IRA, you can join the program at saver.ilsecurechoice.com and contribute through your bank account.
If your employer is required to facilitate Illinois Secure Choice, your employer will register with the program and then you will receive an invitation from Illinois Secure Choice. You will be able to choose to remain in the program or opt out.
Contributions
Yes, you can choose a savings rate of as little as 1 percent and as much as 100% of your available wages in 1 percent increments, up to annual Roth IRA contribution limits. Please note that contributions are made post-tax, and your employer can’t deduct more than the amount of compensation available after other payroll deductions that have higher preference as required by law are deducted. You can make changes to your contribution rate online or by phone.
Yes, you can contribute to more than one savings plan or account at a time. Please note, however, that the IRS contribution limits for Roth IRAs are cumulative for all Traditional and Roth IRAs owned by an individual.
Yes, you can roll over money from another plan into your Illinois Secure Choice account. You should consult with a tax expert or financial advisor before making any changes to better understand any steps to take and restrictions that may apply. For instance, for rollovers from pre-tax retirement plans like 401(k)s and 403(b)s, money will be taxed to convert it from pre-tax to post-tax status for inclusion in a Roth IRA. You can initiate a rollover by calling the Client Services team at 855-650-6914.
No; however this feature may be available in the future.
Yes, you can elect to opt out of the automatic 1% annual increase by logging into your account to manage your contribution preferences.
Yes, savers who have been in the program for at least 6 months will have their contribution rate automatically increased by 1% on January 1 of each year, up to a limit of 10%, but can opt out of the automatic increases at any time.
If you contribute through your employer, every pay period your employer will deduct your contribution from your paycheck and remit it to your account. You can also make contributions yourself through your bank account or by check.
There is no minimum retirement age associated with the program. However, there may be a federal tax penalty if you withdraw any investment earnings from a Roth IRA before age 59½, unless it’s for a qualifying reason. For a Traditional IRA, there is a required minimum distribution when you reach age 72. Please consult with a tax expert or financial advisor for information specific to your own circumstances.
Illinois Secure Choice will monitor your account contributions and notify your employer to stop contributions when you are nearing the limit. Please note, Illinois Secure Choice will not have information on your eligibility to contribute to a Roth IRA, or any other IRAs you may maintain and contribute to. It is your responsibility to ensure that across all your IRAs, you are contributing within the IRS’ annual limits. Please consult a tax expert or financial advisor to discuss your specific circumstances.
The IRS' annual IRA contribution limits apply to the combined amount contributed to all of your IRAs, both Traditional and Roth.
For Roth IRAs, contributions are made on an after-tax basis. The percentage contributed is based on your gross income earned with your facilitating employer and is deducted from your after-tax income.
Illinois Secure Choice acts as a payroll deduction IRA, not a retirement plan as defined for the W-2, so you won’t see your contributions reflected on your W-2.
Your IRA trustee will file a Form 5498, IRA Contribution Information, with the IRS and you will receive a copy no later than May 31. This does not need to be filed with your taxes but should be kept with your tax records as documentation of your contributions for a particular tax year.
Your contribution rate is based on gross income earned with your facilitating employer.
Yes, contribution limits for Roth IRAs are set by the federal government. For 2023, you can save up to $6,500 per year if you’re younger than 50 and $7,500 per year if you’re 50 or older, as long as you have that much in compensation and are under certain income levels based on your modified adjusted gross income. This contribution limit applies across all IRAs you may have (both Traditional IRAs and Roth IRAs with the State and elsewhere).
There is no upper limit on the percentage of income that can be contributed; however, Roth IRAs have annual contribution limits based on your modified adjusted gross income. Please also note that contributions are made post-tax, and your employer can’t deduct more than the amount of available compensation after they have made any other payroll deductions that have higher preference as required by law.
The standard contribution is 5 percent of gross income earned with your facilitating employer. You can choose to save more, or less, at 1 percent increments.
Distributions
Yes, you can take distributions from your account at any time. You may want to consult a tax expert or financial advisor to help you consider your best sources of income if you are retired and working and if a distribution makes sense.
No. Savers have the same rights to withdraw amounts from their Illinois Secure Choice Roth IRA as they would for any other Roth IRA. However, a federal 10 percent early withdrawal penalty may apply on the taxable amount if you are under age 59 ½ and no exception for the penalty applies. Please consult with a tax expert or financial advisor for information specific to your circumstances.
You can keep your money in your Secure Choice Account, roll it over into another Roth IRA, or take your money out entirely – it’s your money and your decision, although some taxes or penalties may apply depending on when or for what purposes you withdraw your money.
Yes, you can take your money out of your Roth IRA at any time. There is no fee or penalty for withdrawing your contributed amounts. However, investment earnings are subject to taxation and an additional penalty if taken out before age 59½, and before you’ve had your first Roth IRA for five years unless you qualify for the first time homebuyer exception to the penalty. Please consult with a tax expert or financial advisor for information specific to your own circumstances.
You can withdraw your contributions for any reason at any time without taxation. In certain circumstances, distributions from a Roth IRA that include investment earnings can also be used toward the down payment for first-time homebuyers. Investment earnings are subject to taxation and an additional penalty if taken out before age 59½ and before you’ve had your first Roth IRA for five years unless you qualify for the first-time homebuyer exception to the penalty. Please consult with a tax expert or financial advisor to determine what steps and restrictions may apply to you.
There is no administrative fee or penalty for withdrawing your contributions to a Roth IRA. However, investment earnings are subject to taxation and an additional 10 percent penalty if taken out before age 59½, and if your first Roth IRA has been open for fewer than five years. Please consult with a tax expert or financial advisor for information specific to your own circumstances.
There is no minimum retirement age associated with the program. However, there may be a federal tax penalty if you withdraw any investment earnings from a Roth IRA before age 59½, unless it’s for a qualifying reason. For a Traditional IRA, there is a required minimum distribution when you reach age 72. Please consult with a tax expert or financial advisor for information specific to your own circumstances.
You can take your money out of your Roth IRA at any time. There is no fee or penalty for withdrawing your contributed amounts (although you may miss them at retirement time if you’ve taken the money early for non-retirement purposes). Investment earnings are subject to taxation if taken out before age 59½, and if your first Roth IRA has been open for fewer than five years. Please consult with a tax expert or financial advisor for information specific to your own circumstances. Please allow up to 10 business days for the proceeds to reach you. Distributions will generally be processed within 3 business days of accepting the request. During periods of market volatility and at year-end, distribution requests may take up to 5 business days to process. For security purposes, there will be a hold of 9 business days on distribution requests when there is a change to your address and a hold of 15 calendar days on distribution requests following a change to your banking information. Distributions of contributions made by check, wire or ACH will not be available for withdrawal for 7 business days.
If you die and have no named beneficiaries, the account will be payable to your estate under the terms of the IRA. Accounts that become unclaimed property will be subject to applicable law.
Investments
Yes, the program has a private investment consultant that provides input and feedback about investments to the Board.
A Target Retirement Fund is designed to help manage investment risk and is based on two factors: an investor’s current age and estimated retirement date. This type of fund is composed of a mix of investments—stocks, bonds, and cash equivalents—that evolve over time to focus on growth for younger investors and to help preserve savings as investors get closer to retirement age.
The Illinois Secure Choice Board is responsible for making decisions about the investments options available to participants of the program.
For the most part, the funds offered through Illinois Secure Choice use passive management.
The program does allow for Traditional IRAs. Contact the Client Services team at 855-650-6914 for more information.
Information about each investment is available online at saver.ilsecurechoice.com or by calling (855) 650-6914 so that participants know exactly in which fund(s) their money is being invested.
Banks are best known for offering checking and savings accounts that pay interest, although they also offer other savings and investment products. An Illinois Secure Choice IRA allows you to save through payroll deduction and invest using a focused set of choices for this retirement program. Illinois Secure Choice offers a Capital Preservation fund, Target Date retirement funds, a Conservative fund, and a Growth fund.
All investing involves some risk, including the risk of loss. There are other risks to consider as well, such as: not saving enough, outliving your savings, and the risks posed by inflation to the savings you accumulate. Illinois Secure Choice offers a range of investments with various levels of risk to help you meet your goals depending on your age, distance from retirement, and risk tolerance. Illinois Secure Choice offers a Capital Preservation option, and also offers market-based investments like the target retirement funds and a growth option. While there is always a risk of loss, investing for retirement should be approached with a long-term goal to grow your savings over time. The nature of the market is to fluctuate — there’s no way to time your investment activity to only benefit from positive gains in the market.
No. All investing involves some risk and there is no guarantee of earnings or future results. However, the program offers a capital preservation fund, which seeks maximum safety.
While there is always a risk of loss, investing for retirement should be approached with a long-term goal to grow your savings over time. The nature of the market is to fluctuate — there’s no way to time your investment activity to only benefit from positive gains in the market. Illinois Secure Choice offers investment options with various risk levels so you can choose the one(s) that fit your risk tolerance.
The expense ratios and other information for the funds can be found online at:
Illinois Secure Choice Capital Preservation Fund
State Street Instl Liquid Reserves Instl
Illinois Secure Choice Conservative Fund
Schwab US Aggregate Bond Index
Illinois Secure Choice Growth Fund
Schwab® S&P 500 Index
Illinois Secure Choice Target Date Fund
BlackRock LifePath® Index Retire K
It’s important to note that the 0.75 percent fee for the program covers the operating expenses of the investment funds in which the investment options are invested.
The Illinois Secure Choice Board has selected Ascensus as the program’s administrator. Based in Pennsylvania and with offices nationwide, Ascensus is an experienced retirement and college savings services provider. Ascensus acts as the Roth IRA trustee, manages account records, operates the website (www.ilsecurechoice.com), receives and processes retirement contributions and distributions, and provides customer service.
Should you not select a specific investment fund, your contributions will be allocated to the Illinois Secure Choice Target Retirement Fund.
You can visit the program website for more information or talk to a financial advisor about investment options.
No. Saver’s money will be invested in the IRA Investment Option chosen by the saver from a menu of options. Your account balance will be tracked at an individual level so that you will always be able to tell how much is in your account.
Saver's Credit
Yes, participants may be able to take advantage of the Saver's Credit if they meet the eligibility requirements. The Saver's Credit is a federal tax credit available for those who make contributions to their retirement plan. Visit https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit for more information. Please also consider consulting with a tax expert or financial advisor to determine if you qualify for the Saver’s Credit.
Timeline
The registration deadlines for employers based on employer size is outlined below:
For more information on definitions of employer, employee, and employment, and number of employees, please see the administrative rules associated with the program.
Fees & Costs
The program has minimal staff. It is overseen by the Illinois Secure Choice Board, and it is managed by a private, professional program administrator with extensive experience in IRAs and record keeping.
Yes, as with any investment or retirement program, there are Administrative and Activity-based Fees. Fees are automatically deducted, so you will not receive a bill.
The Administrative Fee for each investment option is approximately 0.32% to 0.45% depending on investment choice(s). This means you pay $0.32 to $0.45 annually for every $100 in your account for program operations and the underlying investment(s) you choose. The fee is computed daily and netted from the assets in an investment option. Investment returns are credited to saver accounts ‘net of’ this cost. There is also a $4 per quarter ($16 annual) Fixed Account Fee.
There is a $1.25 per quarter ($5 annual) Paper Delivery Fee that can be waived by switching to electronic delivery of both Account Statements and Transaction & Profile Confirmations. Log in to update your delivery preferences.
There is also a $5 fee per paper check for delivery of funds by paper check. Establish an electronic bank transfer (ACH) to avoid Paper Check Fees. Log in to enter banking information.
These fees cover all administrative costs associated with the program, such as the cost of maintaining your account; oversight of the program’s investments; providing customer service; keeping records; online and phone services; and the operating expenses of the underlying investment funds in which the investment options are invested.
The initial registration and enrollment process is expected to take a few hours at most. The time needed to complete payroll deductions for the program should be comparable to the time needed to make other types of payroll deductions. There is no fee for employers to facilitate the program.
No. There are no employer fees, and employers are not required to contribute to the program.
You can email Client Services at clientservices@ilsecurechoice.com, or call (855) 650-6913, Monday – Friday, 8 a.m. – 8 p.m. CST.
Security
Accounts are structured as Roth IRAs, which may be protected from creditors. Circumstances vary, and savers should consult an appropriate expert if they need an opinion on their specific circumstances.
Yes, Illinois Secure Choice has processes in place to protect the security of employee accounts and information.
Yes, Illinois Secure Choice has processes in place to protect the security of employee contributions to their accounts.
No, reporting will not be made for the purpose of determining immigration status.
Miscellaneous
Several other states have passed legislation creating similar retirement savings programs. For instance, Oregon, California, and Connecticut have all launched programs similar to Illinois Secure Choice. For more information on state activity, visit the Georgetown University Center for Retirement Initiatives.
Yes, a range of similar programs have been developed and used in a number of countries over the last two decades. These workplace-based programs are very popular with savers and are changing retirement outcomes in these countries. One program, called the National Employees Savings Trust (NEST), has been successfully implemented in the United Kingdom over the course of the last five years. New Zealand also has a similar program. Oregon and California have already implemented workplace-based retirement programs. Illinois's program is modeled after these plans as well as successful large employer plans in the U.S.
Illinois Secure Choice is designed to combine some of the features of employer plans and IRAs, making it easier to save by lowering the barriers that often keep people from saving. For example, to start an IRA on your own, you have to go find a financial institution that offers an IRA. This program, however, allows you to save at work into a program managed on your behalf. Enrollment is automatic, and contributions are made through payroll deductions. This program is also portable and can move with you from one job to the next.
Customer service representatives are fully trained in all aspects of the program. The staff includes representatives with considerable training and expertise related to retirement plans.
Illinois is one of the first states to implement this type of program. Oregon and California have already implemented workplace-based retirement programs. Several other states are planning to implement similar programs in the near future.
No. Employers are only responsible for facilitating the program for employees.
No, this program is not meant to replace or compete with 401(k) or other employer-sponsored retirement plans. It is meant to help employers who don't have the time, money, or resources to offer a 401(k) plan.
No. This program is not related in any way to SERS. It is not a pension plan. It is for private sector employees to save their own money in their own individual accounts.
More people saving for retirement will mean more self-reliance when people reach retirement age and less strain on social services.
The Illinois Secure Choice Board have seven members: The Illinois State Treasurer or his or her designee, who serves as chair, the Illinois State Comptroller or his or her designee, the Director of the Governor's Office of Management and Budget or his or her designee, and four Appointees.
Illinois Secure Choice Savings Program was created by the Illinois Secure Choice Savings Program Act [820 ILCS 80].
Yes, each year the program issues an Annual Report. The FY2023 Annual Report is available here.
Yes, each year the program issues an audit report completed by Landmark, an external accounting and advisory firm. The FY2023 report can be found here.
Information and resources, including tutorials, are available online at www.saver.ilsecurechoice.com. Trained, knowledgeable account service professionals can also be reached by phone at (855) 650-6913 Monday through Friday, 8 a.m. – 8 p.m. CST.
The retirement savings crisis is a serious problem here in Illinois and throughout the nation. There have been proposals to create a program like this at the national level to help address the crisis and make it easier for people to save. For now, a nationwide program seems unlikely, even though the crisis continues to grow. In response, most states have begun considering programs similar to the Illinois program. Several other states have also passed legislation to create similar programs.
Illinoisans and Americans at large are not saving enough for retirement. The median working-age family has only $7,800 saved for retirement, and nearly half of working-age families have nothing saved at all1. The legislature created Illinois Secure Choice to improve people’s access to and outcomes for retirement savings. The program is designed to lower barriers wherever possible, by using automatic enrollment and savings through payroll deductions to make it easier for people to save. Research shows that people are 15 times more likely to save if they have a savings option through work. This program helps fill a gap in the market that is not currently being filled.2
1Economic Policy Institute, The State of American Retirement Savings, 20192AARP Public Policy Institute
2AARP Public Policy Institute
Yes, the call center will offer assistance in English and Spanish and will have access to translation services for other languages. Certain materials may also be available in Spanish.
No. Assets are remitted directly to Illinois Secure Choice on behalf of workers, and credited directly to IRA accounts in those workers' names. Accounts are not accessible to the State for other purposes and are not tied to any other retirement plans offered by the State, including SERS.
Yes, this program will help ensure that Illinoisans have more choices, more information, and easier access to retirement savings accounts. Consumer protections are part of the program and may be enforced through state agency actions.
The Illinois program isn't intended to replace employer-sponsored retirement plans, which have many important benefits. For example, 401(k) plans have higher employee contribution limits and allow for employer matching contributions, unlike Illinois Secure Choice.
It’s easy – just ask. Contact your employer to determine if they facilitate Illinois Secure Choice.
If your employer has 5 or more employees, has been in business for at least 2 years, and doesn't offer an employer-sponsored retirement plan to its employees in Illinois, it must offer the Illinois Secure Choice program.
Complete information about Illinois Secure Choice can be found in the Program Description.
Inscripción
Sí. El servicio de atención al cliente está a la disposición a través del teléfono (855) 650-6914 de 8 a.m. a 8 p.m., hora Central, lun.-vie. Al comienzo de la llamada, el menú de opciones ofrece la opción de seleccionar el 2 para hablar con un representante en español.
Es fácil, basta con preguntar. Contacta a tu empleador para determinar si facilita Illinois Secure Choice.
Si tu empleador tiene 5 o más empleados que trabajan a tiempo completo o tiempo parcial, tiene más de 2 años de actividades y no ofrece a sus empleados un plan de jubilación patrocinado por el empleador en Illinois, tiene la obligación de ofrecer el programa Illinois Secure Choice.
El sitio web ofrece recursos clave en español en https://employer.ilsecurechoice.com/home/employers/resources.html bajo Materiales para los ahorristas.
Proceso de inscripción
Si tu empleador ofrece Illinois Secure Choice, tú no tienes que hacer nada para inscribirte y comenzar a ahorrar. Tu empleador te inscribirá automáticamente a menos que elijas excluirte. Recuerda que Illinois Secure Choice es un programa totalmente voluntario para los ahorristas.
Si se requiere a tu empleador que facilite el programa Illinois Secure Choice, entonces primero se inscribirá en el programa y después te inscribirá a ti de forma automática. Después recibirás notificaciones de Illinois Secure Choice sobre tu inscripción automática e instrucciones sobre cómo excluirte o hacer cambios en tus elecciones de ahorro estándar.
Puedes llamar al teléfono (855) 650-6914 de lunes a viernes, de 8 a.m. a 8 p.m., hora Central, para hablar en español con un representante de atención al cliente o un profesional financiero.
Acceso a la cuenta
Sí. Contacta al servicio de atención al cliente por teléfono al (855) 650-6914, de lunes a viernes, de 8 a.m. a 8 p.m., hora Central, para obtener asistencia.
Para solicitar el saldo de tu cuenta, llama al teléfono (855) 650-6914. También vas a recibir estados de cuenta periódicos (en inglés) por correo postal o correo electrónico. Si necesitas ayuda para leer tu estado de cuenta en inglés, llama al servicio de atención al cliente al teléfono 855-650-6914 y selecciona la opción 2 en el menú para hablar con un representante en español.
Tu cuenta Roth IRA de Secure Choice es una cuenta individual que te pertenece a ti. Si aún tienes fuentes de ingresos en Illinois de un empleador que provee Illinois Secure Choice, puedes seguir participando en el programa a través de deducciones de nómina. Si tu empleador no ofrece ILSC, el programa va a permitir que en el futuro sigas haciendo depósitos directos por cuenta propia a través de depósitos directos desde tu cuenta bancaria.
Tu cuenta Roth IRA de Secure Choice es una cuenta individual que te pertenece a ti. Tu dinero permanece en tu cuenta como ahorros para tu jubilación. Si tu empleador nuevo ofrece Illinois Secure Choice, recibirás una notificación para inscribirte y en tu empleo comenzarán a hacerte deducciones de nómina a menos que te excluyas del programa. Si tu empleador nuevo ya ofrece un plan de jubilación patrocinado por el empleador, entonces no tiene que ofrecer el programa Illinois Secure Choice, pero podrías ser elegible para el plan de jubilación patrocinado por el empleador.
Puedes excluir tu participación en cualquier momento. Si te excluyes durante los siguientes 30 días en que el programa te notifique de la creación de tu cuenta, no se hará ninguna deducción de tu cheque de nómina y no se activará tu cuenta. Si eliges dejar de participar después de que hayan comenzado las contribuciones, las deducciones de nómina cesarán. Podrás dejar el dinero en tu cuenta a fin de aumentar tus ahorros para la jubilación o podrás transferirlo a otra cuenta Roth IRA. También podrás solicitar una distribución, aunque podría estar sujeta a impuestos federales. Podrás inscribirte nuevamente en el programa en cualquier momento enviando una notificación al programa o a tu empleador de tu intención de volver a aportar contribuciones a tu cuenta.
Elegibilidad
Sí. Puedes excluir tu participación en cualquier momento llamando al teléfono 855-650-6914 de lunes a viernes, de 8 a.m. a 8 p.m., hora Central; o enviando un formulario de exclusión (disponible en español) al programa en: Illinois Secure Choice, PO Box 56000, Boston, MA, 02205-6000.
Solo si tiene ingresos. Si tiene ingresos, puede inscribirse solo o lo pueden invitar a través de un empleador facilitador.
Sí, puedes inscribirte nuevamente en cualquier momento enviando una notificación al programa de tu intención de volver a aportar contribuciones a tu cuenta.
No hay un período de espera obligatorio, pero el proceso de inscripción dura 30 días. Si trabajas para un empleador menos de 30 días, no podrás participar a través de ese empleador.
En general, las cuentas de jubilación calificadas no cuentan para obtener ayuda financiera federal, sin embargo, debes examinar cuidadosamente tus circunstancias con un experto en impuestos o un asesor financiero. Los retiros de las cuentas IRA también pueden poner en peligro la ayuda financiera el año después que se hace el retiro. Consulta con tu oficina de ayuda financiera para obtener más información.
En general, los programas de beneficios federales no consideran los bienes para la jubilación para definir la elegibilidad de una persona. Consulta con tu oficina de beneficios para obtener más información.
Puedes excluir tu participación llamando al (855) 650-6914 de lunes a viernes, de 8 a.m. a 8 p.m., hora Central; o enviando un formulario de exclusión (disponible en español) que puedes obtener en https://saver.ilsecurechoice.com/home/savers/forms.html a: Illinois Secure Choice, PO Box 56000, Boston, MA 02205-6000
Sí, si es mayor de 18 años, tiene ingresos y es elegible para contribuir a una cuenta de jubilación individual (IRA), puede unirse al programa en saver.ilsecurechoice.com. Puede contribuir a través de su cuenta bancaria o puede contribuir a través de deducciones de nómina si su empleador acepta hacerle la deducción.
Sí, si es mayor de 18 años, tiene ingresos y es elegible para contribuir a una cuenta de jubilación individual (IRA), puede unirse al programa en saver.ilsecurechoice.com y contribuir a través de su cuenta bancaria.
La opción de cuenta estándar para ahorristas será una IRA de Roth. El gobierno federal fija los límites de ingresos máximos para los ahorristas de IRA de Roth. Para 2022, los límites de ingresos máximos son $144,000 para un declarante de impuesto único y $214,000 para contribuyentes casados que hacen declaraciones conjuntamente. En este momento, Illinois Secure Choice ofrece IRA tradicionales a los ahorristas que no son elegibles para contribuir a una IRA de Roth y se deben recaracterizar las contribuciones del año anterior. Las IRA tradicionales no tienen límite de ingresos.
Sí, si es mayor de 18 años, tiene ingresos y es elegible para contribuir a una cuenta de jubilación individual (IRA), puede unirse al programa en saver.ilsecurechoice.com y contribuir a través de su cuenta bancaria.
Contribuciones
Sí, puedes elegir una tasa de ahorro tan baja como el 1 % y tan alta como el 100 % de tu salario disponible, en incrementos del 1 %, hasta el límite de contribuciones anuales para las cuentas Roth IRA. Ten en cuenta que las contribuciones se hacen después de los impuestos y que tu empleador no puede deducir ninguna cantidad que supere la compensación disponible después de restar otras deducciones de nómina que tengan precedencia de conformidad con las leyes vigentes. Puedes hacer cambios a tus contribuciones llamando al teléfono (855) 650-6914.
Sí, puedes aportar dinero a más de un plan o cuenta de ahorro a la vez. Sin embargo, recuerda que los límites de contribución del IRS para las cuentas Roth IRA son acumulativos para todas las cuentas Roth IRA y Tradicionales que pertenezcan a la misma persona.
Por ahora no, pero el estado espera autorizar las transferencias a comienzos del 2019. Ten en cuenta que los participantes deben consultar con un experto en impuestos o un asesor financiero antes de hacer cualquier cambio para comprender las medidas que vayan a tomar y sus posibles restricciones. Para hacer transferencias de planes de jubilación antes de impuestos, tales como de cuentas 401(k) y 403(b), el dinero estará sujeto a impuestos a fin de cambiar su condición de "antes de impuestos" a "después de impuestos", para así agregarlo a una cuenta Roth IRA.
Por ahora no, aunque esta modalidad podría ofrecerse en el futuro.
Sí, puede optar por darse de baja del aumento de 1 % anual automático si inicia sesión en su cuenta para gestionar sus preferencias de aportación.
Sí, los ahorradores que han estado en el programa durante al menos 6 meses tendrán su tasa de contribución aumentada automáticamente en un 1 % el 1 de enero de cada año, hasta un límite del 10 %, pero pueden optar por no participar en los aumentos automáticos en cualquier momento.
Si contribuye a través de su empleador, cada período de pago su empleador deducirá su contribución de su cheque de pago y lo remitirá a su cuenta. También puede hacer contribuciones a través de su cuenta bancaria o con un cheque.
No hay una edad de jubilación mínima asociada con el programa. Sin embargo, puede haber una sanción fiscal federal si retira las ganancias de su inversión de una IRA de Roth antes de los 59 años y medio de edad, a menos que sea por un motivo que califique. Para una IRA tradicional, hay una distribución mínima requerida cuando llega a los 72 años de edad. Consulte a un experto impositivo o asesor financiero para obtener información específica a sus propias circunstancias.
Illinois Secure Choice supervisará las contribuciones a tu cuenta y solicitará a tu empleador cesar las contribuciones cuando estés cerca del límite. Ten en cuenta que Illinois Secure Choice no tendrá información sobre tu elegibilidad para contribuir a una cuenta Roth IRA o a ninguna otra cuenta IRA que puedas tener y a las cuales aportes dinero. Tú debes asegurarte de que tus contribuciones a todas tus cuentas IRA no superen los límites anuales del IRS. Consulta con un experto en impuestos o un asesor financiero sobre tus circunstancias específicas.
Los límites anuales del IRS para las contribuciones aplican a la suma de los fondos aportados a todas tus cuentas IRA (Tradicional y Roth).
Illinois Secure Choice funciona como una cuenta IRA de deducciones de nómina, no un plan de jubilación definido para el W2, así que no verás las contribuciones reflejadas en tu formulario W2.
El administrador de tu cuenta IRA entregará al IRS un formulario 5498 (información sobre contribuciones a cuentas IRA) y se te enviará una copia de tu estado de cuenta por correo postal a más tardar el 31 de mayo de cada año. No tienes que incluir esta información en tu declaración de impuestos, pero debes conservarla con tus expedientes fiscales como prueba de tus contribuciones durante un año fiscal particular.
Sí, el Gobierno federal define los límites de las contribuciones para las cuentas Roth IRA. Para el 2023, puedes ahorrar hasta $6,500 cada año si tienes menos de 50 años de edad y $7,500 si tienes 50 años de edad o más, siempre que lo permita tu salario y tus ingresos se mantengan por debajo de ciertos niveles basados en tu ingreso bruto ajustado modificado. Este límite de contribuciones aplica a todas las cuentas IRA que puedas tener (tanto cuentas IRA Tradicional como Roth IRA con el estado y terceros).
Distribuciones
Inversiones
Un fondo basado en la edad se refiere a un fondo que se enfoca en cierto nivel de riesgo basado en dos factores: la edad actual del inversionista y una estimación aproximada de su fecha de jubilación. Un fondo basado en la edad desarrolla su mezcla de inversiones —acciones, bonos y equivalentes en efectivo— a través del tiempo a fin de lograr el crecimiento para los inversionistas más jóvenes y ayudar a preservar sus ahorros a medida que se aproximan a la edad de jubilación. Los fondos de jubilación con objetivos (Target Retirement Funds) de Illinois Secure Choice son un tipo de fondos basados en la edad.
La información sobre cada inversión está disponible en línea en saver.ilsecurechoice.com o llamando al (855) 650-6914 para que los participantes sepan exactamente en qué fondo(s) se está invirtiendo su dinero.
Los bancos se conocen mejor por ofrecer cuentas de cheques y de ahorros que pagan intereses, aunque a veces también ofrecen otros productos de ahorro e inversión. Una cuenta Roth IRA de Illinois Secure Choice te permite ahorrar a través de deducciones de nómina e invertir utilizando un conjunto específico de opciones para este programa de jubilación. Illinois Secure Choice ofrece un fondo de conservación del capital (Capital Preservation fund), fondos de jubilación con fecha determinada (Target Date retirement funds), un fondo conservador (Conservative fund) y un fondo de crecimiento (Growth fund).
La Junta de Elección Segura de Illinois ha seleccionado a Ascensus como administrador del programa. Con sede en Pensilvania y oficinas en todo el país, Ascensus es un proveedor experimentado de servicios de ahorro para la jubilación y la universidad. Ascensus actuará como fideicomisario de la cuenta IRA Roth, administrará los registros de cuentas, operará el sitio web (www.ilsecurechoice.com), recibirá y procesará las contribuciones y distribuciones para la jubilación y brindará servicio al cliente.
Si no seleccionas un fondo de inversión específico, tus contribuciones se invertirán en la opción predeterminada: el fondo de jubilación con fecha determinada (Illinois Secure Choice Target Retirement Fund).
Crédito del ahorrador
Los participantes podrían tener derecho al Crédito del ahorrador si cumplen ciertos requisitos de elegibilidad. El Crédito del ahorrador es un crédito fiscal federal que se ofrece a todas las personas que aportan contribuciones a su plan de jubilación. Visita https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit para obtener más información. Considera consultar con un experto en impuestos o un asesor financiero para ver si calificas para el Crédito del ahorrador.
Cronología
El programa comenzó en julio de 2018 con un pequeño grupo piloto de empleadores. El programa ha pasado por sus etapas iniciales para empleadores más grandes con 25 o más empleados y se extenderá a empleadores adicionales a partir de 2022. Los empleadores que no cumplan con la ley del programa de ahorro llinois Secure Choice pueden estar sujetos a multas y sanciones, como se describe en 820 ILCS 80/85. A continuación se indican las fechas límites de registro para los empleadores en función del tamaño del negocio del empleador:
Para obtener más información sobre las definiciones de empleador, empleado y empleo y la cantidad de empleados, consulte las normas administrativas relacionadas con el programa.
Tarifas y costos
Sí, como con cualquier inversión o programa de jubilación, hay aranceles administrativos y basados en la actividad. Los aranceles se deducen automáticamente, por lo que no recibirá ninguna factura.
Aranceles administrativos
El arancel administrativo para cada opción de inversión es aproximadamente de 0.32 % a 0.45 % dependiendo de las opciones de inversión. Esto significa que paga de $0.32 a $0.45 anualmente por cada $100 en su cuenta para las operaciones del programa y las inversiones subyacentes que elija. El arancel se computa a diario y se obtiene de los activos en una opción de inversión. Los rendimientos de las inversiones se acreditan en las cuentas de los ahorristas sin este costo. También hay un Arancel fijo de la cuenta de $4 por trimestre ($16 anual).
Aranceles basados en la actividad
Hay un Arancel por entrega en papel de $1.25 por trimestre ($5 anual) que se puede exonerar cambiando a la entrega electrónica de los Estados de cuenta y las Confirmaciones de transacciones y perfiles. Inicie sesión para actualizar sus preferencias de entrega.
También hay un arancel de $5 por cheque en papel para la entrega de fondos por cheque en papel. Establezca una transferencia bancaria electrónica (ACH) para evitar los aranceles de cheques en papel. Inicie sesión para ingresar la información bancaria.
Estos aranceles cubren todos los costos administrativos asociados con el programa, tal como el costo de mantenimiento de su cuenta; la supervisión de las inversiones del programa; el servicio al cliente; el mantenimiento de registros; los servicios en línea y telefónicos; y los gastos operativos de los fondos de inversión subyacentes donde se invierten las opciones de inversión.
Seguridad
Misceláneo
California, Connecticut, Maryland y Oregón también aprobaron leyes para crear programas similares. Oregón y California ya han implementado un programa de jubilación en el lugar de trabajo, los programas de jubilación basados en el lugar de trabajo de OregonSaves. Muchos otros estados también están considerando una legislación similar.
Sí, una cantidad de países ha desarrollado y adoptado una gama de programas similares en las últimas dos décadas. Estos programas basados en el sitio de trabajo son muy populares entre los ahorristas y están cambiando las condiciones de jubilación en dichos países. Un programa, llamado National Employees Savings Trust (NEST), se introdujo satisfactoriamente en el Reino Unido durante la última década. Nueva Zelanda también tiene un programa similar. Oregón ha adoptado un programa basado en el sitio de trabajo: OregonSaves. Oregón y California ya han implementado programas de jubilación basados en el lugar de trabajo. El programa de Illinois se basa en estos planes, así como en los planes exitosos de grandes empleadores en los EE. UU.
Illinois es uno de los primeros estados en implementar este tipo de programa. Oregón y California ya han implementado programas de jubilación basados en el lugar de trabajo. Varios otros estados planean implementar programas similares en un futuro cercano.
La Junta de Elección Segura de Illinois tiene siete miembros: El Tesorero del Estado de Illinois o su designado, quien se desempeña como presidente, el Contralor del Estado de Illinois o su designado, el Director de la Oficina de Administración y Presupuesto del Gobernador o su designado, y cuatro designados.
El Programa de Ahorros Illinois Secure Choice se promulgó a través de la ley Illinois Secure Choice Savings Program Act [820 ILCS 80].
El no tener ahorros para la jubilación es un problema grave tanto aquí en Illinois como en el resto del país. Se ha propuesto crear programas como este a nivel nacional para enfrentar esta crisis y dar más facilidades para que la gente ahorre. Por ahora es improbable que se cree un programa nacional a pesar de que la crisis va en aumento. Como respuesta, la mayoría de los estados han comenzado a considerar programas similares al de Illinois. Algunos otros estados también han promulgado leyes para crear programas similares.
Los habitantes de Illinois y los estadounidenses en general no están ahorrando lo suficiente para la jubilación. La familia mediana en edad de trabajar tiene solo $7800 ahorrados para la jubilación, y casi la mitad de las familias en edad de trabajar no tienen nada ahorrado1. La legislatura creó Illinois Secure Choice para mejorar el acceso de las personas y los resultados de los ahorros para la jubilación. El programa está diseñado para reducir las barreras siempre que sea posible, mediante el uso de la inscripción automática y ahorros a través de deducciones de nómina para que sea más fácil para las personas ahorrar. Las investigaciones muestran que las personas tienen 15 veces más probabilidades de ahorrar si tienen una opción de ahorro a través del trabajo. Este programa ayuda a llenar un vacío en el mercado que actualmente no se está llenando.2
1Economic Policy Institute, The State of American Retirement Savings, 2019
2AARP Public Policy Institute