Illinois State Treasurer Michael Frerichs has reported on the status of Illinois Secure Choice, the state-sponsored retirement program that provides a Roth IRA to employees who do not have access to a retirement savings plan through their employers.
According to Frerichs, as of November 2020, more than 75,000 employees in Illinois are participating in the program and collectively they have saved more than $40 million for retirement.
Frerichs also reports that more than 6,000 employers are registered for Illinois Secure Choice, and that 2,579 employers have begun remitting contributions for their employees; the employers that have not yet are completing the enrollment process. Enrollment deadlines were rolled out gradually based on employer size; the las deadline for employers except those exempted to register for Illinois Secure Choice was Nov. 1, 2019. The following employers are exempt from the program:
- those with fewer than 25 employees;
- those that have been in business for less than two years; and
- those that already offer an employer-sponsored retirement plan.
Employers that are not exempt and have not yet registered will face greater risk of penalties; Courtney Eccles, Director of Secure Choice said in October that enforcement of the program mandates will be stepped up in 2021.
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