Many states have begun implementing state laws that require every employer that has been in business for a certain period of time and has a minimum number of employees to offer a retirement plan to their employees.
Explaining the Illinois retirement mandate
Illinois recently enacted this legislation and the final deadline to implement a retirement plan for employers with between 5-15 employees where the company has been in business for two or more years is November 1, 2023. As an employer, you have the option to select the kind of plan you wish to provide: either a state-sponsored program or an eligible private plan, such as a Guideline 401(k).
The deadline to implement a retirement plan for employers with more than 15 employees has already passed. Except for 5 states, all other states have similar requirements with many requiring a retirement plan for as few as one employee.
There are many options of retirement plans that fulfill this requirement and each option provides different retirement savings and tax planning benefits.
If your business does not yet offer a retirement plan to your employees and you are concerned that these new laws might affect you, please contact us and our team would be happy to assist you with your questions.
Written by Susan Penno