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Can I offer a 401(k) plan to my employees in Illinois? What are the requirements?

Based on the information available in the provided documents, you can offer a 401(k) plan to your employees in Illinois. However, there are certain requirements that you need to fulfill.

Requirements for offering a 401(k) plan in Illinois

To offer a 401(k) plan in Illinois, you need to fulfill the following requirements:

  1. You need to ensure that your plan complies with the Employee Retirement Income Security Act (ERISA) [1][3]. ERISA sets minimum standards for retirement plans in the private sector and provides protections for individuals in these plans.
  2. You need to ensure that your plan is qualified under the Internal Revenue Code (IRC) [5]. A qualified plan is entitled to certain tax benefits, such as tax-deductible contributions and tax-deferred growth of earnings.
  3. If you have more than 25 employees, you may be required to participate in the Illinois Secure Choice Savings Program [2]. This program provides a retirement savings option to private-sector employees in Illinois who lack access to an employer-sponsored plan. If you are required to participate in this program, you must either offer a qualified plan or automatically enroll your employees into the Secure Choice program.

Conclusion

In summary, you can offer a 401(k) plan to your employees in Illinois, but you need to ensure that your plan complies with ERISA and the IRC. Additionally, if you have more than 25 employees, you may be required to participate in the Illinois Secure Choice Savings Program.

Source(s):
Jurisdiction

Illinois