Automatic payroll deductions for Illinois workers’ retirement accounts coming next month

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SPRINGFIELD, Ill. (WTVO) — Illinois is set to begin rolling out its Secure Choice retirement program full scale next month.

The program, which started in May 2018, requires businesses with 25 or more employees, that don’t already provide retirement plans, to take part.

The program was phased in over the last year, starting with large companies.

State Treasurer Michael Frerichs said, “This is automatic payroll deduction. People take money out of their paycheck, automatically going to an individual Roth IRA. They can save and invest that money themselves, and then, when they are ready, the money, the growth in that account, will be tax free.”

Employees can change how much they contribute, or can opt-out completely.

1.2 million workers are expected to benefit from the program.

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