ROCKFORD, Ill. (WTVO) — An Illinois retirement pilot program is set to go full scale next month.
The Secure Choice Program started in May 2018.
It requires businesses with 25 or more employees, that don’t provide retirement plans, to take part.
It’s been phased in over the last year, starting with large companies.
Illinois State Treasurer, Michael Frerichs, explained the program.
“This is automatic payroll deduction. People take money out of their paycheck automatically going into an individual Roth IRA,” Frerichs said. “They can save and invest that money themselves and then when they are ready the money, the growth in the 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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