Illinois Secure Choice vs. Guideline 401(k)

Meet Illinois’s retirement mandate with an all-in-one 401(k) and live support.1

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50K+

businesses2

1M+

savers3

93%

customer satisfaction score4

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Fintech 505

The mandate in a nutshell

The Illinois Secure Choice program was established in 2018. It requires Illinois employers with 5+ employees that have been in business for 2+ years to offer the state-sponsored plan or a qualified alternative like a Guideline 401(k).6 Compare your options

  • 5+ employees

    Initial deadlines have passed, sign up immediately to avoid penalties

Meet the mandate and more with a Guideline 401(k)

  • Magnifying glass with check mark inside, simple icon.

    20-minute setup

    Guideline will help you set up a 401(k) and enroll your employees for you. With Illinois Secure Choice, you may have to do extra work on behalf of your employees during setup.

  • Lightening bolt simple icon.

    Seamless administration

    We’ll automatically deduct 401(k) contributions each pay run. With Illinois Secure Choice, you may need to manually send payroll contributions, maintain employee records, and more.

  • Two hands shaking simple icon.

    Fast, live support

    We have your back — you and your team get access to fast, live support via phone and email. Our annual plan sponsor customer satisfaction score is 93%.4

Get back up to $16,500 in tax credits on your new 401(k).7

See if you’re eligible

Compare Illinois Secure Choice with Guideline Starter

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Illinois Secure Choice

  • Retirement plan type

    Starter 401(k)

    Roth IRA

  • Maximum employee contributions for 20258

    $6,000

    $7,000

  • Employee asset-based fee

    0.15%9

    0.30%10

  • Additional active employee fees

    None11

    $16/year account fee

    (charged quarterly at $4 each quarter)10

  • Monthly employer fee

    $39 / month + $4 per participant

    None

  • Investment options12

    40

    15

    (Including Indexed Funds)

  • Professionally managed portfolios12

    6

    0

  • Exempt from IRS testing

    Yes

    Yes

  • Employer match

    No

    No

Custom integrations. Quick resolutions.

All of our payroll integrations are direct and custom built — we don’t use 3rd party software to sync data. Data syncs every 24 hours with 99% accuracy.13 See all payroll integrations

  • and more
  • and more

Investments are our responsibility12

Just like with the state offering, you won’t be responsible for investment option choices. We’ll serve as the ERISA 3(38) fiduciary which means we’re responsible for selecting and managing all investment options — our goal is to reduce your liability and provide you with peace of mind.12 Learn more

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Estimate your plan costs

Your company could be eligible to receive up to $16,500 in tax credits over the plan’s first three years to help offset initial plan costs.7

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Our experience with Guideline has been exceptional. Proactive communications, easy-to-use interface, and support that’s both fast and detailed.Client of Guideline. Views may not be representative of other clients.

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Illinois retirement mandate FAQs

What is the mandate?

The Illinois Secure Choice Program was created to encourage more people to save for retirement. It requires Illinois employers with 5 or more employees to provide access to a retirement plan. The plan can either be a private plan like a 401(k) or the state-sponsored plan.

When does the mandate take effect?

For companies with 5 or more employees, the program is fully active.

Which employers are impacted by the retirement mandate?

You are eligible to participate in the Illinois Secure Choice Program if:

  • Your business is registered to conduct business in the state of Illinois
  • You are required to facilitate Illinois Secure Choice if you reported W-2 wages for 5 or more employees during all four quarters of the previous calendar year to the Illinois Department of Revenue (IDOR).
  • You have been in business for two or more years; and
  • You don’t currently offer a qualified retirement savings program to your employees

Are there penalties for not offering a retirement benefit?

Yes. Employers will be subject to a penalty equal to:

  • $250 per employee for the first calendar year the employer is noncompliant
  • $500 per employee for each subsequent calendar year the employer is noncompliant.14

Does Guideline satisfy the retirement mandate?

Yes. All of Guideline's 401(k) plans are designed to satisfy state program requirements and are priced to be affordable for businesses of all sizes.

Can I move from Guideline Starter to a standard 401(k)?

While it is possible for a plan to convert from a Starter 401(k) to a standard 401(k) plan at Guideline, the transition cannot take place until the beginning of the next calendar year. Learn more here.

  • 1

    Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser. Recordkeeping services are offered by Guideline RK, LLC. 3(16) plan administration services are also offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.

  • 2
    As of May 2024
  • 3
    As of August 2024
  • 4
    Guideline’s average plan sponsor satisfaction score (CSAT) based on feedback received from 1/1/2023 to 12/31/2023.
  • 5
    Forbes Fintech 50, 2022
  • 6

    Guideline has prepared this summary from third-party sources as of April 30, 2024. The information herein is considered to be reliable at the time of writing, may not necessarily be all-inclusive, is not guaranteed as to accuracy and is subject to change at any time without notice. The information provided herein is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal and/or financial advice that considers all relevant facts and circumstances. Investing involves risk and investments may lose value. You are advised to consult a qualified financial adviser or tax professional before relying on the information provided herein. Deadlines, fees, and other program details are subject to change by the state without notice and should be checked prior to making any decisions. If you already offer a qualified employer-sponsored plan, exemptions may be required. Please consult with your states specific exemption information: https://employer.ilsecurechoice.com/illinoisertpl/enroll/createEmp/viewCollectEmpPreRegDetails.cs or go to https://www.ilsecurechoice.com/ for more details.

  • 7
    This content is for informational purposes only and is not intended to be taken as tax advice. Please consult a tax professional to determine what types of tax credits or deductions your company is eligible to claim.
  • 8

    Subject to IRS cost-of-living adjustments. In 2025, individuals can contribute up to $7,000 between their traditional and Roth accounts. If you’re 50 or older, you can contribute an additional $1,000 ($8,000 in total). Starter 401(k) employee can contribute up to $6,000. If you’re 50 or older, you can contribute an additional $1,000.

  • 9

    Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser. An assumed annual account fee of 0.15% is applied to assets under management and is deducted on a monthly basis. It’s calculated at 1/12 of the annual stated rate (0.15%) based on the account balance on the last day of each month. Alternative account fee pricing is available, ranging from 0.15% to 0.35%. Contact Sales at hello@guideline.com to learn more about exclusive pricing options available in Enterprise tier. See the Form ADV 2A Brochure for more information regarding this fee.

  • 10

    Information shown here assumes a static balance of $10,000 per month, which includes the Program Administrative Fee 0.25% plus the State Fee 0.05% on assets under management. Per the Illinois Secure Choice Program. As a Secure Choice Account owner, you indirectly bear a pro rata share of the annual costs and expenses associated with each Investment Option in which you are invested. The Annualized Asset-Based Fees consist of the Underlying Investment Fees, the State Fee, and the Program Administration Fee. The Program Administration Fee, which is in the amount of 0.25% to be paid to the Program Administrator plus 0.05% to be paid to the state of the Investment Options daily net assets. For each Investment Option, the Underlying Investment Fund Fee is derived from the expense ratio reported in each Underlying Investment Fund’s most recent prospectus. Each Investment Option indirectly bears the expenses of the Underlying Investment Funds; so, when fees are deducted from an Underlying Investment Fund’s assets, the value of the Underlying Investment Fund’s shares is reduced. Actual Underlying Investment Fund expenses may vary and are subject to change.

  • 11
    The fee presented does not include other fees that a 401(k) participant may incur, including, but not limited to, from mutual fund expense ratios and a monthly maintenance fee to participants who end employment.
  • 12

    Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser, the “Affiliated RIA”). Specific references herein to “asset-based fees” or “investment options” or “we” or “our” in this specific context is referring solely services provided- or fees charged- by the Affiliated RIA. See the Affiliated RIA’s Form ADV 2A Brochure for more information regarding its services and fees. Recordkeeping services are offered by Guideline RK, LLC. 3(16) plan administration services are also offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.

  • 13
    Based on Guideline internal analytics from January 2023 through December 2023.
  • 14
    Illinois Secure Choice Savings Program Act

Guideline.com is owned and operated by Guideline, Inc. This website contains content from Guideline, Inc. and its affiliates, each a separate entity with different regulatory marketing requirements and standards. References to "our" or "we" on this website refer solely to Guideline RK, LLC unless otherwise specifically stated.

The information in this website is for informational purposes only and is not intended to be an offer, recommendation, investment advice, legal or tax advice, or a solicitation to buy or sell any security. By using this website, you agree to Guideline, Inc.’s Privacy Policy and Terms and Conditions of Use. Neither Guideline, Inc. nor its subsidiaries, are responsible for information provided by third parties. Information included herein from third parties is believed to be reliable however Guideline, Inc. does not guarantee the accuracy and completeness of that information.

Guideline, Inc. is a technology company that provides an integrated platform to companies who seek to work with 1) Guideline RK, LLC ("Guideline") and/or 2) Guideline Investments, LLC, an SEC Registered Investment Adviser ("RIA"), both of which are wholly owned by Guideline Holdings, LLC. Guideline Holdings, LLC is wholly owned by Guideline, Inc. Neither Guideline, Inc. nor Guideline Holdings, LLC or Guideline RK, LLC is involved in securities activities and is not registered with the SEC or FINRA. Neither Guideline, Inc., nor any of its affiliates, is a bank.

Investment advisory services for Guideline’s 401(k) (when 3(38) fiduciary services are selected) and SEP IRA/IRA products are offered by Guideline Investments, LLC, an SEC-registered investment adviser. For more information regarding fees and services, see Guideline Investments, LLC’s ADV 2A Brochure and Form CRS. References throughout this website to investment advisory services including but not limited to: investments offered, portfolios, managed portfolios, investment philosophy, assets under management (AUM), annual account fees expressed as a percentage of AUM, suitability questionnaire, 3(38) investment advisory management fiduciary services, robo-advisory services, and investment advice, unless otherwise specifically stated, are services provided by Guideline Investments, LLC. Investing involves risk and may lose money, including loss of principal. Investing is not guaranteed and past performance is not a guarantee of future performance. The investment options offered by Guideline Investments, LLC are not FDIC insured.

Recordkeeping services for Guideline’s 401(k) and SEP IRA/IRA products are offered by Guideline RK, LLC. 3(16) plan administration services are also offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. For more information on Guideline’s pricing, see here. Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.

Any graphs, charts, and other visual aids (collectively referred to as "image(s)") are provided for information purposes only. None of these images can of themselves be used to make investment decisions. No representation is made that these will assist any person in making investment decisions and no image can capture all factors and variables required in making such decisions.

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