If you are reading this page, you are probably one of thousands of Illinois small business owners researching the best retirement option for your business and your employees before the upcoming deadline.
By November 1st, 2022, all Illinois businesses with 16-24 employees will be required to sign up for the one-size-fits-all, state-provided Individual Retirement Account (IRA) or select an eligible retirement plan with a private provider. When making a choice between an IRA and a private 401(k), you need to be aware of the key differences between those two products:
(*Eligible employers may be able to claim a tax credit of up to $5,000, for three years, for ordinary and necessary costs of starting a 401(k) plan. IRS’ qualifying factors are: you had 100 or fewer employees who received at least $5,000 in compensation from you in the preceding year, you had at least one participant who was a non-highly compensated employee (NHCE) and in the three tax years before the first year you’re eligible for the credit, your employees were substantially the same employees who received contributions or accrued benefits in another plan sponsored by you, a member of a controlled group that includes you, or a predecessor of either. Those plans with automatic enrollment can claim a tax credit of $500 per year for a 3 year taxable period.)
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Or schedule a free consultation with a retirement specialist.
It’s hard to believe, but it’s true. Ubiquity has only flat fees that don’t cost you more as your retirement savings grow. But with IL’s state plan, your fee will get bigger and bigger as your retirement balance grows over the years. Over 30 years you could end up with over $161,385 more money with us vs using the IL state plan. The better plan is clear – the Ubiquity 401(k)!
Let’s look at the following example:
Jennifer and Joshua each have retirement plans that they contribute $6,000 to every year. Jennifer’s plan is with Ubiquity Retirement + Savings and her fees are flat $5/month. Joshua’s plan is with Secure Choice and his annual asset based % fee is 0.75%.
It grows an average of 10% every year. At the end of 30 years Jennifer’s account is worth $1,125,804, with fees of $1,800 with her Ubiquity 401(k).
Joshua’s account is only worth $964,413, with fees of $66,547. Ubiquity’s flat fees could help you end up with over $161,385 more money over 30 years vs. IL Secure Choice IRA.
You can either choose the state plan with limited options or you can choose the better plan, the one thousands of your fellow IL small business owners have chosen: the Ubiquity 401(k).
Call toll-free 866-264-6465
If you want to be able to:
The choice is clear: the Ubiquity 401(k). See below for even more reasons.
Maximum employee annual contribution amount
Additional annual employer contribution limit
Yes, up to an additional $40,500¹
Flat fees that don’t increase with your account balance
No, asset-based fees
Yes, flat fees
$15,000 credit to offset setup costs2
Flexible auto-enrollment and vesting schedules
Investment guidance based on individual risk tolerance
Employee enrollment meetings and education
Auto-enrollment and escalation
Required at mandated levels
Optional and flexible
Customizable investment lineups
1. This limit is subject to cost-of-living increases for later years (for prior years, refer to this cost-of-living adjustment table.)
2. Available to eligible employers who have less than 100 employees who received at least $5,000 in compensation in the previous year, had at least one participant who was a non-highly compensated employee, and in the last 3 years did not contribute to a benefit plan for your employees through a plan sponsored by you or a member of a controlled group that includes you.
November 1, 2022
November 1, 2023
Act before the November 1, 2022 deadline. Hurry before prices increase!
Call toll-free at Call toll-free 866-264-6465 to get started.
¹ 1 This calculation assumes the following scenario: Jennifer and Joshua each open retirement plans with $6,000 starting balance. Jennifer’s plan is with Ubiquity Retirement + Savings and her fees are flat $5/month. Joshua’s plan is with Secure Choice and his annual employee pricing fee is 0.75%. Assuming they contribute $6,000 each year for 30 years, and it grows an average of 10% every year, at the end of 30 years Jennifer’s account is worth $1,125,804 with fees of $1,800 with her Ubiquity 401(k). Joshua’s account is only worth $964,413 with fees of $66,547. Ubiquity’s flat fees could help you end up with $161,390 more money over 30 years vs. IL Secure Choice IRA.
³ Google ratings are based on client reviews of Ubiquity Retirement + Savings products and services. Details on the methodology Google employs to calculate ratings can be found here. Rates currently displayed are as of September 30, 2022 and are based on reviews from 2014 through 2022
³ This percentage is based on surveys sent by Ubiquity Retirement + Savings and completed by clients of Ubiquity Retirement + Savings using specific product types.