A Ubiquity Small Business 401(k) enables:
(*Up to $5,000 per year, plus an additional $500 per year for automatic enrollment for the first 3 years)
Illinois is one of the first states to launch a retirement savings initiative. All businesses with 5-15 employees will be mandated to choose from the one-size-fits-all, state-provided, automatic Individual Retirement Account (IRA) or sign up for an eligible retirement plan with a private provider.
Employers who do not comply with the Illinois Secure Choice Savings Program Act may face a penalty of $250 per employee for the first year, and $500 per employee for each subsequent year.
More than 500 employees
November 1, 2022
November 1, 2023
A 401(k) solution provides employers with the opportunity to maximize their contributions and tax savings while helping their employees save for the future. With a 401(k) plan you can contribute 3 times more than with an IRA:
Illinois Secure Choice IRA
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.
So why not opt for the smarter option? If you’re looking for the maximum savings potential and tax benefit, Ubiquity provides flat-fee and low-cost retirement plans, all delivered online to you and your employee. That means no hidden fees or AUM charges in the fine print. Since 1999 we have been singular in our focus on the un-served small businesses. We have helped hundreds of thousands of employees save towards their future.
That’s why Ubiquity created this Definitive Guide to Small Business 401(k), including everything you need to know about saving money for your business, your future, and without confusing language or too much financial jargon.
With this small business 401(k) guide, you’ll learn everything you need to know about how to:
Want to know more about Illinois’ state-mandated retirement versus Ubiquity? We’ve got experts that have your back. Call us today at 855.912.6904 or email us at firstname.lastname@example.org