Bookkeeping Tooles & Virtual Assistance Services Inc.

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Did You Know....

Retirement controlled by the State?

Posted on June 20, 2016 at 11:50 AM

I've heard horror stories about social security not being available when I reach retirement age. The thought of working all my life and having no sustainable source of income to carry me further is frightful. Clearly the political minds of the world have thought the same thing.


While reading my monthly newsletter from American Institute of Professional Bookkeepers I read an interesting fact that I needed to research for my present and future clients.


"Must a firm have a retirement plan? Almost 25 states have or are considering laws that require small employers that do not offer retirement plans to enroll employees in state-run retirement plans."


The long and short is yes and no, if you are a part of the 25 states then yes otherwise, just hold tight, because the change will be coming soon. This got me thinking about my lovely state of Illinois and this is what I found from PensionRights.org and confirmed by the Illinois General Assembly.


SB 2758 establishes a payroll-deduction IRA for workers whose employers do not offer any other retirement savings vehicle. The bill requires all businesses in existence for at least two years with 25 or more employees to automatically enroll their employees in the Secure Office Savings Program unless they offer another retirement options to their workers.


This article is for information purposes only. The more small business owners know the better they can plan for sustainability and success. This is just another factor to consider when developing your business plan.

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