Join us for an upcoming webinar to learn all about Illinois Secure Choice. In just 30 minutes we’ll explain how enrollment works, your retirement saving options, and how to manage your account. Find a live webinar or watch a recording.
To make a change to your contribution rate, log in to your account and let us guide you through the process.
By default, the standard savings rate for your Illinois Secure Choice account is 5% of your gross pay, which is deducted from your paycheck on an after-tax basis. If you find that another contribution rate works better for your savings goals, you can adjust your rate at any time to as little as 1% or as much as you want, within IRS limits. 1
We understand that finding spare change to contribute to your retirement can be tough. Consider these lifestyle changes that could provide an opportunity for you to comfortably increase your contributions:
Because Illinois Secure Choice is a Roth IRA, your savings amount must be within the Roth IRA contribution limits set by the federal government. In 2024, the contribution limits are $7,000 per year to a Roth IRA (and $8,000 per year when you are age 50 or older) as long as you earn that much in wages. To determine how much money you can contribute, you’ll first need to figure out your Modified Adjusted Gross Income (MAGI). The IRS provides a helpful worksheet in Publication 590-A, Chapter 2 that will walk you through the steps.
| Year | Single Filer | Married/Joint Filer | Married/Single Filer |
|---|---|---|---|
| 2023 | $138,000-$153,000 | $218,000-$228,000 | $0-$10,000 |
| 2024 | $146,000-$161,000 | $230,000-$240,000 | $0-$10,000 |
Once you’ve determined your MAGI, use the scenarios below to determine the maximum amount you can contribute.
As a SINGLE FILER, younger than 50 years old, WITH A MAGI LESS THAN $146,000, you can contribute the full contribution limit of $7,000.
As a SINGLE FILER, younger than 50 years old, WITH A MAGI THAT IS BETWEEN $146,000 AND $161,000, you can submit a partial contribution using this equation:
($161,000 – MAGI) ÷ $15,000 × $7,000 = Maximum amount you can contribute.
As a SINGLE FILER, younger than 50 years old, WITH A MAGI MORE THAN $161,000, you are not eligible to contribute.
As a MARRIED FILER, younger than 50 years old, FILING JOINTLY, AND YOUR MAGI COMBINED WITH YOUR SPOUSE'S MAGI IS LESS THAN $230,000, you can contribute the full contribution limit of $7,000.
As a MARRIED FILER, younger than 50 years old, FILING JOINTLY, and your MAGI combined with your spouse’s MAGI is between $230,000 and $240,000, you can submit a partial contribution using this equation:
($230,000 – MAGI) ÷ $10,000 × $7,000 = Maximum amount you can contribute.
As a MARRIED FILER, younger than 50 years old, FILING JOINTLY, AND YOUR MAGI COMBINED WITH YOUR SPOUSE'S MAGI IS MORE THAN $240,000, you are not eligible to contribute.
As a MARRIED FILER, younger than 50 years old, FILING SEPARATELY WITH A MAGI THAT IS LESS THAN $10,000, you can submit a partial contribution using this equation:
($10,000 – MAGI) ÷ $10,000 × $7,000 = Maximum amount you can contribute.
As a MARRIED FILER, younger than 50 years old, FILING SEPARATELY, WITH A MAGI THAT IS MORE THAN $10,000, you are not eligible to contribute.
You may also consult with a financial or tax advisor to help you choose the best savings rate. Keep in mind that contribution limits vary based on age and tax filing status.
*Additional factors may impact the maximum amount you can contribute. Check the Roth IRA Contribution Limits and consult a qualified tax advisor to discuss your specific situation.
If you have other Roth or traditional IRAs in addition to your Illinois Secure Choice Roth IRA, the amount you can contribute to your Illinois Secure Choice Roth IRA will be further reduced by the contributions you make to your other Roth or traditional IRAs.
You can still contribute to all of your accounts; however, you’re responsible for ensuring that the total contributions don’t exceed overall annual contribution limits. Keep in mind that the annual contribution limit applies to all of your IRAs combined—rather than on a per-IRA basis.
If you contribute to an employer-sponsored retirement plan with another employer, the amount you contribute to your Illinois Secure Choice Roth IRA won’t affect the amount you can contribute to your employer-sponsored retirement plan.
Another great benefit of contributing to a Roth IRA is that if your income falls within certain limits, you may be able to qualify for the Saver's Tax Credit of up to $1,000. This may reduce the amount of tax you owe for a particular year.
1Please note that contributions are made post-tax, and your employer can’t deduct more than the amount of available compensation after they’ve made any other payroll deductions required by law that have higher preference.
2Based on purchasing lunch 20 times a month at a minimum of $10.00 per meal vs. packing a $4.00 lunch
3Maric Breen Cable and Satellite TV Costs Will Climb Again in 2016, NBC News, December 22m 2015 and Bobby Bernstein, Netflix vs Amazon Prime vs Hulu Plus, July 6, 2016
4Average cost of basic phone service, including local and long distance calls, and average cost of VOIP services. https://electroniccosthelper.com/phone-line.html