Blue Paper

401(k) Automatic Enrollment

ready for retirement with 401k auto enrollment

What is auto enrollment and how can it help a business owner? This white paper explains the benefits and barriers to implementing automatic enrollment. Employers benefit in two ways: a) increasing the allowable contribution levels by an employer; and b) lowering the administrative cost-per-employee. Download this free white paper now for details, including:

How automatic enrollment boosts participation levels from the average of 72% up to 92%
For new employees, auto enrollment reduces paperwork and administrative expenses
The federal compliance requirements of the Pension Protection Act of 2006
Key definitions of the Act, such as "fiduciary," and acceptable "financial institutions"
Why some employers are reluctant to face employee response to auto enrollment
Amending the 401(k) plan's Adoption Agreement to allow changing enrollment procedures
How modified vesting periods can be used a retention tool in high-turnover industries
The requirements for auto increases in deferral rates for "safe harbor" plans
Federal law provisions for notification of employees about changes to the plan
The tools needed for accurate reporting to avoid tax penalties
What to look for in partners for the record keeping and plan administration duties
Acceptable options for an employee's Qualified Default Investment Alternative (QDIA)
The three investment approaches for auto enrollment offered by Paychex
The future outlook of Congressional debate over retirement savings contributions credits

Thanks for your interest in Paychex resources. Please provide the following information.

More Blue Papers View All

This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.

People who viewed this, also viewed...

California’s New Paid Sick Leave Law

Here is useful information for business owners about California’s new paid sick leave law, including how much sick time they must give employees and the new payroll reporting rules.

How to Choose a 401(k) Plan for Yourself and Your Employees

To choose a 401(k) retirement plan for yourself and the employees of your small business, research the many financial firms that provide services for 401(k) plans: mutual fund companies, brokerage firms, recordkeepers, and insurance companies. Gather information from the U.S. Department of Labor, the Internal Revenue Service and fellow small-business owners. Then decide on the type of 401(k) plan that's best for you and your employees: a traditional 401(k), a safe harbor plan or an automatic enrollment plan.

IRS Allows Higher 401(K) Savings for 2015, But Will Your Workers Seize the Opportunity?

The IRS has raised elective deferral limits for 2015 to $18,000 from $17,500, as well as the catch-up contribution limit for employees aged 50 and older who participate in 401(k), 403(b), and other federally regulated savings plans. However, workers aren’t saving as much for retirement these days, particularly those older than 50. Employers can take a number of approaches to help workers plan and save for their retirement years — approaches that serve the company, as well.

Should Benefits for Freelancers Be Part of Your Strategy to Attract Contract Talent?

Attracting high-quality freelance talent is one way that small businesses are staying competitive, but the demand and competition for their services has perhaps never been greater. So does that mean going so far as to offer freelance workers certain benefits that you also offer full-time employees? Read on to discover how this might pose a challenge to your business, along with additional ways you can appeal to freelancers.