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

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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.