AUTOMATIC ENROLLMENT REQUIRED FOR NEW 401(k)
01.Core Concepts
PLANS BEGINNING IN 2025 • Must be an eligible automatic contribution arrangement (EACA) • Employee has 90 days to opt out and withdraw initial contribution to plan, plus earnings, without a penalty • Automatic enrollment contribution requirements: • Between 3 and 10% in the first year of participation • Must increase each year by at least 1%, up to at least 10% (but not more than 15%) • Participant can elect a different percentage or opt out