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Automatic enrollment

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Automatic enrollment. Your employer has the right to sign you up for your company's 401(k) plan, in what's known as an automatic enrollment. If you don't want to participate, you must refuse, in writing, to be part of the plan.

In an automatic enrollment, the company determines the percentage of earnings you contribute and how your contribution is invested, choosing among a number of potential alternatives. You have the right to change either or both of those choices if you stay in the plan.



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While retirement savings remain largely up to employees, companies are spending more to strengthen their plans through features that boost savings such as automatic enrollment, advice and more investment options.
Thanks to automatic enrollment in 401(k)s and other retirement plans, plus streamlined investment options, saving is so effortless that you can't help but succeed.
Tom Foster, national spokesman for The Hartford Retirement Plans, speaks enthusiastically about the automatic enrollment provision in the 2006 Pension Protection Act.
 
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