401(k) Plan

[Guest marklouis]

Can a controlled group make automatic enrollment applicable only to selected members (companies) of the group in a single master plan? If so how?

[MWeddell]

The answer is yes, although getting your recordkeeper & payroll to do this for only part of the plan might be a challenge.

Perhaps your real question is whether having automatic enrollment for only part of the plan constitutes a benefit, right, or feature subject to testing under Treas. Reg. 1.401(a)(4)-4. I've concluded no, that what needs to be tested is the rate of available deferrals and match or the availability of investments, and automatic enrollment doesn't make a greater rate of deferrals or match or more investment choices available to participants. However, the resolution to this issue is not all that clear, so you might ask your own attorney.