Auto-enrollment

[Guest ppapdx]

A participant in a 401(k) plan has elected to defer 2% of pay - however they have a separate election to defer 10% of any bonus pay. They get paid bi-weekly and receive a bonus every quarter. They probably defer around 4% if you average everything out.

On 10/1 the plan is amended to auto-enroll current participants at 5%. The plan does not allow auto-enrollment to apply separately to bonus - so this participant is now set to defer 5% of all his pay (including bonuses).

Can the employer take the 10% bonus election and put that back into play - thus superseding the 5% auto-enroll on bonuses? Or does the participant need to make another affirmative election for bonus pay?

[BG5150]

I'd get a new election.