removal of auto enrollment features

new plan as of 01/01/2020.  Plan set up with auto enrollment features.  client wants to remove the auto enroll features from the plan.  client currently has 11 active employees. Is this permissible?

Thanks in advance.

sure. be careful if the auto enroll is structured as a QACA as it will impact other areas, but removing auto enroll is allowed. and if the plan is grandfathered under the pre-SECURE 2.0 rules, then having auto enroll is not required period. 

and the plan will have to let people know, for example if they are deferring due to auto enroll, is the plan going to put them at zero, or leave them at their %. 

But for 11 people, why not just get everyone to sign a form electing zero if they don't want deferrals taken out?

Or are they wanting to remove it because the 3 year tax credit for it is up? and don't want it cluttering up their plan?

Related to this topic, had a plan that removed the AE feature effective 1/1/2024.  Employees who were auto enrolled in 2023 continued to have the deferrals deducted in 2024.  That impacted about 600 employees.  Obviously we do not believe they notified the affected parties that the AE deferrals would continue.  Anyone had this happen and would the 2024 deferrals all be ineligible?

what does the plan document say? usually it addresses this. if not in an adoption agreement, then in perhaps the underlying plan document. I would expect the participants to stay enrolled at their default AE % unless notified otherwise they they would stop.

Agreed - thanks!