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Posted

These days, for the most part, new plans must have an auto-enrollment feature.

But can the ER stop the auto enroll after a few years?  Or must it be in there forever?

Does Secure address that?

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

Posted

Internal Revenue Code § 414A(a)(1) provides: “[A]n arrangement shall not be treated as a qualified cash or deferred arrangement described in section 401(k) unless such arrangement meets the automatic enrollment requirements[.]”

A plan might be amended to remove automatic-contribution provisions if the plan is amended to omit an elective-deferral arrangement.

But how many plan sponsors want a plan only for an employer’s nonelective contributions?

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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