Auto Enrollment for 401(k)s

If you set up your 401(k) after December 29, 2022, and aren’t a grandfathered plan (one established before December 28, 2022), in business for less than 3 years, or have 10 or fewer employees, your plan must automatically enroll participants for 2025, with their contribution of at least 3% of their pay. Their contribute rate escalates in subsequent years. Employees can opt out or reduce their salary reduction amounts. Proposed regulations clarify some of the auto-enrollment rules. #IdeaoftheDay