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Sponsored by Lorman Education
Product ID: 407289EAU
 
Credit & Course Provided by:

Understanding 401(k) Plan Automatic Enrollment

OnDemand Webinar (91 minutes)

Understand the benefits of automatic enrollment and how to implement and administer an automatic enrollment feature.Does your 401(k) plan have low employee participation rates or struggle to pass annual nondiscrimination testing? Studies of 401(k) plans show that adding an automatic enrollment feature to a plan is one of the most effective ways to increase participation and improve nondiscrimination testing results. This information will provide you with an understanding of the benefits of automatic enrollment, the differences between automatic contribution arrangements, eligible automatic contribution arrangements, and qualified automatic contribution arrangements, and how to implement and administer an automatic enrollment feature.

Authors

Adam M. Zuidema, Esq., Stevens & Lee

Agenda

Overview

• Automatic Enrollment Legal Background

• Benefits of Automatic Enrollment

- Participation Rates

- Nondiscrimination Testing

Types of Automatic Enrollment

• Basic Automatic Contribution Arrangement (ACA)

• Eligible Automatic Contribution Arrangement (EACA)

• Qualified Automatic Contribution Arrangement (QACA)

Automatic Enrollment Structure

• Safe Harbor vs. Non-Safe Harbor

• Eligibility

• Default Elective Deferral Rates and Automatic Increases

• Employer Contributions

• Default Investments

Automatic Enrollment Administration

• Enrollment

• Notice and Election Requirements

• Permissible Withdrawals

• Default Investments and Fiduciary Concerns

• Nondiscrimination Testing

Compliance and Legal Updates

• Correcting Automatic Enrollment Errors

• Secure Act of 2019

• Future of Automatic Enrollment