Automatic Enrollment Expanded in Retirement Plans

Jun 1, 2023 | 2025, Retirement Plan Law

Statistics show that automatic enrollment is successful in nearly doubling plan participation. This provision will require 401(k) and 403(b) plans created on or after December 29, 2022 to automatically enroll new employees starting at a rate of at least 3% but not more than 10%. In addition, that amount will increase by 1% until it reaches at least 10% (but not more than 15%). Plans created before December 29, 2022 are not affected. Additionally, small businesses with 10 or fewer employees, newly formed companies, church plans, and governmental plans are exempt from this new rule.


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