The advantages of automatic enrollment

1. More employees end up contributing with auto-enrollment versus an opt-in 401(k) plan.
2. Studies show that auto-enrolled employees save more over time.
3. Employers help their employees start preparing for retirement as soon as they are eligible.
4. Increases plan participation, which can have a favourable impact on compliance testing.
5. 401(k) plans with auto-enrolment offer significant tax advantages for employers, including deductions for employer contributions.