Many employers choose to set up an automatic enrollment feature to their company’s retirement plan to aid their employees in saving for their retirement. Studies show this has helped employees avoid missing enrollment periods and contribute more towards retirement.
In addition, many employers are required to add auto-enrollment to their plan. As of 1/1/2025, under the SECURE Act 2.0, new 401(k) and 403(b) plans established after the passing of SECURE 2.0 (December 29, 2022) must automatically enroll all eligible employees at a default contribution rate between 3 and 10% of their salary, unless an alternative rate is selected by the employee.
How Do I Opt Out of an Automatic Enrollment Plan?
If you have decided to opt out of your employer’s plan, you may do so. If you have not yet registered for your account or are unable to access the saver portal, you can contact your employer to opt you out through their employer portal. Otherwise, if you have already registered for your account, log in to your saver portal and follow the steps below:
- On the home page, under the "Savings Rates" section, select Change Savings.
- Change the Pre-Tax and/or Roth amount to "0".
- Select Apply Changes.
If you have already made an auto-enrolled contribution and would like to withdraw those funds, you must request an auto-enrolled contribution withdrawal.
If you need assistance, you may contact us directly at everyday401k.help@vestwell.com.