Automatic Enrollment Requirements under Section 414A
Summary
This proposed rule would require employers to automatically enroll workers into retirement savings plans, making it easier for employees to save for retirement without having to take action themselves. The rule aims to increase retirement security by making saving the default option rather than something workers have to opt into.
Key Points
- 1Employers would be required to automatically sign up eligible employees into retirement savings plans at a set savings rate
- 2Employees can still choose to opt out or change their contribution amount at any time
- 3This applies to private employers offering retirement plans under Section 414A of the tax code
- 4The public has until March 18, 2025 to submit feedback on the proposed rule before it becomes final
- 5The rule is designed to help more Americans save for retirement, especially lower-wage workers who might otherwise skip enrollment
Key Dates
January 14, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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