If a frustratingly large percentage of your work force doesn’t participate in the organization’s 401(k) plan, you’re not alone. The government reports that one-third of eligible employees shrug off their employers’ 401(k) plan. But final U.S. Labor Department rules published last month could change all that.
It’s now easier for employers to automatically enroll their employees in the company 401(k). Basically, the new rules allow you to turn your opt-in plan into an opt-out one. The rules give employers legal immunity to set up auto-enroll 401(k)s, plus they establish qualified default investment alternatives for auto-enroll dollars. For more details, go to www.dol.gov/ebsa/newsroom/fsQDIA.html.