New booklet helps small biz understand automatic 401(k) enrollment
The U.S. Department of Labor and the Internal Revenue Service have released a new publication to help small employers understand automatic enrollment for 401(k) plans offered to their employees. Automatic Enrollment 401(k) Plans for Small Businesses provides a comprehensive overview of the advantages of starting and operating this type of 401(k) arrangement.
With 401(k) plans serving as the primary source of retirement income for millions of Americans, automatic enrollment will play an important role in helping them save and invest for their retired years. This publication describes an automatic enrollment 401(k) plan, how to set up the plan, management of the plan, fiduciary responsibilities, and a checklist to ensure compliance with the law.
"Today, there are many retirement plan options available to small employers. The automatic enrollment 401(k) plan offers small business owners a way to help more of their employees save for retirement," said Bradford P. Campbell, assistant secretary of labor for the Labor Department's Employee Benefits Security Administration (EBSA).
This publication is part of the agency's ongoing education campaign to educate employers, particularly small businesses, and help workers and their families to save for a financially secure retirement.
Free copies of the booklet and other materials developed under the campaign are available by calling EBSA toll-free at 866-444-EBSA (3272) or visiting the agency's Web site (see Publications). Additional resources to help small employers are available through the IRS Web site.