All Guideline 401(k) plans include an automatic enrollment feature. At least 10 days before the auto-enrollment (or 30 days for new plans), eligible employees will receive an emailed notification with the deadline.
If employees do not manually set up their account or opt out before their auto-enrollment date, they will automatically begin contributing at the default deferral rate.
The default deferral rate is the percentage of employees’ pay that will be deferred into their 401(k) accounts if they do not make their own election by the deadline.
If the 401(k) account has an auto-escalation feature, then the default rate will also increase each year until it reaches a certain percentage.
Employees can choose to change their deferral amount at any time within their Guideline dashboards.