Yes! In fact, we encourage automatic enrollment - a study by Vanguard found that the average participation rate in plans that offer auto enrollment is 91%, compared to a 42% participation rate for plans without automatic enrollment. As a plan sponsor, you can design your plan with so that participants are automatically enrolled. Participants can always log in to Betterment’s portal (www.betterment.com) to change their deferral election, edit their retirement goals and information, and adjust their portfolio allocations. In addition, by encouraging employee participation, auto-enrollment helps you pass the year-end compliance testing,. This means that your HCEs have a better chance of being able to defer their maximum annual contribution into their 401(k), tax-free. Otherwise, your HCEs may be subject to a taxable refund. See the testing parameters here.
Articles in this section
- How long does a Betterment for Business 401(k) plan take to set up?
- Does Betterment take on any fiduciary responsibilities?
- Does Betterment for Business provide fee disclosures?
- What is the default portfolio that is used for participants who are enrolled automatically?
- When can I upload my payroll file?
- How do I upload payroll for my 401(k) plan?
- Does Betterment for Business allow for automatic enrollment?
- What do I have to notify participants about?
- What are the required government filings?
- What if I need an extension to file one or more of the forms?