If your plan has automatic enrollment, your employer is automatically initiating your deferral contributions into your 401(k). These funds will automatically be invested in an age-appropriate portfolio based on your years to retirement. You can log into your account to change both your deferral election, including choosing not to participate in the plan, and investment selections at any time.
Often times, plans with automatic enrollment have higher participation rates; many employers are now choosing this option so that they can help more employees to save for retirement. A key benefit of automatic enrollment for participants is that it pushes you to begin saving for retirement earlier, as opposed to waiting for you to eventually opt in when you get around to doing so.
This information has been provided by Betterment LLC, a registered investment advisor.