Automatic Enrollment Can Increase 401(k) Participation
401(K) Services (Fall 2015)
Approximately 30 percent of eligible workers do not participate in their company’s 401(k) plan. Studies suggest that automatic enrollment plans could reduce this rate to less than 15 percent, significantly increasing retirement savings.*
Advantages of automatic enrollment include:
- Helps attract and keep talented employees
- Helps employees begin saving for their retirement
- Increases plan participation among both owners/managers and the employee population
- Allows for salary deferrals into certain plan investments if employees do not select their own investments
- Simplifies selection of investments
- Offers significant tax advantages (including deduction of employer contributions and deferred taxation on employee contributions and earnings until distribution)
Find out more about Mutual of Omaha Retirement Services’ automatic enrollment feature – it may be just what your plan needs!
Contact your Mutual of Omaha representative with any questions.