What are the advantages of automatic enrollment for participants?

All Guideline plans include an IRS approved plan feature called an automatic contribution arrangement, which means you are automatically enrolled in your employer-sponsored Guideline 401(k) plan if you don’t elect a different contribution or opt-out by the auto enrollment date stated in your on-boarding invitation. The automatic enrollment feature encourages participants to save by making a salary deferral the default, rather than waiting for the participant to request enrollment. However, you have the option to opt-out at anytime.

 Advantages of automatic enrollment include:

  • Studies have shown more participants will save with automatic enrollment 
  • Participants may save more when they are automatically enrolled at the default rate
  • Auto-enrollment helps take advantage of any employer matching dollars to grow account balances faster
  • All auto-enrollment contributions and gains have tax deferral treatment until distribution

If you take no action your contributions will be invested into one of Guideline’s professionally managed portfolios based on your current age and estimated time until retirement or under the terms of a Qualified Default Investment Alternative.

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