Auto Enrollment, Vesting & Eligibility

Eligibility determines when a new employee can start saving into the plan, what categories of employees can enroll ( e.g., age, hours worked, etc.) and when an employee can enroll (e.g., monthly or annually).

A vesting schedule determines when contributions made by the employer will be fully owned by the employee. Vesting schedules vary, but most 401(k) plans have a vesting schedule of three to five years.

Automatic enrollment is a 401(k) plan feature that automatically enrolls your eligible employees into your 401(k) plan and gets them started with contributing a portion of their salary at a preset rate.