The Treasury Department and the Internal Revenue Service have issued proposed regulations that would make it easier for companies to automatically enroll employees in 401(k) plans at a predefined contribution percentage.

Employers that offer 401(k) plans must specify what contributions, if any, will apply to employees covered under the plan who do not make a specific contribution election. Historically, most employers designed their plans to treat an employee who takes no action as if the employee elected no contributions.

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