Payroll-processing service Paychex has added an auto-enrollment feature that allows employers to automatically sign up employees to participate in a 401(k) plan.
Once the feature is implemented, employees are enrolled in their company's 401(k) plan 30 days after their eligibility date, but are allowed to opt out before any payroll deductions are made. Employees then have an additional 90 days to opt out of the plan and request distribution of any deductions that occurred without facing penalty fees. All auto-enrolled employees receive a confirmation letter with detailed instructions on how to opt out of the plan.
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