These frequently asked questions and answers provide general information and should not be cited as legal authority. They provide the user with information responsive to general inquiries but the answers do not apply to every situation and yours may require additional research. Automatic contribution arrangements, also referred to as automatic enrollment arrangements, may be used in a variety of employer plans and programs. However, these FAQs only address automatic contribution arrangements for employer retirement plans. We based our answers on the Final Regulations on Automatic Contribution Arrangements, issued on February 24, 2009. What is an automatic contribution arrangement in a retirement plan? What are the benefits of an automatic contribution arrangement in a retirement plan? Are there different types of automatic contribution arrangements for retirement plans? Can an employer add an automatic contribution arrangement to its existing retirement plan? What notice do I need to provide to employees for an EACA or QACA? When must an employer provide notice of the retirement plan’s automatic contribution arrangement to an employee? When can I deduct automatic enrollment contributions from my employee's wages? Can an employee elect not to participate in the retirement plan’s automatic contribution arrangement? Can an employee’s election not to participate in the retirement plan’s automatic contribution arrangement expire? What happens when an employee elects not to participate in the retirement plan’s automatic contribution arrangement? What happens to my automatic contributions if I stop participating in my employer's auto enrollment? Can an employee withdraw any automatic enrollment contributions from the retirement plan? Can I contribute an amount other than the default automatic enrollment contribution percentage? Am I required to contribute to my employee's retirement account if our plan has an automatic contribution arrangement? How does an employer report an employee’s automatic enrollment contributions to a retirement plan? How do I report automatic enrollment contributions my employee withdrew from our retirement plan?
