401(k) Plan - Automatic Enrollment Notice


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									401(k) Plan - Automatic
Enrollment Notice
This notice informs newly hired 401(k) eligible employees that they will be automatically
enrolled in the company’s 401(k) plan. Employees can opt-out of contributing to the
401(k), but failure to do so will automatically deduct 401(k) contributions from the
employee’s paycheck. The company can customize the percentage of the employee’s
paycheck that will be deducted. In addition, this notice informs employees that the
company will match the employee’s contribution. This notice is ideal for small
businesses or other entities that want to inform employees that they will be
automatically enrolled in the 401(k) plan.

TO:               Newly Hired 401(k) Eligible Employees

FROM:             Human Resources Department

DATE:             _____________________ [Instructions: Insert the date]

SUBJECT:          401(k) Plan -- Automatic Enrollment Notice

We at ___________________ [Instructions: Insert the Company’s name] (“Company”),
desire to assist our employees reach their retirement savings goals. To this end, Company
strongly encourages participation in Company’s 401(k) plan (the “Plan”). To make saving for
retirement under the Plan even easier, Company is now offering automatic enrollment to all
newly hired eligible employees.

This means, provided that you do not opt-out, upon such date that you become eligible to
participate, you will be automatically enrolled in the Plan. By failing to opt-out of the Plan you
authorize Company to withhold and deduct an amount equal to __________ (___%) percent
[Instructions: Insert percentage] of each paycheck and that you desire to contribute, on a pre-
tax basis, said sum into the Plan. Company will provide matching contributions in accordance
with Plan provisions.

If you choose not to contribute to the Plan or would like to contribute a different amount, you
may do so by filling out a 401(k) Election Change Form and providing such form to Company’s
Human Resources.

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