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FAQs - Auto Enrollment - What are the benefits of an automatic contribution arrangement in a retirement plan?

An automatic contribution arrangement encourages employees to begin contributing to the plan as soon as they are eligible to join that plan and start saving for their retirement. It is also an effective way for an employer to increase participation in its retirement plan and make it easier for that plan to pass required annual nondiscrimination testing.

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Page Last Reviewed or Updated: 11-Feb-2014