Skip to content
English
SMARTMap Homepage
  • There are no suggestions because the search field is empty.

What do automatic enrollment and auto-increase mean?

Automatic Enrollment

Automatic enrollment means you are enrolled in the retirement plan automatically unless you opt out.

Instead of signing up, contributions are deducted from your paycheck by default (for example, 3% of pay).

Under SECURE 2.0:

  • Most new 401(k) and 403(b) plans established after December 29, 2022, must include automatic enrollment starting in 2025 (with some exceptions).

You can always:

  • Opt out by logging into your online account through the plan’s recordkeeper and setting your contributions to 0%, or by calling the recordkeeper for assistance
  • Change your contribution percentage according to your preference

Auto-Increase

If your plan includes auto-increase:

  • Your contribution percentage increases automatically each year (for example, by 1%)
  • It continues until reaching a set maximum (often 10–15%)

This feature helps participants gradually increase savings over time without having to take action.