To help encourage more people to save for retirement, the SECURE 2.0 Act requires employers with newly established 401(k) and 403(b) plans to enroll workers automatically, starting in 2025. Recently proposed IRS regulations stipulate that automatic enrollment is mandatory for plans initiated after Dec. 29, 2022. Unless employees opt out, plan sponsors must enroll them at an initial contribution rate of at least 3% of pay. Sponsors must then raise the contribution rate 1% each year until it reaches 10%. There are certain exceptions to the automatic enrollment rule for small and new businesses, churches, and government entities. Contact us for more information. © 2025