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Release Date: January 15, 2009
Release Number: 09-53-NAT
Contact Name: Gloria Della/Richard Manning
Phone Number: 202.693.8664/202.693.4676

U.S. Labor Department and IRS unveil publication to help small employers understand automatic enrollment for 401(k) plans

Washington – The U.S. Department of Labor and the Internal Revenue Service (IRS) today released a new publication to help small employers understand automatic enrollment for 401(k) plans offered to their employees. Automatic Enrollment 401(k) Plans for Small Businesses provides a comprehensive overview of the advantages of starting and operating this type of 401(k) arrangement.

With 401(k) plans serving as the primary source of retirement income for millions of Americans, automatic enrollment will play an important role in helping them save and invest for their retired years. This publication describes an automatic enrollment 401(k) plan, how to set up the plan, management of the plan, fiduciary responsibilities and a checklist to ensure compliance with the law.

“Today, there are many retirement plan options available to small employers. The automatic enrollment 401(k) plan offers small business owners a way to help more of their employees save for retirement,” said Bradford P. Campbell, assistant secretary of labor for the Labor Department’s Employee Benefits Security Administration (EBSA).

This publication is part of the agency’s ongoing education campaign to educate employers, particularly small businesses, and help workers and their families to save for a financially secure retirement.

Free copies of the booklet and other materials developed under the campaign are available by calling EBSA toll-free at 866-444-EBSA (3272) or visiting the agency’s Web site at www.dol.gov/ebsa (see Publications). Additional resources to help small employers are available through the IRS Web site at www.irs.gov/ep.

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.