Is Your Plan Failing the ADP Test?
Lyndsey Barnett
If your 401(k) plan is continuing to have problems passing the ADP test, you should seriously consider adding an automatic enrollment feature if your plan doesn’t already automatically enroll participants. A recent study by Vanguard found that participation rates more than double to 91% for plans with automatic enrollment compared with 42% participation for plans with voluntary enrollment. If you don’t have automatic enrollment in your plan, Vanguard’s study is worth the read.
