qbteachmt
Level 15

This third posting is in the ProConnect subtopic section.

These were not asked in either of the other two, so I will try answering:

"What does mean Auto-enrollment?"

Instead of requiring an employee or even a military spouse to make elective deferrals, the employer can make nonelective contributions, like a Bonus, under their established qualifying plan, and every new employee that is expected to meet the eligibility, can be automatically enrolled in the retirement plan as part of the hiring paperwork, unless they opt out.

"Is there any way to set-up plans?"

Yes, but that is a whole other profession. It's not part of Income Tax preparation. It's Human Resources and Retirement Planning, as part of Benefits. It's typical to work with an insurer and/or a brokerage house, maybe a banker. It helps to know ERISA: "ERISA plans must follow the rules of the Employee Retirement Income Security Act, from which the plan earned its name. Non-ERISA plans do not involve employer contributions and do not need to follow the stipulations of the Act. Find out which plan federal laws require your enterprise to carry."

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