How to Enroll in Your 401(k) Plan

Enrolling in your company’s 401(k) plan is one of the easiest ways to start saving for retirement. Whether you’re signing up for the first time or revisiting your options, this guide explains how enrollment works and what to expect.

A 401(k) is an employer-sponsored retirement plan that allows you to save a portion of your paycheck—either before taxes (traditional) or after taxes (Roth). Many employers also contribute to your account through matching or profit-sharing.

Enrollment options vary by employer, but generally, you can enroll by:

• Using your plan’s online portal to choose your deferral percentage and investment options

• Calling NestEggs for help with enrollment

When enrolling, you’ll typically be asked to choose:

• How much to contribute (as a % of your pay or a flat dollar amount)

• Whether to use pre-tax or Roth contributions

• How you want to invest your contributions

If you’re unsure, your plan may offer default options to help you get started.

Automatic enrollment means you’re automatically signed up for the 401(k) plan unless you take action to opt out.

Here’s how it works:

• You’re automatically enrolled after a set waiting period (e.g., 30 or 60 days after hire)

• A default deferral percentage (commonly 3% to 6%) is deducted from your paycheck

• Contributions are typically invested in a default fund, such as a target date fund based on your age

You’ll be notified in advance and given time to:

• Opt out of participation

• Change your deferral rate

• Select different investment options

• It gets you saving early without extra steps

• You benefit from tax advantages and compounding growth right away

• You can change your elections at any time

Yes. If you’ve been automatically enrolled but prefer not to participate, you can opt out before the first contribution—or stop future contributions at any time by contacting your plan administrator.

However, keep in mind:

• Opting out means missing out on employer matching contributions

• You’ll need to restart enrollment manually if you change your mind later

• New hires may be eligible after a short waiting period (e.g., 30 days, 60 days, or one year)

• Automatic enrollment happens on a schedule based on your hire date

Check your plan's Summary Plan Description (found in your online account) or contact NestEggs to confirm your eligibility and any associated deadlines.

If you’re unsure how to access your 401(k) account or make your elections, we can walk you through the process. Have your personal identification info ready to expedite the call.