401k Automatic Enrollment Feature: SECURE ACT

This information is as of December 10, 2025:

What “Automatic Enrollment” under SECURE 2.0 Means for You

• If your employer’s 401(k) plan is new (adopted after December 29, 2022), under SECURE 2.0 you’ll be enrolled in the plan automatically once you’re eligible — unless you opt out.
• When you get auto-enrolled, the default contribution rate from your paycheck will be at least 3% of your compensation (could be more — up to 10%, depending on the employer’s plan). NOTE: The Fellow Travelers 401k Plan starts at 3%.
• Each year after that, your contribution rate will automatically go up by 1 percentage point — until it reaches at least 10%, though some plans may cap it at a higher level (commonly up to 15%). NOTE: The Fellow Travelers 401k Plan stops at 10%.
• You don’t have to stay at the default amount — you’re free to opt out of the plan, or change your deferral rate (either lower or higher) at any time.

What This Means for You

If your employer adopts a new 401(k) under SECURE 2.0, you’ll likely start saving automatically — usually 3% of your pay. Then each January 1 (or at the start of each plan year), your contribution rate will go up by 1%, until it’s at least 10%.