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At what level will the Auto Escalation cap out?

April 26, 2017Auto cap escalation level

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At what level will the Auto Escalation cap out?

1 Answer

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Most employers who implement automatic contribution escalation opt to increase the rates by 1% or 2% each year, up to a typical cap of 15% to 20%. This cap will be specified in the plan documents but at any time the participants can stop the auto escalation feature on their deferrals.