What happens if someone doesn fill out an opt-out form?
If an eligible employee has not filled out the appropriate opt-out form, they will automatically enrolled in the plan at the pre-determined deferral percentage. If a participant opts out within 90 days of being auto-enrolled, a corrective distribution can be made to the participant to refund their contributions starting in 2008. For 2007, there are no IRS regulations in place to handle refunds. Eligible employee must take the initiative to fill out the opt-out form if they do not want to have deferrals going into their 401(k) account.
