What if an eligible employee wants to opt-out of auto escalation after deductions have begun (i.e. after annual escalation date)?
If an eligible employee has not filled out the appropriate Election Form (opt-out) before the annual escalation date, they will automatically be increased to the pre-determined deferral percentage. If a participant wants to opt out within 90 days of being auto-escalated, they can stop the increased deduction by filling out an Election Form (opt-out). The employee will continue at the previous percentage. The form is then given to the payroll contact so the payroll can be properly adjusted. The payroll contact must then forward the Election Form (opt-out) to Freedom One.
Related Questions
- What happens to the contributions that have already been invested if an employee wants to opt-out after deductions have begun (i.e. after entry date)?
- What if an eligible employee does not want to be automatically escalated in the plan (i.e. before annual escalation date)?
- What if an eligible employee wants to opt-out of auto enrollment after deductions have begun (i.e. after entry date)?
