•    Automatic Enrollment – this feature makes it easy for employees to save for retirement. Instead of employees having to take the initial step of “opting-in” to their 401(k), with automatic enrollment, they are enrolled immediately upon meeting eligibility requirements. Participants who don’t wish to belong to the plan can choose to opt-out. As an added benefit to employers, the government recently added a new safe harbor feature for plans with automatic enrollment, called a Qualified Automatic Contribution Arrangement “QACA”. What this means is that the employer can avoid contribution nondiscrimination testing by meeting certain requirements.
•    Automatic Contribution Increases – this is a part of automatic enrollment, but takes it one step further. The feature automatically increases the amount the participant contributes (i.e., 1% each year) until a certain threshold is reached. This helps ensure participants are contributing enough to their plan, but in a gradual way.
•    Target Dated Funds – also called “Life-cycle Funds”, these take the guesswork out of what types of funds the employee should invest their money in. Target Dated Funds are designed with a particular retirement year in mind. Each participant selects the fund whose target date is most closely associated with the year he or she expects to retire. Each fund is diversified with a mix of stocks and bonds that are allocated based on the expected retirement date.

NADART is pleased to be able to offer these features for its retirement plans as well as others, such as the Roth 401(k) feature, 24/7 account access, fixed enrollment dates, an array of participant education materials, plus more. If you would further information on our 401(k) plans, please contact a NADART Representative at (800) 462-3278, ext. 7161 or e-mail nadart401k@nada.org.