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Is it legal for my employer to enroll me in a 401(k) retirement savings plan without my permission?

Last Updated: March 05, 2008

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Yes. Since the implementation of the Pension Protection Act of 2006, an increasing number of employers have been enrolling workers in their company retirement savings plan. This process is called auto-enrollment because plan contributions are automatically deducted from workers' paychecks. Invested funds are often placed in target-date mutual funds which change their portfolios over time and get more conservative as workers get older. Workers, of course, have the option to "opt out" by requesting that their employer cancel the contributions.

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