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AUTOMATIC MONTHLY CONTRIBUTION FORM authorize LIKEWISE to draft my contribution from my checking / savings account automatically on the 15th day of each month. This monthly contribution should begin
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How to fill out eligible automatic contribution arrangements

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How to fill out eligible automatic contribution arrangements

01
Determine the eligibility requirements for automatic contribution arrangements.
02
Provide the necessary information to employees about the automatic contribution arrangement, including the contribution rate and investment options.
03
Ensure that employees have the option to opt out of the automatic contribution arrangement if they choose not to participate.
04
Establish a process for employees to enroll in the automatic contribution arrangement and designate their contribution amount.
05
Provide ongoing communication and education to employees about the benefits and features of the automatic contribution arrangement.
06
Monitor and manage the automatic contribution arrangement, including tracking contributions, making necessary adjustments, and addressing any employee concerns or questions.
07
Comply with all legal and regulatory requirements regarding eligible automatic contribution arrangements.
08
Regularly evaluate the performance and effectiveness of the automatic contribution arrangement and make any necessary updates or improvements.

Who needs eligible automatic contribution arrangements?

01
Employers who want to encourage retirement savings and provide a convenient way for employees to participate.
02
Employees who may not have the discipline or knowledge to regularly save for retirement on their own.
03
Companies looking to meet certain legal requirements regarding retirement plans, such as the Internal Revenue Service's automatic enrollment safe harbor rules.
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Eligible automatic contribution arrangements (EACAs) are provisions in retirement plans that automatically enroll eligible employees in a plan and set their contribution rates unless they choose otherwise.
Employers who sponsor qualified retirement plans that include eligible automatic contribution arrangements must file the necessary documentation.
To fill out eligible automatic contribution arrangements, employers need to complete the appropriate forms provided by the IRS, ensuring all relevant information about the plan and employees is accurately reported.
The purpose of eligible automatic contribution arrangements is to encourage participation in retirement savings plans by automatically enrolling employees, thus increasing retirement savings.
Information that must be reported includes the plan's eligibility criteria, contribution rates, and details about automatic enrollment provisions.
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