Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Albert Crenshaw mentioned in his column today ( that "...some employers are turning to automatic enrollment, which is allowed under tax rules issued in the past few years. Instead of leaving out new workers unless they opt in, these companies are enrolling new workers unless they opt out."

Can anyone point me to where these "new tax rules" would be listed? I looked through the IRS site and found general info on 401(k) plans (, for example), but nothing that showed the law/regulation behind it.

Reason I'm interested: in the military we're starting the Thrift Savings Plan this fall, which is a limited version of a non-matching 401(k). When I brought up the possibility of making the TSP "opt-out" for our young enlistees (and officer candidates, for that matter) at a senior officer financial leadership seminar last summer, it was rejected because of questionable legality, and I dropped the subject (my warfare specialty is about as far away from financial expertise as possible). If Mr. Crenshaw is correct, I'd like to resurrect the possibility for the TSP.

He also notes that one of the drawbacks to these "opt-out" programs is that often those individuals will never increase their contributions or alter their holdings. Another issue to be addressed, obviously, but I'd like to hit the "opt-out" one again prior to looking into that challenge.

Any help greatly appreciated in advance,

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.