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How can employees opt out of 401(k) contributions?

Published

All eligible employees who do not wish to contribute in the future can opt out by changing their deferral rate to 0% in their Betterment account. Betterment cannot reverse contributions once they are made. However,  your plan may allow for an Eligible Automatic Contribution Arrangement (“EACA”). If a plan allows, any necessary withdrawals due to auto-enrollment must be handled through standard 401(k) withdrawal options.

Employees can update their contribution rate by following these steps:

  • From a web browser: Select Retirement goal from the left-hand menu > Overview > Automatic deposit > Edit.
  • From the Betterment mobile app: Select Retirement goal from the menu > Recurring Transactions > Tap the transaction you wish to edit > Verify your identity.