Opt-Out Plan

Opt-Out Plan
A type of 401(k) plan that automatically enrolls the employees of a company to save for their retirement. Eligible employees of a company with this policy are enrolled in the plan at a default contribution rate, usually around 3% of wages, and funds are directed into a default allocation. Employees can change the terms of the plan or opt out completely if they don't want to participate. This differs from a typical 401(k) in that retirement savings will continue to accumulate without any action from the participant.

Also known as an "automatic 401(k)".

Due to the complexity of some 401(k) forms and the stress of allocating the funds, some people may choose not to participate in a plan at all. An opt-out plan does this work for the employee, while still allowing him or her to change the terms as needed.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • opt out — verb choose not to do something, as out of fear of failing She copped out when she was supposed to get into the hang glider • Syn: ↑cop out • Derivationally related forms: ↑copout (for: ↑cop out) • Hypernyms …   Useful english dictionary

  • OPT — Outward Processing Trade concerned with the temporary export of textiles to certain Eastern European countries for processing and reimport into the European Union ( EU). Before exporting the goods, the exporter must obtain an Outward Processing… …   Financial and business terms

  • opt — 01. If he doesn t get accepted into the M.B.A. program here, he may [opt] to transfer to a different institution. 02. Some massage practitioners have decided to [opt] out of the government medical insurance program. 03. Students may [opt] to stay …   Grammatical examples in English

  • Dickson Plan — The Dickson Plan is a school transfer system implemented in North County Armagh in Northern Ireland. It is a two tier system in which the majority of pupils in the Craigavon Borough Council Area and parts of Armagh City and District Council Area… …   Wikipedia

  • The myth of the plan — infobox Book | name = The Myth Of the Plan: Lessons of Soviet planning experience author = Peter Rutland cover artist = country = United Kingdom language = English genre = Politics/Economics publisher = Hutchinson and Co Ltd release date = 1985… …   Wikipedia

  • Special Assistance Plan — The Special Assistance Plan (Abbreviation: SAP; zh s|s=特选补助课程) is a programme in Singapore which caters to academically strong students who excel in both their mother tongue as well as English. It is only available in selected secondary schools.… …   Wikipedia

  • Systematic Investment Plan — An SIP is a vehicle offered by mutual funds to help you save regularly. It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual… …   Wikipedia

  • Internet censorship in Australia — Part of a series on Censorship By media …   Wikipedia

  • United Kingdom — a kingdom in NW Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland 1801 1922. 58,610,182; 94,242 sq. mi. (244,100 sq. km). Cap.: London. Abbr.: U.K. Official name, United Kingdom of Great… …   Universalium

  • Computers and Information Systems — ▪ 2009 Introduction Smartphone: The New Computer.       The market for the smartphone in reality a handheld computer for Web browsing, e mail, music, and video that was integrated with a cellular telephone continued to grow in 2008. According to… …   Universalium

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”