Auto Reenroll Act of 2023

S 2517, the Auto Reenroll Act of 2023, modifies retirement plan rules to allow automatic re-enrollment in 401(k) and similar plans. It permits employers to automatically re-enroll employees who previously opted out of contributions after 1-3 years, without requiring new affirmative elections, provided they don’t actively choose to remain opted out. This affects employees in qualified automatic contribution arrangements (like 401(k) plans) and eligible automatic contribution arrangements, including those who had previously chosen not to participate. The key change ensures employees remain enrolled unless they specifically opt out again, streamlining participation while maintaining their ability to decline contributions.