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Regulation and Compliance > Federal Regulation > IRS

HR Group Asks IRS For Automatic Enrollment Relief

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The Internal Revenue Service should give employers more help with complying with new retirement plan tax laws.

Cara Woodson Welch, public policy director at WorldatWork, Washington, a group representing human resources executives, makes that plea in a comment letter submitted to the Internal Revenue Service.

Woodson Welch was reacting to the new 401(k) plan automatic enrollment provisions added to the Internal Revenue Code by the Pension Protection Act of 2006.

The IRS should clarify the sections in proposed automatic enrollment regulations dealing with topics such as eligibility rules, employee notices and transaction timing, Woodson Welch writes.

Meanwhile, while the IRS is working on the proposed regulations, it and the parent of the IRS, the Treasury Department, should “promptly issue guidance clarifying that plans may rely on a reasonable, good faith interpretation of the automatic enrollment provisions … pending the effective date of final regulations,” Woodson Welch writes.


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