Eligibility, Enrollment & Participant Data Changes

This section contains information on how participants enroll in your plan. You need to provide participants with an Enrollment Package for New Participants for your firm’s plan. The enrollment package includes the forms and instructions they will need to make their decisions. For participants to enroll in your firm’s plan, they need to complete and return the necessary forms to you.

For information on opening a Self-Directed Brokerage Account (SDBA), see “Opening an SDBA” in Investment Election Changes & Transfers.


In the chart below, you will find the necessary steps to follow when an eligible participant wishes to enroll in your plan. You must complete these steps in sequence.

Steps for Enrolling in the PlanPlan Participant’s RolePlan Administrator’s RoleThe Program’s Role
1. Determine if employee is eligible and, if so, provide the eligible employee with an Enrollment Package for New Participant and SPD (Summary Plan Description)
2. Depending on the plan type, decide whether to contribute to a 401(k) plan on a pre-tax or Roth 401(k) basis (or voluntary after-tax basis to a 401(k) plan, profit sharing plan or money purchase pension plan, if available), how to invest the firm’s and/or participant’s own contributions, and who to name as beneficiary
3. Complete the enrollment and beneficiary designation process online and provide a copy of the confirmation to the Plan Administrator after going through the online experience.  If not naming a spouse as the sole primary beneficiary, complete, sign and provide the Beneficiary Designation Form to the Program, with a copy to the Plan Administrator.
4. Review the participant’s enrollment and establish payroll deductions, if applicable.
5. Update the recordkeeping system with the new participant’s enrollment and beneficiary designation, or process Beneficiary Designation Form if applicable.
6. Assign participant a password
7. Send participant confirmation notice of investment elections and beneficiary designation