FAQ: My employee did not know they had to opt out of Auto Enrollment… Can they request a withdrawal?
If your 401(k) plan is set up with an Eligible Automatic Enrollment Arrangement (EACA), there may be a provision that allows the employee to request a Permissible Withdrawal within 90 days of their first automatic enrollment contribution. This provision can be found in your Plan Adoption Agreement, Section C, #10.
In order for the employee to cancel their ongoing deferrals and reverse any contributions made to date, please email clientsuccess@vestwell.com to request our EACA Withdrawal Form.
Please note, there will be a $35 processing fee withheld from the employee’s total balance. Once the request has been received, we will review and process your request within 7 business days. If approved a check for the funds will be sent via USPS to the address on file.
If your plan is not set up with the Permissive Withdrawal provision under EACA, we are currently unable to refund any contributions that were made through Automatic Enrollment. If you are unsure if your plan is set up with EACA, please email clientsuccess@vestwell.com, and a member of our team will be able to assist you.