Introducing Online Enrollment for 457 and 401 Plans
Online enrollment is a secure, quick, and easy way for your employees to enroll in their 457 or 401 retirement plan — using their desktop computer, laptop, tablet, or mobile device. This feature will become available to 457 and 401 plans this month.
Some of the features and benefits of online enrollment to both employers and employees include:
- decreased plan sponsor workload because employers no longer have to key enrollments into EZLink;
- employers no longer have to field inquiries from a participant asking if their account has been established;
- increased processing accuracy because there are no barriers such as incomplete forms or illegible handwriting; and
- provides an easy and convenient way to enroll.
Online enrollment allows employees to enroll through the ICMA-RC website using a desktop computer, laptop, or tablet. Employees can choose the "Express" or "Comprehensive" enrollment method:
The employee will enroll by entering only basic personal information. Once enrolled, the employee can sign in to his or her account to designate a beneficiary and to select an investment option. This enrollment method is also available through the ICMA-RC mobile app. Employees can quickly enroll by downloading the ICMA-RC mobile app on their smartphone.
The employee will complete the entire enrollment process, including designating a beneficiary, selecting an investment option, and creating an Account Access user ID.
Once enrolled, employees will submit a Contribution Form to their employer, specifying their contribution amount; or, if their plan allows, they can specify their contribution amount through the online enrollment process.
A 30-day email reminder will be sent to employees who enroll online but haven’t provided beneficiary designations, selected an investment option, or contributed to their account.
We have created materials that can be used to inform your employees about online enrollment, and to help them understand the process, including a flyer that outlines the online enrollment process. The materials also include a flyer that walks plan sponsors through the process.
For additional information about online enrollment, you may contact ICMA-RC’s Plan Sponsor Services team or your ICMA-RC Retirement Plans Specialist.