Does a 401(k) Have Open Enrollment?

Answering Common Retirement Plan Questions During Benefits Season

Short Answer: No, 401(k) Plans Don’t Have Open Enrollment

If you’re in HR, payroll, or responsible for your company’s retirement plan, you’ve probably heard this one before—especially during health insurance open enrollment season:

“When’s open enrollment for the 401(k)?”

Here’s the answer: 401(k) plans don’t have a traditional open enrollment period like health or dental benefits. Once an employee becomes eligible to join the plan, they typically have the ability to enroll or make changes at any time—based on how your specific plan is written.

Eligibility vs. Entry: Key Distinctions to Know

401(k) plans are governed by your company’s plan document, which outlines:

• Eligibility Requirements: For example, employees may need to be 21 years old or work 1,000 hours in a year before they’re eligible.
• Entry Dates: These are the dates when eligible employees can start participating. Some plans allow entry on the first day of the month after eligibility; others may use quarterly or semi-annual entry dates.

Once someone meets both criteria and enters the plan, they typically stay eligible—even if they initially opt out.

Can Employees Change 401(k) Contributions Anytime?

In most plans, yes! Employees can:

• Enroll
• Increase or decrease deferral rates
• Stop contributions
• Restart later

The timing of these changes depends on your company’s specific plan and your recordkeeper’s process. Most updates take effect with the next payroll cycle, but it’s important to check with your employer or HR team. Your plan document outlines any limitations, and some providers may also require a short processing window.

Why This Gets Confusing During Open Enrollment Season

Open enrollment for health plans is a fixed annual window. So it’s natural for employees to assume all benefits—including retirement—follow the same timeline.

That’s why every fall, plan sponsors get hit with 401(k) questions like:

Common 401(k) Questions During Open Enrollment

Here are a few questions HR teams often field:

“Can I change my 401(k) contribution now?”

Yes — in most cases, you can change your contribution at any time during the year, but be sure to check with your employer or HR team for the specific rules that apply to your company’s plan.

“I didn’t enroll when I first became eligible. Did I miss my chance?”

No — if you’re eligible and the plan allows ongoing enrollment, you can sign up now.

 “Will I be auto-enrolled this year?”

That depends on whether your plan has an automatic enrollment feature. If it does, you may be auto-enrolled at a default rate unless you opt out.

“When do employer matching contributions begin?”

Check your plan’s vesting schedule and eligibility rules. Some plans begin matching right away; others have a waiting period.

Help Employees Understand Their 401(k) on Their Own Timeline

While open enrollment season is a great time to educate employees about all benefits, remember: 401(k) plans operate on their own track. And that’s a good thing—it gives people more flexibility.

As a plan sponsor, the best thing you can do is:

• Share how your plan’s eligibility and entry rules work
• Remind employees they don’t need to wait for open enrollment to make changes
• Encourage regular contributions—even small ones—to build long-term retirement savings

Want Help Answering Employee Questions This Season?

We help HR and benefits teams communicate clearly about their 401(k) plan—especially during open enrollment, when questions flood in.

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