I was against Automatic Enrollment before I was for it. When it finally became part of the Internal Revenue Code, plan sponsors got liability protection through using the QDIA. While I like that plan sponsors under SECURE 2.0 will have to offer it, if they have a new plan, it will lead to a lot of errors.
The errors will deal with forgetting to automatically participants who fail to opt-out. Add the addition of long-time, part-time, employees, and you will find a lot of plans with errors. Hopefully, we can have some easy fixes for plan sponsors in these situations that won’t require the opening of the employer’s checkbook.