Automatic Enrollment is a 401(k) practice whereby:

A. Plan administrators are required to post credits to participants' accounts within three business days of when payroll deductions were taken.

B. Investment managers must invest funds within three days of actual receipt of monies received from the plan sponsor.

C. A stated 401(k) payroll amount deduction is taken from an eligible participant's paycheck unless the participant elects to contribute a different amount.

D. 401(k) participants, who have not made an investment election, will have their 401(k) contributions automatically invested into a default investment fund.

E. Employers, who were failing the ADP/ACP discrimination test would automatically characterize discriminatory contributions made by Highly Compensated Employee as after-tax contributions.