Employers who sponsor defined contribution plans have the right to automatically enroll you in their plan. With automatic enrollment, your employer decides the percentage of your salary that you contribute—often 3% with a built-in annual increase—as well as the type of investment you initially make: a target date fund, a balanced fund, or a managed account. If you don’t want to participate in the plan, you can refuse in writing. If you do participate, you have the right to change the default investment and the percentage you contribute. 401(k) Plan – at public and private companies and nonprofit organizations Annual contribution limits and vesting rules Balances portable when leaving job Transfers into plan may be possible Tax-free Roth option may be available in addition to tax-deductible plan 403(b) Plan – at nonprofit organizations Annual contribution limits and vesting rules Balances portable when leaving job Transfers into plan may be possible 
 Expanded opportunities to make catch-up contributions 
 Tax-free Roth option may be available in addition to tax-deductible plan 457 Plan – for state and municipal workers Annual contribution limits and vesting rules Balances portable when leaving job Transfers into plan may be possible 
 Expanded opportunities to make catch-up   Read more…