What action can a participant take that involves electronic transactions in a retirement plan?

Designating investment allocation of future contributions is a key action that participants can take in a retirement plan, particularly through electronic transactions. This process typically involves accessing the plan's website or mobile app, where participants can specify how their future contributions should be invested among various available options, such as stocks, bonds, or mutual funds. This capability is essential for allowing participants to tailor their investment strategy according to their risk tolerance and retirement goals.

The other options do not typically involve direct electronic transactions within the context of managing a retirement plan. Filing for bankruptcy is a legal process that generally does not involve the retirement plan directly. Scheduling meetings with legal counsel is related to legal advice rather than the management or allocation of retirement funds. Determining payroll contributions is typically a function of the employer and payroll system rather than an action a participant actively engages in through electronic transactions. Hence, designating investment allocation of future contributions stands out as the correct action that participants can perform electronically within their retirement plans.