They can make a 4% safe harbor match for participants, a 3% nonelective contribution to all eligible employees, even if they themselves make no contributions, or a 3.5% qualified automatic contribution arrangement
(QACA) match done in tandem with automatic enrollment.
* Clarify that safe-harbor nonelective and matching contributions made under a qualified automatic contribution arrangement
(QACA) are subject to withdrawal restrictions.
Third, the AICPA has asked for clarification of how employees who have not made an affirmative election in a preexisting plan should be treated when a qualified automatic contribution arrangement
(QACA) is instituted.
safe-harbor qualified automatic contribution arrangements
("QACAs") under section 401(k)(13) of the Internal Revenue Code of 1986, as amended ("Code"), and on eligible automatic contribution arrangements ("EACAs") under Code section 414(w).
The act also provides a safe harbor, permitting automatic increases in contributions over time, and "qualified automatic contribution arrangements
" will be deemed to satisfy certain 401(k) plan nondiscrimination requirements.