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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6729 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6729
To amend the Internal Revenue Code of 1986 and the Employee Retirement
Income Security Act of 1974 to allow for periodic automatic
reenrollment under qualified automatic contribution arrangements, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 15, 2025
Mr. Vindman (for himself and Mr. Thompson of Pennsylvania) introduced
the following bill; which was referred to the Committee on Ways and
Means, and in addition to the Committee on Education and Workforce, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 and the Employee Retirement
Income Security Act of 1974 to allow for periodic automatic
reenrollment under qualified automatic contribution arrangements, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Auto Reenroll Act of 2025''.
SEC. 2. AUTOMATIC REENROLLMENT UNDER QUALIFIED AUTOMATIC CONTRIBUTION
ARRANGEMENTS AND ELIGIBLE AUTOMATIC CONTRIBUTION
ARRANGEMENTS.
(a) Qualified Automatic Contribution Arrangements.--
(1) In general.--Section 401(k)(13)(C) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new clause:
``(v) Periodic automatic deferral
permitted.--A qualified automatic contribution
arrangement shall not fail to be treated as
meeting the requirements of this subparagraph
solely by reason of the fact that, under the
arrangement--
``(I) an election by an employee
under clause (ii)(I) terminates after
not more than 3 years (but not less
than 1 year), and
``(II) such employee is treated as
having made an election under clause
(i) after such termination unless such
employee makes a new affirmative
election under clause (ii).
A termination described in subclause (I) may be
made at one time for a plan year for all
employees who have made an election described
in such subclause.''.
(2) Coordination with rule for current employees.--
(A) In general.--Clause (iv) of section
401(k)(13)(C) of such Code is amended by striking
``either to participate in the arrangement or not to
participate in the arrangement'' and inserting ``to
participate in the arrangement''.
(B) Special rule for previously disregarded
employees.--
(i) In general.--For purposes of applying
section 401(k)(13)(C)(v) of the Internal
Revenue Code of 1986 (as added by paragraph
(1)), a previously disregarded employee may be
treated as an employee who has made an election
under section 401(k)(13)(C)(ii)(I) of such
Code.
(ii) Previously disregarded employee.--For
purposes of this subparagraph, the term
``previously disregarded employee'' means any
employee who was not taken into account under
section 401(k)(13)(C)(i) of the Internal
Revenue Code of 1986 by reason of an election
described in section 401(k)(13)(C)(iv)(II) of
such Code (as in effect for plan years
beginning on or before the date of the
enactment of this Act) to not participate in an
arrangement described in section
401(k)(13)(C)(iv)(I) of such Code.
(b) Eligible Automatic Contribution Arrangements.--Section
414(w)(3) of the Internal Revenue Code of 1986 is amended--
(1) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and moving the margins
of such clauses 2 ems to the right;
(2) by striking ``arrangement.--For purposes of'' and
inserting the following: ``arrangement.--
``(A) In general.--For purposes of''; and
(3) by adding at the end the following new subparagraph:
``(B) Periodic automatic deferral permitted.--An
arrangement shall not fail to be treated as an eligible
automatic contribution arrangement under this
subsection solely by reason of the fact that, under the
arrangement--
``(i) an election by a participant under
subparagraph (A)(ii) not to have contributions
made terminates after not more than 3 years
(but not less than 1 year), and
``(ii) such participant is treated as
having made an election under subparagraph
(A)(ii) to make contributions at the uniform
percentage level described in such subparagraph
after such termination unless such participant
makes a new election not to so make such
contributions.
A termination described in clause (i) may be made at
one time for a plan year for all participants who have
made an election described in such clause.''.
(c) Conforming Amendment.--Section 514(e)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1144(e)(2)) is
amended--
(1) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively;
(2) by striking ``(2) For purposes of'' and inserting
``(2)(A) For purposes of''; and
(3) by adding at the end the following:
``(B) An arrangement shall not fail to be treated as an automatic
contribution arrangement under this subsection solely by reason of the
fact that under the arrangement--
``(i) an election by a participant under
subparagraph (A)(ii) not to have contributions made
terminates after not more than 3 years (but not less
than 1 year), and
``(ii) such participant is treated as having made
an election under subparagraph (A)(ii) to make
contributions at the uniform percentage level described
in such subparagraph after such termination unless such
participant makes a new election not to so make such
contributions.
A termination described in clause (i) may be made at one time
for a plan year for all participants who have made an election
described in such clause, regardless of individual participant
dates of enrollment.''.
(d) Effective Date.--The amendments made by this section shall
apply to plan years beginning after the date of the enactment of this
Act.
(e) No Inference.--The amendments made by this section shall not be
construed to create any inference with respect to--
(1) the application of section 401(k)(13)(C) of the
Internal Revenue Code of 1986, section 414(w)(3) of such Code,
or section 514(e)(2) of the Employee Retirement Income Security
Act of 1974 to plan years beginning before the date of the
enactment of this Act, or
(2) the application of section 401(k)(13)(C)(v) of the
Internal Revenue Code of 1986 (as added by subsection (a)),
section 414(w)(3)(B) of such Code (as amended by subsection
(b)), or section 514(e)(2)(B) of the Employee Retirement Income
Security Act of 1974 (as amended by subsection (c)) to
arrangements terminating elections not to have contributions
made after more than 3 years.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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