Auto Reenroll Act of 2025

This bill amends the Internal Revenue Code and ERISA to allow retirement plans with automatic contribution features to periodically re-enroll employees who previously opted out, after a set period of 1 to 3 years, unless the employee makes a new affirmative election to opt out again.

Sec. 2, Automatic reenrollment under qualified automatic contribution arrangements and eligible automatic contribution arrangements: The bill permits a qualified automatic contribution arrangement (QACA) under 401(k) plans to periodically terminate an employee's prior election to opt out after 1 to 3 years, and then treat that employee as having made a new election to contribute at the default rate, unless the employee makes a new affirmative election to opt out. This rule also applies to eligible automatic contribution arrangements (EACAs) under 414(w) and to automatic contribution arrangements under ERISA section 514(e). The amendments apply to plan years beginning after the bill's enactment, and no inference is created about prior law or arrangements with opt-out terminations longer than 3 years.