1. Short title This Act may be cited as the Retirement Security Flexibility Act of 2018 . 2. Additional nondiscrimination safe harbor for automatic contribution arrangements (a) In general Subsection (k) of section 401 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (14) Special nonelective and matching contribution rules for small employers (A) In general In the case of a cash or deferred arrangement maintained by an eligible employer (as defined in section 408(p)(2)(C)(i)), for purposes of paragraph (13), the arrangement shall be treated as meeting the requirements of subparagraph (D) thereof if under the arrangement, the total elective deferrals (as defined in section 402(g)(3)(A)) with respect to any employee do not exceed an amount equal to the applicable percentage of the limitation otherwise applicable under section 402(g). (B) Applicable percentage For purposes of subparagraph (A), the applicable percentage with respect to an arrangement is— (i) 40 percent in the case of an arrangement which does not meet the requirements of paragraph (13)(D) and is not described in clause (ii) or (iii), (ii) 60 percent in the case of an arrangement which is not described in clause (iii) and which would meet the requirements of paragraph (13)(D) if— (I) equal to at least were substituted for equal to in clause (i)(I) thereof, (II) 2 percent of compensation, and such matching contributions meet the requirement of subsection (m)(11)(B) were substituted for 6 percent of compensation in clause (i)(I) thereof, and (III) 1 percent were substituted for 3 percent in clause (i)(II) thereof, and (iii) 80 percent in the case of an arrangement which would meet the requirements of paragraph (13)(D) if— (I) equal to at least were substituted for equal to in clause (i)(I) thereof, (II) 4 percent of compensation, and such matching contributions meet the requirement of subsection (m)(11)(B) were substituted for 6 percent of compensation in clause (i)(I) thereof, and (III) 2 percent were