applicable dollar amount in effect under section 402(g)(1). . (c) SIMPLE IRA subject to defined contribution plan limitation Section 408(p) of such Code, as amended by section 3, is amended by adding at the end the following new paragraph: (12) Subject to defined contribution plan limitation An arrangement shall not be treated as a qualified salary reduction arrangement for any year if contributions with respect to any employee for the year exceed the limitation of paragraph (1) of section 415(c) (relating to limitation for defined contribution plans). . (d) Effective date The amendments made by this section shall apply to contributions for taxable years beginning after December 31, 2017. 6. SIMPLE 401(k) parity for additional nonelective employer contributions (a) In general Section 401(k)(11)(B) of such Code is amended by adding at the end the following new clause: (iv) Special rule for additional nonelective employer contributions An arrangement shall not be treated as failing to meet the requirements of this subparagraph merely because under such arrangement the employer makes, in addition to any other contribution under this subparagraph, nonelective contributions of not more than 10 percent of compensation for each employee who is eligible to participate in the arrangement and who has at least $5,000 of compensation from the employer for the year. . (b) Effective date The amendment made by this section shall apply to plan years beginning after December 31, 2017. 7. Automatic deferral IRAs (a) In general Subpart A of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 408A the following new section: 408B. Automatic deferral IRAs (a) In general An automatic deferral IRA shall be treated for purposes of this title in the same manner as an individual retirement plan. An automatic deferral IRA may also be treated as a Roth IRA for purposes of this title if it meets the requirements of section 408A. (b) Automatic deferral IRA For purposes of this