in the arrangement by the end of the 90-day period beginning on the first date the employer knew, or exercising reasonable diligence would have known, that such failure existed. (4) Waiver by Secretary In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive or otherwise inequitable relative to the failure involved. (c) Procedures for notice The Secretary may prescribe and implement procedures for obtaining confirmation that employers are in compliance with the requirements of subsection (d). The Secretary, in the Secretary’s discretion, may prescribe that the confirmation shall be obtained on an annual or less frequent basis, and may use for this purpose the annual report or quarterly report for employment taxes, or such other means as the Secretary may deem advisable. (d) Requirement To provide employee access to automatic IRA arrangements The requirements of this subsection are met if the employer meets the requirements of section 408B. . (g) Waiver of early withdrawal penalty for certain distributions following initial election To participate in automatic IRA arrangement Section 72(t) is amended by adding at the end the following new paragraph: (11) Distribution following initial election to participate in automatic IRA arrangement Paragraph (1) shall not apply in the case of a distribution to a qualifying employee made not later than 90 days after the initial election under section 408B(d)(1)(B)(ii). . (h) Bankruptcy Section 522 of title 11, United States Code, is amended— (1) in subsection (d)(12) by inserting 408B, after 408A, , and (2) in subsection (n) by inserting , or in an automatic IRA arrangement described in section 408B, . (i) Automatic IRA Advisory Group (1) In general Not later than 60 days after the date of the enactment of this Act, the Secretary of the Treasury and the Secretary of Labor shall jointly establish an Automatic IRA