Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 4980J. Failure to maintain automatic contribution plan. . (d) Effective date (1) In general The amendments made by subsection (a) shall apply to years beginning after December 31, 2017. (2) Delayed effective date (A) Large employers Except as provided in subparagraph (B), the amendments made by subsections (b) and (c) shall apply to years beginning after December 31, 2019. (B) Small employers In the case of an eligible employer (as defined in section 408(p)(2)(C)(i) of the Internal Revenue Code of 1986), the amendments made by subsections (b) and (c) shall apply to years beginning after December 31, 2021. 3. Deferral-only 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) Deferral-only arrangement (A) In general A deferral-only arrangement shall be treated as meeting the requirements of paragraph (3)(A)(ii). (B) Deferral-only arrangement For purposes of this paragraph, the term deferral-only arrangement means any cash or deferred arrangement which meets— (i) the automatic deferral requirements of subparagraph (C), (ii) the elective contribution requirement of subparagraph (D), and (iii) the requirements of subparagraph (E) of paragraph (13). (C) Automatic deferral (i) In general The requirements of this subparagraph are met if, under the arrangement, each employee eligible to participate in the arrangement who is not contributing or is contributing less than the qualified percentage applicable to an eligible employee in the first year of eligibility is treated as having elected in applicable years to have the employer make elective contributions in an amount equal to the qualified percentage of compensation applicable under clause (iii). In the absence of an election out as described in clause (ii), such election shall, as adjusted under clause (iii), remain in effect for all subsequent years, regardless of whether such