not participating, or is contributing less than 3 percent of compensation, at the time of determination, is treated as having made the election described in clause (i) unless the employee makes a new election under clause (ii). . (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning after December 31, 2018. (2) Immediate automatic deferral for current employees not required In the case of an employer who adopts a qualified automatic contribution arrangement (as defined in section 401(k)(13)(B) of the Internal Revenue Code of 1986) after December 31, 2018, solely for the first and second plan years for which the arrangement is in effect, clauses (i) and (iv) of section 401(k)(13)(C) of the Internal Revenue Code of 1986 (as amended by this section) may be applied without taking into account any employee who— (A) is eligible to participate in the arrangement (or a predecessor arrangement) immediately before the date the arrangement goes into effect, and (B) has an election in effect on such date either to participate in the arrangement or to not participate in the arrangement.