of the contribution or of other amounts under this title. (2) Payroll savings contributions taken into account Any contribution to an individual retirement plan or purchase of a retirement bond made on behalf of an employee under an automatic IRA arrangement shall be taken into account in applying the limitations on contributions to individual retirement plans and the other provisions of this title applicable to individual retirement plans as if the contribution or purchase had been made directly by the employee. (f) Deposits to plans of a designated trustee or issuer and for retirement bonds (1) In general An employer shall not be treated as failing to satisfy the requirements of this section or any other provision of this title merely because the employer makes all contributions (or all contributions on behalf of employees who do not specify an individual retirement plan, trustee, or issuer to receive the contributions) to individual retirement plans specified in paragraph (2) or to the Secretary or his agent for the purchase of retirement bonds specified in paragraph (3). (2) Individual retirement plans other than those selected by employee An employer may elect to have contributions for all qualifying employees participating in an automatic IRA arrangement made to individual retirement plans of a trustee or issuer under the arrangement that has been designated by the employer. The preceding sentence shall not apply unless each participant is notified in writing that the participant’s balance may be transferred without cost or penalty to another individual retirement plan established by or on behalf of the participant. (3) Retirement bonds (A) In general The Secretary shall provide that contributions deposited under subparagraph (B) shall be applied to the purchase of a retirement bond in the name of each applicable employee. (B) Payroll deposit features The Secretary shall establish procedures so that contributions may be applied to the purchase of retirement bonds without undue administrative or paperwork