plan each place it appears, and (2) by adding at the end the following new sentence: Any amount so transferred (and any earnings thereon) shall be invested only in investments described in section 408B(d)(6). . (c) Penalty for failure To timely remit contributions to automatic IRA arrangements Section 4975(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (7) Special rule for qualifying automatic IRA arrangements For purposes of paragraph (1), if an employer is required under a qualifying automatic IRA arrangement under section 408B to deposit amounts withheld from an employee's compensation into an individual retirement account or toward the purchase of a qualifying retirement bond (as defined in section 408B(d)(7)) but fails to do so within the time prescribed under section 408B(d)(3)(A), such amounts shall be treated as assets of the individual retirement account. . (d) Coordination with Employee Retirement Income Security Act of 1974 (1) Exemption (A) In general Section 3(2) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002(2) ) is amended— (i) by inserting or (C) after subparagraph (B) in subparagraph (A), and (ii) by adding at the end the following new subparagraph: (C) A qualifying automatic IRA arrangement described in section 408B of the Internal Revenue Code of 1986 shall not be treated as an employee pension benefit plan or pension plan if, under the arrangement, contributions are to be made to an individual retirement account the provider of which is included in the website list established under section 408B(f)(3) of such Code, are to be made to an individual retirement plan designated by the employee, or are to be invested in qualifying retirement bonds (as defined in section 408B(d)(7)). . (B) Customer identification program Notwithstanding the amendment made by subparagraph (A), an individual retirement plan established pursuant to an automatic IRA arrangement described in section 408B(d) of the Internal Revenue Code of 1986