elect to modify the manner in which such amounts are invested for such year, (B) which meets the administrative requirements of paragraph (3), including the notice requirement of paragraph (3)(C), and (C) which does not charge unreasonable additional fees solely on the basis that the balance in an automatic IRA is small. (2) Employer’s Option to Obtain Affirmative Elections from Employees Instead of Automatic Enrollment As an alternative to automatic enrollment, an employer may choose to comply with paragraph (1)(A)(ii) by notifying employees that the employer wishes to obtain from each qualifying employee an affirmative election either to contribute or not to contribute to an automatic IRA, provided that any qualifying employee who fails to make such an election is treated in the manner provided under paragraph (1)(A)(ii). (3) Administrative requirements (A) Payments The requirements of this paragraph are met with respect to any automatic IRA arrangement if the employer makes the payments elected or treated as elected under paragraph (1)(A)— (i) on or before the last day of the month following the month in which the compensation otherwise would have been payable to the employee in cash, (ii) before such later deadline prescribed by the Secretary for making such payments, but not later than the due date for the deposit of tax required to be deducted and withheld under chapter 24 (relating to collection of income tax at source on wages) for the payroll period to which such payments relate, or (iii) as early as administratively practicable. (B) Termination of employee participation Subject to a requirement for reasonable notice, an employee may elect to terminate participation in the arrangement at any time during a calendar year, except that if an employee so terminates, the arrangement may provide that the employee may not elect to resume participation until the beginning of the next calendar year. (C) Notice of election period The requirements of this paragraph shall not be treated as met with respect to any