employer described in section 408(p)(2)(E)(i)(I), or (II) to which an election under section 408(p)(2)(E)(i)(II) applies for the year (including a plan described in section 401(k)(11) which is maintained by an eligible employer described in section 408(p)(2)(E)(i)(II) and to which such election applies by reason of subparagraphs (B)(i)(I) and (E) of section 401(k)(11)), the applicable dollar amount is $4,500. , and (2) in subparagraph (C)— (A) by striking adjustment .—In the case of and inserting “ adjustment .— (i) In general In the case of , and (B) by adding at the end the following new clause: (ii) Amount with respect to small and electing employers In the case of a year beginning after December 31, 2019, the Secretary shall adjust annually the $4,500 amount in subparagraph (B)(iii) in the manner provided under clause (i), except that the base period taken into account shall be the calendar quarter beginning July 1, 2018. . (c) Employer match Clause (ii) of section 408(p)(2)(C) of the Internal Revenue Code of 1986 is amended— (1) by striking The term in subclause (I) and inserting Except as provided in subclause (IV), the term , (2) by adding at the end the following new subclause: (IV) Special rule for electing larger employers In the case of an employer which had more than 25 employees who received at least $5,000 of compensation from the employer for the preceding year, and which makes the election under subparagraph (E)(i)(II) for any year, subclause (I) shall be applied for such year by substituting 4 percent for 3 percent . , and (3) by striking 3 percent each place it appears in subclauses (II) and (III) and inserting the applicable percentage . (d) Increase in nonelective employer contribution for electing larger employers Subparagraph (B) of section 408(p)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause: (iii) Special rule for electing larger employers In the case of an employer which had more than 25 employees who received at least $5,000 of