by employers of private-sector providers of individual retirement plans and associated investment options that are appropriate for use in automatic IRA arrangements. (i) Cross reference For provision preempting conflicting State laws, see section 2(k) of the Automatic IRA Act of 2017 . . (b) Mandatory transfers Section 401(a)(31)(B) is amended— (1) by inserting (including an automatic IRA arrangement) after individual retirement 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 in a default investment described in section 408B(d)(5). . (c) Penalty for failure To timely remit contributions to automatic IRA arrangements Section 4975(c) is amended by adding at the end the following new paragraph: (7) Special rule for automatic IRA arrangements For purposes of paragraph (1), if an employer is required under an automatic IRA arrangement under section 408B to deposit amounts withheld from an employee's compensation into an automatic IRA or toward the purchase of a retirement bond but fails to do so within the time prescribed under section 408B(d)(2)(A), such amounts shall be treated as assets of the automatic IRA. . (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) An automatic IRA arrangement described in section 408B(d) 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 automatic IRA the provider of which is included in the website list established under section 408B(h)(3) of such Code, are to be made to an individual retirement plan designated by the employee, or are to be invested in retirement bonds (whether to