described in subparagraph (A) is made with respect to such employee and ending on the last day of the first plan year which begins after such date, (ii) 7 percent during the first plan year following the plan year described in clause (i), (iii) 8 percent during the first plan year following the plan year described in clause (ii), (iv) 9 percent during the first plan year following the plan year described in clause (iii), and (v) 10 percent during any subsequent plan year. (D) Rules relating to automatic IRA arrangements For purposes of this paragraph— (i) Qualified percentage In the case of an automatic IRA arrangement, the term qualified percentage means, with respect to an employee for any taxable year, a percentage equal to the minimum percentage described for the taxable year under subparagraph (C) determined by substituting taxable year of the employee for the plan year each place it appears. (ii) Payroll deduction contributions In the case of an automatic IRA arrangement, any reference in this paragraph to elective contributions shall be treated as including a reference to payroll deduction contributions. (5) Investment requirements (A) In general (i) Default investments A plan or arrangement shall be treated as meeting the requirements of this paragraph if in the absence of an investment election by a participant or beneficiary, amounts are invested only in the class of assets or funds described in subparagraph (B). (ii) Required investment options in automatic IRA arrangement In addition to the default investment requirement of clause (i), an automatic IRA arrangement shall be treated as meeting the requirements of this paragraph if the arrangement provides the option of investing in each of the classes of assets or funds described in subparagraphs (B), (C), (D), and (E), and no other investment options. (B) Target date/lifecycle option The class of assets or funds described in this clause is the class of assets or funds that constitutes an investment fund product or model portfolio described in