H.R. 6729 — Auto Reenroll Act of 2025

This section amends the Internal Revenue Code and ERISA to permit periodic automatic reenrollment in qualified automatic contribution arrangements (QACAs under IRC §401(k)(13)(C)), eligible automatic contribution arrangements (EACAs under IRC §414(w)(3)), and automatic contribution arrangements (under ERISA §514(e)(2)), whereby an employee's opt-out election terminates after not more than three years (but not less than one year), after which the employee is automatically reenrolled at the plan's uniform contribution percentage unless a new opt-out election is made. (QACAs and EACAs are automatic enrollment features in 401(k) and similar plans designed to increase retirement savings by enrolling employees in deferrals unless they affirmatively opt out, with QACAs qualifying plans for safe harbor nondiscrimination relief and EACAs providing similar relief for plans that fail nondiscrimination tests; ERISA §514(e)(2) defines automatic contribution arrangements whose regulation by states is not preempted by ERISA.) The amendments include conforming changes for current employees and previously disregarded employees (i.e., those previously opted out under prior rules) and apply to plan years beginning after enactment.