S. 1831 — Auto Reenroll Act of 2025

This section amends the Internal Revenue Code (IRC) and ERISA to permit qualified automatic contribution arrangements (QACAs, i.e., safe harbor automatic enrollment features in 401(k) plans), eligible automatic contribution arrangements (ECAs, i.e., automatic enrollment in other retirement plans), and automatic contribution arrangements (i.e., plans qualifying for ERISA preemption exceptions under 29 U.S.C. 1144(e)) to terminate an opt-out election after 1 to 3 years and automatically reenroll participants at the default contribution level unless a new opt-out is made. Specifically, the section (1) adds new IRC §401(k)(13)(C)(v) for QACAs, including coordination rules for current and previously disregarded employees; (2) adds new IRC §414(w)(3)(B) for ECAs; and (3) adds new ERISA §514(e)(2)(B) (29 U.S.C. 1144(e)(2)(B)) as a conforming amendment. The amendments apply to plan years beginning after enactment and include a no-inference clause regarding prior law or opt-out periods exceeding 3 years.