Auto Reenroll Act of 2025

The "Auto Reenroll Act of 2025" amends the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 to allow for periodic automatic reenrollment in certain employer-sponsored retirement plans. This legislation specifically targets qualified automatic contribution arrangements (QACAs) and eligible automatic contribution arrangements (EACAs) . Its primary purpose is to encourage greater participation in workplace retirement savings. Under the bill, an employee's prior election to opt out of a QACA or EACA can now be set to terminate after a period ranging from one to three years. Once this opt-out election expires, the employee will be automatically reenrolled into the retirement plan at the uniform contribution percentage. To avoid reenrollment, the employee must then make a new, affirmative election to not participate or contribute. These amendments apply to plan years beginning after the date of enactment.