Automatic Contribution Arrangement

[Randy Watson]

Can an ACA commence the automatic deferrals 60 days after a participant enters the plan as opposed to the first payroll period after entry? For example, assume a plan has a 6 month eligibity requirement. After 6 months, a participant enters the plan. The participant has the opportunity to elect to defer, but does nothing. If the participant has not elected to make deferrals during the 60 day period, then the plan's ACA provisions would kick in and automatically defer 2% of compensation. The participant would be able to change that autmatic election at any time. I can't find anything that would prohibit this.