Secure 2.0 auto enroll exceptions - Church

Church or government agencies are exempt from being required to have auto-enroll starting in 2025.  Maybe I'm just reading too much into this, but is the exemption applicable to a plain old non-denominational church that wants a 401k plan?  They do outreach programs and such, but it all centers on their church.  They would prefer not to have auto-enroll and I think this would fit the exception to the rule.  

Any comments are appreciated

A plan is exempt from the automatic enrollment requirements of IRC 414A if it is a church plan as defined in IRC 414(e).

IRC 414(e)(1) defines a church plan as "a plan established and maintained (to the extent required in paragraph (2)(B)) for its employees (or their beneficiaries) by a church or by a convention or association of churches which is exempt from tax under section 501." There are some exceptions in 414(e)(2) and other requirements as well so I would recommend going and reading the whole subsection.

If your plan meets the definition in 414(e) then it would be exempt from the automatic enrollment requirement.

"Who's the Employer" by Derrin Watson has a chapter on church and governmental employers - you may find that to be a helpful resource in analyzing this question, if you have access to it.

The § 414A(c)(3) exception includes “any church plan (within the meaning of section 414(e)).”

http://uscode.house.gov/view.xhtml?req=(title:26%20section:414A%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section414A)&f=treesort&edition=prelim&num=0&jumpTo=true

Internal Revenue Code of 1986 (26 U.S.C.) § 414(e) states a definition for a church plan.

http://uscode.house.gov/view.xhtml?req=(title:26%20section:414%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section414)&f=treesort&edition=prelim&num=0&jumpTo=true

A rule interpreting some aspects of that definition is:

26 C.F.R. § 1.414(e)-1(a) https://www.ecfr.gov/current/title-26/section-1.414(e)-1.

Many books, whether print or internet-delivered, retirement-plans practitioners use include a chapter or unit on church plans. In 403(b) Answer Book, it is chapter 22.

That is great information Zeller and Peter.  Thank you.  I will use your links to reference further.