In general
A qualified cash or deferred arrangement shall be treated as an automatic contribution arrangement if the arrangement—
(i)#
provides that each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to 4 percent of the employee’s compensation unless the employee specifically elects not to have such contributions made or to have such contributions made at a different rate, and
(ii)#
meets the notice requirements under subparagraph (B).