‘(A) which covers each qualifying employee of the covered employer for the calendar year,
‘(B) under which a qualifying employee--
‘(i) may elect--
‘(I) to contribute to an individual retirement plan, or to purchase a qualified retirement bond on behalf of the employee, by having the employer deposit payroll deduction amounts or make other periodic direct deposits (including electronic payments) to the plan or to be invested in retirement bonds (whether to the Secretary of the Treasury or to a designated trustee or other agent for that purpose), or
‘(II) to have such payments paid to the employee directly in cash,
‘(ii) is treated as having made the election under clause (i)(I) in the amount specified in paragraph (4) until the individual specifically elects not to have such contributions or purchases made (or specifically elects to have such contributions or purchases made at a different percentage or in a different amount), and
[automatic opt-in until employee opts out. -ed]
‘(iii) may elect to modify the manner in which such amounts are invested for such year,
‘(C) which meets the administrative requirements of paragraph (2), including the notice requirement of paragraph (2)(C), and
‘(D) which does not charge unreasonable additional fees solely on the basis that the balance in an automatic IRA is small.
No part of that definition matches what a 401K is. In fact that definition doesn’t match what a Traditional IRA or ROTH IRA is either. This sounds like a new IRA set up to purchase existing or new Government Retirement Bonds.