A Qualified Automatic Contribution Arrangement (QACA) is a special type of retirement plan feature that automatically enrolls employees to contribute a portion of their paycheck unless they opt out, and it also includes employer contributions that follow certain rules. QACAs are designed to boost participation in retirement savings by making saving the default option. To qualify, the plan must meet specific requirements, such as gradually increasing the employee’s contribution over time and providing matching or nonelective contributions from the employer. In return, employers who use a QACA may be exempt from certain annual testing requirements that check whether a plan treats employees fairly.