II 

116TH CONGRESS 

1ST SESSION S. 972 

To amend the Internal Revenue Code of 1986 to encourage retirement 

savings, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 1, 2019 

Mr. GRASSLEY (for himself and Mr. WYDEN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to encourage 

retirement savings, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Retirement Enhancement and Savings Act of 2019’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 

Sec. 101. Multiple employer plans; pooled employer plans. 

Sec. 102. Pooled employer and multiple employer plan reporting. 


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Sec. 103. Removal of 10-percent cap from automatic enrollment safe harbor 

after first plan year. 

Sec. 104. Rules relating to election of safe harbor 401(k) status. 

Sec. 105. Increase in credit limitation for small employer pension plan startup 

costs. 

Sec. 106. Small employer automatic enrollment credit. 

Sec. 107. Certain taxable non-tuition fellowship and stipend payments treated 

as compensation for IRA purposes. 

Sec. 108. Repeal of maximum age for traditional IRA contributions. 

Sec. 109. Expansion of IRA ownership of S corporation bank stock. 

Sec. 110. Qualified employer plans prohibited from making loans through credit 

cards and other similar arrangements. 

Sec. 111. Portability of lifetime income options. 

Sec. 112. Treatment of custodial accounts on termination of section 403(b) 

plans. 

Sec. 113. Clarification of retirement income account rules relating to churchcontrolled organizations. 

TITLE II—ADMINISTRATIVE IMPROVEMENTS 

Sec. 201. Plan adopted by filing due date for year may be treated as in effect 

as of close of year. 

Sec. 202. Combined annual report for group of plans. 

Sec. 203. Disclosure regarding lifetime income. 

Sec. 204. Fiduciary safe harbor for selection of lifetime income provider. 

Sec. 205. Modification of nondiscrimination rules to protect older, longer service participants. 

Sec. 206. Modification of PBGC premiums for CSEC plans. 

TITLE III—BENEFITS RELATING TO UNITED STATES TAX COURT 

Sec. 301. Thrift Savings Plan contributions for judges in the Federal Employees Retirement System. 

Sec. 302. Change in vesting period for survivor annuities and waiver of vesting 

period in the event of assassination. 

Sec. 303. Coordination of retirement and survivor annuity with the Federal 

Employees Retirement System. 

Sec. 304. Limit on teaching compensation of retired judges. 

Sec. 305. General provisions relating to magistrate judges of the Tax Court. 

Sec. 306. Life insurance for magistrate judges of the tax court age 65 or older. 

Sec. 307. Retirement and annuity program. 

Sec. 308. Provisions for recall. 

TITLE IV—OTHER BENEFITS 

Sec. 401. Benefits provided to volunteer firefighters and emergency medical responders. 

TITLE V—REVENUE PROVISIONS 

Sec. 501. Modifications of required distribution rules for defined contribution 

accounts and plans. 

Sec. 502. Increase in penalty for failure to file. 

Sec. 503. Increased penalties for failure to file retirement plan returns. 

Sec. 504. Increase information sharing to administer excise taxes. 


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1 TITLE I—EXPANDING AND PRE2 SERVING RETIREMENT SAV3 INGS 

4 SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EM5 PLOYER PLANS. 

6 (a) QUALIFICATION REQUIREMENTS.— 

7 (1) IN GENERAL.—Section 413 of the Internal 

8 Revenue Code of 1986 is amended by adding at the 

9 end the following new subsection: 

10 ‘‘(e) APPLICATION OF QUALIFICATION REQUIRE11 MENTS FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH

12 POOLED PLAN PROVIDERS.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), if a defined contribution plan to which 

15 subsection (c) applies— 

16 ‘‘(A) is maintained by employers which 

17 have a common interest other than having 

18 adopted the plan, or 

19 ‘‘(B) in the case of a plan not described in 

20 subparagraph (A), has a pooled plan provider, 

21 then the plan shall not be treated as failing to meet 

22 the requirements under this title applicable to a plan 

23 described in section 401(a) or to a plan that consists 

24 of individual retirement accounts described in sec25 tion 408 (including by reason of subsection (c) 


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1 thereof), whichever is applicable, merely because one 

2 or more employers of employees covered by the plan 

3 fail to take such actions as are required of such em4 ployers for the plan to meet such requirements. 

5 ‘‘(2) LIMITATIONS.— 

6 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

7 not apply to any plan unless the terms of the 

8 plan provide that in the case of any employer 

9 in the plan failing to take the actions described 

10 in paragraph (1)— 

11 ‘‘(i) the assets of the plan attributable 

12 to employees of such employer (or bene13 ficiaries of such employees) will be trans14 ferred to a plan maintained only by such 

15 employer (or its successor), to an eligible 

16 retirement plan as defined in section 

17 402(c)(8)(B) for each individual whose ac18 count is transferred, or to any other ar19 rangement that the Secretary determines is 

20 appropriate, unless the Secretary deter21 mines it is in the best interests of the em22 ployees of such employer (and the bene23 ficiaries of such employees) to retain the 

24 assets in the plan, and 


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1 ‘‘(ii) such employer (and not the plan 

2 with respect to which the failure occurred 

3 or any other employer in such plan) shall, 

4 except to the extent provided by the Sec5 retary, be liable for any liabilities with re6 spect to such plan attributable to employ7 ees of such employer (or beneficiaries of 

8 such employees). 

9 ‘‘(B) FAILURES BY POOLED PLAN PRO10 VIDERS.—If the pooled plan provider of a plan 

11 described in paragraph (1)(B) does not perform 

12 substantially all of the administrative duties 

13 which are required of the provider under para14 graph (3)(A)(i) for any plan year, the Secretary 

15 may provide that the determination as to 

16 whether the plan meets the requirements under 

17 this title applicable to a plan described in sec18 tion 401(a) or to a plan that consists of indi19 vidual retirement accounts described in section 

20 408 (including by reason of subsection (c) 

21 thereof), whichever is applicable, shall be made 

22 in the same manner as would be made without 

23 regard to paragraph (1). 

24 ‘‘(3) POOLED PLAN PROVIDER.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 subsection, the term ‘pooled plan provider’ 

3 means, with respect to any plan, a person 

4 who— 

5 ‘‘(i) is designated by the terms of the 

6 plan as a named fiduciary (within the 

7 meaning of section 402(a)(2) of the Em8 ployee Retirement Income Security Act of 

9 1974), as the plan administrator, and as 

10 the person responsible to perform all ad11 ministrative duties (including conducting 

12 proper testing with respect to the plan and 

13 the employees of each employer in the 

14 plan) which are reasonably necessary to 

15 ensure that— 

16 ‘‘(I) the plan meets any require17 ment applicable under the Employee 

18 Retirement Income Security Act of 

19 1974 or this title to a plan described 

20 in section 401(a) or to a plan that 

21 consists of individual retirement ac22 counts described in section 408 (in23 cluding by reason of subsection (c) 

24 thereof), whichever is applicable, and 


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1 ‘‘(II) each employer in the plan 

2 takes such actions as the Secretary or 

3 such person determines are necessary 

4 for the plan to meet the requirements 

5 described in subclause (I), including 

6 providing to such person any disclo7 sures or other information which the 

8 Secretary may require or which such 

9 person otherwise determines are nec10 essary to administer the plan or to 

11 allow the plan to meet such require12 ments, 

13 ‘‘(ii) registers as a pooled plan pro14 vider with the Secretary, and provides such 

15 other information to the Secretary as the 

16 Secretary may require, before beginning 

17 operations as a pooled plan provider, 

18 ‘‘(iii) acknowledges in writing that 

19 such person is a named fiduciary (within 

20 the meaning of section 402(a)(2) of the 

21 Employee Retirement Income Security Act 

22 of 1974), and the plan administrator, with 

23 respect to the plan, and 

24 ‘‘(iv) is responsible for ensuring that 

25 all persons who handle assets of, or who 


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1 are fiduciaries of, the plan are bonded in 

2 accordance with section 412 of the Em3 ployee Retirement Income Security Act of 

4 1974. 

5 ‘‘(B) AUDITS, EXAMINATIONS AND INVES6 TIGATIONS.—The Secretary may perform au7 dits, examinations, and investigations of pooled 

8 plan providers as may be necessary to enforce 

9 and carry out the purposes of this subsection. 

10 ‘‘(C) AGGREGATION RULES.—For purposes 

11 of this paragraph, in determining whether a 

12 person meets the requirements of this para13 graph to be a pooled plan provider with respect 

14 to any plan, all persons who perform services 

15 for the plan and who are treated as a single 

16 employer under subsection (b), (c), (m), or (o) 

17 of section 414 shall be treated as one person. 

18 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

19 SPONSORS.—Except with respect to the admin20 istrative duties of the pooled plan provider de21 scribed in subparagraph (A)(i), and except to 

22 the extent that employers in the plan are treat23 ed as a single employer under subsection (c), 

24 each employer in a plan which has a pooled 

25 plan provider shall be treated as the plan sponVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 sor with respect to the portion of the plan at2 tributable to employees of such employer (or 

3 beneficiaries of such employees). 

4 ‘‘(4) GUIDANCE.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 issue such guidance as the Secretary determines 

7 appropriate to carry out the purposes of this 

8 subsection, including guidance— 

9 ‘‘(i) to identify the administrative du10 ties and other actions required to be per11 formed by a pooled plan provider under 

12 this subsection, 

13 ‘‘(ii) which describes the procedures to 

14 be taken to terminate a plan which fails to 

15 meet the requirements to be a plan de16 scribed in paragraph (1), including the ac17 tions needed to be taken by any employer 

18 in the plan and the proper treatment of 

19 such employers and the assets and liabil20 ities of the plan attributable to employees 

21 of such employers (or beneficiaries of such 

22 employees), and 

23 ‘‘(iii) identifying appropriate cases to 

24 which the rules of paragraph (2)(A) will 

25 apply to employers in the plan failing to 


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1 take the actions described in paragraph 

2 (1). 

3 The Secretary shall take into account under 

4 clause (iii) whether the failure of an employer 

5 or pooled plan provider to provide any disclo6 sures or other information, or to take any other 

7 action, necessary to administer a plan or to 

8 allow a plan to meet requirements applicable to 

9 the plan under section 401(a) or 408, whichever 

10 is applicable, has continued over a period of 

11 time that demonstrates a lack of commitment 

12 to compliance. 

13 ‘‘(B) GOOD FAITH COMPLIANCE WITH LAW

14 BEFORE GUIDANCE.—An employer or pooled 

15 plan provider shall not be treated as failing to 

16 meet any requirement of this subsection if, be17 fore the issuance of the guidance under sub18 paragraph (A), the employer or pooled plan pro19 vider has complied in good faith with a reason20 able interpretation of the provisions of this sub21 section to which such guidance relates. 

22 ‘‘(5) MODEL PLAN.—The Secretary, in con23 sultation with the Secretary of Labor, shall publish 

24 model plan language which meets the requirements 

25 of this subsection and of paragraphs (43) and (44) 


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1 of section 3 of the Employee Retirement Income Se2 curity Act of 1974 and which may be adopted in 

3 order for a plan to be treated as a plan described 

4 in paragraph (1)(B).’’. 

5 (2) CONFORMING AMENDMENT.—Section 

6 413(c)(2) of such Code is amended by striking ‘‘sec7 tion 401(a)’’ and inserting ‘‘sections 401(a) and 

8 408(c)’’. 

9 (3) TECHNICAL AMENDMENTS.— 

10 (A) Section 45E(d)(3)(A) of such Code is 

11 amended by striking ‘‘effective’’ and inserting 

12 ‘‘effective with respect to the eligible employer’’. 

13 (B) Section 408(c) of such Code is amend14 ed by inserting after paragraph (2) the fol15 lowing new paragraph: 

16 ‘‘(3) There is a separate accounting for any in17 terest of an employee or member (or spouse of an 

18 employee or member) in a Roth IRA.’’. 

19 (b) NO COMMON INTEREST REQUIRED FOR POOLED

20 EMPLOYER PLANS.—Section 3(2) of the Employee Retire21 ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 

22 is amended by adding at the end the following: 

23 ‘‘(C) A pooled employer plan shall be treat24 ed as— 


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1 ‘‘(i) a single employee pension benefit 

2 plan or single pension plan; and 

3 ‘‘(ii) a plan to which section 210(a) 

4 applies.’’. 

5 (c) POOLED EMPLOYER PLAN AND PROVIDER DE6 FINED.— 

7 (1) IN GENERAL.—Section 3 of the Employee 

8 Retirement Income Security Act of 1974 (29 U.S.C. 

9 1002) is amended by adding at the end the fol10 lowing: 

11 ‘‘(43) POOLED EMPLOYER PLAN.— 

12 ‘‘(A) IN GENERAL.—The term ‘pooled em13 ployer plan’ means a plan— 

14 ‘‘(i) which is an individual account 

15 plan established or maintained for the pur16 pose of providing benefits to the employees 

17 of two or more employers; 

18 ‘‘(ii) which is a plan described in sec19 tion 401(a) of the Internal Revenue Code 

20 of 1986 which includes a trust exempt 

21 from tax under section 501(a) of such 

22 Code or a plan that consists of individual 

23 retirement accounts described in section 

24 408 of such Code (including by reason of 

25 subsection (c) thereof); and 


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1 ‘‘(iii) the terms of which meet the re2 quirements of subparagraph (B). 

3 Such term shall not include a plan maintained 

4 by employers which have a common interest 

5 other than having adopted the plan. 

6 ‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 

7 The requirements of this subparagraph are met 

8 with respect to any plan if the terms of the 

9 plan— 

10 ‘‘(i) designate a pooled plan provider 

11 and provide that the pooled plan provider 

12 is a named fiduciary of the plan; 

13 ‘‘(ii) designate one or more trustees 

14 meeting the requirements of section 

15 408(a)(2) of the Internal Revenue Code of 

16 1986 (other than an employer in the plan) 

17 to be responsible for collecting contribu18 tions to, and holding the assets of, the 

19 plan and require such trustees to imple20 ment written contribution collection proce21 dures that are reasonable, diligent, and 

22 systematic; 

23 ‘‘(iii) provide that each employer in 

24 the plan retains fiduciary responsibility 

25 for— 


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1 ‘‘(I) the selection and monitoring 

2 in accordance with section 404(a) of 

3 the person designated as the pooled 

4 plan provider and any other person 

5 who, in addition to the pooled plan 

6 provider, is designated as a named fi7 duciary of the plan; and 

8 ‘‘(II) to the extent not otherwise 

9 delegated to another fiduciary by the 

10 pooled plan provider and subject to 

11 the provisions of section 404(c), the 

12 investment and management of the 

13 portion of the plan’s assets attrib14 utable to the employees of the em15 ployer (or beneficiaries of such em16 ployees); 

17 ‘‘(iv) provide that employers in the 

18 plan, and participants and beneficiaries, 

19 are not subject to unreasonable restric20 tions, fees, or penalties with regard to 

21 ceasing participation, receipt of distribu22 tions, or otherwise transferring assets of 

23 the plan in accordance with section 208 or 

24 paragraph (44)(C)(i)(II); 

25 ‘‘(v) require— 


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1 ‘‘(I) the pooled plan provider to 

2 provide to employers in the plan any 

3 disclosures or other information which 

4 the Secretary may require, including 

5 any disclosures or other information 

6 to facilitate the selection or any moni7 toring of the pooled plan provider by 

8 employers in the plan; and 

9 ‘‘(II) each employer in the plan 

10 to take such actions as the Secretary 

11 or the pooled plan provider determines 

12 are necessary to administer the plan 

13 or for the plan to meet any require14 ment applicable under this Act or the 

15 Internal Revenue Code of 1986 to a 

16 plan described in section 401(a) of 

17 such Code or to a plan that consists 

18 of individual retirement accounts de19 scribed in section 408 of such Code 

20 (including by reason of subsection (c) 

21 thereof), whichever is applicable, in22 cluding providing any disclosures or 

23 other information which the Secretary 

24 may require or which the pooled plan 

25 provider otherwise determines are necVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 essary to administer the plan or to 

2 allow the plan to meet such require3 ments; and 

4 ‘‘(vi) provide that any disclosure or 

5 other information required to be provided 

6 under clause (v) may be provided in elec7 tronic form and will be designed to ensure 

8 only reasonable costs are imposed on 

9 pooled plan providers and employers in the 

10 plan. 

11 ‘‘(C) EXCEPTIONS.—The term ‘pooled em12 ployer plan’ does not include— 

13 ‘‘(i) a multiemployer plan; or 

14 ‘‘(ii) a plan established before the 

15 date of the enactment of the Retirement 

16 Enhancement and Savings Act of 2019 un17 less the plan administrator elects that the 

18 plan will be treated as a pooled employer 

19 plan and the plan meets the requirements 

20 of this title applicable to a pooled employer 

21 plan established on or after such date. 

22 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

23 SPONSORS.—Except with respect to the admin24 istrative duties of the pooled plan provider de25 scribed in paragraph (44)(A)(i), and except to 


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1 the extent that employers in the plan are treat2 ed as a single employer under section 210, each 

3 employer in a pooled employer plan shall be 

4 treated as the plan sponsor with respect to the 

5 portion of the plan attributable to employees of 

6 such employer (or beneficiaries of such employ7 ees). 

8 ‘‘(44) POOLED PLAN PROVIDER.— 

9 ‘‘(A) IN GENERAL.—The term ‘pooled plan 

10 provider’ means a person who— 

11 ‘‘(i) is designated by the terms of a 

12 pooled employer plan as a named fiduciary, 

13 as the plan administrator, and as the per14 son responsible for the performance of all 

15 administrative duties (including conducting 

16 proper testing with respect to the plan and 

17 the employees of each employer in the 

18 plan) which are reasonably necessary to 

19 ensure that— 

20 ‘‘(I) the plan meets any require21 ment applicable under this Act or the 

22 Internal Revenue Code of 1986 to a 

23 plan described in section 401(a) of 

24 such Code or to a plan that consists 

25 of individual retirement accounts deVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 scribed in section 408 of such Code 

2 (including by reason of subsection (c) 

3 thereof), whichever is applicable; and 

4 ‘‘(II) each employer in the plan 

5 takes such actions as the Secretary or 

6 pooled plan provider determines are 

7 necessary for the plan to meet the re8 quirements described in subclause (I), 

9 including providing the disclosures 

10 and information described in para11 graph (43)(B)(v)(II); 

12 ‘‘(ii) registers as a pooled plan pro13 vider with the Secretary, and provides to 

14 the Secretary such other information as 

15 the Secretary may require, before begin16 ning operations as a pooled plan provider; 

17 ‘‘(iii) acknowledges in writing that 

18 such person is a named fiduciary, and the 

19 plan administrator, with respect to the 

20 pooled employer plan; and 

21 ‘‘(iv) is responsible for ensuring that 

22 all persons who handle assets of, or who 

23 are fiduciaries of, the pooled employer plan 

24 are bonded in accordance with section 412. 


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1 ‘‘(B) AUDITS, EXAMINATIONS AND INVES2 TIGATIONS.—The Secretary may perform au3 dits, examinations, and investigations of pooled 

4 plan providers as may be necessary to enforce 

5 and carry out the purposes of this paragraph 

6 and paragraph (43). 

7 ‘‘(C) GUIDANCE.— 

8 ‘‘(i) IN GENERAL.—The Secretary 

9 shall issue such guidance as the Secretary 

10 determines appropriate to carry out the 

11 purposes of this paragraph and paragraph 

12 (43), including guidance— 

13 ‘‘(I) to identify the administra14 tive duties and other actions required 

15 to be performed by a pooled plan pro16 vider under either such paragraph; 

17 and 

18 ‘‘(II) which requires in appro19 priate cases that if an employer in the 

20 plan fails to take the actions required 

21 under subparagraph (A)(i)(II)— 

22 ‘‘(aa) the assets of the plan 

23 attributable to employees of such 

24 employer (or beneficiaries of such 

25 employees) are transferred to a 


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1 plan maintained only by such em2 ployer (or its successor), to an el3 igible retirement plan as defined 

4 in section 402(c)(8)(B) of the In5 ternal Revenue Code of 1986 for 

6 each individual whose account is 

7 transferred, or to any other ar8 rangement that the Secretary de9 termines is appropriate in such 

10 guidance; and 

11 ‘‘(bb) such employer (and 

12 not the plan with respect to 

13 which the failure occurred or any 

14 other employer in such plan) 

15 shall, except to the extent pro16 vided in such guidance, be liable 

17 for any liabilities with respect to 

18 such plan attributable to employ19 ees of such employer (or bene20 ficiaries of such employees). 

21 The Secretary shall take into account 

22 under subclause (II) whether the failure of 

23 an employer or pooled plan provider to 

24 provide any disclosures or other informa25 tion, or to take any other action, necessary 


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1 to administer a plan or to allow a plan to 

2 meet requirements described in subpara3 graph (A)(i)(II) has continued over a pe4 riod of time that demonstrates a lack of 

5 commitment to compliance. The Secretary 

6 may waive the requirements of subclause 

7 (II)(aa) in appropriate circumstances if the 

8 Secretary determines it is in the best inter9 ests of the employees of the employer re10 ferred to in such subclause (and the bene11 ficiaries of such employees) to retain the 

12 assets in the plan with respect to which the 

13 employer’s failure occurred. 

14 ‘‘(ii) GOOD FAITH COMPLIANCE WITH

15 LAW BEFORE GUIDANCE.—An employer or 

16 pooled plan provider shall not be treated as 

17 failing to meet any requirement of this 

18 paragraph or paragraph (43) if, before the 

19 issuance of the guidance under clause (i), 

20 the employer or pooled plan provider has 

21 complied in good faith with a reasonable 

22 interpretation of the provisions of the 

23 paragraph to which such guidance relates. 

24 ‘‘(D) AGGREGATION RULES.—For purposes 

25 of this paragraph, in determining whether a 


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1 person meets the requirements of this para2 graph to be a pooled plan provider with respect 

3 to any plan, all persons who perform services 

4 for the plan and who are treated as a single 

5 employer under subsection (b), (c), (m), or (o) 

6 of section 414 of the Internal Revenue Code of 

7 1986 shall be treated as one person.’’. 

8 (2) BONDING REQUIREMENTS FOR POOLED EM9 PLOYER PLANS.—The last sentence of section 412(a) 

10 of the Employee Retirement Income Security Act of 

11 1974 (29 U.S.C. 1112(a)) is amended by inserting 

12 ‘‘or in the case of a pooled employer plan (as defined 

13 in section 3(43))’’ after ‘‘section 407(d)(1))’’. 

14 (3) CONFORMING AND TECHNICAL AMEND15 MENTS.—Section 3 of the Employee Retirement In16 come Security Act of 1974 (29 U.S.C. 1002) is 

17 amended— 

18 (A) in paragraph (16)(B)— 

19 (i) by striking ‘‘or’’ at the end of 

20 clause (ii); and 

21 (ii) by striking the period at the end 

22 and inserting ‘‘, or (iv) in the case of a 

23 pooled employer plan, the pooled plan pro24 vider.’’; and 

25 (B) by striking the second paragraph (41). 


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1 (d) EFFECTIVE DATE.— 

2 (1) IN GENERAL.—The amendments made by 

3 this section shall apply to plan years beginning after 

4 December 31, 2022. 

5 (2) RULE OF CONSTRUCTION.—Nothing in the 

6 amendments made by subsection (a) shall be con7 strued as limiting the authority of the Secretary of 

8 the Treasury or the Secretary’s delegate (determined 

9 without regard to such amendments) to provide for 

10 the proper treatment of a failure to meet any re11 quirement applicable under the Internal Revenue 

12 Code of 1986 with respect to one employer (and its 

13 employees) in a multiple employer plan. 

14 SEC. 102. POOLED EMPLOYER AND MULTIPLE EMPLOYER 

15 PLAN REPORTING. 

16 (a) ADDITIONAL INFORMATION.—Section 103 of the 

17 Employee Retirement Income Security Act of 1974 (29 

18 U.S.C. 1023) is amended— 

19 (1) in subsection (a)(1)(B), by striking ‘‘appli20 cable subsections (d), (e), and (f)’’ and inserting 

21 ‘‘applicable subsections (d), (e), (f), and (g)’’; and 

22 (2) by amending subsection (g) to read as fol23 lows: 

24 ‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO

25 POOLED EMPLOYER AND MULTIPLE EMPLOYER


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1 PLANS.—An annual report under this section for a plan 

2 year shall include— 

3 ‘‘(1) with respect to any plan to which section 

4 210(a) applies (including a pooled employer plan), a 

5 list of employers in the plan, a good faith estimate 

6 of the percentage of total contributions made by 

7 such employers during the plan year, and the aggre8 gate account balances attributable to each employer 

9 in the plan (determined as the sum of the account 

10 balances of the employees of such employer (and the 

11 beneficiaries of such employees)); and 

12 ‘‘(2) with respect to a pooled employer plan, the 

13 identifying information for the person designated 

14 under the terms of the plan as the pooled plan pro15 vider.’’. 

16 (b) SIMPLIFIED ANNUAL REPORTS.—Section 104(a) 

17 of the Employee Retirement Income Security Act of 1974 

18 (29 U.S.C. 1024(a)) is amended by striking paragraph 

19 (2)(A) and inserting the following: 

20 ‘‘(2)(A) With respect to annual reports required 

21 to be filed with the Secretary under this part, the 

22 Secretary may by regulation prescribe simplified an23 nual reports for any pension plan that— 

24 ‘‘(i) covers fewer than 100 participants; or 


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1 ‘‘(ii) is a plan described in section 210(a) 

2 that covers fewer than 1,000 participants, but 

3 only if no single employer in the plan has 100 

4 or more participants covered by the plan.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to annual reports for plan years 

7 beginning after December 31, 2022. 

8 SEC. 103. REMOVAL OF 10-PERCENT CAP FROM AUTOMATIC 

9 ENROLLMENT SAFE HARBOR AFTER FIRST 

10 PLAN YEAR. 

11 (a) IN GENERAL.—Clause (iii) of section 

12 401(k)(13)(C) of the Internal Revenue Code of 1986 is 

13 amended by striking ‘‘, does not exceed 10 percent, and 

14 is at least’’ and inserting ‘‘and is’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Subclause (I) of section 401(k)(13)(C)(iii) 

17 of the Internal Revenue Code of 1986 is amended by 

18 striking ‘‘3 percent’’ and inserting ‘‘at least 3 per19 cent, but not greater than 10 percent,’’. 

20 (2) Subclause (II) of section 401(k)(13)(C)(iii) 

21 of such Code is amended by striking ‘‘4 percent’’ 

22 and inserting ‘‘at least 4 percent’’. 

23 (3) Subclause (III) of section 401(k)(13)(C)(iii) 

24 of such Code is amended by striking ‘‘5 percent’’ 

25 and inserting ‘‘at least 5 percent’’. 


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1 (4) Subclause (IV) of section 401(k)(13)(C)(iii) 

2 of such Code is amended by striking ‘‘6 percent’’ 

3 and inserting ‘‘at least 6 percent’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to plan years beginning after De6 cember 31, 2019. 

7 SEC. 104. RULES RELATING TO ELECTION OF SAFE HARBOR 

8 401(k) STATUS. 

9 (a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE

10 TO MATCHING CONTRIBUTION PLANS.— 

11 (1) IN GENERAL.—Subparagraph (A) of section 

12 401(k)(12) of the Internal Revenue Code of 1986 is 

13 amended by striking ‘‘if such arrangement’’ and all 

14 that follows and inserting ‘‘if such arrangement— 

15 ‘‘(i) meets the contribution require16 ments of subparagraph (B) and the notice 

17 requirements of subparagraph (D), or 

18 ‘‘(ii) meets the contribution require19 ments of subparagraph (C).’’. 

20 (2) AUTOMATIC CONTRIBUTION ARRANGE21 MENTS.—Subparagraph (B) of section 401(k)(13) of 

22 such Code is amended by striking ‘‘means’’ and all 

23 that follows and inserting ‘‘means a cash or deferred 

24 arrangement— 


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1 ‘‘(i) which is described in subpara2 graph (D)(i)(I) and meets the applicable 

3 requirements of subparagraphs (C) 

4 through (E), or 

5 ‘‘(ii) which is described in subpara6 graph (D)(i)(II) and meets the applicable 

7 requirements of subparagraphs (C) and 

8 (D).’’. 

9 (b) NONELECTIVE CONTRIBUTIONS.—Section 

10 401(k)(12) of the Internal Revenue Code of 1986 is 

11 amended by redesignating subparagraph (F) as subpara12 graph (G), and by inserting after subparagraph (E) the 

13 following new subparagraph: 

14 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

15 EMPLOYER MAKING NONELECTIVE CONTRIBU16 TIONS.— 

17 ‘‘(i) IN GENERAL.—Except as pro18 vided in clause (ii), a plan may be amend19 ed after the beginning of a plan year to 

20 provide that the requirements of subpara21 graph (C) shall apply to the arrangement 

22 for the plan year, but only if the amend23 ment is adopted— 


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1 ‘‘(I) at any time before the 30th 

2 day before the close of the plan year, 

3 or 

4 ‘‘(II) at any time before the last 

5 day under paragraph (8)(A) for dis6 tributing excess contributions for the 

7 plan year. 

8 ‘‘(ii) EXCEPTION WHERE PLAN PRO9 VIDED FOR MATCHING CONTRIBUTIONS.— 

10 Clause (i) shall not apply to any plan year 

11 if the plan provided at any time during the 

12 plan year that the requirements of sub13 paragraph (B) or paragraph (13)(D)(i)(I) 

14 applied to the plan year. 

15 ‘‘(iii) 4-PERCENT CONTRIBUTION RE16 QUIREMENT.—Clause (i)(II) shall not 

17 apply to an arrangement unless the 

18 amount of the contributions described in 

19 subparagraph (C) which the employer is 

20 required to make under the arrangement 

21 for the plan year with respect to any em22 ployee is an amount equal to at least 4 

23 percent of the employee’s compensation.’’. 


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1 (c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 

2 Section 401(k)(13) of the Internal Revenue Code of 1986 

3 is amended by adding at the end the following: 

4 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

5 EMPLOYER MAKING NONELECTIVE CONTRIBU6 TIONS.— 

7 ‘‘(i) IN GENERAL.—Except as pro8 vided in clause (ii), a plan may be amend9 ed after the beginning of a plan year to 

10 provide that the requirements of subpara11 graph (D)(i)(II) shall apply to the arrange12 ment for the plan year, but only if the 

13 amendment is adopted— 

14 ‘‘(I) at any time before the 30th 

15 day before the close of the plan year, 

16 or 

17 ‘‘(II) at any time before the last 

18 day under paragraph (8)(A) for dis19 tributing excess contributions for the 

20 plan year. 

21 ‘‘(ii) EXCEPTION WHERE PLAN PRO22 VIDED FOR MATCHING CONTRIBUTIONS.— 

23 Clause (i) shall not apply to any plan year 

24 if the plan provided at any time during the 

25 plan year that the requirements of subVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 paragraph (D)(i)(I) or paragraph (12)(B) 

2 applied to the plan year. 

3 ‘‘(iii) 4-PERCENT CONTRIBUTION RE4 QUIREMENT.—Clause (i)(II) shall not 

5 apply to an arrangement unless the 

6 amount of the contributions described in 

7 subparagraph (D)(i)(II) which the em8 ployer is required to make under the ar9 rangement for the plan year with respect 

10 to any employee is an amount equal to at 

11 least 4 percent of the employee’s com12 pensation.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to plan years beginning after De15 cember 31, 2019. 

16 SEC. 105. INCREASE IN CREDIT LIMITATION FOR SMALL 

17 EMPLOYER PENSION PLAN STARTUP COSTS. 

18 (a) IN GENERAL.—Paragraph (1) of section 45E(b) 

19 of the Internal Revenue Code of 1986 is amended to read 

20 as follows: 

21 ‘‘(1) for the first credit year and each of the 2 

22 taxable years immediately following the first credit 

23 year, the greater of— 

24 ‘‘(A) $500, or 

25 ‘‘(B) the lesser of— 


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1 ‘‘(i) $250 for each employee of the eli2 gible employer who is not a highly com3 pensated employee (as defined in section 

4 414(q)) and who is eligible to participate 

5 in the eligible employer plan maintained by 

6 the eligible employer, or 

7 ‘‘(ii) $5,000, and’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2019. 

11 SEC. 106. SMALL EMPLOYER AUTOMATIC ENROLLMENT 

12 CREDIT. 

13 (a) IN GENERAL.—Subpart D of part IV of sub14 chapter A of chapter 1 of the Internal Revenue Code of 

15 1986 is amended by adding at the end the following new 

16 section: 

17 ‘‘SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT 

18 SAVINGS OPTIONS PROVIDED BY SMALL EM19 PLOYERS. 

20 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

21 the case of an eligible employer, the retirement auto-en22 rollment credit determined under this section for any tax23 able year is an amount equal to— 

24 ‘‘(1) $500 for any taxable year occurring during 

25 the credit period, and 


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1 ‘‘(2) zero for any other taxable year. 

2 ‘‘(b) CREDIT PERIOD.—For purposes of subsection 

3 (a)— 

4 ‘‘(1) IN GENERAL.—The credit period with re5 spect to any eligible employer is the 3-taxable-year 

6 period beginning with the first taxable year for 

7 which the employer includes an eligible automatic 

8 contribution arrangement (as defined in section 

9 414(w)(3)) in a qualified employer plan (as defined 

10 in section 4972(d)) sponsored by the employer. 

11 ‘‘(2) MAINTENANCE OF ARRANGEMENT.—No 

12 taxable year with respect to an employer shall be 

13 treated as occurring within the credit period unless 

14 the arrangement described in paragraph (1) is in15 cluded in the plan for such year. 

16 ‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 

17 section, the term ‘eligible employer’ has the meaning given 

18 such term in section 408(p)(2)(C)(i).’’. 

19 (b) CREDIT TO BE PART OF GENERAL BUSINESS

20 CREDIT.—Subsection (b) of section 38 of the Internal 

21 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 

22 the end of paragraph (31), by striking the period at the 

23 end of paragraph (32) and inserting ‘‘, plus’’, and by add24 ing at the end the following new paragraph: 


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1 ‘‘(33) in the case of an eligible employer (as de2 fined in section 45T(c)), the retirement auto-enroll3 ment credit determined under section 45T(a).’’. 

4 (c) CLERICAL AMENDMENT.—The table of sections 

5 for subpart D of part IV of subchapter A of chapter 1 

6 of the Internal Revenue Code of 1986 is amended by in7 serting after the item relating to section 45S the following 

8 new item: 

‘‘Sec. 45T. Auto-enrollment option for retirement savings options provided by 

small employers.’’. 

9 (d) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2019. 

12 SEC. 107. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 

13 AND STIPEND PAYMENTS TREATED AS COM14 PENSATION FOR IRA PURPOSES. 

15 (a) IN GENERAL.—Paragraph (1) of section 219(f) 

16 of the Internal Revenue Code of 1986 is amended by add17 ing at the end the following: ‘‘The term ‘compensation’ 

18 shall include any amount paid to an individual to aid the 

19 individual in the pursuit of graduate or postdoctoral study, 

20 if such amount is included in the gross income of the indi21 vidual for the taxable year.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2019. 


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1 SEC. 108. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 

2 CONTRIBUTIONS. 

3 (a) IN GENERAL.—Paragraph (1) of section 219(d) 

4 of the Internal Revenue Code of 1986 is repealed. 

5 (b) CONFORMING AMENDMENT.—Subsection (c) of 

6 section 408A of the Internal Revenue Code of 1986 is 

7 amended by striking paragraph (4) and by redesignating 

8 paragraphs (5), (6), and (7) as paragraphs (4), (5), and 

9 (6), respectively. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to contributions made for taxable 

12 years beginning after December 31, 2019. 

13 SEC. 109. EXPANSION OF IRA OWNERSHIP OF S CORPORA14 TION BANK STOCK. 

15 (a) IN GENERAL.—Section 1361(c)(2)(A)(vi) of the 

16 Internal Revenue Code of 1986 is amended by striking ‘‘, 

17 but only to the extent of the stock held by such trust in 

18 such bank or company as of the date of the enactment 

19 of this clause’’. 

20 (b) SALE OF STOCK IN IRA RELATING TO S COR21 PORATION ELECTION EXEMPT FROM PROHIBITED

22 TRANSACTION RULES.—Section 4975(d)(16) of the Inter23 nal Revenue Code of 1986 is amended by striking sub24 paragraph (B) and by redesignating subparagraphs (C), 

25 (D), (E), and (F) as subparagraphs (B), (C), (D) and (E), 

26 respectively. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on January 1, 2020. 

3 SEC. 110. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 

4 MAKING LOANS THROUGH CREDIT CARDS 

5 AND OTHER SIMILAR ARRANGEMENTS. 

6 (a) IN GENERAL.—Paragraph (2) of section 72(p) of 

7 the Internal Revenue Code of 1986 is amended by redesig8 nating subparagraph (D) as subparagraph (E) and by in9 serting after subparagraph (C) the following new subpara10 graph: 

11 ‘‘(D) PROHIBITION OF LOANS THROUGH

12 CREDIT CARDS AND OTHER SIMILAR ARRANGE13 MENTS.— 

14 ‘‘(i) IN GENERAL.—Except as pro15 vided in clause (ii), subparagraph (A) shall 

16 not apply to any loan which is made 

17 through the use of any credit card or any 

18 other similar arrangement. 

19 ‘‘(ii) EXCEPTION FOR EXISTING CRED20 IT CARD SYSTEMS.—Clause (i) shall not 

21 apply to any loan to the extent such loan 

22 is provided through an electronic card sys23 tem which, as of September 21, 2016, was 

24 available for use to provide loans under 

25 qualified employer plans. 


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1 ‘‘(iii) DISALLOWED TRANSACTIONS.— 

2 If any card through which a loan is pro3 vided under the exception of clause (ii) is 

4 used for any transaction— 

5 ‘‘(I) in an amount equal to or 

6 less than $1,000, or 

7 ‘‘(II) with or on the premises of 

8 any establishment described in clause 

9 (i), (ii), or (iii) of section 

10 408(a)(12)(A) of the Social Security 

11 Act, 

12 the amount of such transaction shall be 

13 treated as having been received by the in14 dividual as a distribution in accordance 

15 with subparagraph (A) of paragraph (1). 

16 ‘‘(iv) COST-OF-LIVING ADJUST17 MENT.—In the case of any loan made dur18 ing a plan year beginning after December 

19 31, 2020, the $1,000 amount under clause 

20 (iii)(I) shall be increased by an amount 

21 equal to— 

22 ‘‘(I) such dollar amount, multi23 plied by 

24 ‘‘(II) the cost-of-living adjust25 ment determined under section 1(f)(3) 


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1 for the calendar year in which the 

2 plan year begins, determined by sub3 stituting ‘calendar year 2019’ for ‘cal4 endar year 2016’ in subparagraph 

5 (A)(ii) thereof. Any increase deter6 mined under the preceding sentence 

7 shall be rounded to the next lowest 

8 multiple of $50.’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 subsection (a) shall apply to plan years beginning after 

11 December 31, 2019. 

12 (c) STUDY.—The Comptroller General of the United 

13 States shall, not later than the date which is 1 year after 

14 the date of the enactment of this Act— 

15 (1) study the impact of loans from qualified 

16 employer plans (as defined in section 72(p)(4)(A) of 

17 the Internal Revenue Code of 1986) provided 

18 through credit cards and similar arrangements on 

19 the use of retirement savings for purposes other 

20 than funding retirement; and 

21 (2) report the results of such study to the Com22 mittee on Finance of the Senate and the Committee 

23 on the Ways and Means of the House of Representa24 tives. 


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1 If the study under paragraph (1) determines that such 

2 loans, after implementation of the restrictions imposed by 

3 the amendments made by subsection (a), result in greater 

4 usage of retirement savings for purposes other than fund5 ing retirement than loans made by other means, the report 

6 under paragraph (2) shall include recommendations to re7 duce such result. 

8 SEC. 111. PORTABILITY OF LIFETIME INCOME OPTIONS. 

9 (a) IN GENERAL.—Subsection (a) of section 401 of 

10 the Internal Revenue Code of 1986 is amended by insert11 ing after paragraph (37) the following new paragraph: 

12 ‘‘(38) PORTABILITY OF LIFETIME INCOME.— 

13 ‘‘(A) IN GENERAL.—Except as may be oth14 erwise provided by regulations, a trust forming 

15 part of a defined contribution plan shall not be 

16 treated as failing to constitute a qualified trust 

17 under this section solely by reason of allowing— 

18 ‘‘(i) qualified distributions of a life19 time income investment, or 

20 ‘‘(ii) distributions of a lifetime income 

21 investment in the form of a qualified plan 

22 distribution annuity contract, 

23 on or after the date that is 90 days prior to the 

24 date on which such lifetime income investment 


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1 is no longer authorized to be held as an invest2 ment option under the plan. 

3 ‘‘(B) DEFINITIONS.—For purposes of this 

4 subsection— 

5 ‘‘(i) the term ‘qualified distribution’ 

6 means a direct trustee-to-trustee transfer 

7 described in paragraph (31)(A) to an eligi8 ble retirement plan (as defined in section 

9 402(c)(8)(B)), 

10 ‘‘(ii) the term ‘lifetime income invest11 ment’ means an investment option which is 

12 designed to provide an employee with elec13 tion rights— 

14 ‘‘(I) which are not uniformly 

15 available with respect to other invest16 ment options under the plan, and 

17 ‘‘(II) which are to a lifetime in18 come feature available through a con19 tract or other arrangement offered 

20 under the plan (or under another eli21 gible retirement plan (as so defined), 

22 if paid by means of a direct trustee23 to-trustee transfer described in para24 graph (31)(A) to such other eligible 

25 retirement plan), 


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1 ‘‘(iii) the term ‘lifetime income fea2 ture’ means— 

3 ‘‘(I) a feature which guarantees a 

4 minimum level of income annually (or 

5 more frequently) for at least the re6 mainder of the life of the employee or 

7 the joint lives of the employee and the 

8 employee’s designated beneficiary, or 

9 ‘‘(II) an annuity payable on be10 half of the employee under which pay11 ments are made in substantially equal 

12 periodic payments (not less frequently 

13 than annually) over the life of the em14 ployee or the joint lives of the em15 ployee and the employee’s designated 

16 beneficiary, and 

17 ‘‘(iv) the term ‘qualified plan distribu18 tion annuity contract’ means an annuity 

19 contract purchased for a participant and 

20 distributed to the participant by a plan or 

21 contract described in subparagraph (B) of 

22 section 402(c)(8) (without regard to 

23 clauses (i) and (ii) thereof).’’. 

24 (b) CASH OR DEFERRED ARRANGEMENT.— 


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1 (1) IN GENERAL.—Clause (i) of section 

2 401(k)(2)(B) of the Internal Revenue Code of 1986 

3 is amended by striking ‘‘or’’ at the end of subclause 

4 (IV), by striking ‘‘and’’ at the end of subclause (V) 

5 and inserting ‘‘or’’, and by adding at the end the fol6 lowing new subclause: 

7 ‘‘(VI) except as may be otherwise 

8 provided by regulations, with respect 

9 to amounts invested in a lifetime in10 come investment (as defined in sub11 section (a)(38)(B)(ii)), the date that 

12 is 90 days prior to the date that such 

13 lifetime income investment may no 

14 longer be held as an investment option 

15 under the arrangement, and’’. 

16 (2) DISTRIBUTION REQUIREMENT.—Subpara17 graph (B) of section 401(k)(2) of such Code, as 

18 amended by paragraph (1), is amended by striking 

19 ‘‘and’’ at the end of clause (i), by striking the semi20 colon at the end of clause (ii) and inserting ‘‘, and’’, 

21 and by adding at the end the following new clause: 

22 ‘‘(iii) except as may be otherwise pro23 vided by regulations, in the case of 

24 amounts described in clause (i)(VI), will be 

25 distributed only in the form of a qualified 


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1 distribution (as defined in subsection 

2 (a)(38)(B)(i)) or a qualified plan distribu3 tion annuity contract (as defined in sub4 section (a)(38)(B)(iv)),’’. 

5 (c) SECTION 403(b) PLANS.— 

6 (1) ANNUITY CONTRACTS.—Paragraph (11) of 

7 section 403(b) of the Internal Revenue Code of 1986 

8 is amended by striking ‘‘or’’ at the end of subpara9 graph (B), by striking the period at the end of sub10 paragraph (C) and inserting ‘‘, or’’, and by inserting 

11 after subparagraph (C) the following new subpara12 graph: 

13 ‘‘(D) except as may be otherwise provided 

14 by regulations, with respect to amounts invested 

15 in a lifetime income investment (as defined in 

16 section 401(a)(38)(B)(ii))— 

17 ‘‘(i) on or after the date that is 90 

18 days prior to the date that such lifetime 

19 income investment may no longer be held 

20 as an investment option under the con21 tract, and 

22 ‘‘(ii) in the form of a qualified dis23 tribution (as defined in section 

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1 tribution annuity contract (as defined in 

2 section 401(a)(38)(B)(iv)).’’. 

3 (2) CUSTODIAL ACCOUNTS.—Subparagraph (A) 

4 of section 403(b)(7) of such Code is amended by 

5 striking ‘‘if—’’ and all that follows and inserting ‘‘if 

6 the amounts are to be invested in regulated invest7 ment company stock to be held in that custodial ac8 count, and under the custodial account— 

9 ‘‘(i) no such amounts may be paid or 

10 made available to any distributee (unless 

11 such amount is a distribution to which sec12 tion 72(t)(2)(G) applies) before— 

13 ‘‘(I) the employee dies, 

14 ‘‘(II) the employee attains age 

591 15 ⁄2, 

16 ‘‘(III) the employee has a sever17 ance from employment, 

18 ‘‘(IV) the employee becomes dis19 abled (within the meaning of section 

20 72(m)(7)), 

21 ‘‘(V) in the case of contributions 

22 made pursuant to a salary reduction 

23 agreement (within the meaning of sec24 tion 3121(a)(5)(D)), the employee en25 counters financial hardship, or 


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1 ‘‘(VI) except as may be otherwise 

2 provided by regulations, with respect 

3 to amounts invested in a lifetime in4 come investment (as defined in section 

5 401(a)(38)(B)(ii)), the date that is 90 

6 days prior to the date that such life7 time income investment may no longer 

8 be held as an investment option under 

9 the contract, and 

10 ‘‘(ii) in the case of amounts described 

11 in clause (i)(VI), such amounts will be dis12 tributed only in the form of a qualified dis13 tribution (as defined in section 

14 401(a)(38)(B)(i)) or a qualified plan dis15 tribution annuity contract (as defined in 

16 section 401(a)(38)(B)(iv)).’’. 

17 (d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 

18 (1) IN GENERAL.—Subparagraph (A) of section 

19 457(d)(1) of the Internal Revenue Code of 1986 is 

20 amended by striking ‘‘or’’ at the end of clause (ii), 

21 by inserting ‘‘or’’ at the end of clause (iii), and by 

22 adding after clause (iii) the following: 

23 ‘‘(iv) except as may be otherwise pro24 vided by regulations, in the case of a plan 

25 maintained by an employer described in 


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1 subsection (e)(1)(A), with respect to 

2 amounts invested in a lifetime income in3 vestment (as defined in section 

4 401(a)(38)(B)(ii)), the date that is 90 

5 days prior to the date that such lifetime 

6 income investment may no longer be held 

7 as an investment option under the plan,’’. 

8 (2) DISTRIBUTION REQUIREMENT.—Paragraph 

9 (1) of section 457(d) of such Code is amended by 

10 striking ‘‘and’’ at the end of subparagraph (B), by 

11 striking the period at the end of subparagraph (C) 

12 and inserting ‘‘, and’’, and by inserting after sub13 paragraph (C) the following new subparagraph: 

14 ‘‘(D) except as may be otherwise provided 

15 by regulations, in the case of amounts described 

16 in subparagraph (A)(iv), such amounts will be 

17 distributed only in the form of a qualified dis18 tribution (as defined in section 

19 401(a)(38)(B)(i)) or a qualified plan distribu20 tion annuity contract (as defined in section 

21 401(a)(38)(B)(iv)).’’. 

22 (e) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to plan years beginning after De24 cember 31, 2019. 


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1 SEC. 112. TREATMENT OF CUSTODIAL ACCOUNTS ON TER2 MINATION OF SECTION 403(b) PLAN. 

3 Not later than 6 months after the date of the enact4 ment of this Act, the Secretary of the Treasury (or the 

5 Secretary’s delegate) shall issue guidance to provide that, 

6 if an employer terminates the plan under which amounts 

7 are contributed to a custodial account under subparagraph 

8 (A) of section 403(b)(7) of the Internal Revenue Code of 

9 1986, the plan administrator or custodian may distribute 

10 an individual custodial account in kind to a participant 

11 or beneficiary of the plan and the distributed custodial ac12 count shall be maintained by the custodian on a tax-de13 ferred basis as a custodial account under such section 

14 403(b)(7), similar to the treatment of fully-paid individual 

15 annuity contracts under Revenue Ruling 2011–7, until 

16 amounts are actually paid to the participant or bene17 ficiary. The guidance shall provide further that— 

18 (1) except as otherwise specifically provided in 

19 such guidance, the distributed custodial account 

20 shall continue to be treated in the same manner as 

21 a custodial account under section 403(b)(7) of such 

22 Code if the requirements of section 403(b) of such 

23 Code (as in effect at the time of the distribution of 

24 the account) continue to be met with respect to such 

25 distributed account; and 


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1 (2) a custodial account will not be considered 

2 distributed to the participant or beneficiary if the 

3 employer has any material retained rights under the 

4 account (but the employer would not be treated as 

5 retaining material rights simply because the custo6 dial account was originally opened under a group 

7 contract). 

8 SEC. 113. CLARIFICATION OF RETIREMENT INCOME AC9 COUNT RULES RELATING TO CHURCH-CON10 TROLLED ORGANIZATIONS. 

11 (a) IN GENERAL.—Subparagraph (B) of section 

12 403(b)(9) of the Internal Revenue Code of 1986 is amend13 ed by inserting ‘‘(including an employee described in sec14 tion 414(e)(3)(B))’’ after ‘‘employee described in para15 graph (1)’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to years beginning before, on, or 

18 after the date of the enactment of this Act. 

19 TITLE II—ADMINISTRATIVE 

20 IMPROVEMENTS 

21 SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 

22 MAY BE TREATED AS IN EFFECT AS OF CLOSE 

23 OF YEAR. 

24 (a) IN GENERAL.—Subsection (b) of section 401 of 

25 the Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘RETROACTIVE CHANGES IN

2 PLAN.—A stock bonus’’ and inserting ‘‘PLAN

3 AMENDMENTS.— 

4 ‘‘(1) CERTAIN RETROACTIVE CHANGES IN

5 PLAN.—A stock bonus’’, and 

6 (2) by adding at the end the following new 

7 paragraph: 

8 ‘‘(2) ADOPTION OF PLAN.—If an employer 

9 adopts a stock bonus, pension, profit-sharing, or an10 nuity plan after the close of a taxable year but be11 fore the time prescribed by law for filing the return 

12 of the employer for the taxable year (including ex13 tensions thereof), the employer may elect to treat 

14 the plan as having been adopted as of the last day 

15 of the taxable year.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to plans adopted for taxable years 

18 beginning after December 31, 2019. 

19 SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF 

20 PLANS. 

21 (a) IN GENERAL.—The Secretary of the Treasury 

22 and the Secretary of Labor (or such Secretaries’ dele23 gates) shall, in cooperation, modify the returns required 

24 under section 6058 of the Internal Revenue Code of 1986 

25 and the reports required by section 104 of the Employee 


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1 Retirement Income Security Act of 1974 (29 U.S.C. 1024) 

2 so that all members of a group of plans described in sub3 section (c) may file a single aggregated annual return or 

4 report satisfying the requirements of both such sections. 

5 (b) ADMINISTRATIVE REQUIREMENTS.—In devel6 oping the consolidated return or report under subsection 

7 (a), the Secretary of the Treasury and the Secretary of 

8 Labor (or such Secretaries’ delegates) may require such 

9 return or report to include any information regarding each 

10 plan in the group as such Secretaries (or delegates) deter11 mine is necessary or appropriate for the enforcement and 

12 administration of the Internal Revenue Code of 1986 and 

13 the Employee Retirement Income Security Act of 1974. 

14 (c) PLANS DESCRIBED.—A group of plans is de15 scribed in this subsection if all plans in the group— 

16 (1) are individual account plans or defined con17 tribution plans (as defined in section 3(34) of the 

18 Employee Retirement Income Security Act of 1974 

19 (29 U.S.C. 1002(34)) or in section 414(i) of the In20 ternal Revenue Code of 1986); 

21 (2) have— 

22 (A) the same trustee (as described in sec23 tion 403(a) of such Act (29 U.S.C. 1103(a))); 


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1 (B) the same one or more named fidu2 ciaries (as described in section 402(a) of such 

3 Act (29 U.S.C. 1102(a))); 

4 (C) the same administrator (as defined in 

5 section 3(16)(A) of such Act (29 U.S.C. 

6 1002(16)(A))) and plan administrator (as de7 fined in section 414(g) of the Internal Revenue 

8 Code of 1986); and 

9 (D) plan years beginning on the same 

10 date; and 

11 (3) provide the same investments or investment 

12 options to participants and beneficiaries. 

13 A plan not subject to title I of the Employee Retirement 

14 Income Security Act of 1974 shall be treated as meeting 

15 the requirements of paragraph (2) as part of a group of 

16 plans if the same person that performs each of the func17 tions described in such paragraph, as applicable, for all 

18 other plans in such group performs each of such functions 

19 for such plan. 

20 (d) CLARIFICATION RELATING TO ELECTRONIC FIL21 ING OF RETURNS FOR DEFERRED COMPENSATION

22 PLANS.— 

23 (1) IN GENERAL.—Section 6011(e) of the Inter24 nal Revenue Code of 1986 is amended by adding at 

25 the end the following new paragraph: 


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1 ‘‘(6) APPLICATION OF NUMERICAL LIMITATION

2 TO RETURNS RELATING TO DEFERRED COMPENSA3 TION PLANS.—For purposes of applying the numer4 ical limitation under paragraph (2)(A) to any return 

5 required under section 6058, information regarding 

6 each plan for which information is provided on such 

7 return shall be treated as a separate return.’’. 

8 (2) EFFECTIVE DATE.—The amendment made 

9 by paragraph (1) shall apply to returns required to 

10 be filed with respect to plan years beginning after 

11 December 31, 2019. 

12 (e) EFFECTIVE DATE.—The modification required by 

13 subsection (a) shall be implemented not later than Janu14 ary 1, 2022, and shall apply to returns and reports for 

15 plan years beginning after December 31, 2021. 

16 SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME. 

17 (a) IN GENERAL.—Subparagraph (B) of section 

18 105(a)(2) of the Employee Retirement Income Security 

19 Act of 1974 (29 U.S.C. 1025(a)(2)) is amended— 

20 (1) in clause (i), by striking ‘‘and’’ at the end; 

21 (2) in clause (ii), by striking ‘‘diversification.’’ 

22 and inserting ‘‘diversification, and’’; and 

23 (3) by inserting at the end the following: 

24 ‘‘(iii) the lifetime income disclosure 

25 described in subparagraph (D)(i). 


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1 In the case of pension benefit statements de2 scribed in clause (i) of paragraph (1)(A), a life3 time income disclosure under clause (iii) of this 

4 subparagraph shall be required to be included 

5 in only one pension benefit statement during 

6 any one 12-month period.’’. 

7 (b) LIFETIME INCOME.—Paragraph (2) of section 

8 105(a) of the Employee Retirement Income Security Act 

9 of 1974 (29 U.S.C. 1025(a)) is amended by adding at the 

10 end the following new subparagraph: 

11 ‘‘(D) LIFETIME INCOME DISCLOSURE.— 

12 ‘‘(i) IN GENERAL.— 

13 ‘‘(I) DISCLOSURE.—A lifetime in14 come disclosure shall set forth the life15 time income stream equivalent of the 

16 total benefits accrued with respect to 

17 the participant or beneficiary. 

18 ‘‘(II) LIFETIME INCOME STREAM

19 EQUIVALENT OF THE TOTAL BENE20 FITS ACCRUED.—For purposes of this 

21 subparagraph, the term ‘lifetime in22 come stream equivalent of the total 

23 benefits accrued’ means the amount of 

24 monthly payments the participant or 

25 beneficiary would receive if the total 


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•S 972 IS

1 accrued benefits of such participant or 

2 beneficiary were used to provide life3 time income streams described in sub4 clause (III), based on assumptions 

5 specified in rules prescribed by the 

6 Secretary. 

7 ‘‘(III) LIFETIME INCOME

8 STREAMS.—The lifetime income 

9 streams described in this subclause 

10 are a qualified joint and survivor an11 nuity (as defined in section 205(d)), 

12 based on assumptions specified in 

13 rules prescribed by the Secretary, in14 cluding the assumption that the par15 ticipant or beneficiary has a spouse of 

16 equal age, and a single life annuity. 

17 Such lifetime income streams may 

18 have a term certain or other features 

19 to the extent permitted under rules 

20 prescribed by the Secretary. 

21 ‘‘(ii) MODEL DISCLOSURE.—Not later 

22 than 1 year after the date of the enact23 ment of the Retirement Enhancement and 

24 Savings Act of 2019, the Secretary shall 

25 issue a model lifetime income disclosure, 


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1 written in a manner so as to be understood 

2 by the average plan participant, which— 

3 ‘‘(I) explains that the lifetime in4 come stream equivalent is only pro5 vided as an illustration; 

6 ‘‘(II) explains that the actual 

7 payments under the lifetime income 

8 stream described in clause (i)(III) 

9 which may be purchased with the 

10 total benefits accrued will depend on 

11 numerous factors and may vary sub12 stantially from the lifetime income 

13 stream equivalent in the disclosures; 

14 ‘‘(III) explains the assumptions 

15 upon which the lifetime income stream 

16 equivalent was determined; and 

17 ‘‘(IV) provides such other similar 

18 explanations as the Secretary con19 siders appropriate. 

20 ‘‘(iii) ASSUMPTIONS AND RULES.— 

21 Not later than 1 year after the date of the 

22 enactment of the Retirement Enhancement 

23 and Savings Act of 2019, the Secretary 

24 shall— 


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1 ‘‘(I) prescribe assumptions which 

2 administrators of individual account 

3 plans may use in converting total ac4 crued benefits into lifetime income 

5 stream equivalents for purposes of 

6 this subparagraph; and 

7 ‘‘(II) issue interim final rules 

8 under clause (i). 

9 In prescribing assumptions under sub10 clause (I), the Secretary may prescribe a 

11 single set of specific assumptions (in which 

12 case the Secretary may issue tables or fac13 tors which facilitate such conversions), or 

14 ranges of permissible assumptions. To the 

15 extent that an accrued benefit is or may be 

16 invested in a lifetime income stream de17 scribed in clause (i)(III), the assumptions 

18 prescribed under subclause (I) shall, to the 

19 extent appropriate, permit administrators 

20 of individual account plans to use the 

21 amounts payable under such lifetime in22 come stream as a lifetime income stream 

23 equivalent. 

24 ‘‘(iv) LIMITATION ON LIABILITY.—No 

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1 son shall have any liability under this title 

2 solely by reason of the provision of lifetime 

3 income stream equivalents which are de4 rived in accordance with the assumptions 

5 and rules described in clause (iii) and 

6 which include the explanations contained in 

7 the model lifetime income disclosure de8 scribed in clause (ii). This clause shall 

9 apply without regard to whether the provi10 sion of such lifetime income stream equiva11 lent is required by subparagraph (B)(iii). 

12 ‘‘(v) EFFECTIVE DATE.—The require13 ment in subparagraph (B)(iii) shall apply 

14 to pension benefit statements furnished 

15 more than 12 months after the latest of 

16 the issuance by the Secretary of— 

17 ‘‘(I) interim final rules under 

18 clause (i); 

19 ‘‘(II) the model disclosure under 

20 clause (ii); or 

21 ‘‘(III) the assumptions under 

22 clause (iii).’’. 


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1 SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 

2 LIFETIME INCOME PROVIDER. 

3 Section 404 of the Employee Retirement Income Se4 curity Act of 1974 (29 U.S.C. 1104) is amended by adding 

5 at the end the following: 

6 ‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 

7 ‘‘(1) IN GENERAL.—With respect to the selec8 tion of an insurer for a guaranteed retirement in9 come contract, the requirements of subsection 

10 (a)(1)(B) will be deemed to be satisfied if a fidu11 ciary— 

12 ‘‘(A) engages in an objective, thorough, 

13 and analytical search for the purpose of identi14 fying insurers from which to purchase such con15 tracts; 

16 ‘‘(B) with respect to each insurer identified 

17 under subparagraph (A)— 

18 ‘‘(i) considers the financial capability 

19 of such insurer to satisfy its obligations 

20 under the guaranteed retirement income 

21 contract; and 

22 ‘‘(ii) considers the cost (including fees 

23 and commissions) of the guaranteed retire24 ment income contract offered by the in25 surer in relation to the benefits and prod26 uct features of the contract and adminisVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 trative services to be provided under such 

2 contract; and 

3 ‘‘(C) on the basis of such consideration, 

4 concludes that— 

5 ‘‘(i) at the time of the selection, the 

6 insurer is financially capable of satisfying 

7 its obligations under the guaranteed retire8 ment income contract; and 

9 ‘‘(ii) the relative cost of the selected 

10 guaranteed retirement income contract as 

11 described in subparagraph (B)(ii) is rea12 sonable. 

13 ‘‘(2) FINANCIAL CAPABILITY OF THE IN14 SURER.—A fiduciary will be deemed to satisfy the 

15 requirements of paragraphs (1)(B)(i) and (1)(C)(i) 

16 if— 

17 ‘‘(A) the fiduciary obtains written rep18 resentations from the insurer that— 

19 ‘‘(i) the insurer is licensed to offer 

20 guaranteed retirement income contracts; 

21 ‘‘(ii) the insurer, at the time of selec22 tion and for each of the immediately pre23 ceding 7 plan years— 

24 ‘‘(I) operates under a certificate 

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1 missioner of its domiciliary State 

2 which has not been revoked or sus3 pended; 

4 ‘‘(II) has filed audited financial 

5 statements in accordance with the 

6 laws of its domiciliary State under ap7 plicable statutory accounting prin8 ciples; 

9 ‘‘(III) maintains (and has main10 tained) reserves which satisfies all the 

11 statutory requirements of all States 

12 where the insurer does business; and 

13 ‘‘(IV) is not operating under an 

14 order of supervision, rehabilitation, or 

15 liquidation; 

16 ‘‘(iii) the insurer undergoes, at least 

17 every 5 years, a financial examination 

18 (within the meaning of the law of its domi19 ciliary State) by the insurance commis20 sioner of the domiciliary State (or rep21 resentative, designee, or other party ap22 proved by such commissioner); and 

23 ‘‘(iv) the insurer will notify the fidu24 ciary of any change in circumstances oc25 curring after the provision of the represenVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 tations in clauses (i), (ii), and (iii) which 

2 would preclude the insurer from making 

3 such representations at the time of 

4 issuance of the guaranteed retirement in5 come contract; and 

6 ‘‘(B) after receiving such representations 

7 and as of the time of selection, the fiduciary 

8 has not received any notice described in sub9 paragraph (A)(iv) and is in possession of no 

10 other information which would cause the fidu11 ciary to question the representations provided. 

12 ‘‘(3) NO REQUIREMENT TO SELECT LOWEST

13 COST.—Nothing in this subsection shall be construed 

14 to require a fiduciary to select the lowest cost con15 tract. A fiduciary may consider the value of a con16 tract, including features and benefits of the contract 

17 and attributes of the insurer (including, without lim18 itation, the insurer’s financial strength) in conjunc19 tion with the cost of the contract. 

20 ‘‘(4) TIME OF SELECTION.— 

21 ‘‘(A) IN GENERAL.—For purposes of this 

22 subsection, the time of selection is— 

23 ‘‘(i) the time that the insurer and the 

24 contract are selected for distribution of 


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1 benefits to a specific participant or bene2 ficiary; or 

3 ‘‘(ii) if the fiduciary periodically re4 views the continuing appropriateness of the 

5 conclusion described in paragraph (1)(C) 

6 with respect to a selected insurer, taking 

7 into account the considerations described 

8 in such paragraph, the time that the in9 surer and the contract are selected to pro10 vide benefits at future dates to participants 

11 or beneficiaries under the plan. 

12 Nothing in the preceding sentence shall be con13 strued to require the fiduciary to review the ap14 propriateness of a selection after the purchase 

15 of a contract for a participant or beneficiary. 

16 ‘‘(B) PERIODIC REVIEW.—A fiduciary will 

17 be deemed to have conducted the periodic re18 view described in subparagraph (A)(ii) if the fi19 duciary obtains the written representations de20 scribed in clauses (i), (ii), and (iii) of paragraph 

21 (2)(A) from the insurer on an annual basis, un22 less the fiduciary receives any notice described 

23 in paragraph (2)(A)(iv) or otherwise becomes 

24 aware of facts that would cause the fiduciary to 

25 question such representations. 


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1 ‘‘(5) LIMITED LIABILITY.—A fiduciary which 

2 satisfies the requirements of this subsection shall not 

3 be liable following the distribution of any benefit, or 

4 the investment by or on behalf of a participant or 

5 beneficiary pursuant to the selected guaranteed re6 tirement income contract, for any losses that may 

7 result to the participant or beneficiary due to an in8 surer’s inability to satisfy its financial obligations 

9 under the terms of such contract. 

10 ‘‘(6) DEFINITIONS.—For purposes of this sub11 section— 

12 ‘‘(A) INSURER.—The term ‘insurer’ means 

13 an insurance company, insurance service, or in14 surance organization, including affiliates of 

15 such companies. 

16 ‘‘(B) GUARANTEED RETIREMENT INCOME

17 CONTRACT.—The term ‘guaranteed retirement 

18 income contract’ means an annuity contract for 

19 a fixed term or a contract (or provision or fea20 ture thereof) which provides guaranteed bene21 fits annually (or more frequently) for at least 

22 the remainder of the life of the participant or 

23 the joint lives of the participant and the partici24 pant’s designated beneficiary as part of an indi25 vidual account plan.’’. 


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1 SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 

2 TO PROTECT OLDER, LONGER SERVICE PAR3 TICIPANTS. 

4 (a) IN GENERAL.—Section 401 of the Internal Rev5 enue Code of 1986 is amended— 

6 (1) by redesignating subsection (o) as sub7 section (p), and 

8 (2) by inserting after subsection (n) the fol9 lowing new subsection: 

10 ‘‘(o) SPECIAL RULES FOR APPLYING NON11 DISCRIMINATION RULES TO PROTECT OLDER, LONGER

12 SERVICE AND GRANDFATHERED PARTICIPANTS.— 

13 ‘‘(1) TESTING OF DEFINED BENEFIT PLANS

14 WITH CLOSED CLASSES OF PARTICIPANTS.— 

15 ‘‘(A) BENEFITS, RIGHTS, OR FEATURES

16 PROVIDED TO CLOSED CLASSES.—A defined 

17 benefit plan which provides benefits, rights, or 

18 features to a closed class of participants shall 

19 not fail to satisfy the requirements of sub20 section (a)(4) by reason of the composition of 

21 such closed class or the benefits, rights, or fea22 tures provided to such closed class, if— 

23 ‘‘(i) for the plan year as of which the 

24 class closes and the 2 succeeding plan 

25 years, such benefits, rights, and features 

26 satisfy the requirements of subsection 


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1 (a)(4) (without regard to this subpara2 graph but taking into account the rules of 

3 subparagraph (I)), 

4 ‘‘(ii) after the date as of which the 

5 class was closed, any plan amendment 

6 which modifies the closed class or the ben7 efits, rights, and features provided to such 

8 closed class does not discriminate signifi9 cantly in favor of highly compensated em10 ployees, and 

11 ‘‘(iii) the class was closed before Sep12 tember 21, 2016, or the plan is described 

13 in subparagraph (C). 

14 ‘‘(B) AGGREGATE TESTING WITH DEFINED

15 CONTRIBUTION PLANS PERMITTED ON A BENE16 FITS BASIS.— 

17 ‘‘(i) IN GENERAL.—For purposes of 

18 determining compliance with subsection 

19 (a)(4) and section 410(b), a defined benefit 

20 plan described in clause (iii) may be aggre21 gated and tested on a benefits basis with 

22 one or more defined contribution plans, in23 cluding with the portion of one or more de24 fined contribution plans which— 


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1 ‘‘(I) provides matching contribu2 tions (as defined in subsection 

3 (m)(4)(A)), 

4 ‘‘(II) provides annuity contracts 

5 described in section 403(b) which are 

6 purchased with matching contribu7 tions or nonelective contributions, or 

8 ‘‘(III) consists of an employee 

9 stock ownership plan (within the 

10 meaning of section 4975(e)(7)) or a 

11 tax credit employee stock ownership 

12 plan (within the meaning of section 

13 409(a)). 

14 ‘‘(ii) SPECIAL RULES FOR MATCHING

15 CONTRIBUTIONS.—For purposes of clause 

16 (i), if a defined benefit plan is aggregated 

17 with a portion of a defined contribution 

18 plan providing matching contributions— 

19 ‘‘(I) such defined benefit plan 

20 must also be aggregated with any por21 tion of such defined contribution plan 

22 which provides elective deferrals de23 scribed in subparagraph (A) or (C) of 

24 section 402(g)(3), and 


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1 ‘‘(II) such matching contribu2 tions shall be treated in the same 

3 manner as nonelective contributions, 

4 including for purposes of applying the 

5 rules of subsection (l). 

6 ‘‘(iii) PLANS DESCRIBED.—A defined 

7 benefit plan is described in this clause if— 

8 ‘‘(I) the plan provides benefits to 

9 a closed class of participants, 

10 ‘‘(II) for the plan year as of 

11 which the class closes and the 2 suc12 ceeding plan years, the plan satisfies 

13 the requirements of section 410(b) 

14 and subsection (a)(4) (without regard 

15 to this subparagraph but taking into 

16 account the rules of subparagraph 

17 (I)), 

18 ‘‘(III) after the date as of which 

19 the class was closed, any plan amend20 ment which modifies the closed class 

21 or the benefits provided to such closed 

22 class does not discriminate signifi23 cantly in favor of highly compensated 

24 employees, and 


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1 ‘‘(IV) the class was closed before 

2 September 21, 2016, or the plan is 

3 described in subparagraph (C). 

4 ‘‘(C) PLANS DESCRIBED.—A plan is de5 scribed in this subparagraph if, taking into ac6 count any predecessor plan— 

7 ‘‘(i) such plan has been in effect for 

8 at least 5 years as of the date the class is 

9 closed, and 

10 ‘‘(ii) during the 5-year period pre11 ceding the date the class is closed, there 

12 has not been a substantial increase in the 

13 coverage or value of the benefits, rights, or 

14 features described in subparagraph (A) or 

15 in the coverage or benefits under the plan 

16 described in subparagraph (B)(iii) (which17 ever is applicable). 

18 ‘‘(D) DETERMINATION OF SUBSTANTIAL

19 INCREASE FOR BENEFITS, RIGHTS, AND FEA20 TURES.—In applying subparagraph (C)(ii) for 

21 purposes of subparagraph (A)(iii), a plan shall 

22 be treated as having had a substantial increase 

23 in coverage or value of the benefits, rights, or 

24 features described in subparagraph (A) during 


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1 the applicable 5-year period only if, during such 

2 period— 

3 ‘‘(i) the number of participants cov4 ered by such benefits, rights, or features 

5 on the date such period ends is more than 

6 50 percent greater than the number of 

7 such participants on the first day of the 

8 plan year in which such period began, or 

9 ‘‘(ii) such benefits, rights, and fea10 tures have been modified by one or more 

11 plan amendments in such a way that, as of 

12 the date the class is closed, the value of 

13 such benefits, rights, and features to the 

14 closed class as a whole is substantially 

15 greater than the value as of the first day 

16 of such 5-year period, solely as a result of 

17 such amendments. 

18 ‘‘(E) DETERMINATION OF SUBSTANTIAL

19 INCREASE FOR AGGREGATE TESTING ON BENE20 FITS BASIS.—In applying subparagraph (C)(ii) 

21 for purposes of subparagraph (B)(iii)(IV), a 

22 plan shall be treated as having had a substan23 tial increase in coverage or benefits during the 

24 applicable 5-year period only if, during such pe25 riod— 


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1 ‘‘(i) the number of participants bene2 fiting under the plan on the date such pe3 riod ends is more than 50 percent greater 

4 than the number of such participants on 

5 the first day of the plan year in which such 

6 period began, or 

7 ‘‘(ii) the average benefit provided to 

8 such participants on the date such period 

9 ends is more than 50 percent greater than 

10 the average benefit provided on the first 

11 day of the plan year in which such period 

12 began. 

13 ‘‘(F) CERTAIN EMPLOYEES DIS14 REGARDED.—For purposes of subparagraphs 

15 (D) and (E), any increase in coverage or value 

16 or in coverage or benefits, whichever is applica17 ble, which is attributable to such coverage and 

18 value or coverage and benefits provided to em19 ployees— 

20 ‘‘(i) who became participants as a re21 sult of a merger, acquisition, or similar 

22 event which occurred during the 7-year pe23 riod preceding the date the class is closed, 

24 or 


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1 ‘‘(ii) who became participants by rea2 son of a merger of the plan with another 

3 plan which had been in effect for at least 

4 5 years as of the date of the merger, 

5 shall be disregarded, except that clause (ii) 

6 shall apply for purposes of subparagraph (D) 

7 only if, under the merger, the benefits, rights, 

8 or features under 1 plan are conformed to the 

9 benefits, rights, or features of the other plan 

10 prospectively. 

11 ‘‘(G) RULES RELATING TO AVERAGE BEN12 EFIT.—For purposes of subparagraph (E)— 

13 ‘‘(i) the average benefit provided to 

14 participants under the plan will be treated 

15 as having remained the same between the 

16 2 dates described in subparagraph (E)(ii) 

17 if the benefit formula applicable to such 

18 participants has not changed between such 

19 dates, and 

20 ‘‘(ii) if the benefit formula applicable 

21 to one or more participants under the plan 

22 has changed between such 2 dates, then 

23 the average benefit under the plan shall be 

24 considered to have increased by more than 

25 50 percent only if— 


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1 ‘‘(I) the total amount determined 

2 under section 430(b)(1)(A)(i) for all 

3 participants benefiting under the plan 

4 for the plan year in which the 5-year 

5 period described in subparagraph (E) 

6 ends, exceeds 

7 ‘‘(II) the total amount deter8 mined under section 430(b)(1)(A)(i) 

9 for all such participants for such plan 

10 year, by using the benefit formula in 

11 effect for each such participant for 

12 the first plan year in such 5-year pe13 riod, 

14 by more than 50 percent. In the case of a 

15 CSEC plan (as defined in section 414(y)), 

16 the normal cost of the plan (as determined 

17 under section 433(j)(1)(B)) shall be used 

18 in lieu of the amount determined under 

19 section 430(b)(1)(A)(i). 

20 ‘‘(H) TREATMENT AS SINGLE PLAN.—For 

21 purposes of subparagraphs (E) and (G), a plan 

22 described in section 413(c) shall be treated as 

23 a single plan rather than as separate plans 

24 maintained by each employer in the plan. 


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1 ‘‘(I) SPECIAL RULES.—For purposes of 

2 subparagraphs (A)(i) and (B)(iii)(II), the fol3 lowing rules shall apply: 

4 ‘‘(i) In applying section 410(b)(6)(C), 

5 the closing of the class of participants shall 

6 not be treated as a significant change in 

7 coverage under section 410(b)(6)(C)(i)(II). 

8 ‘‘(ii) Two or more plans shall not fail 

9 to be eligible to be aggregated and treated 

10 as a single plan solely by reason of having 

11 different plan years. 

12 ‘‘(iii) Changes in the employee popu13 lation shall be disregarded to the extent at14 tributable to individuals who become em15 ployees or cease to be employees, after the 

16 date the class is closed, by reason of a 

17 merger, acquisition, divestiture, or similar 

18 event. 

19 ‘‘(iv) Aggregation and all other testing 

20 methodologies otherwise applicable under 

21 subsection (a)(4) and section 410(b) may 

22 be taken into account. 

23 The rule of clause (ii) shall also apply for pur24 poses of determining whether plans to which 

25 subparagraph (B)(i) applies may be aggregated 


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1 and treated as 1 plan for purposes of deter2 mining whether such plans meet the require3 ments of subsection (a)(4) and section 410(b). 

4 ‘‘(J) SPUN-OFF PLANS.—For purposes of 

5 this paragraph, if a portion of a defined benefit 

6 plan described in subparagraph (A) or (B)(iii) 

7 is spun off to another employer and the spun8 off plan continues to satisfy the requirements 

9 of— 

10 ‘‘(i) subparagraph (A)(i) or 

11 (B)(iii)(II), whichever is applicable, if the 

12 original plan was still within the 3-year pe13 riod described in such subparagraph at the 

14 time of the spin off, and 

15 ‘‘(ii) subparagraph (A)(ii) or 

16 (B)(iii)(III), whichever is applicable, 

17 the treatment under subparagraph (A) or (B) 

18 of the spun-off plan shall continue with respect 

19 to such other employer. 

20 ‘‘(2) TESTING OF DEFINED CONTRIBUTION

21 PLANS.— 

22 ‘‘(A) TESTING ON A BENEFITS BASIS.—A 

23 defined contribution plan shall be permitted to 

24 be tested on a benefits basis if— 


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1 ‘‘(i) such defined contribution plan 

2 provides make-whole contributions to a 

3 closed class of participants whose accruals 

4 under a defined benefit plan have been re5 duced or eliminated, 

6 ‘‘(ii) for the plan year of the defined 

7 contribution plan as of which the class eli8 gible to receive such make-whole contribu9 tions closes and the 2 succeeding plan 

10 years, such closed class of participants sat11 isfies the requirements of section 

12 410(b)(2)(A)(i) (determined by applying 

13 the rules of paragraph (1)(I)), 

14 ‘‘(iii) after the date as of which the 

15 class was closed, any plan amendment to 

16 the defined contribution plan which modi17 fies the closed class or the allocations, ben18 efits, rights, and features provided to such 

19 closed class does not discriminate signifi20 cantly in favor of highly compensated em21 ployees, and 

22 ‘‘(iv) the class was closed before Sep23 tember 21, 2016, or the defined benefit 

24 plan under clause (i) is described in paraVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 graph (1)(C) (as applied for purposes of 

2 paragraph (1)(B)(iii)(IV)). 

3 ‘‘(B) AGGREGATION WITH PLANS INCLUD4 ING MATCHING CONTRIBUTIONS.— 

5 ‘‘(i) IN GENERAL.—With respect to 

6 one or more defined contribution plans de7 scribed in subparagraph (A), for purposes 

8 of determining compliance with subsection 

9 (a)(4) and section 410(b), the portion of 

10 such plans which provides make-whole con11 tributions or other nonelective contribu12 tions may be aggregated and tested on a 

13 benefits basis with the portion of one or 

14 more other defined contribution plans 

15 which— 

16 ‘‘(I) provides matching contribu17 tions (as defined in subsection 

18 (m)(4)(A)), 

19 ‘‘(II) provides annuity contracts 

20 described in section 403(b) which are 

21 purchased with matching contribu22 tions or nonelective contributions, or 

23 ‘‘(III) consists of an employee 

24 stock ownership plan (within the 

25 meaning of section 4975(e)(7)) or a 


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1 tax credit employee stock ownership 

2 plan (within the meaning of section 

3 409(a)). 

4 ‘‘(ii) SPECIAL RULES FOR MATCHING

5 CONTRIBUTIONS.—Rules similar to the 

6 rules of paragraph (1)(B)(ii) shall apply 

7 for purposes of clause (i). 

8 ‘‘(C) SPECIAL RULES FOR TESTING DE9 FINED CONTRIBUTION PLAN FEATURES PRO10 VIDING MATCHING CONTRIBUTIONS TO CERTAIN

11 OLDER, LONGER SERVICE PARTICIPANTS.—In 

12 the case of a defined contribution plan which 

13 provides benefits, rights, or features to a closed 

14 class of participants whose accruals under a de15 fined benefit plan have been reduced or elimi16 nated, the plan shall not fail to satisfy the re17 quirements of subsection (a)(4) solely by reason 

18 of the composition of the closed class or the 

19 benefits, rights, or features provided to such 

20 closed class if the defined contribution plan and 

21 defined benefit plan otherwise meet the require22 ments of subparagraph (A) but for the fact that 

23 the make-whole contributions under the defined 

24 contribution plan are made in whole or in part 

25 through matching contributions. 


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1 ‘‘(D) SPUN-OFF PLANS.—For purposes of 

2 this paragraph, if a portion of a defined con3 tribution plan described in subparagraph (A) or 

4 (C) is spun off to another employer, the treat5 ment under subparagraph (A) or (C) of the 

6 spun-off plan shall continue with respect to the 

7 other employer if such plan continues to comply 

8 with the requirements of clauses (ii) (if the 

9 original plan was still within the 3-year period 

10 described in such clause at the time of the spin 

11 off) and (iii) of subparagraph (A), as deter12 mined for purposes of subparagraph (A) or (C), 

13 whichever is applicable. 

14 ‘‘(3) DEFINITIONS.—For purposes of this sub15 section— 

16 ‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex17 cept as otherwise provided in paragraph (2)(C), 

18 the term ‘make-whole contributions’ means non19 elective allocations for each employee in the 

20 class which are reasonably calculated, in a con21 sistent manner, to replace some or all of the re22 tirement benefits which the employee would 

23 have received under the defined benefit plan 

24 and any other plan or qualified cash or deferred 

25 arrangement under subsection (k)(2) if no 


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1 change had been made to such defined benefit 

2 plan and such other plan or arrangement. For 

3 purposes of the preceding sentence, consistency 

4 shall not be required with respect to employees 

5 who were subject to different benefit formulas 

6 under the defined benefit plan. 

7 ‘‘(B) REFERENCES TO CLOSED CLASS OF

8 PARTICIPANTS.—References to a closed class of 

9 participants and similar references to a closed 

10 class shall include arrangements under which 

11 one or more classes of participants are closed, 

12 except that one or more classes of participants 

13 closed on different dates shall not be aggre14 gated for purposes of determining the date any 

15 such class was closed. 

16 ‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 

17 The term ‘highly compensated employee’ has 

18 the meaning given such term in section 

19 414(q).’’. 

20 (b) PARTICIPATION REQUIREMENTS.—Paragraph 

21 (26) of section 401(a) of the Internal Revenue Code of 

22 1986 is amended by adding at the end the following new 

23 subparagraph: 

24 ‘‘(I) PROTECTED PARTICIPANTS.— 


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1 ‘‘(i) IN GENERAL.—A plan shall be 

2 deemed to satisfy the requirements of sub3 paragraph (A) if— 

4 ‘‘(I) the plan is amended— 

5 ‘‘(aa) to cease all benefit ac6 cruals, or 

7 ‘‘(bb) to provide future ben8 efit accruals only to a closed 

9 class of participants, 

10 ‘‘(II) the plan satisfies subpara11 graph (A) (without regard to this sub12 paragraph) as of the effective date of 

13 the amendment, and 

14 ‘‘(III) the amendment was adopt15 ed before September 21, 2016, or the 

16 plan is described in clause (ii). 

17 ‘‘(ii) PLANS DESCRIBED.—A plan is 

18 described in this clause if the plan would 

19 be described in subsection (o)(1)(C), as ap20 plied for purposes of subsection 

21 (o)(1)(B)(iii)(IV) and by treating the effec22 tive date of the amendment as the date the 

23 class was closed for purposes of subsection 

24 (o)(1)(C). 


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1 ‘‘(iii) SPECIAL RULES.—For purposes 

2 of clause (i)(II), in applying section 

3 410(b)(6)(C), the amendments described in 

4 clause (i) shall not be treated as a signifi5 cant change in coverage under section 

6 410(b)(6)(C)(i)(II). 

7 ‘‘(iv) SPUN-OFF PLANS.—For pur8 poses of this subparagraph, if a portion of 

9 a plan described in clause (i) is spun off to 

10 another employer, the treatment under 

11 clause (i) of the spun-off plan shall con12 tinue with respect to the other employer.’’. 

13 (c) EFFECTIVE DATE.— 

14 (1) IN GENERAL.—Except as provided in para15 graph (2), the amendments made by this section 

16 shall take effect on the date of the enactment of this 

17 Act, without regard to whether any plan modifica18 tions referred to in such amendments are adopted or 

19 effective before, on, or after such date of enactment. 

20 (2) SPECIAL RULES.— 

21 (A) ELECTION OF EARLIER APPLICA22 TION.—At the election of the plan sponsor, the 

23 amendments made by this section shall apply to 

24 plan years beginning after December 31, 2013. 


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1 (B) CLOSED CLASSES OF PARTICIPANTS.— 

2 For purposes of paragraphs (1)(A)(iii), 

3 (1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 

4 of the Internal Revenue Code of 1986 (as added 

5 by this section), a closed class of participants 

6 shall be treated as being closed before Sep7 tember 21, 2016, if the plan sponsor’s intention 

8 to create such closed class is reflected in formal 

9 written documents and communicated to par10 ticipants before such date. 

11 (C) CERTAIN POST-ENACTMENT PLAN

12 AMENDMENTS.—A plan shall not be treated as 

13 failing to be eligible for the application of sec14 tion 401(o)(1)(A), 401(o)(1)(B)(iii), or 

15 401(a)(26) of such Code (as added by this sec16 tion) to such plan solely because in the case 

17 of— 

18 (i) such section 401(o)(1)(A), the plan 

19 was amended before the date of the enact20 ment of this Act to eliminate one or more 

21 benefits, rights, or features, and is further 

22 amended after such date of enactment to 

23 provide such previously eliminated benefits, 

24 rights, or features to a closed class of par25 ticipants, or 


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1 (ii) such section 401(o)(1)(B)(iii) or 

2 section 401(a)(26), the plan was amended 

3 before the date of the enactment of this 

4 Act to cease all benefit accruals, and is 

5 further amended after such date of enact6 ment to provide benefit accruals to a closed 

7 class of participants. 

8 Any such section shall only apply if the plan 

9 otherwise meets the requirements of such sec10 tion and in applying such section, the date the 

11 class of participants is closed shall be the effec12 tive date of the later amendment. 

13 SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC 

14 PLANS. 

15 (a) FLAT RATE PREMIUM.—Subparagraph (A) of 

16 section 4006(a)(3) of the Employee Retirement Income 

17 Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amend18 ed— 

19 (1) in clause (i), by striking ‘‘plan,’’ and insert20 ing ‘‘plan other than a CSEC plan (as defined in 

21 section 210(f)(1))’’; 

22 (2) in clause (v), by striking ‘‘or’’ at the end; 

23 (3) in clause (vi), by striking the period at the 

24 end and inserting ‘‘, or’’; and 


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1 (4) by adding at the end the following new 

2 clause: 

3 ‘‘(vii) in the case of a CSEC plan (as 

4 defined in section 210(f)(1)), for plan 

5 years beginning after December 31, 2018, 

6 for each individual who is a participant in 

7 such plan during the plan year an amount 

8 equal to the sum of— 

9 ‘‘(I) the additional premium (if 

10 any) determined under subparagraph 

11 (E), and 

12 ‘‘(II) $19.’’. 

13 (b) VARIABLE RATE PREMIUM.— 

14 (1) UNFUNDED VESTED BENEFITS.— 

15 (A) IN GENERAL.—Subparagraph (E) of 

16 section 4006(a)(3) of the Employee Retirement 

17 Income Security Act of 1974 (29 U.S.C. 

18 1306(a)(3)) is amended by adding at the end 

19 the following new clause: 

20 ‘‘(v) For purposes of clause (ii), in the 

21 case of a CSEC plan (as defined in section 

22 210(f)(1)), the term ‘unfunded vested ben23 efits’ means, for plan years beginning after 

24 December 31, 2018, the excess (if any) 

25 of— 


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1 ‘‘(I) the funding liability of the 

2 plan as determined under section 

3 306(j)(5)(C) for the plan year by only 

4 taking into account vested benefits, 

5 over 

6 ‘‘(II) the fair market value of 

7 plan assets for the plan year which 

8 are held by the plan on the valuation 

9 date.’’. 

10 (B) CONFORMING AMENDMENT.—Clause 

11 (iii) of section 4006(a)(3)(E) of such Act (29 

12 U.S.C. 1306(a)(3)(E)) is amended by striking 

13 ‘‘For purposes’’ and inserting ‘‘Except as pro14 vided in clause (v), for purposes’’. 

15 (2) APPLICABLE DOLLAR AMOUNT.— 

16 (A) IN GENERAL.—Paragraph (8) of sec17 tion 4006(a) of such Act (29 U.S.C. 1306(a)) 

18 is amended by adding at the end the following 

19 new subparagraph: 

20 ‘‘(E) CSEC PLANS.—In the case of a 

21 CSEC plan (as defined in section 210(f)(1)), 

22 the applicable dollar amount shall be $9.’’. 

23 (B) CONFORMING AMENDMENT.—Subpara24 graph (A) of section 4006(a)(8) of such Act (29 


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1 U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 

2 and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 

3 TITLE III—BENEFITS RELATING 

4 TO UNITED STATES TAX COURT 

5 SEC. 301. THRIFT SAVINGS PLAN CONTRIBUTIONS FOR 

6 JUDGES IN THE FEDERAL EMPLOYEES RE7 TIREMENT SYSTEM. 

8 (a) IN GENERAL.—Subsection (j)(3)(B) of section 

9 7447 of the Internal Revenue Code of 1986 is amended 

10 to read as follows: 

11 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

12 JUDGE.—No contributions under section 

13 8432(c) of title 5, United States Code, shall be 

14 made for the benefit of a judge who has filed 

15 an election to receive retired pay under sub16 section (e).’’. 

17 (b) OFFSET.—Paragraph (3) of section 7447(j) of 

18 the Internal Revenue Code of 1986 is amended by adding 

19 at the end the following new subparagraph: 

20 ‘‘(F) OFFSET.—In the case of a judge who 

21 receives a distribution from the Thrift Savings 

22 Plan and who later receives retired pay under 

23 subsection (d), the retired pay shall be offset by 

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1 tribution to the individual’s Thrift Savings Ac2 count during years of service as a full-time judi3 cial officer under the Federal Employees Retire4 ment System, without regard to earnings attrib5 utable to such amount. Where such an offset 

6 would exceed 50 percent of the retired pay to 

7 be received in the first year, the offset may be 

8 divided equally over the first 2 years in which 

9 the individual receives the annuity.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to basic pay earned while serving 

12 as a judge of the United States Tax Court on or after 

13 the date of the enactment of this Act. 

14 SEC. 302. CHANGE IN VESTING PERIOD FOR SURVIVOR AN15 NUITIES AND WAIVER OF VESTING PERIOD IN 

16 THE EVENT OF ASSASSINATION. 

17 (a) ELIGIBILITY IN CASE OF DEATH BY ASSASSINA18 TION.—Subsection (h) of section 7448 of the Internal Rev19 enue Code of 1986 is amended to read as follows: 

20 ‘‘(h) ENTITLEMENT TO ANNUITY.— 

21 ‘‘(1) IN GENERAL.— 

22 ‘‘(A) ANNUITY TO SURVIVING SPOUSE.—If 

23 a judge or magistrate judge of the Tax Court 

24 described in paragraph (2) is survived by a sur25 viving spouse but not by a dependent child, 


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1 there shall be paid to such surviving spouse an 

2 annuity beginning with the day of the death of 

3 the judge or magistrate judge of the Tax Court 

4 or following the surviving spouse’s attainment 

5 of age 50, whichever is the later, in an amount 

6 computed as provided in subsection (m). 

7 ‘‘(B) ANNUITY TO SURVIVING SPOUSE AND

8 CHILD.—If a judge or magistrate judge of the 

9 Tax Court described in paragraph (2) is sur10 vived by a surviving spouse and dependent child 

11 or children, there shall be paid to such sur12 viving spouse an annuity, beginning on the day 

13 of the death of the judge or magistrate judge 

14 of the Tax Court, in an amount computed as 

15 provided in subsection (m), and there shall also 

16 be paid to or on behalf of each such child an 

17 immediate annuity equal to the lesser of— 

18 ‘‘(i) 10 percent of the average annual 

19 salary of such judge or magistrate judge of 

20 the Tax Court (determined in accordance 

21 with subsection (m)), or 

22 ‘‘(ii) 20 percent of such average an23 nual salary, divided by the number of such 

24 children. 


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1 ‘‘(C) ANNUITY TO SURVIVING DEPENDENT

2 CHILDREN.—If a judge or magistrate judge of 

3 the Tax Court described in paragraph (2) 

4 leaves no surviving spouse but leaves a sur5 viving dependent child or children, there shall 

6 be paid to or on behalf of each such child an 

7 immediate annuity equal to the lesser of— 

8 ‘‘(i) 20 percent of the average annual 

9 salary of such judge or magistrate judge of 

10 the Tax Court (determined in accordance 

11 with subsection (m)), or 

12 ‘‘(ii) 40 percent of such average an13 nual salary divided by the number of such 

14 children. 

15 ‘‘(2) COVERED JUDGES.—Paragraph (1) applies 

16 to any judge or magistrate judge of the Tax Court 

17 electing under subsection (b)— 

18 ‘‘(A) who dies while a judge or magistrate 

19 judge of the Tax Court after having rendered at 

20 least 18 months of civilian service computed as 

21 prescribed in subsection (n), for the last 18 

22 months of which the salary deductions provided 

23 for by subsection (c)(1) or the deposits required 

24 by subsection (d) have actually been made or 


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1 the salary deductions required by the civil serv2 ice retirement laws have actually been made, or 

3 ‘‘(B) who dies by assassination after hav4 ing rendered less than 18 months of civilian 

5 service computed as prescribed in subsection (n) 

6 if, for the period of such service, the salary de7 ductions provided for by subsection (c)(1) or 

8 the deposits required by subsection (d) have ac9 tually been made. 

10 ‘‘(3) TERMINATION OF ANNUITY.— 

11 ‘‘(A) SURVIVING SPOUSE.—The annuity 

12 payable to a surviving spouse under this sub13 section shall be terminable upon such surviving 

14 spouse’s death or such surviving spouse’s re15 marriage before attaining age 55. 

16 ‘‘(B) SURVIVING CHILD.—Any annuity 

17 payable to a child under this subsection shall be 

18 terminable upon the earliest of— 

19 ‘‘(i) the child attainment of age 18, 

20 ‘‘(ii) the child’s marriage, or 

21 ‘‘(iii) the child’s death, 

22 except that if such child is incapable of self-sup23 port by reason of mental or physical disability 

24 the child’s annuity shall be terminable only 


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1 upon death, marriage, or recovery from such 

2 disability. 

3 ‘‘(C) DEPENDENT CHILD AFTER DEATH

4 OF SURVIVING SPOUSE.—In case of the death of 

5 a surviving spouse of a judge or magistrate 

6 judge of the Tax Court leaving a dependent 

7 child or children of the judge or magistrate 

8 judge of the Tax Court surviving such spouse, 

9 the annuity of such child or children shall be 

10 recomputed and paid as provided in paragraph 

11 (1)(C). 

12 ‘‘(D) RECOMPUTATION WITH RESPECT TO

13 OTHER DEPENDENT CHILDREN.—In any case 

14 in which the annuity of a dependent child is 

15 terminated under this subsection, the annuities 

16 of any remaining dependent child or children 

17 based upon the service of the same judge or 

18 magistrate judge of the Tax Court shall be re19 computed and paid as though the child whose 

20 annuity was so terminated had not survived 

21 such judge. 

22 ‘‘(E) SPECIAL RULE FOR ASSASSINATED

23 JUDGES.—In the case of a survivor of a judge 

24 or magistrate judge of the Tax Court described 

25 in paragraph (2)(B), there shall be deducted 


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1 from the annuities otherwise payable under this 

2 section an amount equal to the amount of sal3 ary deductions that would have been made if 

4 such deductions had been made for 18 months 

5 prior to the death of the judge or magistrate 

6 judge of the Tax Court.’’. 

7 (b) DEFINITION OF ASSASSINATION.—Section 

8 7448(a) of the Internal Revenue Code of 1986 is amended 

9 by adding at the end the following new paragraph: 

10 ‘‘(10) The terms ‘assassinated’ and ‘assassina11 tion’ mean the killing of a judge or magistrate judge 

12 of the Tax Court that is motivated by the perform13 ance by the judge or magistrate judge of the Tax 

14 Court of his or her official duties.’’. 

15 (c) DETERMINATION OF ASSASSINATION.—Sub16 section (i) of section 7448 of the Internal Revenue Code 

17 of 1986 is amended— 

18 (1) by striking ‘‘OF DEPENDENCY AND DIS19 ABILITY.—Questions’’ and inserting ‘‘BY CHIEF

20 JUDGE.— 

21 ‘‘(1) DEPENDENCY AND DISABILITY.—Ques22 tions’’, and 

23 (2) by adding at the end the following new 

24 paragraph: 


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1 ‘‘(2) ASSASSINATION.—The chief judge shall 

2 determine whether the killing of a judge or mag3 istrate judge of the Tax Court was an assassination, 

4 subject to review only by the Tax Court. The head 

5 of any Federal agency that investigates the killing of 

6 a judge or magistrate judge of the Tax Court shall 

7 provide to the chief judge any information that 

8 would assist the chief judge in making such a deter9 mination.’’. 

10 (d) COMPUTATION OF ANNUITIES.—Subsection (m) 

11 of section 7448 of the Internal Revenue Code of 1986 is 

12 amended— 

13 (1) by striking ‘‘ANNUITIES.—The annuity’’ 

14 and inserting ‘‘ANNUITIES.— 

15 ‘‘(1) IN GENERAL.—The annuity’’, 

16 (2) by striking ‘‘the sum of (1) 1.5 percent’’ 

17 and inserting ‘‘the sum of— 

18 ‘‘(A) 1.5 percent’’, 

19 (3) by striking ‘‘and (2) three-fourths of 1 per20 cent’’ and inserting ‘‘and 

21 ‘‘(B) three-fourths of 1 percent’’, 

22 (4) by striking ‘‘prior allowable service, except 

23 that’’ and inserting ‘‘prior allowable service, 

24 ‘‘except that’’, and 


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1 (5) by adding at the end the following new 

2 paragraph: 

3 ‘‘(2) ASSASSINATED JUDGES AND MAGISTRATE

4 JUDGES OF THE TAX COURT.—In the case of a 

5 judge or magistrate judge of the Tax Court who is 

6 assassinated and who has served less than 18 

7 months, the annuity of the surviving spouse of such 

8 judge or magistrate judge of the Tax Court shall be 

9 based upon the average annual salary received by 

10 such judge or magistrate judge of the Tax Court for 

11 judicial service.’’. 

12 (e) OTHER BENEFITS.—Section 7448 of the Internal 

13 Revenue Code of 1986 is amended by adding at the end 

14 the following new subsection: 

15 ‘‘(u) OTHER BENEFITS IN CASE OF ASSASSINA16 TION.—In the case of a judge or magistrate judge of the 

17 Tax Court who is assassinated, an annuity shall be paid 

18 under this section notwithstanding a survivor’s eligibility 

19 for or receipt of benefits under chapter 81 of title 5, 

20 United States Code, except that the annuity for which a 

21 surviving spouse is eligible under this section shall be re22 duced to the extent that the total benefits paid under this 

23 section and chapter 81 of that title for any year would 

24 exceed the current salary for that year of the office of the 

25 judge or magistrate judge of the Tax Court.’’. 


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1 SEC. 303. COORDINATION OF RETIREMENT AND SURVIVOR 

2 ANNUITY WITH THE FEDERAL EMPLOYEES 

3 RETIREMENT SYSTEM. 

4 (a) RETIREMENT.—Section 7447 of the Internal Rev5 enue Code of 1986 is amended— 

6 (1) by striking ‘‘section 8331(8)’’ in subsection 

7 (g)(2)(C) and inserting ‘‘sections 8331(8) and 

8 8401(19)’’, and 

9 (2) by striking ‘‘Civil Service Commission’’ both 

10 places it appears in subsection (i)(2) and inserting 

11 ‘‘Office of Personnel Management’’. 

12 (b) ANNUITIES TO SURVIVING SPOUSES AND DE13 PENDENT CHILDREN.—Section 7448 of the Internal Rev14 enue Code of 1986 is amended— 

15 (1) by striking ‘‘section 8332’’ in subsection (d) 

16 and inserting ‘‘sections 8332 and 8411’’, and 

17 (2) by striking ‘‘section 8332’’ in subsection (n) 

18 and inserting ‘‘sections 8332 and 8411’’. 

19 SEC. 304. LIMIT ON TEACHING COMPENSATION OF RE20 TIRED JUDGES. 

21 (a) IN GENERAL.—Section 7447 of the Internal Rev22 enue Code of 1986 is amended by adding at the end the 

23 following new subsection: 

24 ‘‘(k) TEACHING COMPENSATION OF RETIRED

25 JUDGES.—For purposes of the limitation under section 

26 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 


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1 App.), any compensation for teaching approved under sec2 tion 502(a)(5) of such Act shall not be treated as outside 

3 earned income when received by a judge of the United 

4 States Tax Court who has retired under subsection (b) 

5 for teaching performed during any calendar year for which 

6 such a judge has met the requirements of subsection (c), 

7 as certified by the chief judge.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to any individual serving as a re10 tired judge of the United States Tax Court on or after 

11 the date of the enactment of this Act. 

12 SEC. 305. GENERAL PROVISIONS RELATING TO MAG13 ISTRATE JUDGES OF THE TAX COURT. 

14 (a) TITLE OF SPECIAL TRIAL JUDGE CHANGED TO

15 MAGISTRATE JUDGE OF THE TAX COURT.—The heading 

16 of section 7443A of the Internal Revenue Code of 1986 

17 is amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 

18 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

19 COURT’’. 

20 (b) APPOINTMENT, TENURE, AND REMOVAL.—Sub21 section (a) of section 7443A of the Internal Revenue Code 

22 of 1986 is amended to read as follows: 

23 ‘‘(a) APPOINTMENT, TENURE, AND REMOVAL.— 

24 ‘‘(1) APPOINTMENT.—The chief judge may, 

25 from time to time, appoint and reappoint magistrate 


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1 judges of the Tax Court for a term of 8 years. The 

2 magistrate judges of the Tax Court shall proceed 

3 under such rules as may be promulgated by the Tax 

4 Court. 

5 ‘‘(2) REMOVAL.— 

6 ‘‘(A) IN GENERAL.—Except as provided in 

7 subparagraph (B), removal of a magistrate 

8 judge of the Tax Court during the term for 

9 which such magistrate judge is appointed shall 

10 be only for incompetency, misconduct, neglect 

11 of duty, or physical or mental disability. Re12 moval shall not occur unless a majority of all 

13 the judges of the Tax Court concur in the order 

14 of removal. Before any order of removal shall 

15 be entered, a full specification of the charges 

16 shall be furnished to the magistrate judge of 

17 the Tax Court, and such magistrate judge shall 

18 be accorded by the judges of the Tax Court an 

19 opportunity to be heard on the charges. 

20 ‘‘(B) TERMINATION OF OFFICE.—The of21 fice of a magistrate judge of the Tax Court 

22 shall be terminated if the judges of the Tax 

23 Court determine that the services performed by 

24 such magistrate judge of the Tax Court are no 

25 longer needed.’’. 


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1 (c) SALARY.—Subsection (d) of section 7443A of the 

2 Internal Revenue Code of 1986 is amended to read as fol3 lows: 

4 ‘‘(d) SALARY.—Each magistrate judge of the Tax 

5 Court shall receive salary— 

6 ‘‘(1) at a rate equal to 92 percent of the rate 

7 for judges of the Tax Court, and 

8 ‘‘(2) in the same installments as such judges.’’. 

9 (d) EXEMPTION FROM FEDERAL LEAVE PROVI10 SIONS.—Section 7443A of the Internal Revenue Code of 

11 1986 is amended by adding at the end the following new 

12 subsection: 

13 ‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI14 SIONS.— 

15 ‘‘(1) IN GENERAL.—A magistrate judge of the 

16 Tax Court shall be exempt from the provisions of 

17 subchapter I of chapter 63 of title 5, United States 

18 Code. 

19 ‘‘(2) TREATMENT OF UNUSED LEAVE.— 

20 ‘‘(A) AFTER SERVICE AS MAGISTRATE

21 JUDGE OF THE TAX COURT.—If an individual 

22 who is exempted under paragraph (1) from the 

23 subchapter referred to in such paragraph was 

24 previously subject to such subchapter and, with25 out a break in service, again becomes subject to 


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1 such subchapter on completion of the individ2 ual’s service as a magistrate judge of the Tax 

3 Court, the unused annual leave and sick leave 

4 standing to the individual’s credit at the time 

5 such individual became a magistrate judge of 

6 the Tax Court is deemed to have remained to 

7 the individual’s credit. 

8 ‘‘(B) COMPUTATION OF ANNUITY.—In 

9 computing an annuity under section 8339 or 

10 8415 of title 5, United States Code, the total 

11 service of an individual specified in subpara12 graph (A) who retires on an immediate annuity 

13 or dies leaving a survivor or survivors entitled 

14 to an annuity includes, without regard to the 

15 limitations imposed by subsection (f) of section 

16 8339 of such title 5, the days of unused sick 

17 leave standing to the individual’s credit at the 

18 time such individual became a magistrate judge 

19 of the Tax Court, except that such days will not 

20 be counted in determining average pay or annu21 ity eligibility. 

22 ‘‘(C) LUMP SUM PAYMENT.—Any accumu23 lated and current accrued annual leave or vaca24 tion balances credited to a magistrate judge of 

25 the Tax Court as of the date of the enactment 


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1 of this subsection shall be paid in a lump sum 

2 at the time of separation from service pursuant 

3 to the provisions and restrictions set forth in 

4 section 5551 of such title 5 and related provi5 sions referred to in such section.’’. 

6 (e) CONTEMPT AUTHORITY.—Section 7443A of the 

7 Internal Revenue Code of 1986, as amended by this sec8 tion, is amended by adding at the end the following new 

9 subsection: 

10 ‘‘(g) INCIDENTAL POWERS.—A magistrate judge of 

11 the Tax Court appointed under this section shall have the 

12 power to punish for contempt of the authority of the Tax 

13 Court as provided in section 7456(c), except the sentence 

14 imposed by such a magistrate judge of the Tax Court for 

15 any contempt shall not exceed the penalties for a Class 

16 C misdemeanor as set forth in sections 3571(b)(6) and 

17 3581(b)(8) of title 18, United States Code. This sub18 section shall not be construed to limit the authority of a 

19 magistrate judge of the Tax Court to order sanctions 

20 under any other statute or any rule of the Tax Court pre21 scribed pursuant to section 7453.’’. 

22 (f) CONFORMING AMENDMENTS.— 

23 (1) The heading of subsection (b) of section 

24 7443A of the Internal Revenue Code of 1986 is 

25 amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 


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1 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

2 COURT’’. 

3 (2) Subsection (b) of section 7443A of such 

4 Code is amended by striking ‘‘special trial judges of 

5 the court’’ and inserting ‘‘magistrate judges of the 

6 Tax Court’’. 

7 (3) Subsection (c) of section 7443A of such 

8 Code is amended by striking ‘‘special trial judge’’ 

9 and inserting ‘‘magistrate judge of the Tax Court’’. 

10 (4) Subsection (e) of section 7443A of such 

11 Code is amended by striking ‘‘special trial judges’’ 

12 and inserting ‘‘magistrate judges of the Tax Court’’. 

13 (5) The item relating to section 7443A in the 

14 table of sections for part I of subchapter C of chap15 ter 76 of such Code is amended to read as follows: 

‘‘Sec. 7443A. Magistrate judges of the Tax Court.’’. 

16 (6) The heading of section 7448 of such Code 

17 is amended by striking ‘‘SPECIAL TRIAL

18 JUDGES’’and inserting ‘‘MAGISTRATE JUDGES

19 OF THE TAX COURT’’. 

20 (7) Section 7448 of such Code is amended— 

21 (A) by striking ‘‘special trial judge’s’’ each 

22 place it appears in subsections (a)(6), (c)(1), 

23 (d), and (m)(1) and inserting ‘‘magistrate judge 

24 of the Tax Court’s’’, and 


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1 (B) by striking ‘‘special trial judge’’ each 

2 place it appears other than in subsection (n) 

3 and inserting ‘‘magistrate judge of the Tax 

4 Court’’. 

5 (8) Subsection (n) of section 7448 of such Code 

6 is amended to read as follows: 

7 ‘‘(n) INCLUDIBLE SERVICE.—Subject to the provi8 sions of subsection (d), the years of service of a judge or 

9 magistrate judge of the Tax Court which are allowable as 

10 the basis for calculating the amount of the annuity of such 

11 judge or magistrate judge’s surviving spouse shall include 

12 the judge or magistrate judge’s years of service— 

13 ‘‘(1) as a judge or magistrate judge of the Tax 

14 Court, a special trial judge of the Tax Court, or a 

15 judge of the Tax Court of the United States, 

16 ‘‘(2) pursuant to any appointment under sec17 tion 7443A, 

18 ‘‘(3) as a Senator, Representative, Delegate, or 

19 Resident Commissioner in Congress, 

20 ‘‘(4) as a member of the Armed Forces of the 

21 United States (not including any service for which 

22 credit is allowed for purposes of retirement or re23 tired pay under any other provision of law), and 

24 ‘‘(5) in any other civilian service within the pur25 view of section 8332 of title 5, United States Code. 


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1 For purposes of paragraph (4), not more than 5 years of 

2 service shall be taken into account.’’. 

3 (9) The item relating to section 7448 in the 

4 table of sections for part I of subchapter C of chap5 ter 76 of such Code is amended to read as follows: 

‘‘Sec. 7448. Annuities to surviving spouses and dependent children of judges 

and magistrate judges of the Tax Court.’’. 

6 (10) Subsection (a) of section 7456 of such 

7 Code is amended— 

8 (A) by striking ‘‘special trial judge’’ each 

9 place it appears and inserting ‘‘magistrate 

10 judge’’, and 

11 (B) by striking ‘‘(or by the clerk’’ and in12 serting ‘‘of the Tax Court (or by the clerk’’. 

13 (11) Subsection (a) of section 7466 of such 

14 Code is amended by striking ‘‘special trial judge’’ 

15 and inserting ‘‘magistrate judge’’. 

16 (12) Section 7470A of such Code is amended 

17 by striking ‘‘special trial judges’’ both places it ap18 pears in subsections (a) and (b) and inserting ‘‘mag19 istrate judges’’. 

20 (13) Subparagraph (A) of section 7471(a)(2) of 

21 such Code is amended by striking ‘‘special trial 

22 judges’’ and inserting ‘‘magistrate judges’’. 

23 (14) Subsection (c) of section 7471 of such 

24 Code is amended— 


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1 (A) by striking ‘‘SPECIAL TRIAL JUDGES’’ 

2 in the heading and inserting ‘‘MAGISTRATE

3 JUDGES OF THE TAX COURT’’, and 

4 (B) by striking ‘‘special trial judges’’ and 

5 inserting ‘‘magistrate judges’’. 

6 (g) EFFECTIVE DATE.— 

7 (1) IN GENERAL.—The amendments made by 

8 this section shall apply to individuals serving as spe9 cial trial judges of the United States Tax Court on 

10 or after the day before the date of enactment of this 

11 Act. 

12 (2) APPOINTMENT SAVINGS PROVISION.—Any 

13 individual serving as a special trial judge of the 

14 United States Tax Court as of the day before the 

15 date of the enactment of this Act shall be considered 

16 to have been appointed as a magistrate judge of the 

17 Tax Court under section 7443A of the Internal Rev18 enue Code of 1986 on such date of enactment, and 

19 service as a special trial judge of the Tax Court be20 fore such date of enactment shall be considered to 

21 be service as a magistrate judge of the Tax Court 

22 for purposes of any provision of law relating to 

23 length of service. 


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1 SEC. 306. LIFE INSURANCE FOR MAGISTRATE JUDGES OF 

2 THE TAX COURT AGE 65 OR OLDER. 

3 Section 7472 of the Internal Revenue Code of 1986 

4 is amended by striking ‘‘its judges’’ in the second sentence 

5 and inserting ‘‘the judges and magistrate judges of the 

6 Tax Court’’. 

7 SEC. 307. RETIREMENT AND ANNUITY PROGRAM. 

8 (a) RETIREMENT AND ANNUITY PROGRAM.—Part I 

9 of subchapter C of chapter 76 of the Internal Revenue 

10 Code of 1986 is amended by inserting after section 7443A 

11 the following new section: 

12 ‘‘SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF 

13 THE TAX COURT. 

14 ‘‘(a) RETIREMENT.— 

15 ‘‘(1) IN GENERAL.—Each magistrate judge of 

16 the Tax Court who makes an election under this sec17 tion shall receive an annuity at the same rate and 

18 in the same manner as magistrate judges of the dis19 trict courts of the United States pursuant to section 

20 377 of title 28, United States Code. 

21 ‘‘(2) RULES OF APPLICATION.—For purposes of 

22 subsection (a), section 377 of title 28, United States 

23 Code, shall be applied with the following modifica24 tions: 

25 ‘‘(A) By substituting— 


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1 ‘‘(i) ‘magistrate judge of the Tax 

2 Court’ for ‘judicial official’, ‘judicial offi3 cer’, and ‘magistrate judge’ each place 

4 such terms appear, 

5 ‘‘(ii) ‘magistrate judge of the Tax 

6 Court’s’ for ‘magistrate judge’s’ each place 

7 it appears, 

8 ‘‘(iii) ‘chief judge of the Tax Court’ 

9 for ‘Administrative Office of the United 

10 States Courts’, ‘Director of the Adminis11 trative Office of the United States Courts’, 

12 ‘Director’, and ‘chief judge of the district 

13 court’ each place such terms appear, 

14 ‘‘(iv) ‘Tax Court Judicial Officers’ Re15 tirement Fund’ for ‘Judicial Officers’ Re16 tirement Fund’ each place it appears, 

17 ‘‘(v) ‘under section 7443A of the In18 ternal Revenue Code of 1986’ for ‘under 

19 section 631 of this title’ in subsection 

20 (h)(2), 

21 ‘‘(vi) ‘under section 7443C of the In22 ternal Revenue Code of 1986’ for ‘under 

23 section 155(b), 375, or 636(h) of this title’ 

24 each place it appears in paragraphs (2) 

25 and (3) of subsection (m), and 


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1 ‘‘(vii) ‘from the date of appointment, 

2 for those individuals appointed pursuant to 

3 section 7443A of the Internal Revenue 

4 Code of 1986 prior to, and in active service 

5 on, the date of enactment of the Retire6 ment Enhancement and Savings Act of 

7 2019’ for ‘on or after October 1, 1979’ in 

8 subsection (h). 

9 ‘‘(B) By disregarding subsection (m)(2) 

10 and subsection (o). 

11 ‘‘(b) 1-YEAR FORFEITURE FOR FAILURE TO PER12 FORM JUDICIAL DUTIES.—Subject to subparagraph (B) 

13 of section 377(m)(1) of title 28, United States Code, any 

14 magistrate judge of the Tax Court who retires under this 

15 section and who fails to perform judicial duties required 

16 of such individual by section 7443C shall forfeit all rights 

17 to an annuity under this section for a 1-year period which 

18 begins on the first day on which such individual fails to 

19 perform such duties. 

20 ‘‘(c) TAX COURT JUDICIAL OFFICERS’ RETIREMENT

21 FUND.— 

22 ‘‘(1) ESTABLISHMENT.—There is established in 

23 the Treasury of the United States a fund which 

24 shall be known as the ‘Tax Court Judicial Officers’ 

25 Retirement Fund’. The Fund is appropriated for the 


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1 payment of annuities, refunds, and other payments 

2 under this section. 

3 ‘‘(2) INVESTMENT OF FUND.—The Secretary 

4 shall invest, in interest-bearing securities of the 

5 United States, such currently available portions of 

6 the Tax Court Judicial Officers’ Retirement Fund as 

7 are not immediately required for payments from the 

8 Fund. The income derived from these investments 

9 constitutes a part of the Fund. 

10 ‘‘(3) UNFUNDED LIABILITY.— 

11 ‘‘(A) IN GENERAL.—Not later than the 

12 close of each fiscal year, there shall be depos13 ited in the Tax Court Judicial Officers’ Retire14 ment Fund amounts required to reduce to zero 

15 the unfunded liability, if any, of such Fund. 

16 ‘‘(B) UNFUNDED LIABILITY.—For pur17 poses of subparagraph (A), the term ‘unfunded 

18 liability’ means the amount estimated by the 

19 Secretary to be equal to the excess (as of the 

20 close of the fiscal year involved) of— 

21 ‘‘(i) the present value of all benefits 

22 payable from the Tax Court Judicial Offi23 cers’ Retirement Fund, over 

24 ‘‘(ii) the sum of— 


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1 ‘‘(I) the present value of future 

2 deductions to be withheld under this 

3 section from the basic pay of mag4 istrate judges of the Tax Court, plus 

5 ‘‘(II) the balance in such Fund 

6 as of the close of such fiscal year. 

7 ‘‘(d) PARTICIPATION IN THRIFT SAVINGS PLAN.— 

8 ‘‘(1) ELECTION TO CONTRIBUTE.—A mag9 istrate judge of the Tax Court may elect to con10 tribute out of such individual’s basic pay to the 

11 Thrift Savings Fund established by section 8437 of 

12 title 5, United States Code. 

13 ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.— 

14 Except as otherwise provided in this subsection, the 

15 provisions of subchapters III and VII of chapter 84 

16 of such title 5 shall apply with respect to a mag17 istrate judge of the Tax Court who makes an elec18 tion under paragraph (1). 

19 ‘‘(3) SPECIAL RULES.— 

20 ‘‘(A) AMOUNT CONTRIBUTED.—The 

21 amount contributed by a magistrate judge of 

22 the Tax Court to the Thrift Savings Plan in 

23 any pay period shall not exceed the maximum 

24 percentage of such magistrate judge’s basic pay 


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1 for such period as allowable under section 

2 8440f of such title 5. 

3 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

4 MAGISTRATE JUDGE OF THE TAX COURT.—No 

5 contributions under section 8432(c) of such 

6 title 5 shall be made for the benefit of a mag7 istrate judge of the Tax Court who has filed an 

8 election to receive an annuity under this sec9 tion. 

10 ‘‘(C) APPLICABILITY OF RULES RELATING

11 TO ANNUITY OF A CHILD.—Section 8433(b) of 

12 such title 5 applies with respect to a magistrate 

13 judge of the Tax Court who makes an election 

14 under paragraph (1) and who— 

15 ‘‘(i) retires entitled to an immediate 

16 annuity under this section (including a dis17 ability annuity under this section), 

18 ‘‘(ii) retires before attaining age 65 

19 but is entitled, upon attaining age 65, to 

20 an annuity under this section, or 

21 ‘‘(iii) retires before becoming entitled 

22 to an immediate annuity, or an annuity 

23 upon attaining age 65, under this section. 

24 ‘‘(D) RETIREMENT AS SEPARATION FROM

25 SERVICE.—With respect to a magistrate judge 


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1 of the Tax Court to whom this subsection ap2 plies, retirement under this section is a separa3 tion from service for purposes of subchapters 

4 III and VII of chapter 84 of such title 5. 

5 ‘‘(4) DEFINITIONS.—For purposes of this sub6 section, the terms ‘retirement’ and ‘retire’ include 

7 removal from office under section 7443A(a)(2) on 

8 the sole ground of mental or physical disability. 

9 ‘‘(5) OFFSET.—In the case of a magistrate 

10 judge of the Tax Court who receives a distribution 

11 from the Thrift Savings Plan and who later receives 

12 an annuity under this section, the annuity shall be 

13 offset by an amount equal to the amount which rep14 resents the Government’s contribution to the individ15 ual’s Thrift Savings Account during years of service 

16 as a full-time judicial officer under the Federal Em17 ployees Retirement System, without regard to earn18 ings attributable to such amount. Where such an 

19 offset would exceed 50 percent of the annuity to be 

20 received in the first year, the offset may be divided 

21 equally over the first 2 years in which the individual 

22 receives the annuity. 

23 ‘‘(6) EXCEPTION.—Notwithstanding clauses (i) 

24 and (ii) of paragraph (3)(C), if any magistrate judge 

25 of the Tax Court retires under circumstances makVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 ing such magistrate judge of the Tax Court eligible 

2 to make an election under subsection (b) of section 

3 8433 of such title 5, and the nonforfeitable account 

4 balance of such magistrate judge of the Tax Court 

5 is less than an amount which the Executive Director 

6 of the Office of Personnel Management prescribes by 

7 regulation, the Executive Director shall pay the non8 forfeitable account balance to the participant in a 

9 single payment. 

10 ‘‘(e) COORDINATION WITH TITLE 5.—A magistrate 

11 judge of the Tax Court who elects to receive an annuity 

12 under this section— 

13 ‘‘(1) shall not be subject to deductions and con14 tributions otherwise required by section 8334(a) of 

15 title 5 United States Code, 

16 ‘‘(2) shall be excluded from the application of 

17 chapter 84 (other than subchapters III and VII) of 

18 such title 5, and 

19 ‘‘(3) is entitled to a lump-sum credit under sec20 tion 8342(a) or 8424 of such title 5, as the case 

21 may be.’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 3121(b)(5)(E) of the Internal Rev24 enue Code of 1986 is amended by inserting ‘‘or 


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1 magistrate judge’’ before ‘‘of the United States Tax 

2 Court’’. 

3 (2) Section 210(a)(5)(E) of the Social Security 

4 Act (42 U.S.C. 410(a)(5)(E)) is amended by insert5 ing ‘‘or a magistrate judge of the Tax Court who 

6 files an election under section 7443B(a) of the Inter7 nal Revenue Code of 1986’’ after ‘‘of the United 

8 States Tax Court’’. 

9 (3) Section 7448(b)(2) of the Internal Revenue 

10 Code of 1986 is amended to read as follows: 

11 ‘‘(2) MAGISTRATE JUDGES OF THE TAX

12 COURT.—Any magistrate judge of the Tax Court 

13 may by written election filed with the chief judge 

14 bring himself or herself within the purview of this 

15 section. Such election shall be filed while such indi16 vidual is a magistrate judge of the Tax Court.’’. 

17 (c) CLERICAL AMENDMENT.—The table of sections 

18 for part I of subchapter C of chapter 76 of the Internal 

19 Revenue Code of 1986 is amended by inserting after the 

20 item relating to section 7443A the following new item: 

‘‘Sec. 7443B. Retirement for magistrate judges of the Tax Court.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on the date of the enactment 

23 of this Act. 


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1 SEC. 308. PROVISIONS FOR RECALL. 

2 (a) IN GENERAL.—Part I of subchapter C of chapter 

3 76 of the Internal Revenue Code of 1986, as amended by 

4 section 307, is amended by inserting after section 7443B 

5 the following new section: 

6 ‘‘SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX 

7 COURT. 

8 ‘‘(a) RECALLING OF RETIRED MAGISTRATE JUDGES

9 OF THE TAX COURT.—Any individual who has retired 

10 pursuant to section 7443B or the applicable provisions of 

11 title 5 or 28, United States Code, upon reaching the age 

12 and service requirements established under such titles 5 

13 and 28, may be called upon by the chief judge to perform 

14 such judicial duties with the Tax Court as may be re15 quested of such individual for a period or periods specified 

16 by the chief judge, except that in the case of any such 

17 individual— 

18 ‘‘(1) the aggregate of such periods in any 1 cal19 endar year shall not (without the consent of such in20 dividual) exceed 90 calendar days, and 

21 ‘‘(2) such individual shall be relieved of per22 forming such duties during any period in which ill23 ness or disability precludes the performance of such 

24 duties. 

25 Any act, or failure to act, by an individual performing ju26 dicial duties pursuant to this subsection shall have the 


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1 same force and effect as if it were the act (or failure to 

2 act) of a magistrate judge of the Tax Court. 

3 ‘‘(b) COMPENSATION.—For the year in which a pe4 riod of recall occurs, the magistrate judge of the Tax 

5 Court shall receive, in addition to the annuity provided 

6 under the provisions of section 7443B, an amount equal 

7 to the difference between that annuity and the current sal8 ary of the office to which the magistrate judge of the Tax 

9 Court is recalled (and allowances for travel and other ex10 penses of the magistrate judge of the Tax Court). The 

11 annuity for years after the year in which a period of recall 

12 occurs of the magistrate judge of the Tax Court who com13 pletes such a period of service, who is not recalled in a 

14 subsequent year, and who retired under section 7443B, 

15 shall be equal to the salary in effect at the end of the 

16 year in which the period of recall occurred for the office 

17 from which such magistrate judge of the Tax Court re18 tired. 

19 ‘‘(c) RULEMAKING AUTHORITY.—The provisions of 

20 this section shall be implemented under such rules and 

21 regulations as may be promulgated by the Tax Court.’’. 

22 (b) CLERICAL AMENDMENT.—The table of sections 

23 for part I of subchapter C of chapter 76 of the Internal 

24 Revenue Code of 1986, as amended by section 307, is 


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1 amended by inserting after the item relating to section 

2 7443B the following new item: 

‘‘Sec. 7443C. Recall of magistrate judges of the Tax Court.’’. 

3 TITLE IV—OTHER BENEFITS 

4 SEC. 401. BENEFITS PROVIDED TO VOLUNTEER FIRE5 FIGHTERS AND EMERGENCY MEDICAL RE6 SPONDERS. 

7 (a) INCREASE IN DOLLAR LIMITATION ON QUALI8 FIED PAYMENTS.—Subparagraph (B) of section 

9 139B(c)(2) of the Internal Revenue Code of 1986 is 

10 amended by striking ‘‘$30’’ and inserting ‘‘$50’’. 

11 (b) EXTENSION.—Subsection (d) of section 139B of 

12 the Internal Revenue Code of 1986 is amended by striking 

13 ‘‘beginning after December 31, 2010.’’ and inserting ‘‘be14 ginning— 

15 ‘‘(1) after December 31, 2010, and before Jan16 uary 1, 2020, or 

17 ‘‘(2) after December 31, 2020.’’. 

18 (c) TECHNICAL CORRECTION.—Section 139B(b)(1) 

19 of the Internal Revenue Code of 1986 is amended by in20 serting ‘‘section’’ before ‘‘164’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2019. 


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1 TITLE V—REVENUE PROVISIONS 

2 SEC. 501. MODIFICATIONS OF REQUIRED DISTRIBUTION 

3 RULES FOR DEFINED CONTRIBUTION AC4 COUNTS AND PLANS. 

5 (a) MODIFICATION OF RULES WHERE EMPLOYEE

6 DIES BEFORE ENTIRE DISTRIBUTION.— 

7 (1) IN GENERAL.—Section 401(a)(9) of the In8 ternal Revenue Code of 1986 is amended by adding 

9 at the end the following new subparagraph: 

10 ‘‘(H) SPECIAL RULES FOR CERTAIN DE11 FINED CONTRIBUTION PLANS.— 

12 ‘‘(i) IN GENERAL.—In the case of dis13 tributions from a defined contribution 

14 plan, a trust forming part of such plan 

15 shall not constitute a qualified trust under 

16 this section unless the plan provides that, 

17 if an employee dies before the distribution 

18 of the employee’s interest (whether or not 

19 such distribution has begun in accordance 

20 with subparagraph (A)), so much of the 

21 entire interest of any designated bene22 ficiary of the employee as exceeds 

23 $400,000 (as of the date of the death of 

24 the employee) will be distributed within 5 

25 years after the death of such employee. 


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1 ‘‘(ii) ANNUAL ALLOCATION OF LIMI2 TATION.—If a person is a designated bene3 ficiary under more than 1 defined con4 tribution plan during any calendar year, 

5 the limitation under clause (i)— 

6 ‘‘(I) shall only apply with respect 

7 to interests acquired by such bene8 ficiary during the calendar year by 

9 reason of the death of another indi10 vidual, 

11 ‘‘(II) shall be applied by aggre12 gating each such interest as of the 

13 date of the death of the individual 

14 who designated such beneficiary, and 

15 ‘‘(III) shall be allocated among 

16 each such interest on a pro rata basis 

17 determined by the relative size of each 

18 such plan or account, or as otherwise 

19 provided in regulations prescribed by 

20 the Secretary. 

21 ‘‘(iii) TREATMENT OF REMAINING

22 AMOUNT.—The method of distribution and 

23 period of time over which any portion of 

24 the interest of the designated beneficiary 

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1 tributed shall be determined without re2 gard to the portion of the designated bene3 ficiary’s interest distributed under clause 

4 (i). 

5 ‘‘(iv) EXCEPTION FOR ELIGIBLE DES6 IGNATED BENEFICIARIES.—If— 

7 ‘‘(I) any portion of the employ8 ee’s interest is payable to (or for the 

9 benefit of) an eligible designated bene10 ficiary, 

11 ‘‘(II) such portion will be distrib12 uted (in accordance with regulations) 

13 over the life of such eligible des14 ignated beneficiary (or over a period 

15 not extending beyond the life expect16 ancy of such beneficiary), and 

17 ‘‘(III) such distributions begin 

18 not later than 1 year after the date of 

19 the employee’s death or such later 

20 date as the Secretary may by regula21 tions prescribe, 

22 for purposes of clause (i), the portion re23 ferred to in subclause (I) shall be treated 

24 as distributed on the date on which such 

25 distributions begin. 


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1 ‘‘(v) SPECIAL RULE FOR SURVIVING

2 SPOUSE OF EMPLOYEE.—If the eligible 

3 designated beneficiary is the surviving 

4 spouse of the employee— 

5 ‘‘(I) the date on which the dis6 tributions are required to begin under 

7 clause (iv)(III) shall not be earlier 

8 than the date on which the employee 

would have attained age 701 9 ⁄2, and 

10 ‘‘(II) if the surviving spouse dies 

11 before the distributions to such spouse 

12 begin, this subparagraph shall be ap13 plied as if the surviving spouse were 

14 the employee. 

15 ‘‘(vi) RULES UPON DEATH OF ELIGI16 BLE DESIGNATED BENEFICIARY.—If an el17 igible designated beneficiary dies before the 

18 portion of the employee’s interest to which 

19 clause (i) applies which is payable to (or 

20 for the benefit of) such eligible designated 

21 beneficiary is entirely distributed, the ex22 ception under clause (iv) shall not apply to 

23 any beneficiary of such eligible designated 

24 beneficiary and the remainder of such por25 tion shall be distributed within 5 years 


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1 after the death of such eligible designated 

2 beneficiary. 

3 ‘‘(vii) SAFE HARBOR FOR PLAN AD4 MINISTRATOR RELIANCE ON DESIGNATED

5 BENEFICIARY CERTIFICATION.—A defined 

6 contribution plan shall not be treated as 

7 failing to meet the requirements of this 

8 paragraph in the case of any failure to 

9 make a required minimum distribution for 

10 a calendar year if— 

11 ‘‘(I) the aggregate value of a des12 ignated beneficiary’s entire interest 

13 acquired by such beneficiary during 

14 the calendar year under all such plans 

15 of the employer by reason of the death 

16 of the employee does not exceed the 

17 dollar amount in effect for such year 

18 under clause (i), and 

19 ‘‘(II) the designated beneficiary 

20 certifies, within 1 year after the death 

21 of the employee from whom the bene22 ficiary acquired the interest, that the 

23 aggregate value of the designated 

24 beneficiary’s entire interest acquired 

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1 endar year under all defined contribu2 tion plans by reason of the death of 

3 another individual does not exceed the 

4 dollar amount in effect for such year 

5 under clause (i). 

6 For purposes of this clause, the value of 

7 any interest shall be determined as of the 

8 date of the death of the individual from 

9 whom the beneficiary acquired such inter10 est, and all employers treated as a single 

11 employer under subsection (b), (c), (m), or 

12 (o) of section 414 shall be treated as a sin13 gle employer. 

14 ‘‘(viii) APPLICATION TO ELIGIBLE RE15 TIREMENT PLANS.—For purposes of apply16 ing the provisions of this subparagraph 

17 and subsections (a)(6) and (b)(3) of sec18 tion 408, all eligible retirement plans (as 

19 defined in section 402(c)(8)(B)) other than 

20 defined benefit plans shall be treated as 

21 defined contribution plans in determining 

22 the aggregate account balances to the cred23 it of the designated beneficiary under all 

24 defined contribution plans and the amount 


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1 required to be distributed to each bene2 ficiary under such provisions. 

3 ‘‘(ix) ADJUSTMENT FOR INFLATION.— 

4 In the case of any taxable year beginning 

5 after 2020, the $400,000 amount in clause 

6 (i) shall be increased by an amount equal 

7 to— 

8 ‘‘(I) such dollar amount, multi9 plied by 

10 ‘‘(II) the cost-of-living adjust11 ment determined under section 1(f)(3) 

12 for the calendar year in which the tax13 able year begins, determined by sub14 stituting ‘calendar year 2019’ for ‘cal15 endar year 2016’ in subparagraph 

16 (A)(ii) thereof. 

17 If any amount as adjusted under the pre18 ceding sentence is not a multiple of $500, 

19 such amount shall be rounded to the next 

20 lowest multiple of $500.’’. 

21 (2) DEFINITION OF ELIGIBLE DESIGNATED

22 BENEFICIARY.—Section 401(a)(9)(E) of such Code 

23 is amended to read as follows: 


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1 ‘‘(E) DEFINITIONS AND RULES RELATING

2 TO DESIGNATED BENEFICIARY.—For purposes 

3 of this paragraph— 

4 ‘‘(i) DESIGNATED BENEFICIARY.—The 

5 term ‘designated beneficiary’ means any 

6 individual designated as a beneficiary by 

7 the employee. 

8 ‘‘(ii) ELIGIBLE DESIGNATED BENE9 FICIARY.—The term ‘eligible designated 

10 beneficiary’ means, with respect to any em11 ployee, any designated beneficiary who is— 

12 ‘‘(I) the surviving spouse of the 

13 employee, 

14 ‘‘(II) subject to clause (iii), a 

15 child of the employee who has not 

16 reached majority (within the meaning 

17 of subparagraph (F)), 

18 ‘‘(III) disabled (within the mean19 ing of section 72(m)(7)), 

20 ‘‘(IV) a chronically ill individual 

21 (within the meaning of section 

22 7702B(c)(2), except that the require23 ments of subparagraph (A)(i) thereof 

24 shall only be treated as met if there is 

25 a certification that, as of such date, 


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1 the period of inability described in 

2 such subparagraph with respect to the 

3 individual is an indefinite one which is 

4 reasonably expected to be lengthy in 

5 nature), or 

6 ‘‘(V) an individual not described 

7 in any of the preceding subclauses 

8 who is not more than 10 years young9 er than the employee. 

10 ‘‘(iii) SPECIAL RULE FOR CHIL11 DREN.—Subject to subparagraph (F), an 

12 individual described in clause (ii)(II) shall 

13 cease to be an eligible designated bene14 ficiary as of the date the individual reaches 

15 majority and any remainder of the portion 

16 of the interest described in subparagraph 

17 (H)(iv) which exceeds the amount in effect 

18 under subparagraph (H)(i) as of such date 

19 shall be distributed within 5 years after 

20 such date. 

21 ‘‘(iv) TIME FOR DETERMINATION OF

22 ELIGIBLE DESIGNATED BENEFICIARY.— 

23 The determination of whether a designated 

24 beneficiary is an eligible designated beneVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 ficiary shall be made as of the date of 

2 death of the employee.’’. 

3 (3) CONFORMING AMENDMENTS.— 

4 (A) Clause (ii) of section 401(a)(9)(B) of 

5 the Internal Revenue Code of 1986 is amended 

6 by striking ‘‘A trust’’ and inserting ‘‘Except as 

7 provided in subparagraph (H), a trust’’. 

8 (B) Section 402(c)(11)(A)(iii) of such 

9 Code is amended by striking ‘‘section 

10 401(a)(9)(B) (other than clause (iv) thereof)’’ 

11 and inserting ‘‘subparagraphs (B) (other than 

12 clause (iv) thereof) and (H) (other than clause 

13 (v) thereof) of section 401(a)(9)’’. 

14 (4) EFFECTIVE DATES.— 

15 (A) IN GENERAL.—Except as provided in 

16 this paragraph and paragraphs (5) and (6), the 

17 amendments made by this subsection shall 

18 apply to distributions with respect to employees 

19 who die after December 31, 2019. 

20 (B) COLLECTIVE BARGAINING EXCEP21 TION.—In the case of a plan maintained pursu22 ant to one or more collective bargaining agree23 ments between employee representatives and 

24 one or more employers ratified before the date 

25 of the enactment of this Act, the amendments 


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1 made by this subsection shall apply to distribu2 tions with respect to employees who die in cal3 endar years beginning after the earlier of— 

4 (i) the later of— 

5 (I) the date on which the last of 

6 such collective bargaining agreements 

7 terminates (determined without re8 gard to any extension thereof agreed 

9 to on or after the date of the enact10 ment of this Act), or 

11 (II) December 31, 2019, or 

12 (ii) December 31, 2021. 

13 For purposes of clause (i)(I), any plan amend14 ment made pursuant to a collective bargaining 

15 agreement relating to the plan which amends 

16 the plan solely to conform to any requirement 

17 added by this section shall not be treated as a 

18 termination of such collective bargaining agree19 ment. 

20 (C) GOVERNMENTAL PLANS.—In the case 

21 of a governmental plan (as defined in section 

22 414(d) of the Internal Revenue Code of 1986), 

23 subparagraph (A) shall be applied by sub24 stituting ‘‘December 31, 2021’’ for ‘‘December 

25 31, 2019’’. 


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1 (5) EXCEPTION FOR CERTAIN EXISTING ANNU2 ITY CONTRACTS.— 

3 (A) IN GENERAL.—The amendments made 

4 by this subsection shall not apply to a qualified 

5 annuity which is a binding annuity contract in 

6 effect on the date of enactment of this Act and 

7 at all times thereafter. 

8 (B) QUALIFIED ANNUITY.—For purposes 

9 of this paragraph, the term ‘‘qualified annuity’’ 

10 means, with respect to an employee, an annu11 ity— 

12 (i) which is a commercial annuity (as 

13 defined in section 3405(e)(6) of the Inter14 nal Revenue Code of 1986), 

15 (ii) under which the annuity payments 

16 are made over the life of the employee or 

17 over the joint lives of such employee and a 

18 designated beneficiary (or over a period 

19 not extending beyond the life expectancy of 

20 such employee or the joint life expectancy 

21 of such employee and a designated bene22 ficiary) in accordance with the regulations 

23 described in section 401(a)(9)(A)(ii) of 

24 such Code (as in effect before such amend25 ments) and which meets the other requireVerDate Sep 11 2014 01:04 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 E:\BILLS\S972.IS S972

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1 ments of section 401(a)(9) of such Code 

2 (as so in effect) with respect to such pay3 ments, and 

4 (iii) with respect to which— 

5 (I) annuity payments to the em6 ployee have begun before the date of 

7 the enactment of this Act, and the 

8 employee has made an irrevocable 

9 election before such date as to the 

10 method and amount of the annuity 

11 payments to the employee or any des12 ignated beneficiaries, or 

13 (II) if subclause (I) does not 

14 apply, the employee has made an ir15 revocable election before the date of 

16 the enactment of this Act as to the 

17 method and amount of the annuity 

18 payments to the employee or any des19 ignated beneficiaries. 

20 (6) EXCEPTION FOR CERTAIN BENE21 FICIARIES.— 

22 (A) IN GENERAL.—If an employee dies be23 fore the effective date, then, in applying the 

24 amendments made by this subsection to such 


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1 employee’s designated beneficiary who dies after 

2 such date— 

3 (i) such amendments shall apply to 

4 any beneficiary of such designated bene5 ficiary, and 

6 (ii) the designated beneficiary shall be 

7 treated as an eligible designated bene8 ficiary for purposes of applying section 

9 401(a)(9)(H)(iv) of the Internal Revenue 

10 Code of 1986 (as in effect after such 

11 amendments). 

12 (B) EFFECTIVE DATE.—For purposes of 

13 this paragraph, the term ‘‘effective date’’ means 

14 the first day of the first calendar year to which 

15 the amendments made by this subsection apply 

16 to a plan with respect to employees dying on or 

17 after such date. 

18 (b) PROVISIONS RELATING TO PLAN AMEND19 MENTS.— 

20 (1) IN GENERAL.—If this subsection applies to 

21 any plan amendment— 

22 (A) such plan shall be treated as being op23 erated in accordance with the terms of the plan 

24 during the period described in paragraph 

25 (2)(B)(i), and 


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1 (B) except as provided by the Secretary of 

2 the Treasury (or such Secretary’s delegate), 

3 such plan shall not fail to meet the require4 ments of section 411(d)(6) of the Internal Rev5 enue Code of 1986 and section 204(g) of the 

6 Employee Retirement Income Security Act of 

7 1974 by reason of such amendment. 

8 (2) AMENDMENTS TO WHICH SUBSECTION AP9 PLIES.— 

10 (A) IN GENERAL.—This subsection shall 

11 apply to any amendment to any plan which is 

12 made— 

13 (i) pursuant to any amendment made 

14 by this section or pursuant to any regula15 tion issued by the Secretary of the Treas16 ury (or delegate) under this section or such 

17 amendments, and 

18 (ii) on or before the last day of the 

19 first plan year beginning after December 

20 31, 2021, or such later date as the Sec21 retary of the Treasury (or delegate) may 

22 prescribe. 

23 In the case of a governmental or collectively 

24 bargained plan to which subparagraph (B) or 

25 (C) of subsection (a)(4) applies, clause (ii) shall 


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1 be applied by substituting the date which is 2 

2 years after the date otherwise applied under 

3 such clause. 

4 (B) CONDITIONS.—This subsection shall 

5 not apply to any amendment unless— 

6 (i) during the period— 

7 (I) beginning on the date the leg8 islative or regulatory amendment de9 scribed in subparagraph (A)(i) takes 

10 effect (or in the case of a plan amend11 ment not required by such legislative 

12 or regulatory amendment, the effec13 tive date specified by the plan), and 

14 (II) ending on the date described 

15 in subparagraph (A)(ii) (or, if earlier, 

16 the date the plan amendment is 

17 adopted), 

18 the plan is operated as if such plan amend19 ment were in effect; and 

20 (ii) such plan amendment applies 

21 retroactively for such period. 

22 (c) PLAN ADMINISTRATOR REPORTING.— 

23 (1) IN GENERAL.—Section 6047 of the Internal 

24 Revenue Code of 1986 is amended by redesignating 


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1 subsection (h) as subsection (i) and by inserting 

2 after subsection (g) the following new subsection: 

3 ‘‘(h) ACCOUNT BALANCE FOR DESIGNATED BENE4 FICIARIES OF DECEASED PARTICIPANTS.— 

5 ‘‘(1) IN GENERAL.—Not later than January 31 

6 of each year, the plan administrator (as defined in 

7 section 414(g)) of each eligible retirement plan (as 

8 defined in section 402(c)(8)(B)) other than a de9 fined benefit plan shall make a return to the Sec10 retary with respect to each designated beneficiary of 

11 a deceased participant of such plan. Such return 

12 shall state the following: 

13 ‘‘(A) the name and plan number of the 

14 plan, 

15 ‘‘(B) the name and address of the plan ad16 ministrator, 

17 ‘‘(C) the name, address, and taxpayer 

18 identification number of the designated bene19 ficiary, 

20 ‘‘(D) the account balance (or portion of the 

21 interest therein) of such designated beneficiary 

22 as of the end of such preceding calendar year 

23 (and in the case such preceding year is the year 

24 of the death of the participant, as of the date 

25 of such death), and 


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1 ‘‘(E) the amount of the account balance 

2 (or portion of the interest therein) described in 

3 subparagraph (D) which is attributable to the 

4 portion of the account balance which did not ex5 ceed the amount in effect under section 

6 401(a)(9)(H)(i) as of the date of such death, 

7 and the amount of such account balance (or 

8 portion of the interest therein), if any, which is 

9 attributable to the portion of the account bal10 ance which exceeded such amount as of the 

11 date of such death. 

12 ‘‘(2) STATEMENT FURNISHED TO DESIGNATED

13 BENEFICIARY.—Every person required to make a re14 turn under paragraph (1) with respect to a des15 ignated beneficiary shall furnish a copy of such re16 turn to such designated beneficiary. 

17 ‘‘(3) APPLICATION TO INDIVIDUAL RETIREMENT

18 PLANS AND ANNUITIES.—In the case of an eligible 

19 retirement plan described in clause (i) or (ii) of sec20 tion 402(c)(8)(B)— 

21 ‘‘(A) any reference in this subsection to 

22 the plan administrator shall be treated as a ref23 erence to the trustee or issuer, as the case may 

24 be, and 


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1 ‘‘(B) any reference in this subsection to 

2 the participant shall be treated as a reference 

3 to the individual for whom such account or an4 nuity is maintained.’’. 

5 (2) EFFECTIVE DATE.—The amendments made 

6 by this subsection shall apply to calendar years be7 ginning after December 31, 2020, with respect to 

8 designated beneficiaries of participants whose date 

9 of death is after December 31, 2019. 

10 SEC. 502. INCREASE IN PENALTY FOR FAILURE TO FILE. 

11 (a) IN GENERAL.—The second sentence of subsection 

12 (a) of section 6651 of the Internal Revenue Code of 1986 

13 is amended by striking ‘‘$205’’ and inserting ‘‘$400’’. 

14 (b) ADJUSTMENT FOR INFLATION.—Paragraph (1) 

15 of section 6651(j) of the Internal Revenue Code of 1986 

16 is amended— 

17 (1) by striking ‘‘$205’’ and inserting ‘‘$400’’, 

18 (2) by striking ‘‘2014’’ and inserting ‘‘2020’’, 

19 and 

20 (3) by striking ‘‘calendar year 2013’’ and in21 serting ‘‘calendar year 2019’’. 

22 (c) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to returns the due date for which 

24 (including extensions) is after December 31, 2019. 


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1 SEC. 503. INCREASED PENALTIES FOR FAILURE TO FILE 

2 RETIREMENT PLAN RETURNS. 

3 (a) IN GENERAL.—Subsection (e) of section 6652 of 

4 the Internal Revenue Code of 1986 is amended— 

5 (1) by striking ‘‘$25’’ and inserting ‘‘$100’’, 

6 and 

7 (2) by striking ‘‘$15,000’’ and inserting 

8 ‘‘$50,000’’. 

9 (b) ANNUAL REGISTRATION STATEMENT AND NOTI10 FICATION OF CHANGES.—Subsection (d) of section 6652 

11 of the Internal Revenue Code of 1986 is amended— 

12 (1) by striking ‘‘$1’’ both places it appears in 

13 paragraphs (1) and (2) and inserting ‘‘$2’’, 

14 (2) by striking ‘‘$5,000’’ in paragraph (1) and 

15 inserting ‘‘$10,000’’, and 

16 (3) by striking ‘‘$1,000’’ in paragraph (2) and 

17 inserting ‘‘$5,000’’. 

18 (c) FAILURE TO PROVIDE NOTICE.—Subsection (h) 

19 of section 6652 of the Internal Revenue Code of 1986 is 

20 amended— 

21 (1) by striking ‘‘$10’’ and inserting ‘‘$100’’, 

22 and 

23 (2) by striking ‘‘$5,000’’ and inserting 

24 ‘‘$50,000’’. 

25 (d) EFFECTIVE DATE.—The amendments made by 

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1 cations required to be filed, and notices required to be pro2 vided, after December 31, 2019. 

3 SEC. 504. INCREASE INFORMATION SHARING TO ADMIN4 ISTER EXCISE TAXES. 

5 (a) IN GENERAL.—Section 6103(o) of the Internal 

6 Revenue Code of 1986 is amended by adding at the end 

7 the following new paragraph: 

8 ‘‘(3) TAXES IMPOSED BY SECTION 4481.—Re9 turns and return information with respect to taxes 

10 imposed by section 4481 shall be open to inspection 

11 by or disclosure to officers and employees of United 

12 States Customs and Border Protection of the De13 partment of Homeland Security whose official duties 

14 require such inspection or disclosure for purposes of 

15 administering such section.’’. 

16 (b) CONFORMING AMENDMENTS.—Paragraph (4) of 

17 section 6103(p) of the Internal Revenue Code of 1986 is 

18 amended by striking ‘‘or (o)(1)(A)’’ each place it appears 

19 and inserting ‘‘, (o)(1)(A), or (o)(3)’’. 

Æ 


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