II 

Calendar No. 480 

117TH CONGRESS 

2D SESSION S. 4808 

[Report No. 117–142] 

To amend the Internal Revenue Code of 1986 to reform retirement provisions, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 8, 2022 

Mr. WYDEN, from the Committee on Finance, reported the following original 

bill; which was read twice and placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to reform 

retirement provisions, 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 ‘‘Enhancing American Retirement Now Act’’ or the 

6 ‘‘EARN Act’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amendVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ment or repeal is expressed in terms of an amendment 

2 to, or repeal of, a section or other provision, the reference 

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

5 (c) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—INDIVIDUAL RETIREMENT 

Sec. 101. Secure deferral arrangements. 

Sec. 102. Matching payments for elective deferral and IRA contributions by 

certain individuals. 

Sec. 103. Modification of participation requirements for long-term, part-time 

workers. 

Sec. 104. Treatment of student loan payments as elective deferrals for purposes 

of matching contributions. 

Sec. 105. Withdrawals for certain emergency expenses. 

Sec. 106. Allow additional nonelective contributions to simple plans. 

Sec. 107. Small immediate financial incentives for contributing to a plan. 

Sec. 108. Indexing IRA catch-up limit. 

Sec. 109. Higher catch-up limit to apply at age 60, 61, 62, and 63. 

Sec. 110. Eliminate the ‘‘first day of the month’’ requirement for governmental 

section 457(b) plans. 

Sec. 111. Tax treatment of certain nontrade or business SEP contributions. 

Sec. 112. Elimination of additional tax on corrective distributions of excess contributions. 

Sec. 113. Employer may rely on employee certifying that deemed hardship distribution conditions are met. 

Sec. 114. Penalty-free withdrawals from retirement plans for individuals in case 

of domestic abuse. 

Sec. 115. Amendments to increase benefit accruals under plan for previous plan 

year allowed until employer tax return due date. 

Sec. 116. Retroactive first year elective deferrals for sole proprietors. 

Sec. 117. Treasury guidance on rollovers. 

Sec. 118. Exemption for automatic portability transactions. 

Sec. 119. Application of section 415 limit for certain employees of rural electric 

cooperatives. 

Sec. 120. Insurance-dedicated exchange-traded funds. 

Sec. 121. Modification of age requirement for qualified ABLE programs. 

Sec. 122. Assist savers in recovering unclaimed savings bonds. 

TITLE II—RETIREES 

Sec. 201. Increase in age for required beginning date for mandatory distributions. 

Sec. 202. Qualifying longevity annuity contracts. 

Sec. 203. Remove required minimum distribution barriers for life annuities. 

Sec. 204. Eliminating a penalty on partial annuitization. 


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Sec. 205. Reduction in excise tax on certain accumulations in qualified retirement plans. 

Sec. 206. Clarification of substantially equal periodic payment rule. 

Sec. 207. Recovery of retirement plan overpayments. 

Sec. 208. Retirement Savings Lost and Found. 

Sec. 209. Roth plan distribution rules. 

Sec. 210. One-time election for qualified charitable distribution to split-interest 

entity; increase in qualified charitable distribution limitation. 

Sec. 211. Exception to penalty on early distributions from qualified plans for 

individuals with a terminal illness. 

Sec. 212. Surviving spouse election to be treated as employee. 

Sec. 213. Long-term care contracts purchased with retirement plan distributions. 

TITLE III—PUBLIC SAFETY OFFICERS AND MILITARY 

Sec. 301. Military spouse retirement plan eligibility credit for small employers. 

Sec. 302. Distributions to firefighters. 

Sec. 303. Exclusion of certain disability-related first responder retirement payments. 

Sec. 304. Repeal of direct payment requirement on exclusion from gross income 

of distributions from governmental plans for health and longterm care insurance. 

Sec. 305. Modification of eligible age for exemption from early withdrawal penalty. 

Sec. 306. Exemption from early withdrawal penalty for certain State and local 

government corrections employees. 

TITLE IV—NONPROFITS AND EDUCATORS 

Sec. 401. Enhancement of 403(b) plans. 

Sec. 402. Hardship withdrawal rules for 403(b) plans. 

Sec. 403. Multiple employer 403(b) plans. 

TITLE V—DISASTER RELIEF 

Sec. 501. Special rules for use of retirement funds in connection with qualified 

federally declared disasters. 

TITLE VI—EMPLOYER PLANS 

Sec. 601. Credit for employers with respect to modified safe harbor requirements. 

Sec. 602. Application of top heavy rules to defined contribution plans covering 

excludable employees. 

Sec. 603. Increase in credit limitation for small employer pension plan startup 

costs of certain employers. 

Sec. 604. Expansion of Employee Plans Compliance Resolution System. 

Sec. 605. Application of credit for small employer pension plan startup costs to 

employers which join an existing plan. 

Sec. 606. Safe harbor for corrections of employee elective deferral failures. 

Sec. 607. Reform of family attribution rule. 

Sec. 608. Contribution limit for simple IRAs. 

Sec. 609. Employers allowed to replace simple retirement accounts with safe 

harbor 401(k) plans during a year. 

Sec. 610. Starter 401(k) plans for employers with no retirement plan. 


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Sec. 611. Credit for small employers that adapt an automatic portability arrangement. 

Sec. 612. Re-enrollment credit. 

Sec. 613. Corrections of mortality tables. 

Sec. 614. Enhancing retiree health benefits in pension plans. 

Sec. 615. Deferral of tax for certain sales of employer stock to employee stock 

ownership plan sponsored by S corporation. 

TITLE VII—NOTICES 

Sec. 701. Review and report to Congress relating to reporting and disclosure 

requirements. 

Sec. 702. Report to Congress on section 402(f) notices. 

Sec. 703. Eliminating unnecessary plan requirements related to unenrolled participants. 

TITLE VIII—TECHNICAL MODIFICATIONS 

Sec. 801. Repayment of qualified birth or adoption distribution limited to 3 

years. 

Sec. 802. Amendments relating to Setting Every Community Up for Retirement 

Enhancement Act of 2019. 

Sec. 803. Modification of required minimum distribution rules for special needs 

trusts. 

TITLE IX—PLAN AMENDMENTS 

Sec. 901. Provisions relating to plan amendments. 

TITLE X—TAX COURT RETIREMENT PROVISIONS 

Sec. 1001. Provisions relating to judges of the Tax Court. 

Sec. 1002. Provisions relating to special trial judges of the Tax Court. 

TITLE XI—REVENUE PROVISIONS 

Sec. 1101. Simple and SEP Roth IRAs. 

Sec. 1102. Elective deferrals generally limited to regular contribution limit. 

Sec. 1103. Optional treatment of employer matching or nonelective contributions as Roth contributions. 

Sec. 1104. Charitable conservation easements. 

1 TITLE I—INDIVIDUAL 

2 RETIREMENT 

3 SEC. 101. SECURE DEFERRAL ARRANGEMENTS. 

4 (a) IN GENERAL.—Subsection (k) of section 401 is 

5 amended by adding at the end the following new para6 graph: 


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1 ‘‘(16) ALTERNATIVE METHOD FOR SECURE DE2 FERRAL ARRANGEMENTS TO MEET NONDISCRIMINA3 TION REQUIREMENTS.— 

4 ‘‘(A) IN GENERAL.—A secure deferral ar5 rangement shall be treated as meeting the re6 quirements of paragraph (3)(A)(ii). 

7 ‘‘(B) SECURE DEFERRAL ARRANGE8 MENT.—For purposes of this paragraph, the 

9 term ‘secure deferral arrangement’ means any 

10 cash or deferred arrangement which meets the 

11 requirements of subparagraphs (C), (D), and 

12 (E) of paragraph (13), except as modified by 

13 this paragraph. 

14 ‘‘(C) QUALIFIED PERCENTAGE.—For pur15 poses of this paragraph, in applying paragraph 

16 (13)(C) with respect to any employee, the term 

17 ‘qualified percentage’ means, in lieu of the 

18 meaning given such term in paragraph 

19 (13)(C)(iii), any percentage determined under 

20 the arrangement if such percentage is applied 

21 uniformly and is— 

22 ‘‘(i) at least 6 percent, but not greater 

23 than 10 percent, during the period ending 

24 on the last day of the first plan year which 

25 begins after the date on which the first 


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1 elective contribution described in para2 graph (13)(C)(i) is made with respect to 

3 such employee, 

4 ‘‘(ii) at least 7 percent during the 

5 first plan year following the plan year de6 scribed in clause (i), 

7 ‘‘(iii) at least 8 percent during the 

8 second plan year following the plan year 

9 described in clause (i), 

10 ‘‘(iv) at least 9 percent during the 

11 third plan year following the plan year de12 scribed in clause (i), and 

13 ‘‘(v) at least 10 percent during any 

14 subsequent plan year. 

15 ‘‘(D) MATCHING CONTRIBUTIONS.— 

16 ‘‘(i) IN GENERAL.—For purposes of 

17 this paragraph, an arrangement shall be 

18 treated as having met the requirements of 

19 paragraph (13)(D)(i) if and only if the em20 ployer makes matching contributions on 

21 behalf of each employee who is not a highly 

22 compensated employee in an amount equal 

23 to the sum of— 

24 ‘‘(I) 100 percent of the elective 

25 contributions of the employee to the 


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1 extent such contributions do not ex2 ceed 2 percent of compensation, 

3 ‘‘(II) 50 percent of so much of 

4 such contributions as exceed 2 percent 

5 but do not exceed 6 percent of com6 pensation, plus 

7 ‘‘(III) 20 percent of so much of 

8 such contributions as exceed 6 percent 

9 but do not exceed 10 percent of com10 pensation. 

11 ‘‘(ii) RULES FOR MATCHING CON12 TRIBUTIONS.— 

13 ‘‘(I) IN GENERAL.—The rate of 

14 matching contributions with respect to 

15 each increment of employee contribu16 tions may be higher than the rate 

17 specified in clause (i) so long as such 

18 rate does not increase as an employ19 ee’s rate of elective contributions in20 creases. 

21 ‘‘(II) RULES RELATING TO AL22 TERNATIVE PLAN DESIGNS.—The 

23 rules of paragraph (12)(B)(iii) shall 

24 not apply for purposes of clause (i).’’. 


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1 (b) MATCHING CONTRIBUTIONS.—Subsection (m) of 

2 section 401 is amended by redesignating paragraph (13) 

3 as paragraph (14) and by inserting after paragraph (12) 

4 the following new paragraph: 

5 ‘‘(13) ALTERNATIVE METHOD FOR SECURE DE6 FERRAL ARRANGEMENTS.—A defined contribution 

7 plan shall be treated as meeting the requirements of 

8 paragraph (2) with respect to matching contribu9 tions if the plan— 

10 ‘‘(A) is a secure deferral arrangement (as 

11 defined in subsection (k)(16)), 

12 ‘‘(B) meets the requirements of clauses (ii) 

13 and (iii) of paragraph (11)(B), and 

14 ‘‘(C) provides that matching contributions 

15 on behalf of any employee may not be made 

16 with respect to an employee’s contributions or 

17 elective deferrals in excess of 10 percent of the 

18 employee’s compensation.’’. 

19 (c) CONFORMING AMENDMENTS.— 

20 (1) Clause (ii) of section 401(k)(12)(F) is 

21 amended by striking ‘‘or paragraph (13)(D)(i)(I)’’ 

22 and inserting ‘‘, paragraph (13)(D)(i)(I), or para23 graph (16)(D)’’. 

24 (2) Subclause (II) of section 401(k)(15)(B)(i) is 

25 amended by striking ‘‘subsection (a)(4), paragraphs 


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1 (3), (12), and (13)’’ and inserting ‘‘paragraphs (3), 

2 (12), (13), and (16), subsection (a)(4)’’. 

3 (3) Subparagraph (H) of section 416(g)(4) is 

4 amended— 

5 (A) in clause (i), by striking ‘‘section 

6 401(k)(12) or 401(k)(13)’’ and inserting ‘‘para7 graph (12), (13), or (16) of section 401(k)’’, 

8 and 

9 (B) in clause (ii), by striking ‘‘section 

10 401(m)(11) or 401(m)(12)’’ and inserting 

11 ‘‘paragraph (11), (12), or (13) of section 

12 401(m)’’. 

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

14 this section shall apply to plan years beginning after De15 cember 31, 2023. 

16 SEC. 102. MATCHING PAYMENTS FOR ELECTIVE DEFERRAL 

17 AND IRA CONTRIBUTIONS BY CERTAIN INDI18 VIDUALS. 

19 (a) IN GENERAL.—Subchapter B of chapter 65 is 

20 amended by adding at the end the following new section: 

21 ‘‘SEC. 6433. MATCHING PAYMENTS FOR ELECTIVE DEFER22 RAL AND IRA CONTRIBUTIONS BY CERTAIN 

23 INDIVIDUALS. 

24 ‘‘(a) IN GENERAL.— 


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1 ‘‘(1) ALLOWANCE OF CREDIT.—Any eligible in2 dividual who makes qualified retirement savings con3 tributions for the taxable year shall be allowed a 

4 credit for such taxable year in an amount equal to 

5 the applicable percentage of so much of the qualified 

6 retirement savings contributions made by such eligi7 ble individual for the taxable year as does not exceed 

8 $2,000. 

9 ‘‘(2) PAYMENT OF CREDIT.— 

10 ‘‘(A) IN GENERAL.—Except as provided in 

11 subparagraph (A), the credit under this section 

12 shall be— 

13 ‘‘(i) treated as allowed by subpart C 

14 of part IV of subchapter A of chapter 1, 

15 and 

16 ‘‘(ii) paid by the Secretary as a con17 tribution (as soon as practicable after the 

18 eligible individual has filed a tax return 

19 making a claim for such credit for the tax20 able year) to the applicable retirement sav21 ings vehicle of an eligible individual. 

22 ‘‘(B) EXCEPTION.—In the case of an eligi23 ble individual with respect to whom the credit 

24 determined under paragraph (1) is greater than 

25 zero but less than $100 for the taxable year, 


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1 the eligible individual may elect to have sub2 paragraph (A) not apply. 

3 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

4 this section— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), the applicable percentage is 50 percent. 

7 ‘‘(2) PHASEOUT.—The percentage under para8 graph (1) shall be reduced (but not below zero) by 

9 the number of percentage points which bears the 

10 same ratio to 50 percentage points as— 

11 ‘‘(A) the excess of— 

12 ‘‘(i) the taxpayer’s modified adjusted 

13 gross income for such taxable year, over 

14 ‘‘(ii) the applicable dollar amount, 

15 bears to 

16 ‘‘(B) the phaseout range. 

17 If any reduction determined under this paragraph is 

18 not a whole percentage point, such reduction shall be 

19 rounded to the next lowest whole percentage point. 

20 ‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT

21 RANGE.— 

22 ‘‘(A) JOINT RETURNS AND SURVIVING

23 SPOUSES.—Except as provided in subparagraph 

24 (B)— 


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1 ‘‘(i) the applicable dollar amount is 

2 $41,000, and 

3 ‘‘(ii) the phaseout range is $30,000. 

4 ‘‘(B) OTHER RETURNS.—In the case of— 

5 ‘‘(i) a head of a household (as defined 

6 in section 2(b)), the applicable dollar 

amount and the phaseout range shall be 3 7 ⁄4

8 of the amounts applicable under subpara9 graph (A) (as adjusted under subsection 

10 (h)), and 

11 ‘‘(ii) any taxpayer who is not filing a 

12 joint return, who is not a head of a house13 hold (as so defined), and who is not a sur14 viving spouse (as defined in section 2(a)), 

15 the applicable dollar amount and the 

phaseout range shall be 1 16 ⁄2 of the amounts 

17 applicable under subparagraph (A) (as so 

18 adjusted). 

19 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 

20 section— 

21 ‘‘(1) IN GENERAL.—The term ‘eligible indi22 vidual’ means any individual if such individual has 

23 attained the age of 18 as of the close of the taxable 

24 year. 


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1 ‘‘(2) DEPENDENTS AND FULL-TIME STUDENTS

2 NOT ELIGIBLE.—The term ‘eligible individual’ shall 

3 not include— 

4 ‘‘(A) any individual with respect to whom 

5 a deduction under section 151 is allowed to an6 other taxpayer for a taxable year beginning in 

7 the calendar year in which such individual’s 

8 taxable year begins, and 

9 ‘‘(B) any individual who is a student (as 

10 defined in section 152(f)(2)). 

11 ‘‘(3) NONRESIDENT ALIENS NOT ELIGIBLE.— 

12 The term ‘eligible individual’ shall not include any 

13 individual who is a nonresident alien individual for 

14 any portion of the taxable year unless such indi15 vidual is treated for such taxable year as a resident 

16 of the United States for purposes of chapter 1 by 

17 reason of an election under subsection (g) or (h) of 

18 section 6013. 

19 ‘‘(d) QUALIFIED RETIREMENT SAVINGS CONTRIBU20 TIONS.—For purposes of this section— 

21 ‘‘(1) IN GENERAL.—The term ‘qualified retire22 ment savings contributions’ means, with respect to 

23 any taxable year, the sum of— 


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1 ‘‘(A) the amount of the qualified retire2 ment contributions (as defined in section 

3 219(e)) made by the eligible individual, 

4 ‘‘(B) the amount of— 

5 ‘‘(i) any elective deferrals (as defined 

6 in section 402(g)(3)) of such individual, 

7 and 

8 ‘‘(ii) any elective deferral of com9 pensation by such individual under an eli10 gible deferred compensation plan (as de11 fined in section 457(b)) of an eligible em12 ployer described in section 457(e)(1)(A), 

13 and 

14 ‘‘(C) the amount of voluntary employee 

15 contributions by such individual to any qualified 

16 retirement plan (as defined in section 4974(c)). 

17 Such term shall not include any amount attributable 

18 to a payment under subsection (a)(2). 

19 ‘‘(2) REDUCTION FOR CERTAIN DISTRIBU20 TIONS.— 

21 ‘‘(A) IN GENERAL.—The qualified retire22 ment savings contributions determined under 

23 paragraph (1) for a taxable year shall be re24 duced (but not below zero) by the aggregate 

25 distributions received by the individual during 


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1 the testing period from any entity of a type to 

2 which contributions under paragraph (1) may 

3 be made. 

4 ‘‘(B) TESTING PERIOD.—For purposes of 

5 subparagraph (A), the testing period, with re6 spect to a taxable year, is the period which in7 cludes— 

8 ‘‘(i) such taxable year, 

9 ‘‘(ii) the 2 preceding taxable years, 

10 and 

11 ‘‘(iii) the period after such taxable 

12 year and before the due date (including ex13 tensions) for filing the return of tax for 

14 such taxable year. 

15 ‘‘(C) EXCEPTED DISTRIBUTIONS.—There 

16 shall not be taken into account under subpara17 graph (A)— 

18 ‘‘(i) any distribution referred to in 

19 section 72(p), 401(k)(8), 401(m)(6), 

20 402(g)(2), 404(k), or 408(d)(4), 

21 ‘‘(ii) any distribution to which section 

22 408(d)(3) or 408A(d)(3) applies, and 

23 ‘‘(iii) any portion of a distribution if 

24 such portion is transferred or paid in a 

25 rollover contribution (as defined in section 


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1 402(c), 403(a)(4), 403(b)(8), 408A(e), or 

2 457(e)(16)) to an account or plan to which 

3 qualified retirement savings contributions 

4 can be made. 

5 ‘‘(D) TREATMENT OF DISTRIBUTIONS RE6 CEIVED BY SPOUSE OF INDIVIDUAL.—For pur7 poses of determining distributions received by 

8 an individual under subparagraph (A) for any 

9 taxable year, any distribution received by the 

10 spouse of such individual shall be treated as re11 ceived by such individual if such individual and 

12 spouse file a joint return for such taxable year 

13 and for the taxable year during which the 

14 spouse receives the distribution. 

15 ‘‘(e) APPLICABLE RETIREMENT SAVINGS VEHI16 CLE.— 

17 ‘‘(1) IN GENERAL.—The term ‘applicable retire18 ment savings vehicle’ means an account or plan 

19 elected by the eligible individual under paragraph 

20 (2). 

21 ‘‘(2) ELECTION.—Any such election to have 

22 contributed the amount determined under subsection 

23 (a) shall be to an account or plan which— 

24 ‘‘(A) is— 


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1 ‘‘(i) the portion of a plan described in 

2 clause (iii), (iv), (v), or (vi) of section 

3 402(c)(8)(B) which does not consist of a 

4 qualified Roth contribution program (as 

5 defined in section 402A(b)), or 

6 ‘‘(ii) an individual retirement plan 

7 which is not a Roth IRA, 

8 ‘‘(B) is for the benefit of the eligible indi9 vidual, 

10 ‘‘(C) accepts contributions made under this 

11 section, and 

12 ‘‘(D) is designated by such individual (in 

13 such form and manner as the Secretary may 

14 provide). 

15 ‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 

16 ‘‘(1) MODIFIED ADJUSTED GROSS INCOME.— 

17 For purposes of this section, the term ‘modified ad18 justed gross income’ means adjusted gross income— 

19 ‘‘(A) determined without regard to sections 

20 911, 931, and 933, and 

21 ‘‘(B) determined without regard to any ex22 clusion or deduction allowed for any qualified 

23 retirement savings contribution made during 

24 the taxable year. 


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1 ‘‘(2) TREATMENT OF CONTRIBUTIONS.—In the 

2 case of any contribution under subsection (a)(2)— 

3 ‘‘(A) except as otherwise provided in this 

4 section or by the Secretary under regulations, 

5 such contribution shall be treated as— 

6 ‘‘(i) an elective deferral made by the 

7 individual, if contributed to an applicable 

8 retirement savings vehicle described in sub9 section (e)(2)(A)(i), or 

10 ‘‘(ii) as an individual retirement plan 

11 contribution made by such individual, if 

12 contributed to such a plan, and 

13 ‘‘(B) such contribution shall not be taken 

14 into account with respect to any applicable limi15 tation under sections 402(g)(1), 403(b), 

16 408(a)(1), 408(b)(2)(B), 408A(c)(2), 414(v)(2), 

17 415(c), or 457(b)(2), and shall be disregarded 

18 for purposes of sections 401(a)(4), 401(k)(3), 

19 401(k)(11)(B)(i)(III), and 416. 

20 ‘‘(3) TREATMENT OF QUALIFIED PLANS, ETC.— 

21 A plan or arrangement to which a contribution is 

22 made under this section shall not be treated as vio23 lating any requirement under section 401, 403, 408, 

24 or 457 solely by reason of accepting such contribu25 tion. 


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1 ‘‘(4) ERRONEOUS CREDITS.— 

2 ‘‘(A) IN GENERAL.—If any contribution is 

3 erroneously paid under subsection (a)(2), in4 cluding a payment that is not made to an appli5 cable retirement savings vehicle, the amount of 

6 such erroneous payment shall be treated as an 

7 underpayment of tax (other than for purposes 

8 of part II of subchapter A of chapter 68) for 

9 the taxable year in which the Secretary deter10 mines the payment is erroneous. 

11 ‘‘(B) DISTRIBUTION OF ERRONEOUS CRED12 ITS.—In the case of a contribution to which 

13 subparagraph (A) applies— 

14 ‘‘(i) section 402(a), 403(a)(1), 

15 403(b)(1), 408(d)(1), or 457(a)(1), which16 ever is applicable, shall not apply to any 

17 distribution of such contribution, and sec18 tion 72(t) shall not apply to the distribu19 tion of such contribution or any income at20 tributable thereto, if such distribution is 

21 received not later than the day prescribed 

22 by law (including extensions of time) for 

23 filing the individual’s return for such tax24 able year, and 


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1 ‘‘(ii) any plan or arrangement from 

2 which such a distribution is made under 

3 this subparagraph shall not be treated as 

4 violating any requirement under section 

5 401, 403, or 457 solely by reason of mak6 ing such distribution. 

7 ‘‘(5) EXCEPTION FROM REDUCTION OR OFF8 SET.—Any payment made to any individual under 

9 this section shall not be— 

10 ‘‘(A) subject to reduction or offset pursu11 ant to subsection (c), (d), (e), or (f) of section 

12 6402 or any similar authority permitting offset, 

13 or 

14 ‘‘(B) reduced or offset by other assessed 

15 Federal taxes that would otherwise be subject 

16 to levy or collection. 

17 ‘‘(g) PROVISION BY SECRETARY OF INFORMATION

18 RELATING TO CONTRIBUTIONS.—In the case of an 

19 amount elected by an eligible individual to be contributed 

20 to an account or plan under subsection (e)(2), the Sec21 retary shall provide general guidance applicable to the cus22 todian of the account or the plan sponsor, as the case may 

23 be, detailing the treatment of such contribution under sub24 section (f)(2) and the reporting requirements with respect 

25 to such contribution under section 6058, particularly as 


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1 such requirements are modified pursuant to section 

2 102(c)(2) of the Enhancing American Retirement Now 

3 Act. 

4 ‘‘(h) INFLATION ADJUSTMENTS.— 

5 ‘‘(1) IN GENERAL.—In the case of any taxable 

6 year beginning in a calendar year after 2027, the 

7 $41,000 amount in subsection (b)(3)(A)(i) shall be 

8 increased by an amount equal to— 

9 ‘‘(A) such dollar amount, multiplied by 

10 ‘‘(B) the cost-of-living adjustment deter11 mined under section 1(f)(3) for the calendar 

12 year in which the taxable year begins, deter13 mined by substituting ‘calendar year 2026’ for 

14 ‘calendar year 2016’ in subparagraph (A)(ii) 

15 thereof. 

16 ‘‘(2) ROUNDING.—Any increase determined 

17 under paragraph (1) shall be rounded to the nearest 

18 multiple of $1,000.’’. 

19 (b) TREATMENT OF CERTAIN POSSESSIONS.— 

20 (1) PAYMENTS TO POSSESSIONS WITH MIRROR

21 CODE TAX SYSTEMS.—The Secretary of the Treas22 ury shall pay to each possession of the United States 

23 which has a mirror code tax system amounts equal 

24 to the loss (if any) to that possession by reason of 

25 the amendments made by this section. Such 


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1 amounts shall be determined by the Secretary of the 

2 Treasury based on information provided by the gov3 ernment of the respective possession. 

4 (2) PAYMENTS TO OTHER POSSESSIONS.—The 

5 Secretary of the Treasury shall pay to each posses6 sion of the United States which does not have a mir7 ror code tax system amounts estimated by the Sec8 retary of the Treasury as being equal to the aggre9 gate benefits (if any) that would have been provided 

10 to residents of such possession by reason of the 

11 amendments made by this section if a mirror code 

12 tax system had been in effect in such possession. 

13 The preceding sentence shall not apply unless the re14 spective possession has a plan, which has been ap15 proved by the Secretary of the Treasury, under 

16 which such possession will promptly distribute such 

17 payments to its residents. 

18 (3) COORDINATION WITH CREDIT ALLOWED

19 AGAINST UNITED STATES INCOME TAXES.—No cred20 it shall be allowed against United States income 

21 taxes under section 6433 of the Internal Revenue 

22 Code of 1986 (as added by this section) to any per23 son— 


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1 (A) to whom a credit is allowed against 

2 taxes imposed by the possession by reason of 

3 the amendments made by this section, or 

4 (B) who is eligible for a payment under a 

5 plan described in paragraph (2). 

6 (4) MIRROR CODE TAX SYSTEM.—For purposes 

7 of this subsection, the term ‘‘mirror code tax sys8 tem’’ means, with respect to any possession of the 

9 United States, the income tax system of such posses10 sion if the income tax liability of the residents of 

11 such possession under such system is determined by 

12 reference to the income tax laws of the United 

13 States as if such possession were the United States. 

14 (5) TREATMENT OF PAYMENTS.—For purposes 

15 of section 1324 of title 31, United States Code, the 

16 payments under this subsection shall be treated in 

17 the same manner as a refund due from a credit pro18 vision referred to in subsection (b)(2) of such sec19 tion. 

20 (c) ADMINISTRATIVE PROVISIONS.— 

21 (1) DEFICIENCIES.—Section 6211(b)(4) is 

22 amended by striking ‘‘and 7527A’’ and inserting 

23 ‘‘7527A, and 6433’’. 

24 (2) REPORTING.—The Secretary of the Treas25 ury shall amend the forms relating to reports reVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 quired under section 6058 of the Internal Revenue 

2 Code of 1986 to require— 

3 (A) separate reporting of the aggregate 

4 amount of contributions received by the plan 

5 during the year under section 6433 of the In6 ternal Revenue Code of 1986 (as added by this 

7 section), and 

8 (B) similar reporting with respect to indi9 vidual retirement accounts (as defined in sec10 tion 408 of such Code) and individual retire11 ment annuities (as defined in section 408(b) of 

12 such Code). 

13 (d) PAYMENT AUTHORITY.—Section 1324(b)(2) of 

14 title 31, United States Code, is amended by striking ‘‘or 

15 7527A’’ and inserting ‘‘7527A, or 6433’’. 

16 (e) CONFORMING AMENDMENTS.— 

17 (1) Paragraph (1) of section 25B(d) is amend18 ed by striking ‘‘the sum of—’’ and all that follows 

19 through ‘‘the amount of contributions made before 

20 January 1, 2026’’ and inserting ‘‘the amount of con21 tributions made before January 1, 2026’’. 

22 (2) The table of sections for subchapter B of 

23 chapter 65 is amended by adding at the end the fol24 lowing new item: 

‘‘Sec. 6433. Matching payments for elective deferral and IRA contributions by 

certain individuals.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2026. 

4 SEC. 103. MODIFICATION OF PARTICIPATION REQUIRE5 MENTS FOR LONG-TERM, PART-TIME WORK6 ERS. 

7 (a) PARTICIPATION REQUIREMENT.—Clause (ii) of 

8 section 401(k)(2)(D) is amended by striking ‘‘3 consecu9 tive’’ and inserting ‘‘2 consecutive’’. 

10 (b) PRE-2021 SERVICE.—Section 112(b) of the Set11 ting Every Community Up for Retirement Enhancement 

12 Act of 2019 (26 U.S.C. 401 note) is amended by striking 

13 ‘‘section 401(k)(2)(D)(ii)’’ and inserting ‘‘paragraphs 

14 (2)(D)(ii) and (15)(B)(iii) of section 401(k)’’. 

15 (c) COORDINATION WITH RULES FOR TOP-HEAVY

16 PLANS.—Subparagraph (H) of section 416(g)(4), as 

17 amended by this Act, is further amended by inserting be18 fore ‘‘If, but’’ the following: ‘‘Such term shall not include 

19 a plan solely because such plan does not provide matching 

20 contributions to employees described in section 

21 401(k)(15)(B)(i).’’. 

22 (d) EFFECTIVE DATES.— 

23 (1) IN GENERAL.—The amendment made by 

24 subsection (a) shall apply to plan years beginning 

25 after December 31, 2022. 


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1 (2) PRE-2021 SERVICE AND TOP-HEAVY

2 RULES.—The amendments made by subsections (b) 

3 and (c) shall take effect as if included in the enact4 ment of section 112 of the Setting Every Commu5 nity Up for Retirement Enhancement Act of 2019. 

6 SEC. 104. TREATMENT OF STUDENT LOAN PAYMENTS AS 

7 ELECTIVE DEFERRALS FOR PURPOSES OF 

8 MATCHING CONTRIBUTIONS. 

9 (a) IN GENERAL.—Subparagraph (A) of section 

10 401(m)(4) is amended by striking ‘‘and’’ at the end of 

11 clause (i), by striking the period at the end of clause (ii) 

12 and inserting ‘‘, and’’, and by adding at the end the fol13 lowing new clause: 

14 ‘‘(iii) subject to the requirements of 

15 paragraph (14), any employer contribution 

16 made to a defined contribution plan on be17 half of an employee on account of a quali18 fied student loan payment.’’. 

19 (b) QUALIFIED STUDENT LOAN PAYMENT.—Para20 graph (4) of section 401(m) is amended by adding at the 

21 end the following new subparagraph: 

22 ‘‘(D) QUALIFIED STUDENT LOAN PAY23 MENT.—The term ‘qualified student loan pay24 ment’ means a payment made by an employee 

25 in repayment of a qualified education loan (as 


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1 defined in section 221(d)(1)) incurred by the 

2 employee to pay qualified higher education ex3 penses, but only— 

4 ‘‘(i) to the extent such payments in 

5 the aggregate for the year do not exceed 

6 an amount equal to— 

7 ‘‘(I) the limitation applicable 

8 under section 402(g) for the year (or, 

9 if lesser, the employee’s compensation 

10 (as defined in section 415(c)(3)) for 

11 the year), reduced by 

12 ‘‘(II) the elective deferrals made 

13 by the employee for such year, and 

14 ‘‘(ii) if the employee certifies annually 

15 to the employer making the matching con16 tribution under this paragraph that such 

17 payment has been made on such loan. 

18 For purposes of this subparagraph, the term 

19 ‘qualified higher education expenses’ means the 

20 cost of attendance (as defined in section 472 of 

21 the Higher Education Act of 1965, as in effect 

22 on the day before the date of the enactment of 

23 the Taxpayer Relief Act of 1997) at an eligible 

24 educational institution (as defined in section 

25 221(d)(2)).’’. 


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1 (c) MATCHING CONTRIBUTIONS FOR QUALIFIED

2 STUDENT LOAN PAYMENTS.—Subsection (m) of section 

3 401, as amended by this Act, is further amended by redes4 ignating paragraph (14) as paragraph (15), and by insert5 ing after paragraph (13) the following new paragraph: 

6 ‘‘(14) MATCHING CONTRIBUTIONS FOR QUALI7 FIED STUDENT LOAN PAYMENTS.— 

8 ‘‘(A) IN GENERAL.—For purposes of para9 graph (4)(A)(iii), an employer contribution 

10 made to a defined contribution plan on account 

11 of a qualified student loan payment shall be 

12 treated as a matching contribution for purposes 

13 of this title if— 

14 ‘‘(i) the plan provides matching con15 tributions on account of elective deferrals 

16 at the same rate as contributions on ac17 count of qualified student loan payments, 

18 ‘‘(ii) the plan provides matching con19 tributions on account of qualified student 

20 loan payments only on behalf of employees 

21 otherwise eligible to receive matching con22 tributions on account of elective deferrals, 

23 ‘‘(iii) under the plan, all employees el24 igible to receive matching contributions on 

25 account of elective deferrals are eligible to 


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1 receive matching contributions on account 

2 of qualified student loan payments, and 

3 ‘‘(iv) the plan provides that matching 

4 contributions on account of qualified stu5 dent loan payments vest in the same man6 ner as matching contributions on account 

7 of elective deferrals. 

8 ‘‘(B) TREATMENT FOR PURPOSES OF NON9 DISCRIMINATION RULES, ETC.— 

10 ‘‘(i) NONDISCRIMINATION RULES.— 

11 For purposes of subparagraph (A)(iii), 

12 subsection (a)(4), and section 410(b), 

13 matching contributions described in para14 graph (4)(A)(iii) shall not fail to be treated 

15 as available to an employee solely because 

16 such employee does not have debt incurred 

17 under a qualified education loan (as de18 fined in section 221(d)(1)). 

19 ‘‘(ii) STUDENT LOAN PAYMENTS NOT

20 TREATED AS PLAN CONTRIBUTION.—Ex21 cept as provided in clause (iii), a qualified 

22 student loan payment shall not be treated 

23 as a contribution to a plan under this title. 

24 ‘‘(iii) MATCHING CONTRIBUTION

25 RULES.—Solely for purposes of meeting 


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1 the requirements of paragraph (11)(B), 

2 (12), or (13) of this subsection, or para3 graph (11)(B)(i)(II), (12)(B), (13)(D), or 

4 (16)(D) of subsection (k), a plan may treat 

5 a qualified student loan payment as an 

6 elective deferral or an elective contribution, 

7 whichever is applicable. 

8 ‘‘(iv) ACTUAL DEFERRAL PERCENT9 AGE TESTING.—In determining whether a 

10 plan meets the requirements of subsection 

11 (k)(3)(A)(ii) for a plan year, the plan may 

12 apply the requirements of such subsection 

13 separately with respect to all employees 

14 who receive matching contributions de15 scribed in paragraph (4)(A)(iii) for the 

16 plan year. 

17 ‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE

18 CERTIFICATION.—The employer may rely on an 

19 employee certification of payment under para20 graph (4)(D)(ii).’’. 

21 (d) SIMPLE RETIREMENT ACCOUNTS.—Paragraph 

22 (2) of section 408(p) is amended by adding at the end 

23 the following new subparagraph: 

24 ‘‘(F) MATCHING CONTRIBUTIONS FOR

25 QUALIFIED STUDENT LOAN PAYMENTS.— 


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1 ‘‘(i) IN GENERAL.—Subject to the 

2 rules of clause (iii), an arrangement shall 

3 not fail to be treated as meeting the re4 quirements of subparagraph (A)(iii) solely 

5 because under the arrangement, solely for 

6 purposes of such subparagraph, qualified 

7 student loan payments are treated as 

8 amounts elected by the employee under 

9 subparagraph (A)(i)(I) to the extent such 

10 payments do not exceed— 

11 ‘‘(I) the applicable dollar amount 

12 under subparagraph (E) (after appli13 cation of section 414(v)) for the year 

14 (or, if lesser, the employee’s com15 pensation (as defined in section 

16 415(c)(3)) for the year), reduced by 

17 ‘‘(II) any other amounts elected 

18 by the employee under subparagraph 

19 (A)(i)(I) for the year. 

20 ‘‘(ii) QUALIFIED STUDENT LOAN PAY21 MENT.—For purposes of this subpara22 graph— 

23 ‘‘(I) IN GENERAL.—The term 

24 ‘qualified student loan payment’ 

25 means a payment made by an emVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ployee in repayment of a qualified 

2 education loan (as defined in section 

3 221(d)(1)) incurred by the employee 

4 to pay qualified higher education ex5 penses, but only if the employee cer6 tifies to the employer making the 

7 matching contribution that such pay8 ment has been made on such a loan. 

9 ‘‘(II) QUALIFIED HIGHER EDU10 CATION EXPENSES.—The term ‘quali11 fied higher education expenses’ has 

12 the same meaning as when used in 

13 section 401(m)(4)(D). 

14 ‘‘(iii) APPLICABLE RULES.—Clause (i) 

15 shall apply to an arrangement only if, 

16 under the arrangement— 

17 ‘‘(I) matching contributions on 

18 account of qualified student loan pay19 ments are provided only on behalf of 

20 employees otherwise eligible to elect 

21 contributions under subparagraph 

22 (A)(i)(I), and 

23 ‘‘(II) all employees otherwise eli24 gible to participate in the arrange25 ment are eligible to receive matching 


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1 contributions on account of qualified 

2 student loan payments.’’. 

3 (e) 403(b) PLANS.—Subparagraph (A) of section 

4 403(b)(12) is amended by adding at the end the following: 

5 ‘‘The fact that the employer offers matching contributions 

6 on account of qualified student loan payments as described 

7 in section 401(m)(14) shall not be taken into account in 

8 determining whether the arrangement satisfies the re9 quirements of clause (ii) (and any regulation there10 under).’’. 

11 (f) 457(b) PLANS.—Subsection (b) of section 457 is 

12 amended by adding at the end the following: ‘‘A plan 

13 which is established and maintained by an employer which 

14 is described in subsection (e)(1)(A) shall not be treated 

15 as failing to meet the requirements of this subsection sole16 ly because the plan, or another plan maintained by the 

17 employer which meets the requirements of section 401(a) 

18 or 403(b), provides for matching contributions on account 

19 of qualified student loan payments as described in section 

20 401(m)(14).’’. 

21 (g) REGULATORY AUTHORITY.—The Secretary of the 

22 Treasury (or such Secretary’s delegate) shall prescribe 

23 regulations for purposes of implementing the amendments 

24 made by this section, including regulations— 


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1 (1) permitting a plan to make matching con2 tributions for qualified student loan payments, as 

3 defined in sections 401(m)(4)(D) and 408(p)(2)(F) 

4 of the Internal Revenue Code of 1986, as added by 

5 this section, at a different frequency than matching 

6 contributions are otherwise made under the plan, 

7 provided that the frequency is not less than annu8 ally; 

9 (2) permitting employers to establish reasonable 

10 procedures to claim matching contributions for such 

11 qualified student loan payments under the plan, in12 cluding an annual deadline (not earlier than 3 

13 months after the close of each plan year) by which 

14 a claim must be made; and 

15 (3) promulgating model amendments which 

16 plans may adopt to implement matching contribu17 tions on such qualified student loan payments for 

18 purposes of sections 401(m), 408(p), 403(b), and 

19 457(b) of the Internal Revenue Code of 1986. 

20 (h) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to contributions made for plan 

22 years beginning after December 31, 2023. 


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1 SEC. 105. WITHDRAWALS FOR CERTAIN EMERGENCY EX2 PENSES. 

3 (a) IN GENERAL.—Paragraph (2) of section 72(t) is 

4 amended by adding at the end the following new subpara5 graph: 

6 ‘‘(I) DISTRIBUTIONS FOR CERTAIN EMER7 GENCY EXPENSES.— 

8 ‘‘(i) IN GENERAL.—Any emergency 

9 personal expense distribution. 

10 ‘‘(ii) ANNUAL LIMITATION.—Not more 

11 than 1 distribution per calendar year may 

12 be treated as an emergency personal ex13 pense distribution by any individual. 

14 ‘‘(iii) DOLLAR LIMITATION.—The 

15 amount which may be treated as an emer16 gency personal expense distribution by any 

17 individual in any calendar year shall not 

18 exceed the lesser of $1,000 or an amount 

19 equal to the excess of— 

20 ‘‘(I) the individual’s total non21 forfeitable accrued benefit under the 

22 plan (the individual’s total interest in 

23 the plan in the case of an individual 

24 retirement plan), determined as of the 

25 date of each such distribution, over 

26 ‘‘(II) $1,000. 


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1 ‘‘(iv) EMERGENCY PERSONAL EX2 PENSE DISTRIBUTION.—For purposes of 

3 this subparagraph, the term ‘emergency 

4 personal expense distribution’ means any 

5 distribution from an applicable eligible re6 tirement plan (as defined in subparagraph 

7 (H)(vi)(I)) to an individual for purposes of 

8 meeting unforeseeable or immediate finan9 cial needs relating to necessary personal or 

10 family emergency expenses. The adminis11 trator of an applicable eligible retirement 

12 plan may rely on an employee’s certifi13 cation that the employee satisfies the con14 ditions of the preceding sentence in deter15 mining whether any distribution is an 

16 emergency personal expense distribution. 

17 The Secretary may provide by regulations 

18 for exceptions to the rule of the preceding 

19 sentence in cases where the plan adminis20 trator has actual knowledge to the con21 trary of the employee’s certification, and 

22 for procedures for addressing cases of em23 ployee misrepresentation. 

24 ‘‘(v) TREATMENT OF PLAN DISTRIBU25 TIONS.—If a distribution to an individual 


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1 would (without regard to clause (ii) or 

2 (iii)) be an emergency personal expense 

3 distribution, a plan shall not be treated as 

4 failing to meet any requirement of this 

5 title merely because the plan treats the dis6 tribution as an emergency personal ex7 pense distribution, unless the number or 

8 the aggregate amount of such distributions 

9 from all plans maintained by the employer 

10 (and any member of any controlled group 

11 which includes the employer, determined as 

12 provided in subparagraph (H)(iv)(II)) to 

13 such individual exceeds the limitation de14 termined under clause (ii) or (iii). 

15 ‘‘(vi) AMOUNT DISTRIBUTED MAY BE

16 REPAID.— 

17 ‘‘(I) IN GENERAL.—Any indi18 vidual who receives an emergency per19 sonal expense distribution may, at any 

20 time during the 3-year period begin21 ning on the day after the date on 

22 which such distribution was received, 

23 make one or more contributions in an 

24 aggregate amount not to exceed the 

25 amount of such distribution to an apVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 plicable eligible retirement plan of 

2 which such individual is a beneficiary 

3 and to which a rollover contribution of 

4 such distribution could be made under 

5 section 402(c), 403(a)(4), 403(b)(8), 

6 408(d)(3), or 457(e)(16), as the case 

7 may be. 

8 ‘‘(II) LIMITATION ON CONTRIBU9 TIONS TO APPLICABLE ELIGIBLE RE10 TIREMENT PLANS OTHER THAN

11 IRAS.—The aggregate amount of con12 tributions made by an individual 

13 under subclause (I) to any applicable 

14 eligible retirement plan which is not 

15 an individual retirement plan shall not 

16 exceed the aggregate amount of emer17 gency personal expense distributions 

18 which are made from such plan to 

19 such individual. Subclause (I) shall 

20 not apply to contributions to any ap21 plicable eligible retirement plan which 

22 is not an individual retirement plan 

23 unless the individual is eligible to 

24 make contributions (other than those 


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1 described in subclause (I)) to such ap2 plicable eligible retirement plan. 

3 ‘‘(III) TREATMENT OF REPAY4 MENTS OF DISTRIBUTIONS FROM AP5 PLICABLE ELIGIBLE RETIREMENT

6 PLANS OTHER THAN IRAS.—If a con7 tribution is made under subclause (I) 

8 with respect to an emergency personal 

9 expense distribution from an applica10 ble eligible retirement plan other than 

11 an individual retirement plan, then 

12 the taxpayer shall, to the extent of the 

13 amount of the contribution, be treated 

14 as having received such distribution in 

15 an eligible rollover distribution (as de16 fined in section 402(c)(4)) and as 

17 having transferred the amount to the 

18 applicable eligible retirement plan in a 

19 direct trustee to trustee transfer with20 in 60 days of the distribution. 

21 ‘‘(IV) TREATMENT OF REPAY22 MENTS FOR DISTRIBUTIONS FROM

23 IRAS.—If a contribution is made 

24 under subclause (I) with respect to an 

25 emergency personal expense distribuVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 tion from an individual retirement 

2 plan, then, to the extent of the 

3 amount of the contribution, such dis4 tribution shall be treated as a dis5 tribution described in section 

6 408(d)(3) and as having been trans7 ferred to the applicable eligible retire8 ment plan in a direct trustee to trust9 ee transfer within 60 days of the dis10 tribution. 

11 ‘‘(vii) LIMITATION ON SUBSEQUENT

12 DISTRIBUTIONS.—If a distribution is treat13 ed as an emergency personal expense dis14 tribution in any calendar year with respect 

15 to a plan of the employee, no amount may 

16 be treated as such a distribution during 

17 the immediately following 3 calendar years 

18 with respect to such plan unless— 

19 ‘‘(I) such previous distribution is 

20 fully repaid to such plan pursuant to 

21 clause (vi), or 

22 ‘‘(II) the aggregate of the elective 

23 deferrals and employee contributions 

24 to the plan (the total amounts con25 tributed to the plan in the case of an 


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1 individual retirement plan) subsequent 

2 to such previous distribution is at 

3 least equal to the amount of such pre4 vious distribution which has not been 

5 so repaid. 

6 ‘‘(viii) SPECIAL RULES.—Rules simi7 lar to the rules of subclauses (II) and (IV) 

8 of subparagraph (H)(vi) shall apply to any 

9 emergency personal expense distribution.’’. 

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

11 this section shall apply to distributions made after Decem12 ber 31, 2023. 

13 SEC. 106. ALLOW ADDITIONAL NONELECTIVE CONTRIBU14 TIONS TO SIMPLE PLANS. 

15 (a) IN GENERAL.— 

16 (1) MODIFICATION TO DEFINITION.—Subpara17 graph (A) of section 408(p)(2) is amended by strik18 ing ‘‘and’’ at the end of clause (iii), by redesignating 

19 clause (iv) as clause (v), and by inserting after 

20 clause (iii) the following new clause: 

21 ‘‘(iv) the employer may make nonelec22 tive contributions— 

23 ‘‘(I) of a uniform percentage (up 

24 to 10 percent) of compensation, and 

25 ‘‘(II) not to exceed $5,000, 


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1 for each employee who is eligible to partici2 pate in the arrangement and who has at 

3 least $5,000 of compensation from the em4 ployer for the year, and’’. 

5 (2) LIMITATION.—Subparagraph (A) of section 

6 408(p)(2) is amended by adding at the end the fol7 lowing: ‘‘The compensation taken into account under 

8 clause (iv) for any year shall not exceed the limita9 tion in effect for such year under section 

10 401(a)(17).’’. 

11 (3) OVERALL DOLLAR LIMIT ON CONTRIBU12 TIONS.—Paragraph (8) of section 408(p) is amended 

13 to read as follows: 

14 ‘‘(8) COORDINATION WITH MAXIMUM LIMITA15 TION.—In the case of any simple retirement ac16 count— 

17 ‘‘(A) subsection (a)(1) shall be applied by 

18 substituting for ‘the amount in effect for such 

19 taxable year under section 219(b)(1)(A)’ the 

20 following: ‘the sum of the dollar amount in ef21 fect under subsection (p)(2)(A)(ii), the em22 ployer contribution required under subsection 

23 (p)(2)(A)(iii) or (p)(2)(B)(i), whichever is appli24 cable, and a contribution which meets the reVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 quirement of subsection (p)(2)(A)(iv) with re2 spect to the employee’, and 

3 ‘‘(B) subsection (b)(2)(B) shall be applied 

4 by substituting for ‘the dollar amount in effect 

5 under section 219(b)(1)(A)’ the following: ‘the 

6 sum of the dollar amount in effect under sub7 section (p)(2)(A)(ii), the employer contribution 

8 required under subsection (p)(2)(A)(iii) or 

9 (p)(2)(B)(i), whichever is applicable, and a con10 tribution which meets the requirement of sub11 section (p)(2)(A)(iv) with respect to the em12 ployee’.’’. 

13 (4) ADJUSTMENT FOR INFLATION.—Paragraph 

14 (2) of section 408(p), as amended by this Act, is 

15 further amended by adding at the end the following 

16 new subparagraph: 

17 ‘‘(G) ADJUSTMENT FOR INFLATION.—In 

18 the case of taxable years beginning after De19 cember 31, 2024, the $5,000 amount in sub20 paragraph (A)(iv)(II) shall be increased by an 

21 amount equal to— 

22 ‘‘(i) such amount, multiplied by 

23 ‘‘(ii) the cost-of-living adjustment de24 termined under section 1(f)(3) for the cal25 endar year in which the taxable year beVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 gins, determined by substituting ‘2023’ for 

2 ‘2016’ in subparagraph (A)(ii) thereof. 

3 If any amount as adjusted under the preceding 

4 sentence is not a multiple of $100, such amount 

5 shall be rounded to the nearest multiple of 

6 $100.’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 408(p)(2)(A)(v), as redesignated by 

9 subsection (a), is amended by striking ‘‘or (iii)’’ and 

10 inserting ‘‘, (iii), or (iv)’’. 

11 (2) Section 401(k)(11)(B)(i) is amended by 

12 striking ‘‘and’’ at the end of subclause (II), by re13 designating subclause (III) as subclause (IV), and 

14 by inserting after subclause (II) the following new 

15 subclause: 

16 ‘‘(III) the employer may make 

17 nonelective contributions of a uniform 

18 percentage (up to 10 percent) of com19 pensation, not to exceed the amount 

20 in effect under section 

21 408(p)(2)(A)(iv)(II) in any year, for 

22 each employee who is eligible to par23 ticipate in the arrangement and who 

24 has at least $5,000 of compensation 

25 from the employer for the year, and’’. 


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1 (3) Section 401(k)(11)(B)(i)(IV), as redesig2 nated by paragraph (2), is amended by striking ‘‘or 

3 (II)’’ and inserting ‘‘, (II), or (III)’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2023. 

7 SEC. 107. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 

8 CONTRIBUTING TO A PLAN. 

9 (a) IN GENERAL.—Subparagraph (A) of section 

10 401(k)(4) is amended by inserting ‘‘(other than a de mini11 mis financial incentive provided to employees who elect to 

12 have the employer make contributions under the arrange13 ment in lieu of receiving cash)’’ after ‘‘any other benefit’’. 

14 (b) SECTION 403(b) PLANS.—Subparagraph (A) of 

15 section 403(b)(12), as amended by this Act, is further 

16 amended by adding at the end the following: ‘‘A plan shall 

17 not fail to satisfy clause (ii) solely by reason of offering 

18 a de minimis financial incentive for employees who elect 

19 to have the employer make contributions pursuant to a 

20 salary reduction agreement.’’. 

21 (c) EXEMPTION FROM PROHIBITED TRANSACTION

22 RULES.—Subsection (d) of section 4975 is amended by 

23 striking ‘‘or’’ at the end of paragraph (22)(I), by striking 

24 the period at the end of paragraph (23) and inserting ‘‘, 


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1 or’’, and by adding at the end the following new para2 graph: 

3 ‘‘(24) the provision of a de minimis financial in4 centive described in section 401(k)(4)(A) or 

5 403(b)(12)(A).’’. 

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

7 this section shall apply with respect to plan years begin8 ning after the date of the enactment of this Act. 

9 SEC. 108. INDEXING IRA CATCH-UP LIMIT. 

10 (a) IN GENERAL.—Subparagraph (C) of section 

11 219(b)(5) is amended by adding at the end the following 

12 new clause: 

13 ‘‘(iii) INDEXING OF CATCH-UP LIMITA14 TION.—In the case of any taxable year be15 ginning in a calendar year after 2022, the 

16 $1,000 amount under subparagraph (B)(ii) 

17 shall be increased by an amount equal to— 

18 ‘‘(I) such dollar amount, multi19 plied by 

20 ‘‘(II) the cost-of-living adjust21 ment determined under section 1(f)(3) 

22 for the calendar year in which the tax23 able year begins, determined by sub24 stituting ‘calendar year 2021’ for ‘calVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 endar year 2016’ in subparagraph 

2 (A)(ii) thereof. 

3 If any amount after adjustment under the 

4 preceding sentence is not a multiple of 

5 $100, such amount shall be rounded to the 

6 next lower multiple of $100.’’. 

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

8 this section shall apply to taxable years beginning after 

9 the date of the enactment of this Act. 

10 SEC. 109. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 60, 61, 

11 62, AND 63. 

12 (a) IN GENERAL.— 

13 (1) PLANS OTHER THAN SIMPLE PLANS.—Sec14 tion 414(v)(2)(B)(i) is amended by inserting the fol15 lowing before the period: ‘‘($10,000, in the case of 

16 an eligible participant who would attain age 60 but 

17 would not attain age 64 before the close of the tax18 able year)’’. 

19 (2) SIMPLE PLANS.—Section 414(v)(2)(B)(ii) is 

20 amended by inserting the following before the pe21 riod: ‘‘($5,000, in the case of an eligible participant 

22 who would attain age 60 but would not attain age 

23 64 before the close of the taxable year)’’. 

24 (b) COST-OF-LIVING ADJUSTMENTS.—Subparagraph 

25 (C) of section 414(v)(2) is amended by adding at the end 


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1 the following: ‘‘In the case of a year beginning after De2 cember 31, 2025, the Secretary shall adjust annually the 

3 $10,000 amount in subparagraph (B)(i) and the $5,000 

4 amount in subparagraph (B)(ii) for increases in the cost5 of-living at the same time and in the same manner as ad6 justments under the preceding sentence; except that the 

7 base period taken into account shall be the calendar quar8 ter beginning July 1, 2024.’’. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2024. 

12 SEC. 110. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE13 QUIREMENT FOR GOVERNMENTAL SECTION 

14 457(b) PLANS. 

15 (a) IN GENERAL.—Section 457(b)(4) is amended to 

16 read as follows: 

17 ‘‘(4) which provides that compensation— 

18 ‘‘(A) in the case of an eligible employer de19 scribed in subsection (e)(1)(A), will be deferred 

20 only if an agreement providing for such deferral 

21 has been entered into before the compensation 

22 is currently available to the individual, and 

23 ‘‘(B) in any other case, will be deferred for 

24 any calendar month only if an agreement proVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 viding for such deferral has been entered into 

2 before the beginning of such month,’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 111. TAX TREATMENT OF CERTAIN NONTRADE OR 

7 BUSINESS SEP CONTRIBUTIONS. 

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

9 4972(c)(6) is amended— 

10 (1) by striking ‘‘408(p)) or’’ and inserting 

11 ‘‘408(p)),’’; and 

12 (2) by inserting ‘‘, or a simplified employee pen13 sion (within the meaning of section 408(k))’’ after 

14 ‘‘401(k)(11))’’. 

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

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

18 SEC. 112. ELIMINATION OF ADDITIONAL TAX ON CORREC19 TIVE DISTRIBUTIONS OF EXCESS CONTRIBU20 TIONS. 

21 (a) IN GENERAL.—Subparagraph (A) of section 

22 72(t)(2) is amended— 

23 (1) by striking ‘‘or’’ at the end of clause (vii); 

24 (2) by striking the period at the end of clause 

25 (viii) and inserting ‘‘, or’’; and 


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1 (3) by inserting after clause (viii) the following 

2 new clause: 

3 ‘‘(ix) attributable to withdrawal of net 

4 income attributable to a contribution which 

5 is distributed pursuant to section 

6 408(d)(4).’’. 

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

8 this section shall apply to any determination of, or affect9 ing, liability for taxes, interest, or penalties which is made 

10 on or after the date of the enactment of this Act, without 

11 regard to whether the act (or failure to act) upon which 

12 the determination is based occurred before such date of 

13 enactment. Notwithstanding the preceding sentence, noth14 ing in the amendments made by this section shall be con15 strued to create an inference with respect to the law in 

16 effect prior to the effective date of such amendments. 

17 SEC. 113. EMPLOYER MAY RELY ON EMPLOYEE CERTI18 FYING THAT DEEMED HARDSHIP DISTRIBU19 TION CONDITIONS ARE MET. 

20 (a) CASH OR DEFERRED ARRANGEMENTS.—Section 

21 401(k)(14) is amended by adding at the end the following 

22 new subparagraph: 

23 ‘‘(C) EMPLOYEE CERTIFICATION.—In de24 termining whether a distribution is upon the 

25 hardship of an employee, the administrator of 


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1 the plan may rely on a written certification by 

2 the employee that the distribution is— 

3 ‘‘(i) on account of a financial need of 

4 a type which is deemed in regulations pre5 scribed by the Secretary to be an imme6 diate and heavy financial need, and 

7 ‘‘(ii) not in excess of the amount re8 quired to satisfy such financial need, and 

9 that the employee has no alternative means rea10 sonably available to satisfy such financial need. 

11 The Secretary may provide by regulations for 

12 exceptions to the rule of the preceding sentence 

13 in cases where the plan administrator has ac14 tual knowledge to the contrary of the employ15 ee’s certification, and for procedures for ad16 dressing cases of employee misrepresentation.’’. 

17 (b) 403(b) PLANS.— 

18 (1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) 

19 is amended by adding at the end the following new 

20 subparagraph: 

21 ‘‘(D) EMPLOYEE CERTIFICATION.—In de22 termining whether a distribution is upon the fi23 nancial hardship of an employee, the adminis24 trator of the plan may rely on a written certifiVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 cation by the employee that the distribution 

2 is— 

3 ‘‘(i) on account of a financial need of 

4 a type which is deemed in regulations pre5 scribed by the Secretary to be an imme6 diate and heavy financial need, and 

7 ‘‘(ii) not in excess of the amount re8 quired to satisfy such financial need, and 

9 that the employee has no alternative means rea10 sonably available to satisfy such financial need. 

11 The Secretary may provide by regulations for 

12 exceptions to the rule of the preceding sentence 

13 in cases where the plan administrator has ac14 tual knowledge to the contrary of the employ15 ee’s certification, and for procedures for ad16 dressing cases of employee misrepresentation.’’. 

17 (2) ANNUITY CONTRACTS.—Section 403(b)(11) 

18 is amended by adding at the end the following: ‘‘In 

19 determining whether a distribution is upon hardship 

20 of an employee, the administrator of the plan may 

21 rely on a written certification by the employee that 

22 the distribution is on account of a financial need of 

23 a type which is deemed in regulations prescribed by 

24 the Secretary to be an immediate and heavy finan25 cial need and is not in excess of the amount required 


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1 to satisfy such financial need, and that the employee 

2 has no alternative means reasonably available to sat3 isfy such financial need. The Secretary may provide 

4 by regulations for exceptions to the rule of the pre5 ceding sentence in cases where the plan adminis6 trator has actual knowledge to the contrary of the 

7 employee’s certification, and for procedures for ad8 dressing cases of employee misrepresentation.’’. 

9 (c) 457(b) PLAN.—Section 457(d) is amended by 

10 adding at the end the following new paragraph: 

11 ‘‘(4) PARTICIPANT CERTIFICATION.—In deter12 mining whether a distribution to a participant is 

13 made when the participant is faced with an unfore14 seeable emergency, the administrator of a plan 

15 maintained by an eligible employer described in sub16 section (e)(1)(A) may rely on a written certification 

17 by the participant that the distribution is— 

18 ‘‘(A) made when the participant is faced 

19 with an unforeseeable emergency of a type 

20 which is described in regulations prescribed by 

21 the Secretary as an unforeseeable emergency, 

22 and 

23 ‘‘(B) not in excess of the amount required 

24 to satisfy the emergency need, and 


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1 that the participant has no alternative means rea2 sonably available to satisfy such emergency need. 

3 The Secretary may provide by regulations for excep4 tions to the rule of the preceding sentence in cases 

5 where the plan administrator has actual knowledge 

6 to the contrary of the participant’s certification, and 

7 for procedures for addressing cases of participant 

8 misrepresentation.’’. 

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

10 this section shall apply to plan years beginning after the 

11 date of the enactment of this Act. 

12 SEC. 114. PENALTY-FREE WITHDRAWALS FROM RETIRE13 MENT PLANS FOR INDIVIDUALS IN CASE OF 

14 DOMESTIC ABUSE. 

15 (a) IN GENERAL.—Paragraph (2) of section 72(t), as 

16 amended by this Act, is further amended by adding at the 

17 end the following new subparagraph: 

18 ‘‘(J) DISTRIBUTIONS FROM RETIREMENT

19 PLAN IN CASE OF DOMESTIC ABUSE.— 

20 ‘‘(i) IN GENERAL.—Any eligible dis21 tribution to a domestic abuse victim. 

22 ‘‘(ii) LIMITATION.—The aggregate 

23 amount which may be treated as an eligi24 ble distribution to a domestic abuse victim 


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1 by any individual shall not exceed an 

2 amount equal to the lesser of— 

3 ‘‘(I) $10,000, or 

4 ‘‘(II) 50 percent of the present 

5 value of the nonforfeitable accrued 

6 benefit of the employee under the 

7 plan. 

8 ‘‘(iii) ELIGIBLE DISTRIBUTION TO A

9 DOMESTIC ABUSE VICTIM.—For purposes 

10 of this subparagraph— 

11 ‘‘(I) IN GENERAL.—A distribu12 tion shall be treated as an eligible dis13 tribution to a domestic abuse victim if 

14 such distribution is from an applicable 

15 eligible retirement plan and is made 

16 to an individual during the 1-year pe17 riod beginning on any date on which 

18 the individual is a victim of domestic 

19 abuse by a spouse or domestic part20 ner. 

21 ‘‘(II) DOMESTIC ABUSE.—The 

22 term ‘domestic abuse’ means physical, 

23 psychological, sexual, emotional, or 

24 economic abuse, including efforts to 

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1 date the victim, or to undermine the 

2 victim’s ability to reason independ3 ently, including by means of abuse of 

4 the victim’s child or another family 

5 member living in the household. 

6 ‘‘(iv) TREATMENT OF PLAN DISTRIBU7 TIONS.—If a distribution to an individual 

8 would (without regard to clause (ii)) be an 

9 eligible distribution to a domestic abuse 

10 victim, a plan shall not be treated as fail11 ing to meet any requirement of this title 

12 merely because the plan treats the dis13 tribution as an eligible distribution to a do14 mestic abuse victim, unless the aggregate 

15 amount of such distributions from all plans 

16 maintained by the employer (and any 

17 member of any controlled group which in18 cludes the employer, determined as pro19 vided in subparagraph (H)(iv)(II)) to such 

20 individual exceeds the limitation under 

21 clause (ii). 

22 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

23 REPAID.— 

24 ‘‘(I) IN GENERAL.—Any indi25 vidual who receives a distribution deVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 scribed in clause (i) may, at any time 

2 during the 3-year period beginning on 

3 the day after the date on which such 

4 distribution was received, make one or 

5 more contributions in an aggregate 

6 amount not to exceed the amount of 

7 such distribution to an applicable eli8 gible retirement plan of which such 

9 individual is a beneficiary and to 

10 which a rollover contribution of such 

11 distribution could be made under sec12 tion 402(c), 403(a)(4), 403(b)(8), 

13 408(d)(3), or 457(e)(16), as the case 

14 may be. 

15 ‘‘(II) LIMITATION ON CONTRIBU16 TIONS TO APPLICABLE ELIGIBLE RE17 TIREMENT PLANS OTHER THAN

18 IRAs.—The aggregate amount of con19 tributions made by an individual 

20 under subclause (I) to any applicable 

21 eligible retirement plan which is not 

22 an individual retirement plan shall not 

23 exceed the aggregate amount of eligi24 ble distributions to a domestic abuse 

25 victim which are made from such plan 


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1 to such individual. Subclause (I) shall 

2 not apply to contributions to any ap3 plicable eligible retirement plan which 

4 is not an individual retirement plan 

5 unless the individual is eligible to 

6 make contributions (other than those 

7 described in subclause (I)) to such ap8 plicable eligible retirement plan. 

9 ‘‘(III) TREATMENT OF REPAY10 MENTS OF DISTRIBUTIONS FROM AP11 PLICABLE ELIGIBLE RETIREMENT

12 PLANS OTHER THAN IRAS.—If a con13 tribution is made under subclause (I) 

14 with respect to an eligible distribution 

15 to a domestic abuse victim from an 

16 applicable eligible retirement plan 

17 other than an individual retirement 

18 plan, then the taxpayer shall, to the 

19 extent of the amount of the contribu20 tion, be treated as having received 

21 such distribution in an eligible rollover 

22 distribution (as defined in section 

23 402(c)(4)) and as having transferred 

24 the amount to the applicable eligible 

25 retirement plan in a direct trustee to 


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1 trustee transfer within 60 days of the 

2 distribution. 

3 ‘‘(IV) TREATMENT OF REPAY4 MENTS FOR DISTRIBUTIONS FROM

5 IRAS.—If a contribution is made 

6 under subclause (I) with respect to an 

7 eligible distribution to a domestic 

8 abuse victim from an individual retire9 ment plan, then, to the extent of the 

10 amount of the contribution, such dis11 tribution shall be treated as a dis12 tribution described in section 

13 408(d)(3) and as having been trans14 ferred to the applicable eligible retire15 ment plan in a direct trustee to trust16 ee transfer within 60 days of the dis17 tribution. 

18 ‘‘(vi) DEFINITION AND SPECIAL

19 RULES.—For purposes of this subpara20 graph: 

21 ‘‘(I) APPLICABLE ELIGIBLE RE22 TIREMENT PLAN.—The term ‘applica23 ble eligible retirement plan’ means an 

24 eligible retirement plan (as defined in 

25 section 402(c)(8)(B)) other than a deVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 fined benefit plan or a plan to which 

2 sections 401(a)(11) and 417 apply. 

3 ‘‘(II) EXEMPTION OF DISTRIBU4 TIONS FROM TRUSTEE TO TRUSTEE

5 TRANSFER AND WITHHOLDING

6 RULES.—For purposes of sections 

7 401(a)(31), 402(f), and 3405, an eli8 gible distribution to a domestic abuse 

9 victim shall not be treated as an eligi10 ble rollover distribution. 

11 ‘‘(III) DISTRIBUTIONS TREATED

12 AS MEETING PLAN DISTRIBUTION RE13 QUIREMENTS; SELF-CERTIFICATION.— 

14 Any distribution which the employee 

15 or participant certifies as being an eli16 gible distribution to a domestic abuse 

17 victim shall be treated as meeting the 

18 requirements of sections 

19 401(k)(2)(B)(i), 403(b)(7)(A)(i), 

20 403(b)(11), and 457(d)(1)(A).’’. 

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

22 this section shall apply to distributions made after the 

23 date of the enactment of this Act. 


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1 SEC. 115. AMENDMENTS TO INCREASE BENEFIT ACCRUALS 

2 UNDER PLAN FOR PREVIOUS PLAN YEAR AL3 LOWED UNTIL EMPLOYER TAX RETURN DUE 

4 DATE. 

5 (a) IN GENERAL.—Section 401(b) is amended by 

6 adding at the end the following new paragraph: 

7 ‘‘(3) RETROACTIVE PLAN AMENDMENTS THAT

8 INCREASE BENEFIT ACCRUALS.—If— 

9 ‘‘(A) an employer amends a stock bonus, 

10 pension, profit-sharing, or annuity plan to in11 crease benefits accrued under the plan effective 

12 as of any date during the immediately pre13 ceding plan year (other than increasing the 

14 amount of matching contributions (as defined 

15 in subsection (m)(4)(A))), 

16 ‘‘(B) such amendment would not otherwise 

17 cause the plan to fail to meet any of the re18 quirements of this subchapter, and 

19 ‘‘(C) such amendment is adopted before 

20 the time prescribed by law for filing the return 

21 of the employer for the taxable year (including 

22 extensions thereof) which includes the date de23 scribed in subparagraph (A), 

24 the employer may elect to treat such amendment as 

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

26 year in which the amendment is effective.’’. 


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

2 this section shall apply to plan years beginning after the 

3 date of the enactment of this Act. 

4 SEC. 116. RETROACTIVE FIRST YEAR ELECTIVE DEFER5 RALS FOR SOLE PROPRIETORS. 

6 (a) IN GENERAL.—Section 401(b)(2) is amended by 

7 adding at the end the following: ‘‘In the case of an indi8 vidual who owns the entire interest in an unincorporated 

9 trade or business, and who is the only employee of such 

10 trade or business, any elective deferrals (as defined in sec11 tion 402(g)(3)) under a qualified cash or deferred ar12 rangement to which the preceding sentence applies, which 

13 are made by such individual before the time for filing the 

14 return of such individual for the taxable year (determined 

15 without regard to any extensions) ending after or with the 

16 end of the plan’s first plan year, shall be treated as having 

17 been made before the end of such first plan year.’’. 

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

19 this section shall apply to plan years beginning after the 

20 date of the enactment of this Act. 

21 SEC. 117. TREASURY GUIDANCE ON ROLLOVERS. 

22 Not later than January 1, 2025, the Secretary of the 

23 Treasury or the Secretary’s delegate shall, to simplify, 

24 standardize, and facilitate the completion of direct roll25 overs from retirement plans and trustee-to-trustee transVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 fers from individual retirement plans (as defined in section 

2 7701(a)(37) of the Internal Revenue Code of 1986), de3 velop and release— 

4 (1) sample forms for direct rollovers of eligible 

5 rollover distributions from a retirement plan to an6 other retirement plan or to an individual retirement 

7 plan which— 

8 (A) are written in a manner calculated to 

9 be understood by the average person, and 

10 (B) can be used by both distributing retire11 ment plans and receiving retirement plans and 

12 individual retirement plans, and 

13 (2) sample forms for trustee-to-trustee trans14 fers of amounts from an individual retirement plan 

15 to another individual retirement plan or to a retire16 ment plan which— 

17 (A) are written in a manner calculated to 

18 be understood by the average person, and 

19 (B) can be used by both transferring indi20 vidual retirement plans and receiving retirement 

21 plans and individual retirement plans. 

22 SEC. 118. EXEMPTION FOR AUTOMATIC PORTABILITY 

23 TRANSACTIONS. 

24 (a) IN GENERAL.—Section 4975(d), as amended by 

25 this Act, is further amended— 


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1 (1) by striking ‘‘or’’ at the end of paragraph 

2 (23), 

3 (2) by striking the period at the end of para4 graph (24) and inserting ‘‘, or’’, and 

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

6 paragraph: 

7 ‘‘(25) the receipt of fees and compensation by 

8 the automatic portability provider in connection with 

9 an automatic portability transaction.’’. 

10 (b) DEFINITIONS.—Section 4975(f) is amended by 

11 adding at the end the following new paragraph: 

12 ‘‘(12) RULES RELATING TO AUTOMATIC PORT13 ABILITY TRANSACTIONS.— 

14 ‘‘(A) IN GENERAL.—For purposes of sub15 section (d)(25)— 

16 ‘‘(i) AUTOMATIC PORTABILITY TRANS17 ACTION.—An automatic portability trans18 action is a transfer of assets made— 

19 ‘‘(I) from an individual retire20 ment plan which is established on be21 half of an individual and to which 

22 amounts were transferred under sec23 tion 401(a)(31)(B)(i), 

24 ‘‘(II) to an employer-sponsored 

25 retirement plan described in clause 


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1 (iii), (iv), (v), or (vi) of section 

2 402(c)(8)(B) (other than a defined 

3 benefit plan) in which such individual 

4 is an active participant, and 

5 ‘‘(III) after such individual has 

6 been given advance notice of the 

7 transfer and has not affirmatively 

8 opted out of such transfer. 

9 ‘‘(ii) AUTOMATIC PORTABILITY PRO10 VIDER.—An automatic portability provider 

11 is a person that executes transfers de12 scribed in clause (i). 

13 ‘‘(B) CONDITIONS FOR AUTOMATIC PORT14 ABILITY TRANSACTIONS.—Subsection (d)(25) 

15 shall not apply to an automatic portability 

16 transaction unless the following requirements 

17 are satisfied: 

18 ‘‘(i) ACKNOWLEDGMENT OF FIDU19 CIARY STATUS.—An automatic portability 

20 provider shall acknowledge in writing, at 

21 such time and format as specified by the 

22 Secretary, that the provider is a fiduciary 

23 with respect to the individual retirement 

24 plan described in subparagraph (A)(i)(I). 


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1 ‘‘(ii) FEES.—The fees and compensa2 tion received by the automatic portability 

3 provider in connection with the automatic 

4 portability transaction (including any in5 crease in such fees or compensation) shall 

6 not exceed reasonable compensation and 

7 must be fully disclosed to and approved in 

8 writing in advance of the transaction by a 

9 plan fiduciary of the plan described in sub10 paragraph (A)(i)(II) which is independent 

11 of the automatic portability provider. 

12 ‘‘(iii) DATA USAGE.—The automatic 

13 portability provider shall not— 

14 ‘‘(I) market or sell data relating 

15 to the individual retirement plan de16 scribed in subparagraph (A)(i)(I), or 

17 ‘‘(II) use such data for any pur18 pose other than the administration of 

19 automatic portability transactions 

20 without the express consent of a plan 

21 fiduciary which is independent of the 

22 automatic portability provider after 

23 full disclosure by such provider of how 

24 such data will be used. 


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1 ‘‘(iv) OPEN PARTICIPATION.—The 

2 automatic portability provider shall offer 

3 automatic portability transactions on the 

4 same terms to any plan described in sub5 paragraph (A)(i)(II) regardless of whether 

6 the provider provides other services for 

7 such plan. 

8 ‘‘(v) PRE-TRANSACTION NOTICE.—At 

9 least 30 days in advance of an automatic 

10 portability transaction, the automatic port11 ability provider shall provide notice to the 

12 individual on whose behalf the individual 

13 retirement plan described in subparagraph 

14 (A)(i)(I) is established which includes— 

15 ‘‘(I) a description of the auto16 matic portability transaction and the 

17 fees which will be charged in connec18 tion with the transaction, 

19 ‘‘(II) a description of the individ20 ual’s right to affirmatively elect not to 

21 participate in the transaction, the pro22 cedures for such an election, and a 

23 telephone number at which the indi24 vidual can contact the automatic port25 ability provider, and 


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1 ‘‘(III) such other disclosures as 

2 the Secretary may require by regula3 tion. 

4 ‘‘(vi) POST-TRANSACTION NOTICE.— 

5 Not later than 3 business days after an 

6 automatic portability transaction, the auto7 matic portability provider shall provide no8 tice to the individual on whose behalf the 

9 individual retirement plan described in 

10 subparagraph (A)(i)(I) is established of— 

11 ‘‘(I) the actions taken by the 

12 automatic portability provider with re13 spect to the individual’s account, 

14 ‘‘(II) all relevant information re15 garding the location and amount of 

16 any transferred assets, 

17 ‘‘(III) a statement of fees 

18 charged against the account by the 

19 automatic portability provider or its 

20 affiliates in connection with the trans21 fer, 

22 ‘‘(IV) a telephone number at 

23 which the individual can contact the 

24 automatic portability provider, and 


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1 ‘‘(V) such other disclosures as 

2 the Secretary may require by regula3 tion. 

4 ‘‘(vii) NOTICE REQUIREMENTS.—The 

5 notices required under clauses (v) and (vi) 

6 shall be written in a manner calculated to 

7 be understood by the average intended re8 cipient and shall not include materially 

9 misleading statements. 

10 ‘‘(viii) TIMELINESS OF EXECUTION.— 

11 After liquidating the assets of an indi12 vidual retirement plan described in sub13 paragraph (A)(i)(I) to cash, an automatic 

14 portability provider shall transfer the ac15 count balance of such plan as soon as 

16 practicable to the plan described in sub17 paragraph (A)(i)(II). 

18 ‘‘(ix) RECORD RETENTION AND AU19 DITS.— 

20 ‘‘(I) IN GENERAL.—An automatic 

21 portability provider shall, for 6 years, 

22 maintain the records sufficient to 

23 demonstrate the terms of this sub24 paragraph have been met. 


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1 ‘‘(II) AUDITS.—An automatic 

2 portability provider shall conduct an 

3 annual audit, in accordance with regu4 lations promulgated by the Secretary, 

5 of automatic portability transactions 

6 occurring during the calendar year to 

7 demonstrate compliance with this sub8 paragraph, and shall submit such 

9 audit annually to the Secretary, in 

10 such form and manner as specified by 

11 the Secretary.’’. 

12 (c) REGULATORY AUTHORITY.—Not later than July 

13 1, 2023, the Secretary of the Treasury (or such Sec14 retary’s delegate) shall issue such regulations as may be 

15 necessary to carry out the purposes of the amendments 

16 made by this section, including regulations which— 

17 (1) require an automatic portability provider to 

18 provide a notice to individuals on whose behalf the 

19 individual retirement plan described in paragraph 

20 (12)(A)(i)(I) of section 4975(f) of the Internal Rev21 enue Code of 1986, as added by this section, is es22 tablished in advance of the notices specified in para23 graph (12)(B)(v) of such section, as so added, 

24 (2) restrict the receipt of third party compensa25 tion (other than a direct fee by an employer sponVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 soring a plan which is in lieu of a fee imposed on 

2 an individual retirement plan owner) by an auto3 matic portability provider in connection with an 

4 automatic portability transaction, 

5 (3) prohibit exculpatory provisions in an auto6 matic portability provider’s contracts or communica7 tions with individuals disclaiming or limiting its li8 ability in the event that an automatic portability 

9 transaction results in an improper transfer, 

10 (4) require an automatic portability provider to 

11 take actions necessary to reasonably ensure that 

12 participant and beneficiary data is current and accu13 rate, and 

14 (5) ensure that the appropriate participants 

15 and beneficiaries, in fact, receive all the required no16 tices and disclosures until the assets are transferred 

17 to a new retirement plan account. 

18 Any term used in this subsection which is used in para19 graph (12) of section 4975(f) of such Code, as added by 

20 this section, has the same meaning as when used in such 

21 paragraph. 

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

23 this section shall apply to transactions occurring after De24 cember 31, 2023. 


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1 SEC. 119. APPLICATION OF SECTION 415 LIMIT FOR CER2 TAIN EMPLOYEES OF RURAL ELECTRIC CO3 OPERATIVES. 

4 (a) IN GENERAL.—Section 415(b) is amended by 

5 adding at the end the following new paragraph: 

6 ‘‘(12) SPECIAL RULE FOR CERTAIN EMPLOYEES

7 OF RURAL ELECTRIC COOPERATIVES.— 

8 ‘‘(A) IN GENERAL.—Subparagraph (B) of 

9 paragraph (1) shall not apply to a participant 

10 in an eligible rural electric cooperative plan, ex11 cept in the case of a participant who was a 

12 highly compensated employee (as defined in sec13 tion 414(q)) of the employer maintaining such 

14 plan for the earlier of— 

15 ‘‘(i) the plan year in which the partici16 pant terminated employment with such 

17 employer, or 

18 ‘‘(ii) the plan year in which distribu19 tions commence under the plan with re20 spect to the participant, or 

21 for any of the 5 plan years immediately pre22 ceding such earlier plan year. 

23 ‘‘(B) ELIGIBLE RURAL ELECTRIC COOPER24 ATIVE PLAN.—For purposes of this para25 graph— 


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1 ‘‘(i) IN GENERAL.—The term ‘eligible 

2 rural electric cooperative plan’ means a 

3 plan maintained by more than 1 employer, 

4 if at least 85 percent of the employers 

5 maintaining the plan are rural cooperatives 

6 described in clause (i) or (ii) of section 

7 401(k)(7)(B) or are a national association 

8 of such a rural cooperative. 

9 ‘‘(ii) ELECTION.—An employer main10 taining an eligible rural cooperative plan 

11 may elect not to have subparagraph (A) 

12 apply. 

13 ‘‘(C) REGULATIONS.—The Secretary shall 

14 prescribe such regulations and other guidance 

15 as are necessary to limit the application of sub16 paragraph (A) such that it does not result in 

17 increased benefits for highly compensated em18 ployees.’’. 

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

20 this section shall apply to limitation years ending after the 

21 date of the enactment of this Act. 

22 SEC. 120. INSURANCE-DEDICATED EXCHANGE-TRADED 

23 FUNDS. 

24 (a) IN GENERAL.—Not later than the date which is 

25 7 years after the date of the enactment of this Act, the 


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1 Secretary of the Treasury (or the Secretary’s delegate) 

2 shall amend the regulation issued by the Department of 

3 the Treasury relating to ‘‘Income Tax; Diversification Re4 quirements for Variable Annuity, Endowment, and Life 

5 Insurance Contracts’’, 54 Fed. Reg. 8728 (March 2, 

6 1989), and make any necessary corresponding amend7 ments to other regulations, in order to facilitate the use 

8 of exchange-traded funds as investment options under 

9 variable contracts within the meaning of section 817(d) 

10 of the Internal Revenue Code of 1986, in accordance with 

11 subsections (b) and (c) of this section. 

12 (b) DESIGNATE CERTAIN AUTHORIZED PARTICI13 PANTS AND MARKET MAKERS AS ELIGIBLE INVESTORS.— 

14 The Secretary of the Treasury (or the Secretary’s dele15 gate) shall amend Treas. Reg. section 1.817–5(f)(3) to 

16 provide that satisfaction of the requirements in Treas. 

17 Reg. section 1.817–5(f)(2)(i) with respect to an exchange18 traded fund shall not be prevented by reason of beneficial 

19 interests in such a fund being held by 1 or more author20 ized participants or market makers. 

21 (c) DEFINE RELEVANT TERMS.—In amending Treas. 

22 Reg. section 1.817–5(f)(3) in accordance with subsection 

23 (b), the Secretary of the Treasury (or the Secretary’s dele24 gate) shall provide definitions consistent with the fol25 lowing: 


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1 (1) EXCHANGE-TRADED FUND.—The term ‘‘ex2 change-traded fund’’ means a regulated investment 

3 company, partnership, or trust— 

4 (A) that is registered with the Securities 

5 and Exchange Commission as an open-end in6 vestment company or a unit investment trust; 

7 (B) the shares of which can be purchased 

8 or redeemed directly from the fund only by an 

9 authorized participant; and 

10 (C) the shares of which are traded 

11 throughout the day on a national stock ex12 change at market prices that may or may not 

13 be the same as the net asset value of the 

14 shares. 

15 (2) AUTHORIZED PARTICIPANT.—The term 

16 ‘‘authorized participant’’ means a financial institu17 tion that is a member or participant of a clearing 

18 agency registered under section 17A(b) of the Secu19 rities Exchange Act of 1934 that enters into a con20 tractual relationship with an exchange-traded fund 

21 pursuant to which the financial institution is per22 mitted to purchase and redeem shares directly from 

23 the fund and to sell such shares to third parties, but 

24 only if the contractual arrangement or applicable law 

25 precludes the financial institution from— 


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1 (A) purchasing the shares for its own in2 vestment purposes rather than for the exclusive 

3 purpose of creating and redeeming such shares 

4 on behalf of third parties; and 

5 (B) selling the shares to third parties who 

6 are not market makers or otherwise described 

7 in Treas. Reg. section 1.817–5(f) (1) and (3). 

8 (3) MARKET MAKER.—The term ‘‘market 

9 maker’’ means a financial institution that is a reg10 istered broker or dealer under section 15(b) of the 

11 Securities Exchange Act of 1934 that maintains li12 quidity for an exchange-traded fund on a national 

13 stock exchange by being always ready to buy and sell 

14 shares of such fund on the market, but only if the 

15 financial institution is contractually or legally pre16 cluded from selling or buying such shares to or from 

17 persons who are not authorized participants or oth18 erwise described in Treas. Reg. section 1.817–5(f) 

19 (2) and (3). 

20 (d) EFFECTIVE DATE.—This section shall apply to 

21 segregated asset account investments made on or after the 

22 date which is 7 years after the date of the enactment of 

23 this Act. 


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1 SEC. 121. MODIFICATION OF AGE REQUIREMENT FOR 

2 QUALIFIED ABLE PROGRAMS. 

3 (a) IN GENERAL.—Section 529A(e) is amended by 

4 striking ‘‘age 26’’ each place it appears in paragraphs 

5 (1)(A) and (2)(A)(i)(II) and inserting ‘‘age 46’’. 

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

7 this section shall apply to taxable years beginning after 

8 December 31, 2025. 

9 SEC. 122. ASSIST SAVERS IN RECOVERING UNCLAIMED SAV10 INGS BONDS. 

11 Section 3105 of title 31, United States Code, is 

12 amended by adding at the end the following: 

13 ‘‘(f)(1) The Secretary shall provide each State, in dig14 ital or other electronic form (including digital images), 

15 with all information concerning any applicable savings 

16 bond which is registered to an owner with a last known 

17 address that is within such State, including the serial 

18 number of the bond, the name and last known address 

19 of such owner, and all records of any transactions involv20 ing such bond. 

21 ‘‘(2)(A) The Secretary shall prescribe such regula22 tions or other guidance as may be necessary to carry out 

23 the purposes of this subsection, including rules to— 

24 ‘‘(i) protect the privacy of the owners of 

25 applicable savings bonds; and 


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1 ‘‘(ii) ensure that any information provided 

2 to a State under this subsection shall be used 

3 solely to carry out the purposes of this sub4 section. 

5 ‘‘(B) Any regulations or guidance prescribed by 

6 the Secretary pursuant to subparagraph (A) shall 

7 not have the effect of prohibiting, restricting, or oth8 erwise preventing a State from obtaining all infor9 mation described in paragraph (1). 

10 ‘‘(3) Not later than 12 months after the date of en11 actment of this subsection, and annually thereafter, the 

12 Secretary shall submit to the Committee on Appropria13 tions and the Committee on Finance of the Senate a re14 port assessing all efforts to satisfy the requirement under 

15 paragraph (1). 

16 ‘‘(4) Any State that receives information described in 

17 paragraph (1) with respect to an applicable savings bond 

18 may use such information to locate the registered owner 

19 of such bond pursuant to the same standards and require20 ments as are applicable under the abandoned property 

21 rules and regulations of such State. 

22 ‘‘(5) For purposes of this subsection, the term ‘appli23 cable savings bond’ means a matured savings bond, and 

24 all payment of such bond, including interest, for which 

25 such bond— 


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1 ‘‘(A) was originally in paper, paperless, or elec2 tronic form; and 

3 ‘‘(B) has not been redeemed by the registered 

4 owner.’’. 

5 TITLE II—RETIREES 

6 SEC. 201. INCREASE IN AGE FOR REQUIRED BEGINNING 

7 DATE FOR MANDATORY DISTRIBUTIONS. 

8 (a) INCREASE IN AGE FOR REQUIRED BEGINNING

9 DATE.— 

10 (1) IN GENERAL.—Subclause (I) of section 

11 401(a)(9)(C)(i) is amended to read as follows: 

12 ‘‘(I) the first calendar year in 

13 which the employee attains the appli14 cable age for such calendar year, or’’. 

15 (2) SPECIAL RULE FOR OWNERS.—Subclause 

16 (I) of section 401(a)(9)(C)(ii) is amended by strik17 ing ‘‘in which the employee attains age 72’’ and in18 serting ‘‘described in clause (i)(I) with respect to the 

19 employee’’. 

20 (b) MANDATORY DISTRIBUTION AGE.—Paragraph 

21 (9) of section 401(a) is amended by inserting at the end 

22 the following new subparagraph: 

23 ‘‘(J) APPLICABLE AGE.—For purposes of 

24 this paragraph— 


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1 ‘‘(i) IN GENERAL.—The applicable age 

2 is— 

3 ‘‘(I) for calendar years before 

4 2032, age 72, and 

5 ‘‘(II) for calendar years after 

6 2031, age 75. 

7 ‘‘(ii) TRANSITION RULE.—If, as of a 

8 calendar year, an employee has not at9 tained the applicable age with respect to 

10 such year, such employee shall be treated 

11 as not having attained the applicable age 

12 under this paragraph for such year without 

13 regard to whether, in a previous calendar 

14 year, the employee had attained the appli15 cable age with respect to such previous cal16 endar year.’’. 

17 (c) SPOUSE BENEFICIARIES.—Subclause (I) of sec18 tion 401(a)(9)(B)(iv) is amended by striking ‘‘age 72’’ and 

19 inserting ‘‘the applicable age’’. 

20 (d) CONFORMING AMENDMENT.—Subsection (b) of 

21 section 408 is amended by striking ‘‘age 72’’ and inserting 

22 ‘‘the applicable age determined under section 401(a)(9)(J) 

23 with respect to such individual’’. 


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

2 this section shall apply to calendar years beginning after 

3 the date of the enactment of this Act. 

4 SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 

5 (a) IN GENERAL.—Not later than the date which is 

6 18 months after the date of the enactment of this Act, 

7 the Secretary of the Treasury (or the Secretary’s delegate) 

8 shall amend the regulation issued by the Department of 

9 the Treasury relating to ‘‘Longevity Annuity Contracts’’ 

10 (79 Fed. Reg. 37633 (July 2, 2014)), as follows: 

11 (1) REPEAL 25-PERCENT PREMIUM LIMIT.—The 

12 Secretary (or delegate) shall amend Q&A–17(b)(3) 

13 of Treas. Reg. section 1.401(a)(9)–6 and Q&A– 

14 12(b)(3) of Treas. Reg. section 1.408–8 to eliminate 

15 the requirement that premiums for qualifying lon16 gevity annuity contracts be limited to 25 percent of 

17 an individual’s account balance, and to make such 

18 corresponding changes to the regulations and related 

19 forms as are necessary to reflect the elimination of 

20 this requirement. 

21 (2) INCREASE DOLLAR LIMITATION.— 

22 (A) IN GENERAL.—The Secretary (or dele23 gate) shall amend Q&A–17(b)(2)(i) of Treas. 

24 Reg. section 1.401(a)(9)–6 and Q&A– 

25 12(b)(2)(i) of Treas. Reg. section 1.408–8 to 


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1 increase the dollar limitation on premiums for 

2 qualifying longevity annuity contracts from 

3 $125,000 to $200,000, and to make such cor4 responding changes to the regulations and re5 lated forms as are necessary to reflect this in6 crease in the dollar limitation. 

7 (B) ADJUSTMENTS FOR INFLATION.—The 

8 Secretary (or delegate) shall amend Q&A– 

9 17(d)(2)(i) of Treas. Reg. section 1.401(a)(9)– 

10 6 to provide that, in the case of calendar years 

11 beginning on or after January 1 of the second 

12 year following the year of enactment of this 

13 Act, the $200,000 dollar limitation (as in14 creased by subparagraph (A)) will be adjusted 

15 at the same time and in the same manner as 

16 the limits are adjusted under section 415(d) of 

17 the Internal Revenue Code of 1986, except that 

18 the base period shall be the calendar quarter 

19 beginning July 1 of the year of enactment of 

20 this Act, and any increase to such dollar limita21 tion which is not a multiple of $10,000 will be 

22 rounded to the next lowest multiple of $10,000. 

23 (3) FACILITATE JOINT AND SURVIVOR BENE24 FITS.—The Secretary (or delegate) shall amend 

25 Q&A–17(c) of Treas. Reg. section 1.401(a)(9)–6, 


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1 and make such corresponding changes to the regula2 tions and related forms as are necessary, to provide 

3 that, in the case of a qualifying longevity annuity 

4 contract which was purchased with joint and sur5 vivor annuity benefits for the individual and the in6 dividual’s spouse which were permissible under the 

7 regulations at the time the contract was originally 

8 purchased, a divorce occurring after the original 

9 purchase and before the annuity payments com10 mence under the contract will not affect the permis11 sibility of the joint and survivor annuity benefits or 

12 other benefits under the contract, or require any ad13 justment to the amount or duration of benefits pay14 able under the contract, provided that any qualified 

15 domestic relations order (within the meaning of sec16 tion 414(p) of the Internal Revenue Code of 1986) 

17 or, in the case of an arrangement not subject to sec18 tion 414(p) of such Code or section 206(d) of the 

19 Employee Retirement Income Security Act of 1974, 

20 any divorce or separation instrument (as defined in 

21 subsection (b))— 

22 (A) provides that the former spouse is en23 titled to the survivor benefits under the con24 tract; 


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1 (B) does not modify the treatment of the 

2 former spouse as the beneficiary under the con3 tract who is entitled to the survivor benefits; or 

4 (C) does not modify the treatment of the 

5 former spouse as the measuring life for the sur6 vivor benefits under the contract. 

7 (4) PERMIT SHORT FREE LOOK PERIOD.—The 

8 Secretary (or delegate) shall amend Q&A–17(a)(4) 

9 of Treas. Reg. section 1.401(a)(9)–6 to ensure that 

10 such Q&A does not preclude a contract from includ11 ing a provision under which an employee may re12 scind the purchase of the contract within a period 

13 not exceeding 90 days from the date of purchase. 

14 (b) DIVORCE OR SEPARATION INSTRUMENT.—For 

15 purposes of subsection (a)(2), the term ‘‘divorce or separa16 tion instrument’’ means— 

17 (1) a decree of divorce or separate maintenance 

18 or a written instrument incident to such a decree; 

19 (2) a written separation agreement; or 

20 (3) a decree (not described in paragraph (1)) 

21 requiring a spouse to make payments for the sup22 port or maintenance of the other spouse. 

23 (c) EFFECTIVE DATES, ENFORCEMENT, AND INTER24 PRETATIONS.— 

25 (1) EFFECTIVE DATES.— 


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1 (A) Paragraphs (1) and (2) of subsection 

2 (a) shall be effective with respect to contracts 

3 purchased or received in an exchange on or 

4 after the date of the enactment of this Act. 

5 (B) Paragraphs (3) and (4) of subsection 

6 (a) shall be effective with respect to contracts 

7 purchased or received in an exchange on or 

8 after July 2, 2014. 

9 (2) ENFORCEMENT AND INTERPRETATIONS.— 

10 Prior to the date on which the Secretary of the 

11 Treasury issues final regulations pursuant to sub12 section (a)— 

13 (A) the Secretary (or delegate) shall ad14 minister and enforce the law in accordance with 

15 subsection (a) and the effective dates in para16 graph (1) of this subsection; and 

17 (B) taxpayers may rely upon their reason18 able good faith interpretations of subsection (a). 

19 (d) REGULATORY SUCCESSOR PROVISION.—Any ref20 erence to a regulation under this section shall be treated 

21 as including a reference to any successor regulation there22 to. 


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1 SEC. 203. REMOVE REQUIRED MINIMUM DISTRIBUTION 

2 BARRIERS FOR LIFE ANNUITIES. 

3 (a) IN GENERAL.—Section 401(a)(9), as amended by 

4 this Act, is further amended by adding at the end the fol5 lowing new subparagraph: 

6 ‘‘(K) CERTAIN INCREASES IN PAYMENTS

7 UNDER A COMMERCIAL ANNUITY.—Nothing in 

8 this section shall prohibit a commercial annuity 

9 (within the meaning of section 3405(e)(6)) that 

10 is issued in connection with any eligible retire11 ment plan (within the meaning of section 

12 402(c)(8)(B), other than a defined benefit plan) 

13 from providing one or more of the following 

14 types of payments on or after the annuity start15 ing date: 

16 ‘‘(i) annuity payments that increase 

17 by a constant percentage, applied not less 

18 frequently than annually, at a rate that is 

19 less than 5 percent per year, 

20 ‘‘(ii) a lump sum payment that— 

21 ‘‘(I) results in a shortening of the 

22 payment period with respect to an an23 nuity or a full or partial commutation 

24 of the future annuity payments, pro25 vided that such lump sum is deter26 mined using reasonable actuarial 


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1 methods and assumptions, as deter2 mined in good faith by the issuer of 

3 the contract, or 

4 ‘‘(II) accelerates the receipt of 

5 annuity payments that are scheduled 

6 to be received within the ensuing 12 

7 months, regardless of whether such 

8 acceleration shortens the payment pe9 riod with respect to the annuity, re10 duces the dollar amount of benefits to 

11 be paid under the contract, or results 

12 in a suspension of annuity payments 

13 during the period being accelerated, 

14 ‘‘(iii) an amount which is in the na15 ture of a dividend or similar distribution, 

16 provided that the issuer of the contract de17 termines such amount based on a reason18 able comparison of the actuarial factors as19 sumed when calculating the initial annuity 

20 payments and the issuer’s experience with 

21 respect to those factors, or 

22 ‘‘(iv) a final payment upon death that 

23 does not exceed the excess of the total 

24 amount of the consideration paid for the 

25 annuity payments, less the aggregate 


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1 amount of prior distributions or payments 

2 from or under the contract.’’. 

3 (b) EFFECTIVE DATE.—This section shall take effect 

4 on the date of the enactment of this Act. 

5 SEC. 204. ELIMINATING A PENALTY ON PARTIAL 

6 ANNUITIZATION. 

7 (a) ELIMINATING A PENALTY ON PARTIAL

8 ANNUITIZATION.—The Secretary of the Treasury (or the 

9 Secretary’s delegate) shall amend the regulations under 

10 section 401(a)(9) of the Internal Revenue Code of 1986 

11 to provide that if an employee’s benefit is in the form of 

12 an individual account under a defined contribution plan, 

13 the plan may allow the employee to elect to have the 

14 amount required to be distributed from such account 

15 under such section for a year to be calculated as the excess 

16 of the total required amount for such year over the annu17 ity amount for such year. 

18 (b) DEFINITIONS.—For purposes of this section— 

19 (1) TOTAL REQUIRED AMOUNT.—The term 

20 ‘‘total required amount’’, with respect to a year, 

21 means the amount which would be required to be 

22 distributed under Treas. Reg. section 1.401(a)(9)–5 

23 (or any successor regulation) for the year, deter24 mined by treating the account balance as of the last 

25 valuation date in the immediately preceding calendar 


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1 year as including the value on that date of all annu2 ity contracts which were purchased with a portion of 

3 the account and from which payments are made in 

4 accordance with Treas. Reg. section 1.401(a)(9)–6. 

5 (2) ANNUITY AMOUNT.—The term ‘‘annuity 

6 amount’’, with respect to a year, is the total amount 

7 distributed in the year from all annuity contracts de8 scribed in paragraph (1). 

9 (c) CONFORMING REGULATORY AMENDMENTS.—The 

10 Secretary of the Treasury (or the Secretary’s delegate) 

11 shall amend the regulations under sections 403(b)(10), 

12 408(a)(6), 408(b)(3), and 457(d)(2) of the Internal Rev13 enue Code of 1986 to conform to the amendments de14 scribed in subsection (a). Such conforming amendments 

15 shall treat all individual retirement plans (as defined in 

16 section 7701(a)(37) of such Code) which an individual 

17 holds as the owner, or which an individual holds as a bene18 ficiary of the same decedent, as one such plan for purposes 

19 of the amendments described in subsection (a). Such con20 forming amendments shall also treat all contracts de21 scribed in section 403(b) of such Code which an individual 

22 holds as an employee, or which an individual holds as a 

23 beneficiary of the same decedent, as one such contract for 

24 such purposes. 


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1 (d) EFFECTIVE DATE.—The modifications and 

2 amendments required under subsections (a) and (c) shall 

3 be deemed to have been made as of the date of the enact4 ment of this Act, and as of such date— 

5 (1) all applicable laws shall be applied in all re6 spects as though the actions which the Secretary of 

7 the Treasury (or the Secretary’s delegate) is re8 quired to take under such subsections had been 

9 taken, and 

10 (2) until such time as such actions are taken, 

11 taxpayers may rely upon their reasonable good faith 

12 interpretations of this section. 

13 SEC. 205. REDUCTION IN EXCISE TAX ON CERTAIN ACCU14 MULATIONS IN QUALIFIED RETIREMENT 

15 PLANS. 

16 (a) IN GENERAL.—Section 4974(a) is amended by 

17 striking ‘‘50 percent’’ and inserting ‘‘25 percent’’. 

18 (b) REDUCTION IN EXCISE TAX ON FAILURES TO

19 TAKE REQUIRED MINIMUM DISTRIBUTIONS.—Section 

20 4974 is amended by adding at the end the following new 

21 subsection: 

22 ‘‘(e) REDUCTION OF TAX IN CERTAIN CASES.— 

23 ‘‘(1) REDUCTION.—In the case of a taxpayer 

24 who— 


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1 ‘‘(A) receives a distribution, during the 

2 correction window, of the amount which re3 sulted in imposition of a tax under subsection 

4 (a) from the same plan to which such tax re5 lates, and 

6 ‘‘(B) submits a return, during the correc7 tion window, reflecting such tax (as modified by 

8 this subsection), 

9 the first sentence of subsection (a) shall be applied 

10 by substituting ‘10 percent’ for ‘25 percent’. 

11 ‘‘(2) CORRECTION WINDOW.—For purposes of 

12 this subsection, the term ‘correction window’ means 

13 the period of time beginning on the date on which 

14 the tax under subsection (a) is imposed with respect 

15 to a shortfall of distributions from a plan described 

16 in subsection (a), and ending on the earliest of— 

17 ‘‘(A) the date of mailing a notice of defi18 ciency with respect to the tax imposed by sub19 section (a) under section 6212, 

20 ‘‘(B) the date on which the tax imposed by 

21 subsection (a) is assessed, or 

22 ‘‘(C) the last day of the second taxable 

23 year that begins after the end of the taxable 

24 year in which the tax under subsection (a) is 

25 imposed.’’. 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 SEC. 206. CLARIFICATION OF SUBSTANTIALLY EQUAL PERI5 ODIC PAYMENT RULE. 

6 (a) IN GENERAL.—Paragraph (4) of section 72(t) is 

7 amended by inserting at the end the following new sub8 paragraph: 

9 ‘‘(C) ROLLOVERS TO SUBSEQUENT

10 PLAN.—If— 

11 ‘‘(i) payments described in paragraph 

12 (2)(A)(iv) are being made from a qualified 

13 retirement plan, 

14 ‘‘(ii) a transfer or a rollover from such 

15 qualified retirement plan of all or a portion 

16 of the taxpayer’s benefit under the plan is 

17 made to another qualified retirement plan, 

18 and 

19 ‘‘(iii) distributions from the transferor 

20 and transferee plans would in combination 

21 continue to satisfy the requirements of 

22 paragraph (2)(A)(iv) if they had been 

23 made only from the transferor plan, 

24 such transfer or rollover shall not be treated as 

25 a modification under subparagraph (A)(ii), and 


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1 compliance with paragraph (2)(A)(iv) shall be 

2 determined on the basis of the combined dis3 tributions described in clause (iii).’’. 

4 (b) NONQUALIFIED ANNUITY CONTRACTS.—Para5 graph (3) of section 72(q) is amended— 

6 (1) by redesignating clauses (i) and (ii) of sub7 paragraph (B) as subclauses (I) and (II), and by 

8 moving such subclauses 2 ems to the right; 

9 (2) by redesignating subparagraphs (A) and 

10 (B) as clauses (i) and (ii), by moving such clauses 

11 2 ems to the right, and by adjusting the flush lan12 guage at the end accordingly; 

13 (3) by striking ‘‘PAYMENTS.—If’’ and inserting 

14 ‘‘PAYMENTS.— 

15 ‘‘(A) IN GENERAL.—If—’’; and 

16 (4) by adding at the end the following new sub17 paragraph: 

18 ‘‘(B) EXCHANGES TO SUBSEQUENT CON19 TRACTS.—If— 

20 ‘‘(i) payments described in paragraph 

21 (2)(D) are being made from an annuity 

22 contract, 

23 ‘‘(ii) an exchange of all or a portion of 

24 such contract for another contract is made 

25 under section 1035, and 


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1 ‘‘(iii) the aggregate distributions from 

2 the contracts involved in the exchange con3 tinue to satisfy the requirements of para4 graph (2)(D) as if the exchange had not 

5 taken place, 

6 such exchange shall not be treated as a modi7 fication under subparagraph (A)(ii), and com8 pliance with paragraph (2)(D) shall be deter9 mined on the basis of the combined distribu10 tions described in clause (iii).’’. 

11 (c) INFORMATION REPORTING.—Section 6724 is 

12 amended by inserting at the end the following new sub13 section: 

14 ‘‘(g) SPECIAL RULE FOR REPORTING CERTAIN ADDI15 TIONAL TAXES.—No penalty shall be imposed under sec16 tion 6721 or 6722 if— 

17 ‘‘(1) a person makes a return or report under 

18 section 6047(d) or 408(i) with respect to any dis19 tribution, 

20 ‘‘(2) such distribution is made following a roll21 over, transfer, or exchange described in section 

22 72(t)(4)(C) or section 72(q)(3)(C), 

23 ‘‘(3) in making such return or report the person 

24 relies upon a certification provided by the taxpayer 

25 that the distributions satisfy the requirements of 


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1 section 72(t)(4)(C)(iii) or section 72(q)(3)(B)(iii), as 

2 applicable, and 

3 ‘‘(4) such person does not have actual knowl4 edge that the distributions do not satisfy such re5 quirements.’’. 

6 (d) SAFE HARBOR FOR ANNUITY PAYMENTS.— 

7 (1) QUALIFIED RETIREMENT PLANS.—Subpara8 graph (A) of section 72(t)(2) is amended by adding 

9 at the end the following flush sentence: 

10 ‘‘For purposes of clause (iv), periodic payments 

11 shall not fail to be treated as substantially 

12 equal merely because they are amounts received 

13 as an annuity, and such periodic payments shall 

14 be deemed to be substantially equal if they are 

15 payable over a period described in clause (iv) 

16 and satisfy the requirements applicable to an17 nuity payments under section 401(a)(9).’’. 

18 (2) OTHER ANNUITY CONTRACTS.—Paragraph 

19 (2) of section 72(q) is amended by adding at the end 

20 the following flush sentence: 

21 ‘‘For purposes of subparagraph (D), periodic pay22 ments shall not fail to be treated as substantially 

23 equal merely because they are amounts received as 

24 an annuity, and such periodic payments shall be 

25 deemed to be substantially equal if they are payable 


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1 over a period described in subparagraph (D) and 

2 would satisfy the requirements applicable to annuity 

3 payments under section 401(a)(9) if such require4 ments applied.’’. 

5 (e) EFFECTIVE DATES.— 

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

7 subsections (a), (b), and (c) shall apply to transfers, 

8 rollovers, and exchanges occurring on or after the 

9 date of the enactment of this Act. 

10 (2) ANNUITY PAYMENTS.—The amendment 

11 made by subsection (d) shall apply to distributions 

12 commencing on or after the date of the enactment 

13 of this Act. 

14 (3) NO INFERENCE.—Nothing in the amend15 ments made by this section shall be construed to 

16 create an inference with respect to the law in effect 

17 prior to the effective date of such amendments. 

18 SEC. 207. RECOVERY OF RETIREMENT PLAN OVERPAY19 MENTS. 

20 (a) QUALIFICATION REQUIREMENTS.—Section 414 is 

21 amended by adding at the end the following new sub22 section: 

23 ‘‘(aa) SPECIAL RULES APPLICABLE TO BENEFIT

24 OVERPAYMENTS.— 


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1 ‘‘(1) IN GENERAL.—A plan shall not fail to be 

2 treated as described in clause (i), (ii), (iii), or (iv) 

3 of section 219(g)(5)(A) (and shall not fail to be 

4 treated as satisfying the requirements of section 

5 401(a) or 403) merely because— 

6 ‘‘(A) the plan fails to obtain payment from 

7 any participant, beneficiary, employer, plan 

8 sponsor, fiduciary, or other party on account of 

9 any inadvertent benefit overpayment made by 

10 the plan, or 

11 ‘‘(B) the plan sponsor amends the plan to 

12 increase past or future benefit payments to af13 fected participants and beneficiaries in order to 

14 adjust for prior inadvertent benefit overpay15 ments. 

16 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY17 MENTS AND RECOVERY FROM RESPONSIBLE

18 PARTY.—Paragraph (1) shall not fail to apply to a 

19 plan merely because, after discovering a benefit over20 payment, such plan— 

21 ‘‘(A) reduces future benefit payments to 

22 the correct amount provided for under the 

23 terms of the plan, or 

24 ‘‘(B) seeks recovery from the person or 

25 persons responsible for such overpayment. 


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1 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

2 Nothing in this subsection shall relieve an employer 

3 of any obligation imposed on it to make contribu4 tions to a plan to satisfy the minimum funding 

5 standards under sections 412 and 430 or to prevent 

6 or restore an impermissible forfeiture in accordance 

7 with section 411. 

8 ‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS.— 

9 Notwithstanding paragraph (1), a plan to which 

10 paragraph (1) applies shall observe any limitations 

11 imposed on it by section 401(a)(17) or 415. The 

12 plan may enforce such limitations using any method 

13 approved by the Secretary for recouping benefits 

14 previously paid or allocations previously made in ex15 cess of such limitations. 

16 ‘‘(5) COORDINATION WITH OTHER QUALIFICA17 TION REQUIREMENTS.—The Secretary may issue 

18 regulations or other guidance of general applicability 

19 specifying how benefit overpayments and their 

20 recoupment or non-recoupment from a participant or 

21 beneficiary shall be taken into account for purposes 

22 of satisfying any requirement applicable to a plan to 

23 which paragraph (1) applies.’’. 

24 (b) ROLLOVERS.—Section 402(c) is amended by add25 ing at the end the following new paragraph: 


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1 ‘‘(12) In the case of an inadvertent benefit 

2 overpayment from a plan to which section 

3 414(aa)(1) applies which is transferred to an eligible 

4 retirement plan by or on behalf of a participant or 

5 beneficiary— 

6 ‘‘(A) the portion of such overpayment with 

7 respect to which recoupment is not sought on 

8 behalf of the plan shall be treated as having 

9 been paid in an eligible rollover distribution if 

10 the payment would have been an eligible roll11 over distribution but for being an overpayment, 

12 and 

13 ‘‘(B) the portion of such overpayment with 

14 respect to which recoupment is sought on behalf 

15 of the plan shall be permitted to be returned to 

16 such plan and in such case shall be treated as 

17 an eligible rollover distribution transferred to 

18 such plan by the participant or beneficiary who 

19 received such overpayment (and the plans mak20 ing and receiving such transfer shall be treated 

21 as permitting such transfer).’’. 

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

23 this section shall apply to plan years beginning after the 

24 date of the enactment of this Act. 


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1 (d) CERTAIN ACTIONS BEFORE EFFECTIVE DATE.— 

2 Plans, fiduciaries, employers, and plan sponsors are enti3 tled to rely on a reasonable good faith interpretation of 

4 then existing administrative guidance for inadvertent ben5 efit overpayment recoupments and recoveries that com6 menced before the first day of the first plan year begin7 ning after the date of the enactment of this Act. 

8 SEC. 208. RETIREMENT SAVINGS LOST AND FOUND. 

9 (a) RETIREMENT SAVINGS LOST AND FOUND.— 

10 (1) ESTABLISHMENT.— 

11 (A) IN GENERAL.—Not later than 3 years 

12 after the date of the enactment of this Act, the 

13 Secretary of the Treasury, in consultation with 

14 the Secretary of Labor, the Secretary of Com15 merce, and the Director of the Pension Benefit 

16 Guaranty Corporation, shall establish an online 

17 searchable database (to be managed by the Sec18 retary of the Treasury in accordance with sec19 tion 7901 of the Internal Revenue Code of 

20 1986) to be known as the ‘‘Retirement Savings 

21 Lost and Found’’. The Retirement Savings 

22 Lost and Found shall— 

23 (i) allow an individual to search for 

24 information that enables the individual to 

25 locate the plan administrator of any plans 


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1 with respect to which the individual is or 

2 was a participant or beneficiary, and to 

3 provide contact information for the plan 

4 administrator of any plan described in sub5 paragraph (B); 

6 (ii) allow the Secretary of the Treas7 ury to assist such an individual in locating 

8 any plan of the individual; and 

9 (iii) allow the Secretary of the Treas10 ury to make any necessary changes to con11 tact information on record for the plan ad12 ministrator based on any changes to the 

13 plan due to merger or consolidation of the 

14 plan with any other plan, division of the 

15 plan into two or more plans, bankruptcy, 

16 termination, change in name of the plan, 

17 change in name or address of the plan ad18 ministrator, or other causes. 

19 The Retirement Savings Lost and Found estab20 lished under this paragraph shall include infor21 mation reported under section 7901 of such 

22 Code and other relevant information obtained 

23 by the Secretary of the Treasury. 

24 (B) PLANS DESCRIBED.—A plan described 

25 in this subparagraph is a plan to which the 


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1 vesting standards of section 411 of the Internal 

2 Revenue Code of 1986 apply. 

3 (2) ADMINISTRATION.—The Retirement Sav4 ings Lost and Found established under paragraph 

5 (1) shall provide individuals described in paragraph 

6 (1)(A) only with the ability to view contact informa7 tion for the plan administrator of any plan with re8 spect to which the individual is or was a participant 

9 or beneficiary, sufficient to allow the individual to lo10 cate the individual’s plan in order to recover any 

11 benefit owing to the individual under the plan. 

12 (3) SAFEGUARDING PARTICIPANT PRIVACY AND

13 SECURITY.— 

14 (A) IN GENERAL.—In establishing the Re15 tirement Savings Lost and Found under para16 graph (1), the Secretary of the Treasury, in 

17 consultation with the Secretary of Labor, the 

18 Secretary of Commerce, and the Director of the 

19 Pension Benefit Guaranty Corporation, shall 

20 take all necessary and proper precautions to en21 sure that individuals’ plan information main22 tained by the Retirement Savings Lost and 

23 Found is protected and that persons other than 

24 the individual cannot fraudulently claim the 

25 benefits to which any individual is entitled, and 


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1 to allow any individual to opt out of inclusion 

2 in the Retirement Savings Lost and Found at 

3 the election of the individual. 

4 (B) DISCLOSURE.—The Secretary of the 

5 Treasury may, through regulations or other 

6 guidance— 

7 (i) authorize disclosure to the agencies 

8 jointly administering the Retirement Sav9 ings Lost and Found of such return infor10 mation as is necessary to administer the 

11 Retirement Savings Lost and Found data12 base, but only to such employees whose of13 ficial duties with respect to the database 

14 require such disclosure, and 

15 (ii) authorize disclosure to plan par16 ticipants and beneficiaries of the contact 

17 information for the plan administrator of 

18 any plan with respect to which such indi19 viduals are or were a participant or bene20 ficiary. 

21 (4) SECRETARY.—Any reference in this sub22 section to the Secretary of the Treasury includes 

23 such Secretary’s delegate. 

24 (b) OFFICE OF THE RETIREMENT SAVINGS LOST

25 AND FOUND.— 


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1 (1) IN GENERAL.—Subtitle F is amended by 

2 adding at the end the following new chapter: 

3 ‘‘CHAPTER 81—OFFICE OF THE 

4 RETIREMENT SAVINGS LOST AND FOUND 

‘‘Sec. 7901. Office of the Retirement Savings Lost and Found. 

5 ‘‘SEC. 7901. OFFICE OF THE RETIREMENT SAVINGS LOST 

6 AND FOUND. 

7 ‘‘(a) ESTABLISHMENT; RESPONSIBILITIES OF OF8 FICE.— 

9 ‘‘(1) IN GENERAL.—Not later than 2 years 

10 after the date of the enactment of this section, the 

11 Secretary shall establish within the Department of 

12 the Treasury an Office of the Retirement Savings 

13 Lost and Found (in this section referred to as the 

14 ‘Office’). 

15 ‘‘(2) RESPONSIBILITIES OF OFFICE.—The Of16 fice shall— 

17 ‘‘(A) carry out subsection (b), 

18 ‘‘(B) maintain the Retirement Savings 

19 Lost and Found established under section 

20 208(a) of the Enhancing American Retirement 

21 Now Act, and 

22 ‘‘(C) perform an annual audit of plan in23 formation contained in the Retirement Savings 


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1 Lost and Found and ensure that such informa2 tion is current and accurate. 

3 ‘‘(b) CERTAIN NON-RESPONSIVE PARTICIPANTS EN4 TITLED TO SMALL BENEFITS.— 

5 ‘‘(1) GENERAL RULE.— 

6 ‘‘(A) TRANSFER TO THE OFFICE OF THE

7 RETIREMENT SAVINGS LOST AND FOUND.—The 

8 administrator of a plan which is not terminated 

9 and to which section 401(a)(31)(B) applies 

10 shall transfer to the Office the amount required 

11 to be transferred under section 

12 401(a)(31)(B)(iv) for a non-responsive partici13 pant. 

14 ‘‘(B) INFORMATION AND PAYMENT TO THE

15 OFFICE.—Upon making a transfer under sub16 paragraph (A), the plan administrator shall 

17 provide such information and certifications as 

18 the Office shall specify, including with respect 

19 to the transferred amount and the non-respon20 sive participant. 

21 ‘‘(C) INFORMATION REQUIREMENTS AFTER

22 TRANSFER.—In the event that, after a transfer 

23 is made under subparagraph (A), the relevant 

24 non-responsive participant contacts the plan ad25 ministrator or the plan administrator discovers 


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1 information that may assist the Office in locat2 ing the non-responsive participant, the plan ad3 ministrator shall notify and provide such infor4 mation as the Office shall specify to the Office. 

5 ‘‘(D) SEARCH AND PAYMENT BY THE OF6 FICE FOLLOWING TRANSFER.—The Office shall 

7 periodically, and upon receiving information de8 scribed in subparagraph (C), conduct a search 

9 for the non-responsive participant for whom the 

10 Office has received a transfer under subpara11 graph (A). Upon location of a non-responsive 

12 participant who claims benefits, the Office shall 

13 make a single payment to the non-responsive 

14 participant in an amount equal to the sum of— 

15 ‘‘(i) the amount transferred to the Of16 fice under subparagraph (A) for such par17 ticipant, and 

18 ‘‘(ii) any earnings on the amount de19 scribed in clause (i) 

20 ‘‘(2) DEFINITION.—For purposes of this sub21 section, the term ‘non-responsive participant’ means 

22 a participant or beneficiary of a plan described in 

23 paragraph (1)(A)— 


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1 ‘‘(A) who is entitled to a benefit subject to 

2 a mandatory transfer under section 

3 401(a)(31)(B)(iii), and 

4 ‘‘(B) for whom the plan has satisfied the 

5 conditions in section 401(a)(31)(B)(iv). 

6 ‘‘(3) REGULATORY AUTHORITY.—The Secretary 

7 shall prescribe such regulations as are necessary to 

8 carry out the purposes of this section, including 

9 rules relating to the amount payable to the Office 

10 and the amount to be paid by the Office. 

11 ‘‘(c) INFORMATION COLLECTION.—Within such pe12 riod after the end of a plan year as the Secretary may 

13 by regulations prescribe, the administrator of a plan to 

14 which the vesting standards of section 411 apply shall sub15 mit to the Office in such form as the Secretary may re16 quire— 

17 ‘‘(1) the information described in paragraphs 

18 (1) through (4) of section 6057(b), 

19 ‘‘(2) the information described in subpara20 graphs (A), (B), (E), and (F) of section 6057(a)(2), 

21 and 

22 ‘‘(3) such other information as the Secretary 

23 may require. 

24 ‘‘(d) EFFECTIVE DATE.—The requirements of sub25 sections (b) and (c) shall apply with respect to plan years 


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1 beginning after the second December 31 occurring after 

2 the date of the enactment of this section. 

3 ‘‘(e) ESTABLISHMENT OF FUND.— 

4 ‘‘(1) IN GENERAL.—A fund shall be established 

5 within the Treasury for the payment of benefits 

6 under subsection (b)(1)(D). Such fund shall be cred7 ited with the appropriate— 

8 ‘‘(A) amounts transferred to the Office of 

9 the Retirement Savings Lost and Found under 

10 subsection (b)(1)(A), and 

11 ‘‘(B) earnings on investments of the fund 

12 or on assets credited to the fund. 

13 ‘‘(2) INVESTMENT OF FUNDS.—Whenever the 

14 Secretary determines that the moneys of any fund 

15 are in excess of current needs, the Secretary may in16 vest such amounts as the Secretary determines ad17 visable in obligations issued or guaranteed by the 

18 United States.’’. 

19 (2) CONFORMING AMENDMENT.—The table of 

20 chapters for subtitle F is amended by adding at the 

21 end the following new item: 

‘‘CHAPTER 81—OFFICE OF THE RETIREMENT SAVINGS LOST AND FOUND’’. 

22 (c) MANDATORY TRANSFERS OF ROLLOVER DIS23 TRIBUTIONS.— 


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1 (1) CAP.—Sections 401(a)(31)(B)(ii) and 

2 411(a)(11)(A) are each amended by striking 

3 ‘‘$5,000’’ and inserting ‘‘$6,000’’. 

4 (2) DISTRIBUTION OF LARGER AMOUNTS TO IN5 DIVIDUAL RETIREMENT PLANS ONLY.—Section 

6 401(a)(31)(B)(i) is amended by adding at the end 

7 the following: ‘‘The Retirement Savings Lost and 

8 Found established by section 208 of the Enhancing 

9 American Retirement Now Act shall not be treated 

10 as a trustee or issuer which is eligible to receive such 

11 distributions.’’. 

12 (3) LESSER AMOUNTS.—Section 401(a)(31)(B) 

13 is amended by adding at the end the following new 

14 clauses: 

15 ‘‘(iii) TREATMENT OF LESSER

16 AMOUNTS.—In the case of a trust which is 

17 part of an eligible plan, such trust shall 

18 not be a qualified trust under this section 

19 unless such plan provides that, if a partici20 pant in the plan separates from the service 

21 covered by the plan and the nonforfeitable 

22 accrued benefit described in clause (ii) is 

23 not in excess of $1,000, the plan adminis24 trator shall (either separately or as part of 

25 the notice under section 402(f)) notify the 


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1 participant that the participant is entitled 

2 to such benefit or attempt to pay the ben3 efit directly to the participant. 

4 ‘‘(iv) TRANSFERS TO RETIREMENT

5 SAVINGS LOST AND FOUND.—If, after a 

6 plan administrator takes the action re7 quired under clause (iii), the participant 

8 does not— 

9 ‘‘(I) within 6 months of the noti10 fication under such clause, make an 

11 election under subparagraph (A) or 

12 elect to receive a distribution of the 

13 benefit directly, or 

14 ‘‘(II) accept any direct payment 

15 made under such clause within 6 

16 months of the attempted payment, 

17 the plan administrator shall transfer the 

18 amount of such benefit to the Office of the 

19 Retirement Savings Lost and Found in ac20 cordance with section 7901. 

21 ‘‘(v) INCOME TAX TREATMENT OF

22 TRANSFERS TO RETIREMENT SAVINGS

23 LOST AND FOUND.—For purposes of deter24 mining the income tax treatment of transVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 fers to the Office of the Retirement Sav2 ings Lost and Found under clause (iv)— 

3 ‘‘(I) such a transfer shall be 

4 treated as a transfer to an individual 

5 retirement plan under clause (i), and 

6 ‘‘(II) the distribution of such 

7 amounts by the Office of the Retire8 ment Savings Lost and Found shall 

9 be treated as a distribution from an 

10 individual retirement plan.’’. 

11 (4) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to vested benefits with 

13 respect to participants who separate from service 

14 connected to the plan in plan years beginning after 

15 the second December 31 occurring after the date of 

16 the enactment of this Act. 

17 (d) BETTER REPORTING FOR MANDATORY TRANS18 FERS.— 

19 (1) IN GENERAL.—Paragraph (2) of section 

20 6057(a) is amended— 

21 (A) in subparagraph (C)— 

22 (i) by striking ‘‘during such plan 

23 year’’ in clause (i) and inserting ‘‘during 

24 the plan year immediately preceding such 

25 plan year’’; 


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1 (ii) by adding ‘‘and’’ at the end of 

2 clause (i); and 

3 (iii) by striking clause (iii); 

4 (B) by redesignating subparagraph (E) as 

5 subparagraph (G); 

6 (C) by striking ‘‘and’’ at the end of sub7 paragraph (D); and 

8 (D) by inserting after subparagraph (D) 

9 the following new subparagraphs: 

10 ‘‘(E) the name and taxpayer identifying 

11 number of each participant or former partici12 pant in the plan— 

13 ‘‘(i) who, during the current plan year 

14 or any previous plan year, was reported 

15 under subparagraph (C), and with respect 

16 to whom the benefits described in subpara17 graph (C)(ii) were fully paid during the 

18 plan year, 

19 ‘‘(ii) with respect to whom any 

20 amount was distributed under section 

21 401(a)(31)(B) during the plan year, or 

22 ‘‘(iii) with respect to whom a deferred 

23 annuity contract was distributed during 

24 the plan year, 


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1 ‘‘(F) in the case of a participant or former 

2 participant to whom subparagraph (E) ap3 plies— 

4 ‘‘(i) in the case of a participant de5 scribed in clause (ii) thereof, the name and 

6 address of the designated trustee or issuer 

7 described in section 401(a)(31)(B)(i) and 

8 the account number of the individual re9 tirement plan to which the amount was 

10 distributed, and 

11 ‘‘(ii) in the case of a participant de12 scribed in clause (iii) thereof, the name 

13 and address of the issuer of such annuity 

14 contract and the contract or certificate 

15 number, and’’. 

16 (2) RULES RELATING TO DIRECT TRUSTEE-TO17 TRUSTEE TRANSFERS.— 

18 (A) IN GENERAL.—Paragraph (6) of sec19 tion 402(e) is amended— 

20 (i) by striking ‘‘TRANSFERS.—Any’’ 

21 and inserting ‘‘TRANSFERS.— 

22 ‘‘(A) IN GENERAL.—Any’’; and 

23 (ii) by adding at the end the following 

24 new subparagraph: 


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1 ‘‘(B) NOTIFICATION OF TRUSTEE.—In the 

2 case of a distribution under section 

3 401(a)(31)(B), the plan administrator shall no4 tify the designated trustee or issuer described 

5 in clause (i) thereof that the transfer is a man6 datory distribution required by such section.’’. 

7 (B) PENALTY.—Subsection (i) of section 

8 6652 is amended— 

9 (i) by striking ‘‘TO RECIPIENTS’’ in 

10 the heading and inserting ‘‘OR NOTIFICA11 TION’’; 

12 (ii) by striking ‘‘402(f),’’ and insert13 ing ‘‘402(f) or a notification as required by 

14 section 402(e)(6)(B),’’; and 

15 (iii) by striking ‘‘such written expla16 nation’’ and inserting ‘‘such written expla17 nation or notification’’. 

18 (C) REPORTS.—Subsection (i) of section 

19 408 is amended— 

20 (i) by redesignating subparagraphs 

21 (A) and (B) of paragraph (2) as clauses (i) 

22 and (ii), respectively, and by moving such 

23 clauses 2 ems to the right; 

24 (ii) by redesignating paragraphs (1) 

25 and (2) as subparagraphs (A) and (B), reVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00114 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 spectively, and by moving such subpara2 graphs 2 ems to the right; and 

3 (iii) by striking ‘‘as the Secretary pre4 scribes’’ in subparagraph (B)(ii), as so re5 designated, and all that follows through ‘‘a 

6 simple retirement account’’ and inserting 

7 ‘‘as the Secretary prescribes. 

8 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 

9 case of a simple retirement account’’; 

10 (iv) by striking ‘‘REPORTS.—The 

11 trustee of’’ and inserting ‘‘REPORTS.— 

12 ‘‘(1) IN GENERAL.—The trustee of’’; 

13 (v) by striking ‘‘under paragraph (2)’’ 

14 in paragraph (3), as redesignated by clause 

15 (iii), and inserting ‘‘under paragraph 

16 (1)(B)’’; and 

17 (vi) by inserting after paragraph 

18 (1)(B)(ii), as redesignated by the pre19 ceding clauses, the following new para20 graph: 

21 ‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 

22 of an account, contract, or annuity to which a trans23 fer under section 401(a)(31)(B) is made (including 

24 a transfer from the individual retirement plan to 

25 which the original transfer under such section was 


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1 made to another individual retirement plan), the re2 port required by this subsection for the year of the 

3 transfer and any year in which the information pre4 viously reported in subparagraph (B) changes 

5 shall— 

6 ‘‘(A) identify such transfer as a mandatory 

7 distribution required by such section, and 

8 ‘‘(B) include the name, address, and tax9 payer identifying number of the trustee or 

10 issuer of the individual retirement plan to which 

11 the amount is transferred.’’. 

12 (3) NOTIFICATION OF PARTICIPANTS UPON SEP13 ARATION.—Subsection (e) of section 6057 is amend14 ed by inserting ‘‘, and, with respect to any benefit 

15 of the individual subject to section 401(a)(31)(B), a 

16 notice of availability of, and the contact information 

17 for, the Retirement Savings Lost and Found estab18 lished under section 208(a) of the Enhancing Amer19 ican Retirement Now Act’’ before the period at the 

20 end of the second sentence. 

21 (4) EFFECTIVE DATE.—The amendments made 

22 by this subsection shall apply to distributions made 

23 in, and returns and reports relating to, years begin24 ning after the second December 31 occurring after 

25 the date of the enactment of this Act. 


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1 (e) REQUIREMENT OF ELECTRONIC FILING.— 

2 (1) IN GENERAL.—Paragraph (2) of section 

3 6011(e) is amended— 

4 (A) by redesignating subparagraphs (A) 

5 and (B) as clauses (i) and (ii), respectively, and 

6 by moving such clauses 2 ems to the right; 

7 (B) by striking ‘‘REGULATIONS.—In pre8 scribing’’ and inserting ‘‘REGULATIONS.— 

9 ‘‘(A) IN GENERAL.—In prescribing’’; and 

10 (C) by adding at the end the following new 

11 subparagraph: 

12 ‘‘(C) EXCEPTIONS.—Notwithstanding sub13 paragraph (A), the Secretary shall require re14 turns or reports required under— 

15 ‘‘(i) sections 6057, 6058, and 6059, 

16 and 

17 ‘‘(ii) sections 408(i), 6041, and 6047 

18 to the extent such return or report relates 

19 to the tax treatment of a distribution from 

20 a plan, account, contract, or annuity, 

21 to be filed on magnetic media, but only with re22 spect to persons who are required to file at 

23 least 50 returns during the calendar year which 

24 includes the first day of the plan year to which 

25 such returns or reports relate.’’. 


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1 (2) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to returns and reports 

3 relating to years beginning after the second Decem4 ber 31 occurring after the date of the enactment of 

5 this Act. 

6 SEC. 209. ROTH PLAN DISTRIBUTION RULES. 

7 (a) IN GENERAL.—Subsection (d) of section 402A is 

8 amended by adding at the end the following new para9 graph: 

10 ‘‘(5) MANDATORY DISTRIBUTION RULES NOT

11 TO APPLY BEFORE DEATH.—Notwithstanding sec12 tions 403(b)(10) and 457(d)(2), the following provi13 sions shall not apply to any designated Roth ac14 count: 

15 ‘‘(A) Section 401(a)(9)(A). 

16 ‘‘(B) The incidental death benefit require17 ments of section 401(a).’’. 

18 (b) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendment made by this section shall 

21 apply to taxable years beginning after December 31, 

22 2023. 

23 (2) SPECIAL RULE.—The amendment made by 

24 this section shall not apply to distributions which are 

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1 uary 1, 2024, but are permitted to be paid on or 

2 after such date. 

3 SEC. 210. ONE-TIME ELECTION FOR QUALIFIED CHARI4 TABLE DISTRIBUTION TO SPLIT-INTEREST 

5 ENTITY; INCREASE IN QUALIFIED CHARI6 TABLE DISTRIBUTION LIMITATION. 

7 (a) ONE-TIME ELECTION FOR QUALIFIED CHARI8 TABLE DISTRIBUTION TO SPLIT-INTEREST ENTITY.—Sec9 tion 408(d)(8) is amended by adding at the end the fol10 lowing new subparagraph: 

11 ‘‘(F) ONE-TIME ELECTION FOR QUALIFIED

12 CHARITABLE DISTRIBUTION TO SPLIT-INTEREST

13 ENTITY.— 

14 ‘‘(i) IN GENERAL.—A taxpayer may 

15 for a taxable year elect under this subpara16 graph to treat as meeting the requirement 

17 of subparagraph (B)(i) any distribution 

18 from an individual retirement account 

19 which is made directly by the trustee to a 

20 split-interest entity, but only if— 

21 ‘‘(I) an election is not in effect 

22 under this subparagraph for a pre23 ceding taxable year, 

24 ‘‘(II) the aggregate amount of 

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1 spect to which an election under this 

2 subparagraph is made does not exceed 

3 $50,000, and 

4 ‘‘(III) such distribution meets the 

5 requirements of clauses (iii) and (iv). 

6 ‘‘(ii) SPLIT-INTEREST ENTITY.—For 

7 purposes of this subparagraph, the term 

8 ‘split-interest entity’ means— 

9 ‘‘(I) a charitable remainder annu10 ity trust (as defined in section 

11 664(d)(1)), but only if such trust is 

12 funded exclusively by qualified chari13 table distributions, 

14 ‘‘(II) a charitable remainder 

15 unitrust (as defined in section 

16 664(d)(2)), but only if such unitrust 

17 is funded exclusively by qualified char18 itable distributions, or 

19 ‘‘(III) a charitable gift annuity 

20 (as defined in section 501(m)(5)), but 

21 only if such annuity is funded exclu22 sively by qualified charitable distribu23 tions and commences fixed payments 

24 of 5 percent or greater not later than 

25 1 year from the date of funding. 


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1 ‘‘(iii) CONTRIBUTIONS MUST BE OTH2 ERWISE DEDUCTIBLE.—A distribution 

3 meets the requirements of this clause only 

4 if— 

5 ‘‘(I) in the case of a distribution 

6 to a charitable remainder annuity 

7 trust or a charitable remainder 

8 unitrust, a deduction for the entire 

9 value of the remainder interest in the 

10 distribution for the benefit of a speci11 fied charitable organization would be 

12 allowable under section 170 (deter13 mined without regard to subsection 

14 (b) thereof and this paragraph), and 

15 ‘‘(II) in the case of a charitable 

16 gift annuity, a deduction in an 

17 amount equal to the amount of the 

18 distribution reduced by the value of 

19 the annuity described in section 

20 501(m)(5)(B) would be allowable 

21 under section 170 (determined with22 out regard to subsection (b) thereof 

23 and this paragraph). 


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1 ‘‘(iv) LIMITATION ON INCOME INTER2 ESTS.—A distribution meets the require3 ments of this clause only if— 

4 ‘‘(I) no person holds an income 

5 interest in the split-interest entity 

6 other than the individual for whose 

7 benefit such account is maintained, 

8 the spouse of such individual, or both, 

9 and 

10 ‘‘(II) the income interest in the 

11 split-interest entity is nonassignable. 

12 ‘‘(v) SPECIAL RULES.— 

13 ‘‘(I) CHARITABLE REMAINDER

14 TRUSTS.—Notwithstanding section 

15 664(b), distributions made from a 

16 trust described in subclause (I) or (II) 

17 of clause (ii) shall be treated as ordi18 nary income in the hands of the bene19 ficiary to whom the annuity described 

20 in section 664(d)(1)(A) or the pay21 ment described in section 

22 664(d)(2)(A) is paid. 

23 ‘‘(II) CHARITABLE GIFT ANNU24 ITIES.—Qualified charitable distribu25 tions made to fund a charitable gift 


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1 annuity shall not be treated as an in2 vestment in the contract for purposes 

3 of section 72(c).’’. 

4 (b) INFLATION ADJUSTMENT.—Section 408(d)(8), as 

5 amended by subsection (a), is further amended by adding 

6 at the end the following new subparagraph: 

7 ‘‘(G) INFLATION ADJUSTMENT.— 

8 ‘‘(i) IN GENERAL.—In the case of any 

9 taxable year beginning after 2023, each of 

10 the dollar amounts in subparagraphs (A) 

11 and (F) shall be increased by an amount 

12 equal to— 

13 ‘‘(I) such dollar amount, multi14 plied by 

15 ‘‘(II) the cost-of-living adjust16 ment determined under section 1(f)(3) 

17 for the calendar year in which the tax18 able year begins, determined by sub19 stituting ‘calendar year 2022’ for ‘cal20 endar year 2016’ in subparagraph 

21 (A)(ii) thereof. 

22 ‘‘(ii) ROUNDING.—If any dollar 

23 amount increased under clause (i) is not a 

24 multiple of $1,000, such dollar amount 


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1 shall be rounded to the nearest multiple of 

2 $1,000.’’. 

3 (c) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to distributions made in taxable 

5 years beginning after the date of the enactment of this 

6 Act. 

7 SEC. 211. EXCEPTION TO PENALTY ON EARLY DISTRIBU8 TIONS FROM QUALIFIED PLANS FOR INDIVID9 UALS WITH A TERMINAL ILLNESS. 

10 (a) IN GENERAL.—Section 72(t)(2), as amended by 

11 this Act, is further amended by adding at the end the fol12 lowing new subparagraph: 

13 ‘‘(K) TERMINAL ILLNESS.— 

14 ‘‘(i) IN GENERAL.—Distributions 

15 which are made to the employee who is a 

16 terminally ill individual on or after the 

17 date on which such employee has been cer18 tified by a physician as having a terminal 

19 illness. 

20 ‘‘(ii) DEFINITION.—For purposes of 

21 this subparagraph, the term ‘terminally ill 

22 individual’ has the same meaning given 

23 such term under section 101(g)(4)(A), ex24 cept that ‘84 months’ shall be substituted 

25 for ‘24 months’. 


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1 ‘‘(iii) DOCUMENTATION.—For pur2 poses of this subparagraph, an employee 

3 shall not be considered to be a terminally 

4 ill individual unless such employee fur5 nishes sufficient evidence to the plan ad6 ministrator in such form and manner as 

7 the Secretary may require.’’. 

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

9 this section shall apply to distributions made after the 

10 date of the enactment of this Act. 

11 SEC. 212. SURVIVING SPOUSE ELECTION TO BE TREATED 

12 AS EMPLOYEE. 

13 (a) IN GENERAL.—Section 401(a)(9)(B)(iv), as 

14 amended by this Act, is further amended to read as fol15 lows: 

16 ‘‘(iv) SPECIAL RULE FOR SURVIVING

17 SPOUSE OF EMPLOYEE.—If the designated 

18 beneficiary referred to in clause (iii)(I) is 

19 the surviving spouse of the employee and 

20 the surviving spouse elects the treatment 

21 in this clause— 

22 ‘‘(I) the regulations referred to in 

23 clause (iii)(II) shall treat the surviving 

24 spouse as if the surviving spouse were 

25 the employee, 


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1 ‘‘(II) the date on which the dis2 tributions are required to begin under 

3 clause (iii)(III) shall not be earlier 

4 than the date on which the employee 

5 would have attained the applicable 

6 age, and 

7 ‘‘(III) if the surviving spouse dies 

8 before the distributions to such spouse 

9 begin, this subparagraph shall be ap10 plied as if the surviving spouse is the 

11 employee. 

12 An election described in this clause shall be 

13 made at such time and in such manner as 

14 prescribed by the Secretary, shall include a 

15 timely notice to the plan administrator, 

16 and once made may not be revoked except 

17 with the consent of the Secretary.’’. 

18 (b) EXTENSION OF ELECTION OF AT LEAST AS RAP19 IDLY RULE.—The Secretary shall amend Q&A–5(a) of 

20 Treasury Regulation section 1.401(a)(9)-5 (or any suc21 cessor regulation thereto) to provide that if the surviving 

22 spouse is the employee’s sole designated beneficiary and 

23 the spouse elects treatment under section 

24 401(a)(9)(B)(iv), then the applicable distribution period 

25 for distribution calendar years after the distribution calVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 endar year including the employee’s date of death is deter2 mined under the uniform lifetime table. 

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

4 this section shall apply to calendar years beginning after 

5 December 31, 2023. 

6 SEC. 213. LONG-TERM CARE CONTRACTS PURCHASED WITH 

7 RETIREMENT PLAN DISTRIBUTIONS. 

8 (a) IN GENERAL.—Section 401(a) is amended by in9 serting after paragraph (38) the following new paragraph: 

10 ‘‘(39) QUALIFIED LONG-TERM CARE DISTRIBU11 TIONS.— 

12 ‘‘(A) IN GENERAL.—A trust forming part 

13 of a defined contribution plan shall not be 

14 treated as failing to constitute a qualified trust 

15 under this section solely by reason of allowing 

16 qualified long-term care distributions. 

17 ‘‘(B) QUALIFIED LONG-TERM CARE DIS18 TRIBUTION.—For purposes of this paragraph— 

19 ‘‘(i) IN GENERAL.—The term ‘quali20 fied long-term care distribution’ means so 

21 much of the distributions made during the 

22 taxable year as does not exceed, in the ag23 gregate, the lesser of— 

24 ‘‘(I) the amount paid by or as25 sessed to the participant during the 


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1 taxable year for or with respect to cer2 tified long-term care insurance for the 

3 participant or the participant’s spouse 

4 (or other family member of the partic5 ipant as provided by the Secretary by 

6 regulation), or 

7 ‘‘(II) $2,500. 

8 ‘‘(ii) ADJUSTMENT FOR INFLATION.— 

9 In the case of taxable years beginning 

10 after December 31, 2024, the $2,500 

11 amount in clause (i)(II) shall be increased 

12 by an amount equal to— 

13 ‘‘(I) such dollar amount, multi14 plied by 

15 ‘‘(II) the cost-of-living adjust16 ment determined under section 1(f)(3) 

17 for the calendar year in which the tax18 able year begins, determined by sub19 stituting ‘calendar year 2023’ for ‘cal20 endar year 2016’ in subparagraph 

21 (A)(ii) thereof. 

22 If any increase under the preceding sen23 tence is not a multiple of $100, such 

24 amount shall be rounded to the nearest 

25 multiple of $100. 


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1 ‘‘(C) CERTIFIED LONG-TERM CARE INSUR2 ANCE.—The term ‘certified long-term care in3 surance’ means— 

4 ‘‘(i) a qualified long-term care insur5 ance contract (as defined in section 

6 7702B(b)) covering qualified long-term 

7 care services (as defined in section 

8 7702B(c)), 

9 ‘‘(ii) coverage of the risk that an in10 sured individual would become a chron11 ically ill individual (within the meaning of 

12 section 101(g)(4)(B)) under a rider or 

13 other provision of a life insurance contract 

14 which satisfies the requirements of section 

15 101(g)(3) (determined without regard to 

16 subparagraph (D) thereof), or 

17 ‘‘(iii) coverage of qualified long-term 

18 care services (as so defined) under a rider 

19 or other provision of an insurance or annu20 ity contract which is treated as a separate 

21 contract under section 7702B(e) and satis22 fies the requirements of section 7702B(g), 

23 if such coverage provides meaningful financial 

24 assistance in the event the insured needs home25 based or nursing home care. For purposes of 


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1 the preceding sentence, coverage shall not be 

2 deemed to provide meaningful financial assist3 ance unless benefits are adjusted for inflation 

4 and consumer protections are provided, includ5 ing protection in the event the coverage is ter6 minated. 

7 ‘‘(D) DISTRIBUTIONS MUST OTHERWISE

8 BE INCLUDIBLE.—Rules similar to the rules of 

9 section 402(l)(3) shall apply for purposes of 

10 this paragraph. 

11 ‘‘(E) LONG-TERM CARE PREMIUM STATE12 MENT.— 

13 ‘‘(i) IN GENERAL.—No distribution 

14 shall be treated as a qualified long-term 

15 care distribution unless a long-term care 

16 premium statement with respect to the 

17 participant has been filed with the plan. 

18 ‘‘(ii) LONG-TERM CARE PREMIUM

19 STATEMENT.—For purposes of this para20 graph, a long-term care premium state21 ment is a statement provided by the issuer 

22 of long-term care coverage, upon request 

23 by the owner of such coverage, which in24 cludes— 


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1 ‘‘(I) the name and taxpayer iden2 tification number of such issuer, 

3 ‘‘(II) a statement that the cov4 erage is certified long-term care insur5 ance, 

6 ‘‘(III) identification of the partic7 ipant as the owner of such coverage, 

8 ‘‘(IV) identification of the indi9 vidual covered and such individual’s 

10 relationship to the participant, 

11 ‘‘(V) the premiums owed for the 

12 coverage for the calendar year, and 

13 ‘‘(VI) such other information as 

14 the Secretary may require. 

15 ‘‘(iii) FILING WITH SECRETARY.—A 

16 long-term care premium statement will be 

17 accepted only if the issuer has completed a 

18 disclosure to the Secretary for the specific 

19 coverage product to which the statement 

20 relates. Such disclosure shall identify the 

21 issuer, type of coverage, and such other in22 formation as the Secretary may require 

23 which is included in the filing of the prod24 uct with the applicable State authority.’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 401(k)(2)(B)(i) is amended by 

2 striking ‘‘or’’ at the end of subclause (V), by adding 

3 ‘‘or’’ at the end of subclause (VI), and by adding at 

4 the end the following new subclause: 

5 ‘‘(VII) as provided in section 

6 401(a)(39),’’. 

7 (2) Section 403(a) is amended by adding at the 

8 end the following new paragraph: 

9 ‘‘(6) QUALIFIED LONG-TERM CARE DISTRIBU10 TIONS.—An annuity contract shall not fail to be sub11 ject to this subsection solely by reason of allowing 

12 distributions to which section 401(a)(39) applies.’’. 

13 (3) Section 403(b)(11) is amended by striking 

14 ‘‘or’’ at the end of subparagraph (C), by striking the 

15 period at the end of subparagraph (D) and inserting 

16 ‘‘, or’’, and by inserting after subparagraph (D) the 

17 following new subparagraph: 

18 ‘‘(E) for distributions to which section 

19 401(a)(39) applies.’’. 

20 (4) Section 457(d)(1)(A) is amended by strik21 ing ‘‘or’’ at the end of clause (iii), by striking the 

22 comma at the end of clause (iv) and inserting ‘‘, or’’, 

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

24 ‘‘(v) as provided in section 

25 401(a)(39),’’. 


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1 (c) EXEMPTION FROM ADDITIONAL TAX ON EARLY

2 DISTRIBUTIONS.—Section 72(t)(2), as amended by this 

3 Act, is further amended by adding at the end the following 

4 new subparagraph: 

5 ‘‘(L) QUALIFIED LONG-TERM CARE DIS6 TRIBUTIONS.— 

7 ‘‘(i) IN GENERAL.—Any qualified 

8 long-term care distribution which meets 

9 the requirements of section 401(a)(39). 

10 ‘‘(ii) EXCEPTION.—If the individual 

11 covered by the long-term care coverage to 

12 which such distribution relates is the 

13 spouse of the participant in the plan, 

14 clause (i) shall apply only if the participant 

15 and the participant’s spouse file a joint re16 turn. 

17 ‘‘(iii) EXEMPTION OF DISTRIBUTIONS

18 FROM TRUSTEE TO TRUSTEE TRANSFER

19 AND WITHHOLDING RULES.—For purposes 

20 of sections 401(a)(31), 402(f), and 3405, a 

21 qualified long-term care distribution shall 

22 not be treated as an eligible rollover dis23 tribution.’’. 

24 (d) REPORTING.— 


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1 (1) IN GENERAL.—Subpart B of part III of 

2 subchapter A of chapter 61 is amended by adding at 

3 the end the following new section: 

4 ‘‘SEC. 6050Z. REPORTS RELATING TO LONG-TERM CARE 

5 PREMIUM STATEMENTS. 

6 ‘‘(a) REQUIREMENT OF REPORTING.—Any issuer of 

7 certified long-term care insurance (as defined in section 

8 401(a)(39)(C)) who provides a long-term care premium 

9 statement to any purchaser pursuant to section 

10 401(a)(39)(E) for a calendar year, shall make a return 

11 not later than February 1 of the succeeding calendar year, 

12 according to forms or regulations prescribed by the Sec13 retary, setting forth with respect to each such purchaser— 

14 ‘‘(1) the name and taxpayer identification num15 ber of such issuer, 

16 ‘‘(2) a statement that the coverage is certified 

17 long-term care insurance as defined in section 

18 401(a)(39)(C), 

19 ‘‘(3) the name of the owner of such coverage, 

20 ‘‘(4) identification of the individual covered and 

21 such individual’s relationship to the owner, 

22 ‘‘(5) the premiums paid for the coverage for the 

23 calendar year, and 

24 ‘‘(6) such other information as the Secretary 

25 may require. 


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1 ‘‘(b) STATEMENT TO BE FURNISHED TO PERSONS

2 WITH RESPECT TO WHOM INFORMATION IS REQUIRED.— 

3 Every person required to make a return under subsection 

4 (a) shall furnish to each individual whose name is required 

5 to be set forth in such return a written statement show6 ing— 

7 ‘‘(1) the name, address, and phone number of 

8 the information contact of the issuer of the contract 

9 or coverage, and 

10 ‘‘(2) the aggregate amount of premiums and 

11 charges paid under the contract or coverage covering 

12 the insured individual during the calendar year. 

13 The written statement required under the preceding sen14 tence shall be furnished to the individual or individuals 

15 on or before January 31 of the year following the calendar 

16 year for which the return required under subsection (a) 

17 was required to be made. 

18 ‘‘(c) CONTRACTS OR COVERAGE COVERING MORE

19 THAN ONE INSURED.—In the case of contracts or cov20 erage covering more than one insured, the return and 

21 statement required by subsections (a) and (b) shall iden22 tify only the portion of the premium that is properly allo23 cable to the insured in respect of whom the return or 

24 statement is made. 


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1 ‘‘(d) STATEMENT TO BE FURNISHED ON RE2 QUEST.—If any individual to whom a return is required 

3 to be furnished under subsection (b) requests that such 

4 a return be furnished at any time before the close of the 

5 calendar year, the person required to make the return 

6 under subsection (b) shall comply with such request and 

7 shall furnish to the Secretary at such time a copy of the 

8 return so provided.’’. 

9 (2) PENALTIES.—Section 6724(d) is amend10 ed— 

11 (A) in paragraph (1)(B), by adding ‘‘or’’ 

12 at the end of clause (xxvii) and by inserting 

13 after such clause the following new clause: 

14 ‘‘(xxviii) section 6050Z (relating to re15 ports relating to long-term care premium 

16 statements), and’’, and 

17 (B) in paragraph (2)— 

18 (i) by redesignating subparagraph 

19 (JJ), relating to section 6050Y, as sub20 paragraph (KK) and moving such subpara21 graph to the position immediately after 

22 subparagraph (JJ), relating to section 

23 6226(a)(2), 

24 (ii) by striking ‘‘or’’ at the end of sub25 paragraph (II), 


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1 (iii) by striking the period at the end 

2 of subparagraph (JJ), relating to section 

3 6226(a)(2), and inserting a comma, 

4 (iv) by striking the period at the end 

5 of subparagraph (KK), as so redesignated, 

6 and inserting ‘‘, or’’, and 

7 (v) by inserting after subparagraph 

8 (KK), as so redesignated, the following 

9 new subparagraph: 

10 ‘‘(LL) section 6050Z (relating to reports 

11 relating to long-term care premium state12 ments).’’. 

13 (3) CLERICAL AMENDMENT.—The table of sec14 tions for subpart B of part III of subchapter A of 

15 chapter 61 is amended by adding after the item re16 lating to section 6050Y the following new item: 

‘‘Sec. 6050Z. Reports relating to long-term care premium statements.’’. 

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

18 this section shall apply to distributions made after the 

19 date which is 3 years after the date of the enactment of 

20 this Act. 

21 (f) DISCLOSURE TO TREASURY OF LONG-TERM CARE

22 INSURANCE PRODUCTS.—The Secretary of the Treasury 

23 (or the Secretary’s delegate) shall issue such forms and 

24 guidance as are necessary to collect the filing required by 


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1 section 401(a)(39)(E)(iii) of the Internal Revenue Code 

2 of 1986, as added by this section. 

3 (g) TREASURY WEBSITE.—The Secretary of the 

4 Treasury (or the Secretary’s delegate) shall maintain a 

5 website that discloses information regarding long-term 

6 care insurance policies, including common policy features, 

7 factors to consider in selecting coverage levels, consumer 

8 protections, tax rules for premiums and benefits, and the 

9 special tax and distribution rules applicable to certified 

10 long-term care insurance (as defined in section 

11 401(a)(39)(C) of the Internal Revenue Code of 1986). 

12 Such website shall also identify issuers of certified long13 term care insurance (as so defined) by State, issuer con14 tact information, and other information specific to an 

15 issuer and its long-term care insurance which is included 

16 in the issuer’s filing for such insurance with the applicable 

17 State authority and disclosed to the Secretary. 

18 TITLE III—PUBLIC SAFETY 

19 OFFICERS AND MILITARY 

20 SEC. 301. MILITARY SPOUSE RETIREMENT PLAN ELIGI21 BILITY CREDIT FOR SMALL EMPLOYERS. 

22 (a) IN GENERAL.—Subpart D of part IV of sub23 chapter A of chapter 1 is amended by adding at the end 

24 the following new section: 


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1 ‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGI2 BILITY CREDIT FOR SMALL EMPLOYERS. 

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

4 the case of any eligible small employer, the military spouse 

5 retirement plan eligibility credit determined under this 

6 section for any taxable year is an amount equal to the 

7 sum of— 

8 ‘‘(1) $200 with respect to each military spouse 

9 who is an employee of such employer and who is eli10 gible to participate in an eligible defined contribu11 tion plan of such employer at any time during such 

12 taxable year, plus 

13 ‘‘(2) so much of the contributions made by such 

14 employer to all such plans with respect to such em15 ployee during such taxable year as do not exceed 

16 $300. 

17 ‘‘(b) LIMITATION.—An individual shall only be taken 

18 into account as a military spouse under subsection (a) for 

19 the taxable year which includes the date on which such 

20 individual began participating in the eligible defined con21 tribution plan of the employer and the 2 succeeding tax22 able years. 

23 ‘‘(c) ELIGIBLE SMALL EMPLOYER.—For purposes of 

24 this section, the term ‘eligible small employer’ means an 

25 eligible employer (as defined in section 408(p)(2)(C)(i)(I). 


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1 ‘‘(d) MILITARY SPOUSE.—For purposes of this sec2 tion— 

3 ‘‘(1) IN GENERAL.—The term ‘military spouse’ 

4 means, with respect to any employer, any individual 

5 who is married (within the meaning of section 7703 

6 as of the first date that the employee is employed by 

7 the employer) to an individual who is a member of 

8 the uniformed services (as defined section 101(a)(5) 

9 of title 10, United States Code). For purposes of 

10 this section, an employer may rely on an employee’s 

11 certification that such employee’s spouse is a mem12 ber of the uniformed services if such certification 

13 provides the name, rank, and service branch of such 

14 spouse. 

15 ‘‘(2) EXCLUSION OF HIGHLY COMPENSATED

16 EMPLOYEES.—With respect to any employer, the 

17 term ‘military spouse’ shall not include any indi18 vidual if such individual is a highly compensated em19 ployee of such employer (within the meaning of sec20 tion 414(q)). 

21 ‘‘(e) ELIGIBLE DEFINED CONTRIBUTION PLAN.— 

22 For purposes of this section, the term ‘eligible defined con23 tribution plan’ means, with respect to any eligible small 

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1 tion 414(i)) of such employer if, under the terms of such 

2 plan— 

3 ‘‘(1) military spouses employed by such em4 ployer are eligible to participate in such plan not 

5 later than the date which is 2 months after the date 

6 on which such individual begins employment with 

7 such employer, and 

8 ‘‘(2) military spouses who are eligible to partici9 pate in such plan— 

10 ‘‘(A) are immediately eligible to receive an 

11 amount of employer contributions under such 

12 plan which is not less the amount of such con13 tributions that a similarly situated participant 

14 who is not a military spouse would be eligible 

15 to receive under such plan after 2 years of serv16 ice, and 

17 ‘‘(B) immediately have a nonforfeitable 

18 right to the employee’s accrued benefit derived 

19 from employer contributions under such plan. 

20 ‘‘(f) AGGREGATION RULE.—All persons treated as a 

21 single employer under subsection (b), (c), (m), or (o) of 

22 section 414 shall be treated as one employer for purposes 

23 of this section.’’. 

24 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI25 NESS CREDIT.—Section 38(b) is amended by striking 


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1 ‘‘plus’’ at the end of paragraph (32), by striking the period 

2 at the end of paragraph (33) and inserting ‘‘, plus’’, and 

3 by adding at the end the following new paragraph: 

4 ‘‘(34) in the case of an eligible small employer 

5 (as defined in section 45U(c)), the military spouse 

6 retirement plan eligibility credit determined under 

7 section 45U(a).’’. 

8 (c) SPECIFIED CREDIT FOR PURPOSES OF CER9 TIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.— 

10 Section 3511(d)(2) is amended by redesignating subpara11 graphs (F), (G), and (H) as subparagraphs (G), (H), and 

12 (I), respectively, and by inserting after subparagraph (E) 

13 the following new subparagraph: 

14 ‘‘(F) section 45U (military spouse retire15 ment plan eligibility credit),’’. 

16 (d) CLERICAL AMENDMENT.—The table of sections 

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

18 is amended by adding at the end the following new item: 

‘‘Sec. 45U. Military spouse retirement plan eligibility credit for small employers.’’. 

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

20 this section shall apply to taxable years beginning after 

21 the date of the enactment of this Act. 

22 SEC. 302. DISTRIBUTIONS TO FIREFIGHTERS. 

23 (a) IN GENERAL.—Subparagraph (A) of section 

24 72(t)(10) is amended by striking ‘‘414(d))’’ and inserting 


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1 ‘‘414(d)) or a distribution from a plan described in clause 

2 (iii), (iv), or (vi) of section 402(c)(8)(B) to an employee 

3 who provides firefighting services’’. 

4 (b) CONFORMING AMENDMENT.—The heading of 

5 paragraph (10) of section 72(t) is amended by striking 

6 ‘‘IN GOVERNMENTAL PLANS’’ and inserting ‘‘AND PRIVATE

7 SECTOR FIREFIGHTERS’’. 

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

9 this section shall apply to distributions made after the 

10 date of the enactment of this Act. 

11 SEC. 303. EXCLUSION OF CERTAIN DISABILITY-RELATED 

12 FIRST RESPONDER RETIREMENT PAYMENTS. 

13 (a) IN GENERAL.—Part III of subchapter B of chap14 ter 1 is amended by inserting after section 139B the fol15 lowing new section: 

16 ‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE17 SPONDER RETIREMENT PAYMENTS. 

18 ‘‘(a) IN GENERAL.—In the case of an individual who 

19 receives qualified first responder retirement payments for 

20 any taxable year, gross income shall not include so much 

21 of such payments as do not exceed the annualized exclud22 able disability amount with respect to such individual. 

23 ‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT

24 PAYMENTS.—For purposes of this section, the term ‘quali25 fied first responder retirement payments’ means, with reVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00143 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 spect to any taxable year, any pension or annuity which 

2 but for this section would be includible in gross income 

3 for such taxable year and which is received— 

4 ‘‘(1) from a plan described in clause (iii), (iv), 

5 (v), or (vi) of section 402(c)(8)(B), and 

6 ‘‘(2) in connection with such individual’s quali7 fied first responder service. 

8 ‘‘(c) ANNUALIZED EXCLUDABLE DISABILITY

9 AMOUNT.—For purposes of this section— 

10 ‘‘(1) IN GENERAL.—The term ‘annualized ex11 cludable disability amount’ means, with respect to 

12 any individual, the service-connected excludable dis13 ability amounts which are properly attributable to 

14 the 12-month period immediately preceding the date 

15 on which such individual attains retirement age. 

16 ‘‘(2) SERVICE-CONNECTED EXCLUDABLE DIS17 ABILITY AMOUNT.—The term ‘service-connected ex18 cludable disability amount’ means periodic payments 

19 received by an individual which— 

20 ‘‘(A) are not includible in such individual’s 

21 gross income under section 104(a)(1), 

22 ‘‘(B) are received in connection with such 

23 individual’s qualified first responder service, 

24 and 


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1 ‘‘(C) terminate when such individual at2 tains retirement age. 

3 ‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY4 MENTS.—In the case of an individual who only re5 ceives service-connected excludable disability 

6 amounts properly attributable to a portion of the 12- 

7 month period described in paragraph (1), such para8 graph shall be applied by multiplying such amounts 

9 by the ratio of 365 to the number of days in such 

10 period to which such amounts were properly attrib11 utable. 

12 ‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 

13 purposes of this section, the term ‘qualified first responder 

14 service’ means service as a law enforcement officer, fire15 fighter, paramedic, or emergency medical technician.’’. 

16 (b) CLERICAL AMENDMENT.—The table of sections 

17 for part III of subchapter B of chapter 1 is amended by 

18 inserting after the item relating to section 139B the fol19 lowing new item: 

‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 

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

21 this section shall apply to amounts received with respect 

22 to taxable years beginning after the date of the enactment 

23 of this Act. 


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1 SEC. 304. REPEAL OF DIRECT PAYMENT REQUIREMENT ON 

2 EXCLUSION FROM GROSS INCOME OF DIS3 TRIBUTIONS FROM GOVERNMENTAL PLANS 

4 FOR HEALTH AND LONG-TERM CARE INSUR5 ANCE. 

6 (a) IN GENERAL.—Section 402(l)(5)(A) is amended 

7 to read as follows: 

8 ‘‘(A) DIRECT PAYMENT TO INSURER PER9 MITTED.— 

10 ‘‘(i) IN GENERAL.—Paragraph (1) 

11 shall apply to a distribution without regard 

12 to whether payment of the premiums is 

13 made directly to the provider of the acci14 dent or health plan or qualified long-term 

15 care insurance contract by deduction from 

16 a distribution from the eligible retirement 

17 plan, or is made to the employee. 

18 ‘‘(ii) REPORTING.—In the case of a 

19 payment made to the employee as de20 scribed in clause (i), the employee shall in21 clude with the return of tax for the taxable 

22 year in which the distribution is made an 

23 attestation that the distribution does not 

24 exceed the amount paid by the employee 

25 for qualified health insurance premiums 

26 for such taxable year.’’. 


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

2 this section shall apply to distributions made after the 

3 date of the enactment of this Act. 

4 SEC. 305. MODIFICATION OF ELIGIBLE AGE FOR EXEMP5 TION FROM EARLY WITHDRAWAL PENALTY. 

6 (a) IN GENERAL.—Subparagraph (A) of section 

7 72(t)(10), as amended by this Act, is further amended by 

8 striking ‘‘age 50’’ and inserting ‘‘age 50 or 25 years of 

9 service under the plan, whichever is earlier’’. 

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

11 this section shall apply to distributions made after the 

12 date of the enactment of this Act. 

13 SEC. 306. EXEMPTION FROM EARLY WITHDRAWAL PENALTY 

14 FOR CERTAIN STATE AND LOCAL GOVERN15 MENT CORRECTIONS EMPLOYEES. 

16 (a) IN GENERAL.—Clause (i) of section 72(t)(10)(B) 

17 is amended by striking ‘‘or emergency medical services’’ 

18 and inserting ‘‘emergency medical services, or services as 

19 a corrections officer or as a forensic security employee pro20 viding for the care, custody, and control of forensic pa21 tients’’. 

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

23 this section shall apply to distributions made after the 

24 date of the enactment of this Act. 


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1 TITLE IV—NONPROFITS AND 

2 EDUCATORS 

3 SEC. 401. ENHANCEMENT OF 403(b) PLANS. 

4 (a) PERMITTED INVESTMENTS.—Subparagraph (A) 

5 of section 403(b)(7) is amended by striking ‘‘if the 

6 amounts are to be invested in regulated investment com7 pany stock to be held in that custodial account’’ and in8 serting ‘‘if the amounts are to be held in that custodial 

9 account and are invested in regulated investment company 

10 stock or a group trust intended to satisfy the requirements 

11 of Internal Revenue Service Revenue Ruling 81–100 (or 

12 any successor guidance)’’. 

13 (b) CONFORMING AMENDMENT.—The heading of 

14 paragraph (7) of section 403(b) is amended by striking 

15 ‘‘FOR REGULATED INVESTMENT COMPANY STOCK’’. 

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

17 this section shall apply to amounts invested after the date 

18 of the enactment of this Act. 

19 SEC. 402. HARDSHIP WITHDRAWAL RULES FOR 403(b) 

20 PLANS. 

21 (a) IN GENERAL.—Section 403(b) is amended by 

22 adding at the end the following new paragraph: 

23 ‘‘(15) SPECIAL RULES RELATING TO HARDSHIP

24 WITHDRAWALS.—For purposes of paragraphs (7) 

25 and (11)— 


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1 ‘‘(A) AMOUNTS WHICH MAY BE WITH2 DRAWN.—The following amounts may be dis3 tributed upon hardship of the employee: 

4 ‘‘(i) Contributions made pursuant to a 

5 salary reduction agreement (within the 

6 meaning of section 3121(a)(5)(D)). 

7 ‘‘(ii) Qualified nonelective contribu8 tions (as defined in section 401(m)(4)(C)). 

9 ‘‘(iii) Qualified matching contributions 

10 described in section 401(k)(3)(D)(ii)(I). 

11 ‘‘(iv) Earnings on any contributions 

12 described in clause (i), (ii), or (iii). 

13 ‘‘(B) NO REQUIREMENT TO TAKE AVAIL14 ABLE LOAN.—A distribution shall not be treat15 ed as failing to be made upon the hardship of 

16 an employee solely because the employee does 

17 not take any available loan under the plan.’’. 

18 (b) CONFORMING AMENDMENTS.— 

19 (1) Section 403(b)(7)(A)(i)(V) is amended by 

20 striking ‘‘in the case of contributions made pursuant 

21 to a salary reduction agreement (within the meaning 

22 of section 3121(a)(5)(D))’’ and inserting ‘‘subject to 

23 the provisions of paragraph (15)’’. 

24 (2) Paragraph (11) of section 403(b), as 

25 amended by this Act, is further amended— 


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1 (A) by striking ‘‘in’’ in subparagraph (B) 

2 and inserting ‘‘subject to the provisions of para3 graph (15), in’’; and 

4 (B) by striking the last sentence. 

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

6 this section shall apply to plan years beginning after the 

7 date of the enactment of this Act. 

8 SEC. 403. MULTIPLE EMPLOYER 403(b) PLANS. 

9 (a) IN GENERAL.—Section 403(b), as amended by 

10 this Act, is further amended by adding at the end the fol11 lowing new paragraph: 

12 ‘‘(16) MULTIPLE EMPLOYER PLANS.— 

13 ‘‘(A) IN GENERAL.—Except in the case of 

14 a church plan, this subsection shall not be 

15 treated as failing to apply to an annuity con16 tract solely by reason of such contract being 

17 purchased under a plan maintained by more 

18 than 1 employer. 

19 ‘‘(B) TREATMENT OF EMPLOYERS FAILING

20 TO MEET REQUIREMENTS OF PLAN.— 

21 ‘‘(i) IN GENERAL.—In the case of a 

22 plan maintained by more than 1 employer, 

23 this subsection shall not be treated as fail24 ing to apply to an annuity contract held 

25 under such plan merely because of one or 


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1 more employers failing to meet the require2 ments of this subsection if such plan satis3 fies rules similar to the rules of section 

4 413(e)(2) with respect to any such em5 ployer failure. 

6 ‘‘(ii) ADDITIONAL REQUIREMENTS IN

7 CASE OF NON-GOVERNMENTAL PLANS.—A 

8 plan shall not be treated as meeting the re9 quirements of this subparagraph unless the 

10 plan satisfies rules similar to the rules of 

11 subparagraph (A) or (B) of section 

12 413(e)(1), except in the case of a multiple 

13 employer plan maintained solely by any of 

14 the following: A State, a political subdivi15 sion of a State, or an agency or instrumen16 tality of any one or more of the fore17 going.’’. 

18 (b) ANNUAL REGISTRATION FOR 403(b) MULTIPLE

19 EMPLOYER PLAN.—Section 6057 is amended by redesig20 nating subsection (g) as subsection (h) and by inserting 

21 after subsection (f) the following new subsection: 

22 ‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS TREATED

23 AS ONE PLAN.—In the case of annuity contracts to which 

24 this section applies and to which section 403(b) applies 

25 by reason of the plan under which such contracts are purVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 chased meeting the requirements of paragraph (16) there2 of, such plan shall be treated as a single plan for purposes 

3 of this section.’’. 

4 (c) ANNUAL INFORMATION RETURNS FOR 403(b) 

5 MULTIPLE EMPLOYER PLAN.—Section 6058 is amended 

6 by redesignating subsection (f) as subsection (g) and by 

7 inserting after subsection (e) the following new subsection: 

8 ‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS TREATED

9 AS ONE PLAN.—In the case of annuity contracts to which 

10 this section applies and to which section 403(b) applies 

11 by reason of the plan under which such contracts are pur12 chased meeting the requirements of paragraph (16) there13 of, such plan shall be treated as a single plan for purposes 

14 of this section.’’. 

15 (d) REGULATIONS.—The Secretary of the Treasury 

16 (or the Secretary’s delegate) shall prescribe such regula17 tions as may be necessary to clarify, in the case of plans 

18 to which section 403(b)(16) of the Internal Revenue Code 

19 of 1986 applies, the treatment of an employer departing 

20 such plan in connection with such employer’s failure to 

21 meet multiple employer plan requirements. 

22 (e) MODIFICATION OF MODEL PLAN LANGUAGE. 

23 ETC.— 

24 (1) PLAN NOTIFICATIONS.—The Secretary of 

25 the Treasury (or the Secretary’s delegate) shall modVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ify the model plan language published under section 

2 413(e)(5) of the Internal Revenue Code of 1986 to 

3 include language which notifies participating employ4 ers described in section 501(c)(3), and which are ex5 empt from tax under section 501(a), that the plan 

6 is subject to the Employee Retirement Income Secu7 rity Act of 1974 and that such employer is a plan 

8 sponsor with respect to its employees participating 

9 in the multiple employer plan and, as such, has cer10 tain fiduciary duties with respect to the plan and to 

11 its employees. 

12 (2) MODEL PLANS FOR MULTIPLE EMPLOYER

13 403(b) NON-GOVERNMENTAL PLANS.—For plans to 

14 which section 403(b)(16)(A) of the Internal Revenue 

15 Code of 1986 applies (other than a plan maintained 

16 for its employees by a State, a political subdivision 

17 of a State, or an agency or instrumentality of any 

18 one or more of the foregoing) the Secretary of the 

19 Treasury (or the Secretary’s delegate) shall publish 

20 model plan language similar to model plan language 

21 published under section 413(e)(5) of such Code. 

22 (3) EDUCATIONAL OUTREACH TO EMPLOYERS

23 EXEMPT FROM TAX.—The Secretary of the Treasury 

24 (or the Secretary’s delegate) shall provide education 

25 and outreach to increase awareness to employers deVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00153 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 scribed in section 501(c)(3), and which are exempt 

2 from tax under section 501(a), that multiple em3 ployer plans are subject to the Employee Retirement 

4 Income Security Act of 1974 and that such employer 

5 is a plan sponsor with respect to its employees par6 ticipating in the multiple employer plan and, as 

7 such, has certain fiduciary duties with respect to the 

8 plan and to its employees. 

9 (f) NO INFERENCE WITH RESPECT TO CHURCH

10 PLANS.—Regarding any application of section 403(b) of 

11 the Internal Revenue Code of 1986 to an annuity contract 

12 purchased under a church plan (as defined in section 

13 414(e) of such Code) maintained by more than 1 em14 ployer, or to any application of rules similar to section 

15 413(e) of such Code to such a plan, no inference shall 

16 be made from section 403(b)(16)(A) of such Code (as 

17 added by this Act) not applying to such plans. 

18 (g) EFFECTIVE DATE.— 

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

20 this section shall apply to plan years beginning after 

21 the date of the enactment of this Act. 

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

23 amendments made by subsection (a) shall be con24 strued as limiting the authority of the Secretary of 

25 the Treasury or the Secretary’s delegate (determined 


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1 without regard to such amendment) to provide for 

2 the proper treatment of a failure to meet any re3 quirement applicable under the Internal Revenue 

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

5 employees) in the case of a plan to which section 

6 403(b)(16) of such Code applies. 

7 TITLE V—DISASTER RELIEF 

8 SEC. 501. SPECIAL RULES FOR USE OF RETIREMENT FUNDS 

9 IN CONNECTION WITH QUALIFIED FEDER10 ALLY DECLARED DISASTERS. 

11 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE12 MENT PLANS.— 

13 (1) IN GENERAL.—Paragraph (2) of section 

14 72(t), as amended by this Act, is further amended 

15 by adding at the end the following new subpara16 graph: 

17 ‘‘(M) DISTRIBUTIONS FROM RETIREMENT

18 PLANS IN CONNECTION WITH FEDERALLY DE19 CLARED DISASTERS.—Any qualified disaster re20 covery distribution.’’. 

21 (2) QUALIFIED DISASTER RECOVERY DISTRIBU22 TION.—Section 72(t) is amended by adding at the 

23 end the following new paragraph: 

24 ‘‘(11) QUALIFIED DISASTER RECOVERY DIS25 TRIBUTION.—For purposes of paragraph (2)(M)— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the term ‘qualified disaster 

3 recovery distribution’ means any distribution 

4 made— 

5 ‘‘(i) on or after the first day of the in6 cident period of a qualified disaster and 

7 before the date that is 180 days after the 

8 applicable date with respect to such dis9 aster, and 

10 ‘‘(ii) to an individual whose principal 

11 place of abode at any time during the inci12 dent period of such qualified disaster is lo13 cated in the qualified disaster area with re14 spect to such qualified disaster and who 

15 has sustained an economic loss by reason 

16 of such qualified disaster. 

17 ‘‘(B) AGGREGATE DOLLAR LIMITATION.— 

18 ‘‘(i) IN GENERAL.—For purposes of 

19 this subsection, the aggregate amount of 

20 distributions received by an individual 

21 which may be treated as qualified disaster 

22 recovery distributions with respect to any 

23 qualified disaster in all taxable years shall 

24 not exceed $22,000. 


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1 ‘‘(ii) TREATMENT OF PLAN DISTRIBU2 TIONS.—If a distribution to an individual 

3 would (without regard to clause (i)) be a 

4 qualified disaster recovery distribution, a 

5 plan shall not be treated as violating any 

6 requirement of this title merely because 

7 the plan treats such distribution as a 

8 qualified disaster recovery distribution, un9 less the aggregate amount of such distribu10 tions from all plans maintained by the em11 ployer (and any member of any controlled 

12 group which includes the employer) to such 

13 individual exceeds $22,000 with respect to 

14 the same qualified disaster. 

15 ‘‘(iii) CONTROLLED GROUP.—For pur16 poses of clause (ii), the term ‘controlled 

17 group’ means any group treated as a single 

18 employer under subsection (b), (c), (m), or 

19 (o) of section 414. 

20 ‘‘(C) AMOUNT DISTRIBUTED MAY BE RE21 PAID.— 

22 ‘‘(i) IN GENERAL.—Any individual 

23 who receives a qualified disaster recovery 

24 distribution may, at any time during the 3- 

25 year period beginning on the day after the 


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1 date on which such distribution was re2 ceived, make one or more contributions in 

3 an aggregate amount not to exceed the 

4 amount of such distribution to an eligible 

5 retirement plan of which such individual is 

6 a beneficiary and to which a rollover con7 tribution of such distribution could be 

8 made under section 402(c), 403(a)(4), 

9 403(b)(8), 408(d)(3), or 457(e)(16), as the 

10 case may be. 

11 ‘‘(ii) TREATMENT OF REPAYMENTS OF

12 DISTRIBUTIONS FROM ELIGIBLE RETIRE13 MENT PLANS OTHER THAN IRAS.—For 

14 purposes of this title, if a contribution is 

15 made pursuant to clause (i) with respect to 

16 a qualified disaster recovery distribution 

17 from a plan other than an individual re18 tirement plan, then the taxpayer shall, to 

19 the extent of the amount of the contribu20 tion, be treated as having received the 

21 qualified disaster recovery distribution in 

22 an eligible rollover distribution (as defined 

23 in section 402(c)(4)) and as having trans24 ferred the amount to the eligible retireVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00158 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ment plan in a direct trustee to trustee 

2 transfer within 60 days of the distribution. 

3 ‘‘(iii) TREATMENT OF REPAYMENTS

4 FOR DISTRIBUTIONS FROM IRAS.—For 

5 purposes of this title, if a contribution is 

6 made pursuant to clause (i) with respect to 

7 a qualified disaster recovery distribution 

8 from an individual retirement plan, then, 

9 to the extent of the amount of the con10 tribution, the qualified disaster recovery 

11 distribution shall be treated as a distribu12 tion described in section 408(d)(3) and as 

13 having been transferred to the eligible re14 tirement plan in a direct trustee to trustee 

15 transfer within 60 days of the distribution. 

16 ‘‘(D) INCOME INCLUSION SPREAD OVER 3- 

17 YEAR PERIOD.— 

18 ‘‘(i) IN GENERAL.—In the case of any 

19 qualified disaster recovery distribution, un20 less the taxpayer elects not to have this 

21 subparagraph apply for any taxable year, 

22 any amount required to be included in 

23 gross income for such taxable year shall be 

24 so included ratably over the 3-taxable year 

25 period beginning with such taxable year. 


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1 ‘‘(ii) SPECIAL RULE.—For purposes of 

2 clause (i), rules similar to the rules of sub3 paragraph (E) of section 408A(d)(3) shall 

4 apply. 

5 ‘‘(E) QUALIFIED DISASTER.—For purposes 

6 of this paragraph and paragraph (8), the term 

7 ‘qualified disaster’ means any disaster with re8 spect to which a major disaster has been de9 clared by the President under section 401 of 

10 the Robert T. Stafford Disaster Relief and 

11 Emergency Assistance Act after December 27, 

12 2020. 

13 ‘‘(F) OTHER DEFINITIONS.—For purposes 

14 of this paragraph and paragraph (8)— 

15 ‘‘(i) QUALIFIED DISASTER AREA.— 

16 ‘‘(I) IN GENERAL.—The term 

17 ‘qualified disaster area’ means, with 

18 respect to any qualified disaster, the 

19 area with respect to which the major 

20 disaster was declared under the Rob21 ert T. Stafford Disaster Relief and 

22 Emergency Assistance Act. 

23 ‘‘(II) EXCEPTIONS.—Such term 

24 shall not include any area which is a 

25 qualified disaster area solely by reason 


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1 of section 301 of the Taxpayer Cer2 tainty and Disaster Tax Relief Act of 

3 2020. 

4 ‘‘(ii) INCIDENT PERIOD.—The term 

5 ‘incident period’ means, with respect to 

6 any qualified disaster, the period specified 

7 by the Federal Emergency Management 

8 Agency as the period during which such 

9 disaster occurred. 

10 ‘‘(iii) APPLICABLE DATE.—The term 

11 ‘applicable date’ means the latest of— 

12 ‘‘(I) the date of the enactment of 

13 this paragraph, 

14 ‘‘(II) the first day of the incident 

15 period with respect to the qualified 

16 disaster, or 

17 ‘‘(III) the date of the disaster 

18 declaration with respect to the quali19 fied disaster. 

20 ‘‘(iv) ELIGIBLE RETIREMENT PLAN.— 

21 The term ‘eligible retirement plan’ shall 

22 have the meaning given such term by sec23 tion 402(c)(8)(B). 

24 ‘‘(G) SPECIAL RULES.— 


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1 ‘‘(i) EXEMPTION OF DISTRIBUTIONS

2 FROM TRUSTEE TO TRUSTEE TRANSFER

3 AND WITHHOLDING RULES.—For purposes 

4 of sections 401(a)(31), 402(f), and 3405, 

5 qualified disaster recovery distributions 

6 shall not be treated as eligible rollover dis7 tributions. 

8 ‘‘(ii) QUALIFIED DISASTER RECOVERY

9 DISTRIBUTIONS TREATED AS MEETING

10 PLAN DISTRIBUTION REQUIREMENTS.— 

11 For purposes of this title— 

12 ‘‘(I) a qualified disaster recovery 

13 distribution shall be treated as meet14 ing the requirements of sections 

15 401(k)(2)(B)(i), 403(b)(7)(A)(i), 

16 403(b)(11), and 457(d)(1)(A), and 

17 ‘‘(II) in the case of a money pur18 chase pension plan, a qualified dis19 aster recovery distribution which is an 

20 in-service withdrawal shall be treated 

21 as meeting the requirements of section 

22 401(a) applicable to distributions.’’. 

23 (3) EFFECTIVE DATE.—The amendments made 

24 by this subsection shall apply to distributions with 

25 respect to disasters the incident period (as defined 


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1 in section 72(t)(11)(F)(ii) of the Internal Revenue 

2 Code of 1986, as added by this subsection) for which 

3 begins on or after the date which is 30 days after 

4 the date of the enactment of the Taxpayer Certainty 

5 and Disaster Tax Relief Act of 2020. 

6 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

7 HOME PURCHASES.— 

8 (1) INDIVIDUAL RETIREMENT PLANS.—Para9 graph (8) of section 72(t) is amended by adding at 

10 the end the following new subparagraph: 

11 ‘‘(F) RECONTRIBUTIONS.— 

12 ‘‘(i) GENERAL RULE.— 

13 ‘‘(I) IN GENERAL.—Any indi14 vidual who received a qualified dis15 tribution may, during the applicable 

16 period, make one or more contribu17 tions in an aggregate amount not to 

18 exceed the amount of such qualified 

19 distribution to an eligible retirement 

20 plan (as defined in section 

21 402(c)(8)(B)) of which such indi22 vidual is a beneficiary and to which a 

23 rollover contribution of such distribu24 tion could be made under section 


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1 402(c), 403(a)(4), 403(b)(8), or 

2 408(d)(3), as the case may be. 

3 ‘‘(II) TREATMENT OF REPAY4 MENTS.—Rules similar to the rules of 

5 clauses (ii) and (iii) of paragraph 

6 (11)(C) shall apply for purposes of 

7 this subsection. 

8 ‘‘(ii) QUALIFIED DISTRIBUTION.—For 

9 purposes of this subparagraph, the term 

10 ‘qualified distribution’ means any distribu11 tion— 

12 ‘‘(I) which is a qualified first13 time homebuyer distribution, 

14 ‘‘(II) which was to be used to 

15 purchase or construct a principal resi16 dence in a qualified disaster area, but 

17 which was not so used on account of 

18 the qualified disaster with respect to 

19 such area, and 

20 ‘‘(III) which was received during 

21 the period beginning on the date 

22 which is 180 days before the first day 

23 of the incident period of such qualified 

24 disaster and ending on the date which 


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1 is 30 days after the last day of such 

2 incident period. 

3 ‘‘(iii) APPLICABLE PERIOD.—For pur4 poses of this subparagraph, the term ‘ap5 plicable period’ means, in the case of a 

6 principal residence in a qualified disaster 

7 area with respect to any qualified disaster, 

8 the period beginning on the first day of the 

9 incident period of such qualified disaster 

10 and ending on the date which is 180 days 

11 after the applicable date with respect to 

12 such disaster.’’. 

13 (2) QUALIFIED PLANS.—Subsection (c) of sec14 tion 402, as amended by this Act, is further amend15 ed by adding at the end the following new para16 graph: 

17 ‘‘(13) RECONTRIBUTIONS OF WITHDRAWALS

18 FOR HOME PURCHASES.— 

19 ‘‘(A) GENERAL RULE.— 

20 ‘‘(i) IN GENERAL.—Any individual 

21 who received a qualified distribution may, 

22 during the applicable period, make one or 

23 more contributions in an aggregate amount 

24 not to exceed the amount of such qualified 

25 distribution to an eligible retirement plan 


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1 (as defined in paragraph (8)(B)) of which 

2 such individual is a beneficiary and to 

3 which a rollover contribution of such dis4 tribution could be made under subsection 

5 (c) or section 403(a)(4), 403(b)(8), or 

6 408(d)(3), as the case may be. 

7 ‘‘(ii) TREATMENT OF REPAYMENTS.— 

8 Rules similar to the rules of clauses (ii) 

9 and (iii) of section 72(t)(11)(C) shall apply 

10 for purposes of this subsection. 

11 ‘‘(B) QUALIFIED DISTRIBUTION.—For 

12 purposes of this paragraph, the term ‘qualified 

13 distribution’ means any distribution— 

14 ‘‘(i) described in section 

15 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(i)(V), or 

16 403(b)(11)(B), 

17 ‘‘(ii) which was to be used to purchase 

18 or construct a principal residence in a 

19 qualified disaster area, but which was not 

20 so used on account of the qualified disaster 

21 with respect to such area, and 

22 ‘‘(iii) which was received during the 

23 period beginning on the date which is 180 

24 days before the first day of the incident pe25 riod of such qualified disaster and ending 


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1 on the date which is 30 days after the last 

2 day of such incident period. 

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

4 paragraph— 

5 ‘‘(i) the terms ‘qualified disaster’, 

6 ‘qualified disaster area’, and ‘incident pe7 riod’ have the meaning given such terms 

8 under section 72(t)(11), and 

9 ‘‘(ii) the term ‘applicable period’ has 

10 the meaning given such term under section 

11 72(t)(8)(F).’’. 

12 (3) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to recontributions of 

14 withdrawals for home purchases with respect to dis15 asters the incident period (as defined in section 

16 72(t)(11)(F)(ii) of the Internal Revenue Code of 

17 1986, as added by this subsection) for which begins 

18 on or after the date which is 30 days after the date 

19 of the enactment of the Taxpayer Certainty and Dis20 aster Tax Relief Act of 2020. 

21 (c) LOANS FROM QUALIFIED PLANS.— 

22 (1) IN GENERAL.—Subsection (p) of section 72 

23 is amended by adding at the end the following new 

24 paragraph: 


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1 ‘‘(6) INCREASE IN LIMIT ON LOANS NOT TREAT2 ED AS DISTRIBUTIONS.— 

3 ‘‘(A) IN GENERAL.—In the case of any 

4 loan from a qualified employer plan to a quali5 fied individual made during the applicable pe6 riod— 

7 ‘‘(i) clause (i) of paragraph (2)(A) 

8 shall be applied by substituting ‘$100,000’ 

9 for ‘$50,000’, and 

10 ‘‘(ii) clause (ii) of such paragraph 

11 shall be applied by substituting ‘the 

12 present value of the nonforfeitable accrued 

13 benefit of the employee under the plan’ for 

14 ‘one-half of the present value of the non15 forfeitable accrued benefit of the employee 

16 under the plan’. 

17 ‘‘(B) DELAY OF REPAYMENT.—In the case 

18 of a qualified individual with respect to any 

19 qualified disaster with an outstanding loan from 

20 a qualified employer plan on or after the appli21 cable date with respect to the qualified dis22 aster— 

23 ‘‘(i) if the due date pursuant to sub24 paragraph (B) or (C) of paragraph (2) for 

25 any repayment with respect to such loan 


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1 occurs during the period beginning on the 

2 first day of the incident period of such 

3 qualified disaster and ending on the date 

4 which is 180 days after the last day of 

5 such incident period, such due date may be 

6 delayed for 1 year, 

7 ‘‘(ii) any subsequent repayments with 

8 respect to any such loan may be appro9 priately adjusted to reflect the delay in the 

10 due date under clause (i) and any interest 

11 accruing during such delay, and 

12 ‘‘(iii) in determining the 5-year period 

13 and the term of a loan under subpara14 graph (B) or (C) of paragraph (2), the pe15 riod described in clause (i) may be dis16 regarded. 

17 ‘‘(C) DEFINITIONS.—For purposes of this 

18 paragraph— 

19 ‘‘(i) QUALIFIED INDIVIDUAL.—The 

20 term ‘qualified individual’ means any indi21 vidual— 

22 ‘‘(I) whose principal place of 

23 abode at any time during the incident 

24 period of any qualified disaster is lo25 cated in the qualified disaster area 


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1 with respect to such qualified disaster, 

2 and 

3 ‘‘(II) who has sustained an eco4 nomic loss by reason of such qualified 

5 disaster. 

6 ‘‘(ii) APPLICABLE PERIOD.—The ap7 plicable period with respect to any disaster 

8 is the period— 

9 ‘‘(I) beginning on the applicable 

10 date with respect to such disaster, and 

11 ‘‘(II) ending on the date that is 

12 180 days after such applicable date. 

13 ‘‘(iii) OTHER TERMS.—For purposes 

14 of this paragraph— 

15 ‘‘(I) the terms ‘applicable date’, 

16 ‘qualified disaster’, ‘qualified disaster 

17 area’, and ‘incident period’ have the 

18 meaning given such terms under sub19 section (t)(11), and 

20 ‘‘(II) the term ‘applicable period’ 

21 has the meaning given such term 

22 under subsection (t)(8).’’. 

23 (2) EFFECTIVE DATE.—The amendment made 

24 by paragraph (1) shall apply to plan loans made 

25 with respect to disasters the incident period (as deVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00170 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 fined in section 72(t)(11)(F)(ii) of the Internal Rev2 enue Code of 1986, as added by this subsection) for 

3 which begins on or after the date which is 30 days 

4 after the date of the enactment of the Taxpayer Cer5 tainty and Disaster Tax Relief Act of 2020. 

6 (d) GAO REPORT.—The Comptroller General of the 

7 United States shall submit a report to the Committees on 

8 Finance and Health, Education, Labor and Pensions of 

9 the Senate and the Committees on Ways and Means and 

10 Education and Labor of the House of Representatives on 

11 taxpayer utilization of the retirement disaster relief per12 mitted by the amendments made by this section and or 

13 permitted by prior legislation, including a comparison of 

14 utilization by higher and lower income taxpayers and 

15 whether the $22,000 threshold on distributions provides 

16 adequate relief for taxpayers who suffer from a disaster. 

17 TITLE VI—EMPLOYER PLANS 

18 SEC. 601. CREDIT FOR EMPLOYERS WITH RESPECT TO 

19 MODIFIED SAFE HARBOR REQUIREMENTS. 

20 (a) IN GENERAL.—Subpart D of part IV of sub21 chapter A of chapter 1, as amended by this Act, is further 

22 amended by adding at the end the following new section: 


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1 ‘‘SEC. 45V. CREDIT FOR SMALL EMPLOYERS WITH RESPECT 

2 TO MODIFIED SAFE HARBOR REQUIREMENTS 

3 FOR AUTOMATIC CONTRIBUTION ARRANGE4 MENTS. 

5 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

6 in the case of a small employer, the safe harbor adoption 

7 credit determined under this section for any taxable year 

8 is the amount equal to the total of the employer’s match9 ing contributions under section 401(k)(16)(D) during the 

10 taxable year on behalf of employees who are not highly 

11 compensated employees. 

12 ‘‘(b) LIMITATIONS.— 

13 ‘‘(1) LIMITATION WITH RESPECT TO COM14 PENSATION.—The credit determined under sub15 section (a) with respect to contributions made on be16 half of any employee shall not exceed 2 percent of 

17 the compensation of such employee for the taxable 

18 year. 

19 ‘‘(2) LIMITATION WITH RESPECT TO YEARS OF

20 PARTICIPATION.—A credit shall be determined under 

21 subsection (a) with respect to contributions made on 

22 behalf of any employee only during the first 5 years 

23 such employee participates in the secure deferral ar24 rangement. 

25 ‘‘(c) DEFINITIONS.— 


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1 ‘‘(1) IN GENERAL.—Any term used in this sec2 tion which is also used in section 401(k)(16) shall 

3 have the same meaning as when used in such sec4 tion. 

5 ‘‘(2) SMALL EMPLOYER.—The term ‘small em6 ployer’ means an eligible employer (as defined in 

7 section 408(p)(2)(C)(i)). 

8 ‘‘(d) SPECIAL RULES.— 

9 ‘‘(1) AGGREGATION RULES.—For purposes of 

10 this section, all persons treated as a single employer 

11 under subsection (a) or (b) of section 52, or sub12 section (m) or (o) of section 414, shall be treated as 

13 one person and all plans of the employer shall be 

14 treated as 1 eligible plan. 

15 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc16 tion shall be allowable under this title for any con17 tribution with respect to which a credit is allowed 

18 under this section. 

19 ‘‘(3) ELECTION NOT TO CLAIM CREDIT.—This 

20 section shall not apply to a taxpayer for any taxable 

21 year if such taxpayer elects to have this section not 

22 apply for such taxable year.’’. 

23 (b) CREDIT TO BE PART OF GENERAL BUSINESS

24 CREDIT.—Subsection (b) of section 38, as amended by 

25 this Act, is further amended by striking ‘‘plus’’ at the end 


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1 of paragraph (33), by striking the period at the end of 

2 paragraph (34) and inserting ‘‘, plus’’, and by adding at 

3 the end the following new paragraph: 

4 ‘‘(35) the safe harbor adoption credit deter5 mined under section 45V.’’. 

6 (c) TREATMENT OF CREDIT FOR CERTIFIED PRO7 FESSIONAL EMPLOYER ORGANIZATIONS.—Paragraph (2) 

8 of section 3511(d), as amended by this Act, is further 

9 amended— 

10 (1) by redesignating subparagraphs (G), (H), 

11 and (I) as subparagraphs (H), (I), and (J), respec12 tively, and 

13 (2) by inserting after subparagraph (F) the fol14 lowing new subparagraph: 

15 ‘‘(G) section 45V (safe harbor adoption 

16 credit),’’. 

17 (d) CLERICAL AMENDMENT.—The table of sections 

18 for subpart D of part IV of subchapter A of chapter 1, 

19 as amended by this Act, is further amended by inserting 

20 after the item relating to section 45U the following new 

21 item: 

‘‘Sec. 45V. Credit for small employers with respect to modified safe harbor requirements for automatic contribution arrangements.’’. 

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

23 this section shall apply to taxable years which include any 

24 portion of a plan year beginning after December 31, 2023. 


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1 SEC. 602. APPLICATION OF TOP HEAVY RULES TO DEFINED 

2 CONTRIBUTION PLANS COVERING EXCLUD3 ABLE EMPLOYEES. 

4 (a) IN GENERAL.—Paragraph (2) of section 416(c) 

5 is amended by adding at the end the following new sub6 paragraph: 

7 ‘‘(C) APPLICATION TO EMPLOYEES NOT

8 MEETING AGE AND SERVICE REQUIREMENTS.— 

9 Any employees not meeting the age or service 

10 requirements of section 410(a)(1) (without re11 gard to subparagraph (B) thereof) may be ex12 cluded from consideration in determining 

13 whether any plan of the employer meets the re14 quirements of subparagraphs (A) and (B).’’. 

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

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

17 the date of the enactment of this Act. 

18 SEC. 603. INCREASE IN CREDIT LIMITATION FOR SMALL 

19 EMPLOYER PENSION PLAN STARTUP COSTS 

20 OF CERTAIN EMPLOYERS. 

21 (a) IN GENERAL.—Subsection (a) of section 45E is 

22 amended by inserting before the period at the end the fol23 lowing: ‘‘(75 percent of such costs in the case of an eligible 

24 employer, as determined by substituting ‘25’ for ‘100’ in 

25 section 408(p)(2)(C)(i))’’. 


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1 (b) TREATMENT OF CREDIT FOR CERTIFIED PRO2 FESSIONAL EMPLOYER ORGANIZATIONS.—Paragraph (2) 

3 of section 3511(d), as amended by this Act, is further 

4 amended— 

5 (1) by redesignating subparagraphs (E), (F), 

6 (G), (H), (I), and (J) as subparagraphs (F), (G), 

7 (H), (I), (J), and (K), respectively, and 

8 (2) by inserting after subparagraph (D) the fol9 lowing new subparagraph: 

10 ‘‘(E) section 45E (small employer pension 

11 plan startup cost credit),’’. 

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

13 this section shall apply to taxable years beginning after 

14 December 31, 2023. 

15 SEC. 604. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 

16 RESOLUTION SYSTEM. 

17 (a) IN GENERAL.—Except as otherwise provided in 

18 guidance prescribed by the Secretary of the Treasury or 

19 the Secretary’s delegate (referred to in this section as the 

20 ‘‘Secretary’’), any eligible inadvertent failure to comply 

21 with the rules applicable under section 401(a), 403(a), 

22 403(b), 408(p), or 408(k) of the Internal Revenue Code 

23 of 1986 may be self-corrected under the Employee Plans 

24 Compliance Resolution System (as described in Revenue 

25 Procedure 2021–30 or any successor guidance, and hereVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 after referred to in this section as the ‘‘EPCRS’’), except 

2 to the extent that such failure was identified by the Sec3 retary prior to any actions which demonstrate a commit4 ment to implement a self-correction. Revenue Procedure 

5 2021–30 is deemed amended as of the date of the enact6 ment of this Act to provide that, except as otherwise pro7 vided under such Code or other guidance prescribed by 

8 the Secretary, the correction period under section 9.02 of 

9 such Revenue Procedure (or any successor guidance) for 

10 an eligible inadvertent failure is indefinite and has no last 

11 day, other than with respect to failures identified by the 

12 Secretary prior to any self-correction as described in the 

13 preceding sentence. 

14 (b) LOAN ERRORS.—In the case of an eligible inad15 vertent failure relating to a loan from a plan to a partici16 pant, such failure may be self-corrected under subsection 

17 (a) according to the rules of section 6.07 of Revenue Pro18 cedure 2021–30 (or any successor guidance), including the 

19 provisions related to whether a deemed distribution must 

20 be reported on Form 1099–R. 

21 (c) EPCRS FOR IRAS.—The Secretary shall expand 

22 the EPCRS to allow custodians of individual retirement 

23 plans (as defined in section 7701(a)(37) of the Internal 

24 Revenue Code of 1986) to address eligible inadvertent failVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00177 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ures with respect to individual retirement plans (as so de2 fined), including— 

3 (1) waivers of the excise tax which would other4 wise apply under section 4974 of the Internal Rev5 enue Code of 1986; and 

6 (2) rules permitting a nonspouse beneficiary to 

7 return distributions to an inherited individual retire8 ment plan described in section 408(d)(3)(C) of the 

9 Internal Revenue Code of 1986 in a case where, due 

10 to an inadvertent error by a service provider, the 

11 beneficiary had reason to believe that the distribu12 tion could be rolled over without inclusion in income 

13 of any part of the distributed amount. 

14 (d) CORRECTION METHODS FOR ELIGIBLE INAD15 VERTENT FAILURES.—The Secretary shall issue guidance 

16 on correction methods that are required to be used to cor17 rect eligible inadvertent failures, including general prin18 ciples of correction if a specific correction method is not 

19 specified by the Secretary. 

20 (e) ELIGIBLE INADVERTENT FAILURE.—For pur21 poses of this section— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the term ‘‘eligible inadvertent failure’’ 

24 means a failure that occurs despite the existence of 

25 practices and procedures which— 


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1 (A) satisfy the standards set forth in sec2 tion 4.04 of Revenue Procedure 2021–30 (or 

3 any successor guidance), or 

4 (B) satisfy similar standards in the case of 

5 an individual retirement plan. 

6 (2) EXCEPTION.—The term ‘‘eligible inad7 vertent failure’’ shall not include any failure which 

8 is egregious, relates to the diversion or misuse of 

9 plan assets, or is directly or indirectly related to an 

10 abusive tax avoidance transaction. 

11 (f) DEADLINE.—Any guidance, or revision to any 

12 such guidance, required by this section shall be promul13 gated not later than the date which is 2 years after the 

14 date of the enactment of this Act. 

15 SEC. 605. APPLICATION OF CREDIT FOR SMALL EMPLOYER 

16 PENSION PLAN STARTUP COSTS TO EMPLOY17 ERS WHICH JOIN AN EXISTING PLAN. 

18 (a) IN GENERAL.—Section 45E(d)(3)(A) is amended 

19 by striking ‘‘effective’’ and inserting ‘‘effective with re20 spect to the eligible employer’’. 

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

22 this section shall apply to eligible employer plans which 

23 become effective with respect to the eligible employer after 

24 the date of the enactment of this Act. 


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1 SEC. 606. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 

2 ELECTIVE DEFERRAL FAILURES. 

3 The Secretary of the Treasury shall modify Appendix 

4 A.05(8) of Revenue Procedure 2021-30 (the Employee 

5 Plans Compliance Resolution System, or EPCRS) not 

6 later than December 31, 2023— 

7 (1) to provide that the special safe harbor cor8 rection method provided in Appendix A.05(8) for 

9 failures related to automatic contribution features in 

10 a section 401(k) plan or a section 403(b) plan is not 

11 limited to failures that begin on or before December 

12 31, 2023, and 

13 (2) to clarify that EPCRS correction methods 

14 for failures related to automatic contribution fea15 tures that require notices to a participant can be 

16 satisfied without regard to whether the participant 

17 remains employed at the time corrections are made. 

18 SEC. 607. REFORM OF FAMILY ATTRIBUTION RULE. 

19 (a) IN GENERAL.—Section 414 is amended— 

20 (1) in subsection (b)— 

21 (A) by striking ‘‘For purposes of’’ and in22 serting the following: 

23 ‘‘(1) IN GENERAL.—For purposes of’’, and 

24 (B) by adding at the end the following new 

25 paragraphs: 


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1 ‘‘(2) SPECIAL RULES FOR APPLYING FAMILY

2 ATTRIBUTION.—For purposes of applying the attri3 bution rules under section 1563 with respect to 

4 paragraph (1), the following rules apply: 

5 ‘‘(A) Community property laws shall be 

6 disregarded for purposes of determining owner7 ship. 

8 ‘‘(B) Except as provided by the Secretary, 

9 stock of an individual not attributed under sec10 tion 1563(e)(5) to such individual’s spouse shall 

11 not be attributed to such spouse by reason of 

12 the combined application of paragraphs (1) and 

13 (6)(A) of section 1563(e). 

14 ‘‘(C) Except as provided by the Secretary, 

15 in the case of stock in different corporations 

16 that is attributed to a child under section 

17 1563(e)(6)(A) from each parent, and is not at18 tributed to such parents as spouses under sec19 tion 1563(e)(5), such attribution to the child 

20 shall not by itself result in such corporations 

21 being members of the same controlled group. 

22 ‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS

23 SATISFYING THIS SECTION.—If application of para24 graph (2) causes 2 or more entities to be a con25 trolled group or to no longer be in a controlled 


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1 group, such change shall be treated as a transaction 

2 to which section 410(b)(6)(C) applies.’’, and 

3 (2) in subsection (m)(6)(B)— 

4 (A) by striking ‘‘OWNERSHIP.—In deter5 mining’’ and inserting the following: ‘‘OWNER6 SHIP.— 

7 ‘‘(i) IN GENERAL.—In determining’’, 

8 (B) by adding at the end the following new 

9 clauses: 

10 ‘‘(ii) SPECIAL RULES FOR APPLYING

11 FAMILY ATTRIBUTION.—For purposes of 

12 applying the attribution rules under section 

13 318 with respect to clause (i), the following 

14 rules apply: 

15 ‘‘(I) Community property laws 

16 shall be disregarded for purposes of 

17 determining ownership. 

18 ‘‘(II) Except as provided by the 

19 Secretary, stock of an individual not 

20 attributed under section 

21 318(a)(1)(A)(i) to such individual’s 

22 spouse shall not be attributed by rea23 son of the combined application of 

24 paragraphs (1)(A)(ii) and (4) of sec25 tion 318(a) to such spouse from a 


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1 child who has not attained the age of 

2 21 years. 

3 ‘‘(III) Except as provided by the 

4 Secretary, in the case of stock in dif5 ferent organizations which is attrib6 uted under section 318(a)(1)(A)(ii) 

7 from each parent to a child who has 

8 not attained the age of 21 years, and 

9 is not attributed to such parents as 

10 spouses under section 318(a)(1)(A)(i), 

11 such attribution to the child shall not 

12 by itself result in such organizations 

13 being members of the same affiliated 

14 service group. 

15 ‘‘(iii) PLAN SHALL NOT FAIL TO BE

16 TREATED AS SATISFYING THIS SECTION.— 

17 If the application of clause (ii) causes two 

18 or more entities to be an affiliated service 

19 group, or to no longer be in an affiliated 

20 service group, such change shall be treated 

21 as a transaction to which section 

22 410(b)(6)(C) applies.’’, and 

23 (C) by striking ‘‘apply’’ in clause (i), as so 

24 added, and inserting ‘‘apply, except that comVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00183 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 munity property laws shall be disregarded for 

2 purposes of determining ownership’’. 

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

4 this section shall apply to plan years beginning after De5 cember 31, 2023. 

6 SEC. 608. CONTRIBUTION LIMIT FOR SIMPLE IRAS. 

7 (a) IN GENERAL.—Subparagraph (E) of section 

8 408(p)(2) is amended— 

9 (1) by striking ‘‘amount is’’ and all that follows 

10 in clause (i) and inserting ‘‘dollar amount is— 

11 ‘‘(I) $16,500 in the case of an el12 igible employer described in clause 

13 (iii) which had not more than 25 em14 ployees who received at least $5,000 

15 of compensation from the employer 

16 for the preceding year, 

17 ‘‘(II) $16,500 in the case of an 

18 eligible employer described in clause 

19 (iii) which is not described in sub20 clause (I) and which elects, at such 

21 time and in such manner as pre22 scribed by the Secretary, the applica23 tion of this subclause for the year, 

24 and 


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1 ‘‘(III) $10,000 in any other 

2 case.’’, 

3 (2) by striking ‘‘ADJUSTMENT.—In the case of’’ 

4 in clause (ii) and inserting ‘‘ADJUSTMENT.— 

5 ‘‘(I) CERTAIN LARGE EMPLOY6 ERS.—In the case of’’, 

7 (3) by striking ‘‘clause (i)’’ in clause (ii) and in8 serting ‘‘clause (i)(III)’’, and 

9 (4) by adding at the end of clause (ii) the fol10 lowing new subclause: 

11 ‘‘(II) OTHER EMPLOYERS.—In 

12 the case of a year beginning after De13 cember 31, 2024, the Secretary shall 

14 adjust annually the $16,500 amount 

15 in subclauses (I) and (II) of clause (i) 

16 in the manner provided under sub17 clause (I) of this clause, except that 

18 the base period taken into account 

19 shall be the calendar quarter begin20 ning July 1, 2023.’’. 

21 (b) CATCH-UP CONTRIBUTIONS.—Paragraph (2) of 

22 section 414(v) is amended— 

23 (1) in subparagraph (B)— 


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1 (A) by striking ‘‘the applicable’’ in clause 

2 (ii) and inserting ‘‘except as provided in clause 

3 (iii), the applicable’’; and 

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

5 clause: 

6 ‘‘(iii) In the case of an applicable em7 ployer plan— 

8 ‘‘(I) which is maintained by an 

9 eligible employer described in section 

10 408(p)(2)(E)(i)(I), or 

11 ‘‘(II) to which an election under 

12 section 408(p)(2)(E)(i)(II) applies for 

13 the year (including a plan described in 

14 section 401(k)(11) which is main15 tained by an eligible employer de16 scribed in section 408(p)(2)(E)(i)(II) 

17 and to which such election applies by 

18 reason of subparagraphs (B)(i)(I) and 

19 (E) of section 401(k)(11)), 

20 the applicable dollar amount is $4,750.’’, 

21 and 

22 (2) in subparagraph (C), as amended by this 

23 Act, by striking ‘‘and the $2,500 amount in sub24 paragraph (B)(ii)’’ and inserting ‘‘, the $2,500 


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1 amount in subparagraph (B)(ii), and the $4,750 

2 amount in subparagraph (B)(iii)’’. 

3 (c) EMPLOYER MATCH.—Clause (ii) of section 

4 408(p)(2)(C) is amended— 

5 (1) by striking ‘‘The term’’ in subclause (I) and 

6 inserting ‘‘Except as provided in subclause (IV), the 

7 term’’, 

8 (2) by adding at the end the following new sub9 clause: 

10 ‘‘(IV) SPECIAL RULE FOR ELECT11 ING LARGER EMPLOYERS.—In the 

12 case of an employer which had more 

13 than 25 employees who received at 

14 least $5,000 of compensation from the 

15 employer for the preceding year, and 

16 which makes the election under sub17 paragraph (E)(i)(II) for any year, 

18 subclause (I) shall be applied for such 

19 year by substituting ‘4 percent’ for ‘3 

20 percent’.’’, and 

21 (3) by striking ‘‘3 percent’’ each place it ap22 pears in subclauses (II) and (III) and inserting ‘‘the 

23 applicable percentage’’. 

24 (d) INCREASE IN NONELECTIVE EMPLOYER CON25 TRIBUTION FOR ELECTING LARGER EMPLOYERS.—SubVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00187 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 paragraph (B) of section 408(p)(2) is amended by adding 

2 at the end the following new clause: 

3 ‘‘(iii) SPECIAL RULE FOR ELECTING

4 LARGER EMPLOYERS.—In the case of an 

5 employer which had more than 25 employ6 ees who received at least $5,000 of com7 pensation from the employer for the pre8 ceding year, and which makes the election 

9 under subparagraph (E)(i)(II) for any 

10 year, clause (i) shall be applied for such 

11 year by substituting ‘3 percent’ for ‘2 per12 cent’.’’. 

13 (e) TRANSITION RULE.—Paragraph (2) of section 

14 408(p), as amended by this Act, is further amended by 

15 adding at the end the following new subparagraph: 

16 ‘‘(H) 2-YEAR GRACE PERIOD.—An eligible 

17 employer which had not more than 25 employ18 ees who received at least $5,000 of compensa19 tion from the employer for 1 or more years, and 

20 which has more than 25 such employees for any 

21 subsequent year, shall be treated for purposes 

22 of subparagraph (E)(i) as having 25 such em23 ployees for the 2 years following the last year 

24 the employer had not more than 25 such em25 ployees, and not as having made the election 


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1 under subparagraph (E)(i)(II) for such 2 years. 

2 Rules similar to the second sentence of sub3 paragraph (C)(i)(II) shall apply for purposes of 

4 this subparagraph.’’. 

5 (f) AMENDMENTS APPLY ONLY IF EMPLOYER HAS

6 NOT HAD ANOTHER PLAN WITHIN 3 YEARS.—Subpara7 graph (E) of section 408(p)(2), as amended by subsection 

8 (a), is further amended by adding at the end the following 

9 new clause: 

10 ‘‘(iii) EMPLOYER HAS NOT HAD AN11 OTHER PLAN WITHIN 3 YEARS.—An eligi12 ble employer is described in this clause 

13 only if, during the 3-taxable-year period 

14 immediately preceding the 1st year the em15 ployer maintains the qualified salary re16 duction arrangement under this paragraph, 

17 neither the employer nor any member of 

18 any controlled group including the em19 ployer (or any predecessor of either) estab20 lished or maintained any plan described in 

21 clause (i), (ii), or (iv) of section 

22 219(g)(5)(A) with respect to which con23 tributions were made, or benefits were ac24 crued, for substantially the same employees 


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1 as are eligible to participate in such quali2 fied salary reduction arrangement.’’. 

3 (g) CONFORMING AMENDMENTS RELATING TO SIM4 PLE 401(k)S.— 

5 (1) Subclause (I) of section 401(k)(11)(B)(i) is 

6 amended by inserting ‘‘(after the application of any 

7 election under section 408(p)(2)(E)(i)(II))’’ before 

8 the comma. 

9 (2) Paragraph (11) of section 401(k) is amend10 ed by adding at the end the following new subpara11 graph: 

12 ‘‘(E) EMPLOYERS ELECTING INCREASED

13 CONTRIBUTIONS.—In the case of an employer 

14 which applies an election under section 

15 408(p)(2)(E)(i)(II) for purposes of the con16 tribution requirements of this paragraph under 

17 subparagraph (B)(i)(I), rules similar to the 

18 rules of subparagraphs (B)(iii), (C)(ii)(IV), and 

19 (G) of section 408(p)(2) shall apply for pur20 poses of subparagraphs (B)(i)(II) and (B)(ii) of 

21 this paragraph.’’. 

22 (h) PLAN FORMS TO BE SHARED WITH SEC23 RETARY.— 


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1 (1) IN GENERAL.—Subsection (p) of section 

2 408 is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(11) PLAN ARRANGEMENT TO BE SHARED

5 WITH SECRETARY.—The trustee or issuer (in the 

6 case of an individual retirement annuity) of a simple 

7 retirement account shall provide to the Secretary, at 

8 the time the qualified salary reduction arrangement 

9 is established (or not later than December 31, 2024, 

10 in the case of arrangements in effect on the date of 

11 the enactment of this paragraph), a copy of the writ12 ten arrangement described in paragraph (2)(A).’’. 

13 (2) SIMPLE 401(K)S.—Paragraph (11) of section 

14 401(k), as amended by this section, is further 

15 amended by adding at the end the following new 

16 subparagraph: 

17 ‘‘(F) PLAN ARRANGEMENT TO BE SHARED

18 WITH SECRETARY.—The plan administrator of 

19 a cash and deferred arrangement under this 

20 paragraph shall provide to the Secretary, at the 

21 time the arrangement is established (or not 

22 later than December 31, 2024, in the case of 

23 arrangements in effect on the date of the enact24 ment of this paragraph), a written copy of the 

25 arrangement.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2023. 

4 (j) REPORTS BY SECRETARY.— 

5 (1) IN GENERAL.—The Secretary of the Treas6 ury shall, not later than December 31, 2024, and 

7 annually thereafter, report to the Committees on Fi8 nance and Health, Education, Labor, and Pensions 

9 of the Senate and the Committees on Ways and 

10 Means and Education and Labor of the House of 

11 Representatives on the data described in paragraph 

12 (2), together with any recommendations the Sec13 retary deems appropriate. 

14 (2) DATA DESCRIBED.—For purposes of the re15 port required under paragraph (1), the Secretary of 

16 the Treasury shall collect data and information on— 

17 (A) the number of plans described in sec18 tion 408(p) or 401(k)(11) of the Internal Rev19 enue Code of 1986 that are maintained or es20 tablished during a year; 

21 (B) the number of participants eligible to 

22 participate in such plans for such year; 

23 (C) median contribution amounts for the 

24 participants described in subparagraph (B); 


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1 (D) the types of investments that are most 

2 common under such plans; and 

3 (E) the fee levels charged in connection 

4 with the maintenance of accounts under such 

5 plans. 

6 Such data and information shall be collected sepa7 rately for each type of plan. For purposes of col8 lecting such data, the Secretary of the Treasury may 

9 use such data as is otherwise available to the Sec10 retary for publication and may use such approaches 

11 as are appropriate under the circumstances, includ12 ing the use of voluntary surveys and collaboration on 

13 studies. 

14 SEC. 609. EMPLOYERS ALLOWED TO REPLACE SIMPLE RE15 TIREMENT ACCOUNTS WITH SAFE HARBOR 

16 401(k) PLANS DURING A YEAR. 

17 (a) IN GENERAL.—Section 408(p), as amended by 

18 this Act, is further amended by adding at the end the fol19 lowing new paragraph: 

20 ‘‘(12) REPLACEMENT OF SIMPLE RETIREMENT

21 ACCOUNTS WITH SAFE HARBOR PLANS DURING PLAN

22 YEAR.— 

23 ‘‘(A) IN GENERAL.—Subject to the re24 quirements of this paragraph, an employer may 

25 elect (in such form and manner as the SecVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00193 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 retary may prescribe) at any time during a year 

2 to terminate the qualified salary reduction ar3 rangement under paragraph (2), but only if the 

4 employer establishes and maintains (as of the 

5 day after the termination date) a safe harbor 

6 plan to replace the terminated arrangement. 

7 ‘‘(B) COMBINED LIMITS ON CONTRIBU8 TIONS.—The terminated arrangement and safe 

9 harbor plan shall both be treated as violating 

10 the requirements of paragraph (2)(A)(ii) or sec11 tion 401(a)(30) (whichever is applicable) if the 

12 aggregate elective contributions of the employee 

13 under the terminated arrangement during its 

14 last plan year and under the safe harbor plan 

15 during its transition year exceed the sum of— 

16 ‘‘(i) the applicable dollar amount for 

17 such arrangement (determined on a full18 year basis) under this subsection (after the 

19 application of section 414(v)) with respect 

20 to the employee for such last plan year 

21 multiplied by a fraction equal to the num22 ber of days in such plan year divided by 

23 365, and 

24 ‘‘(ii) the applicable dollar amount (as 

25 so determined) under section 402(g)(1) for 


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1 such safe harbor plan on such elective con2 tributions during the transition year multi3 plied by a fraction equal to the number of 

4 days in such transition year divided by 

5 365. 

6 ‘‘(C) TRANSITION YEAR.—For purposes of 

7 this paragraph, the transition year is the period 

8 beginning after the termination date and ending 

9 on the last day of the calendar year during 

10 which the termination occurs. 

11 ‘‘(D) SAFE HARBOR PLAN.—For purposes 

12 of this paragraph, the term ‘safe harbor plan’ 

13 means a qualified cash or deferred arrangement 

14 which meets the requirements of paragraph 

15 (11), (12), (13), or (16) of section 401(k).’’. 

16 (b) WAIVER OF 2-YEAR WITHDRAWAL LIMITATION

17 IN CASE OF PLANS CONVERTING TO 401(k) OR 403(b).— 

18 (1) IN GENERAL.—Paragraph (6) of section 

19 72(t) is amended— 

20 (A) by striking ‘‘ACCOUNTS.—In the case 

21 of’’ and inserting ‘‘ACCOUNTS.— 

22 ‘‘(A) IN GENERAL.—In the case of’’, and 

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

24 subparagraph: 


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1 ‘‘(B) WAIVER IN CASE OF PLAN CONVER2 SION TO 401(k) OR 403(b).—In the case of an 

3 employee of an employer which terminates the 

4 qualified salary reduction arrangement of the 

5 employer under section 408(p) and establishes 

6 a qualified cash or deferred arrangement de7 scribed in section 401(k) or purchases annuity 

8 contracts described in section 403(b), subpara9 graph (A) shall not apply to any amount which 

10 is paid in a rollover contribution described in 

11 section 408(d)(3) into a qualified trust under 

12 section 401(k) (but only if such contribution is 

13 subsequently subject to the rules of section 

14 401(k)(2)(B)) or an annuity contract described 

15 in section 403(b) (but only if such contribution 

16 is subsequently subject to the rules of section 

17 403(b)(11)) for the benefit of the employee.’’. 

18 (2) CONFORMING AMENDMENT.—Subparagraph 

19 (G) of section 408(d)(3) is amended by striking 

20 ‘‘72(t)(6)’’ and inserting ‘‘72(t)(6)(A)’’. 

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

22 this section shall apply to plan years beginning after De23 cember 31, 2023. 


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1 SEC. 610. STARTER 401(k) PLANS FOR EMPLOYERS WITH NO 

2 RETIREMENT PLAN. 

3 (a) IN GENERAL.—Section 401(k), as amended by 

4 this Act, is further amended by adding at the end the fol5 lowing new paragraph: 

6 ‘‘(17) STARTER 401(k) DEFERRAL-ONLY PLANS

7 FOR EMPLOYERS WITH NO RETIREMENT PLAN.— 

8 ‘‘(A) IN GENERAL.—A starter 401(k) de9 ferral-only arrangement maintained by an eligi10 ble employer shall be treated as meeting the re11 quirements of paragraph (3)(A)(ii). 

12 ‘‘(B) STARTER 401(k) DEFERRAL-ONLY

13 ARRANGEMENT.—For purposes of this para14 graph, the term ‘starter 401(k) deferral-only 

15 arrangement’ means any cash or deferred ar16 rangement which meets— 

17 ‘‘(i) the automatic deferral require18 ments of subparagraph (C), 

19 ‘‘(ii) the contribution limitations of 

20 subparagraph (D), and 

21 ‘‘(iii) the requirements of subpara22 graph (E) of paragraph (13). 

23 ‘‘(C) AUTOMATIC DEFERRAL.— 

24 ‘‘(i) IN GENERAL.—The requirements 

25 of this subparagraph are met if, under the 

26 arrangement, each eligible employee is 


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1 treated as having elected to have the em2 ployer make elective contributions in an 

3 amount equal to a qualified percentage of 

4 compensation. 

5 ‘‘(ii) ELECTION OUT.—The election 

6 treated as having been made under clause 

7 (i) shall cease to apply with respect to any 

8 employee if such employee makes an af9 firmative election— 

10 ‘‘(I) to not have such contribu11 tions made, or 

12 ‘‘(II) to make elective contribu13 tions at a level specified in such af14 firmative election. 

15 ‘‘(iii) QUALIFIED PERCENTAGE.—For 

16 purposes of this subparagraph, the term 

17 ‘qualified percentage’ means, with respect 

18 to any employee, any percentage deter19 mined under the arrangement if such per20 centage is applied uniformly and is not less 

21 than 3 or more than 15 percent. 

22 ‘‘(D) CONTRIBUTION LIMITATIONS.— 

23 ‘‘(i) IN GENERAL.—The requirements 

24 of this subparagraph are met if, under the 

25 arrangement— 


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1 ‘‘(I) the only contributions which 

2 may be made are elective contribu3 tions of employees described in sub4 paragraph (C), and 

5 ‘‘(II) the aggregate amount of 

6 such elective contributions which may 

7 be made with respect to any employee 

8 for any calendar year shall not exceed 

9 $6,000. 

10 ‘‘(ii) COST-OF-LIVING ADJUSTMENT.— 

11 In the case of any calendar year beginning 

12 after December 31, 2024, the $6,000 

13 amount under clause (i) shall be adjusted 

14 in the same manner as under section 

15 402(g)(4), except that ‘2023’ shall be sub16 stituted for ‘2005’. 

17 ‘‘(iii) CATCH-UP CONTRIBUTIONS FOR

18 INDIVIDUALS AGE 50 OR OVER.—In the 

19 case of an individual who has attained the 

20 age of 50 before the close of the taxable 

21 year, the limitation under clause (i)(II) 

22 shall be increased by the applicable amount 

23 determined under section 219(b)(5)(B)(ii) 

24 (after the application of section 

25 219(b)(5)(C)(iii)). 


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1 ‘‘(E) ELIGIBLE EMPLOYER.—For purposes 

2 of this paragraph— 

3 ‘‘(i) IN GENERAL.—The term ‘eligible 

4 employer’ means any employer if the em5 ployer does not maintain a qualified plan 

6 with respect to which contributions are 

7 made, or benefits are accrued, for service 

8 in the year for which the determination is 

9 being made. If only individuals other than 

10 employees described in subparagraph (A) 

11 of section 410(b)(3) are eligible to partici12 pate in such arrangement, then the pre13 ceding sentence shall be applied without 

14 regard to any qualified plan in which only 

15 employees described in such subparagraph 

16 are eligible to participate. 

17 ‘‘(ii) RELIEF FOR ACQUISITIONS, 

18 ETC.—Rules similar to the rules of section 

19 408(p)(10) shall apply for purposes of 

20 clause (i). 

21 ‘‘(iii) QUALIFIED PLAN.—The term 

22 ‘qualified plan’ means a plan, contract, 

23 pension, account, or trust described in sub24 paragraph (A) or (B) of paragraph (5) of 

25 section 219(g) (determined without regard 


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1 to the last sentence of such paragraph 

2 (5)). 

3 ‘‘(F) ELIGIBLE EMPLOYEE.—For purposes 

4 of this paragraph— 

5 ‘‘(i) IN GENERAL.—The term ‘eligible 

6 employee’ means any employee of the em7 ployer who meets the minimum age and 

8 service conditions described in section 

9 410(a)(1). 

10 ‘‘(ii) EXCLUSIONS.—The employer 

11 may elect to exclude from such definition 

12 any employee described in paragraph (3) 

13 or (4) of section 410(b).’’. 

14 (b) CERTAIN ANNUITY CONTRACTS.—Subsection (b) 

15 of section 403, as amended by this Act, is further amended 

16 by adding at the end the following new paragraph: 

17 ‘‘(17) SAFE HARBOR DEFERRAL-ONLY PLANS

18 FOR EMPLOYERS WITH NO RETIREMENT PLAN.— 

19 ‘‘(A) IN GENERAL.—A safe harbor defer20 ral-only plan maintained by an eligible employer 

21 shall be treated as meeting the requirements of 

22 paragraph (12). 

23 ‘‘(B) SAFE HARBOR DEFERRAL-ONLY

24 PLAN.—For purposes of this paragraph, the 


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1 term ‘safe harbor deferral-only plan’ means any 

2 plan which meets— 

3 ‘‘(i) the automatic deferral require4 ments of subparagraph (C), 

5 ‘‘(ii) the contribution limitations of 

6 subparagraph (D), and 

7 ‘‘(iii) the requirements of subpara8 graph (E) of section 401(k)(13). 

9 ‘‘(C) AUTOMATIC DEFERRAL.— 

10 ‘‘(i) IN GENERAL.—The requirements 

11 of this subparagraph are met if, under the 

12 plan, each eligible employee is treated as 

13 having elected to have the employer make 

14 elective contributions in an amount equal 

15 to a qualified percentage of compensation. 

16 ‘‘(ii) ELECTION OUT.—The election 

17 treated as having been made under clause 

18 (i) shall cease to apply with respect to any 

19 eligible employee if such eligible employee 

20 makes an affirmative election— 

21 ‘‘(I) to not have such contribu22 tions made, or 

23 ‘‘(II) to make elective contribu24 tions at a level specified in such af25 firmative election. 


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1 ‘‘(iii) QUALIFIED PERCENTAGE.—For 

2 purposes of this subparagraph, the term 

3 ‘qualified percentage’ means, with respect 

4 to any employee, any percentage deter5 mined under the plan if such percentage is 

6 applied uniformly and is not less than 3 or 

7 more than 15 percent. 

8 ‘‘(D) CONTRIBUTION LIMITATIONS.— 

9 ‘‘(i) IN GENERAL.—The requirements 

10 of this subparagraph are met if, under the 

11 plan— 

12 ‘‘(I) the only contributions which 

13 may be made are elective contribu14 tions of eligible employees, and 

15 ‘‘(II) the aggregate amount of 

16 such elective contributions which may 

17 be made with respect to any employee 

18 for any calendar year shall not exceed 

19 $6,000. 

20 ‘‘(ii) COST-OF-LIVING ADJUSTMENT.— 

21 In the case of any calendar year beginning 

22 after December 31, 2024, the $6,000 

23 amount under clause (i) shall be adjusted 

24 in the same manner as under section 


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1 402(g)(4), except that ‘2023’ shall be sub2 stituted for ‘2005’. 

3 ‘‘(iii) CATCH-UP CONTRIBUTIONS FOR

4 INDIVIDUALS AGE 50 OR OVER.—In the 

5 case of an individual who has attained the 

6 age of 50 before the close of the taxable 

7 year, the limitation under clause (i)(II) 

8 shall be increased by the applicable amount 

9 determined under section 219(b)(5)(B)(ii) 

10 (after the application of section 

11 219(b)(5)(C)(iii)). 

12 ‘‘(E) ELIGIBLE EMPLOYER.—For purposes 

13 of this paragraph— 

14 ‘‘(i) IN GENERAL.—The term ‘eligible 

15 employer’ means any employer if the em16 ployer does not maintain a qualified plan 

17 with respect to which contributions are 

18 made, or benefits are accrued, for service 

19 in the year for which the determination is 

20 being made. If only individuals other than 

21 employees described in subparagraph (A) 

22 of section 410(b)(3) are eligible to partici23 pate in such arrangement, then the pre24 ceding sentence shall be applied without 

25 regard to any qualified plan in which only 


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1 employees described in such subparagraph 

2 are eligible to participate. 

3 ‘‘(ii) RELIEF FOR ACQUISITIONS, 

4 ETC.—Rules similar to the rules of section 

5 408(p)(10) shall apply for purposes of 

6 clause (i). 

7 ‘‘(iii) QUALIFIED PLAN.—The term 

8 ‘qualified plan’ means a plan, contract, 

9 pension, account, or trust described in sub10 paragraph (A) or (B) of paragraph (5) of 

11 section 219(g) (determined without regard 

12 to the last sentence of such paragraph 

13 (5)). 

14 ‘‘(F) ELIGIBLE EMPLOYEE.—For purposes 

15 of this paragraph, the term ‘eligible employee’ 

16 means any employee of the employer other than 

17 an employee who is permitted to be excluded 

18 under paragraph (12)(A).’’. 

19 (c) STARTER AND SAFE HARBOR PLANS NOT

20 TREATED AS TOP-HEAVY PLANS.—Subparagraph (H) of 

21 section 416(g)(4), as amended by this Act, is further 

22 amended— 

23 (1) by striking ‘‘ARRANGEMENTS’’ in the head24 ing and inserting ‘‘ARRANGEMENTS OR PLANS’’, 


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1 (2) by striking ‘‘, and’’ at the end of clause (i) 

2 and inserting ‘‘and matching contributions with re3 spect to which the requirements of paragraph (11), 

4 (12), or (13) of section 401(m) are met, or’’, and 

5 (3) by striking clause (ii) and inserting after 

6 clause (i) the following new clause: 

7 ‘‘(ii) a starter 401(k) deferral-only ar8 rangement described in section 

9 401(k)(17)(B) or a safe harbor deferral10 only plan described in section 

11 403(b)(17).’’. 

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

13 this section shall apply to plan years beginning after De14 cember 31, 2023. 

15 SEC. 611. CREDIT FOR SMALL EMPLOYERS THAT ADAPT AN 

16 AUTOMATIC PORTABILITY ARRANGEMENT. 

17 (a) IN GENERAL.—Subpart D of part IV of sub18 chapter A of chapter 1, as amended by this Act, is further 

19 amended by adding at the end the following new section: 

20 ‘‘SEC. 45W. EMPLOYER AUTOMATIC PORTABILITY AR21 RANGEMENT CREDIT. 

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

23 the case of an eligible employer, the automatic portability 

24 arrangement credit determined under this section for the 

25 adoption year is an amount equal to $500. 


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1 ‘‘(b) ELIGIBLE EMPLOYER.—For purposes of this 

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

3 the term by section 408(p)(2)(C)(i) (without regard to 

4 subclause (II) thereof). 

5 ‘‘(c) ADOPTION YEAR.—For purposes of this sec6 tion— 

7 ‘‘(1) IN GENERAL.—The term ‘adoption year’ 

8 means the taxable year during which the eligible em9 ployer first adopts an automatic portability arrange10 ment as part of an eligible plan maintained by the 

11 employer. 

12 ‘‘(2) AUTOMATIC PORTABILITY ARRANGE13 MENT.— 

14 ‘‘(A) IN GENERAL.—The term ‘automatic 

15 portability arrangement’ means an arrangement 

16 providing for automatic portability transactions. 

17 ‘‘(B) AUTOMATIC PORTABILITY TRANS18 ACTION.—The term ‘automatic portability 

19 transaction’ means a transaction in which 

20 amounts distributed pursuant to section 

21 401(a)(31)(B)(i) from a plan to an individual 

22 retirement plan established on behalf of an indi23 vidual are subsequently transferred to an eligi24 ble plan in which such individual is an active 

25 participant, after such individual has been given 


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1 advance notice of the transfer and has not af2 firmatively opted out of such transfer. 

3 ‘‘(3) ELIGIBLE PLAN.—The term ‘eligible plan’ 

4 means a qualified employer plan as defined in sec5 tion 4972(d)(1), other than a defined benefit plan.’’. 

6 (b) CREDIT TO BE PART OF GENERAL BUSINESS

7 CREDIT.—Subsection (b) of section 38, as amended by 

8 this Act, is further amended by striking ‘‘plus’’ at the end 

9 of paragraph (34), by striking the period at the end of 

10 paragraph (35) and inserting ‘‘, plus’’, and by adding at 

11 the end the following new paragraph: 

12 ‘‘(36) in the case of an eligible employer (as de13 fined in section 45W(b)), the automatic portability 

14 arrangement credit determined under section 

15 45W(a).’’. 

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

17 for subpart D of part IV of subchapter A of chapter 1, 

18 as amended by this Act, is further amended by adding 

19 at the end the following new item: 

‘‘Sec. 45W. Employer automatic portability arrangement credit.’’. 

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

21 this section shall apply to taxable years beginning after 

22 the date of the enactment of this Act. 


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1 SEC. 612. RE-ENROLLMENT CREDIT. 

2 (a) IN GENERAL.—Subpart D of part IV of sub3 chapter A of chapter 1, as amended by this Act, is further 

4 amended by adding at the end the following new section: 

5 ‘‘SEC. 45X. CREDIT FOR RE-ENROLLMENT PROVISIONS IN 

6 PLANS PROVIDED BY SMALL EMPLOYERS. 

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

8 the case of an eligible employer, the retirement re-enroll9 ment credit determined under this section for any taxable 

10 year is an amount equal to— 

11 ‘‘(1) $500 for any taxable year occurring during 

12 the credit period, and 

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

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

15 (a)— 

16 ‘‘(1) IN GENERAL.—The credit period with re17 spect to any eligible employer is the 3-taxable-year 

18 period beginning with the first taxable year for 

19 which the employer includes a re-enrollment provi20 sion in an eligible automatic contribution arrange21 ment (as defined in section 414(w)(3)) in a qualified 

22 employer plan (as defined in section 4972(d)) main23 tained by the employer. 

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

25 taxable year with respect to an employer shall be 

26 treated as occurring within the credit period unless 


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1 the provision described in paragraph (1) is included 

2 in the plan for such year. 

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

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

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

6 ‘‘(d) RE-ENROLLMENT PROVISION.—For purposes of 

7 this section, the term ‘re-enrollment provision’ means a 

8 provision of an eligible automatic contribution arrange9 ment under which— 

10 ‘‘(1) IN GENERAL.—Each employee eligible to 

11 participate in the arrangement who is not contrib12 uting or is contributing less than the percentage ap13 plicable to an eligible employee in the first year of 

14 eligibility is treated as being in such first year of eli15 gibility in each applicable year with respect to the 

16 employee. 

17 ‘‘(2) ELECTION OUT.—The election treated as 

18 having been made under paragraph (1) shall cease 

19 to apply with respect to any employee if such em20 ployee makes an affirmative election— 

21 ‘‘(A) to not have such contributions made, 

22 or 

23 ‘‘(B) to make elective contributions at a 

24 level specified in such affirmative election. 

25 ‘‘(3) APPLICABLE YEAR EVERY THIRD YEAR.— 


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

2 section, the term ‘applicable year’ means, with 

3 respect to an employee, such employee’s first 

4 plan year of eligibility under the arrangement, 

5 and all subsequent plan years of eligibility. 

6 ‘‘(B) EXCEPTION.—Following any applica7 ble year of an employee (determined after the 

8 application of this subparagraph), the plan may 

9 elect to treat the next 1 or 2 plan years as not 

10 being applicable years with respect to such em11 ployee.’’. 

12 (b) CREDIT TO BE PART OF GENERAL BUSINESS

13 CREDIT.—Subsection (b) of section 38, as amended by 

14 this Act, is further amended by striking ‘‘plus’’ at the end 

15 of paragraph (35), by striking the period at the end of 

16 paragraph (36) and inserting ‘‘, plus’’, and by adding at 

17 the end the following new paragraph: 

18 ‘‘(37) in the case of an eligible employer (as de19 fined in section 45X(c)), the retirement re-enroll20 ment credit determined under section 45X(a).’’. 

21 (c) TREATMENT OF CREDIT FOR CERTIFIED PRO22 FESSIONAL EMPLOYER ORGANIZATIONS.—Paragraph (2) 

23 of section 3511(d), as amended by this Act, is further 

24 amended— 


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1 (1) by redesignating subparagraphs (H), (I), 

2 (J), and (K) as subparagraphs (I), (J), (K), and (L) 

3 respectively, and 

4 (2) by inserting after subparagraph (G) the fol5 lowing new subparagraph: 

6 ‘‘(H) section 45X (retirement re-enroll7 ment credit),’’. 

8 (d) CLERICAL AMENDMENT.—The table of sections 

9 for subpart D of part IV of subchapter A of chapter 1, 

10 as amended by this Act, is further amended by inserting 

11 after the item relating to section 45W the following new 

12 item: 

‘‘Sec. 45X. Credit for re-enrollment provisions in plans provided by small employers.’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2023. 

16 SEC. 613. CORRECTIONS OF MORTALITY TABLES. 

17 (a) IN GENERAL.—Not later than 18 months after 

18 the date of the enactment of this Act, the Secretary of 

19 the Treasury (or the Secretary’s delegate) shall amend the 

20 regulation relating to ‘‘Mortality Tables for Determining 

21 Present Value Under Defined Benefit Pension Plans’’ (82 

22 Fed. Reg. 46388 (October 5, 2017)). Under such amend23 ment, for valuation dates occurring during or after 2022, 

24 such mortality improvement rates shall not assume future 


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1 mortality improvements at any age which are greater than 

2 .78 percent. The Secretary of the Treasury (or delegate) 

3 shall by regulation modify the .78 percent figure in the 

4 preceding sentence as necessary to reflect material 

5 changes in the overall rate of improvement projected by 

6 the Social Security Administration. 

7 (b) EFFECTIVE DATE.—The amendments required 

8 under subsection (a) shall be deemed to have been made 

9 as of the date of the enactment of this Act, and as of 

10 such date all applicable laws shall be applied in all respects 

11 as though the actions which the Secretary of the Treasury 

12 (or the Secretary’s delegate) is required to take under 

13 such subsection had been taken. 

14 SEC. 614. ENHANCING RETIREE HEALTH BENEFITS IN PEN15 SION PLANS. 

16 (a) EXTENSION OF TRANSFERS OF EXCESS PENSION

17 ASSETS TO RETIREE HEALTH ACCOUNTS.—Paragraph 

18 (4) of section 420(b) is amended by striking ‘‘December 

19 31, 2025’’ and inserting ‘‘December 31, 2032’’. 

20 (b) DE MINIMIS TRANSFER RULE.— 

21 (1) IN GENERAL.—Subsection (e) of section 

22 420 is amended by adding at the end the following 

23 new paragraph: 

24 ‘‘(7) SPECIAL RULE FOR DE MINIMIS TRANS25 FERS.— 


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1 ‘‘(A) IN GENERAL.—In the case of a trans2 fer of an amount which is not more than 1.75 

3 percent of the amount determined under para4 graph (2)(A) by a plan which meets the re5 quirements of subparagraph (B), paragraph 

6 (2)(B) shall be applied by substituting ‘110 

7 percent’ for ‘125 percent’. 

8 ‘‘(B) TWO-YEAR LOOKBACK REQUIRE9 MENT.—A plan is described in this subpara10 graph if, as of any valuation date in each of the 

11 2 plan years immediately preceding the plan 

12 year in which the transfer occurs, the amount 

13 determined under paragraph (2)(A) exceeded 

14 110 percent of the sum of the funding target 

15 and the target normal cost determined under 

16 section 430 for each such plan year.’’. 

17 (2) COST MAINTENANCE PERIOD.—Subpara18 graph (D) of section 420(c)(3) is amended by strik19 ing ‘‘5 taxable years’’ and inserting ‘‘5 taxable years 

20 (7 taxable years in the case of a transfer to which 

21 subsection (e)(7) applies)’’. 

22 (3) CONFORMING AMENDMENTS.— 

23 (A) EXCESS PENSION ASSETS.—Clause (i) 

24 of section 420(f)(2)(B) is amended— 


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1 (i) by striking ‘‘IN GENERAL.—In’’ 

2 and inserting ‘‘IN GENERAL.— 

3 ‘‘(I) DETERMINATION.—In’’, 

4 (ii) by striking ‘‘subsection (e)(2)’’ 

5 and inserting ‘‘subsection (e)(2)(B)’’, and 

6 (iii) by adding at the end the fol7 lowing new subclause: 

8 ‘‘(II) SPECIAL RULE FOR COL9 LECTIVELY BARGAINED TRANS10 FERS.—In determining excess pension 

11 assets for purposes of a collectively 

12 bargained transfer, subsection (e)(7) 

13 shall not apply.’’. 

14 (B) MINIMUM COST.—Subclause (I) of sec15 tion 420(f)(2)(D)(i) is amended by striking 

16 ‘‘4th year’’ and inserting ‘‘4th year (the 6th 

17 year in the case of a transfer to which sub18 section (e)(7) applies)’’. 

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

20 this section shall apply to transfers made after the date 

21 of the enactment of this Act. 


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1 SEC. 615. DEFERRAL OF TAX FOR CERTAIN SALES OF EM2 PLOYER STOCK TO EMPLOYEE STOCK OWN3 ERSHIP PLAN SPONSORED BY S CORPORA4 TION. 

5 (a) IN GENERAL.—Section 1042(c)(1)(A) is amended 

6 by striking ‘‘domestic C corporation’’ and inserting ‘‘do7 mestic corporation’’. 

8 (b) 10 PERCENT LIMITATION ON APPLICATION OF

9 GAIN ON SALE OF S CORPORATION STOCK.—Section 

10 1042 is amended by adding at the end the following new 

11 subsection: 

12 ‘‘(h) APPLICATION OF SECTION TO SALE OF STOCK

13 IN S CORPORATION.—In the case of the sale of qualified 

14 securities of an S corporation, the election under sub15 section (a) may be made with respect to not more than 

16 10 percent of the amount realized on such sale for pur17 poses of determining the amount of gain not recognized 

18 and the extent to which (if at all) the amount realized 

19 on such sale exceeds the cost of qualified replacement 

20 property. The portion of adjusted basis that is properly 

21 allocable to the portion of the amount realized with respect 

22 to which the election is made under this subsection shall 

23 be taken into account for purposes of the preceding sen24 tence.’’. 

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

26 this section shall apply to sales after December 31, 2027. 


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1 TITLE VII—NOTICES 

2 SEC. 701. REVIEW AND REPORT TO CONGRESS RELATING 

3 TO REPORTING AND DISCLOSURE REQUIRE4 MENTS. 

5 (a) STUDY.—As soon as practicable after the date of 

6 enactment of this Act, the Secretary of Labor, the Sec7 retary of the Treasury, and the Director of the Pension 

8 Benefit Guaranty Corporation shall review the reporting 

9 and disclosure requirements as applicable to each such 

10 agency head, of— 

11 (1) the Employee Retirement Income Security 

12 Act of 1974 applicable to pension plans (as defined 

13 in section 3(2) of such Act (29 U.S.C. 1002(2)); and 

14 (2) the Internal Revenue Code of 1986 applica15 ble to qualified retirement plans (as defined in sec16 tion 4974(c) of such Code, without regard to para17 graphs (4) and (5) of such section). 

18 (b) REPORT.— 

19 (1) IN GENERAL.—Not later than 2 years after 

20 the date of enactment of this Act, the Secretary of 

21 Labor, the Secretary of the Treasury, and the Direc22 tor of the Pension Benefit Guaranty Corporation, 

23 jointly, and after consultation with a balanced group 

24 of participant and employer representatives, shall 

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1 port on the effectiveness of the applicable reporting 

2 and disclosure requirements and make such rec3 ommendations as may be appropriate to the Com4 mittee on Education and Labor and the Committee 

5 on Ways and Means of the House of Representatives 

6 and the Committee on Health, Education, Labor, 

7 and Pensions and the Committee on Finance of the 

8 Senate to consolidate, simplify, standardize, and im9 prove such requirements so as to simplify reporting 

10 for such plans and ensure that plans can furnish 

11 and participants and beneficiaries timely receive and 

12 better understand the information they need to mon13 itor their plans, plan for retirement, and obtain the 

14 benefits they have earned. 

15 (2) ANALYSIS OF EFFECTIVENESS.—To assess 

16 the effectiveness of the applicable reporting and dis17 closure requirements, the report shall include an 

18 analysis, based on plan data, of how participants 

19 and beneficiaries are providing preferred contact in20 formation, the methods by which plan sponsors and 

21 plans are furnishing disclosures, and the rate at 

22 which participants and beneficiaries (grouped by key 

23 demographics) are receiving, accessing, under24 standing, and retaining disclosures. 


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1 (3) COLLECTION OF INFORMATION.—The agen2 cies shall conduct appropriate surveys and data col3 lection to obtain any needed information. 

4 SEC. 702. REPORT TO CONGRESS ON SECTION 402(F) NO5 TICES. 

6 Not later than 18 months after the date of the enact7 ment of this Act, the Comptroller General of the United 

8 States shall submit a report to the Committees on Finance 

9 and Health, Education, Labor, and Pensions of the Senate 

10 and the Committees on Ways and Means and Education 

11 and Labor of the House of Representatives on the notices 

12 provided by retirement plan administrators to plan partici13 pants under section 402(f) of the Internal Revenue Code 

14 of 1986. The report shall analyze the effectiveness of such 

15 notices and make recommendations, as warranted by the 

16 findings, to facilitate better understanding by recipients 

17 of different distribution options and corresponding tax 

18 consequences, including spousal rights. 

19 SEC. 703. ELIMINATING UNNECESSARY PLAN REQUIRE20 MENTS RELATED TO UNENROLLED PARTICI21 PANTS. 

22 (a) IN GENERAL.—Section 414, as amended by this 

23 Act, is further amended by adding at the end the following 

24 new subsection: 


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1 ‘‘(bb) ELIMINATING UNNECESSARY PLAN REQUIRE2 MENTS RELATED TO UNENROLLED PARTICIPANTS.— 

3 ‘‘(1) IN GENERAL.—Notwithstanding any other 

4 provision of this title, with respect to any defined 

5 contribution plan, no disclosure, notice, or other plan 

6 document (other than the notices and documents de7 scribed in subparagraphs (A) and (B)) shall be re8 quired to be furnished under this title to any 

9 unenrolled participant if the unenrolled participant 

10 receives— 

11 ‘‘(A) an annual reminder notice of such 

12 participant’s eligibility to participate in such 

13 plan and any applicable election deadlines under 

14 the plan, and 

15 ‘‘(B) any document requested by such par16 ticipant which the participant would be entitled 

17 to receive notwithstanding this subsection. 

18 ‘‘(2) UNENROLLED PARTICIPANT.—For pur19 poses of this subsection, the term ‘unenrolled partici20 pant’ means an employee who— 

21 ‘‘(A) is eligible to participate in a defined 

22 contribution plan, 

23 ‘‘(B) has received— 

24 ‘‘(i) the summary plan description 

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1 ployee Retirement Income Security Act of 

2 1974, and 

3 ‘‘(ii) any other notices related to eligi4 bility under the plan which are required to 

5 be furnished under this title or the Em6 ployee Retirement Income Security Act of 

7 1974 in connection with such participant’s 

8 initial eligibility to participate in such plan, 

9 ‘‘(C) is not participating in such plan, 

10 ‘‘(D) does not have an account balance in 

11 the plan, and 

12 ‘‘(E) satisfies such other criteria as the 

13 Secretary may determine appropriate, as pre14 scribed in guidance issued in consultation with 

15 the Secretary of Labor. 

16 For purposes of this subsection, any eligibility to 

17 participate in the plan following any period for 

18 which such employee was not eligible to participate 

19 shall be treated as initial eligibility. 

20 ‘‘(3) ANNUAL REMINDER NOTICE.—For pur21 poses of this subsection, the term ‘annual reminder 

22 notice’ means the notice described in section 111(c) 

23 of the Employee Retirement Income Security Act of 

24 1974.’’. 


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

2 this section shall apply to plan years beginning after the 

3 date of the enactment of this Act. 

4 TITLE VIII—TECHNICAL 

5 MODIFICATIONS 

6 SEC. 801. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 

7 DISTRIBUTION LIMITED TO 3 YEARS. 

8 (a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) is 

9 amended by striking ‘‘may make’’ and inserting ‘‘may, at 

10 any time during the 3-year period beginning on the day 

11 after the date on which such distribution was received, 

12 make’’. 

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

14 this section shall take effect as if included in the enact15 ment of section 113 of the Setting Every Community Up 

16 for Retirement Enhancement Act of 2019. 

17 SEC. 802. AMENDMENTS RELATING TO SETTING EVERY 

18 COMMUNITY UP FOR RETIREMENT ENHANCE19 MENT ACT OF 2019. 

20 (a) TECHNICAL AMENDMENTS.— 

21 (1) AMENDMENTS RELATING TO SECTION

22 103.—Section 401(m)(12) is amended by striking 

23 ‘‘and’’ at the end of subparagraph (A), by redesig24 nating subparagraph (B) as subparagraph (C), and 


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1 by inserting after subparagraph (A) (as so amended) 

2 the following new subparagraph: 

3 ‘‘(B) meets the notice requirements of sub4 section (k)(13)(E), and’’. 

5 (2) AMENDMENTS RELATING TO SECTION

6 112.— 

7 (A) Section 401(k)(15)(B)(i)(II), as 

8 amended by this Act, is further amended by 

9 striking ‘‘subsection (m)(2)’’ and inserting 

10 ‘‘paragraphs (2), (11), and (12) of subsection 

11 (m)’’. 

12 (B) Section 401(k)(15)(B)(iii) is amended 

13 by striking ‘‘under the arrangement’’ and in14 serting ‘‘under the plan’’. 

15 (C) Section 401(k)(15)(B)(iv) is amended 

16 by striking ‘‘section 410(a)(1)(A)(ii)’’ and in17 serting ‘‘paragraph (2)(D)’’. 

18 (3) AMENDMENT RELATING TO SECTION 116.— 

19 Section 4973(b) is amended by adding at the end of 

20 the flush matter the following: ‘‘Such term shall not 

21 include any designated nondeductible contribution 

22 (as defined in subparagraph (C) of section 

23 408(o)(2)) which does not exceed the nondeductible 

24 limit under subparagraph (B) thereof by reason of 

25 an election under section 408(o)(5).’’. 


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1 (b) CLERICAL AMENDMENTS.— 

2 (1) Section 72(t)(2)(H)(vi)(IV) is amended by 

3 striking ‘‘403(b)(7)(A)(ii)’’ and inserting ‘‘ 

4 403(b)(7)(A)(i)’’. 

5 (2) Section 401(k)(12)(G) is amended by strik6 ing ‘‘the requirements under subparagraph (A)(i)’’ 

7 and inserting ‘‘the contribution requirements under 

8 subparagraph (B) or (C)’’. 

9 (3) Section 401(k)(13)(D)(iv) is amended by 

10 striking ‘‘and (F)’’ and inserting ‘‘and (G)’’. 

11 (4) Section 408(o)(5)(A) is amended by striking 

12 ‘‘subsection (b)’’ and inserting ‘‘section 219(b)’’. 

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

14 this section shall take effect as if included in section of 

15 the Setting Every Community Up for Retirement En16 hancement Act of 2019 to which the amendment relates. 

17 SEC. 803. MODIFICATION OF REQUIRED MINIMUM DIS18 TRIBUTION RULES FOR SPECIAL NEEDS 

19 TRUSTS. 

20 (a) IN GENERAL.—Section 401(a)(9)(H)(iv)(II) is 

21 amended by striking ‘‘no individual’’ and inserting ‘‘no 

22 beneficiary’’. 

23 (b) CONFORMING AMENDMENT.—Section 

24 401(a)(9)(H)(v) is amended by adding at the end the fol25 lowing flush sentence: 


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1 ‘‘For purposes of the preceding sentence, 

2 in the case of a trust the terms of which 

3 are described in clause (iv)(II), any bene4 ficiary which is an organization described 

5 in section 408(d)(8)(B)(i) shall be treated 

6 as a designated beneficiary described in 

7 subclause (II).’’. 

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

9 this section shall apply to calendar years beginning after 

10 the date of the enactment of this Act. 

11 TITLE IX—PLAN AMENDMENTS 

12 SEC. 901. PROVISIONS RELATING TO PLAN AMENDMENTS. 

13 (a) IN GENERAL.—If this section applies to any re14 tirement plan or contract amendment— 

15 (1) such retirement plan or contract shall be 

16 treated as being operated in accordance with the 

17 terms of the plan during the period described in sub18 section (b)(2)(A); and 

19 (2) to the extent provided by the Secretary of 

20 the Treasury (or the Secretary’s delegate), such re21 tirement plan shall not fail to meet the requirements 

22 of section 411(d)(6) of the Internal Revenue Code of 

23 1986 and section 204(g) of the Employee Retire24 ment Income Security Act of 1974 by reason of such 

25 amendment. 


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1 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

2 (1) IN GENERAL.—This section shall apply to 

3 any amendment to any retirement plan or annuity 

4 contract which is made— 

5 (A) pursuant to any amendment made by 

6 this Act or pursuant to any regulation issued by 

7 the Secretary of the Treasury or the Secretary 

8 of Labor (or a delegate of either such Sec9 retary) under this Act; and 

10 (B) on or before the last day of the first 

11 plan year beginning on or after January 1, 

12 2024, or such later date as the Secretary of the 

13 Treasury may prescribe. 

14 In the case of a governmental plan (as defined in 

15 section 414(d) of the Internal Revenue Code of 

16 1986), or an applicable collectively bargained plan, 

17 this paragraph shall be applied by substituting 

18 ‘‘2026’’ for ‘‘2024’’. For purposes of the preceding 

19 sentence, the term ‘‘applicable collectively bargained 

20 plan’’ means a plan maintained pursuant to 1 or 

21 more collective bargaining agreements between em22 ployee representatives and 1 or more employers rati23 fied before the date of enactment of this Act. 

24 (2) CONDITIONS.—This section shall not apply 

25 to any amendment unless— 


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1 (A) during the period— 

2 (i) beginning on the date the legisla3 tive or regulatory amendment described in 

4 paragraph (1)(A) takes effect (or in the 

5 case of a plan or contract amendment not 

6 required by such legislative or regulatory 

7 amendment, the effective date specified by 

8 the plan); and 

9 (ii) ending on the date described in 

10 paragraph (1)(B) (as modified by the sec11 ond sentence of paragraph (1)) (or, if ear12 lier, the date the plan or contract amend13 ment is adopted), 

14 the plan or contract is operated as if such plan 

15 or contract amendment were in effect; and 

16 (B) such plan or contract amendment ap17 plies retroactively for such period. 

18 (c) COORDINATION WITH OTHER PROVISIONS RE19 LATING TO PLAN AMENDMENTS.— 

20 (1) SECURE ACT.—Section 601(b)(1) of the 

21 Setting Every Community Up for Retirement En22 hancement Act of 2019 is amended— 

23 (A) by striking ‘‘January 1, 2022’’ in sub24 paragraph (B) and inserting ‘‘January 1, 

25 2024’’, and 


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1 (B) by striking ‘‘substituting ‘2024’ for 

2 ‘2022’.’’ in the flush matter at the end and in3 serting ‘‘substituting ‘2026’ for ‘2024’.’’. 

4 (2) CARES ACT.— 

5 (A) SPECIAL RULES FOR USE OF RETIRE6 MENT FUNDS.—Section 2202(c)(2)(A) of the 

7 CARES Act is amended by striking ‘‘January 

8 1, 2022’’ in clause (ii) and inserting ‘‘January 

9 1, 2024’’. 

10 (B) TEMPORARY WAIVER OF REQUIRED

11 MINIMUM DISTRIBUTIONS RULES FOR CERTAIN

12 RETIREMENT PLANS AND ACCOUNTS.—Section 

13 2203(c)(2)(B)(i) of the CARES Act is amend14 ed— 

15 (i) by striking ‘‘January 1, 2022’’ in 

16 subclause (II) and inserting ‘‘January 1, 

17 2024’’, and 

18 (ii) by striking ‘‘substituting ‘2024’ 

19 for ‘2022’.’’ in the flush matter at the end 

20 and inserting ‘‘substituting ‘2026’ for 

21 ‘2024’.’’. 

22 (C) TAXPAYER CERTAINTY AND DISASTER

23 TAX RELIEF ACT OF 2020.—Section 

24 302(d)(2)(A) of the Taxpayer Certainty and 

25 Disaster Tax Relief Act of 2020 is amended by 


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1 striking ‘‘January 1, 2022’’ in clause (ii) and 

2 inserting ‘‘January 1, 2024’’. 

3 TITLE X—TAX COURT 

4 RETIREMENT PROVISIONS 

5 SEC. 1001. PROVISIONS RELATING TO JUDGES OF THE TAX 

6 COURT. 

7 (a) THRIFT SAVINGS PLAN CONTRIBUTIONS FOR

8 JUDGES IN THE FEDERAL EMPLOYEES RETIREMENT

9 SYSTEM.— 

10 (1) IN GENERAL.—Subsection (j)(3)(B) of sec11 tion 7447 is amended to read as follows: 

12 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

13 JUDGE.—No contributions under section 

14 8432(c) of title 5, United States Code, shall be 

15 made for the benefit of a judge who has filed 

16 an election to receive retired pay under sub17 section (e).’’. 

18 (2) OFFSET.—Paragraph (3) of section 7447(j) 

19 is amended by adding at the end the following new 

20 subparagraph: 

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

22 receives a distribution from the Thrift Savings 

23 Plan and who later receives retired pay under 

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

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1 tion which represents the Government’s con2 tribution to the individual’s Thrift Savings Ac3 count during years of service as a full-time judi4 cial officer under the Federal Employees Retire5 ment System, without regard to earnings attrib6 utable to such amount. Where such an offset 

7 would exceed 50 percent of the retired pay to 

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

9 divided equally over the first 2 years in which 

10 the individual receives the annuity.’’. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to basic pay earned 

13 while serving as a judge of the United States Tax 

14 Court on or after the date of the enactment of this 

15 Act. 

16 (b) CHANGE IN VESTING PERIOD FOR SURVIVOR AN17 NUITIES AND WAIVER OF VESTING PERIOD IN THE

18 EVENT OF ASSASSINATION.— 

19 (1) ELIGIBILITY IN CASE OF DEATH.—Sub20 section (h) of section 7448 is amended to read as 

21 follows: 

22 ‘‘(h) ENTITLEMENT TO ANNUITY.— 

23 ‘‘(1) IN GENERAL.— 

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

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1 graph (2) is survived by a surviving spouse but 

2 not by a dependent child, there shall be paid to 

3 such surviving spouse an annuity beginning 

4 with the day of the death of the judge or special 

5 trial judge or following the surviving spouse’s 

6 attainment of age 50, whichever is the later, in 

7 an amount computed as provided in subsection 

8 (m). 

9 ‘‘(B) ANNUITY TO SURVIVING SPOUSE AND

10 CHILD.—If a judge or special trial judge de11 scribed in paragraph (2) is survived by a sur12 viving spouse and dependent child or children, 

13 there shall be paid to such surviving spouse an 

14 annuity, beginning on the day of the death of 

15 the judge or special trial judge, in an amount 

16 computed as provided in subsection (m), and 

17 there shall also be paid to or on behalf of each 

18 such child an immediate annuity equal to the 

19 lesser of— 

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

21 salary of such judge or special trial judge 

22 (determined in accordance with subsection 

23 (m)), or 


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1 ‘‘(ii) 20 percent of such average an2 nual salary, divided by the number of such 

3 children. 

4 ‘‘(C) ANNUITY TO SURVIVING DEPENDENT

5 CHILDREN.—If a judge or special trial judge 

6 described in paragraph (2) leaves no surviving 

7 spouse but leaves a surviving dependent child or 

8 children, there shall be paid to or on behalf of 

9 each such child an immediate annuity equal to 

10 the lesser of— 

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

12 salary of such judge or special trial judge 

13 (determined in accordance with subsection 

14 (m)), or 

15 ‘‘(ii) 40 percent of such average an16 nual salary divided by the number of such 

17 children. 

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

19 to any judge or special trial judge electing under 

20 subsection (b)— 

21 ‘‘(A) who dies while a judge or special trial 

22 judge after having rendered at least 18 months 

23 of civilian service computed as prescribed in 

24 subsection (n), for the last 18 months of which 

25 the salary deductions provided for by subsection 


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1 (c)(1) or the deposits required by subsection (d) 

2 have actually been made or the salary deduc3 tions required by the civil service retirement 

4 laws have actually been made, or 

5 ‘‘(B) who dies by assassination after hav6 ing rendered less than 18 months of civilian 

7 service computed as prescribed in subsection (n) 

8 if, for the period of such service, the salary de9 ductions provided for by subsection (c)(1) or 

10 the deposits required by subsection (d) have ac11 tually been made. 

12 ‘‘(3) TERMINATION OF ANNUITY.— 

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

14 payable to a surviving spouse under this sub15 section shall be terminable upon such surviving 

16 spouse’s death or such surviving spouse’s re17 marriage before attaining age 55. 

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

19 payable to a child under this subsection shall be 

20 terminable upon the earliest of— 

21 ‘‘(i) the child’s attainment of age 18, 

22 ‘‘(ii) the child’s marriage, or 

23 ‘‘(iii) the child’s death, 

24 except that if such child is incapable of self-sup25 port by reason of mental or physical disability 


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1 the child’s annuity shall be terminable only 

2 upon death, marriage, or recovery from such 

3 disability. 

4 ‘‘(C) DEPENDENT CHILD AFTER DEATH

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

6 a surviving spouse of a judge or special trial 

7 judge leaving a dependent child or children of 

8 the judge or special trial judge surviving such 

9 spouse, the annuity of such child or children 

10 shall be recomputed and paid as provided in 

11 paragraph (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 special trial judge shall be recomputed and paid 

19 as though the child whose annuity was so ter20 minated had not survived such judge. 

21 ‘‘(E) SPECIAL RULE FOR ASSASSINATED

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

23 or special trial judge described in paragraph 

24 (2)(B), there shall be deducted from the annu25 ities otherwise payable under this section an 


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1 amount equal to the amount of salary deduc2 tions that would have been made if such deduc3 tions had been made for 18 months prior to the 

4 death of the judge or special trial judge.’’. 

5 (2) DEFINITION OF ASSASSINATION.—Section 

6 7448(a) is amended by adding at the end the fol7 lowing new paragraph: 

8 ‘‘(10) The terms ‘assassinated’ and ‘assassina9 tion’ mean the killing of a judge or special trial 

10 judge that is motivated by the performance by the 

11 judge or special trial judge of his or her official du12 ties.’’. 

13 (3) DETERMINATION OF ASSASSINATION.—Sub14 section (i) of section 7448 is amended— 

15 (A) by striking ‘‘OF DEPENDENCY AND

16 DISABILITY.—Questions’’ and inserting ‘‘BY

17 CHIEF JUDGE.— 

18 ‘‘(1) DEPENDENCY AND DISABILITY.—Ques19 tions’’, and 

20 (B) by adding at the end the following new 

21 paragraph: 

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

23 determine whether the killing of a judge or special 

24 trial judge was an assassination, subject to review 

25 only by the Tax Court. The head of any Federal 


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1 agency that investigates the killing of a judge or 

2 special trial judge shall provide to the chief judge 

3 any information that would assist the chief judge in 

4 making such a determination.’’. 

5 (4) COMPUTATION OF ANNUITIES.—Subsection 

6 (m) of section 7448 is amended— 

7 (A) by striking ‘‘ANNUITIES.—The annu8 ity’’ and inserting ‘‘ANNUITIES.— 

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (2), the annuity’’, 

11 (B) by striking ‘‘the sum of (1) 1.5 per12 cent’’ and inserting ‘‘the sum of— 

13 ‘‘(A) 1.5 percent’’, 

14 (C) by striking ‘‘and (2) three-fourths of 1 

15 percent’’ and inserting ‘‘and 

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

17 (D) by striking ‘‘prior allowable service, ex18 cept that’’ and inserting ‘‘prior allowable serv19 ice, 

20 ‘‘except that’’, and 

21 (E) by adding at the end the following new 

22 paragraph: 

23 ‘‘(2) SERVICE OF LESS THAN 3 YEARS.—In the 

24 case of a judge or special trial judge who has served 

25 less than 3 years, the annuity of the surviving 


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1 spouse of such judge or special trial judge shall be 

2 based upon the average annual salary received by 

3 such judge or special trial judge for judicial service 

4 prior to the death of the judge or special trial 

5 judge.’’. 

6 (5) OTHER BENEFITS.—Section 7448 is amend7 ed by adding at the end the following new sub8 section: 

9 ‘‘(u) OTHER BENEFITS IN CASE OF ASSASSINA10 TION.—In the case of a judge or special trial judge who 

11 is assassinated, an annuity shall be paid under this section 

12 notwithstanding a survivor’s eligibility for or receipt of 

13 benefits under chapter 81 of title 5, United States Code, 

14 except that the annuity for which a surviving spouse is 

15 eligible under this section shall be reduced to the extent 

16 that the total benefits paid under this section and chapter 

17 81 of that title for any year would exceed the current sal18 ary for that year of the office of the judge or special trial 

19 judge.’’. 

20 (c) COORDINATION OF RETIREMENT AND SURVIVOR

21 ANNUITY WITH THE FEDERAL EMPLOYEES RETIREMENT

22 SYSTEM.— 

23 (1) RETIREMENT.—Section 7447 is amended— 


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1 (A) by striking ‘‘section 8331(8)’’ in sub2 section (g)(2)(C) and inserting ‘‘sections 

3 8331(8) and 8401(19)’’, and 

4 (B) by striking ‘‘Civil Service Commission’’ 

5 both places it appears in subsection (i)(2) and 

6 inserting ‘‘Office of Personnel Management’’. 

7 (2) ANNUITIES TO SURVIVING SPOUSES AND

8 DEPENDENT CHILDREN.—Section 7448 is amend9 ed— 

10 (A) by striking ‘‘section 8332’’ in sub11 section (d) and inserting ‘‘sections 8332 and 

12 8411’’, and 

13 (B) by striking ‘‘section 8332’’ in sub14 section (n) and inserting ‘‘sections 8332 and 

15 8411’’. 

16 (d) LIMIT ON TEACHING COMPENSATION OF RE17 TIRED JUDGES.— 

18 (1) IN GENERAL.—Section 7447 is amended by 

19 adding at the end the following new subsection: 

20 ‘‘(k) TEACHING COMPENSATION OF RETIRED

21 JUDGES.—For purposes of the limitation under section 

22 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 

23 App.), any compensation for teaching approved under sec24 tion 502(a)(5) of such Act shall not be treated as outside 

25 earned income when received by a judge of the United 


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

2 for teaching performed during any calendar year for which 

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

4 as certified by the chief judge.’’. 

5 (2) EFFECTIVE DATE.—The amendment made 

6 by this subsection shall apply to any individual serv7 ing as a retired judge of the United States Tax 

8 Court on or after the date of the enactment of this 

9 Act. 

10 (e) EFFECTIVE DATE.—Except as otherwise pro11 vided, the amendments made by this section shall take ef12 fect on the date of the enactment of this Act. 

13 SEC. 1002. PROVISIONS RELATING TO SPECIAL TRIAL 

14 JUDGES OF THE TAX COURT. 

15 (a) RETIREMENT AND RECALL FOR SPECIAL TRIAL

16 JUDGES.—Part I of subchapter C of chapter 76 is amend17 ed by inserting after section 7447 the following new sec18 tion: 

19 ‘‘SEC. 7447A. RETIREMENT FOR SPECIAL TRIAL JUDGES. 

20 ‘‘(a) IN GENERAL.— 

21 ‘‘(1) RETIREMENT.—Any special trial judge ap22 pointed pursuant to section 7443A may retire from 

23 service as a special trial judge if the individual meets 

24 the age and service requirements set forth in the fol25 lowing table: 


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‘‘If the special trial judge has attained age: And the years of service as a 

special trial judge are at least: 

65 15 

66 14 

67 13 

68 12 

69 11 

70 10. 

1 ‘‘(2) LENGTH OF SERVICE.—In making any de2 termination of length of service as a special trial 

3 judge there shall be included all periods (whether or 

4 not consecutive) during which an individual served 

5 as a special trial judge 

6 ‘‘(b) RETIREMENT UPON DISABILITY.—Any special 

7 trial judge appointed pursuant to section 7443A who be8 comes permanently disabled from performing such individ9 ual’s duties shall retire from service as a special trial 

10 judge. 

11 ‘‘(c) RECALLING OF RETIRED SPECIAL TRIAL

12 JUDGES.—Any individual who has retired pursuant to 

13 subsection (a) may be called upon by the chief judge to 

14 perform such judicial duties with the Tax Court as may 

15 be requested of such individual for a period or periods 

16 specified by the chief judge, except that in the case of any 

17 such 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 


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1 ‘‘(2) such individual shall be relieved of per2 forming such duties during any period in which ill3 ness or disability precludes the performance of such 

4 duties. 

5 Any act, or failure to act, by an individual performing ju6 dicial duties pursuant to this subsection shall have the 

7 same force and effect as if it were the act (or failure to 

8 act) of a special trial judge. Any individual who is per9 forming judicial duties pursuant to this subsection shall 

10 be paid the same compensation (in lieu of retired pay) and 

11 allowances for travel and other expenses as a special trial 

12 judge. 

13 ‘‘(d) RETIRED PAY.— 

14 ‘‘(1) IN GENERAL.—Any individual who retires 

15 pursuant to subsection (a) and elects under sub16 section (e) to receive retired pay under this sub17 section shall receive retired pay during any period of 

18 retirement from service as a special trial judge at a 

19 rate which bears the same ratio to the rate of the 

20 salary payable to a special trial judge during such 

21 period as— 

22 ‘‘(A) the number of years such individual 

23 has served as special trial judge bears to, 

24 ‘‘(B) 15, 


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1 except that the rate of such retired pay shall not be 

2 more than the rate of such salary for such period. 

3 ‘‘(2) RETIREMENT UPON DISABILITY.—Any in4 dividual who retires pursuant to subsection (b) and 

5 elects under subsection (e) to receive retired pay 

6 under this subsection shall receive retired pay during 

7 any period of retirement from service as a special 

8 trial judge— 

9 ‘‘(A) at a rate equal to the rate of the sal10 ary payable to a special trial judge during such 

11 period, if the individual had at least 10 years 

12 of service as a special trial judge before retire13 ment, and 

‘‘(B) at a rate equal to 1 14 ⁄2 the rate de15 scribed in subparagraph (A), if the individual 

16 had fewer than 10 years of service as a special 

17 trial judge before retirement. 

18 ‘‘(3) BEGINNING DATE AND PAYMENT.—Retired 

19 pay under this subsection shall begin to accrue on 

20 the day following the date on which the individual’s 

21 salary as a special trial judge ceases to accrue, and 

22 shall continue to accrue during the remainder of 

23 such individual’s life. Retired pay under this sub24 section shall be paid in the same manner as the sal25 ary of a special trial judge. 


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1 ‘‘(4) PARTIAL YEARS.—In computing the rate 

2 of the retired pay for an individual to whom para3 graph (1) applies, any portion of the aggregate num4 ber of years such individual has served as a special 

5 trial judge which is a fractional part of 1 year shall 

6 be eliminated if it is less than 6 months, or shall be 

7 counted as a full year if it is 6 months or more. 

8 ‘‘(5) RECALLED SERVICE.—In computing the 

9 rate of the retired pay for an individual to whom 

10 paragraph (1) applies, any period during which such 

11 individual performs services under subsection (c) on 

12 a substantially full-time basis shall be treated as a 

13 period during which such individual has served as a 

14 special trial judge. 

15 ‘‘(e) ELECTION TO RECEIVE RETIRED PAY.—Any 

16 special trial judge may elect to receive retired pay under 

17 subsection (d). Such an election— 

18 ‘‘(1) may be made only while an individual is a 

19 special trial judge (except that in the case of an in20 dividual who fails to be reappointed as a special trial 

21 judge, such election may be made within 60 days 

22 after such individual leaves office as a special trial 

23 judge), 

24 ‘‘(2) once made, shall be irrevocable, and 


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1 ‘‘(3) shall be made by filing notice thereof in 

2 writing with the chief judge. 

3 The chief judge shall transmit to the Office of Personnel 

4 Management a copy of each notice filed with the chief 

5 judge under this subsection. 

6 ‘‘(f) OTHER RULES MADE APPLICABLE.—The rules 

7 of subsections (f), (g), (h), (i), and (j) of section 7447 

8 shall apply to a special trial judge in the same manner 

9 as a judge of the Tax Court. For purposes of the preceding 

10 sentence, any reference to the President in such sub11 sections shall be applied as if it were a reference to the 

12 chief judge.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 3121(b)(5)(E) is amended by in15 serting ‘‘or special trial judge’’ before ‘‘of the United 

16 States Tax Court’’. 

17 (2) Section 7448(b)(2) is amended to read as 

18 follows: 

19 ‘‘(2) SPECIAL TRIAL JUDGES.—Any special trial 

20 judge may by written election filed with the chief 

21 judge elect the application of this section. Such elec22 tion shall be filed while such individual is a special 

23 trial judge.’’. 

24 (3) Section 210(a)(5)(E) of the Social Security 

25 Act (42 U.S.C. 410(a)(5)(E)) is amended by insertVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00244 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ing ‘‘or special trial judge’’ before ‘‘of the United 

2 States Tax Court’’. 

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

4 for part I of subchapter C of chapter 76 is amended by 

5 inserting after the item relating to section 7447 the fol6 lowing new item: 

‘‘Sec. 7447A. Retirement for special trial judges.’’. 

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

8 this section shall take effect on the date of the enactment 

9 of this Act. 

10 TITLE XI—REVENUE 

11 PROVISIONS 

12 SEC. 1101. SIMPLE AND SEP ROTH IRAS. 

13 (a) IN GENERAL.—Section 408A is amended by 

14 striking subsection (f). 

15 (b) RULES RELATING TO SIMPLIFIED EMPLOYEE

16 PENSIONS.— 

17 (1) CONTRIBUTIONS.—Section 402(h)(1) is 

18 amended by striking ‘‘and’’ at the end of subpara19 graph (A), by striking the period at the end of sub20 paragraph (B) and inserting ‘‘, and’’, and by adding 

21 at the end the following new subparagraph: 

22 ‘‘(C) in the case of any contributions pur23 suant to a simplified employer pension which 

24 are made to an individual retirement plan desVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00245 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ignated as a Roth IRA, such contribution shall 

2 not be excludable from gross income.’’. 

3 (2) DISTRIBUTIONS.—Section 402(h)(3) is 

4 amended by inserting ‘‘, or section 408A(d) in the 

5 case of an individual retirement plan designated as 

6 a Roth IRA’’ before the period at the end. 

7 (3) ELECTION REQUIRED.—Section 408(k) is 

8 amended by redesignating paragraphs (7), (8), and 

9 (9) as paragraphs (8), (9), and (10), respectively, 

10 and by inserting after paragraph (6) the following 

11 new paragraph: 

12 ‘‘(7) ROTH CONTRIBUTION ELECTION.—An in13 dividual retirement plan which is designated as a 

14 Roth IRA shall not be treated as a simplified em15 ployee pension under this subsection unless the em16 ployee elects for such plan to be so treated (at such 

17 time and in such manner as the Secretary may pro18 vide).’’. 

19 (c) RULES RELATING TO SIMPLE RETIREMENT AC20 COUNTS.— 

21 (1) ELECTION REQUIRED.—Section 408(p), as 

22 amended by this Act, is further amended by adding 

23 at the end the following new paragraph: 

24 ‘‘(13) ROTH CONTRIBUTION ELECTION.—An in25 dividual retirement plan which is designated as a 


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1 Roth IRA shall not be treated as a simple retirement 

2 account under this subsection unless the employee 

3 elects for such plan to be so treated (at such time 

4 and in such manner as the Secretary may pro5 vide).’’. 

6 (2) ROLLOVERS.—Section 408A(e) is amended 

7 by adding at the end the following new paragraph: 

8 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 

9 case of any payment or distribution out of a simple 

10 retirement account (as defined in section 408(p)) 

11 with respect to which an election has been made 

12 under section 408(p)(13) and to which 72(t)(6)(A) 

13 applies, the term ‘qualified rollover contribution’ 

14 shall not include any payment or distribution paid 

15 into an account other than another simple retire16 ment account (as so defined).’’. 

17 (d) COORDINATION WITH ROTH CONTRIBUTION LIM18 ITATION.—Section 408A(c) is amended by adding at the 

19 end the following new paragraph: 

20 ‘‘(7) COORDINATION WITH LIMITATION FOR

21 SIMPLE RETIREMENT PLANS AND SEPS.—In the case 

22 of an individual on whose behalf contributions are 

23 made to a simple retirement account or a simplified 

24 employee pension, the amount described in para25 graph (2)(A) shall be increased by an amount equal 


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1 to the contributions made on the individual’s behalf 

2 to such account or pension for the taxable year, but 

3 only to the extent such contributions— 

4 ‘‘(A) in the case of a simplified retirement 

5 account— 

6 ‘‘(i) do not exceed the sum of the dol7 lar amount in effect for the taxable year 

8 under section 408(p)(2)(A)(ii) and the em9 ployer contribution required under sub10 paragraph (A)(iii) or (B)(i), as the case 

11 may be, of section 408(p)(2), and 

12 ‘‘(ii) do not cause the elective defer13 rals (as defined in section 402(g)(3)) on 

14 behalf of such individual to exceed the lim15 itation under section 402(g)(1) (taking 

16 into account any additional elective defer17 rals permitted under section 414(v)), or 

18 ‘‘(B) in the case of a simplified employee 

19 pension, do not exceed the limitation in effect 

20 under section 408(j).’’. 

21 (e) CONFORMING AMENDMENT.—Section 

22 408A(d)(2)(B) is amended by inserting ‘‘, or employer in 

23 the case of a simple retirement account (as defined in sec24 tion 408(p)) or simplified employee pension (as defined in 

25 section 408(k)),’’ after ‘‘individual’s spouse’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2023. 

4 SEC. 1102. ELECTIVE DEFERRALS GENERALLY LIMITED TO 

5 REGULAR CONTRIBUTION LIMIT. 

6 (a) APPLICABLE EMPLOYER PLANS.—Section 414(v) 

7 is amended by adding at the end the following new para8 graphs: 

9 ‘‘(7) CERTAIN DEFERRALS MUST BE ROTH CON10 TRIBUTIONS.— 

11 ‘‘(A) IN GENERAL.—Except as provided in 

12 subparagraph (C), in the case of an eligible par13 ticipant whose wages (as defined in section 

14 3121(a)) for the preceding year exceed 

15 $100,000, paragraph (1) shall apply only if any 

16 additional elective deferrals are designated Roth 

17 contributions (as defined in section 

18 402A(c)(1)). 

19 ‘‘(B) ROTH OPTION.—In the case of an ap20 plicable employer plan with respect to which 

21 subparagraph (A) applies to any participant for 

22 a plan year, paragraph (1) shall not apply to 

23 the plan unless the plan provides that any eligi24 ble participant may make the participant’s adVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00249 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 ditional elective deferrals as designated Roth 

2 contributions. 

3 ‘‘(C) EXCEPTION.—Subparagraph (A) 

4 shall not apply in the case of an applicable em5 ployer plan described in paragraph (6)(A)(iv). 

6 ‘‘(D) ELECTION TO CHANGE DEFER7 RALS.—The Secretary may provide by regula8 tions that an eligible participant may elect to 

9 change the participant’s election to make addi10 tional elective deferrals if the participant’s com11 pensation is determined to exceed the limitation 

12 under subparagraph (A) after the election is 

13 made. 

14 ‘‘(8) NO RECHARACTERIZATION OF EXCESS DE15 FERRALS.—If the elective deferrals for any year of 

16 an eligible participant to which paragraph (7)(A) ap17 plies exceed any applicable limitation under this title 

18 (without regard to paragraph (1)) or the terms of 

19 the plan, such excess shall not be treated as addi20 tional elective deferrals to which paragraph (1) ap21 plies.’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 402(g)(1) is amended by striking 

24 subparagraph (C). 


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1 (2) Section 457(e)(18)(A)(ii) is amended by in2 serting ‘‘the lesser of any designated Roth contribu3 tions made by the participant to the plan or’’ before 

4 ‘‘the applicable dollar amount’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2023. 

8 SEC. 1103. OPTIONAL TREATMENT OF EMPLOYER MATCH9 ING OR NONELECTIVE CONTRIBUTIONS AS 

10 ROTH CONTRIBUTIONS. 

11 (a) IN GENERAL.—Section 402A(a) is amended by 

12 redesignating paragraph (2) as paragraph (4), by striking 

13 ‘‘and’’ at the end of paragraph (1), and by inserting after 

14 paragraph (1) the following new paragraphs: 

15 ‘‘(2) any designated Roth contribution which is 

16 made by the employer to the program on the em17 ployee’s behalf on account of the employee’s con18 tribution, elective deferral, or (subject to the require19 ments of section 401(m)(14)) qualified student loan 

20 payment shall be treated as a matching contribution 

21 for purposes of this chapter, except that such con22 tribution shall not be excludable from gross income, 

23 ‘‘(3) any designated Roth contribution which is 

24 made by the employer to the program on the em25 ployee’s behalf and which is a nonelective contribuVerDate Sep 11 2014 20:34 Sep 08, 2022 Jkt 029200 PO 00000 Frm 00251 Fmt 6652 Sfmt 6201 E:\BILLS\S4808.RS S4808

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1 tion shall be fully vested and shall not be excludable 

2 from gross income, and’’. 

3 (b) MATCHING INCLUDED IN QUALIFIED ROTH CON4 TRIBUTION PROGRAM.—Section 402A(b)(1) is amended— 

5 (1) by inserting ‘‘, or to have made on the em6 ployee’s behalf,’’ after ‘‘elect to make’’, and 

7 (2) by inserting ‘‘, or of matching contributions 

8 or nonelective contributions which may otherwise be 

9 made on the employee’s behalf,’’ after ‘‘otherwise eli10 gible to make’’. 

11 (c) DESIGNATED ROTH MATCHING CONTRIBU12 TIONS.—Section 402A(c)(1) is amended by inserting ‘‘, 

13 matching contribution, or nonelective contribution’’ after 

14 ‘‘elective deferral’’. 

15 (d) MATCHING CONTRIBUTION DEFINED.—Section 

16 402A(e) is amended by adding at the end the following: 

17 ‘‘(3) MATCHING CONTRIBUTION.—The term 

18 ‘matching contribution’ means— 

19 ‘‘(A) any matching contribution described 

20 in section 401(m)(4)(A), and 

21 ‘‘(B) any contribution to an eligible de22 ferred compensation plan (as defined in section 

23 457(b)) by an eligible employer described in 

24 section 457(e)(1)(A) on behalf of an employee 


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1 and on account of such employee’s elective de2 ferral under such plan, 

3 but only if such contribution is fully vested at the 

4 time received.’’. 

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

6 this section shall apply to contributions made after De7 cember 31, 2022. 

8 SEC. 1104. CHARITABLE CONSERVATION EASEMENTS. 

9 (a) IN GENERAL.—Section 170(h) is amended by 

10 adding at the end the following new paragraph: 

11 ‘‘(7) LIMITATION ON DEDUCTION FOR QUALI12 FIED CONSERVATION CONTRIBUTIONS MADE BY

13 PASS-THROUGH ENTITIES.— 

14 ‘‘(A) IN GENERAL.—A contribution by a 

15 partnership (whether directly or as a distribu16 tive share of a contribution of another partner17 ship) shall not be treated as a qualified con18 servation contribution for purposes of this sec19 tion if the amount of such contribution exceeds 

20 2.5 times the sum of each partner’s relevant 

21 basis in such partnership. 

22 ‘‘(B) RELEVANT BASIS.—For purposes of 

23 this paragraph— 

24 ‘‘(i) IN GENERAL.—The term ‘relevant 

25 basis’ means, with respect to any partner, 


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1 the portion of such partner’s modified 

2 basis in the partnership which is allocable 

3 (under rules similar to the rules of section 

4 755) to the portion of the real property 

5 with respect to which the contribution de6 scribed in subparagraph (A) is made. 

7 ‘‘(ii) MODIFIED BASIS.—The term 

8 ‘modified basis’ means, with respect to any 

9 partner, such partner’s adjusted basis in 

10 the partnership as determined— 

11 ‘‘(I) immediately before the con12 tribution described in subparagraph 

13 (A), 

14 ‘‘(II) without regard to section 

15 752, and 

16 ‘‘(III) by the partnership after 

17 taking into account the adjustments 

18 described in subclauses (I) and (II) 

19 and such other adjustments as the 

20 Secretary may provide. 

21 ‘‘(C) EXCEPTION FOR CONTRIBUTIONS

22 OUTSIDE 3-YEAR HOLDING PERIOD.—Subpara23 graph (A) shall not apply to any contribution 

24 which is made at least 3 years after the latest 

25 of— 


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1 ‘‘(i) the last date on which the part2 nership that made such contribution ac3 quired any portion of the real property 

4 with respect to which such contribution is 

5 made, 

6 ‘‘(ii) the last date on which any part7 ner in the partnership that made such con8 tribution acquired any interest in such 

9 partnership, and 

10 ‘‘(iii) if the interest in the partnership 

11 that made such contribution is held 

12 through 1 or more partnerships— 

13 ‘‘(I) the last date on which any 

14 such partnership acquired any interest 

15 in any other such partnership, and 

16 ‘‘(II) the last date on which any 

17 partner in any such partnership ac18 quired any interest in such partner19 ship. 

20 ‘‘(D) EXCEPTION FOR FAMILY PARTNER21 SHIPS.— 

22 ‘‘(i) IN GENERAL.—Subparagraph (A) 

23 shall not apply with respect to any con24 tribution made by any partnership if sub25 stantially all of the partnership interests in 


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1 such partnership are held, directly or indi2 rectly, by an individual and members of 

3 the family of such individual. 

4 ‘‘(ii) MEMBERS OF THE FAMILY.—For 

5 purposes of this subparagraph, the term 

6 ‘members of the family’ means, with re7 spect to any individual— 

8 ‘‘(I) the spouse of such indi9 vidual, and 

10 ‘‘(II) any individual who bears a 

11 relationship to such individual which 

12 is described in subparagraphs (A) 

13 through (G) of section 152(d)(2). 

14 ‘‘(E) APPLICATION TO OTHER PASS15 THROUGH ENTITIES.—Except as may be other16 wise provided by the Secretary, the rules of this 

17 paragraph shall apply to S corporations and 

18 other pass-through entities in the same manner 

19 as such rules apply to partnerships. 

20 ‘‘(F) REGULATIONS.—The Secretary shall 

21 prescribe such regulations or other guidance as 

22 may be necessary or appropriate to carry out 

23 the purposes of this paragraph, including regu24 lations or other guidance— 


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1 ‘‘(i) to require reporting, including re2 porting related to tiered partnerships and 

3 the modified basis of partners, and 

4 ‘‘(ii) to prevent the avoidance of the 

5 purposes of this paragraph.’’. 

6 (b) APPLICATION OF ACCURACY-RELATED PEN7 ALTIES.— 

8 (1) IN GENERAL.—Section 6662(b) is amended 

9 by inserting after paragraph (9) the following new 

10 paragraph: 

11 ‘‘(10) Any disallowance of a deduction by rea12 son of section 170(h)(7).’’. 

13 (2) TREATMENT AS GROSS VALUATION

14 MISSTATEMENT.—Section 6662(h)(2) is amended by 

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

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

17 and inserting ‘‘, and’’, and by adding at the end the 

18 following new subparagraph: 

19 ‘‘(D) any disallowance of a deduction de20 scribed in subsection (b)(10).’’. 

21 (3) NO REASONABLE CAUSE EXCEPTION.—Sec22 tion 6664(c)(2) is amended by inserting ‘‘or to any 

23 disallowance of a deduction described in section 

24 6662(b)(10)’’ before the period at the end. 


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1 (4) APPROVAL OF ASSESSMENT NOT RE2 QUIRED.—Section 6751(b)(2)(A) is amended by 

3 striking ‘‘subsection (b)(9)’’ and inserting ‘‘para4 graph (9) or (10) of subsection (b)’’. 

5 (c) EXTENSION OF STATUTE OF LIMITATIONS FOR

6 LISTED TRANSACTIONS.—Any contribution described in 

7 section 170(h)(7)(A) of the Internal Revenue Code of 

8 1986 (as added by this section) shall be treated for pur9 poses of sections 6501(c)(10) and 6235(c)(6) of such Code 

10 as a transaction specifically identified by the Secretary as 

11 a tax avoidance transaction for purposes of section 6011 

12 of such Code. 

13 (d) EFFECTIVE DATE.— 

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

15 this section shall apply to contributions made after 

16 the date of the enactment of this Act. 

17 (2) NO INFERENCE.—No inference is intended 

18 as to the appropriate treatment of contributions 

19 made in taxable years ending on or before the date 

20 specified in paragraph (1), or as to any activity not 

21 described in section 170(h)(7) of the Internal Rev22 enue Code of 1986, as added by this section. 


pamtmann on DSKBC07HB2PROD with BILLS

pamtmann on DSKBC07HB2PROD with BILLS
Calendar No. 480 

117TH CONGRESS 

2D SESSION S. 4808 

[Report No. 117–142] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

poses. reform retirement provisions, and for other purSEPTEMBER 8, 2022 

Read twice and placed on the calendar 


pamtmann on DSKBC07HB2PROD with BILLS