I 

111TH CONGRESS 

1ST SESSION H. R. 2021 

To help rebuild retirement, college, and personal savings. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 22, 2009 

Mr. BOEHNER (for himself, Mr. CAMP, Mr. MCKEON, Mr. KLINE of Minnesota, Mr. TIBERI, Mr. ROYCE, Mr. SAM JOHNSON of Texas, Mrs. 

BACHMANN, Mr. PAULSEN, Mr. HELLER, Ms. JENKINS, Mr. LATTA, Mr. 

GUTHRIE, Mr. DREIER, Mr. SESSIONS, Mr. BLUNT, Mr. LEE of New 

York, Mr. HERGER, Mr. BURTON of Indiana, Mr. MCCARTHY of California, Mr. CARTER, and Mr. PENCE) introduced the following bill; which 

was referred to the Committee on Ways and Means, and in addition to 

the Committee on Education and Labor, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To help rebuild retirement, college, and personal savings. 

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; TABLE OF CONTENTS. 

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

5 ‘‘Savings Recovery Act of 2009’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—INCREASE IN EXEMPT AMOUNT UNDER SOCIAL 

SECURITY EARNINGS TEST 

Sec. 101. Increase in monthly exempt amount under the Social Security earnings test for individuals who have not attained retirement age. 

TITLE II—CAPITAL GAINS AND LOSSES 

Sec. 201. Exclusion of certain dividends and long-term capital gains of noncorporate taxpayers. 

Sec. 202. Increase in limitation on capital losses of noncorporate taxpayers. 

TITLE III—SAVINGS FOR HIGHER EDUCATION 

Sec. 301. Credit for contributions to 529 plans. 

Sec. 302. Investment direction under qualified tuition programs. 

TITLE IV—RETIREMENT PLANS 

Subtitle A—Individual Retirement Plans and Defined Contribution Plans 

Sec. 401. Elimination of marriage penalties in income limitations with respect 

to individual retirement plan contributions. 

Sec. 402. Increase in dollar limitations on contributions to retirement plans. 

Sec. 403. Increase in permitted catch-up contributions to retirement plans. 

Sec. 404. Extension of waiver of required minimum distribution rules. 

Sec. 405. Provisions relating to plan or contract amendments. 

Subtitle A—Defined Benefit Plans 

Sec. 411. Expansion of corridor within which single-employer defined benefit 

plans are allowed to average asset values. 

Sec. 412. Extended period for single-employer defined benefit plans to amortize 

the shortfall amortization base for 2009 and 2010. 

1 TITLE I—INCREASE IN EXEMPT 

2 AMOUNT UNDER SOCIAL SE3 CURITY EARNINGS TEST 

4 SEC. 101. INCREASE IN MONTHLY EXEMPT AMOUNT UNDER 

5 THE SOCIAL SECURITY EARNINGS TEST FOR 

6 INDIVIDUALS WHO HAVE NOT ATTAINED RE7 TIREMENT AGE. 

8 (a) IN GENERAL.—Section 203(f)(8) of the Social 

9 Security Act (42 U.S.C. 403(f)(8)) is amended— 

10 (1) by redesignating subparagraph (E) as sub11 paragraph (F); and 


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1 (2) by inserting after subparagraph (D) the fol2 lowing new subparagraph: 

3 ‘‘(E) Notwithstanding any other provision of 

4 this subsection, the exempt amount which is applica5 ble to an individual who has not attained retirement 

6 age before the close of the taxable year ending after 

7 2008 and before 2010 shall be, for each month of 

8 such taxable year, $2,360.’’. 

9 (b) CONFORMING AMENDMENTS.—Section 203(f) of 

10 such Act is amended— 

11 (1) in paragraph (8)(B)— 

12 (A) by striking ‘‘subparagraph (D))’’ and 

13 all that follows through ‘‘individuals),’’ in the 

14 matter in clause (ii) preceding subclause (I), 

15 and inserting ‘‘subparagraph (D)) or the tax16 able year ending after 2008 and before 2010 

17 (with respect to other individuals),’’; and 

18 (B) by striking ‘‘subparagraph (D))’’ and 

19 all that follows through ‘‘individuals),’’ in clause 

20 (ii)(II), and inserting ‘‘subparagraph (D)) or 

21 2007 (with respect to other individuals),’’; and 

22 (2) in paragraph (9), by striking ‘‘and (8)(E)’’ 

23 and inserting ‘‘(8)(E), and (8)(F)’’. 

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

25 this section shall apply for taxable years ending after 2008 


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1 in the case of individuals who have not, with respect to 

2 the taxable year involved, attained retirement age (within 

3 the meaning of section 203(f)(9) of the Social Security 

4 Act) before the close of such taxable year. 

5 TITLE II—CAPITAL GAINS AND 

6 LOSSES 

7 SEC. 201. EXCLUSION OF CERTAIN DIVIDENDS AND LONG8 TERM CAPITAL GAINS OF NONCORPORATE 

9 TAXPAYERS. 

10 (a) IN GENERAL.—Part III of subchapter B of chap11 ter 1 of the Internal Revenue Code of 1986 is amended 

12 by inserting after section 139C the following new section: 

13 ‘‘SEC. 139D. CERTAIN DIVIDENDS AND LONG-TERM CAPITAL 

14 GAINS. 

15 ‘‘(a) IN GENERAL.—In the case of a taxpayer other 

16 than a corporation, gross income shall not include— 

17 ‘‘(1) any qualified dividend income (as defined 

18 in section 1(h)(11)(B), determined without regard to 

19 clause (ii)(IV) thereof and without regard to section 

20 303 of the Jobs and Growth Tax Relief Reconcili21 ation Act of 2003) received during 2009 or 2010, 

22 and 

23 ‘‘(2) any gain from the sale or exchange of 

24 qualified property held for more than 1 year if such 


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1 asset was acquired by purchase (as defined in sec2 tion 179(d)(2)) during 2009 or 2010. 

3 ‘‘(b) QUALIFIED PROPERTY.—For purposes of this 

4 section, the term ‘qualified property’ means— 

5 ‘‘(1) any security (as defined in section 

6 475(c)(2) determined without regard to the last sen7 tence thereof), and 

8 ‘‘(2) any nonresidential real property (as de9 fined in section 168(e)(2)(B)). 

10 ‘‘(c) SPECIAL RULES.— 

11 ‘‘(1) EXCEPTION FOR UNRECAPTURED SECTION

12 1250 GAIN.—Subsection (a) shall not apply to any 

13 gain which would be treated as ordinary income if 

14 section 1250(b)(1) included all depreciation and the 

15 applicable percentage under section 1250(a) were 

16 100 percent. 

17 ‘‘(2) TREATMENT OF LONG-TERM SECTION 1256

18 GAIN.—Gain on a section 1256 contract which is 

19 treated as long-term capital gain under section 1256 

20 shall be treated for purposes of this section as gain 

21 on the sale of qualified property held for more than 

22 1 year. 

23 ‘‘(3) APPLICATION OF CERTAIN RULES.—Rules 

24 similar to the rules of section 1202(k) shall apply 

25 for purposes of this section.’’. 


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1 (b) CONFORMING AMENDMENTS.— 

2 (1) Section 1(h)(11)(B)(ii) of such Code is 

3 amended by striking ‘‘and’’ at the end of subclause 

4 (II), by striking the period at the end of subclause 

5 (III) and inserting ‘‘, and’’, and by adding at the 

6 end the following new subclause: 

7 ‘‘(IV) any dividend excluded from 

8 gross income under section 139D.’’. 

9 (2) The table of sections for part III of sub10 chapter B of chapter 1 of such Code is amended by 

11 inserting after the item relating to section 139C the 

12 following new item: 

‘‘Sec. 139D. Certain dividends and long-term capital gains.’’. 

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

14 this section shall apply to taxable years ending after De15 cember 31, 2008. 

16 SEC. 202. INCREASE IN LIMITATION ON CAPITAL LOSSES OF 

17 NONCORPORATE TAXPAYERS. 

18 (a) IN GENERAL.—Subsection (b) of section 1211 of 

19 the Internal Revenue Code of 1986 is amended to read 

20 as follows: 

21 ‘‘(b) OTHER TAXPAYERS.— 

22 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

23 other than a corporation, losses from sales or ex24 changes of capital assets shall be allowed only to the 


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1 extent of the gains from such sales or exchanges, 

2 plus (if such losses exceed such gains) the lower of— 

3 ‘‘(A) $10,000 (half of such amount in the 

4 case of a married individual filing a separate re5 turn), or 

6 ‘‘(B) the excess of such losses over such 

7 gains. 

8 ‘‘(2) INFLATION ADJUSTMENT.—In the case of 

9 any taxable year beginning in a calendar year after 

10 2009, the $10,000 amount contained in paragraph 

11 (1)(A) shall be increased by an amount equal to— 

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

13 ‘‘(B) the cost-of-living adjustment deter14 mined under section 1(f)(3) for the calendar 

15 year in which the taxable year begins, deter16 mined by substituting ‘calendar year 2008’ for 

17 ‘calendar year 1992’ in subparagraph (B) 

18 thereof. 

19 Any increase determined under the preceding sen20 tence shall be rounded to the nearest multiple of 

21 $250.’’. 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2008. 


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1 TITLE III—SAVINGS FOR HIGHER 

2 EDUCATION 

3 SEC. 301. CREDIT FOR CONTRIBUTIONS TO 529 PLANS. 

4 (a) IN GENERAL.—Subsection (d) of section 25B of 

5 the Internal Revenue Code of 1986 (relating to elective 

6 deferrals and IRA contributions by certain individuals) is 

7 amended by redesignating paragraph (2) as paragraph (3) 

8 and by inserting after paragraph (1) the following new 

9 paragraph: 

10 ‘‘(2) CONTRIBUTIONS TO QUALIFIED TUITION

11 PROGRAMS.— 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 savings contribution’ includes the amount of 

14 any purchase or contribution described in para15 graph (1)(A) of section 529(b) to a qualified 

16 tuition program (as defined in such section) 

17 if— 

18 ‘‘(i) the taxpayer has the power to au19 thorize distributions and otherwise admin20 ister the account, and 

21 ‘‘(ii) the designated beneficiary of 

22 such purchase or contribution is the tax23 payer, the taxpayer’s spouse, or an indi24 vidual with respect to whom the taxpayer 

25 is allowed a deduction under section 151. 


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1 ‘‘(B) LIMITATION BASED ON COMPENSA2 TION.—The amount treated as a qualified sav3 ings contribution by reason of subparagraph 

4 (A) for any taxable year shall not exceed the 

5 sum of— 

6 ‘‘(i) the compensation (as defined in 

7 section 219(f)(1)) includible in the tax8 payer’s gross income for the taxable year, 

9 and 

10 ‘‘(ii) the amount excluded from the 

11 taxpayer’s gross income under section 112 

12 (relating to combat pay) for such year. 

13 ‘‘(C) DETERMINATION OF ADJUSTED

14 GROSS INCOME.—Solely for purposes of deter15 mining the applicable percentage under sub16 section (b) which applies with respect to the 

17 amount treated as a qualified savings contribu18 tion by reason of subparagraph (A), adjusted 

19 gross income (determined without regard to this 

20 subparagraph) shall be increased by the excess 

21 (if any) of— 

22 ‘‘(i) the social security benefits re23 ceived during the taxable year (within the 

24 meaning of section 86), over 


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1 ‘‘(ii) the amount included in gross in2 come for such year under section 86.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Section 25B of such Code is amended by 

5 striking ‘‘qualified retirement savings’’ each place it 

6 appears in the text and inserting ‘‘qualified sav7 ings’’. 

8 (2) The subsection heading for section 25B(d) 

9 of such Code is amended by striking ‘‘RETIRE10 MENT’’. 

11 (3) Subparagraph (A) of section 25B(d)(3) of 

12 such Code, as redesignated by subsection (a), is 

13 amended— 

14 (A) by striking ‘‘paragraph (1)’’ the first 

15 place it appears and inserting ‘‘paragraph (1) 

16 or (2)’’, and 

17 (B) by striking ‘‘paragraph (1)’’ the sec18 ond place it appears and inserting ‘‘paragraph 

19 (1), or (2), as the case may be,’’. 

20 (4) The heading for section 25B of such Code 

21 is amended by striking ‘‘AND IRA CONTRIBU22 TIONS’’ and inserting ‘‘, IRA CONTRIBUTIONS, 

23 AND QUALIFIED TUITION PROGRAM CONTRIBU24 TIONS’’. 


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1 (5) The table of sections for subpart A of part 

2 IV of subchapter A of chapter 1 of such Code is 

3 amended by striking the item relating to section 25B 

4 and inserting the following new item: 

‘‘Sec. 25B. Elective deferrals, IRA contributions, and qualified tuition program 

contributions by certain individuals.’’. 

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

6 this section shall apply to contributions made after De7 cember 31, 2008. 

8 SEC. 302. INVESTMENT DIRECTION UNDER QUALIFIED TUI9 TION PROGRAMS. 

10 (a) IN GENERAL.—Paragraph (4) of section 529(b) 

11 of the Internal Revenue Code of 1986 (relating to invest12 ment direction) is amended by striking the period at the 

13 end and inserting ‘‘more frequently than 2 times per cal14 endar year.’’. 

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

16 this section shall apply to years beginning after December 

17 31, 2008. 


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1 TITLE IV—RETIREMENT PLANS 

2 Subtitle A—Individual Retirement 

3 Plans and Defined Contribution 

4 Plans 

5 SEC. 401. ELIMINATION OF MARRIAGE PENALTIES IN IN6 COME LIMITATIONS WITH RESPECT TO INDI7 VIDUAL RETIREMENT PLAN CONTRIBUTIONS. 

8 (a) ELIMINATION OF MARRIAGE PENALTY IN LIMI9 TATION ON DEDUCTION FOR IRA CONTRIBUTIONS.— 

10 (1) IN GENERAL.—Subparagraph (B) of section 

11 219(g)(3) of the Internal Revenue Code of 1986 is 

12 amended to read as follows: 

13 ‘‘(B) APPLICABLE DOLLAR AMOUNT.— 

14 ‘‘(i) IN GENERAL.—The term ‘applica15 ble dollar amount’ means $50,000 (twice 

16 such amount in the case of a joint return). 

17 ‘‘(ii) MARRIED INDIVIDUALS FILING A

18 SEPARATE RETURN.—In the case of a mar19 ried individual filing a separate return, the 

20 applicable dollar amount is zero.’’. 

21 (2) CONFORMING AMENDMENT.—Paragraph (8) 

22 of section 219(g) of such Code is amended by strik23 ing ‘‘the dollar amount in the last row of the table 

24 contained in paragraph (3)(B)(i), the dollar amount 

25 in the last row of the table contained in paragraph 


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1 (3)(B)(ii), and the dollar amount contained in para2 graph (7)(A)’’ and inserting ‘‘the dollar amounts 

3 contained in paragraphs (3)(B)(i) and (7)(A)’’. 

4 (b) ELIMINATION OF MARRIAGE PENALTY IN LIMI5 TATION ON ROTH IRA CONTRIBUTIONS.— 

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

7 408A(c)(3)(C)(ii) of such Code is amended by strik8 ing ‘‘$150,000’’ and inserting ‘‘twice the amount in 

9 effect under subclause (II)’’. 

10 (2) CONFORMING AMENDMENT.—Subparagraph 

11 (E) of section 408A(c)(3) of such Code is amended 

12 by striking ‘‘the dollar amounts in subclauses (I) 

13 and (II) of subparagraph (C)(ii) shall each’’ and in14 serting ‘‘the dollar amount in subparagraph 

15 (C)(ii)(II) shall’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2008. 

19 SEC. 402. INCREASE IN DOLLAR LIMITATIONS ON CON20 TRIBUTIONS TO RETIREMENT PLANS. 

21 (a) PERMANENT INCREASE IN DOLLAR LIMITATION

22 ON DEDUCTION FOR CONTRIBUTIONS TO INDIVIDUAL RE23 TIREMENT PLANS.— 


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1 (1) IN GENERAL.—Paragraph (5) of section 

2 219(b) of the Internal Revenue Code of 1986 is 

3 amended— 

4 (A) by amending subparagraph (A) to read 

5 as follows: 

6 ‘‘(A) IN GENERAL.—The deductible 

7 amount for any taxable year is the applicable 

8 dollar amount in effect under section 402(g)(1) 

9 for such taxable year.’’, and 

10 (B) by striking subparagraph (D). 

11 (2) SIMPLE RETIREMENT ACCOUNTS.—Sub12 paragraph (E) of section 408(p)(2) of such Code is 

13 amended to read as follows: 

14 ‘‘(E) APPLICABLE DOLLAR AMOUNT.—For 

15 purposes of subparagraph (A)(ii), the applicable 

16 dollar amount for any taxable year is the appli17 cable dollar amount in effect under section 

18 402(g)(1) for such taxable year.’’. 

19 (b) TEMPORARY INCREASE IN CONTRIBUTIONS TO

20 DEFINED CONTRIBUTION PLANS.— 

21 (1) INCREASE IN LIMITATION ON ELECTIVE DE22 FERRALS.—Paragraph (1) of section 402(g) of such 

23 Code is amended by adding at the end the following 

24 new subparagraph: 


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1 ‘‘(D) TEMPORARY INCREASE IN APPLICA2 BLE DOLLAR AMOUNT.—In the case of taxable 

3 years beginning in calendar year 2009, 2010, or 

4 2011, the applicable dollar amount determined 

5 under subparagraph (B) shall not be less than 

6 $33,000.’’. 

7 (2) INCREASE IN COMBINED EMPLOYEE AND

8 EMPLOYER LIMITATION ON CONTRIBUTIONS TO DE9 FINED CONTRIBUTION PLANS.—Paragraph (1) of 

10 section 415(c) of such Code is amended by adding 

11 at the end the following new flush sentence: 

12 ‘‘In the case of years beginning in calendar year 

13 2009, 2010, or 2011, the dollar amount in effect 

14 under subparagraph (A) shall not be less than 

15 $65,500.’’. 

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

17 this section shall apply to years beginning after December 

18 31, 2008. 

19 SEC. 403. INCREASE IN PERMITTED CATCH-UP CONTRIBU20 TIONS TO RETIREMENT PLANS. 

21 (a) PERMANENT INCREASE IN ANNUAL CATCH-UP

22 CONTRIBUTION LIMITATION FOR INDIVIDUAL RETIRE23 MENT PLANS.— 


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

2 219(b)(5)(B) of the Internal Revenue Code of 1986 

3 is amended to read as follows: 

4 ‘‘(ii) APPLICABLE AMOUNT.—For pur5 poses of clause (i), the applicable amount 

6 for any taxable year is the applicable dollar 

7 amount in effect under section 

8 414(v)(2)(B) for such taxable year.’’. 

9 (2) SIMPLE RETIREMENT ACCOUNTS.— 

10 (A) IN GENERAL.—Subparagraph (B) of 

11 section 414(v)(2) of such Code is amended to 

12 read as follows: 

13 ‘‘(B) APPLICABLE DOLLAR AMOUNT.—For 

14 purposes of this paragraph, the applicable dol15 lar amount is $5,000.’’. 

16 (B) CONFORMING AMENDMENTS.— 

17 (i) Subparagraph (C) of section 

18 402(g)(1) of such Code is amended by 

19 striking ‘‘section 414(v)(2)(B)(i)’’ and in20 serting ‘‘section 414(v)(2)(B)’’. 

21 (ii) Subparagraph (C) of section 

22 414(v)(2) of such Code is amended by 

23 striking ‘‘subparagraph (B)(i) and the 

24 $2,500 amount in subparagraph (B)(ii)’’ 

25 and inserting ‘‘subparagraph (B)’’. 


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1 (iii) Clause (ii) of section 

2 457(e)(18)(A) of such Code is amended by 

3 striking ‘‘section 414(v)(2)(B)(i)’’ and in4 serting ‘‘section 414(v)(2)(B)’’. 

5 (b) TEMPORARY INCREASE IN PERMITTED CATCH6 UP CONTRIBUTIONS.—Subparagraph (B) of section 

7 414(v)(2) of such Code, as amended by subsection (a), is 

8 amended by adding at the end the following: ‘‘In the case 

9 of taxable years beginning in 2009, 2010, or 2011, the 

10 applicable dollar amount in effect under the preceding sen11 tence shall not be less than $10,000.’’. 

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

13 this section shall apply to years beginning after December 

14 31, 2008. 

15 SEC. 404. EXTENSION OF WAIVER OF REQUIRED MINIMUM 

16 DISTRIBUTION RULES. 

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

18 401(a)(9) of the Internal Revenue Code of 1986 is amend19 ed— 

20 (1) by striking ‘‘calendar year 2009’’ in clause 

21 (i) and inserting ‘‘calendar years 2009, 2010, 2011, 

22 and 2012’’, 

23 (2) by striking ‘‘2009’’ in clause (ii)(I) and in24 serting ‘‘2012’’, and 


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1 (3) by striking ‘‘calendar year 2009’’ in clause 

2 (ii)(II) and inserting ‘‘calendar years 2009, 2010, 

3 2011, and 2012’’. 

4 (b) ELIGIBLE ROLLOVER DISTRIBUTIONS.—The last 

5 sentence of section 402(c)(4) of such Code is amended— 

6 (1) by striking ‘‘2009’’ the first place it appears 

7 and inserting ‘‘calendar year 2009, 2010, 2011, or 

8 2012’’, and 

9 (2) by striking ‘‘2009’’ the second place it ap10 pears and inserting ‘‘such calendar years’’. 

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

12 this section shall apply for calendar years beginning after 

13 December 31, 2009. 

14 SEC. 405. PROVISIONS RELATING TO PLAN OR CONTRACT 

15 AMENDMENTS. 

16 (a) IN GENERAL.—If this section applies to any pen17 sion plan or contract amendment, such pension plan or 

18 contract shall not fail to be treated as being operated in 

19 accordance with the terms of the plan solely because the 

20 plan operates in accordance with the amendments made 

21 by sections 402, 403, and 404. 

22 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

23 This section shall apply to any amendment to any pension 

24 plan or annuity contract which— 


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1 (1) is made pursuant to the amendments made 

2 by section 402, 403, or 404, and 

3 (2) is made on or before the last day of the 

4 first plan year beginning on or after January 1, 

5 2012 (January 1, 2013, in the case of a govern6 mental plan). 

7 Subtitle A—Defined Benefit Plans 

8 SEC. 411. EXPANSION OF CORRIDOR WITHIN WHICH SIN9 GLE-EMPLOYER DEFINED BENEFIT PLANS 

10 ARE ALLOWED TO AVERAGE ASSET VALUES. 

11 (a) AMENDMENT TO ERISA.—Paragraph (3) of sec12 tion 303(g) of the Employee Retirement Income Security 

13 Act of 1974 is amended by adding at the end the following 

14 new subparagraph: 

15 ‘‘(C) SPECIAL RULE FOR 2009 AND 2010.— 

16 In the case of plan years beginning in 2009 or 

17 2010, subparagraph (B)(iii) shall be applied— 

18 ‘‘(i) by substituting ‘80 percent’ for 

19 ‘90 percent’, and 

20 ‘‘(ii) by substituting ‘120 percent’ for 

21 ‘110 percent’.’’. 

22 (b) AMENDMENT TO IRC.—Paragraph (3) of section 

23 430(g) of the Internal Revenue Code of 1986 is amended 

24 by adding at the end the following new subparagraph: 


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1 ‘‘(C) SPECIAL RULE FOR 2009 AND 2010.— 

2 In the case of plan years beginning in 2009 or 

3 2010, subparagraph (B)(iii) shall be applied— 

4 ‘‘(i) by substituting ‘80 percent’ for 

5 ‘90 percent’, and 

6 ‘‘(ii) by substituting ‘120 percent’ for 

7 ‘110 percent’.’’. 

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

9 this section shall apply to plan years beginning after De10 cember 31, 2008. 

11 SEC. 412. EXTENDED PERIOD FOR SINGLE-EMPLOYER DE12 FINED BENEFIT PLANS TO AMORTIZE THE 

13 SHORTFALL AMORTIZATION BASE FOR 2009 

14 AND 2010. 

15 (a) AMENDMENTS TO ERISA.— 

16 (1) IN GENERAL.—Paragraph (2) of section 

17 303(c) of the Employee Retirement Income Security 

18 Act of 1974 is amended by adding at the end the 

19 following new subparagraph: 

20 ‘‘(D) SPECIAL RULE FOR 2009 AND 2010.— 

21 In the case of the shortfall amortization base of 

22 the plan for any plan year beginning in 2009 or 

23 2010 (hereafter in this subparagraph referred 

24 to as the ‘base year’)— 


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1 ‘‘(i) DETERMINATION OF INSTALL2 MENTS.—The shortfall amortization in3 stallments are— 

4 ‘‘(I) in the case of the last 7 plan 

5 years in the 9-plan-year period begin6 ning with the base year, the amounts 

7 necessary to amortize the shortfall 

8 amortization base of the plan for the 

9 base year in level annual installments 

10 over such last 7 plan years, and 

11 ‘‘(II) in the case of the first 2 

12 plan years in such 9-plan-year period, 

13 interest on such shortfall amortization 

14 base (determined as provided in sub15 paragraph (C)). 

16 ‘‘(ii) SHORTFALL INSTALLMENT.— 

17 The shortfall amortization installment for 

18 any plan year in the 9-plan-year period 

19 under clause (i) with respect to such short20 fall amortization base is the annual install21 ment determined under clause (i) for that 

22 year for that base.’’. 

23 (2) CONFORMING AMENDMENT.—Paragraph (1) 

24 of section 303(c) of such Act is amended by striking 

25 ‘‘the shortfall amortization bases for such plan year 


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1 and each of the 6 preceding plan years’’ and insert2 ing ‘‘any shortfall amortization base which has not 

3 been fully amortized under this subsection’’. 

4 (b) AMENDMENTS TO IRC.— 

5 (1) IN GENERAL.—Paragraph (2) of section 

6 430(c) of the Internal Revenue Code of 1986 is 

7 amended by adding at the end the following new 

8 subparagraph: 

9 ‘‘(D) SPECIAL RULE FOR 2009 AND 2010.— 

10 In the case of the shortfall amortization base of 

11 the plan for any plan year beginning in 2009 or 

12 2010 (hereafter in this subparagraph referred 

13 to as the ‘base year’)— 

14 ‘‘(i) DETERMINATION OF INSTALL15 MENTS.—The shortfall amortization in16 stallments are— 

17 ‘‘(I) in the case of the last 7 plan 

18 years in the 9-plan-year period begin19 ning with the base year, the amounts 

20 necessary to amortize the shortfall 

21 amortization base of the plan for the 

22 base year in level annual installments 

23 over such last 7 plan years, and 

24 ‘‘(II) in the case of the first 2 

25 plan years in such 9-plan-year period, 


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1 interest on such shortfall amortization 

2 base (determined as provided in sub3 paragraph (C)). 

4 ‘‘(ii) SHORTFALL INSTALLMENT.— 

5 The shortfall amortization installment for 

6 any plan year in the 9-plan-year period 

7 under clause (i) with respect to such short8 fall amortization base is the annual install9 ment determined under clause (i) for that 

10 year for that base.’’. 

11 (2) CONFORMING AMENDMENT.—Paragraph (1) 

12 of section 430(c) of such Code is amended by strik13 ing ‘‘the shortfall amortization bases for such plan 

14 year and each of the 6 preceding plan years’’ and in15 serting ‘‘any shortfall amortization base which has 

16 not been fully amortized under this subsection’’. 

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

18 this section shall apply to plan years beginning after De19 cember 31, 2008. 

Æ 


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