I 

116TH CONGRESS 

1ST SESSION H. R. 1007 

To amend the Internal Revenue Code of 1986 to encourage retirement 

savings, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 6, 2019 

Mr. KIND (for himself, Mr. KELLY of Pennsylvania, Mr. BLUMENAUER, Ms. 

SA ́NCHEZ, Mr. BEYER, Ms. JUDY CHU of California, Mr. HIGGINS of 

New York, Mr. HOLDING, Mr. KILDEE, Mr. PASCRELL, and Mr. LARSON

of Connecticut) 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 amend the Internal Revenue Code of 1986 to encourage 

retirement savings, and for other purposes. 

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

3 SECTION 1. SHORT TITLE, ETC. 

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

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

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

7 this Act is as follows: 


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Sec. 1. Short title, etc. 

TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 

Sec. 101. Multiple employer plans. 

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

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

after 1st plan year. 

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

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

costs. 

Sec. 106. Small employer automatic enrollment credit. 

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

as compensation for IRA purposes. 

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

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

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

cards and other similar arrangements. 

Sec. 111. Portability of lifetime income options. 

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

plans. 

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

TITLE II—ADMINISTRATIVE IMPROVEMENTS 

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

as of close of year. 

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

Sec. 203. Disclosure regarding lifetime income. 

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

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

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

TITLE III—BENEFITS RELATING TO UNITED STATES TAX COURT 

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

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

period in the event of assassination. 

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

Employees Retirement System. 

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

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

Sec. 306. Life insurance for magistrate judges of the Tax Court age 65 or 

older. 

Sec. 307. Retirement and annuity program. 

Sec. 308. Provisions for recall. 

TITLE IV—OTHER BENEFITS 

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

TITLE V—REVENUE PROVISIONS 


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Sec. 501. Modifications of required distribution rules for pension plans. 

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

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

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

Sec. 505. Pension variable rate premium payment acceleration. 

1 TITLE I—EXPANDING AND PRE2 SERVING RETIREMENT SAV3 INGS 

4 SEC. 101. MULTIPLE EMPLOYER PLANS. 

5 (a) QUALIFICATION REQUIREMENTS.— 

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

7 Revenue Code of 1986 is amended by adding at the 

8 end the following new subsection: 

9 ‘‘(e) APPLICATION OF QUALIFICATION REQUIRE10 MENTS FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH

11 POOLED PLAN PROVIDERS.— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), if a defined contribution plan to which 

14 subsection (c) applies— 

15 ‘‘(A) is sponsored by employers all of 

16 which have both a common interest other than 

17 having adopted the plan and control of the 

18 plan, or 

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

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

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

22 the requirements under this title applicable to a plan 

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


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1 of individual retirement accounts described in sec2 tion 408 (including by reason of subsection (c) 

3 thereof), whichever is applicable, merely because one 

4 or more employers of employees covered by the plan 

5 fail to take such actions as are required of such em6 ployers for the plan to meet such requirements. 

7 ‘‘(2) LIMITATIONS.— 

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

9 not apply to any plan unless the terms of the 

10 plan provide that in cases of employers failing 

11 to take the actions described in paragraph 

12 (1)— 

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

14 to employees of the employer will be trans15 ferred to a plan maintained only by the 

16 employer (or its successor), to an eligible 

17 retirement plan as defined in section 

18 402(c)(8)(B) for each individual whose ac19 count is transferred, or to any other ar20 rangement that the Secretary determines is 

21 appropriate, unless the Secretary deter22 mines it is in the best interests of such em23 ployees to retain the assets in the plan, 

24 and 


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1 ‘‘(ii) the employer described in clause 

2 (i) (and not the plan with respect to which 

3 the failure occurred or any other partici4 pating employer in such plan) shall, except 

5 to the extent provided by the Secretary, be 

6 liable for any liabilities with respect to 

7 such plan attributable to employees of the 

8 employer. 

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

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

12 substantially all of the administrative duties 

13 which are required of the provider under para14 graph (3)(A)(i) for any plan year, the Sec15 retary, in the Secretary’s own discretion, may 

16 provide that the determination as to whether 

17 the plan meets the requirements under this title 

18 applicable to a plan described in section 401(a) 

19 or to a plan that consists of individual retire20 ment accounts described in section 408 (includ21 ing by reason of subsection (c) thereof), which22 ever is applicable, shall be made in the same 

23 manner as would be made without regard to 

24 paragraph (1). 


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1 ‘‘(3) POOLED PLAN PROVIDER.—For purposes 

2 of this subsection— 

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

4 provider’ means, with respect to any plan, a 

5 person who— 

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

7 plan as a named fiduciary (within the 

8 meaning of section 402(a)(2) of the Em9 ployee Retirement Income Security Act of 

10 1974), as the plan administrator, and as 

11 the person responsible to perform all ad12 ministrative duties (including conducting 

13 proper testing with respect to the plan and 

14 employees of each participating employer) 

15 which are reasonably necessary to ensure 

16 that— 

17 ‘‘(I) the plan meets any require18 ment applicable under the Employee 

19 Retirement Income Security Act of 

20 1974 or this title to a plan described 

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

22 consists of individual retirement ac23 counts described in section 408 (in24 cluding by reason of subsection (c) 

25 thereof), whichever is applicable, and 


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1 ‘‘(II) each participating employer 

2 takes such actions as the Secretary or 

3 such person determines are necessary 

4 for the plan to meet the requirements 

5 described in subclause (I), including 

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

8 Secretary may require or which such 

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

11 allow the plan to meet such require12 ments, 

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

15 other information to the Secretary as the 

16 Secretary may require, before beginning 

17 operations as a pooled plan provider, 

18 ‘‘(iii) acknowledges in writing that 

19 such person is a named fiduciary (within 

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

21 Employee Retirement Income Security Act 

22 of 1974), and the plan administrator, with 

23 respect to the plan, and 

24 ‘‘(iv) is responsible for ensuring that 

25 all persons who handle assets of, or who 


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1 are fiduciaries of, the plan are bonded in 

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

4 1974. 

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

8 plan providers as may be necessary to enforce 

9 and carry out the purposes of this subsection. 

10 ‘‘(4) GUIDANCE.— 

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

12 issue such guidance as the Secretary determines 

13 appropriate to carry out this subsection, includ14 ing guidance— 

15 ‘‘(i) to identify the administrative du16 ties and other actions required to be per17 formed by a pooled plan provider under 

18 this subsection, 

19 ‘‘(ii) which describes the procedures to 

20 be taken to terminate a plan which fails to 

21 meet the requirements to be a plan de22 scribed in paragraph (1), including the 

23 proper treatment of, and actions needed to 

24 be taken by, any participating employer of 

25 the plan and the assets and liabilities of 


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1 the plan with respect to employees of that 

2 employer, and 

3 ‘‘(iii) identifying appropriate cases to 

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

5 apply to employers failing to take the ac6 tions described in paragraph (1). 

7 The Secretary shall take into account under 

8 clause (iii) whether the failure of an employer 

9 or pooled plan provider to provide any disclo10 sures or other information, or to take any other 

11 action, necessary to administer a plan or to 

12 allow a plan to meet requirements applicable to 

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

14 is applicable, has continued over a period of 

15 time that clearly demonstrates a lack of com16 mitment to compliance. 

17 ‘‘(B) PROSPECTIVE APPLICATION.—Any 

18 guidance issued by the Secretary under this 

19 paragraph shall not apply to any action or fail20 ure occurring before the issuance of such guid21 ance. 

22 ‘‘(5) MODEL PLAN.—The Secretary shall, in 

23 consultation with the Secretary of Labor when ap24 propriate, publish model plan language which meets 

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1 graphs (43) and (44) of section 3 of the Employee 

2 Retirement Income Security Act of 1974 and which 

3 may be adopted in order for a plan to be treated as 

4 a plan described in paragraph (1)(B).’’. 

5 (2) CONFORMING AMENDMENT.—Paragraph (3) 

6 of section 413(b) of such Code is amended by strik7 ing ‘‘section 401(a)’’ and inserting ‘‘sections 401(a) 

8 and 408(c)’’. 

9 (3) TECHNICAL AMENDMENT.—Subsection (c) 

10 of section 408 of such Code is amended by inserting 

11 after paragraph (2) the following new paragraph: 

12 ‘‘(3) There is a separate accounting for any in13 terest of an employee or member (or spouse of an 

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

15 (b) NO COMMON INTEREST REQUIRED FOR POOLED

16 EMPLOYER PLANS.—Section 3(2) of the Employee Retire17 ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 

18 is amended by adding at the end the following: 

19 ‘‘(C) A pooled employer plan shall be treat20 ed as— 

21 ‘‘(i) a single employee pension benefit 

22 plan or single pension plan; and 

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

24 applies.’’. 


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1 (c) POOLED EMPLOYER PLAN AND PROVIDER DE2 FINED.— 

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

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

5 1002) is amended by adding at the end the fol6 lowing: 

7 ‘‘(43) POOLED EMPLOYER PLAN.— 

8 ‘‘(A) IN GENERAL.—The term ‘pooled em9 ployer plan’ means a plan— 

10 ‘‘(i) which is an individual account 

11 plan established or maintained for the pur12 pose of providing benefits to the employees 

13 of 2 or more employers; 

14 ‘‘(ii) which is a plan described in sec15 tion 401(a) of the Internal Revenue Code 

16 of 1986 which includes a trust exempt 

17 from tax under section 501(a) of such 

18 Code or a plan that consists of individual 

19 retirement accounts described in section 

20 408 of such Code (including by reason of 

21 subsection (c) thereof); and 

22 ‘‘(iii) the terms of which meet the re23 quirements of subparagraph (B). 

24 Such term shall not include a plan with respect 

25 to which all of the participating employers have 


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1 both a common interest other than having 

2 adopted the plan and control of the plan. 

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

4 The requirements of this subparagraph are met 

5 with respect to any plan if the terms of the 

6 plan— 

7 ‘‘(i) designate a pooled plan provider 

8 and provide that the pooled plan provider 

9 is a named fiduciary of the plan; 

10 ‘‘(ii) designate one or more trustees 

11 meeting the requirements of section 

12 408(a)(2) of the Internal Revenue Code of 

13 1986 (other than a participating employer) 

14 to be responsible for collecting contribu15 tions to, and holding the assets of, the 

16 plan and require such trustees to imple17 ment written contribution collection proce18 dures that are reasonable, diligent, and 

19 systematic; 

20 ‘‘(iii) provide that each participating 

21 employer retains fiduciary responsibility 

22 for— 

23 ‘‘(I) the selection and monitoring 

24 in accordance with section 404(a) of 

25 the person designated as the pooled 


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1 plan provider and any other person 

2 who, in addition to the pooled plan 

3 provider, is designated as a named fi4 duciary of the plan; and 

5 ‘‘(II) to the extent not otherwise 

6 delegated to another fiduciary by the 

7 pooled plan provider and subject to 

8 the provisions of section 404(c), the 

9 investment and management of that 

10 portion of the plan’s assets attrib11 utable to the employees of that par12 ticipating employer; 

13 ‘‘(iv) provide that a participating em14 ployer, or a participant or beneficiary, is 

15 not subject to unreasonable restrictions, 

16 fees, or penalties with regard to ceasing 

17 participation, receipt of distributions, or 

18 otherwise transferring assets of the plan in 

19 accordance with section 208 or paragraph 

20 (44)(C)(i)(II); 

21 ‘‘(v) require— 

22 ‘‘(I) the pooled plan provider to 

23 provide to participating employers any 

24 disclosures or other information which 

25 the Secretary may require, including 


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1 any disclosures or other information 

2 to facilitate the selection or any moni3 toring of the pooled plan provider by 

4 participating employers; and 

5 ‘‘(II) each participating employer 

6 to take such actions as the Secretary 

7 or the pooled plan provider determines 

8 are necessary to administer the plan 

9 or for the plan to meet any require10 ment applicable under this Act or the 

11 Internal Revenue Code of 1986 to a 

12 plan described in section 401(a) of 

13 such Code or to a plan that consists 

14 of individual retirement accounts de15 scribed in section 408 of such Code 

16 (including by reason of subsection (c) 

17 thereof), whichever is applicable, in18 cluding providing any disclosures or 

19 other information which the Secretary 

20 may require or which the pooled plan 

21 provider otherwise determines is nec22 essary to administer the plan or to 

23 allow the plan to meet such require24 ments; and 


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1 ‘‘(vi) provide that any disclosure or 

2 other information required to be provided 

3 under clause (v) may be provided in elec4 tronic form and will be designed to ensure 

5 only reasonable costs are imposed on 

6 pooled plan providers and participating 

7 employers. 

8 ‘‘(C) EXCEPTIONS.—The term ‘pooled em9 ployer plan’ does not include— 

10 ‘‘(i) a multiemployer plan; or 

11 ‘‘(ii) a plan established before the 

12 date of the enactment of the Retirement 

13 Enhancement and Savings Act of 2019, 

14 unless the plan administrator elects that 

15 the plan will be treated as a pooled em16 ployer plan and the plan meets the require17 ments of this title applicable to a pooled 

18 employer plan established on or after such 

19 date. 

20 ‘‘(44) POOLED PLAN PROVIDER.— 

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

22 provider’ means a person who— 

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

24 pooled employer plan as a named fiduciary, 

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1 son responsible for the performance of all 

2 administrative duties (including conducting 

3 proper testing with respect to the plan and 

4 employees of each participating employer) 

5 which are reasonably necessary to ensure 

6 that— 

7 ‘‘(I) the plan meets any require8 ment applicable under this Act or the 

9 Internal Revenue Code of 1986 to a 

10 plan described in section 401(a) of 

11 such Code or to a plan that consists 

12 of individual retirement accounts de13 scribed in section 408 of such Code 

14 (including by reason of subsection (c) 

15 thereof), whichever is applicable; and 

16 ‘‘(II) each participating employer 

17 takes such actions as the Secretary or 

18 pooled plan provider determines are 

19 necessary for the plan to meet the re20 quirements described in subclause (I), 

21 including providing the disclosures 

22 and information described in para23 graph (43)(B)(v)(II); 

24 ‘‘(ii) registers as a pooled plan pro25 vider with the Secretary, and provides to 


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1 the Secretary such other information as 

2 the Secretary may require, before begin3 ning operations as a pooled plan provider; 

4 ‘‘(iii) acknowledges in writing that 

5 such person is a named fiduciary, and the 

6 plan administrator, with respect to the 

7 pooled employer plan; and 

8 ‘‘(iv) is responsible for ensuring that 

9 all persons who handle assets of, or who 

10 are fiduciaries of, the pooled employer plan 

11 are bonded in accordance with section 412. 

12 ‘‘(B) AUDITS, EXAMINATIONS AND INVES13 TIGATIONS.—The Secretary may perform au14 dits, examinations, and investigations of pooled 

15 plan providers as may be necessary to enforce 

16 and carry out the purposes of this paragraph 

17 and paragraph (43). 

18 ‘‘(C) GUIDANCE.— 

19 ‘‘(i) IN GENERAL.—The Secretary 

20 shall issue such guidance as the Secretary 

21 determines appropriate to carry out this 

22 paragraph and paragraph (43), including 

23 guidance— 

24 ‘‘(I) to identify the administra25 tive duties and other actions required 


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1 to be performed by a pooled plan pro2 vider under either such paragraph; 

3 and 

4 ‘‘(II) which requires in appro5 priate cases that if a participating 

6 employer fails to take the actions re7 quired under subparagraph 

8 (A)(i)(II)— 

9 ‘‘(aa) the assets of the plan 

10 attributable to employees of the 

11 participating employer are trans12 ferred to a plan maintained only 

13 by the participating employer (or 

14 its successor), to an eligible re15 tirement plan as defined in sec16 tion 402(c)(8)(B) of the Internal 

17 Revenue Code of 1986 for each 

18 individual whose account is 

19 transferred, or to any other ar20 rangement that the Secretary de21 termines is appropriate in such 

22 guidance; and 

23 ‘‘(bb) the participating em24 ployer described in item (aa) 

25 (and not the plan with respect to 


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1 which the failure occurred or any 

2 other participating employer in 

3 such plan) shall, except to the ex4 tent provided in such guidance, 

5 be liable for any liabilities with 

6 respect to such plan attributable 

7 to employees of the participating 

8 employer. 

9 The Secretary shall take into account 

10 under subclause (II) whether the failure of 

11 an employer or pooled plan provider to 

12 provide any disclosures or other informa13 tion, or to take any other action, necessary 

14 to administer a plan or to allow a plan to 

15 meet requirements described in subpara16 graph (A)(i)(II) has continued over a pe17 riod of time that clearly demonstrates a 

18 lack of commitment to compliance. The 

19 Secretary may waive the requirements of 

20 subclause (II)(aa) in appropriate cir21 cumstances if the Secretary determines it 

22 is in the best interests of the employees of 

23 the participating employer described in 

24 such clause to retain the assets in the plan 


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1 with respect to which the employer’s fail2 ure occurred. 

3 ‘‘(ii) PROSPECTIVE APPLICATION.— 

4 Any guidance issued by the Secretary 

5 under this subparagraph shall not apply to 

6 any action or failure occurring before the 

7 issuance of such guidance. 

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

9 of this paragraph— 

10 ‘‘(i) IN GENERAL.—In determining 

11 whether a person meets the requirements 

12 of this paragraph to be a pooled plan pro13 vider with respect to any plan, all persons 

14 who are members of the same controlled 

15 group and who perform services for the 

16 plan shall be treated as one person. 

17 ‘‘(ii) MEMBERS OF COMMON GROUP.— 

18 Persons shall be treated as members of the 

19 same controlled group if such persons are 

20 treated as a single employer under sub21 section (c) or (d) of section 210.’’. 

22 (2) BONDING REQUIREMENTS FOR POOLED EM23 PLOYER PLANS.—The last sentence of section 412(a) 

24 of the Employee Retirement Income Security Act of 

25 1974 (29 U.S.C. 1112(a)) is amended by inserting 


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

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

3 (3) CONFORMING AND TECHNICAL AMEND4 MENTS.—Section 3 of the Employee Retirement In5 come Security Act of 1974 (29 U.S.C. 1002) is 

6 amended— 

7 (A) in paragraph (16)(B)— 

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

9 clause (ii); and 

10 (ii) by striking the period at the end 

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

12 pooled employer plan, the pooled plan pro13 vider.’’; and 

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

15 (d) EFFECTIVE DATE.— 

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

17 this section shall apply to years beginning after De18 cember 31, 2021. 

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

20 amendments made by subsection (a) shall be con21 strued as limiting the authority of the Secretary of 

22 the Treasury or the Secretary’s delegate (determined 

23 without regard to such amendment) to provide for 

24 the proper treatment of a failure to meet any re25 quirement applicable under the Internal Revenue 


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

2 employees) in a multiple employer plan. 

3 SEC. 102. POOLED EMPLOYER AND MULTIPLE EMPLOYER 

4 PLAN REPORTING. 

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

6 Employee Retirement Income Security Act of 1974 (29 

7 U.S.C. 1023) is amended— 

8 (1) in subsection (a)(1)(B), by striking ‘‘appli9 cable subsections (d), (e), and (f)’’ and inserting 

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

11 (2) by amending subsection (g) to read as fol12 lows: 

13 ‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO

14 POOLED EMPLOYER AND MULTIPLE EMPLOYER

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

16 year shall include— 

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

18 210(a) applies (including a pooled employer plan), a 

19 list of participating employers and a good faith esti20 mate of the percentage of total contributions made 

21 by such participating employers during the plan 

22 year; and 

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

24 identifying information for the person designated 


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1 under the terms of the plan as the pooled plan pro2 vider.’’. 

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

4 of the Employee Retirement Income Security Act of 1974 

5 (29 U.S.C. 1024(a)) is amended by striking paragraph 

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

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

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

9 Secretary may by regulation prescribe simplified an10 nual reports for any pension plan that— 

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

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

13 that covers fewer than 1,000 participants, but 

14 only if no single participating employer has 100 

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

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

17 this section shall apply to annual reports for plan years 

18 beginning after December 31, 2021. 

19 SEC. 103. REMOVAL OF 10 PERCENT CAP FROM AUTOMATIC 

20 ENROLLMENT SAFE HARBOR AFTER 1ST 

21 PLAN YEAR. 

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

23 401(k)(13)(C) of the Internal Revenue Code of 1986 is 

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

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


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1 (b) CONFORMING AMENDMENTS.— 

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

3 of the Internal Revenue Code of 1986 is amended by 

4 striking ‘‘3 percent’’ and inserting ‘‘at least 3 per5 cent, but not greater than 10 percent,’’. 

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

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

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

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

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

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

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

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

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

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

16 this section shall apply to plan years beginning after De17 cember 31, 2018. 

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

19 401(k) STATUS. 

20 (a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE

21 TO MATCHING CONTRIBUTION PLANS.— 

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

23 401(k)(12) of the Internal Revenue Code of 1986 is 

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

25 that follows and inserting ‘‘if such arrangement— 


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1 ‘‘(i) meets the contribution require2 ments of subparagraph (B) and the notice 

3 requirements of subparagraph (D), or 

4 ‘‘(ii) meets the contribution require5 ments of subparagraph (C).’’. 

6 (2) AUTOMATIC CONTRIBUTION ARRANGE7 MENTS.—Subparagraph (B) of section 401(k)(13) of 

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

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

10 arrangement— 

11 ‘‘(A) which is described in subparagraph 

12 (D)(i)(I) and meets the applicable requirements 

13 of subparagraphs (C) through (E), or 

14 ‘‘(B) which is described in subparagraph 

15 (D)(i)(II) and meets the applicable require16 ments of subparagraphs (C) and (D).’’. 

17 (b) NONELECTIVE CONTRIBUTIONS.—Section 

18 401(k)(12) of the Internal Revenue Code of 1986 is 

19 amended by redesignating subparagraph (F) as subpara20 graph (G), and by inserting after subparagraph (E) the 

21 following new subparagraph: 

22 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

23 EMPLOYER MAKING NONELECTIVE CONTRIBU24 TIONS.— 


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1 ‘‘(i) IN GENERAL.—Except as pro2 vided in clause (ii), a plan may be amend3 ed after the beginning of a plan year to 

4 provide that the requirements of subpara5 graph (C) shall apply to the arrangement 

6 for the plan year, but only if the amend7 ment is adopted— 

8 ‘‘(I) at any time before the 30th 

9 day before the close of the plan year, 

10 or 

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

12 day under paragraph (8)(A) for dis13 tributing excess contributions for the 

14 plan year. 

15 ‘‘(ii) EXCEPTION WHERE PLAN PRO16 VIDED FOR MATCHING CONTRIBUTIONS.— 

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

18 if the plan provided at any time during the 

19 plan year that the requirements of sub20 paragraph (B) or paragraph (13)(D)(i)(I) 

21 applied to the plan year. 

22 ‘‘(iii) 4-PERCENT CONTRIBUTION RE23 QUIREMENT.—Clause (i)(II) shall not 

24 apply to an arrangement unless the 

25 amount of the contributions described in 


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1 subparagraph (C) which the employer is 

2 required to make under the arrangement 

3 for the plan year with respect to any em4 ployee is an amount equal to at least 4 

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

6 (c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 

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

8 is amended by adding at the end the following: 

9 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

10 EMPLOYER MAKING NONELECTIVE CONTRIBU11 TIONS.— 

12 ‘‘(i) IN GENERAL.—Except as pro13 vided in clause (ii), a plan may be amend14 ed after the beginning of a plan year to 

15 provide that the requirements of subpara16 graph (D)(i)(II) shall apply to the arrange17 ment for the plan year, but only if the 

18 amendment is adopted— 

19 ‘‘(I) at any time before the 30th 

20 day before the close of the plan year, 

21 or 

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

23 day under paragraph (8)(A) for dis24 tributing excess contributions for the 

25 plan year. 


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1 ‘‘(ii) EXCEPTION WHERE PLAN PRO2 VIDED FOR MATCHING CONTRIBUTIONS.— 

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

4 if the plan provided at any time during the 

5 plan year that the requirements of sub6 paragraph (D)(i)(I) or paragraph (12)(B) 

7 applied to the plan year. 

8 ‘‘(iii) 4-PERCENT CONTRIBUTION RE9 QUIREMENT.—Clause (i)(II) shall not 

10 apply to an arrangement unless the 

11 amount of the contributions described in 

12 subparagraph (D)(i)(II) which the em13 ployer is required to make under the ar14 rangement for the plan year with respect 

15 to any employee is an amount equal to at 

16 least 4 percent of the employee’s com17 pensation.’’. 

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

19 this section shall apply to plan years beginning after De20 cember 31, 2018. 

21 SEC. 105. INCREASE IN CREDIT LIMITATION FOR SMALL 

22 EMPLOYER PENSION PLAN STARTUP COSTS. 

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

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

25 as follows: 


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

2 taxable years immediately following the first credit 

3 year, the greater of— 

4 ‘‘(A) $500, or 

5 ‘‘(B) the lesser of— 

6 ‘‘(i) $250 for each employee of the eli7 gible employer who is not a highly com8 pensated employee (as defined in section 

9 414(q)) and who is eligible to participate 

10 in the eligible employer plan maintained by 

11 the eligible employer, or 

12 ‘‘(ii) $5,000, and’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2018. 

16 SEC. 106. SMALL EMPLOYER AUTOMATIC ENROLLMENT 

17 CREDIT. 

18 (a) IN GENERAL.—Subpart D of part IV of sub19 chapter A of chapter 1 of the Internal Revenue Code of 

20 1986 is amended by adding at the end the following new 

21 section: 


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

2 SAVINGS OPTIONS PROVIDED BY SMALL EM3 PLOYERS. 

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

5 the case of an eligible employer, the retirement auto-en6 rollment credit determined under this section for any tax7 able year is an amount equal to— 

8 ‘‘(1) $500 for any taxable year occurring during 

9 the credit period, and 

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

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

12 (a)— 

13 ‘‘(1) IN GENERAL.—The credit period with re14 spect to any eligible employer is the 3-taxable-year 

15 period beginning with the first taxable year for 

16 which the employer includes an eligible automatic 

17 contribution arrangement (as defined in section 

18 414(w)(3)) in a qualified employer plan (as defined 

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

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

21 taxable year with respect to an employer shall be 

22 treated as occurring within the credit period unless 

23 the arrangement described in paragraph (1) is in24 cluded in the plan for such year. 


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

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

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

4 (b) CREDIT TO BE PART OF GENERAL BUSINESS

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

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

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

8 end of paragraph (32) and inserting ‘‘, plus’’, and by add9 ing at the end the following new paragraph: 

10 ‘‘(33) in the case of an eligible employer (as de11 fined in section 45T(c)), the retirement auto-enroll12 ment credit determined under section 45T(a).’’. 

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

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

15 of the Internal Revenue Code of 1986 is amended by in16 serting after the item relating to section 45R the following 

17 new item: 

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

small employers.’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2018. 


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1 SEC. 107. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 

2 AND STIPEND PAYMENTS TREATED AS COM3 PENSATION FOR IRA PURPOSES. 

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

5 of the Internal Revenue Code of 1986 is amended by add6 ing at the end the following: ‘‘The term ‘compensation’ 

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

8 individual in the pursuit of graduate or postdoctoral 

9 study.’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2018. 

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

14 CONTRIBUTIONS. 

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

16 of the Internal Revenue Code of 1986 is repealed. 

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

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

19 amended by striking paragraph (4) and by redesignating 

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

21 (6), respectively. 

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

23 this section shall apply to contributions made for taxable 

24 years beginning after December 31, 2018. 


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1 SEC. 109. EXPANSION OF IRA OWNERSHIP OF S CORPORA2 TION BANK STOCK. 

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

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

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

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

7 of this clause’’. 

8 (b) SALE OF STOCK IN IRA RELATING TO S COR9 PORATION ELECTION EXEMPT FROM PROHIBITED

10 TRANSACTION RULES.—Section 4975(d)(16) of the Inter11 nal Revenue Code of 1986 is amended by striking sub12 paragraph (B) and by redesignating subparagraphs (C), 

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

14 respectively. 

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

16 this section shall take effect on January 1, 2018. 

17 SEC. 110. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 

18 MAKING LOANS THROUGH CREDIT CARDS 

19 AND OTHER SIMILAR ARRANGEMENTS. 

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

21 the Internal Revenue Code of 1986 is amended by redesig22 nating subparagraph (D) as subparagraph (E) and by in23 serting after subparagraph (C) the following new subpara24 graph: 


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1 ‘‘(D) PROHIBITION OF LOANS THROUGH

2 CREDIT CARDS AND OTHER SIMILAR ARRANGE3 MENTS.— 

4 ‘‘(i) IN GENERAL.—Except as pro5 vided in clause (ii), subparagraph (A) shall 

6 not apply to any loan which is made 

7 through the use of any credit card or any 

8 other similar arrangement. 

9 ‘‘(ii) EXCEPTION FOR EXISTING CRED10 IT CARD SYSTEMS.—Clause (i) shall not 

11 apply to any loan to the extent such loan 

12 is provided through an electronic card sys13 tem which, as of September 21, 2016, was 

14 available for use to provide loans under 

15 qualified employer plans. 

16 ‘‘(iii) DISALLOWED TRANSACTIONS.— 

17 If any card through which a loan is pro18 vided under the exception of clause (ii) is 

19 used for any transaction— 

20 ‘‘(I) in an amount equal to or 

21 less than $1,000, or 

22 ‘‘(II) with or on the premises of 

23 any establishment described in clause 

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


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1 408(a)(12)(A) of the Social Security 

2 Act, 

3 the amount of such transaction shall be 

4 treated as having been received by the in5 dividual as a distribution in accordance 

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

7 ‘‘(iv) COST-OF-LIVING ADJUST8 MENT.—In the case of any loan made dur9 ing a plan year beginning after December 

10 31, 2019, the $1,000 amount under clause 

11 (iii)(I) 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 

18 plan year begins, determined by sub19 stituting ‘calendar year 2018’ for ‘cal20 endar year 1992’ in subparagraph (B) 

21 thereof. Any increase determined 

22 under the preceding sentence shall be 

23 rounded to the next lowest multiple of 

24 $50.’’. 


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

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

3 December 31, 2018. 

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

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

6 the date of the enactment of this Act— 

7 (1) study the impact of loans from qualified 

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

9 the Internal Revenue Code of 1986) provided 

10 through credit cards and similar arrangements on 

11 the use of retirement savings for purposes other 

12 than funding retirement; and 

13 (2) report the results of such study to the Com14 mittee on Finance of the Senate and the Committee 

15 on Ways and Means of the House of Representa16 tives. 

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

18 loans, after implementation of the restrictions imposed by 

19 the amendment made by subsection (a), result in greater 

20 usage of retirement savings for purposes other than fund21 ing retirement than loans made by other means, the report 

22 under paragraph (2) shall include recommendations to re23 duce such result. 


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1 SEC. 111. PORTABILITY OF LIFETIME INCOME OPTIONS. 

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

3 the Internal Revenue Code of 1986 is amended by insert4 ing after paragraph (37) the following new paragraph: 

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

6 ‘‘(A) IN GENERAL.—Except as may be oth7 erwise provided by regulations, a trust forming 

8 part of a defined contribution plan shall not be 

9 treated as failing to constitute a qualified trust 

10 under this section solely by reason of allowing— 

11 ‘‘(i) qualified distributions of a life12 time income investment, or 

13 ‘‘(ii) distributions of a lifetime income 

14 investment in the form of a qualified plan 

15 distribution annuity contract, 

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

17 date on which such lifetime income investment 

18 is no longer authorized to be held as an invest19 ment option under the plan. 

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

21 subsection— 

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

23 means a direct trustee-to-trustee transfer 

24 described in paragraph (31)(A) to an eligi25 ble retirement plan (as defined in section 

26 402(c)(8)(B)), 


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1 ‘‘(ii) the term ‘lifetime income invest2 ment’ means an investment option which is 

3 designed to provide an employee with elec4 tion rights— 

5 ‘‘(I) which are not uniformly 

6 available with respect to other invest7 ment options under the plan, and 

8 ‘‘(II) which are to a lifetime in9 come feature available through a con10 tract or other arrangement offered 

11 under the plan (or under another eli12 gible retirement plan (as so defined), 

13 if paid by means of a direct trustee14 to-trustee transfer described in para15 graph (31)(A) to such other eligible 

16 retirement plan), 

17 ‘‘(iii) the term ‘lifetime income fea18 ture’ means— 

19 ‘‘(I) a feature which guarantees a 

20 minimum level of income annually (or 

21 more frequently) for at least the re22 mainder of the life of the employee or 

23 the joint lives of the employee and the 

24 employee’s designated beneficiary, or 


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1 ‘‘(II) an annuity payable on be2 half of the employee under which pay3 ments are made in substantially equal 

4 periodic payments (not less frequently 

5 than annually) over the life of the em6 ployee or the joint lives of the em7 ployee and the employee’s designated 

8 beneficiary, and 

9 ‘‘(iv) the term ‘qualified plan distribu10 tion annuity contract’ means an annuity 

11 contract purchased for a participant and 

12 distributed to the participant by a plan or 

13 contract described in subparagraph (B) of 

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

15 clauses (i) and (ii) thereof).’’. 

16 (b) CASH OR DEFERRED ARRANGEMENT.— 

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

18 401(k)(2)(B) of the Internal Revenue Code of 1986 

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

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

21 and inserting ‘‘or’’, and by adding at the end the fol22 lowing new subclause: 

23 ‘‘(VI) except as may be otherwise 

24 provided by regulations, with respect 

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1 come investment (as defined in sub2 section (a)(38)(B)(ii)), the date that 

3 is 90 days prior to the date that such 

4 lifetime income investment may no 

5 longer be held as an investment option 

6 under the arrangement, and’’. 

7 (2) DISTRIBUTION REQUIREMENT.—Subpara8 graph (B) of section 401(k)(2) of such Code, as 

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

10 ‘‘and’’ at the end of clause (i), by striking the semi11 colon at the end of clause (ii) and inserting ‘‘, and’’, 

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

13 ‘‘(iii) except as may be otherwise pro14 vided by regulations, in the case of 

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

16 distributed only in the form of a qualified 

17 distribution (as defined in subsection 

18 (a)(38)(B)(i)) or a qualified plan distribu19 tion annuity contract (as defined in sub20 section (a)(38)(B)(iv)),’’. 

21 (c) SECTION 403(b) PLANS.— 

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

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

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1 paragraph (C) and inserting ‘‘, or’’, and by inserting 

2 after subparagraph (C) the following new subpara3 graph: 

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

5 by regulations, with respect to amounts invested 

6 in a lifetime income investment (as defined in 

7 section 401(a)(38)(B)(ii))— 

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

9 days prior to the date that such lifetime 

10 income investment may no longer be held 

11 as an investment option under the con12 tract, and 

13 ‘‘(ii) in the form of a qualified dis14 tribution (as defined in section 

15 401(a)(38)(B)(i)) or a qualified plan dis16 tribution annuity contract (as defined in 

17 section 401(a)(38)(B)(iv)).’’. 

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

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

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

21 the amounts are to be invested in regulated invest22 ment company stock to be held in that custodial ac23 count, and under the custodial account— 

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

25 made available to any distributee (unless 


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1 such amount is a distribution to which sec2 tion 72(t)(2)(G) applies) before— 

3 ‘‘(I) the employee dies, 

4 ‘‘(II) the employee attains age 

591 5 ⁄2, 

6 ‘‘(III) the employee has a sever7 ance from employment, 

8 ‘‘(IV) the employee becomes dis9 abled (within the meaning of section 

10 72(m)(7)), 

11 ‘‘(V) in the case of contributions 

12 made pursuant to a salary reduction 

13 agreement (within the meaning of sec14 tion 3121(a)(5)(D)), the employee en15 counters financial hardship, or 

16 ‘‘(VI) except as may be otherwise 

17 provided by regulations, with respect 

18 to amounts invested in a lifetime in19 come investment (as defined in section 

20 401(a)(38)(B)(ii)), the date that is 90 

21 days prior to the date that such life22 time income investment may no longer 

23 be held as an investment option under 

24 the contract, and 


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

2 in clause (i)(VI), such amounts will be dis3 tributed only in the form of a qualified dis4 tribution (as defined in section 

5 401(a)(38)(B)(i)) or a qualified plan dis6 tribution annuity contract (as defined in 

7 section 401(a)(38)(B)(iv)).’’. 

8 (d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 

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

10 457(d)(1) of the Internal Revenue Code of 1986 is 

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

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

13 adding after clause (iii) the following: 

14 ‘‘(iv) except as may be otherwise pro15 vided by regulations, in the case of a plan 

16 maintained by an employer described in 

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

18 amounts invested in a lifetime income in19 vestment (as defined in section 

20 401(a)(38)(B)(ii)), the date that is 90 

21 days prior to the date that such lifetime 

22 income investment may no longer be held 

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

24 (2) DISTRIBUTION REQUIREMENT.—Paragraph 

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


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

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

3 and inserting ‘‘, and’’, and by inserting after sub4 paragraph (C) the following new subparagraph: 

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

6 by regulations, in the case of amounts described 

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

8 distributed only in the form of a qualified dis9 tribution (as defined in section 

10 401(a)(38)(B)(i)) or a qualified plan distribu11 tion annuity contract (as defined in section 

12 401(a)(38)(B)(iv)).’’. 

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

14 this section shall apply to plan years beginning after De15 cember 31, 2018. 

16 SEC. 112. TREATMENT OF CUSTODIAL ACCOUNTS ON TER17 MINATION OF SECTION 403(b) PLANS. 

18 (a) IN GENERAL.—Section 403(b)(7) of the Internal 

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

20 the following: 

21 ‘‘(D) TREATMENT OF CUSTODIAL AC22 COUNT UPON PLAN TERMINATION.— 

23 ‘‘(i) IN GENERAL.—If— 

24 ‘‘(I) an employer terminates the 

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1 tributed to a custodial account under 

2 subparagraph (A), and 

3 ‘‘(II) the person holding the as4 sets of the account has demonstrated 

5 to the satisfaction of the Secretary 

6 under section 408(a)(2) that the per7 son is qualified to be a trustee of an 

8 individual retirement plan, 

9 then, as of the date of the termination, the 

10 custodial account shall be deemed to be an 

11 individual retirement plan for purposes of 

12 this title. 

13 ‘‘(ii) TREATMENT AS ROTH IRA.—Any 

14 custodial account treated as an individual 

15 retirement plan under clause (i) shall be 

16 treated as a Roth IRA only if the custodial 

17 account was a designated Roth account.’’. 

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

19 this section shall apply to plan terminations occurring 

20 after December 31, 2018. 

21 SEC. 113. CLARIFICATION OF RETIREMENT INCOME AC22 COUNT RULES RELATING TO CHURCH-CON23 TROLLED ORGANIZATIONS. 

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

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1 ed by inserting ‘‘(including an employee described in sec2 tion 414(e)(3)(B))’’ after ‘‘employee described in para3 graph (1)’’. 

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

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

6 after the date of the enactment of this Act. 

7 TITLE II—ADMINISTRATIVE 

8 IMPROVEMENTS 

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

10 MAY BE TREATED AS IN EFFECT AS OF CLOSE 

11 OF YEAR. 

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

13 the Internal Revenue Code of 1986 is amended— 

14 (1) by striking ‘‘RETROACTIVE CHANGES IN

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

16 AMENDMENTS.— 

17 ‘‘(1) CERTAIN RETROACTIVE CHANGES IN

18 PLAN.—A stock bonus’’; and 

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

20 paragraph: 

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

22 adopts a stock bonus, pension, profit-sharing, or an23 nuity plan after the close of a taxable year but be24 fore the time prescribed by law for filing the return 

25 of the employer for the taxable year (including exVerDate Sep 11 2014 01:39 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H1007.IH H1007

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1 tensions thereof), the employer may elect to treat 

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

3 of the taxable year.’’. 

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

5 this section shall apply to plans adopted for taxable years 

6 beginning after December 31, 2018. 

7 SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF 

8 PLANS. 

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

10 and the Secretary of Labor shall, in cooperation, modify 

11 the returns required under section 6058 of the Internal 

12 Revenue Code of 1986 and the reports required by section 

13 104 of the Employee Retirement Income Security Act of 

14 1974 (29 U.S.C. 1024) so that all members of a group 

15 of plans described in subsection (c) may file a single aggre16 gated annual return or report satisfying the requirements 

17 of both such sections. 

18 (b) ADMINISTRATIVE REQUIREMENTS.—In devel19 oping the consolidated return or report under subsection 

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

21 Labor may require such return or report to include any 

22 information regarding each plan in the group as such Sec23 retaries determine is necessary or appropriate for the en24 forcement and administration of the Internal Revenue 


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1 Code of 1986 and the Employee Retirement Income Secu2 rity Act of 1974. 

3 (c) PLANS DESCRIBED.—A group of plans is de4 scribed in this subsection if all plans in the group— 

5 (1) are individual account plans or defined con6 tribution plans (as defined in section 3(34) of the 

7 Employee Retirement Income Security Act of 1974 

8 (29 U.S.C. 1002(34)) or in section 414(i) of the In9 ternal Revenue Code of 1986); 

10 (2) have— 

11 (A) the same trustee (as described in sec12 tion 403(a) of such Act (29 U.S.C. 1103(a))); 

13 (B) the same one or more named fidu14 ciaries (as described in section 402(a) of such 

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

16 (C) the same administrator (as defined in 

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

18 1002(16)(A))) and plan administrator (as de19 fined in section 414(g) of the Internal Revenue 

20 Code of 1986); and 

21 (D) plan years beginning on the same 

22 date; and 

23 (3) provide the same investments or investment 

24 options to participants and beneficiaries. 


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

2 Income Security Act of 1974 shall be treated as meeting 

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

4 plans if the same person that performs each of the func5 tions described in such paragraph, as applicable, for all 

6 other plans in such group performs each of such functions 

7 for such plan. 

8 (d) CLARIFICATION RELATING TO ELECTRONIC FIL9 ING OF RETURNS FOR DEFERRED COMPENSATION

10 PLANS.— 

11 (1) IN GENERAL.—Section 6011(e) of the Inter12 nal Revenue Code of 1986 is amended by adding at 

13 the end the following new paragraph: 

14 ‘‘(6) APPLICATION OF NUMERICAL LIMITATION

15 TO RETURNS RELATING TO DEFERRED COMPENSA16 TION PLANS.—For purposes of applying the numer17 ical limitation under paragraph (2)(A) to any return 

18 required under section 6058, information regarding 

19 each plan for which information is provided on such 

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

21 (2) EFFECTIVE DATE.—The amendment made 

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

23 be filed with respect to plan years beginning after 

24 December 31, 2018. 


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

2 subsection (a) shall be implemented not later than Janu3 ary 1, 2021, and shall apply to returns and reports for 

4 plan years beginning after December 31, 2020. 

5 SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME. 

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

7 105(a)(2) of the Employee Retirement Income Security 

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

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

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

11 and inserting ‘‘diversification, and’’; and 

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

13 ‘‘(iii) the lifetime income disclosure 

14 described in subparagraph (D)(i). 

15 In the case of pension benefit statements de16 scribed in clause (i) of paragraph (1)(A), a life17 time income disclosure under clause (iii) of this 

18 subparagraph shall be required to be included 

19 in only one pension benefit statement during 

20 any one 12-month period.’’. 

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

22 105(a) of the Employee Retirement Income Security Act 

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

24 end the following new subparagraph: 

25 ‘‘(D) LIFETIME INCOME DISCLOSURE.— 


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1 ‘‘(i) IN GENERAL.— 

2 ‘‘(I) DISCLOSURE.—A lifetime in3 come disclosure shall set forth the life4 time income stream equivalent of the 

5 total benefits accrued with respect to 

6 the participant or beneficiary. 

7 ‘‘(II) LIFETIME INCOME STREAM

8 EQUIVALENT OF THE TOTAL BENE9 FITS ACCRUED.—For purposes of this 

10 subparagraph, the term ‘lifetime in11 come stream equivalent of the total 

12 benefits accrued’ means the amount of 

13 monthly payments the participant or 

14 beneficiary would receive if the total 

15 accrued benefits of such participant or 

16 beneficiary were used to provide life17 time income streams described in sub18 clause (III), based on assumptions 

19 specified in rules prescribed by the 

20 Secretary. 

21 ‘‘(III) LIFETIME INCOME

22 STREAMS.—The lifetime income 

23 streams described in this subclause 

24 are a qualified joint and survivor an25 nuity (as defined in section 205(d)), 


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1 based on assumptions specified in 

2 rules prescribed by the Secretary, in3 cluding the assumption that the par4 ticipant or beneficiary has a spouse of 

5 equal age, and a single life annuity. 

6 Such lifetime income streams may 

7 have a term certain or other features 

8 to the extent permitted under rules 

9 prescribed by the Secretary. 

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

11 than 1 year after the date of the enact12 ment of the Retirement Enhancement and 

13 Savings Act of 2019, the Secretary shall 

14 issue a model lifetime income disclosure, 

15 written in a manner so as to be understood 

16 by the average plan participant, which— 

17 ‘‘(I) explains that the lifetime in18 come stream equivalent is only pro19 vided as an illustration; 

20 ‘‘(II) explains that the actual 

21 payments under the lifetime income 

22 stream described in clause (i)(III) 

23 which may be purchased with the 

24 total benefits accrued will depend on 

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1 stantially from the lifetime income 

2 stream equivalent in the disclosures; 

3 ‘‘(III) explains the assumptions 

4 upon which the lifetime income stream 

5 equivalent was determined; and 

6 ‘‘(IV) provides such other similar 

7 explanations as the Secretary con8 siders appropriate. 

9 ‘‘(iii) ASSUMPTIONS AND RULES.— 

10 Not later than 1 year after the date of the 

11 enactment of the Retirement Enhancement 

12 and Savings Act of 2019, the Secretary 

13 shall— 

14 ‘‘(I) prescribe assumptions which 

15 administrators of individual account 

16 plans may use in converting total ac17 crued benefits into lifetime income 

18 stream equivalents for purposes of 

19 this subparagraph; and 

20 ‘‘(II) issue interim final rules 

21 under clause (i). 

22 In prescribing assumptions under sub23 clause (I), the Secretary may prescribe a 

24 single set of specific assumptions (in which 

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1 tors which facilitate such conversions), or 

2 ranges of permissible assumptions. To the 

3 extent that an accrued benefit is or may be 

4 invested in a lifetime income stream de5 scribed in clause (i)(III), the assumptions 

6 prescribed under subclause (I) shall, to the 

7 extent appropriate, permit administrators 

8 of individual account plans to use the 

9 amounts payable under such lifetime in10 come stream as a lifetime income stream 

11 equivalent. 

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

13 plan fiduciary, plan sponsor, or other per14 son shall have any liability under this title 

15 solely by reason of the provision of lifetime 

16 income stream equivalents which are de17 rived in accordance with the assumptions 

18 and rules described in clause (iii) and 

19 which include the explanations contained in 

20 the model lifetime income disclosure de21 scribed in clause (ii). This clause shall 

22 apply without regard to whether the provi23 sion of such lifetime income stream equiva24 lent is required by subparagraph (B)(iii). 


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1 ‘‘(v) EFFECTIVE DATE.—The require2 ment in subparagraph (B)(iii) shall apply 

3 to pension benefit statements furnished 

4 more than 12 months after the latest of 

5 the issuance by the Secretary of— 

6 ‘‘(I) interim final rules under 

7 clause (i); 

8 ‘‘(II) the model disclosure under 

9 clause (ii); or 

10 ‘‘(III) the assumptions under 

11 clause (iii).’’. 

12 SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 

13 LIFETIME INCOME PROVIDER. 

14 Section 404 of the Employee Retirement Income Se15 curity Act of 1974 (29 U.S.C. 1104) is amended by adding 

16 at the end the following: 

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

18 ‘‘(1) IN GENERAL.—With respect to the selec19 tion of an insurer for a guaranteed retirement in20 come contract, the requirements of subsection 

21 (a)(1)(B) will be deemed to be satisfied if a fidu22 ciary— 

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

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1 fying insurers from which to purchase such con2 tracts; 

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

4 under subparagraph (A)— 

5 ‘‘(i) considers the financial capability 

6 of such insurer to satisfy its obligations 

7 under the guaranteed retirement income 

8 contract; and 

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

10 and commissions) of the guaranteed retire11 ment income contract offered by the in12 surer in relation to the benefits and prod13 uct features of the contract and adminis14 trative services to be provided under such 

15 contract; and 

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

17 concludes that— 

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

19 insurer is financially capable of satisfying 

20 its obligations under the guaranteed retire21 ment income contract; and 

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

23 guaranteed retirement income contract as 

24 described in subparagraph (B)(ii) is rea25 sonable. 


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1 ‘‘(2) FINANCIAL CAPABILITY OF THE IN2 SURER.—A fiduciary will be deemed to satisfy the 

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

4 if— 

5 ‘‘(A) the fiduciary obtains written rep6 resentations from the insurer that— 

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

8 guaranteed retirement income contracts; 

9 ‘‘(ii) the insurer, at the time of selec10 tion and for each of the immediately pre11 ceding 7 plan years— 

12 ‘‘(I) operates under a certificate 

13 of authority from the insurance com14 missioner of its domiciliary State 

15 which has not been revoked or sus16 pended; 

17 ‘‘(II) has filed audited financial 

18 statements in accordance with the 

19 laws of its domiciliary State under ap20 plicable statutory accounting prin21 ciples; 

22 ‘‘(III) maintains (and has main23 tained) reserves which satisfies all the 

24 statutory requirements of all States 

25 where the insurer does business; and 


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1 ‘‘(IV) is not operating under an 

2 order of supervision, rehabilitation, or 

3 liquidation; 

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

5 every 5 years, a financial examination 

6 (within the meaning of the law of its domi7 ciliary State) by the insurance commis8 sioner of the domiciliary State (or rep9 resentative, designee, or other party ap10 proved by such commissioner); and 

11 ‘‘(iv) the insurer will notify the fidu12 ciary of any change in circumstances oc13 curring after the provision of the represen14 tations in clauses (i), (ii), and (iii) which 

15 would preclude the insurer from making 

16 such representations at the time of 

17 issuance of the guaranteed retirement in18 come contract; and 

19 ‘‘(B) after receiving such representations 

20 and as of the time of selection, the fiduciary 

21 has not received any notice described in sub22 paragraph (A)(iv) and is in possession of no 

23 other information which would cause the fidu24 ciary to question the representations provided. 


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1 ‘‘(3) NO REQUIREMENT TO SELECT LOWEST

2 COST.—Nothing in this subsection shall be construed 

3 to require a fiduciary to select the lowest cost con4 tract. A fiduciary may consider the value of a con5 tract, including features and benefits of the contract 

6 and attributes of the insurer (including, without lim7 itation, the insurer’s financial strength) in conjunc8 tion with the cost of the contract. 

9 ‘‘(4) TIME OF SELECTION.— 

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

11 subsection, the time of selection is— 

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

13 contract are selected for distribution of 

14 benefits to a specific participant or bene15 ficiary; or 

16 ‘‘(ii) if the fiduciary periodically re17 views the continuing appropriateness of the 

18 conclusion described in paragraph (1)(C) 

19 with respect to a selected insurer, taking 

20 into account the considerations described 

21 in such paragraph, the time that the in22 surer and the contract are selected to pro23 vide benefits at future dates to participants 

24 or beneficiaries under the plan. 


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1 Nothing in the preceding sentence shall be con2 strued to require the fiduciary to review the ap3 propriateness of a selection after the purchase 

4 of a contract for a participant or beneficiary. 

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

6 be deemed to have conducted the periodic re7 view described in subparagraph (A)(ii) if the fi8 duciary obtains the written representations de9 scribed in clauses (i), (ii), and (iii) of paragraph 

10 (2)(A) from the insurer on an annual basis, un11 less the fiduciary receives any notice described 

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

13 aware of facts that would cause the fiduciary to 

14 question such representations. 

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

16 satisfies the requirements of this subsection shall not 

17 be liable following the distribution of any benefit, or 

18 the investment by or on behalf of a participant or 

19 beneficiary pursuant to the selected guaranteed re20 tirement income contract, for any losses that may 

21 result to the participant or beneficiary due to an in22 surer’s inability to satisfy its financial obligations 

23 under the terms of such contract. 

24 ‘‘(6) DEFINITIONS.—For purposes of this sub25 section— 


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

2 an insurance company, insurance service, or in3 surance organization, including affiliates of 

4 such companies. 

5 ‘‘(B) GUARANTEED RETIREMENT INCOME

6 CONTRACT.—The term ‘guaranteed retirement 

7 income contract’ means an annuity contract for 

8 a fixed term or a contract (or provision or fea9 ture thereof) which provides guaranteed bene10 fits annually (or more frequently) for at least 

11 the remainder of the life of the participant or 

12 the joint lives of the participant and the partici13 pant’s designated beneficiary as part of an indi14 vidual account plan.’’. 

15 SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 

16 TO PROTECT OLDER, LONGER SERVICE PAR17 TICIPANTS. 

18 (a) IN GENERAL.—Section 401 of the Internal Rev19 enue Code of 1986 is amended— 

20 (1) by redesignating subsection (o) as sub21 section (p); and 

22 (2) by inserting after subsection (n) the fol23 lowing new subsection: 


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1 ‘‘(o) SPECIAL RULES FOR APPLYING NON2 DISCRIMINATION RULES TO PROTECT OLDER, LONGER

3 SERVICE AND GRANDFATHERED PARTICIPANTS.— 

4 ‘‘(1) TESTING OF DEFINED BENEFIT PLANS

5 WITH CLOSED CLASSES OF PARTICIPANTS.— 

6 ‘‘(A) BENEFITS, RIGHTS, OR FEATURES

7 PROVIDED TO CLOSED CLASSES.—A defined 

8 benefit plan which provides benefits, rights, or 

9 features to a closed class of participants shall 

10 not fail to satisfy the requirements of sub11 section (a)(4) by reason of the composition of 

12 such closed class or the benefits, rights, or fea13 tures provided to such closed class, if— 

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

15 class closes and the 2 succeeding plan 

16 years, such benefits, rights, and features 

17 satisfy the requirements of subsection 

18 (a)(4) (without regard to this subpara19 graph but taking into account the rules of 

20 subparagraph (I)), 

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

22 class was closed, any plan amendment 

23 which modifies the closed class or the ben24 efits, rights, and features provided to such 

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1 cantly in favor of highly compensated em2 ployees, and 

3 ‘‘(iii) the class was closed before Sep4 tember 21, 2016, or the plan is described 

5 in subparagraph (C). 

6 ‘‘(B) AGGREGATE TESTING WITH DEFINED

7 CONTRIBUTION PLANS PERMITTED ON A BENE8 FITS BASIS.— 

9 ‘‘(i) IN GENERAL.—For purposes of 

10 determining compliance with subsection 

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

12 plan described in clause (iii) may be aggre13 gated and tested on a benefits basis with 

14 1 or more defined contribution plans, in15 cluding with the portion of 1 or more de16 fined contribution plans which— 

17 ‘‘(I) provides matching contribu18 tions (as defined in subsection 

19 (m)(4)(A)), 

20 ‘‘(II) provides annuity contracts 

21 described in section 403(b) which are 

22 purchased with matching contribu23 tions or nonelective contributions, or 

24 ‘‘(III) consists of an employee 

25 stock ownership plan (within the 


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

2 tax credit employee stock ownership 

3 plan (within the meaning of section 

4 409(a)). 

5 ‘‘(ii) SPECIAL RULES FOR MATCHING

6 CONTRIBUTIONS.—For purposes of clause 

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

8 with a portion of a defined contribution 

9 plan providing matching contributions— 

10 ‘‘(I) such defined benefit plan 

11 must also be aggregated with any por12 tion of such defined contribution plan 

13 which provides elective deferrals de14 scribed in subparagraph (A) or (C) of 

15 section 402(g)(3), and 

16 ‘‘(II) such matching contribu17 tions shall be treated in the same 

18 manner as nonelective contributions, 

19 including for purposes of applying the 

20 rules of subsection (l). 

21 ‘‘(iii) PLANS DESCRIBED.—A defined 

22 benefit plan is described in this clause if— 

23 ‘‘(I) the plan provides benefits to 

24 a closed class of participants, 


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1 ‘‘(II) for the plan year as of 

2 which the class closes and the 2 suc3 ceeding plan years, the plan satisfies 

4 the requirements of section 410(b) 

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

6 to this subparagraph but taking into 

7 account the rules of subparagraph 

8 (I)), 

9 ‘‘(III) after the date as of which 

10 the class was closed, any plan amend11 ment which modifies the closed class 

12 or the benefits provided to such closed 

13 class does not discriminate signifi14 cantly in favor of highly compensated 

15 employees, and 

16 ‘‘(IV) the class was closed before 

17 September 21, 2016, or the plan is 

18 described in subparagraph (C). 

19 ‘‘(C) PLANS DESCRIBED.—A plan is de20 scribed in this subparagraph if, taking into ac21 count any predecessor plan— 

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

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

24 closed, and 


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1 ‘‘(ii) during the 5-year period pre2 ceding the date the class is closed, there 

3 has not been a substantial increase in the 

4 coverage or value of the benefits, rights, or 

5 features described in subparagraph (A) or 

6 in the coverage or benefits under the plan 

7 described in subparagraph (B)(iii) (which8 ever is applicable). 

9 ‘‘(D) DETERMINATION OF SUBSTANTIAL

10 INCREASE FOR BENEFITS, RIGHTS, AND FEA11 TURES.—In applying subparagraph (C)(ii) for 

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

13 be treated as having had a substantial increase 

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

15 features described in subparagraph (A) during 

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

17 period— 

18 ‘‘(i) the number of participants cov19 ered by such benefits, rights, or features 

20 on the date such period ends is more than 

21 50 percent greater than the number of 

22 such participants on the first day of the 

23 plan year in which such period began, or 

24 ‘‘(ii) such benefits, rights, and fea25 tures have been modified by 1 or more 


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1 plan amendments in such a way that, as of 

2 the date the class is closed, the value of 

3 such benefits, rights, and features to the 

4 closed class as a whole is substantially 

5 greater than the value as of the first day 

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

7 such amendments. 

8 ‘‘(E) DETERMINATION OF SUBSTANTIAL

9 INCREASE FOR AGGREGATE TESTING ON BENE10 FITS BASIS.—In applying subparagraph (C)(ii) 

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

12 plan shall be treated as having had a substan13 tial increase in coverage or benefits during the 

14 applicable 5-year period only if, during such pe15 riod— 

16 ‘‘(i) the number of participants bene17 fiting under the plan on the date such pe18 riod ends is more than 50 percent greater 

19 than the number of such participants on 

20 the first day of the plan year in which such 

21 period began, or 

22 ‘‘(ii) the average benefit provided to 

23 such participants on the date such period 

24 ends is more than 50 percent greater than 

25 the average benefit provided on the first 


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1 day of the plan year in which such period 

2 began. 

3 ‘‘(F) CERTAIN EMPLOYEES DIS4 REGARDED.—For purposes of subparagraphs 

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

6 or in coverage or benefits, whichever is applica7 ble, which is attributable to such coverage and 

8 value or coverage and benefits provided to em9 ployees— 

10 ‘‘(i) who became participants as a re11 sult of a merger, acquisition, or similar 

12 event which occurred during the 7-year pe13 riod preceding the date the class is closed, 

14 or 

15 ‘‘(ii) who became participants by rea16 son of a merger of the plan with another 

17 plan which had been in effect for at least 

18 5 years as of the date of the merger, 

19 shall be disregarded, except that clause (ii) 

20 shall apply for purposes of subparagraph (D) 

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

22 or features under 1 plan are conformed to the 

23 benefits, rights, or features of the other plan 

24 prospectively. 


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1 ‘‘(G) RULES RELATING TO AVERAGE BEN2 EFIT.—For purposes of subparagraph (E)— 

3 ‘‘(i) the average benefit provided to 

4 participants under the plan will be treated 

5 as having remained the same between the 

6 2 dates described in subparagraph (E)(ii) 

7 if the benefit formula applicable to such 

8 participants has not changed between such 

9 dates, and 

10 ‘‘(ii) if the benefit formula applicable 

11 to 1 or more participants under the plan 

12 has changed between such 2 dates, then 

13 the average benefit under the plan shall be 

14 considered to have increased by more than 

15 50 percent only if— 

16 ‘‘(I) the total amount determined 

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

18 participants benefiting under the plan 

19 for the plan year in which the 5-year 

20 period described in subparagraph (E) 

21 ends, exceeds 

22 ‘‘(II) the total amount deter23 mined under section 430(b)(1)(A)(i) 

24 for all such participants for such plan 

25 year, by using the benefit formula in 


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1 effect for each such participant for 

2 the first plan year in such 5-year pe3 riod, 

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

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

6 the normal cost of the plan (as determined 

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

8 in lieu of the amount determined under 

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

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

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

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

13 a single plan rather than as separate plans 

14 maintained by each participating employer. 

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

16 subparagraphs (A)(i) and (B)(iii)(II), the fol17 lowing rules shall apply: 

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

19 the closing of the class of participants shall 

20 not be treated as a significant change in 

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

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

23 to be eligible to be aggregated and treated 

24 as a single plan solely by reason of having 

25 different plan years. 


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1 ‘‘(iii) Changes in the employee popu2 lation shall be disregarded to the extent at3 tributable to individuals who become em4 ployees or cease to be employees, after the 

5 date the class is closed, by reason of a 

6 merger, acquisition, divestiture, or similar 

7 event. 

8 ‘‘(iv) Aggregation and all other testing 

9 methodologies otherwise applicable under 

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

11 be taken into account. 

12 The rule of clause (ii) shall also apply for pur13 poses of determining whether plans to which 

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

15 and treated as 1 plan for purposes of deter16 mining whether such plans meet the require17 ments of subsection (a)(4) and section 410(b). 

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

19 this paragraph, if a portion of a defined benefit 

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

21 is spun off to another employer and the spun22 off plan continues to satisfy the requirements 

23 of— 

24 ‘‘(i) subparagraph (A)(i) or 

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


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1 original plan was still within the 3-year pe2 riod described in such subparagraph at the 

3 time of the spin off, and 

4 ‘‘(ii) subparagraph (A)(ii) or 

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

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

7 of the spun-off plan shall continue with respect 

8 to such other employer. 

9 ‘‘(2) TESTING OF DEFINED CONTRIBUTION

10 PLANS.— 

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

12 defined contribution plan shall be permitted to 

13 be tested on a benefits basis if— 

14 ‘‘(i) such defined contribution plan 

15 provides make-whole contributions to a 

16 closed class of participants whose accruals 

17 under a defined benefit plan have been re18 duced or eliminated, 

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

20 contribution plan as of which the class eli21 gible to receive such make-whole contribu22 tions closes and the 2 succeeding plan 

23 years, such closed class of participants sat24 isfies the requirements of section 


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1 410(b)(2)(A)(i) (determined by applying 

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

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

4 class was closed, any plan amendment to 

5 the defined contribution plan which modi6 fies the closed class or the allocations, ben7 efits, rights, and features provided to such 

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

11 ‘‘(iv) the class was closed before Sep12 tember 21, 2016, or the defined benefit 

13 plan under clause (i) is described in para14 graph (1)(C) (as applied for purposes of 

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

16 ‘‘(B) AGGREGATION WITH PLANS INCLUD17 ING MATCHING CONTRIBUTIONS.— 

18 ‘‘(i) IN GENERAL.—With respect to 1 

19 or more defined contribution plans de20 scribed in subparagraph (A), for purposes 

21 of determining compliance with subsection 

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

23 such plans which provides make-whole con24 tributions or other nonelective contribu25 tions may be aggregated and tested on a 


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1 benefits basis with the portion of 1 or 

2 more other defined contribution plans 

3 which— 

4 ‘‘(I) provides matching contribu5 tions (as defined in subsection 

6 (m)(4)(A)), 

7 ‘‘(II) provides annuity contracts 

8 described in section 403(b) which are 

9 purchased with matching contribu10 tions or nonelective contributions, or 

11 ‘‘(III) consists of an employee 

12 stock ownership plan (within the 

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

14 tax credit employee stock ownership 

15 plan (within the meaning of section 

16 409(a)). 

17 ‘‘(ii) SPECIAL RULES FOR MATCHING

18 CONTRIBUTIONS.—Rules similar to the 

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

20 for purposes of clause (i). 

21 ‘‘(C) SPECIAL RULES FOR TESTING DE22 FINED CONTRIBUTION PLAN FEATURES PRO23 VIDING MATCHING CONTRIBUTIONS TO CERTAIN

24 OLDER, LONGER SERVICE PARTICIPANTS.—In 

25 the case of a defined contribution plan which 


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1 provides benefits, rights, or features to a closed 

2 class of participants whose accruals under a de3 fined benefit plan have been reduced or elimi4 nated, the plan shall not fail to satisfy the re5 quirements of subsection (a)(4) solely by reason 

6 of the composition of the closed class or the 

7 benefits, rights, or features provided to such 

8 closed class if the defined contribution plan and 

9 defined benefit plan otherwise meet the require10 ments of subparagraph (A) but for the fact that 

11 the make-whole contributions under the defined 

12 contribution plan are made in whole or in part 

13 through matching contributions. 

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

15 this paragraph, if a portion of a defined con16 tribution plan described in subparagraph (A) or 

17 (C) is spun off to another employer, the treat18 ment under subparagraph (A) or (C) of the 

19 spun-off plan shall continue with respect to the 

20 other employer if such plan continues to comply 

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

22 original plan was still within the 3-year period 

23 described in such clause at the time of the spin 

24 off) and (iii) of subparagraph (A), as deterVerDate Sep 11 2014 01:39 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\H1007.IH H1007

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1 mined for purposes of subparagraph (A) or (C), 

2 whichever is applicable. 

3 ‘‘(3) DEFINITIONS.—For purposes of this sub4 section— 

5 ‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex6 cept as otherwise provided in paragraph (2)(C), 

7 the term ‘make-whole contributions’ means non8 elective allocations for each employee in the 

9 class which are reasonably calculated, in a con10 sistent manner, to replace some or all of the re11 tirement benefits which the employee would 

12 have received under the defined benefit plan 

13 and any other plan or qualified cash or deferred 

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

15 change had been made to such defined benefit 

16 plan and such other plan or arrangement. For 

17 purposes of the preceding sentence, consistency 

18 shall not be required with respect to employees 

19 who were subject to different benefit formulas 

20 under the defined benefit plan. 

21 ‘‘(B) REFERENCES TO CLOSED CLASS OF

22 PARTICIPANTS.—References to a closed class of 

23 participants and similar references to a closed 

24 class shall include arrangements under which 1 

25 or more classes of participants are closed, exVerDate Sep 11 2014 01:39 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\H1007.IH H1007

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1 cept that 1 or more classes of participants 

2 closed on different dates shall not be aggre3 gated for purposes of determining the date any 

4 such class was closed. 

5 ‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 

6 The term ‘highly compensated employee’ has 

7 the meaning given such term in section 

8 414(q).’’. 

9 (b) PARTICIPATION REQUIREMENTS.—Paragraph 

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

11 1986 is amended by adding at the end the following new 

12 subparagraph: 

13 ‘‘(I) PROTECTED PARTICIPANTS.— 

14 ‘‘(i) IN GENERAL.—A plan shall be 

15 deemed to satisfy the requirements of sub16 paragraph (A) if— 

17 ‘‘(I) the plan is amended— 

18 ‘‘(aa) to cease all benefit ac19 cruals, or 

20 ‘‘(bb) to provide future ben21 efit accruals only to a closed 

22 class of participants, 

23 ‘‘(II) the plan satisfies subpara24 graph (A) (without regard to this subVerDate Sep 11 2014 01:39 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\H1007.IH H1007

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1 paragraph) as of the effective date of 

2 the amendment, and 

3 ‘‘(III) the amendment was adopt4 ed before September 21, 2016, or the 

5 plan is described in clause (ii). 

6 ‘‘(ii) PLANS DESCRIBED.—A plan is 

7 described in this clause if the plan would 

8 be described in subsection (o)(1)(C), as ap9 plied for purposes of subsection 

10 (o)(1)(B)(iii)(IV) and by treating the effec11 tive date of the amendment as the date the 

12 class was closed for purposes of subsection 

13 (o)(1)(C). 

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

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

16 410(b)(6)(C), the amendments described in 

17 clause (i) shall not be treated as a signifi18 cant change in coverage under section 

19 410(b)(6)(C)(i)(II). 

20 ‘‘(iv) SPUN-OFF PLANS.—For pur21 poses of this subparagraph, if a portion of 

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

23 another employer, the treatment under 

24 clause (i) of the spun-off plan shall con25 tinue with respect to the other employer.’’. 


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1 (c) EFFECTIVE DATE.— 

2 (1) IN GENERAL.—Except as provided in para3 graph (2), the amendments made by this section 

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

5 Act, without regard to whether any plan modifica6 tions referred to in such amendments are adopted or 

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

8 (2) SPECIAL RULES.— 

9 (A) ELECTION OF EARLIER APPLICA10 TION.—At the election of the plan sponsor, the 

11 amendments made by this section shall apply to 

12 plan years beginning after December 31, 2013. 

13 (B) CLOSED CLASSES OF PARTICIPANTS.— 

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

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

16 of the Internal Revenue Code of 1986 (as added 

17 by this section), a closed class of participants 

18 shall be treated as being closed before Sep19 tember 21, 2016, if the plan sponsor’s intention 

20 to create such closed class is reflected in formal 

21 written documents and communicated to par22 ticipants before such date. 

23 (C) CERTAIN POST-ENACTMENT PLAN

24 AMENDMENTS.—A plan shall not be treated as 

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1 tion 401(o)(1)(A), 401(o)(1)(B)(iii), or 

2 401(a)(26) of such Code (as added by this sec3 tion) to such plan solely because in the case 

4 of— 

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

6 was amended before the date of the enact7 ment of this Act to eliminate 1 or more 

8 benefits, rights, or features, and is further 

9 amended after such date of enactment to 

10 provide such previously eliminated benefits, 

11 rights, or features to a closed class of par12 ticipants, or 

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

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

15 before the date of the enactment of this 

16 Act to cease all benefit accruals, and is 

17 further amended after such date of enact18 ment to provide benefit accruals to a closed 

19 class of participants. 

20 Any such section shall only apply if the plan 

21 otherwise meets the requirements of such sec22 tion and in applying such section, the date the 

23 class of participants is closed shall be the effec24 tive date of the later amendment. 


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1 SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC 

2 PLANS. 

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

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

5 Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amend6 ed— 

7 (1) in clause (i), by striking ‘‘plan,’’ and insert8 ing ‘‘plan other than a CSEC plan (as defined in 

9 section 210(f)(1))’’; 

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

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

12 end and inserting ‘‘, or’’; and 

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

14 clause: 

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

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

17 years beginning after December 31, 2017, 

18 for each individual who is a participant in 

19 such plan during the plan year an amount 

20 equal to the sum of— 

21 ‘‘(I) the additional premium (if 

22 any) determined under subparagraph 

23 (E), and 

24 ‘‘(II) $19.’’. 

25 (b) VARIABLE RATE PREMIUM.— 

26 (1) UNFUNDED VESTED BENEFITS.— 


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

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

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

4 1306(a)(3)) is amended by adding at the end 

5 the following new clause: 

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

7 case of a CSEC plan (as defined in section 

8 210(f)(1)), the term ‘unfunded vested ben9 efits’ means, for plan years beginning after 

10 December 31, 2017, the excess (if any) 

11 of— 

12 ‘‘(I) the funding liability of the 

13 plan as determined under section 

14 306(j)(5)(C) for the plan year by only 

15 taking into account vested benefits, 

16 over 

17 ‘‘(II) the fair market value of 

18 plan assets for the plan year which 

19 are held by the plan on the valuation 

20 date.’’. 

21 (B) CONFORMING AMENDMENT.—Clause 

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

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

24 ‘‘For purposes’’ and inserting ‘‘Except as pro25 vided in clause (v), for purposes’’. 


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1 (2) APPLICABLE DOLLAR AMOUNT.— 

2 (A) IN GENERAL.—Paragraph (8) of sec3 tion 4006(a) of such Act (29 U.S.C. 1306(a)) 

4 is amended by adding at the end the following 

5 new subparagraph: 

6 ‘‘(E) CSEC PLANS.—In the case of a 

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

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

9 (B) CONFORMING AMENDMENT.—Subpara10 graph (A) of section 4006(a)(8) of such Act (29 

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

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

13 TITLE III—BENEFITS RELATING 

14 TO UNITED STATES TAX COURT 

15 SEC. 301. THRIFT SAVINGS PLAN CONTRIBUTIONS FOR 

16 JUDGES IN THE FEDERAL EMPLOYEES RE17 TIREMENT SYSTEM. 

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

19 7447 of the Internal Revenue Code of 1986 is amended 

20 to read as follows: 

21 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

22 JUDGE.—No contributions under section 

23 8432(c) of title 5, United States Code, shall be 

24 made for the benefit of a judge who has filed 


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1 an election to receive retired pay under sub2 section (e).’’. 

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

4 the Internal Revenue Code of 1986 is amended by adding 

5 at the end the following new subparagraph: 

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

7 receives a distribution from the Thrift Savings 

8 Plan and who later receives retired pay under 

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

10 an amount equal to the amount of the distribu11 tion which represents the Government’s con12 tribution to the individual’s Thrift Savings Ac13 count during years of service as a full-time judi14 cial officer under the Federal Employees Retire15 ment System, without regard to earnings attrib16 utable to such amount. Where such an offset 

17 would exceed 50 percent of the retired pay to 

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

19 divided equally over the first 2 years in which 

20 the individual receives the annuity.’’. 

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

22 this section shall apply to basic pay earned while serving 

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

24 the date of the enactment of this Act. 


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1 SEC. 302. CHANGE IN VESTING PERIOD FOR SURVIVOR AN2 NUITIES AND WAIVER OF VESTING PERIOD IN 

3 THE EVENT OF ASSASSINATION. 

4 (a) ELIGIBILITY IN CASE OF DEATH BY ASSASSINA5 TION.—Subsection (h) of section 7448 of the Internal Rev6 enue Code of 1986 is amended to read as follows: 

7 ‘‘(h) ENTITLEMENT TO ANNUITY.— 

8 ‘‘(1) IN GENERAL.— 

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

10 a judge or magistrate judge of the Tax Court 

11 described in paragraph (2) is survived by a sur12 viving spouse but not by a dependent child, 

13 there shall be paid to such surviving spouse an 

14 annuity beginning with the day of the death of 

15 the judge or magistrate judge of the Tax Court 

16 or following the surviving spouse’s attainment 

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

18 computed as provided in subsection (m). 

19 ‘‘(B) ANNUITY TO SURVIVING SPOUSE AND

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

21 Tax Court described in paragraph (2) is sur22 vived by a surviving spouse and dependent child 

23 or children, there shall be paid to such sur24 viving spouse an annuity, beginning on the day 

25 of the death of the judge or magistrate judge 

26 of the Tax Court, in an amount computed as 


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

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

3 immediate annuity equal to the lesser of— 

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

5 salary of such judge or magistrate judge of 

6 the Tax Court (determined in accordance 

7 with subsection (m)), or 

8 ‘‘(ii) 20 percent of such average an9 nual salary, divided by the number of such 

10 children. 

11 ‘‘(C) ANNUITY TO SURVIVING DEPENDENT

12 CHILDREN.—If a judge or magistrate judge of 

13 the Tax Court described in paragraph (2) 

14 leaves no surviving spouse but leaves a sur15 viving dependent child or children, there shall 

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

17 immediate annuity equal to the lesser of— 

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

19 salary of such judge or magistrate judge of 

20 the Tax Court (determined in accordance 

21 with subsection (m)), or 

22 ‘‘(ii) 40 percent of such average an23 nual salary divided by the number of such 

24 children. 


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

2 to any judge or magistrate judge of the Tax Court 

3 electing under subsection (b)— 

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

5 judge of the Tax Court after having rendered at 

6 least 18 months of civilian service computed as 

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

8 months of which the salary deductions provided 

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

10 by subsection (d) have actually been made or 

11 the salary deductions required by the civil serv12 ice retirement laws have actually been made, or 

13 ‘‘(B) who dies by assassination after hav14 ing rendered less than 18 months of civilian 

15 service computed as prescribed in subsection (n) 

16 if, for the period of such service, the salary de17 ductions provided for by subsection (c)(1) or 

18 the deposits required by subsection (d) have ac19 tually been made. 

20 ‘‘(3) TERMINATION OF ANNUITY.— 

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

22 payable to a surviving spouse under this sub23 section shall be terminable upon such surviving 

24 spouse’s death or such surviving spouse’s re25 marriage before attaining age 55. 


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1 ‘‘(B) SURVIVING CHILD.—Any annuity 

2 payable to a child under this subsection shall be 

3 terminable upon the earliest of— 

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

5 ‘‘(ii) the child’s marriage, or 

6 ‘‘(iii) the child’s death, 

7 except that if such child is incapable of self-sup8 port by reason of mental or physical disability 

9 the child’s annuity shall be terminable only 

10 upon death, marriage, or recovery from such 

11 disability. 

12 ‘‘(C) DEPENDENT CHILD AFTER DEATH

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

14 a surviving spouse of a judge or magistrate 

15 judge of the Tax Court leaving a dependent 

16 child or children of the judge or magistrate 

17 judge of the Tax Court surviving such spouse, 

18 the annuity of such child or children shall be 

19 recomputed and paid as provided in paragraph 

20 (1)(C). 

21 ‘‘(D) RECOMPUTATION WITH RESPECT TO

22 OTHER DEPENDENT CHILDREN.—In any case 

23 in which the annuity of a dependent child is 

24 terminated under this subsection, the annuities 

25 of any remaining dependent child or children 


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1 based upon the service of the same judge or 

2 magistrate judge of the Tax Court shall be re3 computed and paid as though the child whose 

4 annuity was so terminated had not survived 

5 such judge. 

6 ‘‘(E) SPECIAL RULE FOR ASSASSINATED

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

8 or magistrate judge of the Tax Court described 

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

10 from the annuities otherwise payable under this 

11 section an amount equal to the amount of sal12 ary deductions that would have been made if 

13 such deductions had been made for 18 months 

14 prior to the death of the judge or magistrate 

15 judge of the Tax Court.’’. 

16 (b) DEFINITION OF ASSASSINATION.—Section 

17 7448(a) of the Internal Revenue Code of 1986 is amended 

18 by adding at the end the following new paragraph: 

19 ‘‘(10) The terms ‘assassinated’ and ‘assassina20 tion’ mean the killing of a judge or magistrate judge 

21 of the Tax Court that is motivated by the perform22 ance by the judge or magistrate judge of the Tax 

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


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1 (c) DETERMINATION OF ASSASSINATION.—Sub2 section (i) of section 7448 of the Internal Revenue Code 

3 of 1986 is amended— 

4 (1) by striking ‘‘OF DEPENDENCY AND DIS5 ABILITY.—Questions’’ and inserting ‘‘BY CHIEF

6 JUDGE.— 

7 ‘‘(1) DEPENDENCY AND DISABILITY.—Ques8 tions’’; and 

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

10 paragraph: 

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

12 determine whether the killing of a judge or mag13 istrate judge of the Tax Court was an assassination, 

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

15 of any Federal agency that investigates the killing of 

16 a judge or magistrate judge of the Tax Court shall 

17 provide to the chief judge any information that 

18 would assist the chief judge in making such a deter19 mination.’’. 

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

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

22 amended— 

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

24 and inserting ‘‘ANNUITIES.— 

25 ‘‘(1) IN GENERAL.—The annuity’’; 


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

2 and inserting ‘‘the sum of— 

3 ‘‘(A) 1.5 percent’’; 

4 (3) by striking ‘‘and (2) three-fourths of 1 per5 cent’’ and inserting ‘‘and 

6 ‘‘(B) three-fourths of 1 percent’’; 

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

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

9 except that’’; and 

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

11 paragraph: 

12 ‘‘(2) ASSASSINATED JUDGES AND MAGISTRATE

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

14 judge or magistrate judge of the Tax Court who is 

15 assassinated and who has served less than 18 

16 months, the annuity of the surviving spouse of such 

17 judge or magistrate judge of the Tax Court shall be 

18 based upon the average annual salary received by 

19 such judge or magistrate judge of the Tax Court for 

20 judicial service.’’. 

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

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

23 the following new subsection: 

24 ‘‘(u) OTHER BENEFITS IN CASE OF ASSASSINA25 TION.—In the case of a judge or magistrate judge of the 


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

2 under this section notwithstanding a survivor’s eligibility 

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

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

5 surviving spouse is eligible under this section shall be re6 duced to the extent that the total benefits paid under this 

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

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

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

10 SEC. 303. COORDINATION OF RETIREMENT AND SURVIVOR 

11 ANNUITY WITH THE FEDERAL EMPLOYEES 

12 RETIREMENT SYSTEM. 

13 (a) RETIREMENT.—Section 7447 of the Internal Rev14 enue Code of 1986 is amended— 

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

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

17 8401(19)’’; and 

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

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

20 ‘‘Office of Personnel Management’’. 

21 (b) ANNUITIES TO SURVIVING SPOUSES AND DE22 PENDENT CHILDREN.—Section 7448 of the Internal Rev23 enue Code of 1986 is amended— 

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

25 and inserting ‘‘sections 8332 and 8411’’; and 


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

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

3 SEC. 304. LIMIT ON TEACHING COMPENSATION OF RE4 TIRED JUDGES. 

5 (a) IN GENERAL.—Section 7447 of the Internal Rev6 enue Code of 1986 is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(k) TEACHING COMPENSATION OF RETIRED

9 JUDGES.—For purposes of the limitation under section 

10 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 

11 App.), any compensation for teaching approved under sec12 tion 502(a)(5) of such Act shall not be treated as outside 

13 earned income when received by a judge of the United 

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

15 for teaching performed during any calendar year for which 

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

17 as certified by the chief judge.’’. 

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

19 this section shall apply to any individual serving as a re20 tired judge of the United States Tax Court on or after 

21 the date of the enactment of this Act. 

22 SEC. 305. GENERAL PROVISIONS RELATING TO MAG23 ISTRATE JUDGES OF THE TAX COURT. 

24 (a) TITLE OF SPECIAL TRIAL JUDGE CHANGED TO

25 MAGISTRATE JUDGE OF THE TAX COURT.—The heading 


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1 of section 7443A of the Internal Revenue Code of 1986 

2 is amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 

3 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

4 COURT’’. 

5 (b) APPOINTMENT, TENURE, AND REMOVAL.—Sub6 section (a) of section 7443A of the Internal Revenue Code 

7 of 1986 is amended to read as follows: 

8 ‘‘(a) APPOINTMENT, TENURE, AND REMOVAL.— 

9 ‘‘(1) APPOINTMENT.—The chief judge may, 

10 from time to time, appoint and reappoint magistrate 

11 judges of the Tax Court for a term of 8 years. The 

12 magistrate judges of the Tax Court shall proceed 

13 under such rules as may be promulgated by the Tax 

14 Court. 

15 ‘‘(2) REMOVAL.— 

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

17 subparagraph (B), removal of a magistrate 

18 judge of the Tax Court during the term for 

19 which such magistrate judge is appointed shall 

20 be only for incompetency, misconduct, neglect 

21 of duty, or physical or mental disability. Re22 moval shall not occur unless a majority of all 

23 the judges of the Tax Court concur in the order 

24 of removal. Before any order of removal shall 

25 be entered, a full specification of the charges 


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1 shall be furnished to the magistrate judge of 

2 the Tax Court, and such magistrate judge shall 

3 be accorded by the judges of the Tax Court an 

4 opportunity to be heard on the charges. 

5 ‘‘(B) TERMINATION OF OFFICE.—The of6 fice of a magistrate judge of the Tax Court 

7 shall be terminated if the judges of the Tax 

8 Court determine that the services performed by 

9 such magistrate judge of the Tax Court are no 

10 longer needed.’’. 

11 (c) SALARY.—Subsection (d) of section 7443A of the 

12 Internal Revenue Code of 1986 is amended to read as fol13 lows: 

14 ‘‘(d) SALARY.—Each magistrate judge of the Tax 

15 Court shall receive salary— 

16 ‘‘(1) at a rate equal to 92 percent of the rate 

17 for judges of the Tax Court, and 

18 ‘‘(2) in the same installments as such judges.’’. 

19 (d) EXEMPTION FROM FEDERAL LEAVE PROVI20 SIONS.—Section 7443A of the Internal Revenue Code of 

21 1986 is amended by adding at the end the following new 

22 subsection: 

23 ‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI24 SIONS.— 


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1 ‘‘(1) IN GENERAL.—A magistrate judge of the 

2 Tax Court shall be exempt from the provisions of 

3 subchapter I of chapter 63 of title 5, United States 

4 Code. 

5 ‘‘(2) TREATMENT OF UNUSED LEAVE.— 

6 ‘‘(A) AFTER SERVICE AS MAGISTRATE

7 JUDGE OF THE TAX COURT.—If an individual 

8 who is exempted under paragraph (1) from the 

9 subchapter referred to in such paragraph was 

10 previously subject to such subchapter and, with11 out a break in service, again becomes subject to 

12 such subchapter on completion of the individ13 ual’s service as a magistrate judge of the Tax 

14 Court, the unused annual leave and sick leave 

15 standing to the individual’s credit at the time 

16 such individual became a magistrate judge of 

17 the Tax Court is deemed to have remained to 

18 the individual’s credit. 

19 ‘‘(B) COMPUTATION OF ANNUITY.—In 

20 computing an annuity under section 8339 or 

21 8415 of title 5, United States Code, the total 

22 service of an individual specified in subpara23 graph (A) who retires on an immediate annuity 

24 or dies leaving a survivor or survivors entitled 

25 to an annuity includes, without regard to the 


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1 limitations imposed by subsection (f) of section 

2 8339 of such title 5, the days of unused sick 

3 leave standing to the individual’s credit at the 

4 time such individual became a magistrate judge 

5 of the Tax Court, except that such days will not 

6 be counted in determining average pay or annu7 ity eligibility. 

8 ‘‘(C) LUMP SUM PAYMENT.—Any accumu9 lated and current accrued annual leave or vaca10 tion balances credited to a magistrate judge of 

11 the Tax Court as of the date of the enactment 

12 of this subsection shall be paid in a lump sum 

13 at the time of separation from service pursuant 

14 to the provisions and restrictions set forth in 

15 section 5551 of such title 5 and related provi16 sions referred to in such section.’’. 

17 (e) CONTEMPT AUTHORITY.—Section 7443A of the 

18 Internal Revenue Code of 1986, as amended by this sec19 tion, is amended by adding at the end the following new 

20 subsection: 

21 ‘‘(g) INCIDENTAL POWERS.—A magistrate judge of 

22 the Tax Court appointed under this section shall have the 

23 power to punish for contempt of the authority of the Tax 

24 Court as provided in section 7456(c), except the sentence 

25 imposed by such a magistrate judge of the Tax Court for 


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1 any contempt shall not exceed the penalties for a Class 

2 C misdemeanor as set forth in sections 3571(b)(6) and 

3 3581(b)(8) of title 18, United States Code. This sub4 section shall not be construed to limit the authority of a 

5 magistrate judge of the Tax Court to order sanctions 

6 under any other statute or any rule of the Tax Court pre7 scribed pursuant to section 7453.’’. 

8 (f) CONFORMING AMENDMENTS.— 

9 (1) The heading of subsection (b) of section 

10 7443A of the Internal Revenue Code of 1986 is 

11 amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 

12 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

13 COURT’’. 

14 (2) Subsection (b) of section 7443A of such 

15 Code is amended by striking ‘‘special trial judges of 

16 the court’’ and inserting ‘‘magistrate judges of the 

17 Tax Court’’. 

18 (3) Subsection (c) of section 7443A of such 

19 Code is amended by striking ‘‘special trial judge’’ 

20 and inserting ‘‘magistrate judge of the Tax Court’’. 

21 (4) Subsection (e) of section 7443A of such 

22 Code is amended by striking ‘‘special trial judges’’ 

23 and inserting ‘‘magistrate judges of the Tax Court’’. 


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1 (5) The item relating to section 7443A in the 

2 table of sections for part I of subchapter C of chap3 ter 76 of such Code is amended to read as follows: 

‘‘Sec. 7443A. Magistrate judges of the Tax Court.’’. 

4 (6) The heading of section 7448 of such Code 

5 is amended by striking ‘‘SPECIAL TRIAL JUDGES’’ 

6 and inserting ‘‘MAGISTRATE JUDGES OF THE

7 TAX COURT’’. 

8 (7) Section 7448 of such Code is amended— 

9 (A) by striking ‘‘special trial judge’s’’ each 

10 place it appears in subsections (a)(6), (c)(1), 

11 (d), and (m)(1) and inserting ‘‘magistrate judge 

12 of the Tax Court’s’’; and 

13 (B) by striking ‘‘special trial judge’’ each 

14 place it appears other than in subsection (n) 

15 and inserting ‘‘magistrate judge of the Tax 

16 Court’’. 

17 (8) Subsection (n) of section 7448 of such Code 

18 is amended to read as follows: 

19 ‘‘(n) INCLUDIBLE SERVICE.—Subject to the provi20 sions of subsection (d), the years of service of a judge or 

21 magistrate judge of the Tax Court which are allowable as 

22 the basis for calculating the amount of the annuity of such 

23 judge or magistrate judge’s surviving spouse shall include 

24 the judge or magistrate judge’s years of service— 


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1 ‘‘(1) as a judge or magistrate judge of the Tax 

2 Court, a special trial judge of the Tax Court, or a 

3 judge of the Tax Court of the United States, 

4 ‘‘(2) pursuant to any appointment under sec5 tion 7443A, 

6 ‘‘(3) as a Senator, Representative, Delegate, or 

7 Resident Commissioner in Congress, 

8 ‘‘(4) as a member of the Armed Forces of the 

9 United States (not including any service for which 

10 credit is allowed for purposes of retirement or re11 tired pay under any other provision of law), and 

12 ‘‘(5) in any other civilian service within the pur13 view of section 8332 of title 5, United States Code. 

14 For purposes of paragraph (4), not more than 5 years of 

15 service shall be taken into account.’’. 

16 (9) The item relating to section 7448 in the 

17 table of sections for part I of subchapter C of chap18 ter 76 of such Code is amended to read as follows: 

‘‘Sec. 7448. Annuities to surviving spouses and dependent children of judges 

and magistrate judges of the Tax Court.’’. 

19 (10) Subsection (a) of section 7456 of such 

20 Code is amended— 

21 (A) by striking ‘‘special trial judge’’ each 

22 place it appears and inserting ‘‘magistrate 

23 judge’’; and 


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1 (B) by striking ‘‘(or by the clerk’’ and in2 serting ‘‘of the Tax Court (or by the clerk’’. 

3 (11) Subsection (a) of section 7466 of such 

4 Code is amended by striking ‘‘special trial judge’’ 

5 and inserting ‘‘magistrate judge’’. 

6 (12) Section 7470A of such Code is amended 

7 by striking ‘‘special trial judges’’ both places it ap8 pears in subsections (a) and (b) and inserting ‘‘mag9 istrate judges’’. 

10 (13) Subparagraph (A) of section 7471(a)(2) of 

11 such Code is amended by striking ‘‘special trial 

12 judges’’ and inserting ‘‘magistrate judges’’. 

13 (14) Subsection (c) of section 7471 of such 

14 Code is amended— 

15 (A) by striking ‘‘SPECIAL TRIAL JUDGES’’ 

16 in the heading and inserting ‘‘MAGISTRATE

17 JUDGES OF THE TAX COURT’’; and 

18 (B) by striking ‘‘special trial judges’’ and 

19 inserting ‘‘magistrate judges’’. 

20 (g) EFFECTIVE DATE.— 

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

22 this section shall apply to individuals serving as spe23 cial trial judges of the United States Tax Court on 

24 or after the day before the date of enactment of this 

25 Act. 


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1 (2) APPOINTMENT SAVINGS PROVISION.—Any 

2 individual serving as a special trial judge of the 

3 United States Tax Court as of the day before the 

4 date of the enactment of this Act shall be considered 

5 to have been appointed as a magistrate judge of the 

6 Tax Court under section 7443A of the Internal Rev7 enue Code of 1986 on such date of enactment, and 

8 service as a special trial judge of the Tax Court be9 fore such date of enactment shall be considered to 

10 be service as a magistrate judge of the Tax Court 

11 for purposes of any provision of law relating to 

12 length of service. 

13 SEC. 306. LIFE INSURANCE FOR MAGISTRATE JUDGES OF 

14 THE TAX COURT AGE 65 OR OLDER. 

15 Section 7472 of the Internal Revenue Code of 1986 

16 is amended by striking ‘‘its judges’’ in the second sentence 

17 and inserting ‘‘the judges and magistrate judges of the 

18 Tax Court’’. 

19 SEC. 307. RETIREMENT AND ANNUITY PROGRAM. 

20 (a) RETIREMENT AND ANNUITY PROGRAM.—Part I 

21 of subchapter C of chapter 76 of the Internal Revenue 

22 Code of 1986 is amended by inserting after section 7443A 

23 the following new section: 


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1 ‘‘SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF 

2 THE TAX COURT. 

3 ‘‘(a) RETIREMENT.— 

4 ‘‘(1) IN GENERAL.—Each magistrate judge of 

5 the Tax Court who makes an election under this sec6 tion shall receive an annuity at the same rate and 

7 in the same manner as magistrate judges of the dis8 trict courts of the United States pursuant to section 

9 377 of title 28, United States Code. 

10 ‘‘(2) RULES OF APPLICATION.—For purposes of 

11 subsection (a), section 377 of title 28, United States 

12 Code, shall be applied with the following modifica13 tions: 

14 ‘‘(A) By substituting— 

15 ‘‘(i) ‘magistrate judge of the Tax 

16 Court’ for ‘judicial official’, ‘judicial offi17 cer’, and ‘magistrate judge’ each place 

18 such terms appear, 

19 ‘‘(ii) ‘magistrate judge of the Tax 

20 Court’s’ for ‘magistrate judge’s’ each place 

21 it appears, 

22 ‘‘(iii) ‘chief judge of the Tax Court’ 

23 for ‘Administrative Office of the United 

24 States Courts’, ‘Director of the Adminis25 trative Office of the United States Courts’, 


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1 ‘Director’, and ‘chief judge of the district 

2 court’ each place such terms appear, 

3 ‘‘(iv) ‘Tax Court Judicial Officers’ Re4 tirement Fund’ for ‘Judicial Officers’ Re5 tirement Fund’ each place it appears, 

6 ‘‘(v) ‘under section 7443A of the In7 ternal Revenue Code of 1986’ for ‘under 

8 section 631 of this title’ in subsection 

9 (h)(2), 

10 ‘‘(vi) ‘under section 7443C of the In11 ternal Revenue Code of 1986’ for ‘under 

12 section 155(b), 375, or 636(h) of this title’ 

13 each place it appears in paragraphs (2) 

14 and (3) of subsection (m), and 

15 ‘‘(vii) ‘from the date of appointment, 

16 for those individuals appointed pursuant to 

17 section 7443A of the Internal Revenue 

18 Code of 1986 prior to, and in active service 

19 on, the date of enactment of the Retire20 ment Enhancement and Savings Act of 

21 2019’ for ‘on or after October 1, 1979’ in 

22 subsection (h). 

23 ‘‘(B) By disregarding subsection (m)(2) 

24 and subsection (o). 


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1 ‘‘(b) 1-YEAR FORFEITURE FOR FAILURE TO PER2 FORM JUDICIAL DUTIES.—Subject to subparagraph (B) 

3 of section 377(m)(1) of title 28, United States Code, any 

4 magistrate judge of the Tax Court who retires under this 

5 section and who fails to perform judicial duties required 

6 of such individual by section 7443C shall forfeit all rights 

7 to an annuity under this section for a 1-year period which 

8 begins on the 1st day on which such individual fails to 

9 perform such duties. 

10 ‘‘(c) TAX COURT JUDICIAL OFFICERS’ RETIREMENT

11 FUND.— 

12 ‘‘(1) ESTABLISHMENT.—There is established in 

13 the Treasury of the United States a fund which 

14 shall be known as the ‘Tax Court Judicial Officers’ 

15 Retirement Fund’. The Fund is appropriated for the 

16 payment of annuities, refunds, and other payments 

17 under this section. 

18 ‘‘(2) INVESTMENT OF FUND.—The Secretary 

19 shall invest, in interest-bearing securities of the 

20 United States, such currently available portions of 

21 the Tax Court Judicial Officers’ Retirement Fund as 

22 are not immediately required for payments from the 

23 Fund. The income derived from these investments 

24 constitutes a part of the Fund. 

25 ‘‘(3) UNFUNDED LIABILITY.— 


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1 ‘‘(A) IN GENERAL.—Not later than the 

2 close of each fiscal year, there shall be depos3 ited in the Tax Court Judicial Officers’ Retire4 ment Fund amounts required to reduce to zero 

5 the unfunded liability, if any, of such Fund. 

6 ‘‘(B) UNFUNDED LIABILITY.—For pur7 poses of subparagraph (A), the term ‘unfunded 

8 liability’ means the amount estimated by the 

9 Secretary to be equal to the excess (as of the 

10 close of the fiscal year involved) of— 

11 ‘‘(i) the present value of all benefits 

12 payable from the Tax Court Judicial Offi13 cers’ Retirement Fund, over 

14 ‘‘(ii) the sum of— 

15 ‘‘(I) the present value of future 

16 deductions to be withheld under this 

17 section from the basic pay of mag18 istrate judges of the Tax Court, plus 

19 ‘‘(II) the balance in such Fund 

20 as of the close of such fiscal year. 

21 ‘‘(d) PARTICIPATION IN THRIFT SAVINGS PLAN.— 

22 ‘‘(1) ELECTION TO CONTRIBUTE.—A mag23 istrate judge of the Tax Court may elect to con24 tribute out of such individual’s basic pay to the 


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1 Thrift Savings Fund established by section 8437 of 

2 title 5, United States Code. 

3 ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.— 

4 Except as otherwise provided in this subsection, the 

5 provisions of subchapters III and VII of chapter 84 

6 of such title 5 shall apply with respect to a mag7 istrate judge of the Tax Court who makes an elec8 tion under paragraph (1). 

9 ‘‘(3) SPECIAL RULES.— 

10 ‘‘(A) AMOUNT CONTRIBUTED.—The 

11 amount contributed by a magistrate judge of 

12 the Tax Court to the Thrift Savings Plan in 

13 any pay period shall not exceed the maximum 

14 percentage of such magistrate judge’s basic pay 

15 for such period as allowable under section 

16 8440f of such title 5. 

17 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

18 MAGISTRATE JUDGE OF THE TAX COURT.—No 

19 contributions under section 8432(c) of such 

20 title 5 shall be made for the benefit of a mag21 istrate judge of the Tax Court who has filed an 

22 election to receive an annuity under this sec23 tion. 

24 ‘‘(C) APPLICABILITY OF RULES RELATING

25 TO ANNUITY OF A CHILD.—Section 8433(b) of 


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1 such title 5 applies with respect to a magistrate 

2 judge of the Tax Court who makes an election 

3 under paragraph (1) and who— 

4 ‘‘(i) retires entitled to an immediate 

5 annuity under this section (including a dis6 ability annuity under this section), 

7 ‘‘(ii) retires before attaining age 65 

8 but is entitled, upon attaining age 65, to 

9 an annuity under this section, or 

10 ‘‘(iii) retires before becoming entitled 

11 to an immediate annuity, or an annuity 

12 upon attaining age 65, under this section. 

13 ‘‘(D) RETIREMENT AS SEPARATION FROM

14 SERVICE.—With respect to a magistrate judge 

15 of the Tax Court to whom this subsection ap16 plies, retirement under this section is a separa17 tion from service for purposes of subchapters 

18 III and VII of chapter 84 of such title 5. 

19 ‘‘(4) DEFINITIONS.—For purposes of this sub20 section, the terms ‘retirement’ and ‘retire’ include 

21 removal from office under section 7443A(a)(2) on 

22 the sole ground of mental or physical disability. 

23 ‘‘(5) OFFSET.—In the case of a magistrate 

24 judge of the Tax Court who receives a distribution 

25 from the Thrift Savings Plan and who later receives 


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1 an annuity under this section, the annuity shall be 

2 offset by an amount equal to the amount which rep3 resents the Government’s contribution to the individ4 ual’s Thrift Savings Account during years of service 

5 as a full-time judicial officer under the Federal Em6 ployees Retirement System, without regard to earn7 ings attributable to such amount. Where such an 

8 offset would exceed 50 percent of the annuity to be 

9 received in the first year, the offset may be divided 

10 equally over the first 2 years in which the individual 

11 receives the annuity. 

12 ‘‘(6) EXCEPTION.—Notwithstanding clauses (i) 

13 and (ii) of paragraph (3)(C), if any magistrate judge 

14 of the Tax Court retires under circumstances mak15 ing such magistrate judge of the Tax Court eligible 

16 to make an election under subsection (b) of section 

17 8433 of such title 5, and the nonforfeitable account 

18 balance of such magistrate judge of the Tax Court 

19 is less than an amount which the Executive Director 

20 of the Office of Personnel Management prescribes by 

21 regulation, the Executive Director shall pay the non22 forfeitable account balance to the participant in a 

23 single payment. 


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1 ‘‘(e) COORDINATION WITH TITLE 5.—A magistrate 

2 judge of the Tax Court who elects to receive an annuity 

3 under this section— 

4 ‘‘(1) shall not be subject to deductions and con5 tributions otherwise required by section 8334(a) of 

6 title 5 United States Code, 

7 ‘‘(2) shall be excluded from the application of 

8 chapter 84 (other than subchapters III and VII) of 

9 such title 5, and 

10 ‘‘(3) is entitled to a lump-sum credit under sec11 tion 8342(a) or 8424 of such title 5, as the case 

12 may be.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 3121(b)(5)(E) of the Internal Rev15 enue Code of 1986 is amended by inserting ‘‘or 

16 magistrate judge’’ before ‘‘of the United States Tax 

17 Court’’. 

18 (2) Section 210(a)(5)(E) of the Social Security 

19 Act (42 U.S.C. 410(a)(5)(E)) is amended by insert20 ing ‘‘or a magistrate judge of the Tax Court who 

21 files an election under section 7443B(a) of the Inter22 nal Revenue Code of 1986’’ after ‘‘of the United 

23 States Tax Court’’. 

24 (3) Section 7448(b)(2) of the Internal Revenue 

25 Code of 1986 is amended to read as follows: 


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1 ‘‘(2) MAGISTRATE JUDGES OF THE TAX

2 COURT.—Any magistrate judge of the Tax Court 

3 may by written election filed with the chief judge 

4 bring himself or herself within the purview of this 

5 section. Such election shall be filed while such indi6 vidual is a magistrate judge of the Tax Court.’’. 

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

8 for part I of subchapter C of chapter 76 of the Internal 

9 Revenue Code of 1986 is amended by inserting after the 

10 item relating to section 7443A the following new item: 

‘‘Sec. 7443B. Retirement for magistrate judges of the Tax Court.’’. 

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

12 this section shall take effect on the date of the enactment 

13 of this Act. 

14 SEC. 308. PROVISIONS FOR RECALL. 

15 (a) IN GENERAL.—Part I of subchapter C of chapter 

16 76 of the Internal Revenue Code of 1986, as amended by 

17 section 307, is amended by inserting after section 7443B 

18 the following new section: 

19 ‘‘SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX 

20 COURT. 

21 ‘‘(a) RECALLING OF RETIRED MAGISTRATE JUDGES

22 OF THE TAX COURT.—Any individual who has retired 

23 pursuant to section 7443B or the applicable provisions of 

24 title 5 or 28, United States Code, upon reaching the age 

25 and service requirements established under such titles 5 


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1 and 28, may be called upon by the chief judge to perform 

2 such judicial duties with the Tax Court as may be re3 quested of such individual for a period or periods specified 

4 by the chief judge, except that in the case of any such 

5 individual— 

6 ‘‘(1) the aggregate of such periods in any 1 cal7 endar year shall not (without the consent of such in8 dividual) exceed 90 calendar days, and 

9 ‘‘(2) such individual shall be relieved of per10 forming such duties during any period in which ill11 ness or disability precludes the performance of such 

12 duties. 

13 Any act, or failure to act, by an individual performing ju14 dicial duties pursuant to this subsection shall have the 

15 same force and effect as if it were the act (or failure to 

16 act) of a magistrate judge of the Tax Court. 

17 ‘‘(b) COMPENSATION.—For the year in which a pe18 riod of recall occurs, the magistrate judge of the Tax 

19 Court shall receive, in addition to the annuity provided 

20 under the provisions of section 7443B, an amount equal 

21 to the difference between that annuity and the current sal22 ary of the office to which the magistrate judge of the Tax 

23 Court is recalled (and allowances for travel and other ex24 penses of the magistrate judge of the Tax Court). The 

25 annuity for years after the year in which a period of recall 


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1 occurs of the magistrate judge of the Tax Court who com2 pletes such a period of service, who is not recalled in a 

3 subsequent year, and who retired under section 7443B, 

4 shall be equal to the salary in effect at the end of the 

5 year in which the period of recall occurred for the office 

6 from which such magistrate judge of the Tax Court re7 tired. 

8 ‘‘(c) RULEMAKING AUTHORITY.—The provisions of 

9 this section shall be implemented under such rules and 

10 regulations as may be promulgated by the Tax Court.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for part I of subchapter C of chapter 76 of the Internal 

13 Revenue Code of 1986, as amended by section 307, is 

14 amended by inserting after the item relating to section 

15 7443B the following new item: 

‘‘Sec. 7443C. Recall of magistrate judges of the Tax Court.’’. 

16 TITLE IV—OTHER BENEFITS 

17 SEC. 401. BENEFITS PROVIDED TO VOLUNTEER FIRE18 FIGHTERS AND EMERGENCY MEDICAL RE19 SPONDERS. 

20 (a) INCREASE IN DOLLAR LIMITATION ON QUALI21 FIED PAYMENTS.—Subparagraph (B) of section 

22 139B(c)(2) of the Internal Revenue Code of 1986 is 

23 amended by striking ‘‘$30’’ and inserting ‘‘$50’’. 

24 (b) EXTENSION.—Subsection (d) of section 139B of 

25 the Internal Revenue Code of 1986 is amended by striking 


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1 ‘‘beginning after December 31, 2010.’’ and inserting ‘‘be2 ginning— 

3 ‘‘(1) after December 31, 2010, and before Jan4 uary 1, 2019, or 

5 ‘‘(2) after December 31, 2019.’’. 

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

7 this section shall apply to taxable years beginning after 

8 December 31, 2018. 

9 TITLE V—REVENUE PROVISIONS 

10 SEC. 501. MODIFICATIONS OF REQUIRED DISTRIBUTION 

11 RULES FOR PENSION PLANS. 

12 (a) MODIFICATION OF RULES WHERE EMPLOYEE

13 DIES BEFORE ENTIRE DISTRIBUTION.— 

14 (1) IN GENERAL.—Section 401(a)(9) of the In15 ternal Revenue Code of 1986 is amended by adding 

16 at the end the following new subparagraph: 

17 ‘‘(H) SPECIAL RULES FOR CERTAIN DE18 FINED CONTRIBUTION PLANS.— 

19 ‘‘(i) IN GENERAL.—In the case of dis20 tributions from a defined contribution 

21 plan, a trust forming part of such plan 

22 shall not constitute a qualified trust under 

23 this section unless the plan provides that, 

24 if— 


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1 ‘‘(I) an employee dies before the 

2 distribution of the employee’s interest 

3 (whether or not such distribution has 

4 begun in accordance with subpara5 graph (A)), and 

6 ‘‘(II) the aggregate account bal7 ances to the credit of the employee 

8 under all defined contribution plans, 

9 determined as of the date of the em10 ployee’s death, exceeds $450,000, 

11 so much of the entire interest of the em12 ployee as exceeds the dollar amount in sub13 clause (II) will be distributed within 5 

14 years after the death of such employee. 

15 ‘‘(ii) ALLOCATION OF LIMITATION.—If 

16 an employee has an account under more 

17 than 1 defined contribution plan, the 

18 $450,000 amount under clause (i)(II) shall 

19 be allocated among all such plans, as pro20 vided in regulations prescribed by the Sec21 retary, for purposes of applying clause (i). 

22 ‘‘(iii) TREATMENT OF REMAINING

23 AMOUNT.—The portion of the employee’s 

24 interest distributed under clause (i) shall 

25 not be taken into account for purposes of 


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1 determining the rapidity or the method of 

2 distribution of any portion of the interest 

3 of the employee to which clause (i) does 

4 not apply. 

5 ‘‘(iv) MULTIPLE BENEFICIARIES.—In 

6 the case of an employee who has more 

7 than 1 beneficiary, the amount of the por8 tion required to be distributed under clause 

9 (i) which shall be treated as payable to (or 

10 for the benefit of) such beneficiary is the 

11 amount which bears the same ratio to the 

12 total amount of such portion as— 

13 ‘‘(I) the portion of the employee’s 

14 entire interest (determined as of the 

15 date of the employee’s death) which is 

16 payable to (or for the benefit of) such 

17 beneficiary, bears to 

18 ‘‘(II) the amount of the employ19 ee’s entire interest (so determined). 

20 ‘‘(v) EXCEPTION FOR ELIGIBLE DES21 IGNATED BENEFICIARIES.—If— 

22 ‘‘(I) any portion of the employ23 ee’s interest is payable to (or for the 

24 benefit of) an eligible designated bene25 ficiary, 


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1 ‘‘(II) such portion will be distrib2 uted (in accordance with regulations) 

3 over the life of such eligible des4 ignated beneficiary (or over a period 

5 not extending beyond the life expect6 ancy of such beneficiary), and 

7 ‘‘(III) such distributions begin 

8 not later than 1 year after the date of 

9 the employee’s death or such later 

10 date as the Secretary may by regula11 tions prescribe, 

12 for purposes of clause (i), the portion re13 ferred to in subclause (I) shall be treated 

14 as distributed on the date on which such 

15 distributions begin. 

16 ‘‘(vi) SPECIAL RULE FOR SURVIVING

17 SPOUSE OF EMPLOYEE.—If the eligible 

18 designated beneficiary is the surviving 

19 spouse of the employee— 

20 ‘‘(I) the date on which the dis21 tributions are required to begin under 

22 clause (v)(III) shall not be earlier 

23 than the date on which the employee 

would have attained age 701 24 ⁄2, and 


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1 ‘‘(II) if the surviving spouse dies 

2 before the distributions to such spouse 

3 begin, this subparagraph shall be ap4 plied as if the surviving spouse were 

5 the employee. 

6 ‘‘(vii) RULES UPON DEATH OF ELIGI7 BLE DESIGNATED BENEFICIARY.—If an el8 igible designated beneficiary dies before the 

9 portion of the employee’s interest to which 

10 clause (i) applies which is payable to (or 

11 for the benefit of) such eligible designated 

12 beneficiary is entirely distributed, the ex13 ception under clause (v) shall not apply to 

14 any beneficiary of such eligible designated 

15 beneficiary and the remainder of such por16 tion shall be distributed within 5 years 

17 after the death of such beneficiary. 

18 ‘‘(viii) COORDINATION WITH INDI19 VIDUAL RETIREMENT PLANS.—For pur20 poses of applying the provisions of this 

21 subparagraph and subsections (a)(6) and 

22 (b)(3) of section 408, individual retirement 

23 plans shall be treated as defined contribu24 tion plans in determining the aggregate ac25 count balances to the credit of the emVerDate Sep 11 2014 01:39 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H1007.IH H1007

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1 ployee under all defined contribution plans 

2 and the amount required to be distributed 

3 to each beneficiary under such provi4 sions.’’. 

5 (2) DEFINITION OF ELIGIBLE DESIGNATED

6 BENEFICIARY.—Section 401(a)(9)(E) of such Code 

7 is amended to read as follows: 

8 ‘‘(E) DEFINITIONS AND RULES RELATING

9 TO DESIGNATED BENEFICIARY.—For purposes 

10 of this paragraph— 

11 ‘‘(i) DESIGNATED BENEFICIARY.—The 

12 term ‘designated beneficiary’ means any 

13 individual designated as a beneficiary by 

14 the employee. 

15 ‘‘(ii) ELIGIBLE DESIGNATED BENE16 FICIARY.—The term ‘eligible designated 

17 beneficiary’ means, with respect to any em18 ployee, any designated beneficiary who is— 

19 ‘‘(I) the surviving spouse of the 

20 employee, 

21 ‘‘(II) subject to clause (iii), a 

22 child of the employee who has not 

23 reached majority (within the meaning 

24 of subparagraph (F)), 


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1 ‘‘(III) disabled (within the mean2 ing of section 72(m)(7)), 

3 ‘‘(IV) a chronically ill individual 

4 (within the meaning of section 

5 7702B(c)(2), except that the require6 ments of subparagraph (A)(i) thereof 

7 shall only be treated as met if there is 

8 a certification that, as of such date, 

9 the period of inability described in 

10 such subparagraph with respect to the 

11 individual is an indefinite one which is 

12 reasonably expected to be lengthy in 

13 nature), or 

14 ‘‘(V) an individual not described 

15 in any of the preceding subclauses 

16 who is not more than 10 years young17 er than the employee. 

18 ‘‘(iii) SPECIAL RULE FOR CHIL19 DREN.—Subject to subparagraph (F), an 

20 individual described in clause (ii)(II) shall 

21 cease to be an eligible designated bene22 ficiary as of the date the individual reaches 

23 majority and any remainder of the portion 

24 of the interest described in subparagraph 


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1 (H)(v) shall be distributed within 5 years 

2 after such date. 

3 ‘‘(iv) TIME FOR DETERMINATION OF

4 ELIGIBLE DESIGNATED BENEFICIARY.— 

5 The determination of whether a designated 

6 beneficiary is an eligible designated bene7 ficiary shall be made as of the date of 

8 death of the employee.’’. 

9 (3) CONFORMING AMENDMENTS.— 

10 (A) Clause (ii) of section 401(a)(9)(B) of 

11 the Internal Revenue Code of 1986 is amended 

12 by striking ‘‘A trust’’ and inserting ‘‘Except as 

13 provided in subparagraph (H), a trust’’. 

14 (B) Section 402(c)(11)(A)(iii) of such 

15 Code is amended by striking ‘‘section 

16 401(a)(9)(B) (other than clause (iv) thereof)’’ 

17 and inserting ‘‘subparagraphs (B) (other than 

18 clause (iv) thereof) and (H) (other than clause 

19 (vi) thereof) of section 401(a)(9)’’. 

20 (4) EFFECTIVE DATES.— 

21 (A) IN GENERAL.—Except as provided in 

22 this paragraph and paragraphs (5) and (6), the 

23 amendments made by this subsection shall 

24 apply to distributions with respect to employees 

25 who die after December 31, 2018. 


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1 (B) COLLECTIVE BARGAINING EXCEP2 TION.—In the case of a plan maintained pursu3 ant to 1 or more collective bargaining agree4 ments between employee representatives and 1 

5 or more employers ratified before the date of 

6 enactment of this Act, the amendments made 

7 by this subsection shall apply to distributions 

8 with respect to employees who die in calendar 

9 years beginning after the earlier of— 

10 (i) the later of— 

11 (I) the date on which the last of 

12 such collective bargaining agreements 

13 terminates (determined without re14 gard to any extension thereof agreed 

15 to on or after the date of the enact16 ment of this Act); or 

17 (II) December 31, 2018; or 

18 (ii) December 31, 2020. 

19 For purposes of clause (i)(I), any plan amend20 ment made pursuant to a collective bargaining 

21 agreement relating to the plan which amends 

22 the plan solely to conform to any requirement 

23 added by this section shall not be treated as a 

24 termination of such collective bargaining agree25 ment. 


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1 (C) GOVERNMENTAL PLANS.—In the case 

2 of a governmental plan (as defined in section 

3 414(d) of the Internal Revenue Code of 1986), 

4 subparagraph (A) shall be applied by sub5 stituting ‘‘December 31, 2020’’ for ‘‘December 

6 31, 2018’’. 

7 (5) EXCEPTION FOR CERTAIN EXISTING ANNU8 ITY CONTRACTS.— 

9 (A) IN GENERAL.—The amendments made 

10 by this subsection shall not apply to a qualified 

11 annuity which is a binding annuity contract in 

12 effect on the date of enactment of this Act and 

13 at all times thereafter. 

14 (B) QUALIFIED ANNUITY.—For purposes 

15 of this paragraph, the term ‘‘qualified annuity’’ 

16 means, with respect to an employee, an annu17 ity— 

18 (i) which is a commercial annuity (as 

19 defined in section 3405(e)(6) of the Inter20 nal Revenue Code of 1986); 

21 (ii) under which the annuity payments 

22 are made over the life of the employee or 

23 over the joint lives of such employee and a 

24 designated beneficiary (or over a period 

25 not extending beyond the life expectancy of 


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1 such employee or the joint life expectancy 

2 of such employee and a designated bene3 ficiary) in accordance with the regulations 

4 described in section 401(a)(9)(A)(ii) of 

5 such Code (as in effect before such amend6 ments) and which meets the other require7 ments of section 401(a)(9) of such Code 

8 (as so in effect) with respect to such pay9 ments; and 

10 (iii) with respect to which— 

11 (I) annuity payments to the em12 ployee have begun before the date of 

13 enactment of this Act, and the em14 ployee has made an irrevocable elec15 tion before such date as to the method 

16 and amount of the annuity payments 

17 to the employee or any designated 

18 beneficiaries; or 

19 (II) if subclause (I) does not 

20 apply, the employee has made an ir21 revocable election before the date of 

22 enactment of this Act as to the meth23 od and amount of the annuity pay24 ments to the employee or any des25 ignated beneficiaries. 


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1 (6) EXCEPTION FOR CERTAIN BENE2 FICIARIES.— 

3 (A) IN GENERAL.—If an employee dies be4 fore the effective date, then, in applying the 

5 amendments made by this subsection to such 

6 employee’s designated beneficiary who dies after 

7 such date— 

8 (i) such amendments shall apply to 

9 any beneficiary of such designated bene10 ficiary; and 

11 (ii) the designated beneficiary shall be 

12 treated as an eligible designated bene13 ficiary for purposes of applying section 

14 401(a)(9)(H)(iv) of the Internal Revenue 

15 Code of 1986 (as in effect after such 

16 amendments). 

17 (B) EFFECTIVE DATE.—For purposes of 

18 this paragraph, the term ‘‘effective date’’ means 

19 the first day of the first calendar year to which 

20 the amendments made by this subsection apply 

21 to a plan with respect to employees dying on or 

22 after such date. 

23 (b) PROVISIONS RELATING TO PLAN AMEND24 MENTS.— 


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1 (1) IN GENERAL.—If this subsection applies to 

2 any plan amendment— 

3 (A) such plan shall be treated as being op4 erated in accordance with the terms of the plan 

5 during the period described in paragraph 

6 (2)(B)(i); and 

7 (B) except as provided by the Secretary of 

8 the Treasury, such plan shall not fail to meet 

9 the requirements of section 411(d)(6) of the In10 ternal Revenue Code of 1986 and section 

11 204(g) of the Employee Retirement Income Se12 curity Act of 1974 by reason of such amend13 ment. 

14 (2) AMENDMENTS TO WHICH SUBSECTION AP15 PLIES.— 

16 (A) IN GENERAL.—This subsection shall 

17 apply to any amendment to any plan or which 

18 is made— 

19 (i) pursuant to any amendment made 

20 by this section or pursuant to any regula21 tion issued by the Secretary of the Treas22 ury under this section or such amend23 ments; and 

24 (ii) on or before the last day of the 

25 first plan year beginning after December 


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1 31, 2020, or such later date as the Sec2 retary of the Treasury may prescribe. 

3 In the case of a governmental or collectively 

4 bargained plan to which subparagraph (B) or 

5 (C) of subsection (a)(4) applies, clause (ii) shall 

6 be applied by substituting the date which is 2 

7 years after the date otherwise applied under 

8 such clause. 

9 (B) CONDITIONS.—This subsection shall 

10 not apply to any amendment unless— 

11 (i) during the period— 

12 (I) beginning on the date the leg13 islative or regulatory amendment de14 scribed in paragraph (1)(A) takes ef15 fect (or in the case of a plan amend16 ment not required by such legislative 

17 or regulatory amendment, the effec18 tive date specified by the plan); and 

19 (II) ending on the date described 

20 in subparagraph (A)(ii) (or, if earlier, 

21 the date the plan amendment is 

22 adopted), 

23 the plan is operated as if such plan amend24 ment were in effect; and 


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1 (ii) such plan amendment applies 

2 retroactively for such period. 

3 SEC. 502. INCREASE IN PENALTY FOR FAILURE TO FILE. 

4 (a) IN GENERAL.—The second sentence of subsection 

5 (a) of section 6651 of the Internal Revenue Code of 1986 

6 is amended by striking ‘‘$205’’ and inserting ‘‘$400’’. 

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

8 this section shall apply to returns the due date for which 

9 (including extensions) is after December 31, 2018. 

10 SEC. 503. INCREASED PENALTIES FOR FAILURE TO FILE 

11 RETIREMENT PLAN RETURNS. 

12 (a) IN GENERAL.—Subsection (e) of section 6652 of 

13 the Internal Revenue Code of 1986 is amended— 

14 (1) by striking ‘‘$25’’ and inserting ‘‘$100’’; 

15 and 

16 (2) by striking ‘‘$15,000’’ and inserting 

17 ‘‘$50,000’’. 

18 (b) ANNUAL REGISTRATION STATEMENT AND NOTI19 FICATION OF CHANGES.—Subsection (d) of section 6652 

20 of the Internal Revenue Code of 1986 is amended— 

21 (1) by striking ‘‘$1’’ both places it appears in 

22 paragraphs (1) and (2) and inserting ‘‘$2’’; 

23 (2) by striking ‘‘$5,000’’ in paragraph (1) and 

24 inserting ‘‘$10,000’’; and 


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1 (3) by striking ‘‘$1,000’’ in paragraph (2) and 

2 inserting ‘‘$5,000’’. 

3 (c) FAILURE TO PROVIDE NOTICE.—Subsection (h) 

4 of section 6652 of the Internal Revenue Code of 1986 is 

5 amended— 

6 (1) by striking ‘‘$10’’ and inserting ‘‘$100’’; 

7 and 

8 (2) by striking ‘‘$5,000’’ and inserting 

9 ‘‘$50,000’’. 

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

11 this section shall apply to returns, statements, and notifi12 cations required to be filed, and notices required to be pro13 vided, after December 31, 2018. 

14 SEC. 504. INCREASE INFORMATION SHARING TO ADMIN15 ISTER EXCISE TAXES. 

16 (a) IN GENERAL.—Section 6103(o) of the Internal 

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

18 the following new paragraph: 

19 ‘‘(3) TAXES IMPOSED BY SECTION 4481.—Re20 turns and return information with respect to taxes 

21 imposed by section 4481 shall be open to inspection 

22 by or disclosure to officers and employees of United 

23 States Customs and Border Protection of the De24 partment of Homeland Security whose official duties 


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1 require such inspection or disclosure for purposes of 

2 administering such section.’’. 

3 (b) CONFORMING AMENDMENTS.—Paragraph (4) of 

4 section 6103(p) of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘or (o)(1)(A)’’ each place it appears 

6 and inserting ‘‘, (o)(1)(A), or (o)(3)’’. 

7 SEC. 505. PENSION VARIABLE RATE PREMIUM PAYMENT 

8 ACCELERATION. 

9 Notwithstanding section 4007(a) of the Employee 

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

11 1307(a)) and section 4007.11 of title 29, Code of Federal 

12 Regulations, any additional premium determined under 

13 subparagraph (E) of section 4006(a)(3) of such Act (29 

14 U.S.C. 1306(a)(3)) the due date for which is (but for this 

15 section) after September 30, 2027, and before June 1, 

16 2028, shall be due not later than September 30, 2027. 

Æ 


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