I 

116TH CONGRESS 

1ST SESSION H. R. 1084 

To amend the Internal Revenue Code of 1986 to encourage retirement and 

family savings, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 7, 2019 

Mr. KELLY of Pennsylvania (for himself, Mr. WENSTRUP, Mr. ARRINGTON, 

Mr. LAHOOD, Mr. SMITH of Missouri, Mr. FERGUSON, Mr. SCHWEIKERT, 

Mr. ESTES, Mr. REED, and Mr. MARCHANT) introduced the following 

bill; which was referred to the Committee on Ways and Means, and in 

addition to the Committees on Education and Labor, and the Budget, 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 and family 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 ‘‘Family Savings Act of 2019’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amendVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 ment or repeal is expressed in terms of an amendment 

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

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

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

6 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 

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

Sec. 102. Rules relating to election of safe harbor 401(k) status. 

Sec. 103. Certain taxable non-tuition fellowship and stipend payments treated 

as compensation for IRA purposes. 

Sec. 104. Repeal of maximum age for traditional IRA contributions. 

Sec. 105. Qualified employer plans prohibited from making loans through credit 

cards and other similar arrangements. 

Sec. 106. Portability of lifetime income investments. 

Sec. 107. Treatment of custodial accounts on termination of section 403(b) 

plans. 

Sec. 108. Clarification of retirement income account rules relating to churchcontrolled organizations. 

Sec. 109. Increase in 10 percent cap for automatic enrollment safe harbor after 

1st plan year. 

Sec. 110. Increase in credit limitation for small employer pension plan startup 

costs. 

Sec. 111. Small employer automatic enrollment credit. 

Sec. 112. Exemption from required minimum distribution rules for individuals 

with certain account balances. 

Sec. 113. Elective deferrals by members of the Ready Reserve of a reserve component of the Armed Forces. 

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

Sec. 203. Fiduciary safe harbor for selection of lifetime income provider. 

Sec. 204. Disclosure regarding lifetime income. 

Sec. 205. Modification of PBGC premiums for CSEC plans. 

TITLE III—OTHER SAVINGS PROVISIONS 

Sec. 301. Expansion of section 529 plans. 

Sec. 302. Penalty-free withdrawals from retirement plans for individuals in case 

of birth of child or adoption. 


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TITLE IV—BUDGETARY EFFECTS 

Sec. 401. Budgetary effects. 

1 TITLE I—EXPANDING AND PRE2 SERVING RETIREMENT SAV3 INGS 

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

6 (a) QUALIFICATION REQUIREMENTS.— 

7 (1) IN GENERAL.—Section 413 is amended by 

8 adding at the 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 maintained by employers which 

16 have a common interest other than having 

17 adopted the plan, or 

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

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

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

21 the requirements under this title applicable to a plan 

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

23 of individual retirement accounts described in sec24 tion 408 (including by reason of subsection (c) 


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1 thereof), whichever is applicable, merely because one 

2 or more employers of employees covered by the plan 

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

5 ‘‘(2) LIMITATIONS.— 

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

7 not apply to any plan unless the terms of the 

8 plan provide that in the case of any employer 

9 in the plan failing to take the actions described 

10 in paragraph (1)— 

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

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

15 employer (or its successor), to an eligible 

16 retirement plan as defined in section 

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

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

24 assets in the plan, and 


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

2 with respect to which the failure occurred 

3 or any other employer in such plan) shall, 

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

8 such employees). 

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

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

12 substantially all of the administrative duties 

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

15 may provide that the determination as to 

16 whether the plan meets the requirements under 

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

20 408 (including by reason of subsection (c) 

21 thereof), whichever is applicable, shall be made 

22 in the same manner as would be made without 

23 regard to paragraph (1). 

24 ‘‘(3) POOLED PLAN PROVIDER.— 


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

2 subsection, the term ‘pooled plan provider’ 

3 means, with respect to any plan, a person 

4 who— 

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

6 plan as a named fiduciary (within the 

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

9 1974), as the plan administrator, and as 

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

12 proper testing with respect to the plan and 

13 the employees of each employer in the 

14 plan) which are reasonably necessary to 

15 ensure that— 

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

18 Retirement Income Security Act of 

19 1974 or this title to a plan described 

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

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

24 thereof), whichever is applicable, and 


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1 ‘‘(II) each employer in the plan 

2 takes such actions as the Secretary or 

3 such person determines are necessary 

4 for the plan to meet the requirements 

5 described in subclause (I), including 

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

8 Secretary may require or which such 

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

11 allow the plan to meet such require12 ments, 

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

15 other information to the Secretary as the 

16 Secretary may require, before beginning 

17 operations as a pooled plan provider, 

18 ‘‘(iii) acknowledges in writing that 

19 such person is a named fiduciary (within 

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

21 Employee Retirement Income Security Act 

22 of 1974), and the plan administrator, with 

23 respect to the plan, and 

24 ‘‘(iv) is responsible for ensuring that 

25 all persons who handle assets of, or who 


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1 are fiduciaries of, the plan are bonded in 

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

4 1974. 

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

8 plan providers as may be necessary to enforce 

9 and carry out the purposes of this subsection. 

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

11 of this paragraph, in determining whether a 

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

14 to any plan, all persons who perform services 

15 for the plan and who are treated as a single 

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

17 of section 414 shall be treated as one person. 

18 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

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

22 in a plan which has a pooled plan provider shall 

23 be treated as the plan sponsor with respect to 

24 the portion of the plan attributable to employVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 ees of such employer (or beneficiaries of such 

2 employees). 

3 ‘‘(4) GUIDANCE.—The Secretary shall issue 

4 such guidance as the Secretary determines appro5 priate to carry out this subsection, including guid6 ance— 

7 ‘‘(A) to identify the administrative duties 

8 and other actions required to be performed by 

9 a pooled plan provider under this subsection, 

10 ‘‘(B) which describes the procedures to be 

11 taken to terminate a plan which fails to meet 

12 the requirements to be a plan described in para13 graph (1), including the proper treatment of, 

14 and actions needed to be taken by, any em15 ployer in the plan and the assets and liabilities 

16 of the plan attributable to employees of such 

17 employer (or beneficiaries of such employees), 

18 and 

19 ‘‘(C) identifying appropriate cases to which 

20 the rules of paragraph (2)(A) will apply to em21 ployers in the plan failing to take the actions 

22 described in paragraph (1). 

23 The Secretary shall take into account under sub24 paragraph (C) whether the failure of an employer or 

25 pooled plan provider to provide any disclosures or 


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1 other information, or to take any other action, nec2 essary to administer a plan or to allow a plan to 

3 meet requirements applicable to the plan under sec4 tion 401(a) or 408, whichever is applicable, has con5 tinued over a period of time that demonstrates a 

6 lack of commitment to compliance. 

7 ‘‘(5) MODEL PLAN.—The Secretary shall pub8 lish model plan language which meets the require9 ments of this subsection and of paragraphs (43) and 

10 (44) of section 3 of the Employee Retirement In11 come Security Act of 1974 and which may be adopt12 ed in order for a plan to be treated as a plan de13 scribed in paragraph (1)(B).’’. 

14 (2) CONFORMING AMENDMENT.—Section 

15 413(c)(2) is amended by striking ‘‘section 401(a)’’ 

16 and inserting ‘‘sections 401(a) and 408(c)’’. 

17 (3) TECHNICAL AMENDMENT.—Section 408(c) 

18 is amended by inserting after paragraph (2) the fol19 lowing new paragraph: 

20 ‘‘(3) There is a separate accounting for any in21 terest of an employee or member (or spouse of an 

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

23 (b) NO COMMON INTEREST REQUIRED FOR POOLED

24 EMPLOYER PLANS.—Section 3(2) of the Employee RetireVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 

2 is amended by adding at the end the following: 

3 ‘‘(C) A pooled employer plan shall be treat4 ed as— 

5 ‘‘(i) a single employee pension benefit 

6 plan or single pension plan; and 

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

8 applies.’’. 

9 (c) POOLED EMPLOYER PLAN AND PROVIDER DE10 FINED.— 

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

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

13 1002) is amended by adding at the end the fol14 lowing: 

15 ‘‘(43) POOLED EMPLOYER PLAN.— 

16 ‘‘(A) IN GENERAL.—The term ‘pooled em17 ployer plan’ means a plan— 

18 ‘‘(i) which is an individual account 

19 plan established or maintained for the pur20 pose of providing benefits to the employees 

21 of 2 or more employers; 

22 ‘‘(ii) which is a plan described in sec23 tion 401(a) of the Internal Revenue Code 

24 of 1986 which includes a trust exempt 

25 from tax under section 501(a) of such 


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1 Code or a plan that consists of individual 

2 retirement accounts described in section 

3 408 of such Code (including by reason of 

4 subsection (c) thereof); and 

5 ‘‘(iii) the terms of which meet the re6 quirements of subparagraph (B). 

7 Such term shall not include a plan maintained 

8 by employers which have a common interest 

9 other than having adopted the plan. 

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

11 The requirements of this subparagraph are met 

12 with respect to any plan if the terms of the 

13 plan— 

14 ‘‘(i) designate a pooled plan provider 

15 and provide that the pooled plan provider 

16 is a named fiduciary of the plan; 

17 ‘‘(ii) designate one or more trustees 

18 meeting the requirements of section 

19 408(a)(2) of the Internal Revenue Code of 

20 1986 (other than an employer in the plan) 

21 to be responsible for collecting contribu22 tions to, and holding the assets of, the 

23 plan and require such trustees to imple24 ment written contribution collection proceVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 dures that are reasonable, diligent, and 

2 systematic; 

3 ‘‘(iii) provide that each employer in 

4 the plan retains fiduciary responsibility 

5 for— 

6 ‘‘(I) the selection and monitoring 

7 in accordance with section 404(a) of 

8 the person designated as the pooled 

9 plan provider and any other person 

10 who, in addition to the pooled plan 

11 provider, is designated as a named fi12 duciary of the plan; and 

13 ‘‘(II) to the extent not otherwise 

14 delegated to another fiduciary by the 

15 pooled plan provider and subject to 

16 the provisions of section 404(c), the 

17 investment and management of the 

18 portion of the plan’s assets attrib19 utable to the employees of the em20 ployer (or beneficiaries of such em21 ployees); 

22 ‘‘(iv) provide that employers in the 

23 plan, and participants and beneficiaries, 

24 are not subject to unreasonable restric25 tions, fees, or penalties with regard to 


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1 ceasing participation, receipt of distribu2 tions, or otherwise transferring assets of 

3 the plan in accordance with section 208 or 

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

5 ‘‘(v) require— 

6 ‘‘(I) the pooled plan provider to 

7 provide to employers in the plan any 

8 disclosures or other information which 

9 the Secretary may require, including 

10 any disclosures or other information 

11 to facilitate the selection or any moni12 toring of the pooled plan provider by 

13 employers in the plan; and 

14 ‘‘(II) each employer in the plan 

15 to take such actions as the Secretary 

16 or the pooled plan provider determines 

17 are necessary to administer the plan 

18 or for the plan to meet any require19 ment applicable under this Act or the 

20 Internal Revenue Code of 1986 to a 

21 plan described in section 401(a) of 

22 such Code or to a plan that consists 

23 of individual retirement accounts de24 scribed in section 408 of such Code 

25 (including by reason of subsection (c) 


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1 thereof), whichever is applicable, in2 cluding providing any disclosures or 

3 other information which the Secretary 

4 may require or which the pooled plan 

5 provider otherwise determines are nec6 essary to administer the plan or to 

7 allow the plan to meet such require8 ments; and 

9 ‘‘(vi) provide that any disclosure or 

10 other information required to be provided 

11 under clause (v) may be provided in elec12 tronic form and will be designed to ensure 

13 only reasonable costs are imposed on 

14 pooled plan providers and employers in the 

15 plan. 

16 ‘‘(C) EXCEPTIONS.—The term ‘pooled em17 ployer plan’ does not include— 

18 ‘‘(i) a multiemployer plan; or 

19 ‘‘(ii) a plan established before the 

20 date of the enactment of the Family Sav21 ings Act of 2019 unless the plan adminis22 trator elects that the plan will be treated 

23 as a pooled employer plan and the plan 

24 meets the requirements of this title appliVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 cable to a pooled employer plan established 

2 on or after such date. 

3 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

4 SPONSORS.—Except with respect to the admin5 istrative duties of the pooled plan provider de6 scribed in paragraph (44)(A)(i), each employer 

7 in a pooled employer plan shall be treated as 

8 the plan sponsor with respect to the portion of 

9 the plan attributable to employees of such em10 ployer (or beneficiaries of such employees). 

11 ‘‘(44) POOLED PLAN PROVIDER.— 

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

13 provider’ means a person who— 

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

15 pooled employer plan as a named fiduciary, 

16 as the plan administrator, and as the per17 son responsible for the performance of all 

18 administrative duties (including conducting 

19 proper testing with respect to the plan and 

20 the employees of each employer in the 

21 plan) which are reasonably necessary to 

22 ensure that— 

23 ‘‘(I) the plan meets any require24 ment applicable under this Act or the 

25 Internal Revenue Code of 1986 to a 


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1 plan described in section 401(a) of 

2 such Code or to a plan that consists 

3 of individual retirement accounts de4 scribed in section 408 of such Code 

5 (including by reason of subsection (c) 

6 thereof), whichever is applicable; and 

7 ‘‘(II) each employer in the plan 

8 takes such actions as the Secretary or 

9 pooled plan provider determines are 

10 necessary for the plan to meet the re11 quirements described in subclause (I), 

12 including providing the disclosures 

13 and information described in para14 graph (43)(B)(v)(II); 

15 ‘‘(ii) registers as a pooled plan pro16 vider with the Secretary, and provides to 

17 the Secretary such other information as 

18 the Secretary may require, before begin19 ning operations as a pooled plan provider; 

20 ‘‘(iii) acknowledges in writing that 

21 such person is a named fiduciary, and the 

22 plan administrator, with respect to the 

23 pooled employer 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 pooled employer plan 

2 are bonded in accordance with section 412. 

3 ‘‘(B) AUDITS, EXAMINATIONS AND INVES4 TIGATIONS.—The Secretary may perform au5 dits, examinations, and investigations of pooled 

6 plan providers as may be necessary to enforce 

7 and carry out the purposes of this paragraph 

8 and paragraph (43). 

9 ‘‘(C) GUIDANCE.—The Secretary shall 

10 issue such guidance as the Secretary determines 

11 appropriate to carry out this paragraph and 

12 paragraph (43), including guidance— 

13 ‘‘(i) to identify the administrative du14 ties and other actions required to be per15 formed by a pooled plan provider under ei16 ther such paragraph; and 

17 ‘‘(ii) which requires in appropriate 

18 cases that if an employer in the plan fails 

19 to take the actions required under sub20 paragraph (A)(i)(II)— 

21 ‘‘(I) the assets of the plan attrib22 utable to employees of such employer 

23 (or beneficiaries of such employees) 

24 are transferred to a plan maintained 

25 only by such employer (or its sucVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 cessor), to an eligible retirement plan 

2 as defined in section 402(c)(8)(B) of 

3 the Internal Revenue Code of 1986 

4 for each individual whose account is 

5 transferred, or to any other arrange6 ment that the Secretary determines is 

7 appropriate in such guidance; and 

8 ‘‘(II) such employer (and not the 

9 plan with respect to which the failure 

10 occurred or any other employer in 

11 such plan) shall, except to the extent 

12 provided in such guidance, be liable 

13 for any liabilities with respect to such 

14 plan attributable to employees of such 

15 employer (or beneficiaries of such em16 ployees). 

17 The Secretary shall take into account under 

18 clause (ii) whether the failure of an employer or 

19 pooled plan provider to provide any disclosures 

20 or other information, or to take any other ac21 tion, necessary to administer a plan or to allow 

22 a plan to meet requirements described in sub23 paragraph (A)(i)(II) has continued over a pe24 riod of time that demonstrates a lack of com25 mitment to compliance. The Secretary may 


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1 waive the requirements of subclause (ii)(I) in 

2 appropriate circumstances if the Secretary de3 termines it is in the best interests of the em4 ployees of the employer referred to in such 

5 clause (and the beneficiaries of such employees) 

6 to retain the assets in the plan with respect to 

7 which the employer’s failure occurred. 

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

9 of this paragraph, in determining whether a 

10 person meets the requirements of this para11 graph to be a pooled plan provider with respect 

12 to any plan, all persons who perform services 

13 for the plan and who are treated as a single 

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

15 of section 414 of the Internal Revenue Code of 

16 1986 shall be treated as one person.’’. 

17 (2) BONDING REQUIREMENTS FOR POOLED EM18 PLOYER PLANS.—The last sentence of section 412(a) 

19 of the Employee Retirement Income Security Act of 

20 1974 (29 U.S.C. 1112(a)) is amended by inserting 

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

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

23 (3) CONFORMING AND TECHNICAL AMEND24 MENTS.—Section 3 of the Employee Retirement InVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 come Security Act of 1974 (29 U.S.C. 1002) is 

2 amended— 

3 (A) in paragraph (16)(B)— 

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

5 clause (ii); and 

6 (ii) by striking the period at the end 

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

8 pooled employer plan, the pooled plan pro9 vider.’’; and 

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

11 (d) POOLED EMPLOYER AND MULTIPLE EMPLOYER

12 PLAN REPORTING.— 

13 (1) ADDITIONAL INFORMATION.—Section 103 

14 of the Employee Retirement Income Security Act of 

15 1974 (29 U.S.C. 1023) is amended— 

16 (A) in subsection (a)(1)(B), by striking 

17 ‘‘applicable subsections (d), (e), and (f)’’ and 

18 inserting ‘‘applicable subsections (d), (e), (f), 

19 and (g)’’; and 

20 (B) by amending subsection (g) to read as 

21 follows: 

22 ‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO

23 POOLED EMPLOYER AND MULTIPLE EMPLOYER

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

25 year shall include— 


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

2 210(a) applies (including a pooled employer plan), a 

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

4 of the percentage of total contributions made by 

5 such employers during the plan year, and the aggre6 gate account balances attributable to each employer 

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

8 balances of the employees of such employer (and the 

9 beneficiaries of such employees)); and 

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

11 identifying information for the person designated 

12 under the terms of the plan as the pooled plan pro13 vider.’’. 

14 (2) SIMPLIFIED ANNUAL REPORTS.—Section 

15 104(a) of the Employee Retirement Income Security 

16 Act of 1974 (29 U.S.C. 1024(a)) is amended by 

17 striking paragraph (2)(A) and inserting the fol18 lowing: 

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

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

21 Secretary may by regulation prescribe simplified an22 nual reports for any pension plan that— 

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

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

25 that covers fewer than 1,000 participants, but 


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1 only if no single employer in the plan has 100 

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

3 (e) EFFECTIVE DATE.— 

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

5 this section shall apply to plan years beginning after 

6 December 31, 2019. 

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

8 amendments made by subsection (a) shall be con9 strued as limiting the authority of the Secretary of 

10 the Treasury or the Secretary’s delegate (determined 

11 without regard to such amendments) to provide for 

12 the proper treatment of a failure to meet any re13 quirement applicable under the Internal Revenue 

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

15 employees) in a multiple employer plan. 

16 SEC. 102. RULES RELATING TO ELECTION OF SAFE HARBOR 

17 401(k) STATUS. 

18 (a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE

19 TO MATCHING CONTRIBUTION PLANS.— 

20 (1) IN GENERAL.—Section 401(k)(12)(A) is 

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

22 that follows and inserting ‘‘if such arrangement— 

23 ‘‘(i) meets the contribution require24 ments of subparagraph (B) and the notice 

25 requirements of subparagraph (D), or 


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1 ‘‘(ii) meets the contribution require2 ments of subparagraph (C).’’. 

3 (2) AUTOMATIC CONTRIBUTION ARRANGE4 MENTS.—Section 401(k)(13)(B) is amended by 

5 striking ‘‘means’’ and all that follows and inserting 

6 ‘‘means a cash or deferred arrangement— 

7 ‘‘(i) which is described in subpara8 graph (D)(i)(I) and meets the applicable 

9 requirements of subparagraphs (C) 

10 through (E), or 

11 ‘‘(ii) which is described in subpara12 graph (D)(i)(II) and meets the applicable 

13 requirements of subparagraphs (C) and 

14 (D).’’. 

15 (b) NONELECTIVE CONTRIBUTIONS.—Section 

16 401(k)(12) is amended by redesignating subparagraph (F) 

17 as subparagraph (G), and by inserting after subparagraph 

18 (E) the following new subparagraph: 

19 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

20 EMPLOYER MAKING NONELECTIVE CONTRIBU21 TIONS.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clause (ii), a plan may be amend24 ed after the beginning of a plan year to 

25 provide that the requirements of subparaVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 graph (C) shall apply to the arrangement 

2 for the plan year, but only if the amend3 ment is adopted— 

4 ‘‘(I) at any time before the 30th 

5 day before the close of the plan year, 

6 or 

7 ‘‘(II) at any time before the last 

8 day under paragraph (8)(A) for dis9 tributing excess contributions for the 

10 plan year. 

11 ‘‘(ii) EXCEPTION WHERE PLAN PRO12 VIDED FOR MATCHING CONTRIBUTIONS.— 

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

14 if the plan provided at any time during the 

15 plan year that the requirements of sub16 paragraph (B) or paragraph (13)(D)(i)(I) 

17 applied to the plan year. 

18 ‘‘(iii) 4-PERCENT CONTRIBUTION RE19 QUIREMENT.—Clause (i)(II) shall not 

20 apply to an arrangement unless the 

21 amount of the contributions described in 

22 subparagraph (C) which the employer is 

23 required to make under the arrangement 

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1 ployee is an amount equal to at least 4 

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

3 (c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 

4 Section 401(k)(13) is amended by adding at the end the 

5 following: 

6 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

7 EMPLOYER MAKING NONELECTIVE CONTRIBU8 TIONS.— 

9 ‘‘(i) IN GENERAL.—Except as pro10 vided in clause (ii), a plan may be amend11 ed after the beginning of a plan year to 

12 provide that the requirements of subpara13 graph (D)(i)(II) shall apply to the arrange14 ment for the plan year, but only if the 

15 amendment is adopted— 

16 ‘‘(I) at any time before the 30th 

17 day before the close of the plan year, 

18 or 

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

20 day under paragraph (8)(A) for dis21 tributing excess contributions for the 

22 plan year. 

23 ‘‘(ii) EXCEPTION WHERE PLAN PRO24 VIDED FOR MATCHING CONTRIBUTIONS.— 

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


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1 if the plan provided at any time during the 

2 plan year that the requirements of sub3 paragraph (D)(i)(I) or paragraph (12)(B) 

4 applied to the plan year. 

5 ‘‘(iii) 4-PERCENT CONTRIBUTION RE6 QUIREMENT.—Clause (i)(II) shall not 

7 apply to an arrangement unless the 

8 amount of the contributions described in 

9 subparagraph (D)(i)(II) which the em10 ployer is required to make under the ar11 rangement for the plan year with respect 

12 to any employee is an amount equal to at 

13 least 4 percent of the employee’s com14 pensation.’’. 

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

16 this section shall apply to plan years beginning after De17 cember 31, 2019. 

18 SEC. 103. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 

19 AND STIPEND PAYMENTS TREATED AS COM20 PENSATION FOR IRA PURPOSES. 

21 (a) IN GENERAL.—Section 219(f)(1) is amended by 

22 adding at the end the following: ‘‘The term ‘compensation’ 

23 shall include any amount included in gross income and 

24 paid to an individual to aid the individual in the pursuit 

25 of graduate or postdoctoral study.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2019. 

4 SEC. 104. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 

5 CONTRIBUTIONS. 

6 (a) IN GENERAL.—Section 219(d) is amended by 

7 striking paragraph (1). 

8 (b) CONFORMING AMENDMENT.—Section 408A(c) is 

9 amended by striking paragraph (4) and by redesignating 

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

11 (6), respectively. 

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

13 this section shall apply to contributions made for taxable 

14 years beginning after December 31, 2019. 

15 SEC. 105. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 

16 MAKING LOANS THROUGH CREDIT CARDS 

17 AND OTHER SIMILAR ARRANGEMENTS. 

18 (a) IN GENERAL.—Section 72(p)(2) is amended by 

19 redesignating subparagraph (D) as subparagraph (E) and 

20 by inserting after subparagraph (C) the following new sub21 paragraph: 

22 ‘‘(D) PROHIBITION OF LOANS THROUGH

23 CREDIT CARDS AND OTHER SIMILAR ARRANGE24 MENTS.—Notwithstanding subparagraph (A), 

25 paragraph (1) shall apply to any loan which is 


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1 made through the use of any credit card or any 

2 other similar arrangement.’’. 

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

4 subsection (a) shall apply to loans made after the date 

5 of the enactment of this Act. 

6 SEC. 106. PORTABILITY OF LIFETIME INCOME INVEST7 MENTS. 

8 (a) IN GENERAL.—Section 401(a) is amended by in9 serting after paragraph (37) the following new paragraph: 

10 ‘‘(38) PORTABILITY OF LIFETIME INCOME IN11 VESTMENTS.— 

12 ‘‘(A) IN GENERAL.—Except as may be oth13 erwise provided by regulations, a trust forming 

14 part of a defined contribution plan shall not be 

15 treated as failing to constitute a qualified trust 

16 under this section solely by reason of allowing— 

17 ‘‘(i) qualified distributions of a life18 time income investment, or 

19 ‘‘(ii) distributions of a lifetime income 

20 investment in the form of a qualified plan 

21 distribution annuity contract, 

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

23 date on which such lifetime income investment 

24 is no longer authorized to be held as an invest25 ment option under the plan. 


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

2 subsection— 

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

4 means a direct trustee-to-trustee transfer 

5 described in paragraph (31)(A) to an eligi6 ble retirement plan (as defined in section 

7 402(c)(8)(B)), 

8 ‘‘(ii) the term ‘lifetime income invest9 ment’ means an investment option which is 

10 designed to provide an employee with elec11 tion rights— 

12 ‘‘(I) which are not uniformly 

13 available with respect to other invest14 ment options under the plan, and 

15 ‘‘(II) which are to a lifetime in16 come feature available through a con17 tract or other arrangement offered 

18 under the plan (or under another eli19 gible retirement plan (as so defined), 

20 if paid by means of a direct trustee21 to-trustee transfer described in para22 graph (31)(A) to such other eligible 

23 retirement plan), 

24 ‘‘(iii) the term ‘lifetime income fea25 ture’ means— 


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1 ‘‘(I) a feature which guarantees a 

2 minimum level of income annually (or 

3 more frequently) for at least the re4 mainder of the life of the employee or 

5 the joint lives of the employee and the 

6 employee’s designated beneficiary, or 

7 ‘‘(II) an annuity payable on be8 half of the employee under which pay9 ments are made in substantially equal 

10 periodic payments (not less frequently 

11 than annually) over the life of the em12 ployee or the joint lives of the em13 ployee and the employee’s designated 

14 beneficiary, and 

15 ‘‘(iv) the term ‘qualified plan distribu16 tion annuity contract’ means an annuity 

17 contract purchased for a participant and 

18 distributed to the participant by a plan or 

19 contract described in subparagraph (B) of 

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

21 clauses (i) and (ii) thereof).’’. 

22 (b) CASH OR DEFERRED ARRANGEMENT.— 

23 (1) IN GENERAL.—Section 401(k)(2)(B)(i) is 

24 amended by striking ‘‘or’’ at the end of subclause 

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


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1 and inserting ‘‘or’’, and by adding at the end the fol2 lowing new subclause: 

3 ‘‘(VI) except as may be otherwise 

4 provided by regulations, with respect 

5 to amounts invested in a lifetime in6 come investment (as defined in sub7 section (a)(38)(B)(ii)), the date that 

8 is 90 days prior to the date that such 

9 lifetime income investment may no 

10 longer be held as an investment option 

11 under the arrangement, and’’. 

12 (2) DISTRIBUTION REQUIREMENT.—Section 

13 401(k)(2)(B), as amended by paragraph (1), is 

14 amended by striking ‘‘and’’ at the end of clause (i), 

15 by striking the semicolon at the end of clause (ii) 

16 and inserting ‘‘, and’’, and by adding at the end the 

17 following new clause: 

18 ‘‘(iii) except as may be otherwise pro19 vided by regulations, in the case of 

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

21 distributed only in the form of a qualified 

22 distribution (as defined in subsection 

23 (a)(38)(B)(i)) or a qualified plan distribu24 tion annuity contract (as defined in sub25 section (a)(38)(B)(iv)),’’. 


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1 (c) SECTION 403(b) PLANS.— 

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

3 is amended by striking ‘‘or’’ at the end of subpara4 graph (B), by striking the period at the end of sub5 paragraph (C) and inserting ‘‘, or’’, and by inserting 

6 after subparagraph (C) the following new subpara7 graph: 

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

9 by regulations, with respect to amounts invested 

10 in a lifetime income investment (as defined in 

11 section 401(a)(38)(B)(ii))— 

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

13 days prior to the date that such lifetime 

14 income investment may no longer be held 

15 as an investment option under the con16 tract, and 

17 ‘‘(ii) in the form of a qualified dis18 tribution (as defined in section 

19 401(a)(38)(B)(i)) or a qualified plan dis20 tribution annuity contract (as defined in 

21 section 401(a)(38)(B)(iv)).’’. 

22 (2) CUSTODIAL ACCOUNTS.—Section 

23 403(b)(7)(A) is amended by striking ‘‘if—’’ and all 

24 that follows and inserting ‘‘if the amounts are to be 

25 invested in regulated investment company stock to 


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1 be held in that custodial account, and under the cus2 todial account— 

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

4 made available to any distributee (unless 

5 such amount is a distribution to which sec6 tion 72(t)(2)(G) applies) before— 

7 ‘‘(I) the employee dies, 

8 ‘‘(II) the employee attains age 

591 9 ⁄2, 

10 ‘‘(III) the employee has a sever11 ance from employment, 

12 ‘‘(IV) the employee becomes dis13 abled (within the meaning of section 

14 72(m)(7)), 

15 ‘‘(V) in the case of contributions 

16 made pursuant to a salary reduction 

17 agreement (within the meaning of sec18 tion 3121(a)(5)(D)), the employee en19 counters financial hardship, or 

20 ‘‘(VI) except as may be otherwise 

21 provided by regulations, with respect 

22 to amounts invested in a lifetime in23 come investment (as defined in section 

24 401(a)(38)(B)(ii)), the date that is 90 

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1 time income investment may no longer 

2 be held as an investment option under 

3 the contract, and 

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

5 in clause (i)(VI), such amounts will be dis6 tributed only in the form of a qualified dis7 tribution (as defined in section 

8 401(a)(38)(B)(i)) or a qualified plan dis9 tribution annuity contract (as defined in 

10 section 401(a)(38)(B)(iv)).’’. 

11 (d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 

12 (1) IN GENERAL.—Section 457(d)(1)(A) is 

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

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

15 adding after clause (iii) the following: 

16 ‘‘(iv) except as may be otherwise pro17 vided by regulations, in the case of a plan 

18 maintained by an employer described in 

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

20 amounts invested in a lifetime income in21 vestment (as defined in section 

22 401(a)(38)(B)(ii)), the date that is 90 

23 days prior to the date that such lifetime 

24 income investment may no longer be held 

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


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1 (2) DISTRIBUTION REQUIREMENT.—Section 

2 457(d)(1) is amended by striking ‘‘and’’ at the end 

3 of subparagraph (B), by striking the period at the 

4 end of subparagraph (C) and inserting ‘‘, and’’, and 

5 by inserting after subparagraph (C) the following 

6 new subparagraph: 

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

8 by regulations, in the case of amounts described 

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

10 distributed only in the form of a qualified dis11 tribution (as defined in section 

12 401(a)(38)(B)(i)) or a qualified plan distribu13 tion annuity contract (as defined in section 

14 401(a)(38)(B)(iv)).’’. 

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

16 this section shall apply to plan years beginning after De17 cember 31, 2019. 

18 SEC. 107. TREATMENT OF CUSTODIAL ACCOUNTS ON TER19 MINATION OF SECTION 403(b) PLANS. 

20 Not later than six months after the date of enactment 

21 of this Act, the Secretary of the Treasury shall issue guid22 ance to provide that, if an employer terminates the plan 

23 under which amounts are contributed to a custodial ac24 count under subparagraph (A) of section 403(b)(7), the 

25 plan administrator or custodian may distribute an indiVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 vidual custodial account in kind to a participant or bene2 ficiary of the plan and the distributed custodial account 

3 shall be maintained by the custodian on a tax-deferred 

4 basis as a section 403(b)(7) custodial account, similar to 

5 the treatment of fully-paid individual annuity contracts 

6 under Revenue Ruling 2011–7, until amounts are actually 

7 paid to the participant or beneficiary. The guidance shall 

8 provide further (i) that the section 403(b)(7) status of the 

9 distributed custodial account is generally maintained if the 

10 custodial account thereafter adheres to the requirements 

11 of section 403(b) that are in effect at the time of the dis12 tribution of the account and (ii) that a custodial account 

13 would not be considered distributed to the participant or 

14 beneficiary if the employer has any material retained 

15 rights under the account (but the employer would not be 

16 treated as retaining material rights simply because the 

17 custodial account was originally opened under a group 

18 contract). 

19 SEC. 108. CLARIFICATION OF RETIREMENT INCOME AC20 COUNT RULES RELATING TO CHURCH-CON21 TROLLED ORGANIZATIONS. 

22 (a) IN GENERAL.—Section 403(b)(9)(B) is amended 

23 by inserting ‘‘(including an employee described in section 

24 414(e)(3)(B))’’ after ‘‘employee described in paragraph 

25 (1)’’. 


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

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

3 after the date of the enactment of this Act. 

4 SEC. 109. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC 

5 ENROLLMENT SAFE HARBOR AFTER 1ST 

6 PLAN YEAR. 

7 (a) IN GENERAL.—Section 401(k)(13)(C)(iii) is 

8 amended by striking ‘‘does not exceed 10 percent’’ and 

9 inserting ‘‘does not exceed 15 percent (10 percent during 

10 the period described in subclause (I))’’. 

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

12 this section shall apply to plan years beginning after De13 cember 31, 2019. 

14 SEC. 110. INCREASE IN CREDIT LIMITATION FOR SMALL 

15 EMPLOYER PENSION PLAN STARTUP COSTS. 

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

17 is amended to read as follows: 

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

19 taxable years immediately following the first credit 

20 year, the greater of— 

21 ‘‘(A) $500, or 

22 ‘‘(B) the lesser of— 

23 ‘‘(i) $250 for each employee of the eli24 gible employer who is not a highly com25 pensated employee (as defined in section 


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1 414(q)) and who is eligible to participate 

2 in the eligible employer plan maintained by 

3 the eligible employer, or 

4 ‘‘(ii) $1,500, and’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2019. 

8 SEC. 111. SMALL EMPLOYER AUTOMATIC ENROLLMENT 

9 CREDIT. 

10 (a) IN GENERAL.—Section 45E is amended by add11 ing at the end the following new subsection: 

12 ‘‘(f) CREDIT FOR AUTO-ENROLLMENT OPTION FOR

13 RETIREMENT SAVINGS OPTIONS.— 

14 ‘‘(1) IN GENERAL.—The credit allowed under 

15 subsection (a) for any taxable year during an eligible 

16 employer’s retirement auto-enrollment credit period 

17 shall be increased (without regard to subsection (b)) 

18 by $500. 

19 ‘‘(2) RETIREMENT AUTO-ENROLLMENT CREDIT

20 PERIOD.— 

21 ‘‘(A) IN GENERAL.—The retirement auto22 enrollment credit period with respect to any eli23 gible employer is the 3-taxable-year period be24 ginning with the first taxable year for which the 

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1 tribution arrangement (as defined in section 

2 414(w)(3)) in a qualified employer plan (as de3 fined in section 4972(d)) sponsored by the em4 ployer. 

5 ‘‘(B) MAINTENANCE OF ARRANGEMENT.— 

6 No taxable year with respect to an employer 

7 shall be treated as occurring within the retire8 ment auto-enrollment credit period unless the 

9 arrangement described in subparagraph (A) is 

10 included in the plan for such year. 

11 ‘‘(3) NOT LIMITED TO NEW PLANS.—This sub12 section shall be applied without regard to subsection 

13 (c)(2).’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2019. 

17 SEC. 112. EXEMPTION FROM REQUIRED MINIMUM DIS18 TRIBUTION RULES FOR INDIVIDUALS WITH 

19 CERTAIN ACCOUNT BALANCES. 

20 (a) IN GENERAL.—Section 401(a)(9) is amended by 

21 adding at the end the following new subparagraph: 

22 ‘‘(H) EXCEPTION FROM REQUIRED MIN23 IMUM DISTRIBUTIONS DURING LIFE OF EM24 PLOYEE WHERE ASSETS DO NOT EXCEED

25 $50,000.— 


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1 ‘‘(i) IN GENERAL.—If on the last day 

2 of any calendar year the aggregate value of 

3 an employee’s entire interest under all ap4 plicable eligible retirement plans does not 

5 exceed $50,000, then the requirements of 

6 subparagraph (A) with respect to any dis7 tribution relating to such year shall not 

8 apply with respect to such employee. 

9 ‘‘(ii) APPLICABLE ELIGIBLE RETIRE10 MENT PLAN.—For purposes of this sub11 paragraph, the term ‘applicable eligible re12 tirement plan’ means an eligible retirement 

13 plan (as defined in section 402(c)(8)(B)) 

14 other than a defined benefit plan. 

15 ‘‘(iii) LIMIT ON REQUIRED MINIMUM

16 DISTRIBUTION.—The required minimum 

17 distribution determined under subpara18 graph (A) for an employee under all appli19 cable eligible retirement plans shall not ex20 ceed an amount equal to the excess of— 

21 ‘‘(I) the aggregate value of an 

22 employee’s entire interest under such 

23 plans on the last day of the calendar 

24 year to which such distribution re25 lates, over 


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1 ‘‘(II) the dollar amount in effect 

2 under clause (i) for such calendar 

3 year. 

4 The Secretary in regulations or other guid5 ance may provide how such amount shall 

6 be distributed in the case of an individual 

7 with more than one applicable eligible re8 tirement plan. 

9 ‘‘(iv) INFLATION ADJUSTMENT.—In 

10 the case of any calendar year beginning 

11 after 2020, the $50,000 amount in clause 

12 (i) shall be increased by an amount equal 

13 to— 

14 ‘‘(I) such dollar amount, multi15 plied by 

16 ‘‘(II) the cost of living adjust17 ment determined under section 1(f)(3) 

18 for the calendar year, determined by 

19 substituting ‘calendar year 2019’ for 

20 ‘calendar year 2016’ in subparagraph 

21 (A)(ii) thereof. 

22 Any increase determined under this clause 

23 shall be rounded to the next lowest mul24 tiple of $5,000. 


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1 ‘‘(v) PLAN ADMINISTRATOR RELIANCE

2 ON EMPLOYEE CERTIFICATION.—An appli3 cable eligible retirement plan described in 

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

5 402(c)(8)(B) shall not be treated as failing 

6 to meet the requirements of this paragraph 

7 in the case of any failure to make a re8 quired minimum distribution for a cal9 endar year if— 

10 ‘‘(I) the aggregate value of an 

11 employee’s entire interest under all 

12 applicable eligible retirement plans of 

13 the employer on the last day of the 

14 calendar year to which such distribu15 tion relates does not exceed the dollar 

16 amount in effect for such year under 

17 clause (i), and 

18 ‘‘(II) the employee certifies that 

19 the aggregate value of the employee’s 

20 entire interest under all applicable eli21 gible retirement plans on the last day 

22 of the calendar year to which such 

23 distribution relates did not exceed the 

24 dollar amount in effect for such year 

25 under clause (i). 


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1 ‘‘(vi) AGGREGATION RULE.—All em2 ployers treated as a single employer under 

3 subsection (b), (c), (m), or (o) of section 

4 414 shall be treated as a single employer 

5 for purposes of clause (v).’’. 

6 (b) PLAN ADMINISTRATOR REPORTING.—Section 

7 6047 is amended by redesignating subsection (h) as sub8 section (i) and by inserting after subsection (g) the fol9 lowing new subsection: 

10 ‘‘(h) ACCOUNT BALANCE FOR PARTICIPANTS WHO

11 HAVE ATTAINED AGE 69.— 

12 ‘‘(1) IN GENERAL.—Not later than January 31 

13 of each year, the plan administrator (as defined in 

14 section 414(g)) of each applicable eligible retirement 

15 plan (as defined in section 401(a)(9)(H)) shall make 

16 a return to the Secretary with respect to each par17 ticipant of such plan who has attained age 69 as of 

18 the end of the preceding calendar year which 

19 states— 

20 ‘‘(A) the name and plan number of the 

21 plan, 

22 ‘‘(B) the name and address of the plan ad23 ministrator, 

24 ‘‘(C) the name, address, and taxpayer 

25 identification number of the participant, and 


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1 ‘‘(D) the account balance of such partici2 pant as of the end of the preceding calendar 

3 year. 

4 ‘‘(2) STATEMENT FURNISHED TO PARTICI5 PANT.—Every person required to make a return 

6 under paragraph (1) with respect to a participant 

7 shall furnish a copy of such return to such partici8 pant. 

9 ‘‘(3) APPLICATION TO INDIVIDUAL RETIREMENT

10 PLANS AND ANNUITIES.—In the case of an applica11 ble eligible retirement plan described in clause (i) or 

12 (ii) of section 402(c)(8)(B)— 

13 ‘‘(A) any reference in this subsection to 

14 the plan administrator shall be treated as a ref15 erence to the trustee or issuer, as the case may 

16 be, and 

17 ‘‘(B) any reference in this subsection to 

18 the participant shall be treated as a reference 

19 to the individual for whom such account or an20 nuity is maintained.’’. 

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

22 this section shall apply to distributions required to be 

23 made in calendar years beginning more than 120 days 

24 after the date of the enactment of this Act. 


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1 SEC. 113. ELECTIVE DEFERRALS BY MEMBERS OF THE 

2 READY RESERVE OF A RESERVE COMPONENT 

3 OF THE ARMED FORCES. 

4 (a) IN GENERAL.—Section 402(g) is amended by 

5 adding at the end the following new paragraph: 

6 ‘‘(9) ELECTIVE DEFERRALS BY MEMBERS OF

7 READY RESERVE.— 

8 ‘‘(A) IN GENERAL.—In the case of a quali9 fied ready reservist for any taxable year, the 

10 limitations of subparagraphs (A) and (C) of 

11 paragraph (1) shall be applied separately with 

12 respect to— 

13 ‘‘(i) elective deferrals of such qualified 

14 ready reservist with respect to compensa15 tion described in subparagraph (B), and 

16 ‘‘(ii) all other elective deferrals of 

17 such qualified ready reservist. 

18 ‘‘(B) QUALIFIED READY RESERVIST.—For 

19 purposes of this paragraph, the term ‘qualified 

20 ready reservist’ means any individual for any 

21 taxable year if such individual received com22 pensation for service as a member of the Ready 

23 Reserve of a reserve component (as defined in 

24 section 101 of title 37, United States Code) 

25 during such taxable year.’’. 


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

2 this section shall apply to plan years beginning after De3 cember 31, 2019. 

4 TITLE II—ADMINISTRATIVE 

5 IMPROVEMENTS 

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

7 MAY BE TREATED AS IN EFFECT AS OF CLOSE 

8 OF YEAR. 

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

10 (1) by striking ‘‘RETROACTIVE CHANGES IN

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

12 AMENDMENTS.— 

13 ‘‘(1) CERTAIN RETROACTIVE CHANGES IN

14 PLAN.—A stock bonus’’, and 

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

16 paragraph: 

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

18 adopts a stock bonus, pension, profit-sharing, or an19 nuity plan after the close of a taxable year but be20 fore the time prescribed by law for filing the employ21 er’s return of tax for the taxable year (including ex22 tensions thereof), the employer may elect to treat 

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

24 of the taxable year.’’. 


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

2 this section shall apply to plans adopted for taxable years 

3 beginning after December 31, 2019. 

4 SEC. 202. MODIFICATION OF NONDISCRIMINATION RULES 

5 TO PROTECT OLDER, LONGER SERVICE PAR6 TICIPANTS. 

7 (a) IN GENERAL.—Section 401 is amended— 

8 (1) by redesignating subsection (o) as sub9 section (p), and 

10 (2) by inserting after subsection (n) the fol11 lowing new subsection: 

12 ‘‘(o) SPECIAL RULES FOR APPLYING NON13 DISCRIMINATION RULES TO PROTECT OLDER, LONGER

14 SERVICE AND GRANDFATHERED PARTICIPANTS.— 

15 ‘‘(1) TESTING OF DEFINED BENEFIT PLANS

16 WITH CLOSED CLASSES OF PARTICIPANTS.— 

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

18 PROVIDED TO CLOSED CLASSES.—A defined 

19 benefit plan which provides benefits, rights, or 

20 features to a closed class of participants shall 

21 not fail to satisfy the requirements of sub22 section (a)(4) by reason of the composition of 

23 such closed class or the benefits, rights, or fea24 tures provided to such closed class, if— 


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

2 class closes and the 2 succeeding plan 

3 years, such benefits, rights, and features 

4 satisfy the requirements of subsection 

5 (a)(4) (without regard to this subpara6 graph but taking into account the rules of 

7 subparagraph (I)), 

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

9 class was closed, any plan amendment 

10 which modifies the closed class or the ben11 efits, rights, and features provided to such 

12 closed class does not discriminate signifi13 cantly in favor of highly compensated em14 ployees, and 

15 ‘‘(iii) the class was closed before April 

16 5, 2017, or the plan is described in sub17 paragraph (C). 

18 ‘‘(B) AGGREGATE TESTING WITH DEFINED

19 CONTRIBUTION PLANS PERMITTED ON A BENE20 FITS BASIS.— 

21 ‘‘(i) IN GENERAL.—For purposes of 

22 determining compliance with subsection 

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

24 plan described in clause (iii) may be aggre25 gated and tested on a benefits basis with 


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1 1 or more defined contribution plans, in2 cluding with the portion of 1 or more de3 fined contribution plans 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.—For purposes of clause 

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

20 with a portion of a defined contribution 

21 plan providing matching contributions— 

22 ‘‘(I) such defined benefit plan 

23 must also be aggregated with any por24 tion of such defined contribution plan 

25 which provides elective deferrals deVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 scribed in subparagraph (A) or (C) of 

2 section 402(g)(3), and 

3 ‘‘(II) such matching contribu4 tions shall be treated in the same 

5 manner as nonelective contributions, 

6 including for purposes of applying the 

7 rules of subsection (l). 

8 ‘‘(iii) PLANS DESCRIBED.—A defined 

9 benefit plan is described in this clause if— 

10 ‘‘(I) the plan provides benefits to 

11 a closed class of participants, 

12 ‘‘(II) for the plan year as of 

13 which the class closes and the 2 suc14 ceeding plan years, the plan satisfies 

15 the requirements of section 410(b) 

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

17 to this subparagraph but taking into 

18 account the rules of subparagraph 

19 (I)), 

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

21 the class was closed, any plan amend22 ment which modifies the closed class 

23 or the benefits provided to such closed 

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1 cantly in favor of highly compensated 

2 employees, and 

3 ‘‘(IV) the class was closed before 

4 April 5, 2017, or the plan is described 

5 in subparagraph (C). 

6 ‘‘(C) PLANS DESCRIBED.—A plan is de7 scribed in this subparagraph if, taking into ac8 count any predecessor plan— 

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

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

11 closed, and 

12 ‘‘(ii) during the 5-year period pre13 ceding the date the class is closed, there 

14 has not been a substantial increase in the 

15 coverage or value of the benefits, rights, or 

16 features described in subparagraph (A) or 

17 in the coverage or benefits under the plan 

18 described in subparagraph (B)(iii) (which19 ever is applicable). 

20 ‘‘(D) DETERMINATION OF SUBSTANTIAL

21 INCREASE FOR BENEFITS, RIGHTS, AND FEA22 TURES.—In applying subparagraph (C)(ii) for 

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

24 be treated as having had a substantial increase 

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


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1 features described in subparagraph (A) during 

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

3 period— 

4 ‘‘(i) the number of participants cov5 ered by such benefits, rights, or features 

6 on the date such period ends is more than 

7 50 percent greater than the number of 

8 such participants on the first day of the 

9 plan year in which such period began, or 

10 ‘‘(ii) such benefits, rights, and fea11 tures have been modified by 1 or more 

12 plan amendments in such a way that, as of 

13 the date the class is closed, the value of 

14 such benefits, rights, and features to the 

15 closed class as a whole is substantially 

16 greater than the value as of the first day 

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

18 such amendments. 

19 ‘‘(E) DETERMINATION OF SUBSTANTIAL

20 INCREASE FOR AGGREGATE TESTING ON BENE21 FITS BASIS.—In applying subparagraph (C)(ii) 

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

23 plan shall be treated as having had a substan24 tial increase in coverage or benefits during the 


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1 applicable 5-year period only if, during such pe2 riod— 

3 ‘‘(i) the number of participants bene4 fitting under the plan on the date such pe5 riod ends is more than 50 percent greater 

6 than the number of such participants on 

7 the first day of the plan year in which such 

8 period began, or 

9 ‘‘(ii) the average benefit provided to 

10 such participants on the date such period 

11 ends is more than 50 percent greater than 

12 the average benefit provided on the first 

13 day of the plan year in which such period 

14 began. 

15 ‘‘(F) CERTAIN EMPLOYEES DIS16 REGARDED.—For purposes of subparagraphs 

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

18 or in coverage or benefits, whichever is applica19 ble, which is attributable to such coverage and 

20 value or coverage and benefits provided to em21 ployees— 

22 ‘‘(i) who became participants as a re23 sult of a merger, acquisition, or similar 

24 event which occurred during the 7-year peVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 riod preceding the date the class is closed, 

2 or 

3 ‘‘(ii) who became participants by rea4 son of a merger of the plan with another 

5 plan which had been in effect for at least 

6 5 years as of the date of the merger, 

7 shall be disregarded, except that clause (ii) 

8 shall apply for purposes of subparagraph (D) 

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

10 or features under 1 plan are conformed to the 

11 benefits, rights, or features of the other plan 

12 prospectively. 

13 ‘‘(G) RULES RELATING TO AVERAGE BEN14 EFIT.—For purposes of subparagraph (E)— 

15 ‘‘(i) the average benefit provided to 

16 participants under the plan will be treated 

17 as having remained the same between the 

18 2 dates described in subparagraph (E)(ii) 

19 if the benefit formula applicable to such 

20 participants has not changed between such 

21 dates, and 

22 ‘‘(ii) if the benefit formula applicable 

23 to 1 or more participants under the plan 

24 has changed between such 2 dates, then 

25 the average benefit under the plan shall be 


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1 considered to have increased by more than 

2 50 percent only if— 

3 ‘‘(I) the total amount determined 

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

5 participants benefitting under the 

6 plan for the plan year in which the 5- 

7 year period described in subparagraph 

8 (E) ends, exceeds 

9 ‘‘(II) the total amount deter10 mined under section 430(b)(1)(A)(i) 

11 for all such participants for such plan 

12 year, by using the benefit formula in 

13 effect for each such participant for 

14 the first plan year in such 5-year pe15 riod, by more than 50 percent. 

16 In the case of a CSEC plan (as defined in 

17 section 414(y)), the normal cost of the 

18 plan (as determined under section 

19 433(j)(1)(B)) shall be used in lieu of the 

20 amount determined under section 

21 430(b)(1)(A)(i). 

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

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

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


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1 a single plan rather than as separate plans 

2 maintained by each employer in the plan. 

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

4 subparagraphs (A)(i) and (B)(iii)(II), the fol5 lowing rules shall apply: 

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

7 the closing of the class of participants shall 

8 not be treated as a significant change in 

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

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

11 to be eligible to be aggregated and treated 

12 as a single plan solely by reason of having 

13 different plan years. 

14 ‘‘(iii) Changes in the employee popu15 lation shall be disregarded to the extent at16 tributable to individuals who become em17 ployees or cease to be employees, after the 

18 date the class is closed, by reason of a 

19 merger, acquisition, divestiture, or similar 

20 event. 

21 ‘‘(iv) Aggregation and all other testing 

22 methodologies otherwise applicable under 

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

24 be taken into account. 


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1 The rule of clause (ii) shall also apply for pur2 poses of determining whether plans to which 

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

4 and treated as 1 plan for purposes of deter5 mining whether such plans meet the require6 ments of subsection (a)(4) and section 410(b). 

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

8 this paragraph, if a portion of a defined benefit 

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

10 is spun off to another employer and the spun11 off plan continues to satisfy the requirements 

12 of— 

13 ‘‘(i) subparagraph (A)(i) or 

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

15 original plan was still within the 3-year pe16 riod described in such subparagraph at the 

17 time of the spin off, and 

18 ‘‘(ii) subparagraph (A)(ii) or 

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

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

21 of the spun-off plan shall continue with respect 

22 to such other employer. 

23 ‘‘(2) TESTING OF DEFINED CONTRIBUTION

24 PLANS.— 


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

2 defined contribution plan shall be permitted to 

3 be tested on a benefits basis if— 

4 ‘‘(i) such defined contribution plan 

5 provides make-whole contributions to a 

6 closed class of participants whose accruals 

7 under a defined benefit plan have been re8 duced or eliminated, 

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

10 contribution plan as of which the class eli11 gible to receive such make-whole contribu12 tions closes and the 2 succeeding plan 

13 years, such closed class of participants sat14 isfies the requirements of section 

15 410(b)(2)(A)(i) (determined by applying 

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

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

18 class was closed, any plan amendment to 

19 the defined contribution plan which modi20 fies the closed class or the allocations, ben21 efits, rights, and features provided to such 

22 closed class does not discriminate signifi23 cantly in favor of highly compensated em24 ployees, and 


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1 ‘‘(iv) the class was closed before April 

2 5, 2017, or the defined benefit plan under 

3 clause (i) is described in paragraph (1)(C) 

4 (as applied for purposes of paragraph 

5 (1)(B)(iii)(IV)). 

6 ‘‘(B) AGGREGATION WITH PLANS INCLUD7 ING MATCHING CONTRIBUTIONS.— 

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

9 or more defined contribution plans de10 scribed in subparagraph (A), for purposes 

11 of determining compliance with subsection 

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

13 such plans which provides make-whole con14 tributions or other nonelective contribu15 tions may be aggregated and tested on a 

16 benefits basis with the portion of 1 or 

17 more other defined contribution plans 

18 which— 

19 ‘‘(I) provides matching contribu20 tions (as defined in subsection 

21 (m)(4)(A)), 

22 ‘‘(II) provides annuity contracts 

23 described in section 403(b) which are 

24 purchased with matching contribu25 tions or nonelective contributions, or 


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1 ‘‘(III) consists of an employee 

2 stock ownership plan (within the 

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

4 tax credit employee stock ownership 

5 plan (within the meaning of section 

6 409(a)). 

7 ‘‘(ii) SPECIAL RULES FOR MATCHING

8 CONTRIBUTIONS.—Rules similar to the 

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

10 for purposes of clause (i). 

11 ‘‘(C) SPECIAL RULES FOR TESTING DE12 FINED CONTRIBUTION PLAN FEATURES PRO13 VIDING MATCHING CONTRIBUTIONS TO CERTAIN

14 OLDER, LONGER SERVICE PARTICIPANTS.—In 

15 the case of a defined contribution plan which 

16 provides benefits, rights, or features to a closed 

17 class of participants whose accruals under a de18 fined benefit plan have been reduced or elimi19 nated, the plan shall not fail to satisfy the re20 quirements of subsection (a)(4) solely by reason 

21 of the composition of the closed class or the 

22 benefits, rights, or features provided to such 

23 closed class if the defined contribution plan and 

24 defined benefit plan otherwise meet the require25 ments of subparagraph (A) but for the fact that 


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1 the make-whole contributions under the defined 

2 contribution plan are made in whole or in part 

3 through matching contributions. 

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

5 this paragraph, if a portion of a defined con6 tribution plan described in subparagraph (A) or 

7 (C) is spun off to another employer, the treat8 ment under subparagraph (A) or (C) of the 

9 spun-off plan shall continue with respect to the 

10 other employer if such plan continues to comply 

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

12 original plan was still within the 3-year period 

13 described in such clause at the time of the spin 

14 off) and (iii) of subparagraph (A), as deter15 mined for purposes of subparagraph (A) or (C), 

16 whichever is applicable. 

17 ‘‘(3) DEFINITIONS.—For purposes of this sub18 section— 

19 ‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex20 cept as otherwise provided in paragraph (2)(C), 

21 the term ‘make-whole contributions’ means non22 elective allocations for each employee in the 

23 class which are reasonably calculated, in a con24 sistent manner, to replace some or all of the re25 tirement benefits which the employee would 


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1 have received under the defined benefit plan 

2 and any other plan or qualified cash or deferred 

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

4 change had been made to such defined benefit 

5 plan and such other plan or arrangement. For 

6 purposes of the preceding sentence, consistency 

7 shall not be required with respect to employees 

8 who were subject to different benefit formulas 

9 under the defined benefit plan. 

10 ‘‘(B) REFERENCES TO CLOSED CLASS OF

11 PARTICIPANTS.—References to a closed class of 

12 participants and similar references to a closed 

13 class shall include arrangements under which 1 

14 or more classes of participants are closed, ex15 cept that 1 or more classes of participants 

16 closed on different dates shall not be aggre17 gated for purposes of determining the date any 

18 such class was closed. 

19 ‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 

20 The term ‘highly compensated employee’ has 

21 the meaning given such term in section 

22 414(q).’’. 

23 (b) PARTICIPATION REQUIREMENTS.—Section 

24 401(a)(26) is amended by adding at the end the following 

25 new subparagraph: 


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1 ‘‘(I) PROTECTED PARTICIPANTS.— 

2 ‘‘(i) IN GENERAL.—A plan shall be 

3 deemed to satisfy the requirements of sub4 paragraph (A) if— 

5 ‘‘(I) the plan is amended— 

6 ‘‘(aa) to cease all benefit ac7 cruals, or 

8 ‘‘(bb) to provide future ben9 efit accruals only to a closed 

10 class of participants, 

11 ‘‘(II) the plan satisfies subpara12 graph (A) (without regard to this sub13 paragraph) as of the effective date of 

14 the amendment, and 

15 ‘‘(III) the amendment was adopt16 ed before April 5, 2017, or the plan is 

17 described in clause (ii). 

18 ‘‘(ii) PLANS DESCRIBED.—A plan is 

19 described in this clause if the plan would 

20 be described in subsection (o)(1)(C), as ap21 plied for purposes of subsection 

22 (o)(1)(B)(iii)(IV) and by treating the effec23 tive date of the amendment as the date the 

24 class was closed for purposes of subsection 

25 (o)(1)(C). 


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

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

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

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

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

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

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

10 another employer, the treatment under 

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

13 (c) EFFECTIVE DATE.— 

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

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

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

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

20 (2) SPECIAL RULES.— 

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

23 amendments made by this section shall apply to 

24 plan years beginning after December 31, 2013. 


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1 (B) CLOSED CLASSES OF PARTICIPANTS.— 

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

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

4 of the Internal Revenue Code of 1986 (as added 

5 by this section), a closed class of participants 

6 shall be treated as being closed before April 5, 

7 2017, if the plan sponsor’s intention to create 

8 such closed class is reflected in formal written 

9 documents and communicated to participants 

10 before such date. 

11 (C) CERTAIN POST-ENACTMENT PLAN

12 AMENDMENTS.—A plan shall not be treated as 

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

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

17 of— 

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

19 was amended before the date of the enact20 ment of this Act to eliminate 1 or more 

21 benefits, rights, or features, and is further 

22 amended after such date of enactment to 

23 provide such previously eliminated benefits, 

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


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

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

3 before the date of the enactment of this 

4 Act to cease all benefit accruals, and is 

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

7 class of participants. Any such section 

8 shall only apply if the plan otherwise meets 

9 the requirements of such section and in ap10 plying such section, the date the class of 

11 participants is closed shall be the effective 

12 date of the later amendment. 

13 SEC. 203. FIDUCIARY SAFE HARBOR FOR SELECTION OF 

14 LIFETIME INCOME PROVIDER. 

15 Section 404 of the Employee Retirement Income Se16 curity Act of 1974 (29 U.S.C. 1104) is amended by adding 

17 at the end the following: 

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

19 ‘‘(1) IN GENERAL.—With respect to the selec20 tion of an insurer for a guaranteed retirement in21 come contract, the requirements of subsection 

22 (a)(1)(B) will be deemed to be satisfied if a fidu23 ciary— 

24 ‘‘(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. 204. DISCLOSURE REGARDING LIFETIME INCOME. 

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

17 105(a)(2) of the Employee Retirement Income Security 

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

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

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

21 and inserting ‘‘diversification, and’’; and 

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

23 ‘‘(iii) the lifetime income disclosure 

24 described in subparagraph (D)(i). 


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

4 subparagraph shall be required to be included 

5 in only one pension benefit statement during 

6 any one 12-month period.’’. 

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

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

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

10 end the following new subparagraph: 

11 ‘‘(D) LIFETIME INCOME DISCLOSURE.— 

12 ‘‘(i) IN GENERAL.— 

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

16 total benefits accrued with respect to 

17 the participant or beneficiary. 

18 ‘‘(II) LIFETIME INCOME STREAM

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

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

23 benefits accrued’ means the amount of 

24 monthly payments the participant or 

25 beneficiary would receive if the total 


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1 accrued benefits of such participant or 

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

5 specified in rules prescribed by the 

6 Secretary. 

7 ‘‘(III) LIFETIME INCOME

8 STREAMS.—The lifetime income 

9 streams described in this subclause 

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

12 based on assumptions specified in 

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

16 equal age, and a single life annuity. 

17 Such lifetime income streams may 

18 have a term certain or other features 

19 to the extent permitted under rules 

20 prescribed by the Secretary. 

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

22 than 1 year after the date of the enact23 ment of the Family Savings Act of 2019, 

24 the Secretary shall issue a model lifetime 

25 income disclosure, written in a manner so 


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1 as to be understood by the average plan 

2 participant, which— 

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

6 ‘‘(II) explains that the actual 

7 payments under the lifetime income 

8 stream described in clause (i)(III) 

9 which may be purchased with the 

10 total benefits accrued will depend on 

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

13 stream equivalent in the disclosures; 

14 ‘‘(III) explains the assumptions 

15 upon which the lifetime income stream 

16 equivalent was determined; and 

17 ‘‘(IV) provides such other similar 

18 explanations as the Secretary con19 siders appropriate. 

20 ‘‘(iii) ASSUMPTIONS AND RULES.— 

21 Not later than 1 year after the date of the 

22 enactment of the Family Savings Act of 

23 2019, the Secretary shall— 

24 ‘‘(I) prescribe assumptions which 

25 administrators of individual account 


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1 plans may use in converting total ac2 crued benefits into lifetime income 

3 stream equivalents for purposes of 

4 this subparagraph; and 

5 ‘‘(II) issue interim final rules 

6 under clause (i). 

7 In prescribing assumptions under sub8 clause (I), the Secretary may prescribe a 

9 single set of specific assumptions (in which 

10 case the Secretary may issue tables or fac11 tors which facilitate such conversions), or 

12 ranges of permissible assumptions. To the 

13 extent that an accrued benefit is or may be 

14 invested in a lifetime income stream de15 scribed in clause (i)(III), the assumptions 

16 prescribed under subclause (I) shall, to the 

17 extent appropriate, permit administrators 

18 of individual account plans to use the 

19 amounts payable under such lifetime in20 come stream as a lifetime income stream 

21 equivalent. 

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

23 plan fiduciary, plan sponsor, or other per24 son shall have any liability under this title 

25 solely by reason of the provision of lifetime 


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1 income stream equivalents which are de2 rived in accordance with the assumptions 

3 and rules described in clause (iii) and 

4 which include the explanations contained in 

5 the model lifetime income disclosure de6 scribed in clause (ii). This clause shall 

7 apply without regard to whether the provi8 sion of such lifetime income stream equiva9 lent is required by subparagraph (B)(iii). 

10 ‘‘(v) EFFECTIVE DATE.—The require11 ment in subparagraph (B)(iii) shall apply 

12 to pension benefit statements furnished 

13 more than 12 months after the latest of 

14 the issuance by the Secretary of— 

15 ‘‘(I) interim final rules under 

16 clause (i); 

17 ‘‘(II) the model disclosure under 

18 clause (ii); or 

19 ‘‘(III) the assumptions under 

20 clause (iii).’’. 

21 SEC. 205. MODIFICATION OF PBGC PREMIUMS FOR CSEC 

22 PLANS. 

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

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


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1 Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amend2 ed— 

3 (1) in clause (i), by striking ‘‘plan,’’ and insert4 ing ‘‘plan other than a CSEC plan (as defined in 

5 section 210(f)(1))’’; 

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

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

8 end and inserting ‘‘, or’’; and 

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

10 clause: 

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

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

13 years beginning after December 31, 2018, 

14 for each individual who is a participant in 

15 such plan during the plan year an amount 

16 equal to the sum of— 

17 ‘‘(I) the additional premium (if 

18 any) determined under subparagraph 

19 (E), and 

20 ‘‘(II) $19.’’. 

21 (b) VARIABLE RATE PREMIUM.— 

22 (1) UNFUNDED VESTED BENEFITS.— 

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

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

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


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1 1306(a)(3)) is amended by adding at the end 

2 the following new clause: 

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

4 case of a CSEC plan (as defined in section 

5 210(f)(1)), the term ‘unfunded vested ben6 efits’ means, for plan years beginning after 

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

8 of— 

9 ‘‘(I) the funding liability of the 

10 plan as determined under section 

11 306(j)(5)(C) for the plan year by only 

12 taking into account vested benefits, 

13 over 

14 ‘‘(II) the fair market value of 

15 plan assets for the plan year which 

16 are held by the plan on the valuation 

17 date.’’. 

18 (B) CONFORMING AMENDMENT.—Clause 

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

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

21 ‘‘For purposes’’ and inserting ‘‘Except as pro22 vided in clause (v), for purposes’’. 

23 (2) APPLICABLE DOLLAR AMOUNT.— 

24 (A) IN GENERAL.—Paragraph (8) of sec25 tion 4006(a) of such Act (29 U.S.C. 1306(a)) 


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1 is amended by adding at the end the following 

2 new subparagraph: 

3 ‘‘(E) CSEC PLANS.—In the case of a 

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

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

6 (B) CONFORMING AMENDMENT.—Subpara7 graph (A) of section 4006(a)(8) of such Act (29 

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

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

10 TITLE III—OTHER SAVINGS 

11 PROVISIONS 

12 SEC. 301. EXPANSION OF SECTION 529 PLANS. 

13 (a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSO14 CIATED WITH REGISTERED APPRENTICESHIP PRO15 GRAMS.—Section 529(c) of the Internal Revenue Code of 

16 1986 is amended by adding at the end the following new 

17 paragraph: 

18 ‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSO19 CIATED WITH REGISTERED APPRENTICESHIP PRO20 GRAMS.—Any reference in this subsection to the 

21 term ‘qualified higher education expense’ shall in22 clude a reference to expenses for fees, books, sup23 plies, and equipment required for the participation 

24 of a designated beneficiary in an apprenticeship pro25 gram registered and certified with the Secretary of 


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1 Labor under section 1 of the National Apprentice2 ship Act (29 U.S.C. 50).’’. 

3 (b) DISTRIBUTIONS FOR CERTAIN HOMESCHOOLING

4 EXPENSES.—Section 529(c)(7) of such Code is amended 

5 by striking ‘‘include a reference to’’ and all that follows 

6 and inserting ‘‘include a reference to— 

7 ‘‘(A) expenses for tuition in connection 

8 with enrollment or attendance of a designated 

9 beneficiary at an elementary or secondary pub10 lic, private, or religious school, and 

11 ‘‘(B) expenses, with respect to a des12 ignated beneficiary, for— 

13 ‘‘(i) curriculum and curricular mate14 rials, 

15 ‘‘(ii) books or other instructional ma16 terials, 

17 ‘‘(iii) online educational materials, 

18 ‘‘(iv) tuition for tutoring or edu19 cational classes outside of the home (but 

20 only if the tutor or class instructor is not 

21 related (within the meaning of section 

22 152(d)(2)) to the student), 

23 ‘‘(v) dual enrollment in an institution 

24 of higher education, and 


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1 ‘‘(vi) educational therapies for stu2 dents with disabilities, 

3 in connection with a homeschool (whether treat4 ed as a homeschool or a private school for pur5 poses of applicable State law).’’. 

6 (c) DISTRIBUTIONS FOR QUALIFIED EDUCATION

7 LOAN REPAYMENTS.— 

8 (1) IN GENERAL.—Section 529(c) of such Code, 

9 as amended by subsection (a), is amended by adding 

10 at the end the following new paragraph: 

11 ‘‘(9) TREATMENT OF QUALIFIED EDUCATION

12 LOAN REPAYMENTS.— 

13 ‘‘(A) IN GENERAL.—Any reference in this 

14 subsection to the term ‘qualified higher edu15 cation expense’ shall include a reference to 

16 amounts paid as principal or interest on any 

17 qualified education loan (as defined in section 

18 221(d)) of the designated beneficiary or a sib19 ling of the designated beneficiary. 

20 ‘‘(B) LIMITATION.—The amount of dis21 tributions treated as a qualified higher edu22 cation expense under this paragraph with re23 spect to the loans of any individual shall not ex24 ceed $10,000 (reduced by the amount of dis25 tributions so treated for all prior taxable years). 


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1 ‘‘(C) SPECIAL RULES FOR SIBLINGS OF

2 THE DESIGNATED BENEFICIARY.— 

3 ‘‘(i) SEPARATE ACCOUNTING.—For 

4 purposes of subparagraph (B) and sub5 section (d), amounts treated as a qualified 

6 higher education expense with respect to 

7 the loans of a sibling of the designated 

8 beneficiary shall be taken into account 

9 with respect to such sibling and not with 

10 respect to such designated beneficiary. 

11 ‘‘(ii) SIBLING DEFINED.—For pur12 poses of this paragraph, the term ‘sibling’ 

13 means an individual who bears a relation14 ship to the designated beneficiary which is 

15 described in section 152(d)(2)(B).’’. 

16 (2) COORDINATION WITH DEDUCTION FOR STU17 DENT LOAN INTEREST.—Section 221(e)(1) of such 

18 Code is amended by adding at the end the following: 

19 ‘‘The deduction otherwise allowable under subsection 

20 (a) (prior to the application of subsection (b)) to the 

21 taxpayer for any taxable year shall be reduced (but 

22 not below zero) by so much of the distributions 

23 treated as a qualified higher education expense 

24 under section 529(c)(9) with respect to loans of the 

25 taxpayer as would be includible in gross income 


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1 under section 529(c)(3)(A) for such taxable year but 

2 for such treatment.’’. 

3 (d) DISTRIBUTIONS FOR CERTAIN ELEMENTARY AND

4 SECONDARY SCHOOL EXPENSES IN ADDITION TO TUI5 TION.—Section 529(c)(7)(A), as amended by subsection 

6 (b), is amended to read as follows: 

7 ‘‘(A) expenses described in section 

8 530(b)(3)(A)(i) in connection with enrollment 

9 or attendance of a designated beneficiary at an 

10 elementary or secondary public, private, or reli11 gious school, and’’. 

12 (e) UNBORN CHILDREN ALLOWED AS ACCOUNT

13 BENEFICIARIES.—Section 529(e) is amended by adding at 

14 the end the following new paragraph: 

15 ‘‘(6) TREATMENT OF UNBORN CHILDREN.— 

16 ‘‘(A) IN GENERAL.—Nothing shall prevent 

17 an unborn child from being treated as a des18 ignated beneficiary or an individual under this 

19 section. 

20 ‘‘(B) UNBORN CHILD.—For purposes of 

21 this paragraph— 

22 ‘‘(i) IN GENERAL.—The term ‘unborn 

23 child’ means a child in utero. 

24 ‘‘(ii) CHILD IN UTERO.—The term 

25 ‘child in utero’ means a member of the 


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1 species homo sapiens, at any stage of de2 velopment, who is carried in the womb.’’. 

3 (f) EFFECTIVE DATES.— 

4 (1) IN GENERAL.—Except as otherwise pro5 vided in this subsection, the amendments made by 

6 this section shall apply to distributions made after 

7 December 31, 2019. 

8 (2) UNBORN CHILDREN ALLOWED AS ACCOUNT

9 BENEFICIARIES.—The amendment made by sub10 section (e) shall apply to contributions made after 

11 December 31, 2019. 

12 SEC. 302. PENALTY-FREE WITHDRAWALS FROM RETIRE13 MENT PLANS FOR INDIVIDUALS IN CASE OF 

14 BIRTH OF CHILD OR ADOPTION. 

15 (a) IN GENERAL.—Section 72(t)(2) is amended by 

16 adding at the end the following new subparagraph: 

17 ‘‘(H) DISTRIBUTIONS FROM RETIREMENT

18 PLANS IN CASE OF BIRTH OF CHILD OR ADOP19 TION.— 

20 ‘‘(i) IN GENERAL.—Any qualified 

21 birth or adoption distribution. 

22 ‘‘(ii) LIMITATION.—The aggregate 

23 amount which may be treated as qualified 

24 birth or adoption distributions by any indiVerDate Sep 11 2014 01:44 Feb 21, 2019 Jkt 089200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\H1084.IH H1084

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1 vidual with respect to any birth or adop2 tion shall not exceed $7,500. 

3 ‘‘(iii) QUALIFIED BIRTH OR ADOPTION

4 DISTRIBUTION.—For purposes of this sub5 paragraph— 

6 ‘‘(I) IN GENERAL.—The term 

7 ‘qualified birth or adoption distribu8 tion’ means any distribution from an 

9 applicable eligible retirement plan to 

10 an individual if made during the 1- 

11 year period beginning on the date on 

12 which a child of the individual is born 

13 or on which the legal adoption by the 

14 individual of an eligible child is final15 ized. 

16 ‘‘(II) ELIGIBLE CHILD.—The 

17 term ‘eligible child’ means any indi18 vidual (other than a child of the tax19 payer’s spouse) who has not attained 

20 age 18 or is physically or mentally in21 capable of self-support. 

22 ‘‘(iv) TREATMENT OF PLAN DISTRIBU23 TIONS.— 

24 ‘‘(I) IN GENERAL.—If a distribu25 tion to an individual would (without 


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1 regard to clause (ii)) be a qualified 

2 birth or adoption distribution, a plan 

3 shall not be treated as failing to meet 

4 any requirement of this title merely 

5 because the plan treats the distribu6 tion as a qualified birth or adoption 

7 distribution, unless the aggregate 

8 amount of such distributions from all 

9 plans maintained by the employer 

10 (and any member of any controlled 

11 group which includes the employer) to 

12 such individual exceeds $7,500. 

13 ‘‘(II) CONTROLLED GROUP.—For 

14 purposes of subclause (I), the term 

15 ‘controlled group’ means any group 

16 treated as a single employer under 

17 subsection (b), (c), (m), or (o) of sec18 tion 414. 

19 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

20 REPAID.— 

21 ‘‘(I) IN GENERAL.—Any indi22 vidual who receives a qualified birth 

23 or adoption distribution may make 

24 one or more contributions in an ag25 gregate amount not to exceed the 


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1 amount of such distribution to an ap2 plicable eligible retirement plan of 

3 which such individual is a beneficiary 

4 and to which a rollover contribution of 

5 such distribution could be made under 

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

7 408(d)(3), or 457(e)(16), as the case 

8 may be. 

9 ‘‘(II) LIMITATION ON CONTRIBU10 TIONS TO APPLICABLE ELIGIBLE RE11 TIREMENT PLANS OTHER THAN

12 IRAS.—The aggregate amount of con13 tributions made by an individual 

14 under subclause (I) to any applicable 

15 eligible retirement plan which is not 

16 an individual retirement plan shall not 

17 exceed the aggregate amount of quali18 fied birth or adoption distributions 

19 which are made from such plan to 

20 such individual. Subclause (I) shall 

21 not apply to contributions to any ap22 plicable eligible retirement plan which 

23 is not an individual retirement plan 

24 unless the individual is eligible to 

25 make contributions (other than those 


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

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

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

8 with respect to a qualified birth or 

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

11 an individual retirement plan, then 

12 the taxpayer shall, to the extent of the 

13 amount of the contribution, be treated 

14 as having received such distribution in 

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

17 having transferred the amount to the 

18 applicable eligible retirement plan in a 

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

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

23 IRAS.—If a contribution is made 

24 under subclause (I) with respect to a 

25 qualified birth or adoption distribution 


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1 from an individual retirement plan, 

2 then, to the extent of the amount of 

3 the contribution, such distribution 

4 shall be treated as a distribution de5 scribed in section 408(d)(3) and as 

6 having been transferred to the appli7 cable eligible retirement plan in a di8 rect trustee to trustee transfer within 

9 60 days of the distribution. 

10 ‘‘(vi) DEFINITION AND SPECIAL

11 RULES.—For purposes of this subpara12 graph— 

13 ‘‘(I) APPLICABLE ELIGIBLE RE14 TIREMENT PLAN.—The term ‘applica15 ble eligible retirement plan’ means an 

16 eligible retirement plan (as defined in 

17 section 402(c)(8)(B)) other than a de18 fined benefit plan. 

19 ‘‘(II) EXEMPTION OF DISTRIBU20 TIONS FROM TRUSTEE TO TRUSTEE

21 TRANSFER AND WITHHOLDING

22 RULES.—For purposes of sections 

23 401(a)(31), 402(f), and 3405, a quali24 fied birth or adoption distribution 


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1 shall not be treated as an eligible roll2 over distribution. 

3 ‘‘(III) TAXPAYER MUST INCLUDE

4 TIN.—A distribution shall not be 

5 treated as a qualified birth or adop6 tion distribution with respect to any 

7 child or eligible child unless the tax8 payer includes the name, age, and 

9 TIN of such child or eligible child on 

10 the taxpayer’s return of tax for the 

11 taxable year. 

12 ‘‘(IV) DISTRIBUTIONS TREATED

13 AS MEETING PLAN DISTRIBUTION RE14 QUIREMENTS.—Any qualified birth or 

15 adoption distribution shall be treated 

16 as meeting the requirements of sec17 tions 401(k)(2)(B)(i), 

18 403(b)(7)(A)(ii), 403(b)(11), and 

19 457(d)(1)(A).’’. 

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

21 this section shall apply to distributions made after Decem22 ber 31, 2019. 


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1 TITLE IV—BUDGETARY EFFECTS 

2 SEC. 401. BUDGETARY EFFECTS. 

3 (a) STATUTORY PAYGO SCORECARDS.—The budg4 etary effects of this Act shall not be entered on either 

5 PAYGO scorecard maintained pursuant to section 4(d) of 

6 the Statutory Pay-As-You-Go Act of 2010. 

7 (b) SENATE PAYGO SCORECARDS.—The budgetary 

8 effects of this Act shall not be entered on any PAYGO 

9 scorecard maintained for purposes of section 4106 of H. 

10 Con. Res. 71 (115th Congress). 

Æ 


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