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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1927 Introduced in Senate (IS)]

104th CONGRESS
  2d Session
                                S. 1927

To prohibit 401(k) plans from investing in collectibles and to require 
   certain 401(k) plans to provide to participants annual, detailed 
             reports on the investments made by such plans.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 28, 1996

  Mrs. Boxer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To prohibit 401(k) plans from investing in collectibles and to require 
   certain 401(k) plans to provide to participants annual, detailed 
             reports on the investments made by such plans.

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

SECTION 1. 401(k) PLANS PROHIBITED FROM INVESTING IN COLLECTIBLES.

    (a) In General.--Paragraph (4) of section 401(k) of the Internal 
Revenue Code of 1986 (relating to cash or deferred arrangements) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Investment in collectibles treated as 
                distributions.--The rules of section 408(m) shall apply 
                to a cash or deferred arrangement of any employer.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 2. REQUIREMENT OF ANNUAL, DETAILED INVESTMENT REPORTS APPLIED TO 
              CERTAIN 401(k) PLANS.

    (a) In General.--Paragraph (4) of section 401(k) of the Internal 
Revenue Code of 1986 (relating to cash or deferred arrangements), as 
amended by section 1, is amended by adding at the end the following new 
subparagraph:
                    ``(E) Annual, detailed investment reports 
                required.--
                            ``(i) In general.--A cash or deferred 
                        arrangement of any employer with less than 100 
                        participants shall not be treated as a 
                        qualified cash or deferred arrangement unless 
                        the plan of which it is a part provides to each 
                        participant an annual investment report 
                        detailing the name of each investment acquired 
                        during such plan year and the date and cost of 
                        such acquisition, the name of each investment 
                        sold during such year and the date and net 
                        proceeds of such sale, and the overall rate of 
                        return for all investments for such year.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply with respect to any participant described 
                        in section 404(c) of the Employee Retirement 
                        Income Security Act of 1974 (29 U.S.C. 
                        1104(c)).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after the date of the enactment of this 
Act.
                                 <all>
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