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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2870 Introduced in Senate (IS)]

<DOC>

117th CONGRESS
  1st Session
                                S. 2870

     To create portable retirement and investment accounts for all 
                   Americans, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2021

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

_______________________________________________________________________

                                 A BILL

 
     To create portable retirement and investment accounts for all 
                   Americans, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Portable Retirement and Investment 
Account Act of 2021'' or the ``PRIA Act of 2021''.

SEC. 2. PORTABLE RETIREMENT AND INVESTMENT BOARD.

    (a) Establishment.--There is established a Portable Retirement and 
Investment Board (referred to in this Act as the ``Board'') to be 
headed by a Director (referred to in this Act as the ``Director'').
    (b) Membership.--
            (1) In general.--The Board shall consist of--
                    (A) 3 members appointed by the Secretary of the 
                Treasury;
                    (B) 3 members appointed by the Secretary of Labor;
                    (C) 2 members appointed by the Pension Benefit 
                Guaranty Corporation; and
                    (D) 1 member appointed by the Director of the 
                Bureau of Consumer Financial Protection.
            (2) Deadline for appointment.--The appointments described 
        under paragraph (1) shall be made not later than 1 year after 
        the date of the enactment of this Act.
            (3) Limitation.--In making appointments under paragraph 
        (1), the officials making such appointments shall coordinate to 
        ensure that not more than 5 members of the same political party 
        may serve on the Board at the same time.
            (4) Terms of office.--Each member of the Board shall hold 
        office for a term of 5 years and shall continue in office until 
        such member's successor is appointed in the same manner as the 
        original appointment was made. The terms of office of the 
        members of the Board first taking office after the date of the 
        enactment of this Act shall expire as follows: 1 at the end of 
        1 year, 2 at the end of 2 years, 2 at the end of 3 years, 2 at 
        the end of 4 years, and 2 at the end of 5 years.
            (5) Vacancies.--Each member of the Board shall continue in 
        office until a successor is appointed in the same manner as the 
        original appointment was made. Any vacancy on the Board shall 
        be filled in the same manner as the initial appointment was 
        made, and members of the Board appointed to fill vacancies 
        shall be appointed for the remainder of such term.
    (c) Director.--
            (1) In general.--The Director shall be selected by the 
        President from among the members of the Board.
            (2) Authority to issue regulations.--The Director is 
        authorized to issue such regulations or other guidance as the 
        Director determines are necessary to carry out the purposes of 
        this Act.

SEC. 3. CONTRACTS TO PROVIDE PORTABLE RETIREMENT AND INVESTMENT 
              ACCOUNTS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Director shall establish a program under 
which--
            (1) the Director shall invest the assets in each PRIA Basic 
        Account established under section 4 in a lifecycle fund 
        described in subsection (c); and
            (2) the Director shall group PRIA Basic Accounts so 
        established into classes based on the year the beneficiary of 
        each such account will attain age 65.
Once a class of PRIA Basic Accounts contains, in the aggregate, enough 
assets so that the establishment of a dedicated target date fund for 
such class would be cost effective, the Director shall award (on a 
rotating basis) to an entity certified under subsection (b) a contract 
to act as trustee of all such accounts and to invest such accounts in a 
lifecycle fund provided by the trustee as described in subsection (c).
    (b) Certification of Trustees.--The Director may not award a 
contract to an entity under subsection (a) unless the Director has 
certified such entity under this subsection. The Director shall 
establish certification criteria which shall include the following:
            (1) Expertise, including the professional qualifications, 
        business model, experience, and training of the trustee and any 
        service providers that the trustee intends to use.
            (2) Registration, licensing, and financial soundness 
        demonstrating that participant funds would be handled by a 
        regulated financial entity.
            (3) Reputation and customer service, including records of 
        comments or complaints from employers and participants, timely 
        consideration and resolution of complaints filed, and 
        independent rating or accreditations.
    (c) Lifecycle Fund.--A lifecycle fund described in this subsection 
is a fund that--
            (1) is comprised of an appropriate mix of index funds;
            (2) is automatically adjusted over time during the time 
        horizon of the fund;
            (3) strikes a balance between expected risk and return over 
        the time horizon of the fund; and
            (4) has an initial target retirement date that is 
        consistent with retirement at age 65.
    (d) Fiduciary Responsibility.--A trustee of a portable retirement 
and investment account shall act as a fiduciary to the account holder 
and shall discharge his duties with respect to the account in the sole 
interest of the account holder under rules similar to those applicable 
to an ERISA fiduciary under section 404 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1104).
    (e) Contracts.--
            (1) Number of contracts awarded, etc.--The Director shall 
        enter into contracts with 10 entities at any given time to 
        provide services under subsection (a), and shall not award a 
        contract to any entity which has an existing contract under 
        such subsection. Each such contract shall have a duration of 5 
        years.
            (2) Consideration.--In awarding contracts to entities under 
        subsection (a), the Director shall consider--
                    (A) the specific composition of the lifecycle funds 
                provided by such trustee;
                    (B) the services to account holders offered by such 
                trustee, including available investment advice;
                    (C) the fees charged by such trustee; and
                    (D) the importance of maintaining a diversity of 
                trustees.

SEC. 4. ESTABLISHMENT; CONTRIBUTIONS.

    (a) Establishment.--
            (1) Portable retirement and investment account fund.--There 
        is established in the Treasury the Portable Retirement and 
        Investment Account Fund (in this Act referred to as the 
        ``Fund''). The Board shall, to the greatest extent practicable 
        and consistent with the requirements of this Act, manage the 
        Fund in the same manner as the Thrift Savings Fund established 
        under section 8437 of title 5, United States Code.
            (2) Accounts.--For each individual for whom a notification 
        is made under clause (iv) of section 205(c)(2)(B) of the Social 
        Security Act (42 U.S.C. 405(c)(2)(B)), as added by paragraph 
        (3), or whose name is included on the list submitted under 
        paragraph (4), not later than 90 days after such notification 
        or submission, the Director shall establish, with such 
        individual as the sole beneficiary, a portable retirement and 
        investment account (in this Act referred to as a ``PRIA Basic 
        Account'') within the Fund.
            (3) Notification of issuance of social security account 
        number.--
                    (A) In general.--Section 205(c)(2)(B) of the Social 
                Security Act (42 U.S.C. 405(c)(2)(B)) is amended by 
                adding at the end the following:
    ``(iv) Not later than 60 days after assigning a social security 
account number to an individual, the Commissioner of Social Security 
shall notify the Director of the Portable Retirement and Investment 
Account Board of such assignment.''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply with respect to social 
                security account numbers assigned after a certain date, 
                to be designated by the Director, occurring not later 
                than 3 years after the date of the enactment of this 
                Act.
            (4) Transition.--Not later than the date designated 
        pursuant to paragraph (3)(B), occurring not later than 3 years 
        after the date of the enactment of this Act, the Commissioner 
        of Social Security shall submit to the Director a list of the 
        name of each living individual who has been assigned a social 
        security account number.
    (b) Federal Contributions.--
            (1) In general.--In the case of an individual for whom a 
        notification is made under clause (iv) of section 205(c)(2)(B) 
        of the Social Security Act (42 U.S.C. 405(c)(2)(B)), as added 
        by subsection (a)(3), who is a child of a taxpayer who received 
        a credit against tax under section 32 of the Internal Revenue 
        Code of 1986 for the most recent taxable year ending before the 
        date of the notification under such subsection, the Director 
        shall deposit into the portable retirement and investment 
        account (without regard to whether such account is a PRIA Basic 
        Account or a PRIA Choice Account described in subsection (f)) 
        of the individual an amount determined under paragraph (2).
            (2) Amount.--Subject to paragraph (3), the amount 
        determined under this paragraph is--
                    (A) in the case of a taxpayer eligible for the 
                maximum credit applicable to such individual under 
                section 32 of the Internal Revenue Code of 1986, the 
                applicable contribution amount; and
                    (B) in any other case, a lower amount to be 
                determined under regulations issued by the Secretary of 
                the Treasury to reflect a proportional reduction of 
                such amount as the credit under such section decreases.
            (3) Applicable contribution amount.--
                    (A) In general.--For purposes of this subsection, 
                the term ``applicable contribution amount'' means $500.
                    (B) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2021, 
                the dollar amount in subparagraph (A) shall be 
                increased by an amount equal to--
                            (i) such dollar amount, multiplied by
                            (ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) of the 
                        Internal Revenue Code of 1986 for the calendar 
                        year in which the taxable year begins, by 
                        substituting ``calendar year 2020'' for 
                        ``calendar year 2016'' in subparagraph (A)(ii) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $10.
            (4) Contribution for transfer.--If a beneficiary of a PRIA 
        Basic Account (or, in the case of a beneficiary who is under 18 
        years of age, the parent or guardian of the beneficiary) makes 
        the election under subsection (f), the Director shall provide 
        for a $50 deposit if the beneficiary completes a financial 
        literacy training, as determined appropriate by the Director.
    (c) Personal Contributions.--
            (1) In general.--Except in the case of an individual who is 
        an active participant (as defined in section 219(g)(5) of the 
        Internal Revenue Code of 1986) for any part of a plan year 
        ending with or within the calendar year, the beneficiary of a 
        PRIA Basic or PRIA Choice Account may contribute additional 
        funds for deposit into such account during the calendar year.
            (2) Direct deposit.--Any employer who permits wages to be 
        paid to an employee described in paragraph (5) by electronic 
        funds transfer shall permit such employee to elect to deposit, 
        by means of electronic funds transfer, a portion of such wages 
        specified by the employee into the employee's portable 
        retirement and investment account.
            (3) Automatic contribution arrangement.--Any employer may 
        provide that an employee described in paragraph (5) is treated 
        as having elected to have the employer make contributions in an 
        amount equal to a uniform percentage of compensation disclosed 
        in advance to the employee until the employee specifically 
        elects not to have such contributions made (or specifically 
        elects to have such contributions made at a different 
        percentage). Such uniform percentage of compensation may 
        automatically increase according to a schedule provided by the 
        employer.
            (4) Supersedure.--Paragraph (3) shall supersede any law of 
        any State (within the meaning of section 514(c)(1) of title 29) 
        which would directly or indirectly prohibit an employer from 
        adopting an arrangement described in paragraph (3). The 
        Director may prescribe regulations which would establish 
        minimum standards that such an arrangement would be required to 
        satisfy in order for this paragraph to apply in the case of 
        such arrangement.
            (5) Employee described.--An employee described in this 
        paragraph is an individual--
                    (A) whose employer does not maintain a qualified 
                retirement plan (as defined in section 4974(c) of the 
                Internal Revenue Code of 1986);
                    (B) whose employment consists of work (whether or 
                not as an employee) through mobile platforms; or
                    (C) who is not eligible to participate in the 
                qualified retirement plan (as so defined) of the 
                employee's employer.
            (6) Contribution limit.--The aggregate amount of 
        contributions under this subsection for any taxable year to the 
        individual's PRIA Basis or PRIA Choice Account shall not exceed 
        the amount allowable under section 219(b) of the Internal 
        Revenue Code of 1986 with respect to the individual for the 
        taxable year.
    (d) Employer and Mobile Platform Duties and Responsibilities.--
            (1) Contributions.--The employer of a beneficiary of a PRIA 
        Basic or PRIA Choice Account may at any time contribute 
        additional funds for deposit into such account, to the extent 
        the total of such contributions under this subsection and 
        subsection (c) does not exceed the limitation in effect with 
        respect to the individual under subsection (c)(6) for the 
        taxable year.
            (2) Maintenance of direct deposit mechanism.--Any employer 
        that does not maintain a qualified retirement plan (as defined 
        in section 4974(c) of the Internal Revenue Code of 1986) or 
        maintains such a plan eligibility for which is restricted to 
        only certain employees shall provide a mechanism for the direct 
        deposit of funds as described in subsection (c)(2) for each 
        employee of the employer.
            (3) Mobile platforms.--Any mobile platform through which 
        individuals perform work and receive compensation (whether or 
        not as an employee) shall provide a mechanism for the direct 
        deposit of funds, by means of electronic funds transfer, 
        identified by the individual into the individual's portable 
        retirement and investment account.
    (e) Reporting Requirements for Employers Making Contributions.--In 
the case of any employer that makes contributions to a PRIA Basic or 
PRIA Choice Account on behalf of the employer's employees, rules 
similar to the rules applicable to simple retirement accounts under 
section 2(h) of the Employee Retirement and Income Security Act of 1974 
(29 U.S.C. 1001(h)) shall apply.
    (f) Transfer Option.--
            (1) In general.--A beneficiary of a PRIA Basic Account (or, 
        in the case of a beneficiary who is under 18 years of age, the 
        parent or guardian of the beneficiary) may elect at any time to 
        transfer the entire amount in such portable retirement and 
        investment account to any PRIA Choice Account (as defined in 
        section 223A of the Internal Revenue Code of 1986) with such 
        beneficiary as the sole beneficiary. Such account shall be held 
        by a custodial entity such as a bank, credit union, trust 
        company or an entity that is licensed and regulated by the 
        Secretary pursuant to requirements consistent with section 
        1.408-2e of title 26, Code of Federal Regulations. Investments 
        in such accounts are not subject to the limitation to lifecycle 
        funds described in section 3.
            (2) Notifications.--
                    (A) Statements.--The Director shall ensure that 
                account statements are delivered to the beneficiary of 
                a portable retirement and investment account by 
                electronic delivery to the extent practicable.
                    (B) Notice of transfer option.--When the amount in 
                a portable retirement and investment account first 
                exceeds $15,000 and when the beneficiary of the account 
                attains the age of 18, the Director shall notify the 
                beneficiary of the account of the option under 
                paragraph (3) to transfer the entire amount in such 
                account to an individual retirement account.
            (3) IRA rollover.--A beneficiary of a PRIA Basic or a PRIA 
        Choice Account (or, in the case of a beneficiary who is under 
        18 years of age, the parent or guardian of the beneficiary) may 
        elect at any time to transfer the entire amount in such account 
        to an individual retirement account (as defined in section 408 
        of the Internal Revenue Code of 1986) with such beneficiary as 
        the sole beneficiary. For purposes of such Code, such a 
        rollover shall be treated as described in section 408(d)(3) of 
        such Code.

SEC. 5. OPTIONAL TREATMENT OF CONTRIBUTIONS AS ROTH CONTRIBUTIONS.

    (a) In General.--The Fund (or custodial entity in the case of a 
PRIA Choice Account) shall allow an individual to designate all or a 
portion of any contributions otherwise allowed to be made to a PRIA 
Basic or PRIA Choice Account as Roth contributions. Any contribution so 
designated shall be treated as a contribution to a PRIA Basic or PRIA 
Choice Account, as the case may be, for purposes of this Act and the 
Internal Revenue Code of 1986, except that no deduction shall be 
allowed with respect to any such contribution.
    (b) Separate Accounting.--The Fund (or such custodial entity) shall 
provide for separate accounts for amounts designated as Roth 
contributions under subsection (a) and earnings attributable thereto.
    (c) Designation Limit.--The amount of contributions which an 
individual may designate under subsection (a) shall not exceed the 
excess (if any) of--
            (1) the maximum amount of contributions allowed for such 
        individual for the taxable year under section 4(c)(6); over
            (2) the aggregate amount of contributions of the individual 
        for the taxable year which the individual does not designate 
        under subsection (a).
    (d) Roth IRA Rules Applicable.--Except to the extent otherwise 
provided in this section, rules similar to the rules of section 408A of 
the Internal Revenue Code of 1986 shall apply with respect to amounts 
designated under subsection (a) (and the earnings attributable 
thereto).

SEC. 6. DATA PORTAL.

    (a) In General.--The Director shall establish a standardized portal 
for the Fund (or each custodial entity in the case of PRIA Choice 
Account), and any plan administrator (as defined in section 414(g) of 
the Internal Revenue Code of 1986) of a plan to which section 6058 of 
the Internal Revenue Code of 1986 applies, to submit the reports 
required under subsection (b), the back end of which is developed and 
standardized to ensure ease of data upload by plan sponsors.
    (b) Reports Required.--Each such plan administrator, and the Fund 
or each such custodial entity in the case of a PRIA Basic or PRIA 
Choice Account, shall report on a quarterly basis to the Director, by 
uploading such report to the portal established under subsection (a). 
Each such report shall include--
            (1) information on the assets held by such account as of 
        market close the day before the last day of the quarter;
            (2) the balance of the account on the first and last day of 
        the quarter;
            (3) the gross of contributions, withdrawals, transfers, and 
        realized and unrealized gains and losses (reported separately 
        by fund) with respect to the account;
            (4) expense ratios, reported separately by fund;
            (5) the rate of return for the preceding 12 months, 
        reported both overall and separately by fund; and
            (6) the lifetime income stream equivalent of the total 
        benefits accrued (as defined in section 105(a)(2)(D)(i)(II) of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1025(a)(2)(D)(i)(II))) in the account as of the last day of the 
        quarter.
    (c) Failure To Provide Report.--Any failure to provide the report 
pursuant to subsection (b) shall be treated by the Secretary of the 
Treasury as a failure to file a return or statement required under 
section 6058 of the Internal Revenue Code of 1986.
    (d) Regulations.--The Director may prescribe such regulations as 
may be necessary or appropriate to carry out the purposes of this 
section.
    (e) Appropriations.--There is appropriated to the Director, out of 
any funds in the Treasury not otherwise appropriated, such funds as are 
necessary to carry out the requirements of this section, including for 
the development and ongoing hosting costs of the portal established 
under subsection (a).
    (f) Rule of Construction.--Compliance with the provisions of this 
section requiring plan sponsors to disclose or share information shall 
not constitute a violation of the provisions of Gramm-Leach-Bliley Act 
or the Employee Retirement Income Security Act of 1974.

SEC. 7. TAX TREATMENT OF PORTABLE RETIREMENT AND INVESTMENT ACCOUNTS.

    (a) In General.--Section 7701 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (p) as subsection (q) and by 
inserting after subsection (o) the following new subsection:
    ``(p) Tax Treatment of Portable Retirement and Investment 
Accounts.--For purposes of this title--
            ``(1) In general.--Any portable retirement and investment 
        account shall be treated as an individual retirement plan, and, 
        except to the extent provided in section 223A or the Portable 
        Retirement and Investment Account Act of 2021, any contribution 
        to, or distribution from, such a portable retirement and 
        investment account shall be treated in the same manner as 
        contributions to, or distributions from, such a plan.
            ``(2) Treatment of roth contributions.--Any portable 
        retirement and investment account to which Roth contributions 
        are made pursuant to section 5 of such Act shall be treated as 
        a Roth IRA with respect to such contributions under rules 
        similar to the rules of paragraph (1).
            ``(3) Portable retirement and investment account.--The term 
        `portable retirement and investment account' means--
                    ``(A) a PRIA Basic Account established under 
                section 4 of the Portable Retirement and Investment 
                Account Act of 2021, and
                    ``(B) a PRIA Choice Account (as defined in section 
                223A(c)).''.
    (b) Other Rules Relating to PRIA Choice Accounts.--Part VII of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after section 223 the following new section:

``SEC. 223A. PRIA CHOICE ACCOUNTS.

    ``(a) Deduction Allowed.--
            ``(1) In general.--There shall be allowed as a deduction 
        for the taxable year an amount equal to the aggregate amount 
        paid in cash during such taxable year to a PRIA Choice Account 
        by the account beneficiary.
            ``(2) Certain rules to apply.--Rules similar to section 
        219(d)(2) (relating to no deduction for rollovers) shall apply 
        for purposes of this section.
    ``(b) Maximum Amount of Deduction.--The amount allowable as a 
deduction under subsection (a) to any individual for any taxable year 
shall not exceed the amount allowable under section 219(b) of the 
Internal Revenue Code of 1986 with respect to the individual for the 
taxable year.
    ``(c) PRIA Choice Account.--
            ``(1) In general.--For purposes of this title, the term 
        `PRIA Choice Account' means a trust created or organized in the 
        United States for the exclusive benefit of an individual, but 
        only if the written governing instrument creating the trust 
        meets the following requirements:
                    ``(A) The trustee is a bank (as defined in section 
                408(n) of the Internal Revenue Code of 1986) or such 
                other person who demonstrates to the satisfaction of 
                the Secretary that the manner in which such other 
                person will administer the trust will be consistent 
                with the requirements of this section.
                    ``(B) The amounts in the trust may consist only 
                of--
                            ``(i) deposits under section 4(b) of the 
                        Portable Retirement and Investment Account Act 
                        of 2021,
                            ``(ii) amounts described in subsection 
                        (a)(1),
                            ``(iii) amounts deposited by an employer of 
                        the account beneficiary,
                            ``(iv) interest on amounts in such trust, 
                        and
                            ``(v) proceeds from investment of amounts 
                        in such trust.
                    ``(C) Except in the case of a rollover contribution 
                described in subsection (d)(4), no contribution will be 
                accepted unless it is in cash.
                    ``(D) No contributions in excess of the amount that 
                is twice the dollar amount in effect under subsection 
                (b)(1)(A) will be accepted during a calendar year.
                    ``(E) Amounts in the trust will be invested in not 
                more than 15 total funds, and will be invested in at 
                least 5 total broad market, low-fee funds, bonds, or 
                lifecycle funds. The remaining funds may include not 
                more than 5 niche funds and not more than 5 annuity 
                funds, but all investments must be made in diversified 
                funds which represent a prudent investment.
                    ``(F) No distribution that would bring the account 
                balance below the amount deposited in such trust under 
                section 4(b)(1) of the Portable Retirement and 
                Investment Account Act of 2021 is allowed to an account 
                beneficiary who has not attained the age 59\1/2\.
            ``(2) PRIA choice annuities.--Rules similar to the rules of 
        section 408(b) shall apply with respect to PRIA Choice Accounts 
        in the case of a taxpayer purchasing an annuity contract or an 
        endowment contract from a life insurance company.
    ``(d) Tax Treatment of Accounts.--
            ``(1) In general.--A PRIA Choice Account is exempt from 
        taxation under this subtitle unless such account has ceased to 
        be a PRIA Choice Account. Notwithstanding the preceding 
        sentence, any such account is subject to the taxes imposed by 
        section 511 (relating to imposition of tax on unrelated 
        business income of charitable, etc., organizations).
            ``(2) Account terminations.--Rules similar to the rules of 
        paragraphs (2) and (4) of section 408(e) shall apply to PRIA 
        Choice Accounts, and subsection (e)(2) shall not apply to any 
        amount treated as distributed under such rules.
    ``(e) Tax Treatment of Distributions.--For rules relating to 
distributions, see section 7701(p).
    ``(f) Loans Treated as Distributions.--For purposes of this 
section--
            ``(1) In general.--If during any taxable year a participant 
        or beneficiary receives (directly or indirectly) any amount as 
        a loan from a PRIA Choice Account, such amount shall be treated 
        as having been received by such individual as a distribution 
        from such account.
            ``(2) Exception for certain loans.--
                    ``(A) General rule.--Paragraph (1) shall not apply 
                to any loan to the extent that such loan (when added to 
                the outstanding balance of all other loans from such 
                account), does not exceed the lesser of--
                            ``(i) $50,000, reduced by the excess (if 
                        any) of--
                                    ``(I) the highest outstanding 
                                balance of loans from the account 
                                during the 1-year period ending on the 
                                day before the date on which such loan 
                                was made, over
                                    ``(II) the outstanding balance of 
                                loans from the plan on the date on 
                                which such loan was made, or
                            ``(ii) the greater of--
                                    ``(I) one-half of the amount in the 
                                account, or
                                    ``(II) $10,000.
                    ``(B) Requirement that loan be repayable within 5 
                years.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply to any loan unless such loan, by its 
                        terms, is required to be repaid within 5 years.
                            ``(ii) Exception for home loans.--Clause 
                        (i) shall not apply to any loan used to acquire 
                        any dwelling unit which within a reasonable 
                        time is to be used (determined at the time the 
                        loan is made) as the principal residence of the 
                        participant.
                    ``(C) Requirement of level amortization.--Except as 
                provided in regulations, this paragraph shall not apply 
                to any loan unless substantially level amortization of 
                such loan (with payments not less frequently than 
                quarterly) is required over the term of the loan.
    ``(g) Employer Deductions.--
            ``(1) In general.--For deductions related to employer 
        contributions, see section 162.
            ``(2) Nondiscrimination.--Under regulations prescribed by 
        the Secretary, notwithstanding section 162, no deduction shall 
        be allowed for employer contributions to a PRIA Choice Account 
        on behalf of an employee who is a highly compensated employee 
        (as defined in section 414(q)) if the employer contributions 
        made on behalf of all employees discriminate in favor of such 
        employees who are highly compensated employees.
            ``(3) Certain controlled groups.--All employees who are 
        treated as employed by a single employer under subsections (b), 
        (c), and (m) of section 414 shall be treated as employed by a 
        single employer for purposes of this subsection.
    ``(h) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2021, the dollar amounts 
        under subsection (b) and subsection (c)(4) shall be increased 
        by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2020' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
            ``(2) Rounding rules.--If any amount after adjustment under 
        paragraph (1) is not a multiple of $500, such amount shall be 
        rounded to the next lower multiple of $500.
    ``(i) Portable Retirement and Investment Board.--The Portable 
Retirement and Investment Board established under section 2 of the 
Portable Retirement and Investment Account Act of 2021 shall deposit 
any contribution to the PRIA Basic Account of an individual who has 
made the election under section 4(f)(1) of such Act into the PRIA 
Choice Account of the individual. Such contribution shall be treated as 
if made directly to such PRIA Choice Account.''.
    (c) Clerical Amendments.--The table of sections for chapter 1 is 
amended by inserting after the item related to section 223 the 
following new item:

``Sec. 223A. PRIA Choice Accounts.''.

SEC. 8. OPTION TO ROLL OVER.

    (a) In General.--Any individual who holds an account described in 
subsection (c) may elect to roll over the entire amount in such account 
into a PRIA Choice Account (as defined in section 223A of the Internal 
Revenue Code of 1986). Such rollover shall be treated as a rollover 
described in section 223A(e)(4) of the Internal Revenue Code of 1986.
    (b) Orphaned Accounts.--The trustee of any account described in 
subsection (c) the beneficiary of which cannot be located or has ceased 
to exercise control over the assets of the account may transfer such 
account to a PRIA Basic or PRIA Choice Account in the name of the 
beneficiary in accordance with regulations issued by the Secretary of 
the Treasury. Such a transfer shall be treated as a rollover described 
in section 223A(e)(4) of the Internal Revenue Code of 1986.
    (c) Accounts Described.--This subsection shall apply to accounts 
opened or annuity contracts purchased pursuant to the following 
sections of the Internal Revenue Code of 1986:
            (1) Section 401(k).
            (2) Section 403(b).
            (3) Section 457.
            (4) Section 409A.
            (5) Section 408.

SEC. 9. REGULATIONS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Treasury, in coordination with the 
Commissioner of Social Security, as determined necessary by the 
Secretary, shall issue regulations to carry out this Act.
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