II 

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. 

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. 

4 This Act may be cited as the ‘‘Portable Retirement 

5 and Investment Account Act of 2021’’ or the ‘‘PRIA Act 

6 of 2021’’. 

7 SEC. 2. PORTABLE RETIREMENT AND INVESTMENT BOARD. 

8 (a) ESTABLISHMENT.—There is established a Port9 able Retirement and Investment Board (referred to in this 


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1 Act as the ‘‘Board’’) to be headed by a Director (referred 

2 to in this Act as the ‘‘Director’’). 

3 (b) MEMBERSHIP.— 

4 (1) IN GENERAL.—The Board shall consist of— 

5 (A) 3 members appointed by the Secretary 

6 of the Treasury; 

7 (B) 3 members appointed by the Secretary 

8 of Labor; 

9 (C) 2 members appointed by the Pension 

10 Benefit Guaranty Corporation; and 

11 (D) 1 member appointed by the Director of 

12 the Bureau of Consumer Financial Protection. 

13 (2) DEADLINE FOR APPOINTMENT.—The ap14 pointments described under paragraph (1) shall be 

15 made not later than 1 year after the date of the en16 actment of this Act. 

17 (3) LIMITATION.—In making appointments 

18 under paragraph (1), the officials making such ap19 pointments shall coordinate to ensure that not more 

20 than 5 members of the same political party may 

21 serve on the Board at the same time. 

22 (4) TERMS OF OFFICE.—Each member of the 

23 Board shall hold office for a term of 5 years and 

24 shall continue in office until such member’s suc25 cessor is appointed in the same manner as the origiVerDate Sep 11 2014 21:13 Sep 29, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2870.IS S2870

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1 nal appointment was made. The terms of office of 

2 the members of the Board first taking office after 

3 the date of the enactment of this Act shall expire as 

4 follows: 1 at the end of 1 year, 2 at the end of 2 

5 years, 2 at the end of 3 years, 2 at the end of 4 

6 years, and 2 at the end of 5 years. 

7 (5) VACANCIES.—Each member of the Board 

8 shall continue in office until a successor is appointed 

9 in the same manner as the original appointment was 

10 made. Any vacancy on the Board shall be filled in 

11 the same manner as the initial appointment was 

12 made, and members of the Board appointed to fill 

13 vacancies shall be appointed for the remainder of 

14 such term. 

15 (c) DIRECTOR.— 

16 (1) IN GENERAL.—The Director shall be se17 lected by the President from among the members of 

18 the Board. 

19 (2) AUTHORITY TO ISSUE REGULATIONS.—The 

20 Director is authorized to issue such regulations or 

21 other guidance as the Director determines are nec22 essary to carry out the purposes of this Act. 


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1 SEC. 3. CONTRACTS TO PROVIDE PORTABLE RETIREMENT 

2 AND INVESTMENT ACCOUNTS. 

3 (a) IN GENERAL.—Not later than 1 year after the 

4 date of the enactment of this Act, the Director shall estab5 lish a program under which— 

6 (1) the Director shall invest the assets in each 

7 PRIA Basic Account established under section 4 in 

8 a lifecycle fund described in subsection (c); and 

9 (2) the Director shall group PRIA Basic Ac10 counts so established into classes based on the year 

11 the beneficiary of each such account will attain age 

12 65. 

13 Once a class of PRIA Basic Accounts contains, in the ag14 gregate, enough assets so that the establishment of a dedi15 cated target date fund for such class would be cost effec16 tive, the Director shall award (on a rotating basis) to an 

17 entity certified under subsection (b) a contract to act as 

18 trustee of all such accounts and to invest such accounts 

19 in a lifecycle fund provided by the trustee as described 

20 in subsection (c). 

21 (b) CERTIFICATION OF TRUSTEES.—The Director 

22 may not award a contract to an entity under subsection 

23 (a) unless the Director has certified such entity under this 

24 subsection. The Director shall establish certification cri25 teria which shall include the following: 


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1 (1) Expertise, including the professional quali2 fications, business model, experience, and training of 

3 the trustee and any service providers that the trust4 ee intends to use. 

5 (2) Registration, licensing, and financial sound6 ness demonstrating that participant funds would be 

7 handled by a regulated financial entity. 

8 (3) Reputation and customer service, including 

9 records of comments or complaints from employers 

10 and participants, timely consideration and resolution 

11 of complaints filed, and independent rating or ac12 creditations. 

13 (c) LIFECYCLE FUND.—A lifecycle fund described in 

14 this subsection is a fund that— 

15 (1) is comprised of an appropriate mix of index 

16 funds; 

17 (2) is automatically adjusted over time during 

18 the time horizon of the fund; 

19 (3) strikes a balance between expected risk and 

20 return over the time horizon of the fund; and 

21 (4) has an initial target retirement date that is 

22 consistent with retirement at age 65. 

23 (d) FIDUCIARY RESPONSIBILITY.—A trustee of a 

24 portable retirement and investment account shall act as 

25 a fiduciary to the account holder and shall discharge his 


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1 duties with respect to the account in the sole interest of 

2 the account holder under rules similar to those applicable 

3 to an ERISA fiduciary under section 404 of the Employee 

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

5 1104). 

6 (e) CONTRACTS.— 

7 (1) NUMBER OF CONTRACTS AWARDED, ETC.— 

8 The Director shall enter into contracts with 10 enti9 ties at any given time to provide services under sub10 section (a), and shall not award a contract to any 

11 entity which has an existing contract under such 

12 subsection. Each such contract shall have a duration 

13 of 5 years. 

14 (2) CONSIDERATION.—In awarding contracts to 

15 entities under subsection (a), the Director shall con16 sider— 

17 (A) the specific composition of the lifecycle 

18 funds provided by such trustee; 

19 (B) the services to account holders offered 

20 by such trustee, including available investment 

21 advice; 

22 (C) the fees charged by such trustee; and 

23 (D) the importance of maintaining a diver24 sity of trustees. 


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1 SEC. 4. ESTABLISHMENT; CONTRIBUTIONS. 

2 (a) ESTABLISHMENT.— 

3 (1) PORTABLE RETIREMENT AND INVESTMENT

4 ACCOUNT FUND.—There is established in the Treas5 ury the Portable Retirement and Investment Ac6 count Fund (in this Act referred to as the ‘‘Fund’’). 

7 The Board shall, to the greatest extent practicable 

8 and consistent with the requirements of this Act, 

9 manage the Fund in the same manner as the Thrift 

10 Savings Fund established under section 8437 of title 

11 5, United States Code. 

12 (2) ACCOUNTS.—For each individual for whom 

13 a notification is made under clause (iv) of section 

14 205(c)(2)(B) of the Social Security Act (42 U.S.C. 

15 405(c)(2)(B)), as added by paragraph (3), or whose 

16 name is included on the list submitted under para17 graph (4), not later than 90 days after such notifica18 tion or submission, the Director shall establish, with 

19 such individual as the sole beneficiary, a portable re20 tirement and investment account (in this Act re21 ferred to as a ‘‘PRIA Basic Account’’) within the 

22 Fund. 

23 (3) NOTIFICATION OF ISSUANCE OF SOCIAL SE24 CURITY ACCOUNT NUMBER.— 

25 (A) IN GENERAL.—Section 205(c)(2)(B) of 

26 the Social Security Act (42 U.S.C. 


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1 405(c)(2)(B)) is amended by adding at the end 

2 the following: 

3 ‘‘(iv) Not later than 60 days after assigning a social 

4 security account number to an individual, the Commis5 sioner of Social Security shall notify the Director of the 

6 Portable Retirement and Investment Account Board of 

7 such assignment.’’. 

8 (B) EFFECTIVE DATE.—The amendment 

9 made by subparagraph (A) shall apply with re10 spect to social security account numbers as11 signed after a certain date, to be designated by 

12 the Director, occurring not later than 3 years 

13 after the date of the enactment of this Act. 

14 (4) TRANSITION.—Not later than the date des15 ignated pursuant to paragraph (3)(B), occurring not 

16 later than 3 years after the date of the enactment 

17 of this Act, the Commissioner of Social Security 

18 shall submit to the Director a list of the name of 

19 each living individual who has been assigned a social 

20 security account number. 

21 (b) FEDERAL CONTRIBUTIONS.— 

22 (1) IN GENERAL.—In the case of an individual 

23 for whom a notification is made under clause (iv) of 

24 section 205(c)(2)(B) of the Social Security Act (42 

25 U.S.C. 405(c)(2)(B)), as added by subsection (a)(3), 


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1 who is a child of a taxpayer who received a credit 

2 against tax under section 32 of the Internal Revenue 

3 Code of 1986 for the most recent taxable year end4 ing before the date of the notification under such 

5 subsection, the Director shall deposit into the port6 able retirement and investment account (without re7 gard to whether such account is a PRIA Basic Ac8 count or a PRIA Choice Account described in sub9 section (f)) of the individual an amount determined 

10 under paragraph (2). 

11 (2) AMOUNT.—Subject to paragraph (3), the 

12 amount determined under this paragraph is— 

13 (A) in the case of a taxpayer eligible for 

14 the maximum credit applicable to such indi15 vidual under section 32 of the Internal Revenue 

16 Code of 1986, the applicable contribution 

17 amount; and 

18 (B) in any other case, a lower amount to 

19 be determined under regulations issued by the 

20 Secretary of the Treasury to reflect a propor21 tional reduction of such amount as the credit 

22 under such section decreases. 

23 (3) APPLICABLE CONTRIBUTION AMOUNT.— 


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

2 subsection, the term ‘‘applicable contribution 

3 amount’’ means $500. 

4 (B) INFLATION ADJUSTMENT.—In the case 

5 of any taxable year beginning in a calendar 

6 year after 2021, the dollar amount in subpara7 graph (A) shall be increased by an amount 

8 equal to— 

9 (i) such dollar amount, multiplied by 

10 (ii) the cost-of-living adjustment de11 termined under section 1(f)(3) of the In12 ternal Revenue Code of 1986 for the cal13 endar year in which the taxable year be14 gins, by substituting ‘‘calendar year 2020’’ 

15 for ‘‘calendar year 2016’’ in subparagraph 

16 (A)(ii) thereof. 

17 Any increase determined under the preceding 

18 sentence shall be rounded to the nearest mul19 tiple of $10. 

20 (4) CONTRIBUTION FOR TRANSFER.—If a bene21 ficiary of a PRIA Basic Account (or, in the case of 

22 a beneficiary who is under 18 years of age, the par23 ent or guardian of the beneficiary) makes the elec24 tion under subsection (f), the Director shall provide 

25 for a $50 deposit if the beneficiary completes a fiVerDate Sep 11 2014 21:13 Sep 29, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2870.IS S2870

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1 nancial literacy training, as determined appropriate 

2 by the Director. 

3 (c) PERSONAL CONTRIBUTIONS.— 

4 (1) IN GENERAL.—Except in the case of an in5 dividual who is an active participant (as defined in 

6 section 219(g)(5) of the Internal Revenue Code of 

7 1986) for any part of a plan year ending with or 

8 within the calendar year, the beneficiary of a PRIA 

9 Basic or PRIA Choice Account may contribute addi10 tional funds for deposit into such account during the 

11 calendar year. 

12 (2) DIRECT DEPOSIT.—Any employer who per13 mits wages to be paid to an employee described in 

14 paragraph (5) by electronic funds transfer shall per15 mit such employee to elect to deposit, by means of 

16 electronic funds transfer, a portion of such wages 

17 specified by the employee into the employee’s port18 able retirement and investment account. 

19 (3) AUTOMATIC CONTRIBUTION ARRANGE20 MENT.—Any employer may provide that an employee 

21 described in paragraph (5) is treated as having 

22 elected to have the employer make contributions in 

23 an amount equal to a uniform percentage of com24 pensation disclosed in advance to the employee until 

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1 tributions made (or specifically elects to have such 

2 contributions made at a different percentage). Such 

3 uniform percentage of compensation may automati4 cally increase according to a schedule provided by 

5 the employer. 

6 (4) SUPERSEDURE.—Paragraph (3) shall super7 sede any law of any State (within the meaning of 

8 section 514(c)(1) of title 29) which would directly or 

9 indirectly prohibit an employer from adopting an ar10 rangement described in paragraph (3). The Director 

11 may prescribe regulations which would establish 

12 minimum standards that such an arrangement 

13 would be required to satisfy in order for this para14 graph to apply in the case of such arrangement. 

15 (5) EMPLOYEE DESCRIBED.—An employee de16 scribed in this paragraph is an individual— 

17 (A) whose employer does not maintain a 

18 qualified retirement plan (as defined in section 

19 4974(c) of the Internal Revenue Code of 1986); 

20 (B) whose employment consists of work 

21 (whether or not as an employee) through mobile 

22 platforms; or 

23 (C) who is not eligible to participate in the 

24 qualified retirement plan (as so defined) of the 

25 employee’s employer. 


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1 (6) CONTRIBUTION LIMIT.—The aggregate 

2 amount of contributions under this subsection for 

3 any taxable year to the individual’s PRIA Basis or 

4 PRIA Choice Account shall not exceed the amount 

5 allowable under section 219(b) of the Internal Rev6 enue Code of 1986 with respect to the individual for 

7 the taxable year. 

8 (d) EMPLOYER AND MOBILE PLATFORM DUTIES AND

9 RESPONSIBILITIES.— 

10 (1) CONTRIBUTIONS.—The employer of a bene11 ficiary of a PRIA Basic or PRIA Choice Account 

12 may at any time contribute additional funds for de13 posit into such account, to the extent the total of 

14 such contributions under this subsection and sub15 section (c) does not exceed the limitation in effect 

16 with respect to the individual under subsection 

17 (c)(6) for the taxable year. 

18 (2) MAINTENANCE OF DIRECT DEPOSIT MECHA19 NISM.—Any employer that does not maintain a 

20 qualified retirement plan (as defined in section 

21 4974(c) of the Internal Revenue Code of 1986) or 

22 maintains such a plan eligibility for which is re23 stricted to only certain employees shall provide a 

24 mechanism for the direct deposit of funds as deVerDate Sep 11 2014 21:13 Sep 29, 2021 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S2870.IS S2870

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1 scribed in subsection (c)(2) for each employee of the 

2 employer. 

3 (3) MOBILE PLATFORMS.—Any mobile platform 

4 through which individuals perform work and receive 

5 compensation (whether or not as an employee) shall 

6 provide a mechanism for the direct deposit of funds, 

7 by means of electronic funds transfer, identified by 

8 the individual into the individual’s portable retire9 ment and investment account. 

10 (e) REPORTING REQUIREMENTS FOR EMPLOYERS

11 MAKING CONTRIBUTIONS.—In the case of any employer 

12 that makes contributions to a PRIA Basic or PRIA Choice 

13 Account on behalf of the employer’s employees, rules simi14 lar to the rules applicable to simple retirement accounts 

15 under section 2(h) of the Employee Retirement and In16 come Security Act of 1974 (29 U.S.C. 1001(h)) shall 

17 apply. 

18 (f) TRANSFER OPTION.— 

19 (1) IN GENERAL.—A beneficiary of a PRIA 

20 Basic Account (or, in the case of a beneficiary who 

21 is under 18 years of age, the parent or guardian of 

22 the beneficiary) may elect at any time to transfer 

23 the entire amount in such portable retirement and 

24 investment account to any PRIA Choice Account (as 

25 defined in section 223A of the Internal Revenue 


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1 Code of 1986) with such beneficiary as the sole ben2 eficiary. Such account shall be held by a custodial 

3 entity such as a bank, credit union, trust company 

4 or an entity that is licensed and regulated by the 

5 Secretary pursuant to requirements consistent with 

6 section 1.408–2e of title 26, Code of Federal Regu7 lations. Investments in such accounts are not subject 

8 to the limitation to lifecycle funds described in sec9 tion 3. 

10 (2) NOTIFICATIONS.— 

11 (A) STATEMENTS.—The Director shall en12 sure that account statements are delivered to 

13 the beneficiary of a portable retirement and in14 vestment account by electronic delivery to the 

15 extent practicable. 

16 (B) NOTICE OF TRANSFER OPTION.— 

17 When the amount in a portable retirement and 

18 investment account first exceeds $15,000 and 

19 when the beneficiary of the account attains the 

20 age of 18, the Director shall notify the bene21 ficiary of the account of the option under para22 graph (3) to transfer the entire amount in such 

23 account to an individual retirement account. 

24 (3) IRA ROLLOVER.—A beneficiary of a PRIA 

25 Basic or a PRIA Choice Account (or, in the case of 


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1 a beneficiary who is under 18 years of age, the par2 ent or guardian of the beneficiary) may elect at any 

3 time to transfer the entire amount in such account 

4 to an individual retirement account (as defined in 

5 section 408 of the Internal Revenue Code of 1986) 

6 with such beneficiary as the sole beneficiary. For 

7 purposes of such Code, such a rollover shall be treat8 ed as described in section 408(d)(3) of such Code. 

9 SEC. 5. OPTIONAL TREATMENT OF CONTRIBUTIONS AS 

10 ROTH CONTRIBUTIONS. 

11 (a) IN GENERAL.—The Fund (or custodial entity in 

12 the case of a PRIA Choice Account) shall allow an indi13 vidual to designate all or a portion of any contributions 

14 otherwise allowed to be made to a PRIA Basic or PRIA 

15 Choice Account as Roth contributions. Any contribution 

16 so designated shall be treated as a contribution to a PRIA 

17 Basic or PRIA Choice Account, as the case may be, for 

18 purposes of this Act and the Internal Revenue Code of 

19 1986, except that no deduction shall be allowed with re20 spect to any such contribution. 

21 (b) SEPARATE ACCOUNTING.—The Fund (or such 

22 custodial entity) shall provide for separate accounts for 

23 amounts designated as Roth contributions under sub24 section (a) and earnings attributable thereto. 


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1 (c) DESIGNATION LIMIT.—The amount of contribu2 tions which an individual may designate under subsection 

3 (a) shall not exceed the excess (if any) of— 

4 (1) the maximum amount of contributions al5 lowed for such individual for the taxable year under 

6 section 4(c)(6); over 

7 (2) the aggregate amount of contributions of 

8 the individual for the taxable year which the indi9 vidual does not designate under subsection (a). 

10 (d) ROTH IRA RULES APPLICABLE.—Except to the 

11 extent otherwise provided in this section, rules similar to 

12 the rules of section 408A of the Internal Revenue Code 

13 of 1986 shall apply with respect to amounts designated 

14 under subsection (a) (and the earnings attributable there15 to). 

16 SEC. 6. DATA PORTAL. 

17 (a) IN GENERAL.—The Director shall establish a 

18 standardized portal for the Fund (or each custodial entity 

19 in the case of PRIA Choice Account), and any plan admin20 istrator (as defined in section 414(g) of the Internal Rev21 enue Code of 1986) of a plan to which section 6058 of 

22 the Internal Revenue Code of 1986 applies, to submit the 

23 reports required under subsection (b), the back end of 

24 which is developed and standardized to ensure ease of data 

25 upload by plan sponsors. 


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1 (b) REPORTS REQUIRED.—Each such plan adminis2 trator, and the Fund or each such custodial entity in the 

3 case of a PRIA Basic or PRIA Choice Account, shall re4 port on a quarterly basis to the Director, by uploading 

5 such report to the portal established under subsection (a). 

6 Each such report shall include— 

7 (1) information on the assets held by such ac8 count as of market close the day before the last day 

9 of the quarter; 

10 (2) the balance of the account on the first and 

11 last day of the quarter; 

12 (3) the gross of contributions, withdrawals, 

13 transfers, and realized and unrealized gains and 

14 losses (reported separately by fund) with respect to 

15 the account; 

16 (4) expense ratios, reported separately by fund; 

17 (5) the rate of return for the preceding 12 

18 months, reported both overall and separately by 

19 fund; and 

20 (6) the lifetime income stream equivalent of the 

21 total benefits accrued (as defined in section 

22 105(a)(2)(D)(i)(II) of the Employee Retirement In23 come Security Act of 1974 (29 U.S.C. 

24 1025(a)(2)(D)(i)(II))) in the account as of the last 

25 day of the quarter. 


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1 (c) FAILURE TO PROVIDE REPORT.—Any failure to 

2 provide the report pursuant to subsection (b) shall be 

3 treated by the Secretary of the Treasury as a failure to 

4 file a return or statement required under section 6058 of 

5 the Internal Revenue Code of 1986. 

6 (d) REGULATIONS.—The Director may prescribe 

7 such regulations as may be necessary or appropriate to 

8 carry out the purposes of this section. 

9 (e) APPROPRIATIONS.—There is appropriated to the 

10 Director, out of any funds in the Treasury not otherwise 

11 appropriated, such funds as are necessary to carry out the 

12 requirements of this section, including for the development 

13 and ongoing hosting costs of the portal established under 

14 subsection (a). 

15 (f) RULE OF CONSTRUCTION.—Compliance with the 

16 provisions of this section requiring plan sponsors to dis17 close or share information shall not constitute a violation 

18 of the provisions of Gramm-Leach-Bliley Act or the Em19 ployee Retirement Income Security Act of 1974. 

20 SEC. 7. TAX TREATMENT OF PORTABLE RETIREMENT AND 

21 INVESTMENT ACCOUNTS. 

22 (a) IN GENERAL.—Section 7701 of the Internal Rev23 enue Code of 1986 is amended by redesignating subsection 

24 (p) as subsection (q) and by inserting after subsection (o) 

25 the following new subsection: 


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1 ‘‘(p) TAX TREATMENT OF PORTABLE RETIREMENT

2 AND INVESTMENT ACCOUNTS.—For purposes of this 

3 title— 

4 ‘‘(1) IN GENERAL.—Any portable retirement 

5 and investment account shall be treated as an indi6 vidual retirement plan, and, except to the extent pro7 vided in section 223A or the Portable Retirement 

8 and Investment Account Act of 2021, any contribu9 tion to, or distribution from, such a portable retire10 ment and investment account shall be treated in the 

11 same manner as contributions to, or distributions 

12 from, such a plan. 

13 ‘‘(2) TREATMENT OF ROTH CONTRIBUTIONS.— 

14 Any portable retirement and investment account to 

15 which Roth contributions are made pursuant to sec16 tion 5 of such Act shall be treated as a Roth IRA 

17 with respect to such contributions under rules simi18 lar to the rules of paragraph (1). 

19 ‘‘(3) PORTABLE RETIREMENT AND INVESTMENT

20 ACCOUNT.—The term ‘portable retirement and in21 vestment account’ means— 

22 ‘‘(A) a PRIA Basic Account established 

23 under section 4 of the Portable Retirement and 

24 Investment Account Act of 2021, and 


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1 ‘‘(B) a PRIA Choice Account (as defined 

2 in section 223A(c)).’’. 

3 (b) OTHER RULES RELATING TO PRIA CHOICE AC4 COUNTS.—Part VII of subchapter B of chapter 1 of the 

5 Internal Revenue Code of 1986 is amended by inserting 

6 after section 223 the following new section: 

7 ‘‘SEC. 223A. PRIA CHOICE ACCOUNTS. 

8 ‘‘(a) DEDUCTION ALLOWED.— 

9 ‘‘(1) IN GENERAL.—There shall be allowed as a 

10 deduction for the taxable year an amount equal to 

11 the aggregate amount paid in cash during such tax12 able year to a PRIA Choice Account by the account 

13 beneficiary. 

14 ‘‘(2) CERTAIN RULES TO APPLY.—Rules similar 

15 to section 219(d)(2) (relating to no deduction for 

16 rollovers) shall apply for purposes of this section. 

17 ‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—The 

18 amount allowable as a deduction under subsection (a) to 

19 any individual for any taxable year shall not exceed the 

20 amount allowable under section 219(b) of the Internal 

21 Revenue Code of 1986 with respect to the individual for 

22 the taxable year. 

23 ‘‘(c) PRIA CHOICE ACCOUNT.— 

24 ‘‘(1) IN GENERAL.—For purposes of this title, 

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1 ated or organized in the United States for the exclu2 sive benefit of an individual, but only if the written 

3 governing instrument creating the trust meets the 

4 following requirements: 

5 ‘‘(A) The trustee is a bank (as defined in 

6 section 408(n) of the Internal Revenue Code of 

7 1986) or such other person who demonstrates 

8 to the satisfaction of the Secretary that the 

9 manner in which such other person will admin10 ister the trust will be consistent with the re11 quirements of this section. 

12 ‘‘(B) The amounts in the trust may consist 

13 only of— 

14 ‘‘(i) deposits under section 4(b) of the 

15 Portable Retirement and Investment Ac16 count Act of 2021, 

17 ‘‘(ii) amounts described in subsection 

18 (a)(1), 

19 ‘‘(iii) amounts deposited by an em20 ployer of the account beneficiary, 

21 ‘‘(iv) interest on amounts in such 

22 trust, and 

23 ‘‘(v) proceeds from investment of 

24 amounts in such trust. 


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1 ‘‘(C) Except in the case of a rollover con2 tribution described in subsection (d)(4), no con3 tribution will be accepted unless it is in cash. 

4 ‘‘(D) No contributions in excess of the 

5 amount that is twice the dollar amount in effect 

6 under subsection (b)(1)(A) will be accepted dur7 ing a calendar year. 

8 ‘‘(E) Amounts in the trust will be invested 

9 in not more than 15 total funds, and will be in10 vested in at least 5 total broad market, low-fee 

11 funds, bonds, or lifecycle funds. The remaining 

12 funds may include not more than 5 niche funds 

13 and not more than 5 annuity funds, but all in14 vestments must be made in diversified funds 

15 which represent a prudent investment. 

16 ‘‘(F) No distribution that would bring the 

17 account balance below the amount deposited in 

18 such trust under section 4(b)(1) of the Portable 

19 Retirement and Investment Account Act of 

20 2021 is allowed to an account beneficiary who 

has not attained the age 591 21 ⁄2. 

22 ‘‘(2) PRIA CHOICE ANNUITIES.—Rules similar 

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1 payer purchasing an annuity contract or an endow2 ment contract from a life insurance company. 

3 ‘‘(d) TAX TREATMENT OF ACCOUNTS.— 

4 ‘‘(1) IN GENERAL.—A PRIA Choice Account is 

5 exempt from taxation under this subtitle unless such 

6 account has ceased to be a PRIA Choice Account. 

7 Notwithstanding the preceding sentence, any such 

8 account is subject to the taxes imposed by section 

9 511 (relating to imposition of tax on unrelated busi10 ness income of charitable, etc., organizations). 

11 ‘‘(2) ACCOUNT TERMINATIONS.—Rules similar 

12 to the rules of paragraphs (2) and (4) of section 

13 408(e) shall apply to PRIA Choice Accounts, and 

14 subsection (e)(2) shall not apply to any amount 

15 treated as distributed under such rules. 

16 ‘‘(e) TAX TREATMENT OF DISTRIBUTIONS.—For 

17 rules relating to distributions, see section 7701(p). 

18 ‘‘(f) LOANS TREATED AS DISTRIBUTIONS.—For pur19 poses of this section— 

20 ‘‘(1) IN GENERAL.—If during any taxable year 

21 a participant or beneficiary receives (directly or indi22 rectly) any amount as a loan from a PRIA Choice 

23 Account, such amount shall be treated as having 

24 been received by such individual as a distribution 

25 from such account. 


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1 ‘‘(2) EXCEPTION FOR CERTAIN LOANS.— 

2 ‘‘(A) GENERAL RULE.—Paragraph (1) 

3 shall not apply to any loan to the extent that 

4 such loan (when added to the outstanding bal5 ance of all other loans from such account), does 

6 not exceed the lesser of— 

7 ‘‘(i) $50,000, reduced by the excess (if 

8 any) of— 

9 ‘‘(I) the highest outstanding bal10 ance of loans from the account during 

11 the 1-year period ending on the day 

12 before the date on which such loan 

13 was made, over 

14 ‘‘(II) the outstanding balance of 

15 loans from the plan on the date on 

16 which such loan was made, or 

17 ‘‘(ii) the greater of— 

18 ‘‘(I) one-half of the amount in 

19 the account, or 

20 ‘‘(II) $10,000. 

21 ‘‘(B) REQUIREMENT THAT LOAN BE RE22 PAYABLE WITHIN 5 YEARS.— 

23 ‘‘(i) IN GENERAL.—Subparagraph (A) 

24 shall not apply to any loan unless such 


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1 loan, by its terms, is required to be repaid 

2 within 5 years. 

3 ‘‘(ii) EXCEPTION FOR HOME LOANS.— 

4 Clause (i) shall not apply to any loan used 

5 to acquire any dwelling unit which within 

6 a reasonable time is to be used (deter7 mined at the time the loan is made) as the 

8 principal residence of the participant. 

9 ‘‘(C) REQUIREMENT OF LEVEL AMORTIZA10 TION.—Except as provided in regulations, this 

11 paragraph shall not apply to any loan unless 

12 substantially level amortization of such loan 

13 (with payments not less frequently than quar14 terly) is required over the term of the loan. 

15 ‘‘(g) EMPLOYER DEDUCTIONS.— 

16 ‘‘(1) IN GENERAL.—For deductions related to 

17 employer contributions, see section 162. 

18 ‘‘(2) NONDISCRIMINATION.—Under regulations 

19 prescribed by the Secretary, notwithstanding section 

20 162, no deduction shall be allowed for employer con21 tributions to a PRIA Choice Account on behalf of an 

22 employee who is a highly compensated employee (as 

23 defined in section 414(q)) if the employer contribu24 tions made on behalf of all employees discriminate in 


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1 favor of such employees who are highly compensated 

2 employees. 

3 ‘‘(3) CERTAIN CONTROLLED GROUPS.—All em4 ployees who are treated as employed by a single em5 ployer under subsections (b), (c), and (m) of section 

6 414 shall be treated as employed by a single em7 ployer for purposes of this subsection. 

8 ‘‘(h) INFLATION ADJUSTMENT.— 

9 ‘‘(1) IN GENERAL.—In the case of any taxable 

10 year beginning in a calendar year after 2021, the 

11 dollar amounts under subsection (b) and subsection 

12 (c)(4) shall be increased by an amount equal to— 

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

14 ‘‘(B) the cost-of-living adjustment deter15 mined under section 1(f)(3) for the calendar 

16 year in which the taxable year begins, deter17 mined by substituting ‘calendar year 2020’ for 

18 ‘calendar year 2016’ in subparagraph (A)(ii) 

19 thereof. 

20 ‘‘(2) ROUNDING RULES.—If any amount after 

21 adjustment under paragraph (1) is not a multiple of 

22 $500, such amount shall be rounded to the next 

23 lower multiple of $500. 

24 ‘‘(i) PORTABLE RETIREMENT AND INVESTMENT

25 BOARD.—The Portable Retirement and Investment Board 


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1 established under section 2 of the Portable Retirement 

2 and Investment Account Act of 2021 shall deposit any 

3 contribution to the PRIA Basic Account of an individual 

4 who has made the election under section 4(f)(1) of such 

5 Act into the PRIA Choice Account of the individual. Such 

6 contribution shall be treated as if made directly to such 

7 PRIA Choice Account.’’. 

8 (c) CLERICAL AMENDMENTS.—The table of sections 

9 for chapter 1 is amended by inserting after the item re10 lated to section 223 the following new item: 

‘‘Sec. 223A. PRIA Choice Accounts.’’. 

11 SEC. 8. OPTION TO ROLL OVER. 

12 (a) IN GENERAL.—Any individual who holds an ac13 count described in subsection (c) may elect to roll over 

14 the entire amount in such account into a PRIA Choice 

15 Account (as defined in section 223A of the Internal Rev16 enue Code of 1986). Such rollover shall be treated as a 

17 rollover described in section 223A(e)(4) of the Internal 

18 Revenue Code of 1986. 

19 (b) ORPHANED ACCOUNTS.—The trustee of any ac20 count described in subsection (c) the beneficiary of which 

21 cannot be located or has ceased to exercise control over 

22 the assets of the account may transfer such account to 

23 a PRIA Basic or PRIA Choice Account in the name of 

24 the beneficiary in accordance with regulations issued by 

25 the Secretary of the Treasury. Such a transfer shall be 


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1 treated as a rollover described in section 223A(e)(4) of 

2 the Internal Revenue Code of 1986. 

3 (c) ACCOUNTS DESCRIBED.—This subsection shall 

4 apply to accounts opened or annuity contracts purchased 

5 pursuant to the following sections of the Internal Revenue 

6 Code of 1986: 

7 (1) Section 401(k). 

8 (2) Section 403(b). 

9 (3) Section 457. 

10 (4) Section 409A. 

11 (5) Section 408. 

12 SEC. 9. REGULATIONS. 

13 Not later than 180 days after the date of the enact14 ment of this Act, the Secretary of the Treasury, in coordi15 nation with the Commissioner of Social Security, as deter16 mined necessary by the Secretary, shall issue regulations 

17 to carry out this Act. 

Æ 


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