I 

114TH CONGRESS 

2D SESSION H. R. 5805 

To increase portability of and access to retirement savings, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 14, 2016 

Mr. MESSER (for himself, Ms. BONAMICI, and Mr. NEAL) introduced the following bill; which was referred to the Committee on Ways and Means, 

and in addition to the Committee on Education and the Workforce, 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 increase portability of and access to retirement savings, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Lost and Found Act of 2016’’. 

6 SEC. 2. RETIREMENT SAVINGS LOST AND FOUND. 

7 (a) ESTABLISHMENT.— 


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1 (1) IN GENERAL.—Not later than 2 years after 

2 the date of the enactment of this Act, the Commis3 sioner of Social Security and the Secretary of the 

4 Treasury in cooperation shall establish an online 

5 mechanism to be known as the ‘‘Retirement Savings 

6 Lost and Found’’, to be managed by the Director of 

7 the Retirement Savings Lost and Found established 

8 under section 3(c) of this Act— 

9 (A) to allow an individual to search for in10 formation that enables the individual to locate 

11 the plan administrator of any plans with re12 spect to which the individual is a participant or 

13 beneficiary, and to provide contact information 

14 for the plan administrator of any plan described 

15 in paragraph (2) with respect to which the indi16 vidual may be entitled to a benefit, 

17 (B) to allow such Director to assist such 

18 an individual in locating any plan of the indi19 vidual, and 

20 (C) to allow such Director to make any 

21 necessary changes to contact information on 

22 record for the plan administrator based on any 

23 changes to the plan due to merger, bankruptcy, 

24 termination, or other causes. 


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1 (2) PLANS DESCRIBED.—A plan described in 

2 this paragraph is a plan to which the vesting stand3 ards of section 203 of part 2 of subtitle B of title 

4 I of the Employee Retirement Income Security Act 

5 of 1974 apply with respect to any plan year to which 

6 the amendments made by subsection (c)(2)(C) apply. 

7 (b) ADMINISTRATION.—The Retirement Savings Lost 

8 and Found established under subsection (a) shall provide 

9 individuals described in subsection (a)(1) only with the 

10 ability to view contact information for the plan adminis11 trator of any plan with respect to which the individual is 

12 a participant or beneficiary, sufficient to allow the indi13 vidual to locate the individual’s account. 

14 (c) CURRENT INFORMATION.— 

15 (1) IN GENERAL.—Paragraph (2) of section 

16 6057(a) of the Internal Revenue Code of 1986 is 

17 amended— 

18 (A) by redesignating subparagraph (E) as 

19 subparagraph (G), 

20 (B) by striking ‘‘and’’ at the end of sub21 paragraph (D), and 

22 (C) by inserting after subparagraph (D) 

23 the following new subparagraphs: 


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1 ‘‘(E) the name and taxpayer identifying 

2 number of each participant or former partici3 pant in the plan— 

4 ‘‘(i) who, during any previous plan 

5 year, was reported under subparagraph 

6 (C), and with respect to whom the benefits 

7 described in subparagraph (C)(ii) were 

8 fully paid during the plan year, 

9 ‘‘(ii) with respect to whom any 

10 amount was distributed under section 

11 401(a)(31)(B) during the plan year, or 

12 ‘‘(iii) with respect to whom an annuity 

13 contract was distributed during the plan 

14 year, 

15 ‘‘(F) in the case of a participant or former 

16 participant to whom subparagraph (E) ap17 plies— 

18 ‘‘(i) the amount distributed, 

19 ‘‘(ii) in the case of a participant de20 scribed in clause (ii) thereof, the name and 

21 address of the designated trustee or issuer 

22 described in section 401(a)(31)(B)(i) and 

23 the account number of the individual re24 tirement plan to which the amount was 

25 distributed, and 


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1 ‘‘(iii) in the case of a participant de2 scribed in clause (iii) thereof, the name 

3 and address of the issuer of such annuity 

4 contract and the contract or certificate 

5 number, and’’. 

6 (2) RULES RELATING TO DIRECT TRUSTEE-TO7 TRUSTEE TRANSFERS.— 

8 (A) IN GENERAL.—Paragraph (6) of sec9 tion 402(e) of such Code is amended— 

10 (i) by striking ‘‘TRANSFERS.—Any’’ 

11 and inserting ‘‘TRANSFERS.— 

12 ‘‘(A) IN GENERAL.—Any’’, and 

13 (ii) by adding at the end the following 

14 new subparagraph: 

15 ‘‘(B) NOTIFICATION OF TRUSTEE.—In the 

16 case of a distribution under section 

17 401(a)(31)(B), the plan administrator shall no18 tify the designated trustee or issuer described 

19 in clause (i) thereof that the transfer is a man20 datory distribution required by such section.’’. 

21 (B) PENALTY.—Subsection (i) of section 

22 6652 of such Code is amended— 

23 (i) by striking ‘‘TO RECIPIENTS’’ in 

24 the heading and inserting ‘‘OR NOTIFICA25 TION’’, 


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1 (ii) by striking ‘‘402(f),’’ and insert2 ing ‘‘402(f) or a notification as required by 

3 section 402(e)(6)(B),’’, and 

4 (iii) by striking ‘‘such written expla5 nation’’ and inserting ‘‘such written expla6 nation or notification’’. 

7 (C) REPORTS.—Subsection (i) of section 

8 408 of such Code is amended— 

9 (i) by redesignating subparagraphs 

10 (A) and (B) of paragraph (2) as clauses (i) 

11 and (ii), respectively, and by moving such 

12 clauses 2 ems to the right, 

13 (ii) by redesignating paragraphs (1) 

14 and (2) as subparagraphs (A) and (B), re15 spectively, and by moving such subpara16 graphs 2 ems to the right, 

17 (iii) by striking ‘‘as the Secretary pre18 scribes’’ in subparagraph (B)(ii), as so re19 designated, and all that follows through ‘‘a 

20 simple retirement account’’ and inserting 

21 ‘‘as the Secretary prescribes. 

22 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 

23 case of a simple retirement account’’, 

24 (iv) by striking ‘‘REPORTS.—The 

25 trustee of’’ and inserting ‘‘REPORTS.— 


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1 ‘‘(1) IN GENERAL.—The trustee of’’, 

2 (v) by striking ‘‘under paragraph (2)’’ 

3 in paragraph (3), as redesignated by clause 

4 (iii), and inserting ‘‘under paragraph 

5 (1)(B)’’, and 

6 (vi) by inserting after paragraph 

7 (1)(B)(ii), as redesignated by the pre8 ceding clauses, the following new para9 graph: 

10 ‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 

11 of an account, contract, or annuity to which a trans12 fer of a distribution under section 401(a)(31)(B) is 

13 made (including a transfer of such an amount from 

14 the individual retirement plan to which the amount 

15 was originally transferred to another individual re16 tirement plan), the report required by this sub17 section shall— 

18 ‘‘(A) identify the distribution of such 

19 amount as a mandatory distribution required by 

20 such section, 

21 ‘‘(B) include the name, address, and tax22 payer identifying number of the trustee or 

23 issuer of the individual retirement plan to which 

24 the amount is transferred, and 


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1 ‘‘(C) be filed with the Director of the Re2 tirement Savings Lost and Found established 

3 under section 2(a) of the Retirement Savings 

4 Lost and Found Act of 2016 as well as with the 

5 Secretary.’’. 

6 (3) EFFECTIVE DATE.—The amendments made 

7 by this subsection shall apply to distributions made, 

8 and returns and reports the due date for which is, 

9 after the date that is one year after the date of the 

10 enactment of this Act. 

11 (d) REQUIREMENT OF ELECTRONIC FILING.— 

12 (1) IN GENERAL.—Paragraph (2) of section 

13 6011(e) of the Internal Revenue Code of 1986 is 

14 amended— 

15 (A) by redesignating subparagraphs (A) 

16 and (B) as clauses (i) and (ii), respectively, and 

17 by moving such clauses 2 ems to the right, 

18 (B) by striking ‘‘the requirements of such 

19 regulations’’ and all that follows through ‘‘the 

20 Secretary shall require’’ and inserting ‘‘the re21 quirements of such regulations. 

22 ‘‘(B) CERTAIN PARTNERSHIPS.—Notwith23 standing subparagraph (A), the Secretary shall 

24 require’’, 


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1 (C) by striking ‘‘REGULATIONS.—In pre2 scribing’’ and inserting ‘‘REGULATIONS.— 

3 ‘‘(A) IN GENERAL.—In prescribing’’, and 

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

5 subparagraph: 

6 ‘‘(C) EXCEPTIONS.—Notwithstanding sub7 paragraph (A), the Secretary shall require re8 turns or reports required under— 

9 ‘‘(i) sections 6057, 6058, and 6059, 

10 and 

11 ‘‘(ii) sections 408(i), 6041, and 6047 

12 to the extent such return or report relates 

13 to the tax treatment of a distribution from 

14 a plan, account, contract, or annuity, 

15 to be filed on magnetic media, but only with re16 spect to persons who are required to file at 

17 least 50 returns during the calendar year that 

18 includes the first day of the plan year to which 

19 such returns or reports relate.’’. 

20 (2) EFFECTIVE DATE.—The amendments made 

21 by this subsection shall apply to returns and reports 

22 the due date for which is after the date of the enact23 ment of this Act. 

24 (e) SAFEGUARDING PARTICIPANT PRIVACY AND SE25 CURITY.—In establishing the Retirement Savings Lost 


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1 and Found under subsection (a), the Commissioner of So2 cial Security and the Secretary of the Treasury shall take 

3 all necessary and proper precautions, including consulting 

4 with the Secretary of Health and Human Services, to en5 sure that participants’ plan information maintained by the 

6 Retirement Savings Lost and Found is protected and that 

7 persons other than the participant cannot fraudulently 

8 claim the benefits to which any participant is entitled, and 

9 to allow any participant to opt out of inclusion in the Lost 

10 and Found at the election of the participant. 

11 SEC. 3. MANDATORY TRANSFERS OF ROLLOVER DISTRIBU12 TIONS. 

13 (a) INVESTMENT OPTIONS.— 

14 (1) IN GENERAL.—Subparagraph (B) of section 

15 404(c)(3) of the Employee Retirement Income Secu16 rity Act of 1974 (29 U.S.C. 1104(c)(3)) is amended 

17 by inserting ‘‘, and, to the extent the Secretary pro18 vides in guidance or regulations issued after the en19 actment of the Retirement Savings Lost and Found 

20 Act of 2016, is made to a target date or life cycle 

21 fund or to such other option as the Secretary may 

22 so provide’’ before the period. 

23 (2) REGULATIONS.—Not later than 180 days 

24 after the date of the enactment of this Act, the Sec25 retary of Labor shall promulgate regulations identiVerDate Sep 11 2014 22:03 Jul 27, 2016 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5805.IH H5805

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1 fying the target date or life cycle funds, or speci2 fying the characteristics of a target date or life cycle 

3 fund, that will be deemed to meet the requirements 

4 of section 404(c)(3)(B) of the Employee Retirement 

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

6 1104(c)(3)(B)), as amended by paragraph (1). 

7 (b) EXPANSION OF CAP; AUTHORITY TO TRANSFER

8 LESSER AMOUNTS.— 

9 (1) IN GENERAL.—Clause (ii) of section 

10 401(a)(31)(B) of the Internal Revenue Code of 1986 

11 is amended by striking ‘‘$5,000’’ and inserting 

12 ‘‘$6,000’’. 

13 (2) LESSER AMOUNTS.—Subparagraph (B) of 

14 section 401(a)(31) of such Code is amended by add15 ing at the end the following new clauses: 

16 ‘‘(iii) TRANSFERS OF LESSER

17 AMOUNTS TO RETIREMENT SAVINGS LOST

18 AND FOUND OR TREASURY.—In the case of 

19 a trust which is part of an eligible plan, 

20 such trust shall not be a qualified trust 

21 under this section unless such plan pro22 vides that if— 

23 ‘‘(I) a participant in the plan 

24 separates from the service covered by 

25 the plan and the deferred vested benVerDate Sep 11 2014 22:03 Jul 27, 2016 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5805.IH H5805

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1 efit to which such participant is enti2 tled is not in excess of $1,000, and 

3 ‘‘(II) the participant does not 

4 make an election under subparagraph 

5 (A) and does not elect to receive the 

6 distribution directly, 

7 the plan administrator shall, after noti8 fying the participant that the participant is 

9 entitled to such benefit, transfer the 

10 amount of such benefit to the Director of 

11 the Retirement Savings Lost and Found in 

12 accordance with section 3(c)(2) of the Re13 tirement Savings Lost and Found Act of 

14 2016, or to an individual retirement ac15 count (as defined in section 408(a)) estab16 lished by the Secretary. Such transfer shall 

17 not be made before the later of the date 

18 that is 6 months after the date on which 

19 the participant receives the notification re20 quired under the preceding sentence, or, if 

21 the plan administrator attempts to pay the 

22 distribution to the participant directly but 

23 the participant has not claimed the dis24 tribution, the date that is 6 months after 


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1 the date on which the attempted payment 

2 was sent to the participant. 

3 ‘‘(iv) INCOME TAX TREATMENT OF

4 TRANSFERS TO RETIREMENT SAVINGS

5 LOST AND FOUND.—For purposes of deter6 mining the income tax treatment of trans7 fers to the Director of the Retirement Sav8 ings Lost and Found under clause (iii)— 

9 ‘‘(I) such a transfer shall be 

10 treated as a transfer to an individual 

11 retirement plan under clause (i), and 

12 ‘‘(II) the distribution of such 

13 amounts by the Director of the Re14 tirement Savings Lost and Found 

15 shall be treated as a distribution from 

16 an individual retirement plan. 

17 ‘‘(v) NOTIFICATION TO RETIREMENT

18 SAVINGS LOST AND FOUND.—In the case 

19 of a trust which is part of an eligible plan, 

20 if a participant in the plan separates from 

21 the service covered by the plan, the plan 

22 administrator shall report— 

23 ‘‘(I) the total amount of the de24 ferred vested benefit to which the par25 ticipant is entitled, and 


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1 ‘‘(II) the amount of any distribu2 tion of such benefit made to and 

3 claimed by the participant, 

4 to the Director of the Retirement Savings 

5 Lost and Found for purposes of the Re6 tirement Savings Lost and Found estab7 lished under section 2(a) of the Retirement 

8 Savings Lost and Found Act of 2016.’’. 

9 (c) OFFICE OF THE RETIREMENT SAVINGS LOST

10 AND FOUND.— 

11 (1) IN GENERAL.—Not later than one year 

12 after the date of the enactment of this Act, the 

13 Commissioner of Social Security and the Secretary 

14 of the Treasury shall establish within the appro15 priate agency or subdivision thereof an Office of the 

16 Retirement Savings Lost and Found, to be adminis17 tered by a Director of the Retirement Savings Lost 

18 and Found who (without regard to the agency or 

19 subdivision where such Office is established) shall 

20 report to both such Commissioner and such Sec21 retary. 

22 (2) RESPONSIBILITIES OF DIRECTOR.— 

23 (A) IN GENERAL.—In addition to admin24 istering the Retirement Savings Lost and 

25 Found under section 2, the Director of the ReVerDate Sep 11 2014 22:03 Jul 27, 2016 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H5805.IH H5805

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1 tirement Savings Lost and Found established 

2 under this subsection shall— 

3 (i) invest any amount transferred 

4 under section 401(a)(31)(B)(iii) of the In5 ternal Revenue Code of 1986 in United 

6 States Treasury securities; and 

7 (ii) upon application filed by the par8 ticipant or beneficiary in such form and 

9 manner as may be prescribed in regula10 tions, pay to the participant or beneficiary 

11 the amount transferred (or the appropriate 

12 survivor benefit) either— 

13 (I) in a single sum (plus inter14 est), or 

15 (II) in such other form as is 

16 specified in regulations; and 

17 (iii) identify such amount as eligible 

18 to be paid into an eligible retirement plan 

19 described in section 402(c)(8)(B) of the 

20 Internal Revenue Code of 1986. 

21 (B) OPTION TO CONTRACT.—The Director 

22 of the Retirement Savings Lost and Found may 

23 contract with a third party to carry out the re24 sponsibilities under subparagraph (A). 

25 (d) EFFECTIVE DATES.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this section 

3 shall apply to distributions made after the date that 

4 is 2 years after the date of the enactment of this 

5 Act. 

6 (2) MANDATORY TRANSFER OF VESTED BENE7 FITS.—The amendments made by subsection (b) 

8 shall apply to vested benefits with respect to partici9 pants who separate from service connected to the 

10 plan before, on, or after the date that is 2 years 

11 after the date of the enactment of this Act. 

Æ 


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