I 

116TH CONGRESS 

2D SESSION H. R. 8567 

To amend the Internal Revenue Code of 1986 to increase to 75 the required 

beginning date age for mandatory retirement distributions and to exempt 

from such distribution rules individuals with lower account balances. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 9, 2020 

Mrs. MURPHY of Florida (for herself and Mr. ESTES) introduced the following 

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

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

to 75 the required beginning date age for mandatory 

retirement distributions and to exempt from such distribution rules individuals with lower account balances. 

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 ‘‘Required Minimum 

5 Distribution Modernization Act of 2020’’. 


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1 SEC. 2. INCREASE IN AGE FOR REQUIRED BEGINNING DATE 

2 FOR MANDATORY DISTRIBUTIONS. 

3 (a) IN GENERAL.—Section 401(a)(9)(C)(i)(I) of the 

4 Internal Revenue Code of 1986 is amended by striking 

5 ‘‘age 72’’ and inserting ‘‘age 75’’. 

6 (b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR

7 OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec8 tion 401(a)(9) of such Code are each amended by striking 

9 ‘‘age 72’’ and inserting ‘‘age 75’’. 

10 (c) CONFORMING AMENDMENTS.—The last sentence 

11 of section 408(b) of such Code is amended by striking 

12 ‘‘age 72’’ and inserting ‘‘age 75’’. 

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

14 this section shall apply to distributions required to be 

15 made after December 31, 2020, with respect to individuals 

16 who attain age 72 after such date. 

17 SEC. 3. EXEMPTION FROM REQUIRED MINIMUM DISTRIBU18 TION RULES FOR INDIVIDUALS WITH CER19 TAIN ACCOUNT BALANCES. 

20 (a) IN GENERAL.—Section 401(a)(9) of the Internal 

21 Revenue Code of 1986 is amended by adding at the end 

22 the following new subparagraph: 

23 ‘‘(J) EXCEPTION FROM REQUIRED MIN24 IMUM DISTRIBUTIONS DURING LIFE OF EM25 PLOYEE WHERE ASSETS DO NOT EXCEED

26 $100,000.— 


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1 ‘‘(i) IN GENERAL.—If, as of a meas2 urement date, the aggregate value of an 

3 employee’s entire interest under all defined 

4 contribution plans does not exceed 

5 $100,000, then, during any succeeding cal6 endar year beginning before the next meas7 urement date, the requirements of sub8 paragraph (A) shall not apply with respect 

9 to such employee. 

10 ‘‘(ii) DEFINED CONTRIBUTION

11 PLAN.—For purposes of this subpara12 graph, the term ‘defined contribution plan’ 

13 has the same meaning as when used in 

14 subparagraph (H). 

15 ‘‘(iii) LIMIT ON REQUIRED MINIMUM

16 DISTRIBUTION.—The required minimum 

17 distribution determined under subpara18 graph (A) for an employee under all de19 fined contribution plans shall not exceed 

20 an amount equal to the excess of— 

21 ‘‘(I) the aggregate value of an 

22 employee’s entire interest under such 

23 plans on the last day of the calendar 

24 year to which such distribution re25 lates, over 


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1 ‘‘(II) the dollar amount in effect 

2 under clause (i) for such calendar 

3 year. 

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

6 be distributed in the case of an individual 

7 with more than one defined contribution 

8 plan. 

9 ‘‘(iv) MEASUREMENT DATE.—For 

10 purposes of this subparagraph, the term 

11 ‘measurement date’ means, with respect to 

12 any employee— 

13 ‘‘(I) the last day of the calendar 

14 year preceding the calendar year in 

15 which the employee attains age 75, 

16 and 

17 ‘‘(II) in the case of any employee 

18 who (after a measurement date deter19 mined under subclause (I) with re20 spect to such employee) receives con21 tributions, rollovers, or transfers of 

22 amounts that were not previously 

23 taken into account in applying this 

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1 endar year in which such contribution, 

2 rollover, or transfer was so received. 

3 ‘‘(v) INFLATION ADJUSTMENT.—In 

4 the case of any calendar year beginning 

5 after 2020, the $100,000 amount in clause 

6 (i) shall be increased by an amount equal 

7 to— 

8 ‘‘(I) such dollar amount, multi9 plied by 

10 ‘‘(II) the cost of living adjust11 ment determined under section 1(f)(3) 

12 for the calendar year, determined by 

13 substituting ‘calendar year 2019’ for 

14 ‘calendar year 2016’ in subparagraph 

15 (A)(ii) thereof. 

16 Any increase determined under this clause 

17 shall be rounded to the next lowest mul18 tiple of $5,000. 

19 ‘‘(vi) PLAN ADMINISTRATOR RELI20 ANCE ON EMPLOYEE CERTIFICATION.—A 

21 defined contribution plan described in 

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

23 402(c)(8)(B) shall not be treated as failing 

24 to meet the requirements of this paragraph 

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1 quired minimum distribution for a cal2 endar year if— 

3 ‘‘(I) the aggregate value of an 

4 employee’s entire interest under all 

5 defined contribution plans of the em6 ployer on the last day of the calendar 

7 year to which such distribution relates 

8 does not exceed the dollar amount in 

9 effect for such year under clause (i), 

10 and 

11 ‘‘(II) the employee certifies that 

12 the aggregate value of the employee’s 

13 entire interest under all defined con14 tribution plans on the most recent 

15 measurement date with respect to the 

16 employee (as determined by the em17 ployee based on guidance provided by 

18 the Secretary) did not exceed the dol19 lar amount in effect for such year 

20 under clause (i). 

21 ‘‘(vii) AGGREGATION RULE.—All em22 ployers treated as a single employer under 

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

24 414 shall be treated as a single employer 

25 for purposes of clause (v).’’. 


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1 (b) PLAN ADMINISTRATOR REPORTING.—Section 

2 6047 of such Code is amended by redesignating subsection 

3 (h) as subsection (i) and by inserting after subsection (g) 

4 the following new subsection: 

5 ‘‘(h) ACCOUNT BALANCE FOR PARTICIPANTS WHO

6 HAVE ATTAINED AGE 74.— 

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

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

9 section 414(g)) of each defined contribution plan (as 

10 defined in section 401(a)(9)(J)) shall make a return 

11 to the Secretary with respect to each participant of 

12 such plan who has attained age 74 as of the end of 

13 the preceding calendar year which states— 

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

15 plan, 

16 ‘‘(B) the name and address of the plan ad17 ministrator, 

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

19 identification number of the participant, and 

20 ‘‘(D) the account balance of such partici21 pant as of the end of the preceding calendar 

22 year. 

23 ‘‘(2) STATEMENT FURNISHED TO PARTICI24 PANT.—Every person required to make a return 

25 under paragraph (1) with respect to a participant 


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1 shall furnish a copy of such return to such partici2 pant. 

3 ‘‘(3) APPLICATION TO INDIVIDUAL RETIREMENT

4 PLANS AND ANNUITIES.—In the case of an defined 

5 contribution plan described in clause (i) or (ii) of 

6 section 402(c)(8)(B)— 

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

8 the plan administrator shall be treated as a ref9 erence to the trustee or issuer, as the case may 

10 be, and 

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

12 the participant shall be treated as a reference 

13 to the individual for whom such account or an14 nuity is maintained.’’. 

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

16 this section shall apply to distributions required to be 

17 made in calendar years beginning more than 120 days 

18 after the date of the enactment of this Act. 

Æ 


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