I 

116TH CONGRESS 

2D SESSION H. R. 8696 

To increase retirement savings, simplify and clarify retirement plan rules, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 27, 2020 

Mr. NEAL (for himself and Mr. BRADY) introduced the following bill; which 

was referred to the Committee on Ways and Means, and in addition to 

the Committees on Financial Services, and Education and Labor, 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 retirement savings, simplify and clarify 

retirement plan rules, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Securing a Strong Retirement Act of 2020’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—EXPANDING COVERAGE AND INCREASING RETIREMENT 

SAVINGS 

Sec. 101. Expanding automatic enrollment in retirement plans. 

Sec. 102. Modification of credit for small employer pension plan startup costs. 

Sec. 103. Simplification and increase in Saver’s Credit. 

Sec. 104. Enhancement of 403(b) plans. 

Sec. 105. Increase in age for required beginning date for mandatory distributions. 

Sec. 106. Deferral of tax for certain sales of employer stock to employee stock 

ownership plan sponsored by S corporation. 

Sec. 107. Indexing IRA catch-up limit. 

Sec. 108. Higher catch-up limit to apply at age 60. 

Sec. 109. Multiple employer 403(b) plans. 

Sec. 110. Treatment of student loan payments as elective deferrals for purposes 

of matching contributions. 

Sec. 111. Application of credit for small employer pension plan startup costs to 

employers which join an existing plan. 

Sec. 112. Military spouse retirement plan eligibility credit for small employers. 

Sec. 113. Small immediate financial incentives for contributing to a plan. 

Sec. 114. Safe harbor for corrections of employee elective deferral failures. 

Sec. 115. One-year reduction in period of service requirement for long-term, 

part-time workers. 

Sec. 116. Governmental pension plans may include certain firefighters, emergency medical technicians, and paramedics. 

TITLE II—PRESERVATION OF INCOME 

Sec. 201. Remove required minimum distribution barriers for life annuities. 

Sec. 202. Qualifying longevity annuity contracts. 

Sec. 203. Insurance-dedicated exchange-traded funds. 

TITLE III—SIMPLIFICATION AND CLARIFICATION OF 

RETIREMENT PLAN RULES 

Sec. 301. Recovery of retirement plan overpayments. 

Sec. 302. Reduction in excise tax on certain accumulations in qualified retirement plans. 

Sec. 303. Performance benchmarks for asset allocation funds. 

Sec. 304. Review and report to the Congress relating to reporting and disclosure requirements. 

Sec. 305. Eliminating unnecessary plan requirements related to unenrolled participants. 

Sec. 306. Retirement savings lost and found. 

Sec. 307. Exemption from required minimum distribution rules for individuals 

with certain account balances. 

Sec. 308. Expansion of Employee Plans Compliance Resolution System. 

Sec. 309. Eliminate the ‘‘first day of the month’’ requirement for governmental 

section 457(b) plans. 

Sec. 310. One-time election for qualified charitable distribution to split-interest 

entity; increase in qualified charitable distribution limitation. 

Sec. 311. Retirement plan distributions for charitable purpose. 

Sec. 312. Distributions to firefighters. 

Sec. 313. Exclusion of certain disability-related first responder retirement payments. 


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Sec. 314. Individual retirement plan statute of limitations for excise tax on excess contributions, certain accumulations, and prohibited transactions. 

Sec. 315. Requirement to provide paper statements in certain cases. 

TITLE IV—TECHNICAL AMENDMENTS 

Sec. 401. Amendments relating to Setting Every Community Up for Retirement 

Enhancement Act of 2019. 

TITLE V—ADMINISTRATIVE PROVISIONS 

Sec. 501. Provisions relating to plan amendments. 

1 TITLE I—EXPANDING COVERAGE 

2 AND INCREASING RETIRE3 MENT SAVINGS 

4 SEC. 101. EXPANDING AUTOMATIC ENROLLMENT IN RE5 TIREMENT PLANS. 

6 (a) IN GENERAL.—Subpart B of part I of subchapter 

7 D of chapter 1 of the Internal Revenue Code of 1986 is 

8 amended by inserting after section 414 the following new 

9 section: 

10 ‘‘SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC EN11 ROLLMENT. 

12 ‘‘(a) IN GENERAL.—Except as otherwise provided in 

13 this section— 

14 ‘‘(1) an arrangement shall not be treated as a 

15 qualified cash or deferred arrangement described in 

16 section 401(k) or as a qualified salary reduction ar17 rangement described in section 408(p) unless such 

18 arrangement meets the automatic enrollment re19 quirements of subsection (b), and 


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1 ‘‘(2) an annuity contract otherwise described in 

2 section 403(b)(1) which is purchased under a salary 

3 reduction agreement shall not be treated as de4 scribed in such section unless such agreement meets 

5 the automatic enrollment requirements of subsection 

6 (b). 

7 ‘‘(b) AUTOMATIC ENROLLMENT REQUIREMENTS.— 

8 ‘‘(1) IN GENERAL.—An arrangement or agree9 ment meets the requirements of this subsection if 

10 such arrangement or agreement is an eligible auto11 matic contribution arrangement (as defined in sec12 tion 414(w)(3)) which meets the requirements of 

13 paragraphs (2) through (4). 

14 ‘‘(2) ALLOWANCE OF PERMISSIBLE WITH15 DRAWALS.—An eligible automatic contribution ar16 rangement meets the requirements of this paragraph 

17 if such arrangement allows employees to make per18 missible withdrawals (as defined in section 

19 414(w)(2)). 

20 ‘‘(3) MINIMUM CONTRIBUTION PERCENTAGE.— 

21 An eligible automatic contribution arrangement 

22 meets the requirements of this paragraph if— 

23 ‘‘(A) the uniform percentage of compensa24 tion contributed by the participant under such 

25 arrangement during the first year of participaVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 tion is not less than 3 percent and not more 

2 than 10 percent (unless the participant specifi3 cally elects not to have such contributions made 

4 or to have such contributions made at a dif5 ferent percentage), and 

6 ‘‘(B) such uniform percentage is increased 

7 by 1 percentage point for each year of partici8 pation under such arrangement (but not above 

9 10 percent) unless the participant specifically 

10 elects not to have such contributions made or to 

11 have such contributions made at a different 

12 percentage. 

13 ‘‘(4) INVESTMENT REQUIREMENTS.—An eligible 

14 automatic contribution arrangement meets the re15 quirements of this paragraph if amounts contributed 

16 pursuant to such arrangement, and for which no in17 vestment is elected by the participant, are invested 

18 consistent with the requirements of section 

19 2550.404c–5 of title 29, Code of Federal Regula20 tions (or any successor regulations). 

21 ‘‘(c) EXCEPTIONS.—For purposes of this section— 

22 ‘‘(1) EXCEPTION FOR PLANS OR ARRANGE23 MENTS ESTABLISHED BEFORE ENACTMENT OF SEC24 TION.—Subsection (a) shall not apply to— 


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1 ‘‘(A) any qualified cash or deferred ar2 rangement or qualified salary reduction ar3 rangement established before the date of the 

4 enactment of this section, or 

5 ‘‘(B) any annuity contract purchased 

6 under a plan established before the date of the 

7 enactment of this section. 

8 ‘‘(2) EXCEPTION FOR GOVERNMENTAL AND

9 CHURCH PLANS.—Subsection (a) shall not apply to 

10 any governmental plan (within the meaning of sec11 tion 414(d)) or any church plan (within the meaning 

12 of section 414(e)). 

13 ‘‘(3) EXCEPTION FOR NEW BUSINESSES.—Sub14 section (a) shall not apply to— 

15 ‘‘(A) any qualified cash or deferred ar16 rangement or qualified salary reduction ar17 rangement established while all employers main18 taining the plan (and any predecessor employ19 ers) have been in existence for less than 3 

20 years, or 

21 ‘‘(B) any annuity contract purchased 

22 under a plan established while all employers 

23 maintaining such plan have been in existence 

24 for less than 3 years. 


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1 ‘‘(4) EXCEPTION FOR SMALL BUSINESSES.— 

2 Subsection (a) shall not apply to— 

3 ‘‘(A) any qualified cash or deferred ar4 rangement or qualified salary reduction ar5 rangement if such arrangement is established 

6 not later than 1 year after the close of the last 

7 taxable year with respect to which all employers 

8 maintaining the plan normally employed 10 or 

9 fewer employees on a typical business day, or 

10 ‘‘(B) any annuity contract purchased 

11 under a plan established not later than 1 year 

12 after the close of the last taxable year with re13 spect to which all employers maintaining such 

14 plan normally employed 10 or fewer employees 

15 on a typical business day.’’. 

16 (b) CLERICAL AMENDMENT.—The table of sections 

17 for subpart B of part I of subchapter D of chapter 1 of 

18 the Internal Revenue Code of 1986 is amended by insert19 ing after the item relating to section 414 the following 

20 new item: 

‘‘Sec. 414A. Requirements related to automatic enrollment.’’. 

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

22 this section shall apply to plan years beginning after De23 cember 31, 2021. 


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1 SEC. 102. MODIFICATION OF CREDIT FOR SMALL EM2 PLOYER PENSION PLAN STARTUP COSTS. 

3 (a) INCREASE IN CREDIT PERCENTAGE FOR SMALL4 ER EMPLOYERS.—Section 45E(e) of the Internal Revenue 

5 Code of 1986 is amended by adding at the end the fol6 lowing new paragraph: 

7 ‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL

8 EMPLOYERS.—In the case of an employer which 

9 would be an eligible employer under subsection (c) if 

10 section 408(p)(2)(C)(i) was applied by substituting 

11 ‘50 employees’ for ‘100 employees’, subsection (a) 

12 shall be applied by substituting ‘100 percent’ for ‘50 

13 percent’.’’. 

14 (b) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU15 TIONS BY CERTAIN SMALL EMPLOYERS.—Section 45E of 

16 such Code is amended by adding at the end the following 

17 new subsection: 

18 ‘‘(f) ADDITIONAL CREDIT FOR EMPLOYER CON19 TRIBUTIONS BY CERTAIN ELIGIBLE EMPLOYERS.— 

20 ‘‘(1) IN GENERAL.—In the case of an eligible 

21 employer, the credit allowed for the taxable year 

22 under subsection (a) (determined without regard to 

23 this subsection) shall be increased by an amount 

24 equal to the applicable percentage of employer con25 tributions (other than any elective deferrals (as de26 fined in section 402(g)(3))) by the employer to an 


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1 eligible employer plan (other than a defined benefit 

2 plan (as defined in section 414(j))). 

3 ‘‘(2) LIMITATIONS.— 

4 ‘‘(A) DOLLAR LIMITATION.—The amount 

5 determined under paragraph (1) (before the ap6 plication of subparagraph (B)) with respect to 

7 any employee of the employer shall not exceed 

8 $1,000. 

9 ‘‘(B) CREDIT PHASE-IN.—In the case of 

10 any eligible employer which had for the pre11 ceding taxable year more than 50 employees, 

12 the amount determined under paragraph (1) 

13 (without regard to this subparagraph) shall be 

14 reduced by an amount equal to the product 

15 of— 

16 ‘‘(i) the amount otherwise so deter17 mined under paragraph (1), multiplied by 

18 ‘‘(ii) a percentage equal to 2 percent19 age points for each employee of the em20 ployer for the preceding taxable year in ex21 cess of 50 employees. 

22 ‘‘(3) APPLICABLE PERCENTAGE.—For purposes 

23 of this section, the applicable percentage for the tax24 able year during which the eligible employer plan is 

25 established shall be 100 percent, and for taxable 


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1 years thereafter shall be determined under the fol2 lowing table: 

‘‘In the case of the following 

taxable year beginning 

after the taxable year 

during which plan is established: 

The applicable percentage shall 

be: 

1st ................................................................................................ 100% 

2nd ............................................................................................... 75% 

3rd ............................................................................................... 50% 

4th ................................................................................................ 25% 

Any taxable year thereafter ......................................................... 0% 

3 ‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 

4 NUMBER OF EMPLOYEES.—For purposes of this sub5 section, whether an employer is an eligible employer 

6 and the number of employees of an employer shall 

7 be determined under the rules of subsection (c), ex8 cept that paragraph (2) thereof shall only apply to 

9 the taxable year during which the eligible employer 

10 plan to which this section applies is established.’’. 

11 (c) DISALLOWANCE OF DEDUCTION.—Section 

12 45E(e)(2) of such Code is amended to read as follows: 

13 ‘‘(2) DISALLOWANCE OF DEDUCTION.—No de14 duction shall be allowed— 

15 ‘‘(A) for that portion of the qualified start16 up costs paid or incurred for the taxable year 

17 which is equal to so much of the portion of the 

18 credit determined under subsection (a) as is 

19 properly allocable to such costs, and 

20 ‘‘(B) for that portion of the employer con21 tributions by the employer for the taxable year 


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1 which is equal to so much of the credit increase 

2 determined under subsection (f) as is properly 

3 allocable to such contributions.’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2020. 

7 SEC. 103. SIMPLIFICATION AND INCREASE IN SAVER’S 

8 CREDIT. 

9 (a) IN GENERAL.—Section 25B(a) of the Internal 

10 Revenue Code of 1986 is amended by striking ‘‘the appli11 cable percentage’’ and all that follows through ‘‘$2,000’’ 

12 and inserting the following: ‘‘50 percent of so much of the 

13 qualified retirement savings contributions of the eligible 

14 individual for the taxable year as does not exceed $3,000’’. 

15 (b) INCOME LIMITATION.—Section 25B(b) of such 

16 Code is amended to read as follows: 

17 ‘‘(b) INCOME LIMITATION.— 

18 ‘‘(1) IN GENERAL.—The amount allowable as a 

19 credit under subsection (a) for any taxable year (de20 termined without regard to this subsection) shall be 

21 reduced (but not below zero) by an amount which 

22 bears the same ratio to the amount so allowable (as 

23 so determined) as— 


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1 ‘‘(A) the amount by which the taxpayer’s 

2 adjusted gross income exceeds the applicable 

3 threshold, bears to 

4 ‘‘(B) $20,000. 

5 ‘‘(2) APPLICABLE THRESHOLD.—For purposes 

6 of this subsection, the applicable threshold is— 

7 ‘‘(A) except as provided in subparagraph 

8 (B) or (C), $40,000, 

9 ‘‘(B) in the case of a joint return, 200 per10 cent of the amount in effect for the taxable year 

11 under subparagraph (A), or 

12 ‘‘(C) in the case of a head of household, 

13 150 percent of the amount in effect for the tax14 able year under subparagraph (A). 

15 ‘‘(3) INFLATION ADJUSTMENT.—In the case of 

16 any taxable year beginning in a calendar year after 

17 2021, the $40,000 dollar amount in paragraph (2) 

18 shall be increased by an amount equal to— 

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

20 ‘‘(B) the cost-of-living adjustment deter21 mined under section 1(f)(3) for the calendar 

22 year in which the taxable year begins, deter23 mined by substituting ‘calendar year 2020’ for 

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

25 thereof. 


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1 Any increase determined under the preceding sen2 tence shall be rounded to the nearest multiple of 

3 $500.’’. 

4 (c) SAVER’S CREDIT.—The heading for section 25B 

5 of such Code is amended to read as follows: ‘‘SAVER’S

6 CREDIT.’’. 

7 (d) SAVER’S CREDIT PROMOTION.— 

8 (1) IN GENERAL.—The Secretary of the Treas9 ury (or the Secretary’s delegate) shall take such 

10 steps as the Secretary (or delegate) determines are 

11 necessary and appropriate to increase public aware12 ness of the credit provided under section 25B of 

13 such Code (as amended by this section). 

14 (2) REPORT.—Not later than 1 year after the 

15 date of the enactment of this Act, the Secretary (or 

16 delegate) shall submit to Congress a report detailing 

17 the steps taken under paragraph (1). 

18 (e) CLERICAL AMENDMENT.—The table of sections 

19 for subpart A of part IV of subchapter A of chapter 1 

20 of such Code is amended by striking the item relating to 

21 section 25B and inserting the following new item: 

‘‘Sec. 25B. Saver’s credit.’’. 

22 (f) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 the date of the enactment of this Act. 


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1 SEC. 104. ENHANCEMENT OF 403(b) PLANS. 

2 (a) IN GENERAL.— 

3 (1) PERMITTED INVESTMENTS.—Section 

4 403(b)(7)(A) of the Internal Revenue Code of 1986 

5 is amended by striking ‘‘if the amounts are to be in6 vested in regulated investment company stock to be 

7 held in that custodial account’’ and inserting ‘‘if the 

8 amounts are to be held in that custodial account and 

9 invested in regulated investment company stock or a 

10 group trust intended to satisfy the requirements of 

11 Internal Revenue Service Revenue Ruling 81–100 

12 (or any successor guidance)’’. 

13 (2) CONFORMING AMENDMENT.—The heading 

14 of paragraph (7) of section 403(b) of such Code is 

15 amended by striking ‘‘FOR REGULATED INVESTMENT

16 COMPANY STOCK’’. 

17 (3) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall apply to amounts invested 

19 after December 31, 2020. 

20 (b) AMENDMENTS TO THE INVESTMENT COMPANY

21 ACT OF 1940.—Section 3(c)(11) of the Investment Com22 pany Act of 1940 (15 U.S.C. 80a–3(c)(11)) is amended 

23 to read as follows: 

24 ‘‘(11) Any— 

25 ‘‘(A) employee’s stock bonus, pension, or 

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1 ments for qualification under section 401 of the 

2 Internal Revenue Code of 1986; 

3 ‘‘(B) custodial account meeting the re4 quirements of section 403(b)(7) of such Code; 

5 ‘‘(C) governmental plan described in sec6 tion 3(a)(2)(C) of the Securities Act of 1933; 

7 ‘‘(D) collective trust fund maintained by a 

8 bank consisting solely of assets of one or 

9 more— 

10 ‘‘(i) trusts described in subparagraph 

11 (A); 

12 ‘‘(ii) government plans described in 

13 subparagraph (C); 

14 ‘‘(iii) church plans, companies, or ac15 counts that are excluded from the defini16 tion of an investment company under para17 graph (14) of this subsection; or 

18 ‘‘(iv) plans which meet the require19 ments of section 403(b) of the Internal 

20 Revenue Code of 1986 if— 

21 ‘‘(I) such plan is subject to title 

22 I of the Employee Retirement Income 

23 Security Act of 1974 (29 U.S.C. 1001 

24 et seq.); 


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1 ‘‘(II) any employer making such 

2 plan available agrees to serve as a fi3 duciary for the plan with respect to 

4 the selection of the plan’s investments 

5 among which participants can choose; 

6 or 

7 ‘‘(III) such plan is a govern8 mental plan (as defined in section 

9 414(d) of such Code); or 

10 ‘‘(E) separate account the assets of which 

11 are derived solely from— 

12 ‘‘(i) contributions under pension or 

13 profit-sharing plans which meet the re14 quirements of section 401 of the Internal 

15 Revenue Code of 1986 or the requirements 

16 for deduction of the employer’s contribu17 tion under section 404(a)(2) of such Code; 

18 ‘‘(ii) contributions under govern19 mental plans in connection with which in20 terests, participations, or securities are ex21 empted from the registration provisions of 

22 section 5 of the Securities Act of 1933 by 

23 section 3(a)(2)(C) of such Act; 


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1 ‘‘(iii) advances made by an insurance 

2 company in connection with the operation 

3 of such separate account; and 

4 ‘‘(iv) contributions to a plan described 

5 in subparagraph (D)(iv).’’. 

6 (c) AMENDMENTS TO THE SECURITIES ACT OF

7 1933.—Section 3(a)(2) of the Securities Act of 1933 (15 

8 U.S.C. 77c(a)(2)) is amended— 

9 (1) by striking ‘‘or (D)’’ and inserting ‘‘(D) a 

10 plan which meets the requirements of section 403(b) 

11 of such Code if (i) such plan is subject to title I of 

12 the Employee Retirement Income Security Act of 

13 1974 (29 U.S.C. 1001 et seq.), (ii) any employer 

14 making such plan available agrees to serve as a fidu15 ciary for the plan with respect to the selection of the 

16 plan’s investments among which participants can 

17 choose, or (iii) such plan is a governmental plan (as 

18 defined in section 414(d) of such Code); or (E)’’; 

19 (2) by striking ‘‘(C), or (D)’’ and inserting 

20 ‘‘(C), (D), or (E)’’; and 

21 (3) by striking ‘‘(iii) which is a plan funded’’ 

22 and inserting ‘‘(iii) in the case of a plan not de23 scribed in subparagraph (D), which is a plan fund24 ed’’. 


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1 (d) AMENDMENTS TO THE SECURITIES EXCHANGE

2 ACT OF 1934.—Section 3(a)(12)(C) of the Securities Ex3 change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amend4 ed— 

5 (1) by striking ‘‘or (iv)’’ and inserting ‘‘(iv) a 

6 plan which meets the requirements of section 403(b) 

7 of such Code if (I) such plan is subject to title I of 

8 the Employee Retirement Income Security Act of 

9 1974 (29 U.S.C. 1001 et seq.), (II) any employer 

10 making such plan available agrees to serve as a fidu11 ciary for the plan with respect to the selection of the 

12 plan’s investments among which participants can 

13 choose, or (III) such plan is a governmental plan (as 

14 defined in section 414(d) of such Code), or (v)’’; 

15 (2) by striking ‘‘(ii), or (iii)’’ and inserting 

16 ‘‘(ii), (iii), or (iv)’’; and 

17 (3) by striking ‘‘(II) is a plan funded’’ and in18 serting ‘‘(II) in the case of a plan not described in 

19 clause (iv), is a plan funded’’. 

20 SEC. 105. INCREASE IN AGE FOR REQUIRED BEGINNING 

21 DATE FOR MANDATORY DISTRIBUTIONS. 

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

23 Internal Revenue Code of 1986 is amended by striking 

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


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1 (b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR

2 OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec3 tion 401(a)(9) of such Code are each amended by striking 

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

5 (c) CONFORMING AMENDMENTS.—The last sentence 

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

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

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

9 this section shall apply to distributions required to be 

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

11 who attain age 72 after such date. 

12 SEC. 106. DEFERRAL OF TAX FOR CERTAIN SALES OF EM13 PLOYER STOCK TO EMPLOYEE STOCK OWN14 ERSHIP PLAN SPONSORED BY S CORPORA15 TION. 

16 (a) IN GENERAL.—Section 1042(c)(1)(A) of the In17 ternal Revenue Code of 1986 is amended by striking ‘‘do18 mestic C corporation’’ and inserting ‘‘domestic corpora19 tion’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to sales after the date of the enact22 ment of this Act. 


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1 SEC. 107. INDEXING IRA CATCH-UP LIMIT. 

2 (a) IN GENERAL.—Subparagraph (C) of section 

3 219(b)(5) of the Internal Revenue Code of 1986 is amend4 ed by adding at the end the following new clause: 

5 ‘‘(iii) INDEXING OF CATCH-UP LIMITA6 TION.—In the case of any taxable year be7 ginning in a calendar year after 2021, the 

8 $1,000 amount under subparagraph (B)(ii) 

9 shall be increased by an amount equal to— 

10 ‘‘(I) such dollar amount, multi11 plied by 

12 ‘‘(II) the cost-of-living adjust13 ment determined under section 1(f)(3) 

14 for the calendar year in which the tax15 able year begins, determined by sub16 stituting ‘calendar year 2020’ for ‘cal17 endar year 2016’ in subparagraph 

18 (A)(ii) thereof. 

19 If any amount after adjustment under the 

20 preceding sentence is not a multiple of 

21 $100, such amount shall be rounded to the 

22 next lower multiple of $100.’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 December 31, 2021. 


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1 SEC. 108. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 60. 

2 (a) IN GENERAL.— 

3 (1) PLANS OTHER THAN SIMPLE PLANS.—Sec4 tion 414(v)(2)(B)(i) of the Internal Revenue Code of 

5 1986 is amended by inserting the following before 

6 the period: ‘‘($10,000, in the case of an eligible par7 ticipant who has attained age 60 before the close of 

8 the taxable year)’’. 

9 (2) SIMPLE PLANS.—Section 414(v)(2)(B)(ii) of 

10 such Code is amended by inserting the following be11 fore the period: ‘‘($5,000, in the case of an eligible 

12 participant who has attained age 60 before the close 

13 of the taxable year)’’. 

14 (b) COST-OF-LIVING ADJUSTMENTS.—Subparagraph 

15 (C) of section 414(v)(2) of such Code is amended by add16 ing at the end the following: ‘‘In the case of a year begin17 ning after December 31, 2021, the Secretary shall adjust 

18 annually the $10,000 amount in subparagraph (B)(i) and 

19 the $5,000 amount in subparagraph (B)(ii) for increases 

20 in the cost-of-living at the same time and in the same 

21 manner as adjustments under the preceding sentence; ex22 cept that the base period taken into account shall be the 

23 calendar quarter beginning July 1, 2020.’’. 

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

25 this section shall apply to years beginning after December 

26 31, 2020. 


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1 SEC. 109. MULTIPLE EMPLOYER 403(b) PLANS. 

2 (a) IN GENERAL.—Section 403(b) of the Internal 

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

4 the following new paragraph: 

5 ‘‘(15) MULTIPLE EMPLOYER PLANS.— 

6 ‘‘(A) IN GENERAL.—Except in the case of 

7 a church plan, this subsection shall not be 

8 treated as failing to apply to an annuity con9 tract solely by reason of such contract being 

10 purchased under a plan maintained by more 

11 than 1 employer. 

12 ‘‘(B) TREATMENT OF EMPLOYERS FAILING

13 TO MEET REQUIREMENTS OF PLAN.— 

14 ‘‘(i) IN GENERAL.—In the case of a 

15 plan maintained by more than 1 employer, 

16 this subsection shall not be treated as fail17 ing to apply to an annuity contract held 

18 under such plan merely because of one or 

19 more employers failing to meet the require20 ments of this subsection if such plan satis21 fies rules similar to the rules of section 

22 413(e)(2) with respect to any such em23 ployer failure. 

24 ‘‘(ii) ADDITIONAL REQUIREMENTS IN

25 CASE OF NON-GOVERNMENTAL PLANS.—A 

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1 quirements of this subparagraph unless the 

2 plan meets the requirements of subpara3 graph (A) or (B) of section 413(e)(1), ex4 cept in the case of a multiple employer 

5 plan maintained solely by any of the fol6 lowing: A State, a political subdivision of a 

7 State, or an agency or instrumentality of 

8 any one or more of the foregoing.’’. 

9 (b) ANNUAL REGISTRATION FOR 403(b) MULTIPLE

10 EMPLOYER PLAN.—Section 6057 of such Code is amend11 ed by redesignating subsection (g) as subsection (h) and 

12 by inserting after subsection (f) the following new sub13 section: 

14 ‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS TREATED

15 AS ONE PLAN.—In the case of annuity contracts to which 

16 this section applies and to which section 403(b) applies 

17 by reason of the plan under which such contracts are pur18 chased meeting the requirements of paragraph (15) there19 of, such plan shall be treated as a single plan for purposes 

20 of this section.’’. 

21 (c) ANNUAL INFORMATION RETURNS FOR 403(b) 

22 MULTIPLE EMPLOYER PLAN.—Section 6058 of the Inter23 nal Revenue Code of 1986 is amended by redesignating 

24 subsection (f) as subsection (g) and by inserting after sub25 section (e) the following new subsection: 


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1 ‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS TREATED

2 AS ONE PLAN.—In the case of annuity contracts to which 

3 this section applies and to which section 403(b) applies 

4 by reason of the plan under which such contracts are pur5 chased meeting the requirements of paragraph (15) there6 of, such plan shall be treated as a single plan for purposes 

7 of this section.’’. 

8 (d) AMENDMENTS TO EMPLOYEE RETIREMENT IN9 COME SECURITY ACT OF 1974.— 

10 (1) TREATED AS POOLED EMPLOYER PLAN.— 

11 (A) IN GENERAL.—Section 3(43)(A) of the 

12 Employee Retirement Income Security Act of 

13 1974 is amended— 

14 (i) in clause (ii), by striking ‘‘section 

15 501(a) of such Code or’’ and inserting 

16 ‘‘501(a) of such Code, a plan that consists 

17 of contracts described in section 403(b) of 

18 such Code, or’’; and 

19 (ii) in the flush text at the end, by 

20 striking ‘‘the plan.’’ and inserting ‘‘the 

21 plan, but such term shall include any pro22 gram (other than a governmental plan) 

23 maintained for the benefit of the employees 

24 of more than 1 employer that consists of 

25 contracts described in section 403(b) of 


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1 such Code and that meets the require2 ments of subparagraph (A) or (B) of sec3 tion 413(e)(1) of such Code.’’. 

4 (B) CONFORMING AMENDMENTS.—Sec5 tions 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of such 

6 Act are each amended by striking ‘‘section 

7 401(a) of such Code or’’ and inserting ‘‘401(a) 

8 of such Code, a plan that consists of contracts 

9 described in section 403(b) of such Code, or’’. 

10 (2) FIDUCIARIES.—Section 3(43)(B)(ii) of such 

11 Act is amended— 

12 (A) by striking ‘‘trustees meeting the re13 quirements of section 408(a)(2) of the Internal 

14 Revenue Code of 1986’’ and inserting ‘‘trustees 

15 (or other fiduciaries in the case of a plan that 

16 consists of contracts described in section 403(b) 

17 of the Internal Revenue Code of 1986) meeting 

18 the requirements of section 408(a)(2) of such 

19 Code’’, and 

20 (B) by striking ‘‘holding’’ and inserting 

21 ‘‘holding (or causing to be held under the terms 

22 of a plan consisting of such contracts)’’. 

23 (e) REGULATIONS RELATING TO PLAN TERMI24 NATION.—The Secretary of the Treasury (or the Sec25 retary’s designee) shall prescribe such regulations as may 


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1 be necessary to clarify the treatment of a plan termination 

2 by an employer in the case of plans to which section 

3 403(b)(15) of such Code applies. 

4 (f) MODIFICATION OF MODEL PLAN LANGUAGE.— 

5 (1) PLAN NOTIFICATIONS.—The Secretary of 

6 the Treasury (or the Secretary’s designee) shall 

7 modify the model plan language published under sec8 tion 413(e)(5) of the Internal Revenue Code of 1986 

9 to include language which notifies participating em10 ployers which are exempt from tax under section 

11 501(a) of such Code that the plan is subject to the 

12 Employee Retirement Income Security Act of 1974 

13 and that such employer is a plan sponsor with re14 spect to its employees participating in the multiple 

15 employer plan and, as such, has certain fiduciary 

16 duties with respect to the plan and to its employees. 

17 (2) MODEL PLANS FOR MULTIPLE EMPLOYER

18 403(b) NON-GOVERNMENTAL PLANS.—For plans to 

19 which section 403(b)(15)(A) of the Internal Revenue 

20 Code of 1986 applies (other than a plan maintained 

21 for its employees by a State, a political subdivision 

22 of a State, or an agency or instrumentality of any 

23 one or more of the foregoing) the Secretary shall 

24 publish model plan language similar to model plan 


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1 language published under section 413(e)(5) of such 

2 Code. 

3 (g) NO INFERENCE WITH RESPECT TO CHURCH

4 PLANS.—Regarding any application of section 403(b) of 

5 the Internal Revenue Code of 1986 to an annuity contract 

6 purchased under a church plan (as defined in section 

7 414(e) of such Code) maintained by more than 1 em8 ployer, or to any application of rules similar to section 

9 413(e) of such Code to such a plan, no inference shall 

10 be made from section 403(b)(15)(A) of such Code (as 

11 added by this Act) not applying to such plans. 

12 (h) EFFECTIVE DATE.— 

13 (1) IN GENERAL.—The amendments made by 

14 this section shall apply to plan years beginning after 

15 December 31, 2020. 

16 (2) RULE OF CONSTRUCTION.—Nothing in the 

17 amendments made by subsection (a) shall be con18 strued as limiting the authority of the Secretary of 

19 the Treasury or the Secretary’s delegate (determined 

20 without regard to such amendment) to provide for 

21 the proper treatment of a failure to meet any re22 quirement applicable under such Code with respect 

23 to one employer (and its employees) in the case of 

24 a plan to which section 403(b)(15) applies. 


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1 SEC. 110. TREATMENT OF STUDENT LOAN PAYMENTS AS 

2 ELECTIVE DEFERRALS FOR PURPOSES OF 

3 MATCHING CONTRIBUTIONS. 

4 (a) IN GENERAL.—Subparagraph (A) of section 

5 401(m)(4) of the Internal Revenue Code of 1986 is 

6 amended by striking ‘‘and’’ at the end of clause (i), by 

7 striking the period at the end of clause (ii) and inserting 

8 ‘‘, and’’, and by adding at the end the following new 

9 clause: 

10 ‘‘(iii) subject to the requirements of 

11 paragraph (13), any employer contribution 

12 made to a defined contribution plan on be13 half of an employee on account of a quali14 fied student loan payment.’’. 

15 (b) QUALIFIED STUDENT LOAN PAYMENT.—Para16 graph (4) of section 401(m) of such Code is amended by 

17 adding at the end the following new subparagraph: 

18 ‘‘(D) QUALIFIED STUDENT LOAN PAY19 MENT.—The term ‘qualified student loan pay20 ment’ means a payment made by an employee 

21 in repayment of a qualified education loan (as 

22 defined section 221(d)(1)) incurred by the em23 ployee to pay qualified higher education ex24 penses, but only— 


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1 ‘‘(i) to the extent such payments in 

2 the aggregate for the year do not exceed 

3 an amount equal to— 

4 ‘‘(I) the limitation applicable 

5 under section 402(g) for the year (or, 

6 if lesser, the employee’s compensation 

7 (as defined in section 415(c)(3)) for 

8 the year), reduced by 

9 ‘‘(II) the elective deferrals made 

10 by the employee for such year, and 

11 ‘‘(ii) if the employee certifies to the 

12 employer making the matching contribu13 tion under this paragraph that such pay14 ment has been made on such loan. 

15 For purposes of this subparagraph, the term 

16 ‘qualified higher education expenses’ means the 

17 cost of attendance (as defined in section 472 of 

18 the Higher Education Act of 1965, as in effect 

19 on the day before the date of the enactment of 

20 the Taxpayer Relief Act of 1997) at an eligible 

21 educational institution (as defined in section 

22 221(d)(2)).’’. 

23 (c) MATCHING CONTRIBUTIONS FOR QUALIFIED

24 STUDENT LOAN PAYMENTS.—Subsection (m) of section 

25 401 of such Code is amended by redesignating paragraph 


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1 (13) as paragraph (14), and by inserting after paragraph 

2 (12) the following new paragraph: 

3 ‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI4 FIED STUDENT LOAN PAYMENTS.— 

5 ‘‘(A) IN GENERAL.—For purposes of para6 graph (4)(A)(iii), an employer contribution 

7 made to a defined contribution plan on account 

8 of a qualified student loan payment shall be 

9 treated as a matching contribution for purposes 

10 of this title if— 

11 ‘‘(i) the plan provides matching con12 tributions on account of elective deferrals 

13 at the same rate as contributions on ac14 count of qualified student loan payments, 

15 ‘‘(ii) the plan provides matching con16 tributions on account of qualified student 

17 loan payments only on behalf of employees 

18 otherwise eligible to receive matching con19 tributions on account of elective deferrals, 

20 ‘‘(iii) under the plan, all employees el21 igible to receive matching contributions on 

22 account of elective deferrals are eligible to 

23 receive matching contributions on account 

24 of qualified student loan payments, and 


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1 ‘‘(iv) the plan provides that matching 

2 contributions on account of qualified stu3 dent loan payments vest in the same man4 ner as matching contributions on account 

5 of elective deferrals. 

6 ‘‘(B) TREATMENT FOR PURPOSES OF NON7 DISCRIMINATION RULES, ETC.— 

8 ‘‘(i) NONDISCRIMINATION RULES.— 

9 For purposes of subparagraph (A)(iii), 

10 subsection (a)(4), and section 410(b), 

11 matching contributions described in para12 graph (4)(A)(iii) shall not fail to be treated 

13 as available to an employee solely because 

14 such employee does not have debt incurred 

15 under a qualified education loan (as de16 fined in section 221(d)(1)). 

17 ‘‘(ii) STUDENT LOAN PAYMENTS NOT

18 TREATED AS PLAN CONTRIBUTION.—Ex19 cept as provided in clause (iii), a qualified 

20 student loan payment shall not be treated 

21 as a contribution to a plan under this title. 

22 ‘‘(iii) MATCHING CONTRIBUTION

23 RULES.—Solely for purposes of meeting 

24 the requirements of paragraph (11)(B) or 

25 (12) of this subsection, or paragraph 


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1 (11)(B)(i)(II), (12)(B), or (13)(D) of sub2 section (k), a plan may treat a qualified 

3 student loan payment as an elective defer4 ral or an elective contribution, whichever is 

5 applicable.’’. 

6 (d) SIMPLE RETIREMENT ACCOUNTS.—Paragraph 

7 (2) of section 408(p) of such Code is amended by adding 

8 at the end the following new subparagraph: 

9 ‘‘(F) MATCHING CONTRIBUTIONS FOR

10 QUALIFIED STUDENT LOAN PAYMENTS.— 

11 ‘‘(i) IN GENERAL.—Subject to the 

12 rules of clause (iii), an arrangement shall 

13 not fail to be treated as meeting the re14 quirements of subparagraph (A)(iii) solely 

15 because under the arrangement, solely for 

16 purposes of such subparagraph, qualified 

17 student loan payments are treated as 

18 amounts elected by the employee under 

19 subparagraph (A)(i)(I) to the extent such 

20 payments do not exceed— 

21 ‘‘(I) the applicable dollar amount 

22 under subparagraph (E) (after appli23 cation of section 414(v)) for the year 

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1 pensation (as defined in section 

2 415(c)(3)) for the year), reduced by 

3 ‘‘(II) any other amounts elected 

4 by the employee under subparagraph 

5 (A)(i)(I) for the year. 

6 ‘‘(ii) QUALIFIED STUDENT LOAN PAY7 MENT.—For purposes of this subpara8 graph— 

9 ‘‘(I) IN GENERAL.—The term 

10 ‘qualified student loan payment’ 

11 means a payment made by an em12 ployee in repayment of a qualified 

13 education loan (as defined in section 

14 221(d)(1)) incurred by the employee 

15 to pay qualified higher education ex16 penses, but only if the employee cer17 tifies to the employer making the 

18 matching contribution that such pay19 ment has been made on such a loan. 

20 ‘‘(II) QUALIFIED HIGHER EDU21 CATION EXPENSES.—The term ‘quali22 fied higher education expenses’ has 

23 the same meaning as when used in 

24 section 401(m)(4)(D). 


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1 ‘‘(iii) APPLICABLE RULES.—Clause (i) 

2 shall apply to an arrangement only if, 

3 under the arrangement— 

4 ‘‘(I) matching contributions on 

5 account of qualified student loan pay6 ments are provided only on behalf of 

7 employees otherwise eligible to elect 

8 contributions under subparagraph 

9 (A)(i)(I), and 

10 ‘‘(II) all employees otherwise eli11 gible to participate in the arrange12 ment are eligible to receive matching 

13 contributions on account of qualified 

14 student loan payments.’’. 

15 (e) 403(b) PLANS.—Subparagraph (A) of section 

16 403(b)(12) of such Code is amended by adding at the end 

17 the following: ‘‘The fact that the employer offers matching 

18 contributions on account of qualified student loan pay19 ments as described in section 401(m)(13) shall not be 

20 taken into account in determining whether the arrange21 ment satisfies the requirements of clause (ii) (and any reg22 ulation thereunder).’’. 

23 (f) 457(b) PLANS.—Subsection (b) of section 457 of 

24 such Code is amended by adding at the end the following: 

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1 ployer which is described in subsection (e)(1)(A) shall not 

2 be treated as failing to meet the requirements of this sub3 section solely because the plan, or another plan main4 tained by the employer which meets the requirements of 

5 section 401(a), provides for matching contributions on ac6 count of qualified student loan payments as described in 

7 section 401(m)(13).’’. 

8 (g) REGULATORY AUTHORITY.—The Secretary shall 

9 prescribe regulations for purposes of implementing the 

10 amendments made by this section, including regulations— 

11 (1) permitting a plan to make matching con12 tributions for qualified student loan payments, as 

13 defined in sections 401(m)(4)(D) and 408(p)(2)(F) 

14 of the Internal Revenue Code of 1986, as added by 

15 this section, at a different frequency than matching 

16 contributions are otherwise made under the plan, 

17 provided that the frequency is not less than annu18 ally; 

19 (2) permitting employers to establish reasonable 

20 procedures to claim matching contributions for such 

21 qualified student loan payments under the plan, in22 cluding an annual deadline (not earlier than 3 

23 months after the close of each plan year) by which 

24 a claim must be made; and 


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1 (3) promulgating model amendments which 

2 plans may adopt to implement matching contribu3 tions on such qualified student loan payments for 

4 purposes of sections 401(m), 408(p), 403(b), and 

5 457(b) of the Internal Revenue Code of 1986. 

6 (h) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to contributions made for years 

8 beginning after December 31, 2020. 

9 SEC. 111. APPLICATION OF CREDIT FOR SMALL EMPLOYER 

10 PENSION PLAN STARTUP COSTS TO EMPLOY11 ERS WHICH JOIN AN EXISTING PLAN. 

12 (a) IN GENERAL.—Section 45E(d)(3)(A) of the In13 ternal Revenue Code of 1986 is amended by striking ‘‘ef14 fective’’ and inserting ‘‘effective with respect to the eligible 

15 employer’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to eligible employer plans which 

18 become effective with respect to the eligible employer after 

19 the date of the enactment of this Act. 

20 SEC. 112. MILITARY SPOUSE RETIREMENT PLAN ELIGI21 BILITY CREDIT FOR SMALL EMPLOYERS. 

22 (a) IN GENERAL.—Subpart D of part IV of sub23 chapter A of chapter 1 of the Internal Revenue Code of 

24 1986 is amended by adding at the end the following new 

25 section: 


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1 ‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGI2 BILITY CREDIT FOR SMALL EMPLOYERS. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

4 the case of any eligible small employer, the military spouse 

5 retirement plan eligibility credit determined under this 

6 section for any taxable year is an amount equal to the 

7 sum of— 

8 ‘‘(1) $250 with respect to each military spouse 

9 who is an employee of such employer and who is eli10 gible to participate in an eligible defined contribu11 tion plan of such employer at any time during such 

12 taxable year, plus 

13 ‘‘(2) so much of the contributions made by such 

14 employer to all such plans with respect to such em15 ployee during such taxable year as do not exceed 

16 $250. 

17 ‘‘(b) LIMITATION.—An individual shall only be taken 

18 into account as a military spouse under subsection (a) for 

19 the taxable year which includes the date on which such 

20 individual began participating in the eligible defined con21 tribution plan of the employer and the 2 succeeding tax22 able years. 

23 ‘‘(c) ELIGIBLE SMALL EMPLOYER.—For purposes of 

24 this section— 


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1 ‘‘(1) IN GENERAL.—The term ‘eligible small 

2 employer’ means an eligible employer (as defined in 

3 section 408(p)(2)(C)(i)(I)). 

4 ‘‘(2) APPLICATION OF 2-YEAR GRACE PERIOD.— 

5 A rule similar to the rule of section 

6 408(p)(2)(C)(i)(II) shall apply for purposes of this 

7 section. 

8 ‘‘(d) MILITARY SPOUSE.—For purposes of this sec9 tion— 

10 ‘‘(1) IN GENERAL.—The term ‘military spouse’ 

11 means, with respect to any employer, any individual 

12 who is married (within the meaning of section 7703 

13 as of the first date that the employee is employed by 

14 the employer) to an individual who is a member of 

15 the uniformed services (as defined section 101(a)(5) 

16 of title 10, United States Code). For purposes of 

17 this section, an employer may rely on an employee’s 

18 certification that such employee’s spouse is a mem19 ber of the uniformed services if such certification 

20 provides the name, rank, and service branch of such 

21 spouse. 

22 ‘‘(2) EXCLUSION OF HIGHLY COMPENSATED

23 EMPLOYEES.—With respect to any employer, the 

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1 ployee of such employer (within the meaning of sec2 tion 414(q)). 

3 ‘‘(e) ELIGIBLE DEFINED CONTRIBUTION PLAN.— 

4 For purposes of this section, the term ‘eligible defined con5 tribution plan’ means, with respect to any eligible small 

6 employer, any defined contribution plan (as defined in sec7 tion 414(i)) of such employer if, under the terms of such 

8 plan— 

9 ‘‘(1) military spouses employed by such em10 ployer are eligible to participate in such plan not 

11 later than the date which is 2 months after the date 

12 on which such individual begins employment with 

13 such employer, and 

14 ‘‘(2) military spouses who are eligible to partici15 pate in such plan— 

16 ‘‘(A) are immediately eligible to receive an 

17 amount of employer contributions under such 

18 plan which is not less the amount of such con19 tributions that a similarly situated participant 

20 who is not a military spouse would be eligible 

21 to receive under such plan after 2 years of serv22 ice, and 

23 ‘‘(B) immediately have a nonforfeitable 

24 right to the employee’s accrued benefit derived 

25 from employer contributions under such plan. 


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1 ‘‘(f) AGGREGATION RULE.—All persons treated as a 

2 single employer under subsection (b), (c), (m), or (o) of 

3 section 414 shall be treated as one employer for purposes 

4 of this section.’’. 

5 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI6 NESS CREDIT.—Section 38(b) of such Code is amended 

7 by striking ‘‘plus’’ at the end of paragraph (32), by strik8 ing the period at the end of paragraph (33) and inserting 

9 ‘‘, plus’’, and by adding at the end the following new para10 graph: 

11 ‘‘(34) in the case of an eligible small employer 

12 (as defined in section 45U(c)), the military spouse 

13 retirement plan eligibility credit determined under 

14 section 45U(a).’’. 

15 (c) CLERICAL AMENDMENT.—The table of sections 

16 for subpart D of part IV of subchapter A of chapter 1 

17 of such Code is amended by adding at the end the fol18 lowing new item: 

‘‘Sec. 45U. Military spouse retirement plan eligibility credit for small employers.’’. 

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

20 this section shall apply to taxable years beginning after 

21 the date of the enactment of this Act. 


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1 SEC. 113. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 

2 CONTRIBUTING TO A PLAN. 

3 (a) IN GENERAL.—Subparagraph (A) of section 

4 401(k)(4) of the Internal Revenue Code of 1986 is amend5 ed by inserting ‘‘(other than a de minimis financial incen6 tive)’’ after ‘‘any other benefit’’. 

7 (b) SECTION 403(b) PLANS.—Subparagraph (A) of 

8 section 403(b)(12) of such Code, as amended by the pre9 ceding provisions of this Act, is further amended by add10 ing at the end the following: ‘‘A plan shall not fail to sat11 isfy clause (ii) solely by reason of offering a de minimis 

12 financial incentive to employees to elect to have the em13 ployer make contributions pursuant to a salary reduction 

14 agreement.’’. 

15 (c) EXEMPTION FROM PROHIBITED TRANSACTION

16 RULES.—Subsection (d) of section 4975 of such Code is 

17 amended by striking ‘‘or’’ at the end of paragraph (22), 

18 by striking the period at the end of paragraph (23) and 

19 inserting ‘‘, or’’, and by adding at the end the following 

20 new paragraph: 

21 ‘‘(24) the provision of a de minimis financial in22 centive described in section 401(k)(4)(A) or 

23 403(b)(12)(A).’’. 

24 (d) AMENDMENT OF EMPLOYEE RETIREMENT IN25 COME SECURITY ACT OF 1974.—Subsection (b) of section 

26 408 of the Employee Retirement Income Security Act of 


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1 1974 (29 U.S.C. 1108(b)) is amended by adding at the 

2 end the following new paragraph: 

3 ‘‘(21) The provision of a de minimis financial 

4 incentive described in section 401(k)(4)(A) or 

5 403(b)(12)(A) of the Internal Revenue Code of 

6 1986.’’. 

7 (e) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply with respect to plan years begin9 ning after the date of enactment of this Act. 

10 SEC. 114. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 

11 ELECTIVE DEFERRAL FAILURES. 

12 (a) IN GENERAL.—Section 414 of the Internal Rev13 enue Code of 1986 is amended by adding at the end the 

14 following new subsection: 

15 ‘‘(aa) CORRECTING AUTOMATIC CONTRIBUTION ER16 RORS.— 

17 ‘‘(1) IN GENERAL.—Any plan or arrangement 

18 shall not fail to be treated as a plan described in 

19 sections 401(a), 403(b), 408, or 457(b), as applica20 ble, solely by reason of a corrected error. 

21 ‘‘(2) CORRECTED ERROR DEFINED.—For pur22 poses of this subsection, the term ‘corrected error’ 

23 means a reasonable administrative error in imple24 menting an automatic enrollment or automatic esca25 lation feature in accordance with the terms of an eliVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 gible automatic contribution arrangement (as de2 fined under subsection (w)(3)), provided that such 

3 implementation error— 

‘‘(A) is corrected by the date that is 91 4 ⁄2

5 months after the end of the plan year during 

6 which the failure occurred, 

7 ‘‘(B) is corrected in a manner that is fa8 vorable to the participant, and 

9 ‘‘(C) is of a type which is so corrected for 

10 all similarly situated participants in a non11 discriminatory manner. 

12 Such correction may occur before or after the partic13 ipant has terminated employment and may occur 

14 without regard to whether the error is identified by 

15 the Secretary. 

16 ‘‘(3) REGULATIONS AND GUIDANCE FOR FAVOR17 ABLE CORRECTION METHODS.—The Secretary shall, 

18 by regulations or other guidance of general applica19 bility, specify the correction methods that are in a 

20 manner favorable to the participant for purposes of 

21 paragraph (2)(B).’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply with respect to any errors with 

24 respect to which the date referred to in section 414(aa) 


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1 (as added by this section) is after the date of enactment 

2 of this Act. 

3 SEC. 115. ONE-YEAR REDUCTION IN PERIOD OF SERVICE 

4 REQUIREMENT FOR LONG-TERM, PART-TIME 

5 WORKERS. 

6 (a) IN GENERAL.—Section 401(k)(2)(D)(ii) of the 

7 Internal Revenue Code of 1986 is amended by striking 

8 ‘‘3’’ and inserting ‘‘2’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall take effect as if included in the addition 

11 of section 401(k)(2)(D)(ii) of such Code by section 112 

12 of the Setting Every Community Up for Retirement En13 hancement Act of 2019. 

14 SEC. 116. GOVERNMENTAL PENSION PLANS MAY INCLUDE 

15 CERTAIN FIREFIGHTERS, EMERGENCY MED16 ICAL TECHNICIANS, AND PARAMEDICS. 

17 (a) INTERNAL REVENUE CODE OF 1986.—Section 

18 414(d) of the Internal Revenue Code of 1986 (relating to 

19 governmental plans) is amended by adding at the end the 

20 following: ‘‘The term ‘governmental plan’ also includes a 

21 plan which is established by a State or political subdivision 

22 thereof and maintained by a public safety agency (de23 scribed in section 501(c) and exempt from taxation under 

24 section 501(a)), and all of the participants of which are 

25 employees of such agency who are emergency response 


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1 providers (defined in section 2 of the Homeland Security 

2 Act of 2002 (6 U.S.C. 101)), substantially all of whose 

3 services as emergency response providers are in the per4 formance of firefighting services or out-of-hospital emer5 gency medical services for a political subdivision of a State 

6 under a contract between such public safety agency and 

7 the political subdivision of a State.’’. 

8 (b) EMPLOYEE RETIREMENT INCOME SECURITY ACT

9 OF 1974.— 

10 (1) IN GENERAL.—Section 3(32) of the Em11 ployee Retirement Income Security Act of 1974 (29 

12 U.S.C. 1002(32)) is amended by adding at the end 

13 the following: ‘‘. The term ‘governmental plan’ also 

14 includes a plan which is established by a State or 

15 political subdivision thereof and maintained by a 

16 public safety agency (described in section 501(c) of 

17 the Internal Revenue Code of 1986 and exempt from 

18 taxation under section 501(a) of such Code), and all 

19 of the participants of which are employees of such 

20 agency who are emergency response providers (de21 fined in section 2 of the Homeland Security Act of 

22 2002 (6 U.S.C. 101)), substantially all of whose 

23 services as emergency response providers are in the 

24 performance of firefighting services or out-of-hos25 pital emergency medical services for a political subVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 division of a State under a contract between such 

2 public safety agency and the political subdivision of 

3 a State.’’. 

4 (2) PBGC EXCEPTION.—Section 4021(b)(2) of 

5 such Act (29 U.S.C. 1321(b)(2)) is amended by 

6 striking ‘‘described in the last sentence of section 

7 3(32)’’ and inserting ‘‘described in either of the last 

8 two sentences of section 3(32).’’. 

9 (c) CONFORMING AMENDMENTS.— 

10 (1) Section 414(h)(2) of the Internal Revenue 

11 Code of 1986 is amended by striking ‘‘described in 

12 the last sentence of section 414(d) (relating to plans 

13 of Indian tribal governments)’’ and inserting ‘‘de14 scribed in either of the last two sentences of sub15 section (d)’’. 

16 (2) Section 415(b)(2)(H)(i) of such Code is 

17 amended by adding at the end the following: ‘‘or a 

18 public safety agency described in the last sentence of 

19 section 414(d),’’. 

20 (3) Section 415(b)(2)(H)(ii)(I) of such Code is 

21 amended by striking ‘‘or any political subdivision’’ 

22 and inserting ‘‘any political subdivision, or a public 

23 safety agency described in the last sentence of sec24 tion 414(d)’’. 


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1 (4) Section 415(b)(10)(A) of such Code is 

2 amended by striking ‘‘described in the last sentence 

3 of section 414(d) (relating to plans of Indian tribal 

4 governments)’’ and inserting ‘‘described in either of 

5 the last two sentences of section 414(d)’’. 

6 (d) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to plan years beginning after the 

8 date of the enactment of this Act. 

9 TITLE II—PRESERVATION OF 

10 INCOME 

11 SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION 

12 BARRIERS FOR LIFE ANNUITIES. 

13 (a) IN GENERAL.—Paragraph (9) of section 401(a) 

14 of the Internal Revenue Code of 1986 is amended by add15 ing at the end the following new subparagraph: 

16 ‘‘(J) CERTAIN INCREASES IN PAYMENTS

17 UNDER A COMMERCIAL ANNUITY.—Nothing in 

18 this section shall prohibit a commercial annuity 

19 (within the meaning of section 3405(e)(6)) that 

20 is issued in connection with any eligible retire21 ment plan (within the meaning of section 

22 402(c)(8)(B), other than a defined benefit plan) 

23 from providing one or more of the following 

24 types of payments on or after the annuity start25 ing date: 


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1 ‘‘(i) annuity payments that increase 

2 by a constant percentage, applied not less 

3 frequently than annually, at a rate that is 

4 less than 5 percent per year, 

5 ‘‘(ii) a lump sum payment that— 

6 ‘‘(I) results in a shortening of the 

7 payment period with respect to an an8 nuity or a full or partial commutation 

9 of the future annuity payments, pro10 vided that such lump sum is deter11 mined using reasonable actuarial 

12 methods and assumptions, as deter13 mined in good faith by the issuer of 

14 the contract, or 

15 ‘‘(II) accelerates the receipt of 

16 annuity payments that are scheduled 

17 to be received within the ensuing 12 

18 months, regardless of whether such 

19 acceleration shortens the payment pe20 riod with respect to the annuity, re21 duces the dollar amount of benefits to 

22 be paid under the contract, or results 

23 in a suspension of annuity payments 

24 during the period being accelerated, 


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1 ‘‘(iii) an amount which is in the na2 ture of a dividend or similar distribution, 

3 provided that the issuer of the contract de4 termines such amount based on a reason5 able comparison of the actuarial factors as6 sumed when calculating the initial annuity 

7 payments and the issuer’s experience with 

8 respect to those factors, or 

9 ‘‘(iv) a final payment upon death that 

10 does not exceed the excess of the total 

11 amount of the consideration paid for the 

12 annuity payments, less the aggregate 

13 amount of prior distributions or payments 

14 from or under the contract.’’. 

15 (b) REGULATIONS AND ENFORCEMENT.— 

16 (1) REGULATIONS.—By the date that is one 

17 year after the date of enactment of this Act, the 

18 Secretary of the Treasury shall amend the regula19 tion issued by the Department of the Treasury relat20 ing to ‘‘Required Distributions from Retirement 

21 Plans’’, 69 Fed. Reg. 33288 (June 15, 2004), and 

22 make any corresponding amendments to other regu23 lations, in order to— 

24 (A) conform such regulations to subsection 

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1 ments described in subsection (a) from the 

2 scope of the requirement in Q&A–14(c) of 

3 Treasury Regulation section 1.401(a)(9)–6 that 

4 the total future expected payments must exceed 

5 the total value being annuitized; 

6 (B) amend Q&A–14(c) of Treasury Regu7 lation section 1.401(a)(9)–6 to provide that a 

8 commercial annuity that provides an initial pay9 ment that is at least equal to the initial pay10 ment that would be required from an individual 

11 account pursuant to Treasury Regulation sec12 tion 1.401(a)(9)–5 will be deemed to satisfy the 

13 requirement in Q&A–14(c) of Treasury Regula14 tion section 1.401(a)(9)–6 that the total future 

15 expected payments must exceed the total value 

16 being annuitized; and 

17 (C) amend Q&A–14(e)(3) of Treasury Reg18 ulation section 1.401(a)(9)–6 to provide that 

19 the total future expected payments under a 

20 commercial annuity are determined using the 

21 tables or other actuarial assumptions that the 

22 issuer of the contract actually uses in pricing 

23 the premiums and benefits with respect to the 

24 contract, provided that such tables or other ac25 tuarial assumptions are reasonable. 


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1 (2) ENFORCEMENT.—As of the date of enact2 ment of this Act, the Secretary of the Treasury shall 

3 administer and enforce the law in accordance with 

4 subsections (a) and (b). 

5 (c) EFFECTIVE DATE.—This section shall take effect 

6 on the date of the enactment of this Act. 

7 SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 

8 (a) IN GENERAL.—Not later than the date which is 

9 1 year after the date of the enactment of this Act, the 

10 Secretary of the Treasury or the Secretary’s delegate 

11 (hereafter in this section referred to as the ‘‘Secretary’’) 

12 shall amend the regulation issued by the Department of 

13 the Treasury relating to ‘‘Longevity Annuity Contracts’’ 

14 (79 Fed. Reg. 37633 (July 2, 2014)), as follows: 

15 (1) REPEAL 25-PERCENT PREMIUM LIMIT.—The 

16 Secretary shall amend Q&A–17(b)(3) of Treasury 

17 Regulation section 1.401(a)(9)–6 and Q&A–12(b)(3) 

18 of Treasury Regulation section 1.408–8 to eliminate 

19 the requirement that premiums for qualifying lon20 gevity annuity contracts be limited to a percentage 

21 of an individual’s account balance, and to make such 

22 corresponding changes to the regulations and related 

23 forms as are necessary to reflect the elimination of 

24 this requirement. 

25 (2) INCREASE DOLLAR LIMITATION.— 


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1 (A) IN GENERAL.—The Secretary shall 

2 amend Q&A–17(b)(2)(i) of Treasury Regulation 

3 section 1.401(a)(9)–6 and Q&A–12(b)(2)(i) of 

4 Treasury Regulation section 1.408–8 to in5 crease the dollar limitation on premiums for 

6 qualifying longevity annuity contracts from 

7 $125,000 to $200,000, and to make such cor8 responding changes to the regulations and re9 lated forms as are necessary to reflect this in10 crease in the dollar limitation. 

11 (B) ADJUSTMENTS FOR INFLATION.—The 

12 Secretary shall amend Q&A–17(d)(2)(i) of 

13 Treasury Regulation section 1.401(a)(9)–6 to 

14 provide that, in the case of calendar years be15 ginning on or after January 1 of the second 

16 year following the year of enactment of this 

17 Act, the $200,000 dollar limitation (as in18 creased by subparagraph (A)) will be adjusted 

19 at the same time and in the same manner as 

20 the limits are adjusted under section 415(d) of 

21 the Internal Revenue Code of 1986, except that 

22 the base period shall be the calendar quarter 

23 beginning July 1 of the year of enactment of 

24 this Act, and any increase to such dollar limitaVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 tion which is not a multiple of $10,000 will be 

2 rounded to the next lowest multiple of $10,000. 

3 (3) FACILITATE JOINT AND SURVIVOR BENE4 FITS.—The Secretary shall amend Q&A–17(c) of 

5 Treasury Regulation section 1.401(a)(9)–6, and 

6 make such corresponding changes to the regulations 

7 and related forms as are necessary, to provide that, 

8 in the case of a qualifying longevity annuity contract 

9 which was purchased with joint and survivor annuity 

10 benefits for the individual and the individual’s 

11 spouse which were permissible under the regulations 

12 at the time the contract was originally purchased, a 

13 divorce occurring after the original purchase and be14 fore the annuity payments commence under the con15 tract will not affect the permissibility of the joint 

16 and survivor annuity benefits or other benefits under 

17 the contract, or require any adjustment to the 

18 amount or duration of benefits payable under the 

19 contract, provided that any qualified domestic rela20 tions order (within the meaning of section 414(p) of 

21 the Internal Revenue Code of 1986) or any divorce 

22 or separation instrument (as defined in subsection 

23 (b))— 


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1 (A) provides that the former spouse is en2 titled to the survivor benefits under the con3 tract; 

4 (B) does not modify the treatment of the 

5 former spouse as the beneficiary under the con6 tract who is entitled to the survivor benefits; or 

7 (C) does not modify the treatment of the 

8 former spouse as the measuring life for the sur9 vivor benefits under the contract. 

10 (4) PERMIT SHORT FREE LOOK PERIOD.—The 

11 Secretary shall amend Q&A–17(a)(4) of Treasury 

12 Regulation section 1.401(a)(9)–6 to ensure that 

13 such Q&A does not preclude a contract from includ14 ing a provision under which an employee may re15 scind the purchase of the contract within a period 

16 not exceeding 90 days from the date of purchase. 

17 (b) DIVORCE OR SEPARATION INSTRUMENT.—For 

18 purposes of subsection (a)(3), the term ‘‘divorce or separa19 tion instrument’’ means— 

20 (1) a decree of divorce or separate maintenance 

21 or a written instrument incident to such a decree, 

22 (2) a written separation agreement, or 

23 (3) a decree (not described in paragraph (1)) 

24 requiring a spouse to make payments for the sup25 port or maintenance of the other spouse. 


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1 (c) EFFECTIVE DATES, ENFORCEMENT, AND INTER2 PRETATIONS.— 

3 (1) EFFECTIVE DATES.— 

4 (A) Paragraphs (1) and (2) of subsection 

5 (a) shall be effective with respect to contracts 

6 purchased or received in an exchange on or 

7 after the date of the enactment of this Act. 

8 (B) Paragraphs (3) and (4) of subsection 

9 (a) shall be effective with respect to contracts 

10 purchased or received in an exchange on or 

11 after July 2, 2014. 

12 (2) ENFORCEMENT AND INTERPRETATIONS.— 

13 Prior to the date on which the Secretary issues final 

14 regulations pursuant to subsection (a)— 

15 (A) the Secretary (or delegate) shall ad16 minister and enforce the law in accordance with 

17 subsection (a) and the effective dates in para18 graph (1) of this subsection; and 

19 (B) taxpayers may rely upon their reason20 able good faith interpretations of subsection (a). 

21 SEC. 203. INSURANCE-DEDICATED EXCHANGE-TRADED 

22 FUNDS. 

23 (a) IN GENERAL.—Not later than the date which is 

24 1 year after the date of the enactment of this Act, the 

25 Secretary of the Treasury (or the Secretary’s delegate) 


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1 shall amend the regulation issued by the Department of 

2 the Treasury relating to ‘‘Income Tax; Diversification Re3 quirements for Variable Annuity, Endowment, and Life 

4 Insurance Contracts’’, 54 Fed. Reg. 8728 (March 2, 

5 1989), and make any necessary corresponding amend6 ments to other regulations, in order to facilitate the use 

7 of exchange-traded funds as investment options under 

8 variable contracts within the meaning of section 817(d) 

9 of the Internal Revenue Code of 1986, in accordance with 

10 subsections (b) and (c) of this section. 

11 (b) DESIGNATE CERTAIN AUTHORIZED PARTICI12 PANTS AND MARKET MAKERS AS ELIGIBLE INVESTORS.— 

13 The Secretary of the Treasury (or the Secretary’s dele14 gate) shall amend Treas. Reg. section 1.817–5(f)(3) to 

15 provide that satisfaction of the requirements in Treas. 

16 Reg. section 1.817–5(f)(2)(i) with respect to an exchange17 traded fund shall not be prevented by reason of beneficial 

18 interests in such a fund being held by 1 or more author19 ized participants or market makers. 

20 (c) CONFIRM THAT SIMILARITIES TO OTHER FUNDS

21 ARE IRRELEVANT.—The Secretary of the Treasury (or 

22 the Secretary’s delegate) shall amend Treas. Reg. section 

23 1.817–5(f) to confirm that, for Federal income tax pur24 poses, a regulated investment company, partnership, or 

25 trust (including an exchange-traded fund) that satisfies 


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1 the requirements of Treas. Reg. section 1.817–5(f) (2) 

2 and (3) shall not be treated as owned by the holder of 

3 a variable contract pursuant to the principles of Rev. Rul. 

4 81–225, 1981–2 C.B. 12, merely because another regu5 lated investment company, partnership, trust, or similar 

6 investment vehicle follows the same investment strategy, 

7 has the same investment manager, or holds the same in8 vestments. 

9 (d) DEFINE RELEVANT TERMS.—In amending 

10 Treas. Reg. section 1.817–5(f)(3) in accordance with sub11 sections (b) and (c) of this section, the Secretary of the 

12 Treasury (or the Secretary’s delegate) shall provide defini13 tions consistent with the following: 

14 (1) EXCHANGE-TRADED FUND.—The term ‘‘ex15 change-traded fund’’ means a regulated investment 

16 company, partnership, or trust— 

17 (A) that is registered with the Securities 

18 and Exchange Commission as an open-end in19 vestment company or a unit investment trust; 

20 (B) the shares of which can be purchased 

21 or redeemed directly from the fund only by an 

22 authorized participant; and 

23 (C) the shares of which are traded 

24 throughout the day on a national stock ex25 change at market prices that may or may not 


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1 be the same as the net asset value of the 

2 shares. 

3 (2) AUTHORIZED PARTICIPANT.—The term 

4 ‘‘authorized participant’’ means a financial institu5 tion that is a member or participant of a clearing 

6 agency registered under section 17A(b) of the Secu7 rities Exchange Act of 1934 that enters into a con8 tractual relationship with an exchange-traded fund 

9 pursuant to which the financial institution is per10 mitted to purchase and redeem shares directly from 

11 the fund and to sell such shares to third parties, but 

12 only if the contractual arrangement or applicable law 

13 precludes the financial institution from— 

14 (A) purchasing the shares for its own in15 vestment purposes rather than for the exclusive 

16 purpose of creating and redeeming such shares 

17 on behalf of third parties; and 

18 (B) selling the shares to third parties who 

19 are not market makers or otherwise described 

20 in Treas. Reg. section 1.817–5(f) (1) and (3). 

21 (3) MARKET MAKER.—The term ‘‘market 

22 maker’’ means a financial institution that is a reg23 istered broker or dealer under section 15(b) of the 

24 Securities Exchange Act of 1934 that maintains li25 quidity for an exchange-traded fund on a national 


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1 stock exchange by being always ready to buy and sell 

2 shares of such fund on the market, but only if the 

3 financial institution is contractually or legally pre4 cluded from selling or buying such shares to or from 

5 persons who are not authorized participants or oth6 erwise described in Treas. Reg. section 1.817–5(f) 

7 (2) and (3). 

8 (e) EFFECTIVE DATES, ENFORCEMENT, AND INTER9 PRETATIONS.— 

10 (1) EFFECTIVE DATES.— 

11 (A) SUBSECTION (b).—Subsection (b), and 

12 the definitions under subsection (d), shall apply 

13 to segregated asset account investments made 

14 on or after the earlier of— 

15 (i) the date that is 18 months after 

16 the date of the of enactment of this Act, 

17 or 

18 (ii) the date on which the amend19 ments to regulations under subsection (b) 

20 are made. 

21 (B) SUBSECTION (c).—Subsection (c) shall 

22 apply to taxable years beginning after the date 

23 of the enactment of this Act. 

24 (2) ENFORCEMENT AND INTERPRETATIONS.— 

25 Prior to the date that the Secretary of the Treasury 


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1 (or the Secretary’s delegate) issues final regulations 

2 pursuant to this section— 

3 (A) the Secretary (or delegate) shall ad4 minister and enforce the law in accordance with 

5 this section and the effective dates under para6 graph (1), and 

7 (B) taxpayers may rely upon their reason8 able good faith interpretations of the preceding 

9 subsections of this section. 

10 (3) NO INFERENCE.—Nothing contained in the 

11 amendments to regulations pursuant to subsection 

12 (c), or the administration and enforcement of such 

13 subsection under paragraph (2), shall be construed 

14 to create any inference as to a change in law or 

15 guidance in effect prior to enactment of this section. 

16 TITLE III—SIMPLIFICATION AND 

17 CLARIFICATION OF RETIRE18 MENT PLAN RULES 

19 SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAY20 MENTS. 

21 (a) OVERPAYMENTS UNDER INTERNAL REVENUE

22 CODE OF 1986.— 

23 (1) QUALIFICATION REQUIREMENTS.—Section 

24 414 of the Internal Revenue Code of 1986, as 

25 amended by the preceding provisions of this Act, is 


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1 further amended by adding at the end the following 

2 new subsection: 

3 ‘‘(bb) SPECIAL RULES APPLICABLE TO BENEFIT

4 OVERPAYMENTS.— 

5 ‘‘(1) IN GENERAL.—A plan shall not fail to be 

6 treated as described in clause (i), (ii), (iii), or (iv) 

7 of section 219(g)(5)(A) (and shall not fail to be 

8 treated as satisfying the requirements of section 

9 401(a) or 403) merely because— 

10 ‘‘(A) the plan fails to obtain payment from 

11 any participant, beneficiary, employer, plan 

12 sponsor, fiduciary, or other party on account of 

13 any inadvertent benefit overpayment made by 

14 the plan, or 

15 ‘‘(B) the plan sponsor amends the plan to 

16 increase past or future benefit payments to af17 fected participants and beneficiaries in order to 

18 adjust for prior inadvertent benefit overpay19 ments. 

20 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY21 MENTS AND RECOVERY FROM RESPONSIBLE

22 PARTY.—Paragraph (1) shall not fail to apply to a 

23 plan merely because, after discovering a benefit over24 payment, such plan— 


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1 ‘‘(A) reduces future benefit payments to 

2 the correct amount provided for under the 

3 terms of the plan, or 

4 ‘‘(B) seeks recovery from the person or 

5 persons responsible for such overpayment. 

6 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

7 Nothing in this subsection shall relieve an employer 

8 of any obligation imposed on it to make contribu9 tions to a plan to meet the minimum funding stand10 ards under section 412 or to prevent or restore an 

11 impermissible forfeiture in accordance with section 

12 411. 

13 ‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS.— 

14 Notwithstanding paragraph (1), a plan to which 

15 paragraph (1) applies shall observe any limitations 

16 imposed on it by section 401(a)(17) or 415. The 

17 plan may enforce such limitations using any method 

18 approved by the Secretary for recouping benefits 

19 previously paid or allocations previously made in ex20 cess of such limitations. 

21 ‘‘(5) COORDINATION WITH OTHER QUALIFICA22 TION REQUIREMENTS.—The Secretary may issue 

23 regulations or other guidance of general applicability 

24 specifying how benefit overpayments and their 

25 recoupment or non-recoupment from a participant or 


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1 beneficiary shall be taken into account for purposes 

2 of satisfying any requirement applicable to a plan to 

3 which paragraph (1) applies.’’. 

4 (2) ROLLOVERS.—Section 402(c) of such Code 

5 is amended by adding at the end the following new 

6 paragraph: 

7 ‘‘(13) In the case of an inadvertent benefit 

8 overpayment from a plan to which section 

9 414(bb)(1) applies which is transferred to an eligible 

10 retirement plan by or on behalf of a participant or 

11 beneficiary— 

12 ‘‘(A) the portion of such overpayment with 

13 respect to which recoupment is not sought on 

14 behalf of the plan shall be treated as having 

15 been paid in an eligible rollover distribution if 

16 the payment would have been an eligible roll17 over distribution but for being an overpayment, 

18 and 

19 ‘‘(B) the portion of such overpayment with 

20 respect to which recoupment is sought on behalf 

21 of the plan shall be permitted to be returned to 

22 such plan and in such case shall be treated as 

23 an eligible rollover distribution transferred to 

24 such plan by the participant or beneficiary who 

25 received such overpayment (and the plans makVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 ing and receiving such transfer shall be treated 

2 as permitting such transfer). 

3 In any case in which recoupment is sought on behalf 

4 of the plan but is disputed by the participant or ben5 eficiary who received such overpayment, such dispute 

6 shall be subject to the claims and appeals procedures 

7 of the plan that made such overpayment, such plan 

8 shall notify the plan receiving the rollover of such 

9 dispute, and the plan receiving the rollover shall re10 tain such overpayment on behalf of the participant 

11 or beneficiary (and shall be entitled to treat such 

12 overpayment as plan assets) pending the outcome of 

13 such procedures.’’. 

14 (b) OVERPAYMENTS UNDER ERISA.—Section 206 of 

15 the Employee Retirement Income Security Act of 1974 

16 (29 U.S.C. 1056) is amended by adding at the end the 

17 following new subsection: 

18 ‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT

19 OVERPAYMENTS.— 

20 ‘‘(1) GENERAL RULE.—In the case of an inad21 vertent benefit overpayment by any pension plan, the 

22 responsible plan fiduciary shall not be considered to 

23 have failed to comply with the requirements of this 

24 title merely because such fiduciary determines, in 


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1 the exercise of its fiduciary discretion, not to seek 

2 recovery of all or part of such overpayment from— 

3 ‘‘(A) any participant or beneficiary, 

4 ‘‘(B) any plan sponsor of, or contributing 

5 employer to— 

6 ‘‘(i) an individual account plan, pro7 vided that the amount needed to prevent or 

8 restore any impermissible forfeiture from 

9 any participant’s or beneficiary’s account 

10 arising in connection with the overpayment 

11 is, separately from and independently of 

12 the overpayment, allocated to such account 

13 pursuant to the nonforfeitability require14 ments of section 203 (for example, out of 

15 the plan’s forfeiture account, additional 

16 employer contributions, or recoveries from 

17 those responsible for the overpayment), or 

18 ‘‘(ii) a defined benefit pension plan 

19 subject to the funding rules in part 3 of 

20 this subtitle B, unless the responsible plan 

21 fiduciary determines, in the exercise of its 

22 fiduciary discretion, that failure to recover 

23 all or part of the overpayment faster than 

24 required under such funding rules would 

25 materially affect the plan’s ability to pay 


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1 benefits due to other participants and 

2 beneficiaries, or 

3 ‘‘(C) any fiduciary of the plan, other than 

4 a fiduciary (including a plan sponsor or contrib5 uting employer acting in a fiduciary capacity) 

6 whose breach of its fiduciary duties resulted in 

7 such overpayment, provided that if the plan has 

8 established prudent procedures to prevent and 

9 minimize overpayment of benefits and the rel10 evant plan fiduciaries have followed such proce11 dures, an inadvertent benefit overpayment will 

12 not give rise to a breach of fiduciary duty. 

13 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY14 MENTS AND RECOVERY FROM RESPONSIBLE

15 PARTY.—Paragraph (1) shall not fail to apply with 

16 respect to any inadvertent benefit overpayment 

17 merely because, after discovering such overpayment, 

18 the responsible plan fiduciary— 

19 ‘‘(A) reduces future benefit payments to 

20 the correct amount provided for under the 

21 terms of the plan, or 

22 ‘‘(B) seeks recovery from the person or 

23 persons responsible for the overpayment. 

24 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

25 Nothing in this subsection shall relieve an employer 


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1 of any obligation imposed on it to make contribu2 tions to a plan to meet the minimum funding stand3 ards under part 3 of this subtitle B or to prevent 

4 or restore an impermissible forfeiture in accordance 

5 with section 203. 

6 ‘‘(4) RECOUPMENT FROM PARTICIPANTS AND

7 BENEFICIARIES.—If the responsible plan fiduciary, 

8 in the exercise of its fiduciary discretion, decides to 

9 seek recoupment from a participant or beneficiary of 

10 all or part of an inadvertent benefit overpayment 

11 made by the plan to such participant or beneficiary, 

12 it may do so, subject to the following conditions: 

13 ‘‘(A) No interest or other additional 

14 amounts (such as collection costs or fees) are 

15 sought on overpaid amounts. 

16 ‘‘(B) If the plan seeks to recoup past over17 payments of a non-decreasing periodic benefit 

18 by reducing future benefit payments— 

19 ‘‘(i) the reduction ceases after the 

20 plan has recovered the full dollar amount 

21 of the overpayment, 

22 ‘‘(ii) the amount recouped each cal23 endar year does not exceed 10 percent of 

24 the full dollar amount of the overpayment, 

25 and 


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1 ‘‘(iii) future benefit payments are not 

2 reduced to below 90 percent of the periodic 

3 amount otherwise payable under the terms 

4 of the plan. 

5 Alternatively, if the plan seeks to recoup past 

6 overpayments of a non-decreasing periodic ben7 efit through one or more installment payments, 

8 the sum of such installment payments in any 

9 calendar year does not exceed the sum of the 

10 reductions that would be permitted in such year 

11 under the preceding sentence. 

12 ‘‘(C) If the plan seeks to recoup past over13 payments of a benefit other than a non-decreas14 ing periodic benefit, the plan satisfies require15 ments developed by the Secretary of the Treas16 ury for purposes of this subparagraph. 

17 ‘‘(D) Efforts to recoup overpayments are 

18 not made through a collection agency or similar 

19 third party and such efforts are not accom20 panied by threats of litigation, unless the re21 sponsible plan fiduciary reasonably believes it 

22 could prevail in a civil action brought in Fed23 eral or State court to recoup the overpayments. 

24 ‘‘(E) Recoupment of past overpayments to 

25 a participant is not sought from any beneficiary 


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1 of the participant, including a spouse, surviving 

2 spouse, former spouse, or other beneficiary. 

3 ‘‘(F) Recoupment may not be sought if the 

4 first overpayment occurred more than 3 years 

5 before the participant or beneficiary is first no6 tified in writing of the error. 

7 ‘‘(G) A participant or beneficiary from 

8 whom recoupment is sought is entitled to con9 test all or part of the recoupment pursuant to 

10 the plan’s claims and appeals procedures. 

11 ‘‘(H) In determining the amount of 

12 recoupment to seek, the responsible plan fidu13 ciary may take into account the hardship that 

14 recoupment likely would impose on the partici15 pant or beneficiary. 

16 ‘‘(5) EFFECT OF CULPABILITY.—Subpara17 graphs (A) through (F) of paragraph (4) shall not 

18 apply to protect a participant or beneficiary who is 

19 culpable. For purposes of this paragraph, a partici20 pant or beneficiary is culpable if the individual bears 

21 responsibility for the overpayment (such as through 

22 misrepresentations or omissions that led to the over23 payment), or if the individual knew, or had good 

24 reason to know under the circumstances, that the 

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1 cess of the correct amount. Notwithstanding the pre2 ceding sentence, an individual is not culpable merely 

3 because the individual believed the benefit payment 

4 or payments were or might be in excess of the cor5 rect amount, if the individual raised that question 

6 with an authorized plan representative and was told 

7 the payment or payments were not in excess of the 

8 correct amount. With respect to a culpable partici9 pant or beneficiary, efforts to recoup overpayments 

10 shall not be made through threats of litigation, un11 less a lawyer for the plan could make the representa12 tions required under Rule 11 of the Federal Rules 

13 of Civil Procedure if the litigation were brought in 

14 Federal court.’’. 

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

16 this section shall apply as of the date of the enactment 

17 of this Act. 

18 (d) CERTAIN ACTIONS BEFORE DATE OF ENACT19 MENT.—Plans, fiduciaries, employers, and plan sponsors 

20 are entitled to rely on— 

21 (1) a good faith interpretation of then existing 

22 administrative guidance for inadvertent benefit over23 payment recoupments and recoveries that com24 menced before the date of enactment of this Act, 

25 and 


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1 (2) determinations made before such date of en2 actment by the responsible plan fiduciary, in the ex3 ercise of its fiduciary discretion, not to seek 

4 recoupment or recovery of all or part of an inad5 vertent benefit overpayment. 

6 In the case of a benefit overpayment that occurred prior 

7 to the date of enactment of this Act, any installment pay8 ments by the participant or beneficiary to the plan or any 

9 reduction in periodic benefit payments to the participant 

10 or beneficiary, which were made in recoupment of such 

11 overpayment and which commenced prior to such date, 

12 may continue after such date. Nothing in this subsection 

13 shall relieve a fiduciary from responsibility for an overpay14 ment that resulted from a breach of its fiduciary duties. 

15 SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCU16 MULATIONS IN QUALIFIED RETIREMENT 

17 PLANS. 

18 (a) IN GENERAL.—Subsection (a) of section 4974 of 

19 the Internal Revenue Code of 1986 is amended by striking 

20 ‘‘50 percent’’ and inserting ‘‘25 percent’’. 

21 (b) REDUCTION IN EXCISE TAX ON FAILURES TO

22 TAKE REQUIRED MINIMUM DISTRIBUTIONS.—Section 

23 4974 of such Code is amended by adding at the end the 

24 following new subsection: 

25 ‘‘(e) REDUCTION OF TAX IN CERTAIN CASES.— 


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1 ‘‘(1) REDUCTION.—In the case of a taxpayer 

2 who— 

3 ‘‘(A) corrects, during the correction win4 dow, a shortfall of distributions from an indi5 vidual retirement plan which resulted in imposi6 tion of a tax under subsection (a), and 

7 ‘‘(B) submits a return, during the correc8 tion window, reflecting such tax (as modified by 

9 this subsection), 

10 the first sentence of subsection (a) shall be applied 

11 by substituting ‘10 percent’ for ‘25 percent’. 

12 ‘‘(2) CORRECTION WINDOW.—For purposes of 

13 this subsection, the term ‘correction window’ means 

14 the period of time beginning on the date on which 

15 the tax under subsection (a) is imposed with respect 

16 to a shortfall of distributions from an individual re17 tirement plan, and ending on the earlier of— 

18 ‘‘(A) the date on which the Secretary initi19 ates an audit, or otherwise demands payment, 

20 with respect to the shortfall of distributions, or 

21 ‘‘(B) the last day of the second taxable 

22 year that begins after the end of the taxable 

23 year in which the tax under subsection (a) is 

24 imposed.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2020. 

4 SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLO5 CATION FUNDS. 

6 (a) IN GENERAL.—Not later than 6 months after the 

7 date of the enactment of this Act, the Secretary of Labor 

8 (or the Secretary’s delegate) shall modify the regulations 

9 under section 404 of the Employee Retirement Income Se10 curity Act of 1974 (29 U.S.C. 1104) to provide that, in 

11 the case of a designated investment alternative which con12 tains a mix of asset classes, a plan administrator may, 

13 but is not required to, use a benchmark which is a blend 

14 of different broad-based securities market indices if— 

15 (1) the blend is reasonably representative of the 

16 asset class holdings of the designated investment al17 ternative; 

18 (2) for purposes of determining the blend’s re19 turns for 1-, 5-, and 10-calendar-year periods (or for 

20 the life of the alternative, if shorter), the blend is 

21 modified at least once per year to reflect changes in 

22 the asset class holdings of the designated investment 

23 alternative; 


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1 (3) the blend is furnished to participants and 

2 beneficiaries in a manner that is reasonably designed 

3 to be understandable and helpful; and 

4 (4) each securities market index which is used 

5 for an associated asset class would separately satisfy 

6 the requirements of such regulations for such asset 

7 class. 

8 (b) STUDY.—Not later than December 31, 2021, the 

9 Secretary of Labor (or the Secretary’s delegate) shall de10 liver a report to the Committees on Ways and Means and 

11 Education and Labor of the House of Representatives and 

12 the Committees on Finance and Health, Education, 

13 Labor, and Pensions of the Senate regarding the effective14 ness of the benchmarking requirements under section 

15 2550.404a–5 of title 29, Code of Federal Regulations. 

16 SEC. 304. REVIEW AND REPORT TO THE CONGRESS RELAT17 ING TO REPORTING AND DISCLOSURE RE18 QUIREMENTS. 

19 (a) STUDY.—As soon as practicable after the date of 

20 the enactment of this Act, the Secretary of Labor, the Sec21 retary of the Treasury, and the Pension Benefit Guaranty 

22 Corporation shall review the reporting and disclosure re23 quirements of— 


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1 (1) title I of the Employee Retirement Income 

2 Security Act of 1974 applicable to pension plans (as 

3 defined in section 3(2) of such Act); and 

4 (2) the Internal Revenue Code of 1986 applica5 ble to qualified retirement plans (as defined in sec6 tion 4974(c) of such Code without regard to para7 graphs (4) and (5) thereof). 

8 (b) REPORT.—Not later than 18 months after the 

9 date of the enactment of this Act, the Secretary of Labor, 

10 the Secretary of the Treasury, and the Pension Benefit 

11 Guaranty Corporation, jointly, and after consultation with 

12 a balanced group of participant and employer representa13 tives, shall with respect to plans referenced in subsection 

14 (a) report on the effectiveness of the applicable reporting 

15 and disclosure requirements and make such recommenda16 tions as may be appropriate to the appropriate committees 

17 of the Congress to consolidate, simplify, standardize, and 

18 improve such requirements so as to simplify reporting for 

19 such plans and ensure that plans can simply furnish and 

20 participants and beneficiaries timely receive and better un21 derstand the information they need to monitor their plans, 

22 plan for retirement, and obtain the benefits they have 

23 earned. Such report shall assess the extent to which retire24 ment plans are retaining disclosures, work records, and 

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1 culation of future benefits. To assess the effectiveness of 

2 the applicable reporting and disclosure requirements, the 

3 report shall include an analysis, based on plan data, of 

4 how participants and beneficiaries are providing preferred 

5 contact information, the methods by which plan sponsors 

6 and plans are furnishing disclosures, and the rate at which 

7 participants and beneficiaries (grouped by key demo8 graphics) are receiving, accessing, and retaining disclo9 sures. The agencies shall conduct appropriate surveys and 

10 data collection to obtain any needed information. 

11 SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIRE12 MENTS RELATED TO UNENROLLED PARTICI13 PANTS. 

14 (a) AMENDMENT OF INTERNAL REVENUE CODE OF

15 1986.—Section 414 of the Internal Revenue Code of 

16 1986, as amended by the preceding provisions of this Act, 

17 is further amended by adding at the end the following new 

18 subsection: 

19 ‘‘(cc) ELIMINATING UNNECESSARY PLAN REQUIRE20 MENTS RELATED TO UNENROLLED PARTICIPANTS.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding any other 

22 provision of this title, with respect to any defined 

23 contribution plan, no disclosure, notice, or other plan 

24 document (other than the notices and documents de25 scribed in subparagraphs (A) and (B)) shall be reVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 quired to be furnished under this title to any 

2 unenrolled participant if the unenrolled participant 

3 receives— 

4 ‘‘(A) in connection with the annual open 

5 season election period with respect to the plan 

6 or, if there is no such period, within a reason7 able period prior to the beginning of each plan 

8 year, an annual reminder notice (in paper for9 mat, or in any electronic format consented to by 

10 the participant) of such participant’s eligibility 

11 to participate in such plan and any applicable 

12 election deadlines under the plan, and 

13 ‘‘(B) any document requested by such par14 ticipant which the participant would be entitled 

15 to receive without regard to this subsection. 

16 ‘‘(2) UNENROLLED PARTICIPANT.—For pur17 poses of this subsection, the term ‘unenrolled partici18 pant’ means an employee who— 

19 ‘‘(A) is eligible to participate in a defined 

20 contribution plan, 

21 ‘‘(B) has been furnished all required no22 tices, disclosures, and other plan documents re23 quired to be furnished under this title and the 

24 summary plan description as provided in section 

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1 curity Act of 1974 in connection with such par2 ticipant’s initial eligibility to participate in such 

3 plan, 

4 ‘‘(C) is not participating in such plan, and 

5 ‘‘(D) does not have a balance in the plan. 

6 For purposes of this subsection, any eligibility to 

7 participate in the plan following any period for 

8 which such employee was not eligible to participate 

9 shall be treated as initial eligibility. 

10 ‘‘(3) ANNUAL REMINDER NOTICE.—For pur11 poses of this subsection, the term ‘annual reminder 

12 notice’ means the notice described in section 111(c) 

13 of the Employee Retirement Income Security Act of 

14 1974.’’. 

15 (b) AMENDMENT OF EMPLOYEE RETIREMENT IN16 COME SECURITY ACT OF 1974.— 

17 (1) IN GENERAL.—Part 1 of subtitle B of sub18 chapter I of the Employee Retirement Income Secu19 rity Act of 1974 is amended by redesignating section 

20 111 as section 112 and by inserting after section 

21 110 the following new section: 


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1 ‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE2 MENTS RELATED TO UNENROLLED PARTICI3 PANTS. 

4 ‘‘(a) IN GENERAL.—Notwithstanding any other pro5 vision of this title, with respect to any individual account 

6 plan, no disclosure, notice, or other plan document (other 

7 than the notices and documents described in paragraphs 

8 (1) and (2)) shall be required to be furnished under this 

9 title to any unenrolled participant if the unenrolled partici10 pant receives— 

11 ‘‘(1) in connection with the annual open season 

12 election period with respect to the plan or, if there 

13 is no such period, within a reasonable period prior 

14 to the beginning of each plan year, an annual re15 minder notice of such participant’s eligibility to par16 ticipate in such plan and any applicable election 

17 deadlines under the plan; and 

18 ‘‘(2) any document requested by such partici19 pant which the participant would be entitled to re20 ceive without regard to this section. 

21 ‘‘(b) UNENROLLED PARTICIPANT.—For purposes of 

22 this section, the term ‘unenrolled participant’ means an 

23 employee who— 

24 ‘‘(1) is eligible to participate in an individual 

25 account plan; 


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1 ‘‘(2) has received all required notices, disclo2 sures, and other plan documents, including the sum3 mary plan description, required to be furnished 

4 under this title in connection with such participant’s 

5 initial eligibility to participate in such plan; 

6 ‘‘(3) is not participating in such plan; and 

7 ‘‘(4) does not have a balance in the plan. 

8 For purposes of this section, any eligibility to participate 

9 in the plan following any period for which such employee 

10 was not eligible to participate shall be treated as initial 

11 eligibility. 

12 ‘‘(c) ANNUAL REMINDER NOTICE.—For purposes of 

13 this section, the term ‘annual reminder notice’ means a 

14 notice provided in accordance with section 2520.104b–1 

15 of title 29, Code of Federal Regulations (or any successor 

16 regulation), which— 

17 ‘‘(1) is furnished in connection with the annual 

18 open season election period with respect to the plan 

19 or, if there is no such period, is furnished within a 

20 reasonable period prior to the beginning of each plan 

21 year; 

22 ‘‘(2) notifies the unenrolled participant of— 

23 ‘‘(A) the unenrolled participant’s eligibility 

24 to participate in the plan; and 


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1 ‘‘(B) the key benefits under the plan and 

2 the key rights and features under the plan af3 fecting such benefits; and 

4 ‘‘(3) provides such information in a prominent 

5 manner calculated to be understood by the average 

6 participant.’’. 

7 (2) CLERICAL AMENDMENT.—The table of con8 tents in section 1 of the Employee Retirement In9 come Security Act of 1974 is amended by striking 

10 the item relating to section 111 and by inserting 

11 after the item relating to section 110 the following 

12 new items: 

‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled 

participants. 

‘‘Sec. 112. Repeal and effective date.’’. 

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

14 this section shall apply to plan years beginning after De15 cember 31, 2020. 

16 SEC. 306. RETIREMENT SAVINGS LOST AND FOUND. 

17 (a) RETIREMENT SAVINGS LOST AND FOUND.— 

18 (1) ESTABLISHMENT.— 

19 (A) IN GENERAL.—Not later than 2 years 

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

21 Secretary of Labor, the Secretary of the Treas22 ury, and the Secretary of Commerce, in co23 operation, shall establish an Office of the Re24 tirement Savings Lost and Found, which shall 


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1 develop and maintain an online searchable data2 base (to be managed by the Pension Benefit 

3 Guaranty Corporation) of unclaimed vested 

4 benefits of participants and beneficiaries in 

5 plans— 

6 (i) to allow an individual to search for 

7 information that enables the individual to 

8 locate the plan administrator of any plans 

9 with respect to which the individual is a 

10 participant or beneficiary, and to provide 

11 contact information for the plan adminis12 trator of any plan described in subpara13 graph (B) with respect to which the indi14 vidual may be entitled to a benefit; 

15 (ii) to allow the corporation to assist 

16 such an individual in locating any plan of 

17 the individual; and 

18 (iii) to allow the corporation to make 

19 any necessary changes to contact informa20 tion on record for the plan administrator 

21 based on any changes to the plan due to 

22 merger or consolidation of the plan with 

23 any other plan, division of the plan into 

24 two or more plans, bankruptcy, termi25 nation, change in name of the plan, change 


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1 in name or address of the plan adminis2 trator, or other causes. 

3 The Retirement Savings Lost and Found estab4 lished under this paragraph shall contain the 

5 information obtained by the corporation from 

6 the Internal Revenue Service regarding deferred 

7 vested benefits of separated participants and 

8 beneficiaries in plans as reported under section 

9 6057(d) of the Internal Revenue Code of 1986, 

10 as amended by this subsection, and the infor11 mation on missing participants collected as part 

12 of the corporation’s Missing Participant Pro13 gram established under section 4050 of the 

14 Employee Retirement Income Security Act of 

15 1974. 

16 (B) PLANS DESCRIBED.—A plan described 

17 in this subparagraph is a plan to which the 

18 vesting standards of section 203 of part 2 of 

19 subtitle B of title I of the Employee Retirement 

20 Income Security Act of 1974 apply. 

21 (2) ADMINISTRATION.—The Retirement Sav22 ings Lost and Found established under paragraph 

23 (1) shall provide individuals described in paragraph 

24 (1)(A) only with the ability to view contact informa25 tion for the plan administrator of any plan with reVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 spect to which the individual is a participant or ben2 eficiary, sufficient to allow the individual to locate 

3 the individual’s plan in order to recover any benefit 

4 owing to the individual under the plan. 

5 (3) CURRENT INFORMATION.— 

6 (A) IN GENERAL.—Paragraph (2) of sec7 tion 6057(a) of the Internal Revenue Code of 

8 1986 is amended— 

9 (i) in subparagraph (C)— 

10 (I) by striking ‘‘during such plan 

11 year’’ in clause (i) and inserting ‘‘dur12 ing the plan year immediately pre13 ceding such plan year’’; 

14 (II) by adding ‘‘and’’ at the end 

15 of clause (i); and 

16 (III) by striking clause (iii); 

17 (ii) by redesignating subparagraph 

18 (E) as subparagraph (G); 

19 (iii) by striking ‘‘and’’ at the end of 

20 subparagraph (D); and 

21 (iv) by inserting after subparagraph 

22 (D) the following new subparagraphs: 

23 ‘‘(E) the name and taxpayer identifying 

24 number of each participant or former partici25 pant in the plan— 


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

2 year, was reported under subparagraph 

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

4 described in subparagraph (C)(ii) were 

5 fully paid during the plan year, 

6 ‘‘(ii) with respect to whom any 

7 amount was distributed under section 

8 401(a)(31)(B) during the plan year, or 

9 ‘‘(iii) with respect to whom a deferred 

10 annuity contract was distributed during 

11 the plan year, 

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

13 participant to whom subparagraph (E) ap14 plies— 

15 ‘‘(i) in the case of a participant de16 scribed in clause (ii) thereof, the name and 

17 address of the designated trustee or issuer 

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

19 the account number of the individual re20 tirement plan to which the amount was 

21 distributed, and 

22 ‘‘(ii) in the case of a participant de23 scribed in clause (iii) thereof, the name 

24 and address of the issuer of such annuity 


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1 contract and the contract or certificate 

2 number, and’’. 

3 (B) RULES RELATING TO DIRECT TRUST4 EE-TO-TRUSTEE TRANSFERS.— 

5 (i) IN GENERAL.—Paragraph (6) of 

6 section 402(e) of such Code is amended— 

7 (I) by striking ‘‘TRANSFERS.— 

8 Any’’ and inserting ‘‘TRANSFERS.— 

9 ‘‘(A) IN GENERAL.—Any’’; and 

10 (II) by adding at the end the fol11 lowing new subparagraph: 

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

13 case of a distribution under section 

14 401(a)(31)(B), the plan administrator shall no15 tify the designated trustee or issuer described 

16 in clause (i) thereof that the transfer is a man17 datory distribution required by such section.’’. 

18 (ii) PENALTY.—Subsection (i) of sec19 tion 6652 of such Code is amended— 

20 (I) by striking ‘‘TO RECIPIENTS’’ 

21 in the heading and inserting ‘‘OR NO22 TIFICATION’’; 

23 (II) by striking ‘‘402(f),’’ and in24 serting ‘‘402(f) or a notification as re25 quired by section 402(e)(6)(B),’’; and 


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1 (III) by striking ‘‘such written 

2 explanation’’ and inserting ‘‘such writ3 ten explanation or notification’’. 

4 (iii) REPORTS.—Subsection (i) of sec5 tion 408 of such Code is amended— 

6 (I) by redesignating subpara7 graphs (A) and (B) of paragraph (2) 

8 as clauses (i) and (ii), respectively, 

9 and by moving such clauses 2 ems to 

10 the right; 

11 (II) by redesignating paragraphs 

12 (1) and (2) as subparagraphs (A) and 

13 (B), respectively, and by moving such 

14 subparagraphs 2 ems to the right; and 

15 (III) by striking ‘‘as the Sec16 retary prescribes’’ in subparagraph 

17 (B)(ii), as so redesignated, and all 

18 that follows through ‘‘a simple retire19 ment account’’ and inserting ‘‘as the 

20 Secretary prescribes. 

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

22 case of a simple retirement account’’; 

23 (IV) by striking ‘‘REPORTS.— 

24 The trustee of’’ and inserting ‘‘RE25 PORTS.— 


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

2 (V) by striking ‘‘under paragraph 

3 (2)’’ in paragraph (3), as redesignated 

4 by clause (iii), and inserting ‘‘under 

5 paragraph (1)(B)’’; and 

6 (VI) by inserting after paragraph 

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

9 paragraph: 

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

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

13 a transfer from the individual retirement plan to 

14 which the original transfer under such section was 

15 made to another individual retirement plan), the re16 port required by this subsection for the year of the 

17 transfer shall— 

18 ‘‘(A) identify such transfer as a mandatory 

19 distribution required by such section, 

20 ‘‘(B) include the name, address, and tax21 payer identifying number of the trustee or 

22 issuer of the individual retirement plan to which 

23 the amount is transferred, and 


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1 ‘‘(C) be filed with the Pension Benefit 

2 Guaranty Corporation as well as with the Sec3 retary.’’. 

4 (C) NOTIFICATION OF PARTICIPANTS UPON

5 SEPARATION.—Subsection (e) of section 6057 

6 of such Code is amended by inserting ‘‘, and a 

7 notice of the availability of, and the contact in8 formation for, the Retirement Savings Lost and 

9 Found established under section 306(a)(1) of 

10 the Securing a Strong Retirement Act of 2020’’ 

11 before the period at the end of the second sen12 tence. 

13 (D) EFFECTIVE DATE.—The amendments 

14 made by this paragraph shall apply to distribu15 tions made in, and returns and reports relating 

16 to, years beginning after the second December 

17 31 occurring after the date of the enactment of 

18 this Act. 

19 (4) COORDINATION WITH DISTRIBUTION RE20 QUIREMENTS, FIDUCIARY DUTIES, ETC.— 

21 (A) AMENDMENT OF INTERNAL REVENUE

22 CODE OF 1986.—Paragraph (9) of section 

23 401(a) of the Internal Revenue Code of 1986, 

24 as amended by the preceding provisions of this 


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1 Act, is further amended by adding at the end 

2 the following new subparagraph: 

3 ‘‘(K) COORDINATION WITH RETIREMENT

4 SAVINGS LOST AND FOUND.— 

5 ‘‘(i) IN GENERAL.—With respect to 

6 any lost or missing participant of a plan, 

7 the plan shall not be treated as failing to 

8 satisfy the requirements of this paragraph 

9 or any other requirement of this title which 

10 cannot be satisfied due to the plan’s inabil11 ity to locate the participant. 

12 ‘‘(ii) LOST OR MISSING PARTICI13 PANT.—For purposes of subclause (i), the 

14 term ‘lost or missing participant’ shall be 

15 defined in guidance to be issued jointly by 

16 the Internal Revenue Service, Department 

17 of the Treasury, the Employee Benefits 

18 Security Administration, Department of 

19 Labor, and the Pension Benefit Guaranty 

20 Corporation. Such guidance shall be so 

21 issued not later than 1 year after the date 

22 of the enactment of this subparagraph.’’. 

23 (B) AMENDMENT OF EMPLOYEE RETIRE24 MENT INCOME SECURITY ACT OF 1974.— 


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1 (i) IN GENERAL.—Section 404 of the 

2 Employee Retirement Income Security Act 

3 of 1974 (29 U.S.C. 1104) is amended by 

4 adding at the end the following new sub5 section: 

6 ‘‘(e) COORDINATION WITH RETIREMENT SAVINGS

7 LOST AND FOUND.— 

8 ‘‘(1) IN GENERAL.—With respect to any lost or 

9 missing participant of a plan, a fiduciary of the plan 

10 shall not be treated as failing to satisfy any require11 ment to search for or attempt to locate, or to pro12 vide any document or information to, such indi13 vidual, or any other requirement of this title which 

14 cannot be satisfied due to the plan’s inability to lo15 cate the participant. 

16 ‘‘(2) LOST OR MISSING PARTICIPANT.—For 

17 purposes of paragraph (1), the term ‘lost or missing 

18 participant’ shall be defined in guidance to be issued 

19 jointly by the Internal Revenue Service, Department 

20 of the Treasury, the Employee Benefits Security Ad21 ministration, Department of Labor, and the Pension 

22 Benefit Guaranty Corporation.’’. 

23 (ii) CONFORMING AMENDMENTS.— 

24 Section 4050(a)(1) of the Employee Re25 tirement Income Security Act of 1974 (29 


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1 U.S.C. 1350(a)(1)) is amended in subpara2 graph (B)— 

3 (I) by striking ‘‘provides’’ and in4 serting ‘‘either— 

5 ‘‘(i) provides’’; 

6 (II) by striking the period at the 

7 end and inserting ‘‘; or’’; and 

8 (III) by adding at the end the 

9 following new clause: 

10 ‘‘(ii) satisfies the requirements of sec11 tion 6057(a) of the Internal Revenue Code 

12 of 1986.’’. 

13 (5) REQUIREMENT OF ELECTRONIC FILING.— 

14 (A) IN GENERAL.—Paragraph (2) of sec15 tion 6011(e) of the Internal Revenue Code of 

16 1986 is amended— 

17 (i) by redesignating subparagraphs 

18 (A) and (B) as clauses (i) and (ii), respec19 tively, and by moving such clauses 2 ems 

20 to the right; 

21 (ii) by striking ‘‘the requirements of 

22 such regulations’’ and all that follows 

23 through ‘‘the Secretary shall require’’ and 

24 inserting ‘‘the requirements of such regula25 tions. 


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1 ‘‘(B) CERTAIN PARTNERSHIPS.—Notwith2 standing subparagraph (A), the Secretary shall 

3 require’’; 

4 (iii) by striking ‘‘REGULATIONS.—In 

5 prescribing’’ and inserting ‘‘REGULA6 TIONS.— 

7 ‘‘(A) IN GENERAL.—In prescribing’’; and 

8 (iv) by adding at the end the following 

9 new subparagraph: 

10 ‘‘(C) EXCEPTIONS.—Notwithstanding sub11 paragraph (A), the Secretary shall require re12 turns or reports required under— 

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

14 and 

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

16 to the extent such return or report relates 

17 to the tax treatment of a distribution from 

18 a plan, account, contract, or annuity, 

19 to be filed on magnetic media, but only with re20 spect to persons who are required to file at 

21 least 50 returns during the calendar year which 

22 includes the first day of the plan year to which 

23 such returns or reports relate.’’. 

24 (B) EFFECTIVE DATE.—The amendments 

25 made by this paragraph shall apply to returns 


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1 and reports relating to years beginning after 

2 the second December 31 occurring after the 

3 date of the enactment of this Act. 

4 (6) SAFEGUARDING PARTICIPANT PRIVACY AND

5 SECURITY.—In establishing the Retirement Savings 

6 Lost and Found under paragraph (1), the Secretary 

7 of Labor, the Secretary of Treasury, and the Sec8 retary of Commerce shall take all necessary and 

9 proper precautions to ensure that individuals’ plan 

10 information maintained by the Retirement Savings 

11 Lost and Found is protected and that persons other 

12 than the individual cannot fraudulently claim the 

13 benefits to which any individual is entitled, and to 

14 allow any individual to opt out of inclusion in the 

15 Retirement Savings Lost and Found at the election 

16 of the individual. 

17 (7) AUTHORIZATION OF APPROPRIATIONS.— 

18 There are authorized to be appropriated such sums 

19 as may be necessary to carry out the purposes of 

20 this subsection. 

21 (b) MANDATORY TRANSFERS OF ROLLOVER DIS22 TRIBUTIONS.— 

23 (1) INVESTMENT OPTIONS.— 

24 (A) IN GENERAL.—Subparagraph (B) of 

25 section 404(c)(3) of the Employee Retirement 


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

2 1104(c)(3)) is amended by striking the period 

3 at the end and inserting ‘‘, and, to the extent 

4 the Secretary provides in guidance or regula5 tions issued after the enactment of the Securing 

6 a Strong Retirement Act of 2020, is made to— 

7 ‘‘(i) a target date or life cycle fund 

8 held under such account; 

9 ‘‘(ii) as described in section 

10 2550.404a–2 of title 29, Code of Federal 

11 Regulations, an investment product held 

12 under such account designed to preserve 

13 principal and provide a reasonable rate of 

14 return; 

15 ‘‘(iii) the Pension Benefit Guaranty 

16 Corporation in accordance with section 

17 401(a)(31)(B)(iv) of the Internal Revenue 

18 Code of 1986 and section 306(c)(2)(A)(ii) 

19 of the Securing a Strong Retirement Act 

20 of 2020; or 

21 ‘‘(iv) such other option as the Sec22 retary may so provide.’’. 

23 (B) REGULATIONS.—Not later than 270 

24 days after the date of the enactment of this 

25 Act, the Secretary of Labor shall promulgate 


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1 regulations identifying the target date or life 

2 cycle funds, or specifying the characteristics of 

3 such a fund, that will be deemed to meet the re4 quirements of section 404(c)(3)(B)(i) of the 

5 Employee Retirement Income Security Act of 

6 1974 (29 U.S.C. 1104(c)(3)(B)), as amended 

7 by subparagraph (A). 

8 (2) EXPANSION OF CAP; AUTHORITY TO TRANS9 FER LESSER AMOUNTS.— 

10 (A) CAP.—Sections 401(a)(31)(B)(ii) and 

11 411(a)(11)(A) of the Internal Revenue Code of 

12 1986 and section 203(e)(1) of the Employee 

13 Retirement Income Security Act of 1974 are 

14 each amended by striking ‘‘$5,000’’ and insert15 ing ‘‘$6,000’’. 

16 (B) DISTRIBUTION OF LARGER AMOUNTS

17 TO INDIVIDUAL RETIREMENT PLANS ONLY.— 

18 Section 401(a)(31)(B)(i) of such Code is 

19 amended by adding at the end the following: 

20 ‘‘The Office of the Retirement Savings Lost 

21 and Found established by Section 306 of the 

22 Securing a Strong Retirement Act shall not be 

23 treated as a trustee or issuer that is eligible to 

24 receive such distributions.’’. 


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1 (C) LESSER AMOUNTS.—Section 

2 401(a)(31)(B) of such Code is amended by add3 ing at the end the following new clauses: 

4 ‘‘(iii) TREATMENT OF LESSER

5 AMOUNTS.—In the case of a trust which is 

6 part of an eligible plan, such trust shall 

7 not be a qualified trust under this section 

8 unless such plan provides that, if a partici9 pant in the plan separates from the service 

10 covered by the plan and the nonforfeitable 

11 accrued benefit described in clause (ii) is 

12 not in excess of $1,000, the plan adminis13 trator shall (either separately or as part of 

14 the notice under section 402(f)) notify the 

15 participant that the participant is entitled 

16 to such benefit or attempt to pay the ben17 efit directly to the participant. 

18 ‘‘(iv) TRANSFERS TO RETIREMENT

19 SAVINGS LOST AND FOUND.—If, after a 

20 plan administrator takes the action re21 quired under clause (iii), the participant 

22 does not— 

23 ‘‘(I) within 6 months of the noti24 fication under such clause, make an 

25 election under subparagraph (A) or 


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1 elect to receive a distribution of the 

2 benefit directly, or 

3 ‘‘(II) accept any direct payment 

4 made under such clause within 6 

5 months of the attempted payment, 

6 the plan administrator shall transfer the 

7 amount of such benefit to the Office of the 

8 Retirement Savings Lost and Found in ac9 cordance with section 306(c)(2)(a)(ii) of 

10 the Securing a Strong Retirement Act of 

11 2020. 

12 ‘‘(v) INCOME TAX TREATMENT OF

13 TRANSFERS TO RETIREMENT SAVINGS

14 LOST AND FOUND.—For purposes of deter15 mining the income tax treatment of trans16 fers to the Office of the Retirement Sav17 ings Lost and Found under clause (iv)— 

18 ‘‘(I) such a transfer shall be 

19 treated as a transfer to an individual 

20 retirement plan under clause (i), and 

21 ‘‘(II) the distribution of such 

22 amounts by the Office of the Retire23 ment Savings Lost and Found shall 

24 be treated as a distribution from an 

25 individual retirement plan.’’. 


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1 (D) EFFECTIVE DATE.—The amendments 

2 made by this paragraph shall apply to vested 

3 benefits with respect to participants who sepa4 rate from service connected to the plan in plan 

5 years beginning after the second December 31 

6 occurring after the date of the enactment of 

7 this Act. 

8 (c) OFFICE OF THE RETIREMENT SAVINGS LOST

9 AND FOUND.— 

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

11 after the date of the enactment of this Act, the Sec12 retary of Labor, the Secretary of Treasury, and the 

13 Secretary of Commerce shall establish within the 

14 Pension Benefit Guaranty Corporation an Office of 

15 the Retirement Savings Lost and Found to operate 

16 in conjunction with section 4050 of the Employee 

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

18 1350). 

19 (2) RESPONSIBILITIES OF OFFICE.— 

20 (A) IN GENERAL.—In addition to admin21 istering the Retirement Savings Lost and 

22 Found under subsection (a) and carrying out 

23 the duties described in clauses (ii) and (iii) of 

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1 ment Savings Lost and Found established 

2 under this section shall— 

3 (i) perform an annual audit of plan 

4 information contained in the Retirement 

5 Savings Lost and Found and ensure that 

6 such information is current and accurate; 

7 (ii) invest any amount transferred 

8 under section 401(a)(31)(B)(iv) of the In9 ternal Revenue Code of 1986 in United 

10 States Treasury securities; 

11 (iii) upon application filed by the par12 ticipant or beneficiary in such form and 

13 manner as may be prescribed in regula14 tions, pay to the participant or beneficiary 

15 the amount transferred (or the appropriate 

16 survivor benefit) either— 

17 (I) in a single sum (plus inter18 est); or 

19 (II) in such other form as is 

20 specified in regulations; and 

21 (iv) identify such amount as eligible to 

22 be paid into an eligible retirement plan de23 scribed in section 402(c)(8)(B) of the In24 ternal Revenue Code of 1986. 


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1 (B) OPTION TO CONTRACT.—The Office of 

2 the Retirement Savings Lost and Found shall 

3 conduct an analysis of the cost effectiveness of 

4 contracting with a third party to carry out the 

5 responsibilities under subparagraph (A) and, if 

6 the Pension Benefit Guaranty Corporation de7 termines that it would be more cost effective to 

8 do so than to carry out such responsibilities 

9 within the Office of the Retirement Savings 

10 Lost and Found, the Director shall report to 

11 the Committees on Finance and Health, Edu12 cation, Labor, and Pensions of the Senate and 

13 the Committees on Ways and Means and Edu14 cation and Labor of the House of Representa15 tives the intention to so contract. 

16 (C) OPTION TO PRESCRIBE PROTOCOLS.— 

17 The Pension Benefit Guaranty Corporation may 

18 establish protocols to assist participants origi19 nally treated as lost or missing in claiming their 

20 benefits under a plan. 

21 (D) COORDINATION.—The Office of the 

22 Retirement Savings Lost and Found shall co23 ordinate with the Social Security Administra24 tion, the Employee Benefits Security Adminis25 tration, and other applicable agencies to inteVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 grate information and databases on lost, miss2 ing, and inactive participants. 

3 (d) TRANSMISSION OF INFORMATION TO PENSION

4 BENEFIT GUARANTY CORPORATION.—Section 6057 of the 

5 Internal Revenue Code of 1986, as amended by the pre6 ceding provisions of this Act, is amended by redesignating 

7 subsection (h) as subsection (i) and by inserting after sub8 section (g) the following new subsection: 

9 ‘‘(h) TRANSMISSION OF INFORMATION TO DIRECTOR

10 OF PENSION BENEFIT GUARANTY CORPORATION.—The 

11 Secretary shall transmit copies of any statements, notifi12 cations, reports, or other information obtained by him 

13 under this section to the Director of the Pension Benefit 

14 Guaranty Corporation.’’. 

15 SEC. 307. EXEMPTION FROM REQUIRED MINIMUM DIS16 TRIBUTION RULES FOR INDIVIDUALS WITH 

17 CERTAIN ACCOUNT BALANCES. 

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

19 Revenue Code of 1986, as amended by the preceding pro20 visions of this Act, is further amended by adding at the 

21 end the following new subparagraph: 

22 ‘‘(L) EXCEPTION FROM REQUIRED MIN23 IMUM DISTRIBUTIONS DURING LIFE OF EM24 PLOYEE WHERE ASSETS DO NOT EXCEED

25 $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)(L)) 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. 

19 SEC. 308. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 

20 RESOLUTION SYSTEM. 

21 (a) IN GENERAL.—Except as otherwise provided in 

22 the Internal Revenue Code of 1986 or regulations pre23 scribed by the Secretary of the Treasury or the Secretary’s 

24 delegate (referred to in this section as the ‘‘Secretary’’), 

25 any eligible inadvertent failure to comply with the rules 


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1 applicable under section 401(a), 403(a), 403(b), 408(p), 

2 or 408(k) of such Code may be self-corrected under the 

3 Employee Plans Compliance Resolution System (as de4 scribed in Revenue Procedure 2019–19 or any successor 

5 guidance and hereafter in this section referred to as the 

6 ‘‘EPCRS’’), except to the extent that such failure was 

7 identified by the Secretary prior to any actions which dem8 onstrate a commitment to implement a self-correction. 

9 Revenue Procedure 2019–19 is deemed amended as of the 

10 date of the enactment of this Act to provide that the cor11 rection period under section 9.02 of such Revenue Proce12 dure (or any successor guidance) for an eligible inad13 vertent failure, except as otherwise provided under such 

14 Code or in regulations prescribed by the Secretary, is in15 definite and has no last day, other than with respect to 

16 failures identified by the Secretary prior to any self-correc17 tion as described in the preceding sentence. 

18 (b) LOAN ERRORS.—In the case of an eligible inad19 vertent failure relating to a loan from a plan to a partici20 pant— 

21 (1) such failure may be self-corrected under 

22 subsection (a) according to the rules of section 6.07 

23 of Revenue Procedure 2019–19 (or any successor 

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1 er a deemed distribution must be reported on Form 

2 1099–R, and 

3 (2) the Secretary of Labor shall treat any such 

4 failure which is so self-corrected under subsection 

5 (a) as meeting the requirements of the Voluntary Fi6 duciary Correction Program of the Department of 

7 Labor if, with respect to the violation of the fidu8 ciary standards of the Employee Retirement Income 

9 Security Act of 1974, there is a similar loan error 

10 eligible for correction under EPCRS and the loan 

11 error is corrected in such manner. 

12 (c) EPCRS FOR IRAS.—The Secretary shall expand 

13 the EPCRS to allow custodians of individual retirement 

14 plans (as defined in section 7701(a)(37) of the Internal 

15 Revenue Code of 1986) to address eligible inadvertent fail16 ures for which the owner of an individual retirement plan 

17 (as so defined) was not at fault, including (but not limited 

18 to)— 

19 (1) waivers of the excise tax which would other20 wise apply under section 4974 of the Internal Rev21 enue Code of 1986, 

22 (2) under the self-correction component of the 

23 EPCRS, waivers of the 60-day deadline for a roll24 over where the deadline is missed for reasons beyond 

25 the reasonable control of the account owner, and 


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1 (3) rules permitting a nonspouse beneficiary to 

2 return distributions to an inherited individual retire3 ment plan described in section 408(d)(3)(C) of the 

4 Internal Revenue Code of 1986 in a case where, due 

5 to an inadvertent error by a service provider, the 

6 beneficiary had reason to believe that the distribu7 tion could be rolled over without inclusion in income 

8 of any part of the distributed amount. 

9 (d) REQUIRED MINIMUM DISTRIBUTION CORREC10 TIONS.—The Secretary shall expand the EPCRS to allow 

11 plans to which such system applies and custodians and 

12 owners of individual retirement plans to self-correct, with13 out an excise tax, any eligible inadvertent failures pursu14 ant to which a distribution is made no more than 180 days 

15 after it was required to be made. 

16 (e) ADDITIONAL SAFE HARBORS.—The Secretary 

17 shall expand the EPCRS to provide additional safe harbor 

18 means of correcting eligible inadvertent failures described 

19 in subsection (a), including safe harbor means of calcu20 lating the earnings which must be restored to a plan in 

21 cases where plan assets have been depleted by reason of 

22 an eligible inadvertent failure. 

23 (f) ELIGIBLE INADVERTENT FAILURE.—For pur24 poses of this section— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the term ‘‘eligible inadvertent failure’’ 

3 means a failure that occurs despite the existence of 

4 practices and procedures which— 

5 (A) satisfy the standards set forth in sec6 tion 4.04 of Revenue Procedure 2019–19 (or 

7 any successor guidance), or 

8 (B) satisfy similar standards in the case of 

9 an individual retirement plan. 

10 (2) EXCEPTION.—The term ‘‘eligible inad11 vertent failure’’ shall not include any failure which 

12 is egregious, relates to the diversion or misuse of 

13 plan assets, or is directly or indirectly related to an 

14 abusive tax avoidance transaction. 

15 (g) APPLICATION OF CERTAIN REQUIREMENTS FOR

16 CORRECTING ERRORS.—This section shall not apply to 

17 any failure unless the correction of such failure under this 

18 section is made in conformity with the general principles 

19 that apply to corrections of such failures under the Inter20 nal Revenue Code of 1986, including regulations or other 

21 guidance issued thereunder and including those principles 

22 and corrections set forth in Revenue Procedure 2019–19 

23 (or any successor guidance).’’ 


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1 SEC. 309. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE2 QUIREMENT FOR GOVERNMENTAL SECTION 

3 457(B) PLANS. 

4 (a) IN GENERAL.—Paragraph (4) of section 457(b) 

5 of the Internal Revenue Code of 1986 is amended to read 

6 as follows: 

7 ‘‘(4) which provides that compensation— 

8 ‘‘(A) in the case of an eligible employer de9 scribed in subsection (e)(1)(A), will be deferred 

10 only if an agreement providing for such deferral 

11 has been entered into before the compensation 

12 is currently available to the individual, and 

13 ‘‘(B) in any other case, will be deferred for 

14 any calendar month only if an agreement pro15 viding for such deferral has been entered into 

16 before the beginning of such month,’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

20 SEC. 310. ONE-TIME ELECTION FOR QUALIFIED CHARI21 TABLE DISTRIBUTION TO SPLIT-INTEREST 

22 ENTITY; INCREASE IN QUALIFIED CHARI23 TABLE DISTRIBUTION LIMITATION. 

24 (a) INCREASE IN LIMITATION.—Section 408(d)(8)(A) 

25 of the Internal Revenue Code of 1986 is amended by strik26 ing ‘‘$100,000’’ and inserting ‘‘$130,000’’. 


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1 (b) ONE-TIME ELECTION FOR QUALIFIED CHARI2 TABLE DISTRIBUTION TO SPLIT-INTEREST ENTITY.— 

3 Section 408(d)(8) of such Code is amended by adding at 

4 the end the following new subparagraph: 

5 ‘‘(F) ONE-TIME ELECTION FOR QUALIFIED

6 CHARITABLE DISTRIBUTION TO SPLIT-INTEREST

7 ENTITY.— 

8 ‘‘(i) IN GENERAL.—A taxpayer may 

9 for a taxable year elect under this subpara10 graph to treat as meeting the requirement 

11 of subparagraph (B)(i) any distribution 

12 from an individual retirement account 

13 which is made directly by the trustee to a 

14 split-interest entity, but only if— 

15 ‘‘(I) an election is not in effect 

16 under this subparagraph for a pre17 ceding taxable year, and 

18 ‘‘(II) such distribution meets the 

19 requirements of clauses (iii) and (iv). 

20 ‘‘(ii) SPLIT-INTEREST ENTITY.—For 

21 purposes of this subparagraph, the term 

22 ‘split-interest entity’ means— 

23 ‘‘(I) a charitable remainder annu24 ity trust (as defined in section 

25 664(d)(1)), but only if such trust is 


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1 funded exclusively by qualified chari2 table distributions, 

3 ‘‘(II) a charitable remainder 

4 unitrust (as defined in section 

5 664(d)(2)), but only if such unitrust 

6 is funded exclusively by qualified char7 itable distributions, or 

8 ‘‘(III) a charitable gift annuity 

9 (as defined in section 501(m)(5)), but 

10 only if such annuity is funded exclu11 sively by qualified charitable distribu12 tions and commences fixed payments 

13 of 5 percent or greater not later than 

14 1 year from the date of funding. 

15 ‘‘(iii) CONTRIBUTIONS MUST BE OTH16 ERWISE DEDUCTIBLE.—A distribution 

17 meets the requirement of this clause only 

18 if— 

19 ‘‘(I) in the case of a distribution 

20 to a charitable remainder annuity 

21 trust or a charitable remainder uni22 trust, a deduction for the entire value 

23 of the remainder interest in the dis24 tribution for the benefit of a specified 

25 charitable organization would be alVerDate Sep 11 2014 00:43 Nov 20, 2020 Jkt 019200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 E:\BILLS\H8696.IH H8696

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1 lowable under section 170 (determined 

2 without regard to subsection (b) 

3 thereof and this paragraph), and 

4 ‘‘(II) in the case of a charitable 

5 gift annuity, a deduction in an 

6 amount equal to the amount of the 

7 distribution reduced by the value of 

8 the annuity described in section 

9 501(m)(5)(B) would be allowable 

10 under section 170 (determined with11 out regard to subsection (b) thereof 

12 and this paragraph). 

13 ‘‘(iv) LIMITATION ON INCOME INTER14 ESTS.—A distribution meets the require15 ments of this clause only if— 

16 ‘‘(I) no person holds an income 

17 interest in the split-interest entity 

18 other than the individual for whose 

19 benefit such account is maintained, 

20 the spouse of such individual, or both, 

21 and 

22 ‘‘(II) the income interest in the 

23 split-interest entity is nonassignable. 

24 ‘‘(v) SPECIAL RULES.— 


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1 ‘‘(I) CHARITABLE REMAINDER

2 TRUSTS.—Notwithstanding section 

3 664(b), distributions made from a 

4 trust described in subclause (I) or (II) 

5 of clause (ii) shall be treated as ordi6 nary income in the hands of the bene7 ficiary to whom the annuity described 

8 in section 664(d)(1)(A) or the pay9 ment described in section 

10 664(d)(2)(A) is paid. 

11 ‘‘(II) CHARITABLE GIFT ANNU12 ITIES.—Qualified charitable distribu13 tions made to fund a charitable gift 

14 annuity shall not be treated as an in15 vestment in the contract for purposes 

16 of section 72(c).’’. 

17 (c) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to distributions made in taxable 

19 years ending after the date of the enactment of this Act. 

20 SEC. 311. RETIREMENT PLAN DISTRIBUTIONS FOR CHARI21 TABLE PURPOSE. 

22 (a) IN GENERAL.—Section 402 of the Internal Rev23 enue Code of 1986 is amended by adding at the end the 

24 following new subsection: 


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1 ‘‘(m) DISTRIBUTIONS FOR CHARITABLE PUR2 POSES.— 

3 ‘‘(1) IN GENERAL.—Gross income for any tax4 able year shall not include so much of the aggregate 

5 amount of qualified charitable distributions made 

6 with respect to a taxpayer during such taxable year 

7 which does not exceed the applicable amount. 

8 ‘‘(2) QUALIFIED CHARITABLE DISTRIBUTION.— 

9 For purposes of this subsection, the term ‘qualified 

10 charitable distribution’ means any distribution from 

11 a trust as defined in section 401(a) that is exempt 

12 from tax under 501(a)— 

13 ‘‘(A) which is made directly by the plan to 

14 an organization described in section 

15 170(b)(1)(A) (other than any organization de16 scribed in section 509(a)(3) or any fund or ac17 count described in section 4966(d)(2)), and 

18 ‘‘(B) which is made on or after the date 

19 that the individual on whose behalf the distribution is made has attained age 701 20 ⁄2. 

21 A distribution shall be treated as a qualified chari22 table distribution only to the extent that the dis23 tribution would be includible in gross income without 

24 regard to paragraph (1). 

25 ‘‘(3) SPECIAL RULES.— 


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1 ‘‘(A) IN GENERAL.—Rules similar to the 

2 rules of subparagraphs (C), (E), and (F) of sec3 tion 408(d)(8) shall apply for purposes of this 

4 subsection. 

5 ‘‘(B) APPLICATION OF SECTION 72.— 

6 Rules similar to the rules of section 

7 408(d)(8)(D) shall apply for purposes of this 

8 subsection, by taking into account all amounts 

9 in the eligible retirement plan to which the tax10 payer has a nonforfeitable right in lieu of all 

11 amounts in all individual retirement plans of 

12 the individual. 

13 ‘‘(4) APPLICABLE AMOUNT.—For purposes of 

14 this subsection, the term ‘applicable amount’ means 

15 the excess of— 

16 ‘‘(A) $130,000, over 

17 ‘‘(B) the total amount of any distributions 

18 not includible in gross income of the taxpayer 

19 for the taxable year by reason of sections 

20 403(d), 408(d)(8), and 457(e)(19).’’. 

21 (b) SEPs AND SIMPLEs.—Section 408(d)(8)(B) of 

22 such Code is amended by striking ‘‘(other than a plan de23 scribed in subsection (k) or (p))’’. 


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1 (c) CERTAIN ANNUITY PLANS.—Section 403 of such 

2 Code is amended by adding at the end the following new 

3 subsection: 

4 ‘‘(d) DISTRIBUTIONS FOR CHARITABLE PURPOSES.— 

5 The rules of section 402(m) shall apply to distributions 

6 under an annuity plan described in subsection (a) or an 

7 annuity contract described in subsection (b).’’. 

8 (d) 457(b) PLANS.—Subsection (e) of section 457 of 

9 such Code is amended by adding at the end the following 

10 new paragraph: 

11 ‘‘(19) DISTRIBUTIONS FOR CHARITABLE PUR12 POSES.—The rules of section 402(m) shall apply to 

13 distributions under an eligible deferred compensation 

14 plan established and maintained by an employer de15 scribed in subsection (e)(1)(A).’’. 

16 (e) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to distributions made in taxable 

18 years ending after the date of the enactment of this Act. 

19 SEC. 312. DISTRIBUTIONS TO FIREFIGHTERS. 

20 (a) IN GENERAL.—Subparagraph (A) of section 

21 72(t)(10) of the Internal Revenue Code of 1986 is amend22 ed by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a dis23 tribution from a plan described in clause (iii), (iv), or (vi) 

24 of section 402(c)(8)(B) to an employee who provides fire25 fighting services’’. 


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1 (b) CONFORMING AMENDMENT.—The heading of 

2 paragraph (10) of section 72(t) of such Code is amend3 ed— 

4 (1) by striking ‘‘QUALIFIED’’, and 

5 (2) by striking ‘‘IN GOVERNMENTAL PLANS’’. 

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

7 this section shall apply to distributions made after Decem8 ber 31, 2020. 

9 SEC. 313. EXCLUSION OF CERTAIN DISABILITY-RELATED 

10 FIRST RESPONDER RETIREMENT PAYMENTS. 

11 (a) IN GENERAL.—Part III of subchapter B of chap12 ter 1 of the Internal Revenue Code of 1986 is amended 

13 by inserting after section 139B the following new section: 

14 ‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE15 SPONDER RETIREMENT PAYMENTS. 

16 ‘‘(a) IN GENERAL.—In the case of an individual who 

17 receives qualified first responder retirement payments for 

18 any taxable year, gross income shall not include so much 

19 of such payments as do not exceed the annualized exclud20 able disability amount with respect to such individual. 

21 ‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT

22 PAYMENTS.—For purposes of this section, the term ‘quali23 fied first responder retirement payments’ means, with re24 spect to any taxable year, any pension or annuity which 


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1 but for this section would be includible in gross income 

2 for such taxable year and which is received— 

3 ‘‘(1) from a plan described in clause (iii), (iv), 

4 (v), or (vi) of section 402(c)(8)(B), and 

5 ‘‘(2) in connection with such individual’s quali6 fied first responder service. 

7 ‘‘(c) ANNUALIZED EXCLUDABLE DISABILITY

8 AMOUNT.—For purposes of this section— 

9 ‘‘(1) IN GENERAL.—The term ‘annualized ex10 cludable disability amount’ means, with respect to 

11 any individual, the service-connected excludable dis12 ability amounts which are properly attributable to 

13 the 12-month period immediately preceding the date 

14 on which such individual attains retirement age. 

15 ‘‘(2) SERVICE-CONNECTED EXCLUDABLE DIS16 ABILITY AMOUNT.—The term ‘service-connected ex17 cludable disability amount’ means periodic payments 

18 received by an individual which— 

19 ‘‘(A) are not includible in such individual’s 

20 gross income under section 104(a)(1), 

21 ‘‘(B) are received in connection with such 

22 individual’s qualified first responder service, 

23 and 

24 ‘‘(C) terminate when such individual at25 tains retirement age. 


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1 ‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY2 MENTS.—In the case of an individual who only re3 ceives service-connected excludable disability 

4 amounts properly attributable to a portion of the 12- 

5 month period described in paragraph (1), such para6 graph shall be applied by multiplying such amounts 

7 by the ratio of 365 to the number of days in such 

8 period to which such amounts were properly attrib9 utable. 

10 ‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 

11 purposes of this section, the term ‘qualified first responder 

12 service’ means service as a law enforcement officer, fire13 fighter, paramedic, or emergency medical technician.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sections 

15 for part III of subchapter B of chapter 1 of such Code 

16 is amended by inserting after the item relating to section 

17 139B the following new item: 

‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 

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

19 this section shall apply to amounts received with respect 

20 to taxable years beginning after the date of the enactment 

21 of this Act. 


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1 SEC. 314. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM2 ITATIONS FOR EXCISE TAX ON EXCESS CON3 TRIBUTIONS, CERTAIN ACCUMULATIONS, 

4 AND PROHIBITED TRANSACTIONS. 

5 Section 6501(l) of the Internal Revenue Code of 1986 

6 is amended— 

7 (1) in paragraph (1), by inserting ‘‘(other than 

8 with respect to an individual retirement plan)’’ after 

9 ‘‘section 4975’’, and 

10 (2) by adding at the end the following new 

11 paragraph: 

12 ‘‘(4) INDIVIDUAL RETIREMENT PLANS.— 

13 ‘‘(A) IN GENERAL.—For purposes of any 

14 tax imposed by section 4973, 4974, or 4975 in 

15 connection with an individual retirement plan, 

16 the return referred to in this section shall be 

17 the income tax return filed by the person on 

18 whom the tax under such section is imposed for 

19 the year in which the act (or failure to act) giv20 ing rise to the liability for such tax occurred. 

21 ‘‘(B) RULE IN CASE OF INDIVIDUALS NOT

22 REQUIRED TO FILE RETURN.—In the case of a 

23 person who is not required to file an income tax 

24 return for such year— 

25 ‘‘(i) the return referred to in this sec26 tion shall be the income tax return that 


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1 such person would have been required to 

2 file but for the fact that such person was 

3 not required to file such return, and 

4 ‘‘(ii) the 3-year period referred to in 

5 subsection (a) with respect to the return 

6 shall be deemed to begin on the date by 

7 which the return would have been required 

8 to be filed (excluding any extension there9 of).’’. 

10 SEC. 315. REQUIREMENT TO PROVIDE PAPER STATEMENTS 

11 IN CERTAIN CASES. 

12 (a) IN GENERAL.—Section 105(a)(2) of the Em13 ployee Retirement Income Security Act of 1974 (29 

14 U.S.C. 1025(a)(2)) is amended— 

15 (1) in subparagraph (A)(iv), by inserting ‘‘sub16 ject to subparagraph (E),’’ before ‘‘may be deliv17 ered’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(E) PROVISION OF PAPER STATE20 MENTS.—With respect to at least 1 pension 

21 benefit statement furnished for a calendar year 

22 with respect to an individual account plan 

23 under paragraph (1)(A), and with respect to at 

24 least 1 pension benefit statement furnished 

25 every 3 calendar years with respect to a defined 


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1 benefit plan under paragraph (1)(B), such 

2 statement shall be furnished on paper in writ3 ten form except— 

4 ‘‘(i) in the case of a plan that fur5 nishes such statement in accordance with 

6 section 2520.104b–1(c) of title 29, Code of 

7 Federal Regulations; or 

8 ‘‘(ii) in the case of a plan that permits 

9 a participant or beneficiary to request that 

10 the statements referred to in the matter 

11 preceding clause (i) be furnished by elec12 tronic delivery, if the participant or bene13 ficiary requests that such statements be 

14 delivered electronically and the statements 

15 are so delivered.’’. 

16 (b) IMPLEMENTATION.— 

17 (1) IN GENERAL.—The Secretary of Labor 

18 shall, not later than July 1, 2021, update section 

19 2520.104b–1(c) of title 29, Code of Federal Regula20 tions, to provide that a plan may furnish the state21 ments referred to in subparagraph (E) of section 

22 105(a)(2) by electronic delivery only if, in addition 

23 to meeting the other requirements under the regula24 tions— 


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1 (A) such plan furnishes each participant, 

2 including participants described in subpara3 graph (B), a one-time initial notice on paper in 

4 written form, prior to the electronic delivery of 

5 any pension benefit statement, of their right to 

6 request that all documents required to be dis7 closed under title I of the Employee Retirement 

8 Income Security Act of 1974 be furnished on 

9 paper in written form; and 

10 (B) such plan furnishes each participant 

11 who is separated from service with at least 1 

12 pension benefit statement on paper in written 

13 form for each calendar year. 

14 (2) OTHER GUIDANCE.—In implementing the 

15 amendment made by subsection (a) with respect to 

16 a plan that discloses required documents or state17 ments electronically, in accordance with applicable 

18 guidance governing electronic disclosure by the De19 partment of Labor (with the exception of section 

20 2520.104b–1(c) of title 29, Code of Federal Regula21 tions), the Secretary of Labor shall, not later than 

22 July 1, 2021, update such guidance to the extent 

23 necessary to ensure that— 

24 (A) a participant or beneficiary under such 

25 a plan is permitted the opportunity to request 


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1 that any disclosure required to be delivered on 

2 paper under applicable guidance by the Depart3 ment of Labor shall be furnished by electronic 

4 delivery; 

5 (B) each paper statement furnished under 

6 such a plan pursuant to the amendment shall 

7 include— 

8 (i) an explanation of how to request 

9 that all such statements, and any other 

10 document required to be disclosed under 

11 title I of the Employee Retirement Income 

12 Security Act of 1974, be furnished by elec13 tronic delivery; and 

14 (ii) contact information for the plan 

15 sponsor, including a telephone number; 

16 (C) the plan may not charge any fee to a 

17 participant or beneficiary for the delivery of 

18 paper statements; 

19 (D) each paper pension benefit statement 

20 shall identify each plan document required to be 

21 disclosed and shall include information about 

22 how a participant or beneficiary may access 

23 each such document; 

24 (E) each document required to be disclosed 

25 that is furnished by electronic delivery under 


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1 such a plan shall include an explanation of how 

2 to request that all such documents be furnished 

3 on paper in written form; 

4 (F) a plan is permitted to furnish a dupli5 cate electronic statement in any case in which 

6 the plan furnishes a paper statement; and 

7 (G) furnishment of such a paper pension 

8 benefit statement may be combined, in one doc9 ument, with a notice explaining electronic deliv10 ery of other disclosure documents as a default 

11 selection and the right to opt out of such elec12 tronic delivery, but only if such paper statement 

13 is furnished prior to the electronic delivery of 

14 any such statement. 

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

16 subsection (a) shall apply with respect to plan years begin17 ning after December 31, 2021. 

18 TITLE IV—TECHNICAL 

19 AMENDMENTS 

20 SEC. 401. AMENDMENTS RELATING TO SETTING EVERY 

21 COMMUNITY UP FOR RETIREMENT ENHANCE22 MENT ACT OF 2019. 

23 (a) TECHNICAL AMENDMENTS.— 

24 (1) AMENDMENT RELATING TO SECTION 114.— 

25 Section 401(a)(9)(C)(iii) of the Internal Revenue 


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1 Code of 1986 is amended by striking ‘‘employee to 

2 whom clause (i)(II) applies’’ and inserting ‘‘em3 ployee (other than an employee to whom clause 

4 (i)(II) does not apply by reason of clause (ii))’’. 

5 (2) AMENDMENT RELATING TO SECTION 116.— 

6 Section 4973(b) of the Internal Revenue Code of 

7 1986 is amended by adding at the end of the flush 

8 matter the following: ‘‘Such term shall not include 

9 any designated nondeductible contribution (as de10 fined in subparagraph (C) of section 408(o)(2)) 

11 which does not exceed the nondeductible limit under 

12 subparagraph (B) thereof by reason of an election 

13 under section 408(o)(5).’’. 

14 (3) EFFECTIVE DATE.—The amendments made 

15 by this section shall take effect as if included in sec16 tion of the Setting Every Community Up for Retire17 ment Enhancement Act of 2019 to which the 

18 amendment relates. 

19 (b) CLERICAL AMENDMENT.—Section 

20 72(t)(2)(H)(vi)(IV) of the Internal Revenue Code of 1986 

21 is amended by striking ‘‘403(b)(7)(A)(ii)’’ and inserting 

22 ‘‘ 403(b)(7)(A)(i)’’. 


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1 TITLE V—ADMINISTRATIVE 

2 PROVISIONS 

3 SEC. 501. PROVISIONS RELATING TO PLAN AMENDMENTS. 

4 (a) IN GENERAL.—If this section applies to any re5 tirement plan or contract amendment— 

6 (1) such retirement plan or contract shall be 

7 treated as being operated in accordance with the 

8 terms of the plan during the period described in sub9 section (b)(2)(A); and 

10 (2) except as provided by the Secretary of the 

11 Treasury (or the Secretary’s delegate), such retire12 ment plan shall not fail to meet the requirements of 

13 section 411(d)(6) of the Internal Revenue Code of 

14 1986 and section 204(g) of the Employee Retire15 ment Income Security Act of 1974 by reason of such 

16 amendment. 

17 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

18 (1) IN GENERAL.—This section shall apply to 

19 any amendment to any retirement plan or annuity 

20 contract which is made— 

21 (A) pursuant to any amendment made by 

22 this Act or pursuant to any regulation issued by 

23 the Secretary of the Treasury or the Secretary 

24 of Labor (or a delegate of either such Sec25 retary) under this Act; and 


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1 (B) on or before the last day of the first 

2 plan year beginning on or after January 1, 

3 2022. 

4 In the case of a governmental plan (as defined in 

5 section 414(d) of the Internal Revenue Code of 

6 1986), this paragraph shall be applied by sub7 stituting ‘‘2024’’ for ‘‘2022’’. 

8 (2) CONDITIONS.—This section shall not apply 

9 to any amendment unless— 

10 (A) during the period— 

11 (i) beginning on the date the legisla12 tive or regulatory amendment described in 

13 paragraph (1)(A) takes effect (or in the 

14 case of a plan or contract amendment not 

15 required by such legislative or regulatory 

16 amendment, the effective date specified by 

17 the plan); and 

18 (ii) ending on the date described in 

19 paragraph (1)(B) (as modified by the sec20 ond sentence of paragraph (1)) (or, if ear21 lier, the date the plan or contract amend22 ment is adopted), 

23 the plan or contract is operated as if such plan 

24 or contract amendment were in effect; and 


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1 (B) such plan or contract amendment ap2 plies retroactively for such period. 

Æ 


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