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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8696 Introduced in House (IH)]

<DOC>

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Securing a Strong 
Retirement Act of 2020''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
     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.
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.

     TITLE I--EXPANDING COVERAGE AND INCREASING RETIREMENT SAVINGS

SEC. 101. EXPANDING AUTOMATIC ENROLLMENT IN RETIREMENT PLANS.

    (a) In General.--Subpart B of part I of subchapter D of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 414 the following new section:

``SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC ENROLLMENT.

    ``(a) In General.--Except as otherwise provided in this section--
            ``(1) an arrangement shall not be treated as a qualified 
        cash or deferred arrangement described in section 401(k) or as 
        a qualified salary reduction arrangement described in section 
        408(p) unless such arrangement meets the automatic enrollment 
        requirements of subsection (b), and
            ``(2) an annuity contract otherwise described in section 
        403(b)(1) which is purchased under a salary reduction agreement 
        shall not be treated as described in such section unless such 
        agreement meets the automatic enrollment requirements of 
        subsection (b).
    ``(b) Automatic Enrollment Requirements.--
            ``(1) In general.--An arrangement or agreement meets the 
        requirements of this subsection if such arrangement or 
        agreement is an eligible automatic contribution arrangement (as 
        defined in section 414(w)(3)) which meets the requirements of 
        paragraphs (2) through (4).
            ``(2) Allowance of permissible withdrawals.--An eligible 
        automatic contribution arrangement meets the requirements of 
        this paragraph if such arrangement allows employees to make 
        permissible withdrawals (as defined in section 414(w)(2)).
            ``(3) Minimum contribution percentage.--An eligible 
        automatic contribution arrangement meets the requirements of 
        this paragraph if--
                    ``(A) the uniform percentage of compensation 
                contributed by the participant under such arrangement 
                during the first year of participation is not less than 
                3 percent and not more than 10 percent (unless the 
                participant specifically elects not to have such 
                contributions made or to have such contributions made 
                at a different percentage), and
                    ``(B) such uniform percentage is increased by 1 
                percentage point for each year of participation under 
                such arrangement (but not above 10 percent) unless the 
                participant specifically elects not to have such 
                contributions made or to have such contributions made 
                at a different percentage.
            ``(4) Investment requirements.--An eligible automatic 
        contribution arrangement meets the requirements of this 
        paragraph if amounts contributed pursuant to such arrangement, 
        and for which no investment is elected by the participant, are 
        invested consistent with the requirements of section 2550.404c-
        5 of title 29, Code of Federal Regulations (or any successor 
        regulations).
    ``(c) Exceptions.--For purposes of this section--
            ``(1) Exception for plans or arrangements established 
        before enactment of section.--Subsection (a) shall not apply 
        to--
                    ``(A) any qualified cash or deferred arrangement or 
                qualified salary reduction arrangement established 
                before the date of the enactment of this section, or
                    ``(B) any annuity contract purchased under a plan 
                established before the date of the enactment of this 
                section.
            ``(2) Exception for governmental and church plans.--
        Subsection (a) shall not apply to any governmental plan (within 
        the meaning of section 414(d)) or any church plan (within the 
        meaning of section 414(e)).
            ``(3) Exception for new businesses.--Subsection (a) shall 
        not apply to--
                    ``(A) any qualified cash or deferred arrangement or 
                qualified salary reduction arrangement established 
                while all employers maintaining the plan (and any 
                predecessor employers) have been in existence for less 
                than 3 years, or
                    ``(B) any annuity contract purchased under a plan 
                established while all employers maintaining such plan 
                have been in existence for less than 3 years.
            ``(4) Exception for small businesses.--Subsection (a) shall 
        not apply to--
                    ``(A) any qualified cash or deferred arrangement or 
                qualified salary reduction arrangement if such 
                arrangement is established not later than 1 year after 
                the close of the last taxable year with respect to 
                which all employers maintaining the plan normally 
                employed 10 or fewer employees on a typical business 
                day, or
                    ``(B) any annuity contract purchased under a plan 
                established not later than 1 year after the close of 
                the last taxable year with respect to which all 
                employers maintaining such plan normally employed 10 or 
                fewer employees on a typical business day.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part I of subchapter D of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 414 the 
following new item:

``Sec. 414A. Requirements related to automatic enrollment.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2021.

SEC. 102. MODIFICATION OF CREDIT FOR SMALL EMPLOYER PENSION PLAN 
              STARTUP COSTS.

    (a) Increase in Credit Percentage for Smaller Employers.--Section 
45E(e) of the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
            ``(4) Increased credit for certain small employers.--In the 
        case of an employer which would be an eligible employer under 
        subsection (c) if section 408(p)(2)(C)(i) was applied by 
        substituting `50 employees' for `100 employees', subsection (a) 
        shall be applied by substituting `100 percent' for `50 
        percent'.''.
    (b) Additional Credit for Employer Contributions by Certain Small 
Employers.--Section 45E of such Code is amended by adding at the end 
the following new subsection:
    ``(f) Additional Credit for Employer Contributions by Certain 
Eligible Employers.--
            ``(1) In general.--In the case of an eligible employer, the 
        credit allowed for the taxable year under subsection (a) 
        (determined without regard to this subsection) shall be 
        increased by an amount equal to the applicable percentage of 
        employer contributions (other than any elective deferrals (as 
        defined in section 402(g)(3))) by the employer to an eligible 
        employer plan (other than a defined benefit plan (as defined in 
        section 414(j))).
            ``(2) Limitations.--
                    ``(A) Dollar limitation.--The amount determined 
                under paragraph (1) (before the application of 
                subparagraph (B)) with respect to any employee of the 
                employer shall not exceed $1,000.
                    ``(B) Credit phase-in.--In the case of any eligible 
                employer which had for the preceding taxable year more 
                than 50 employees, the amount determined under 
                paragraph (1) (without regard to this subparagraph) 
                shall be reduced by an amount equal to the product of--
                            ``(i) the amount otherwise so determined 
                        under paragraph (1), multiplied by
                            ``(ii) a percentage equal to 2 percentage 
                        points for each employee of the employer for 
                        the preceding taxable year in excess of 50 
                        employees.
            ``(3) Applicable percentage.--For purposes of this section, 
        the applicable percentage for the taxable year during which the 
        eligible employer plan is established shall be 100 percent, and 
        for taxable years thereafter shall be determined under the 
        following table:
``In the case of the following      The applicable percentage shall be: 
        taxable year beginning 
        after the taxable year 
        during which plan is 
        established: 
        1st................................................        100%
        2nd................................................         75%
        3rd................................................         50%
        4th................................................         25%
        Any taxable year thereafter........................          0%

            ``(4) Determination of eligible employer; number of 
        employees.--For purposes of this subsection, whether an 
        employer is an eligible employer and the number of employees of 
        an employer shall be determined under the rules of subsection 
        (c), except that paragraph (2) thereof shall only apply to the 
        taxable year during which the eligible employer plan to which 
        this section applies is established.''.
    (c) Disallowance of Deduction.--Section 45E(e)(2) of such Code is 
amended to read as follows:
            ``(2) Disallowance of deduction.--No deduction shall be 
        allowed--
                    ``(A) for that portion of the qualified startup 
                costs paid or incurred for the taxable year which is 
                equal to so much of the portion of the credit 
                determined under subsection (a) as is properly 
                allocable to such costs, and
                    ``(B) for that portion of the employer 
                contributions by the employer for the taxable year 
                which is equal to so much of the credit increase 
                determined under subsection (f) as is properly 
                allocable to such contributions.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.

SEC. 103. SIMPLIFICATION AND INCREASE IN SAVER'S CREDIT.

    (a) In General.--Section 25B(a) of the Internal Revenue Code of 
1986 is amended by striking ``the applicable percentage'' and all that 
follows through ``$2,000'' and inserting the following: ``50 percent of 
so much of the qualified retirement savings contributions of the 
eligible individual for the taxable year as does not exceed $3,000''.
    (b) Income Limitation.--Section 25B(b) of such Code is amended to 
read as follows:
    ``(b) Income Limitation.--
            ``(1) In general.--The amount allowable as a credit under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) shall be reduced (but not below zero) by an 
        amount which bears the same ratio to the amount so allowable 
        (as so determined) as--
                    ``(A) the amount by which the taxpayer's adjusted 
                gross income exceeds the applicable threshold, bears to
                    ``(B) $20,000.
            ``(2) Applicable threshold.--For purposes of this 
        subsection, the applicable threshold is--
                    ``(A) except as provided in subparagraph (B) or 
                (C), $40,000,
                    ``(B) in the case of a joint return, 200 percent of 
                the amount in effect for the taxable year under 
                subparagraph (A), or
                    ``(C) in the case of a head of household, 150 
                percent of the amount in effect for the taxable year 
                under subparagraph (A).
            ``(3) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2021, the $40,000 
        dollar amount in paragraph (2) shall be increased by an amount 
        equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2020' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
        Any increase determined under the preceding sentence shall be 
        rounded to the nearest multiple of $500.''.
    (c) Saver's Credit.--The heading for section 25B of such Code is 
amended to read as follows: ``saver's credit.''.
    (d) Saver's Credit Promotion.--
            (1) In general.--The Secretary of the Treasury (or the 
        Secretary's delegate) shall take such steps as the Secretary 
        (or delegate) determines are necessary and appropriate to 
        increase public awareness of the credit provided under section 
        25B of such Code (as amended by this section).
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Secretary (or delegate) shall submit 
        to Congress a report detailing the steps taken under paragraph 
        (1).
    (e) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 25B and inserting the following 
new item:

``Sec. 25B. Saver's credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 104. ENHANCEMENT OF 403(B) PLANS.

    (a) In General.--
            (1) Permitted investments.--Section 403(b)(7)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``if the 
        amounts are to be invested in regulated investment company 
        stock to be held in that custodial account'' and inserting ``if 
        the amounts are to be held in that custodial account and 
        invested in regulated investment company stock or a group trust 
        intended to satisfy the requirements of Internal Revenue 
        Service Revenue Ruling 81-100 (or any successor guidance)''.
            (2) Conforming amendment.--The heading of paragraph (7) of 
        section 403(b) of such Code is amended by striking ``for 
        regulated investment company stock''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts invested after December 31, 2020.
    (b) Amendments to the Investment Company Act of 1940.--Section 
3(c)(11) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(11)) 
is amended to read as follows:
            ``(11) Any--
                    ``(A) employee's stock bonus, pension, or profit-
                sharing trust which meets the requirements for 
                qualification under section 401 of the Internal Revenue 
                Code of 1986;
                    ``(B) custodial account meeting the requirements of 
                section 403(b)(7) of such Code;
                    ``(C) governmental plan described in section 
                3(a)(2)(C) of the Securities Act of 1933;
                    ``(D) collective trust fund maintained by a bank 
                consisting solely of assets of one or more--
                            ``(i) trusts described in subparagraph (A);
                            ``(ii) government plans described in 
                        subparagraph (C);
                            ``(iii) church plans, companies, or 
                        accounts that are excluded from the definition 
                        of an investment company under paragraph (14) 
                        of this subsection; or
                            ``(iv) plans which meet the requirements of 
                        section 403(b) of the Internal Revenue Code of 
                        1986 if--
                                    ``(I) such plan is subject to title 
                                I of the Employee Retirement Income 
                                Security Act of 1974 (29 U.S.C. 1001 et 
                                seq.);
                                    ``(II) any employer making such 
                                plan available agrees to serve as a 
                                fiduciary for the plan with respect to 
                                the selection of the plan's investments 
                                among which participants can choose; or
                                    ``(III) such plan is a governmental 
                                plan (as defined in section 414(d) of 
                                such Code); or
                    ``(E) separate account the assets of which are 
                derived solely from--
                            ``(i) contributions under pension or 
                        profit-sharing plans which meet the 
                        requirements of section 401 of the Internal 
                        Revenue Code of 1986 or the requirements for 
                        deduction of the employer's contribution under 
                        section 404(a)(2) of such Code;
                            ``(ii) contributions under governmental 
                        plans in connection with which interests, 
                        participations, or securities are exempted from 
                        the registration provisions of section 5 of the 
                        Securities Act of 1933 by section 3(a)(2)(C) of 
                        such Act;
                            ``(iii) advances made by an insurance 
                        company in connection with the operation of 
                        such separate account; and
                            ``(iv) contributions to a plan described in 
                        subparagraph (D)(iv).''.
    (c) Amendments to the Securities Act of 1933.--Section 3(a)(2) of 
the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended--
            (1) by striking ``or (D)'' and inserting ``(D) a plan which 
        meets the requirements of section 403(b) of such Code if (i) 
        such plan is subject to title I of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1001 et seq.), (ii) any 
        employer making such plan available agrees to serve as a 
        fiduciary for the plan with respect to the selection of the 
        plan's investments among which participants can choose, or 
        (iii) such plan is a governmental plan (as defined in section 
        414(d) of such Code); or (E)'';
            (2) by striking ``(C), or (D)'' and inserting ``(C), (D), 
        or (E)''; and
            (3) by striking ``(iii) which is a plan funded'' and 
        inserting ``(iii) in the case of a plan not described in 
        subparagraph (D), which is a plan funded''.
    (d) Amendments to the Securities Exchange Act of 1934.--Section 
3(a)(12)(C) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(12)(C)) is amended--
            (1) by striking ``or (iv)'' and inserting ``(iv) a plan 
        which meets the requirements of section 403(b) of such Code if 
        (I) such plan is subject to title I of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1001 et seq.), (II) any 
        employer making such plan available agrees to serve as a 
        fiduciary for the plan with respect to the selection of the 
        plan's investments among which participants can choose, or 
        (III) such plan is a governmental plan (as defined in section 
        414(d) of such Code), or (v)'';
            (2) by striking ``(ii), or (iii)'' and inserting ``(ii), 
        (iii), or (iv)''; and
            (3) by striking ``(II) is a plan funded'' and inserting 
        ``(II) in the case of a plan not described in clause (iv), is a 
        plan funded''.

SEC. 105. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY 
              DISTRIBUTIONS.

    (a) In General.--Section 401(a)(9)(C)(i)(I) of the Internal Revenue 
Code of 1986 is amended by striking ``age 72'' and inserting ``age 
75''.
    (b) Spouse Beneficiaries; Special Rule for Owners.--Subparagraphs 
(B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each 
amended by striking ``age 72'' and inserting ``age 75''.
    (c) Conforming Amendments.--The last sentence of section 408(b) of 
such Code is amended by striking ``age 72'' and inserting ``age 75''.
    (d) Effective Date.--The amendments made by this section shall 
apply to distributions required to be made after December 31, 2020, 
with respect to individuals who attain age 72 after such date.

SEC. 106. DEFERRAL OF TAX FOR CERTAIN SALES OF EMPLOYER STOCK TO 
              EMPLOYEE STOCK OWNERSHIP PLAN SPONSORED BY S CORPORATION.

    (a) In General.--Section 1042(c)(1)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``domestic C corporation'' and inserting 
``domestic corporation''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales after the date of the enactment of this Act.

SEC. 107. INDEXING IRA CATCH-UP LIMIT.

    (a) In General.--Subparagraph (C) of section 219(b)(5) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new clause:
                            ``(iii) Indexing of catch-up limitation.--
                        In the case of any taxable year beginning in a 
                        calendar year after 2021, the $1,000 amount 
                        under subparagraph (B)(ii) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2020' for 
                                `calendar year 2016' in subparagraph 
                                (A)(ii) thereof.
                        If any amount after adjustment under the 
                        preceding sentence is not a multiple of $100, 
                        such amount shall be rounded to the next lower 
                        multiple of $100.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

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

    (a) In General.--
            (1) Plans other than simple plans.--Section 414(v)(2)(B)(i) 
        of the Internal Revenue Code of 1986 is amended by inserting 
        the following before the period: ``($10,000, in the case of an 
        eligible participant who has attained age 60 before the close 
        of the taxable year)''.
            (2) Simple plans.--Section 414(v)(2)(B)(ii) of such Code is 
        amended by inserting the following before the period: 
        ``($5,000, in the case of an eligible participant who has 
        attained age 60 before the close of the taxable year)''.
    (b) Cost-of-Living Adjustments.--Subparagraph (C) of section 
414(v)(2) of such Code is amended by adding at the end the following: 
``In the case of a year beginning after December 31, 2021, the 
Secretary shall adjust annually the $10,000 amount in subparagraph 
(B)(i) and the $5,000 amount in subparagraph (B)(ii) for increases in 
the cost-of-living at the same time and in the same manner as 
adjustments under the preceding sentence; except that the base period 
taken into account shall be the calendar quarter beginning July 1, 
2020.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2020.

SEC. 109. MULTIPLE EMPLOYER 403(B) PLANS.

    (a) In General.--Section 403(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(15) Multiple employer plans.--
                    ``(A) In general.--Except in the case of a church 
                plan, this subsection shall not be treated as failing 
                to apply to an annuity contract solely by reason of 
                such contract being purchased under a plan maintained 
                by more than 1 employer.
                    ``(B) Treatment of employers failing to meet 
                requirements of plan.--
                            ``(i) In general.--In the case of a plan 
                        maintained by more than 1 employer, this 
                        subsection shall not be treated as failing to 
                        apply to an annuity contract held under such 
                        plan merely because of one or more employers 
                        failing to meet the requirements of this 
                        subsection if such plan satisfies rules similar 
                        to the rules of section 413(e)(2) with respect 
                        to any such employer failure.
                            ``(ii) Additional requirements in case of 
                        non-governmental plans.--A plan shall not be 
                        treated as meeting the requirements of this 
                        subparagraph unless the plan meets the 
                        requirements of subparagraph (A) or (B) of 
                        section 413(e)(1), except in the case of a 
                        multiple employer plan maintained solely by any 
                        of the following: A State, a political 
                        subdivision of a State, or an agency or 
                        instrumentality of any one or more of the 
                        foregoing.''.
    (b) Annual Registration for 403(b) Multiple Employer Plan.--Section 
6057 of such Code is amended by redesignating subsection (g) as 
subsection (h) and by inserting after subsection (f) the following new 
subsection:
    ``(g) 403(b) Multiple Employer Plans Treated as One Plan.--In the 
case of annuity contracts to which this section applies and to which 
section 403(b) applies by reason of the plan under which such contracts 
are purchased meeting the requirements of paragraph (15) thereof, such 
plan shall be treated as a single plan for purposes of this section.''.
    (c) Annual Information Returns for 403(b) Multiple Employer Plan.--
Section 6058 of the Internal Revenue Code of 1986 is amended by 
redesignating subsection (f) as subsection (g) and by inserting after 
subsection (e) the following new subsection:
    ``(f) 403(b) Multiple Employer Plans Treated as One Plan.--In the 
case of annuity contracts to which this section applies and to which 
section 403(b) applies by reason of the plan under which such contracts 
are purchased meeting the requirements of paragraph (15) thereof, such 
plan shall be treated as a single plan for purposes of this section.''.
    (d) Amendments to Employee Retirement Income Security Act of 
1974.--
            (1) Treated as pooled employer plan.--
                    (A) In general.--Section 3(43)(A) of the Employee 
                Retirement Income Security Act of 1974 is amended--
                            (i) in clause (ii), by striking ``section 
                        501(a) of such Code or'' and inserting ``501(a) 
                        of such Code, a plan that consists of contracts 
                        described in section 403(b) of such Code, or''; 
                        and
                            (ii) in the flush text at the end, by 
                        striking ``the plan.'' and inserting ``the 
                        plan, but such term shall include any program 
                        (other than a governmental plan) maintained for 
                        the benefit of the employees of more than 1 
                        employer that consists of contracts described 
                        in section 403(b) of such Code and that meets 
                        the requirements of subparagraph (A) or (B) of 
                        section 413(e)(1) of such Code.''.
                    (B) Conforming amendments.--Sections 
                3(43)(B)(v)(II) and 3(44)(A)(i)(I) of such Act are each 
                amended by striking ``section 401(a) of such Code or'' 
                and inserting ``401(a) of such Code, a plan that 
                consists of contracts described in section 403(b) of 
                such Code, or''.
            (2) Fiduciaries.--Section 3(43)(B)(ii) of such Act is 
        amended--
                    (A) by striking ``trustees meeting the requirements 
                of section 408(a)(2) of the Internal Revenue Code of 
                1986'' and inserting ``trustees (or other fiduciaries 
                in the case of a plan that consists of contracts 
                described in section 403(b) of the Internal Revenue 
                Code of 1986) meeting the requirements of section 
                408(a)(2) of such Code'', and
                    (B) by striking ``holding'' and inserting ``holding 
                (or causing to be held under the terms of a plan 
                consisting of such contracts)''.
    (e) Regulations Relating to Plan Termination.--The Secretary of the 
Treasury (or the Secretary's designee) shall prescribe such regulations 
as may be necessary to clarify the treatment of a plan termination by 
an employer in the case of plans to which section 403(b)(15) of such 
Code applies.
    (f) Modification of Model Plan Language.--
            (1) Plan notifications.--The Secretary of the Treasury (or 
        the Secretary's designee) shall modify the model plan language 
        published under section 413(e)(5) of the Internal Revenue Code 
        of 1986 to include language which notifies participating 
        employers which are exempt from tax under section 501(a) of 
        such Code that the plan is subject to the Employee Retirement 
        Income Security Act of 1974 and that such employer is a plan 
        sponsor with respect to its employees participating in the 
        multiple employer plan and, as such, has certain fiduciary 
        duties with respect to the plan and to its employees.
            (2) Model plans for multiple employer 403(b) non-
        governmental plans.--For plans to which section 403(b)(15)(A) 
        of the Internal Revenue Code of 1986 applies (other than a plan 
        maintained for its employees by a State, a political 
        subdivision of a State, or an agency or instrumentality of any 
        one or more of the foregoing) the Secretary shall publish model 
        plan language similar to model plan language published under 
        section 413(e)(5) of such Code.
    (g) No Inference With Respect to Church Plans.--Regarding any 
application of section 403(b) of the Internal Revenue Code of 1986 to 
an annuity contract purchased under a church plan (as defined in 
section 414(e) of such Code) maintained by more than 1 employer, or to 
any application of rules similar to section 413(e) of such Code to such 
a plan, no inference shall be made from section 403(b)(15)(A) of such 
Code (as added by this Act) not applying to such plans.
    (h) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after December 31, 2020.
            (2) Rule of construction.--Nothing in the amendments made 
        by subsection (a) shall be construed as limiting the authority 
        of the Secretary of the Treasury or the Secretary's delegate 
        (determined without regard to such amendment) to provide for 
        the proper treatment of a failure to meet any requirement 
        applicable under such Code with respect to one employer (and 
        its employees) in the case of a plan to which section 
        403(b)(15) applies.

SEC. 110. TREATMENT OF STUDENT LOAN PAYMENTS AS ELECTIVE DEFERRALS FOR 
              PURPOSES OF MATCHING CONTRIBUTIONS.

    (a) In General.--Subparagraph (A) of section 401(m)(4) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (i), by striking the period at the end of clause (ii) and 
inserting ``, and'', and by adding at the end the following new clause:
                            ``(iii) subject to the requirements of 
                        paragraph (13), any employer contribution made 
                        to a defined contribution plan on behalf of an 
                        employee on account of a qualified student loan 
                        payment.''.
    (b) Qualified Student Loan Payment.--Paragraph (4) of section 
401(m) of such Code is amended by adding at the end the following new 
subparagraph:
                    ``(D) Qualified student loan payment.--The term 
                `qualified student loan payment' means a payment made 
                by an employee in repayment of a qualified education 
                loan (as defined section 221(d)(1)) incurred by the 
                employee to pay qualified higher education expenses, 
                but only--
                            ``(i) to the extent such payments in the 
                        aggregate for the year do not exceed an amount 
                        equal to--
                                    ``(I) the limitation applicable 
                                under section 402(g) for the year (or, 
                                if lesser, the employee's compensation 
                                (as defined in section 415(c)(3)) for 
                                the year), reduced by
                                    ``(II) the elective deferrals made 
                                by the employee for such year, and
                            ``(ii) if the employee certifies to the 
                        employer making the matching contribution under 
                        this paragraph that such payment has been made 
                        on such loan.
                For purposes of this subparagraph, the term `qualified 
                higher education expenses' means the cost of attendance 
                (as defined in section 472 of the Higher Education Act 
                of 1965, as in effect on the day before the date of the 
                enactment of the Taxpayer Relief Act of 1997) at an 
                eligible educational institution (as defined in section 
                221(d)(2)).''.
    (c) Matching Contributions for Qualified Student Loan Payments.--
Subsection (m) of section 401 of such Code is amended by redesignating 
paragraph (13) as paragraph (14), and by inserting after paragraph (12) 
the following new paragraph:
            ``(13) Matching contributions for qualified student loan 
        payments.--
                    ``(A) In general.--For purposes of paragraph 
                (4)(A)(iii), an employer contribution made to a defined 
                contribution plan on account of a qualified student 
                loan payment shall be treated as a matching 
                contribution for purposes of this title if--
                            ``(i) the plan provides matching 
                        contributions on account of elective deferrals 
                        at the same rate as contributions on account of 
                        qualified student loan payments,
                            ``(ii) the plan provides matching 
                        contributions on account of qualified student 
                        loan payments only on behalf of employees 
                        otherwise eligible to receive matching 
                        contributions on account of elective deferrals,
                            ``(iii) under the plan, all employees 
                        eligible to receive matching contributions on 
                        account of elective deferrals are eligible to 
                        receive matching contributions on account of 
                        qualified student loan payments, and
                            ``(iv) the plan provides that matching 
                        contributions on account of qualified student 
                        loan payments vest in the same manner as 
                        matching contributions on account of elective 
                        deferrals.
                    ``(B) Treatment for purposes of nondiscrimination 
                rules, etc.--
                            ``(i) Nondiscrimination rules.--For 
                        purposes of subparagraph (A)(iii), subsection 
                        (a)(4), and section 410(b), matching 
                        contributions described in paragraph 
                        (4)(A)(iii) shall not fail to be treated as 
                        available to an employee solely because such 
                        employee does not have debt incurred under a 
                        qualified education loan (as defined in section 
                        221(d)(1)).
                            ``(ii) Student loan payments not treated as 
                        plan contribution.--Except as provided in 
                        clause (iii), a qualified student loan payment 
                        shall not be treated as a contribution to a 
                        plan under this title.
                            ``(iii) Matching contribution rules.--
                        Solely for purposes of meeting the requirements 
                        of paragraph (11)(B) or (12) of this 
                        subsection, or paragraph (11)(B)(i)(II), 
                        (12)(B), or (13)(D) of subsection (k), a plan 
                        may treat a qualified student loan payment as 
                        an elective deferral or an elective 
                        contribution, whichever is applicable.''.
    (d) Simple Retirement Accounts.--Paragraph (2) of section 408(p) of 
such Code is amended by adding at the end the following new 
subparagraph:
                    ``(F) Matching contributions for qualified student 
                loan payments.--
                            ``(i) In general.--Subject to the rules of 
                        clause (iii), an arrangement shall not fail to 
                        be treated as meeting the requirements of 
                        subparagraph (A)(iii) solely because under the 
                        arrangement, solely for purposes of such 
                        subparagraph, qualified student loan payments 
                        are treated as amounts elected by the employee 
                        under subparagraph (A)(i)(I) to the extent such 
                        payments do not exceed--
                                    ``(I) the applicable dollar amount 
                                under subparagraph (E) (after 
                                application of section 414(v)) for the 
                                year (or, if lesser, the employee's 
                                compensation (as defined in section 
                                415(c)(3)) for the year), reduced by
                                    ``(II) any other amounts elected by 
                                the employee under subparagraph 
                                (A)(i)(I) for the year.
                            ``(ii) Qualified student loan payment.--For 
                        purposes of this subparagraph--
                                    ``(I) In general.--The term 
                                `qualified student loan payment' means 
                                a payment made by an employee in 
                                repayment of a qualified education loan 
                                (as defined in section 221(d)(1)) 
                                incurred by the employee to pay 
                                qualified higher education expenses, 
                                but only if the employee certifies to 
                                the employer making the matching 
                                contribution that such payment has been 
                                made on such a loan.
                                    ``(II) Qualified higher education 
                                expenses.--The term `qualified higher 
                                education expenses' has the same 
                                meaning as when used in section 
                                401(m)(4)(D).
                            ``(iii) Applicable rules.--Clause (i) shall 
                        apply to an arrangement only if, under the 
                        arrangement--
                                    ``(I) matching contributions on 
                                account of qualified student loan 
                                payments are provided only on behalf of 
                                employees otherwise eligible to elect 
                                contributions under subparagraph 
                                (A)(i)(I), and
                                    ``(II) all employees otherwise 
                                eligible to participate in the 
                                arrangement are eligible to receive 
                                matching contributions on account of 
                                qualified student loan payments.''.
    (e) 403(b) Plans.--Subparagraph (A) of section 403(b)(12) of such 
Code is amended by adding at the end the following: ``The fact that the 
employer offers matching contributions on account of qualified student 
loan payments as described in section 401(m)(13) shall not be taken 
into account in determining whether the arrangement satisfies the 
requirements of clause (ii) (and any regulation thereunder).''.
    (f) 457(b) Plans.--Subsection (b) of section 457 of such Code is 
amended by adding at the end the following: ``A plan which is 
established and maintained by an employer which is described in 
subsection (e)(1)(A) shall not be treated as failing to meet the 
requirements of this subsection solely because the plan, or another 
plan maintained by the employer which meets the requirements of section 
401(a), provides for matching contributions on account of qualified 
student loan payments as described in section 401(m)(13).''.
    (g) Regulatory Authority.--The Secretary shall prescribe 
regulations for purposes of implementing the amendments made by this 
section, including regulations--
            (1) permitting a plan to make matching contributions for 
        qualified student loan payments, as defined in sections 
        401(m)(4)(D) and 408(p)(2)(F) of the Internal Revenue Code of 
        1986, as added by this section, at a different frequency than 
        matching contributions are otherwise made under the plan, 
        provided that the frequency is not less than annually;
            (2) permitting employers to establish reasonable procedures 
        to claim matching contributions for such qualified student loan 
        payments under the plan, including an annual deadline (not 
        earlier than 3 months after the close of each plan year) by 
        which a claim must be made; and
            (3) promulgating model amendments which plans may adopt to 
        implement matching contributions on such qualified student loan 
        payments for purposes of sections 401(m), 408(p), 403(b), and 
        457(b) of the Internal Revenue Code of 1986.
    (h) Effective Date.--The amendments made by this section shall 
apply to contributions made for years beginning after December 31, 
2020.

SEC. 111. APPLICATION OF CREDIT FOR SMALL EMPLOYER PENSION PLAN STARTUP 
              COSTS TO EMPLOYERS WHICH JOIN AN EXISTING PLAN.

    (a) In General.--Section 45E(d)(3)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``effective'' and inserting ``effective 
with respect to the eligible employer''.
    (b) Effective Date.--The amendment made by this section shall apply 
to eligible employer plans which become effective with respect to the 
eligible employer after the date of the enactment of this Act.

SEC. 112. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY CREDIT FOR SMALL 
              EMPLOYERS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGIBILITY CREDIT FOR 
              SMALL EMPLOYERS.

    ``(a) In General.--For purposes of section 38, in the case of any 
eligible small employer, the military spouse retirement plan 
eligibility credit determined under this section for any taxable year 
is an amount equal to the sum of--
            ``(1) $250 with respect to each military spouse who is an 
        employee of such employer and who is eligible to participate in 
        an eligible defined contribution plan of such employer at any 
        time during such taxable year, plus
            ``(2) so much of the contributions made by such employer to 
        all such plans with respect to such employee during such 
        taxable year as do not exceed $250.
    ``(b) Limitation.--An individual shall only be taken into account 
as a military spouse under subsection (a) for the taxable year which 
includes the date on which such individual began participating in the 
eligible defined contribution plan of the employer and the 2 succeeding 
taxable years.
    ``(c) Eligible Small Employer.--For purposes of this section--
            ``(1) In general.--The term `eligible small employer' means 
        an eligible employer (as defined in section 
        408(p)(2)(C)(i)(I)).
            ``(2) Application of 2-year grace period.--A rule similar 
        to the rule of section 408(p)(2)(C)(i)(II) shall apply for 
        purposes of this section.
    ``(d) Military Spouse.--For purposes of this section--
            ``(1) In general.--The term `military spouse' means, with 
        respect to any employer, any individual who is married (within 
        the meaning of section 7703 as of the first date that the 
        employee is employed by the employer) to an individual who is a 
        member of the uniformed services (as defined section 101(a)(5) 
        of title 10, United States Code). For purposes of this section, 
        an employer may rely on an employee's certification that such 
        employee's spouse is a member of the uniformed services if such 
        certification provides the name, rank, and service branch of 
        such spouse.
            ``(2) Exclusion of highly compensated employees.--With 
        respect to any employer, the term `military spouse' shall not 
        include any individual if such individual is a highly 
        compensated employee of such employer (within the meaning of 
        section 414(q)).
    ``(e) Eligible Defined Contribution Plan.--For purposes of this 
section, the term `eligible defined contribution plan' means, with 
respect to any eligible small employer, any defined contribution plan 
(as defined in section 414(i)) of such employer if, under the terms of 
such plan--
            ``(1) military spouses employed by such employer are 
        eligible to participate in such plan not later than the date 
        which is 2 months after the date on which such individual 
        begins employment with such employer, and
            ``(2) military spouses who are eligible to participate in 
        such plan--
                    ``(A) are immediately eligible to receive an amount 
                of employer contributions under such plan which is not 
                less the amount of such contributions that a similarly 
                situated participant who is not a military spouse would 
                be eligible to receive under such plan after 2 years of 
                service, and
                    ``(B) immediately have a nonforfeitable right to 
                the employee's accrued benefit derived from employer 
                contributions under such plan.
    ``(f) Aggregation Rule.--All persons treated as a single employer 
under subsection (b), (c), (m), or (o) of section 414 shall be treated 
as one employer for purposes of this section.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of such Code is amended by striking ``plus'' at the end of 
paragraph (32), by striking the period at the end of paragraph (33) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(34) in the case of an eligible small employer (as 
        defined in section 45U(c)), the military spouse retirement plan 
        eligibility credit determined under section 45U(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45U. Military spouse retirement plan eligibility credit for 
                            small employers.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 113. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR CONTRIBUTING TO A 
              PLAN.

    (a) In General.--Subparagraph (A) of section 401(k)(4) of the 
Internal Revenue Code of 1986 is amended by inserting ``(other than a 
de minimis financial incentive)'' after ``any other benefit''.
    (b) Section 403(b) Plans.--Subparagraph (A) of section 403(b)(12) 
of such Code, as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following: ``A plan shall not 
fail to satisfy clause (ii) solely by reason of offering a de minimis 
financial incentive to employees to elect to have the employer make 
contributions pursuant to a salary reduction agreement.''.
    (c) Exemption From Prohibited Transaction Rules.--Subsection (d) of 
section 4975 of such Code is amended by striking ``or'' at the end of 
paragraph (22), by striking the period at the end of paragraph (23) and 
inserting ``, or'', and by adding at the end the following new 
paragraph:
            ``(24) the provision of a de minimis financial incentive 
        described in section 401(k)(4)(A) or 403(b)(12)(A).''.
    (d) Amendment of Employee Retirement Income Security Act of 1974.--
Subsection (b) of section 408 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1108(b)) is amended by adding at the 
end the following new paragraph:
            ``(21) The provision of a de minimis financial incentive 
        described in section 401(k)(4)(A) or 403(b)(12)(A) of the 
        Internal Revenue Code of 1986.''.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to plan years beginning after the date of enactment 
of this Act.

SEC. 114. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE ELECTIVE DEFERRAL 
              FAILURES.

    (a) In General.--Section 414 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(aa) Correcting Automatic Contribution Errors.--
            ``(1) In general.--Any plan or arrangement shall not fail 
        to be treated as a plan described in sections 401(a), 403(b), 
        408, or 457(b), as applicable, solely by reason of a corrected 
        error.
            ``(2) Corrected error defined.--For purposes of this 
        subsection, the term `corrected error' means a reasonable 
        administrative error in implementing an automatic enrollment or 
        automatic escalation feature in accordance with the terms of an 
        eligible automatic contribution arrangement (as defined under 
        subsection (w)(3)), provided that such implementation error--
                    ``(A) is corrected by the date that is 9\1/2\ 
                months after the end of the plan year during which the 
                failure occurred,
                    ``(B) is corrected in a manner that is favorable to 
                the participant, and
                    ``(C) is of a type which is so corrected for all 
                similarly situated participants in a nondiscriminatory 
                manner.
        Such correction may occur before or after the participant has 
        terminated employment and may occur without regard to whether 
        the error is identified by the Secretary.
            ``(3) Regulations and guidance for favorable correction 
        methods.--The Secretary shall, by regulations or other guidance 
        of general applicability, specify the correction methods that 
        are in a manner favorable to the participant for purposes of 
        paragraph (2)(B).''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to any errors with respect to which the date referred to 
in section 414(aa) (as added by this section) is after the date of 
enactment of this Act.

SEC. 115. ONE-YEAR REDUCTION IN PERIOD OF SERVICE REQUIREMENT FOR LONG-
              TERM, PART-TIME WORKERS.

    (a) In General.--Section 401(k)(2)(D)(ii) of the Internal Revenue 
Code of 1986 is amended by striking ``3'' and inserting ``2''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the addition of section 401(k)(2)(D)(ii) of 
such Code by section 112 of the Setting Every Community Up for 
Retirement Enhancement Act of 2019.

SEC. 116. GOVERNMENTAL PENSION PLANS MAY INCLUDE CERTAIN FIREFIGHTERS, 
              EMERGENCY MEDICAL TECHNICIANS, AND PARAMEDICS.

    (a) Internal Revenue Code of 1986.--Section 414(d) of the Internal 
Revenue Code of 1986 (relating to governmental plans) is amended by 
adding at the end the following: ``The term `governmental plan' also 
includes a plan which is established by a State or political 
subdivision thereof and maintained by a public safety agency (described 
in section 501(c) and exempt from taxation under section 501(a)), and 
all of the participants of which are employees of such agency who are 
emergency response providers (defined in section 2 of the Homeland 
Security Act of 2002 (6 U.S.C. 101)), substantially all of whose 
services as emergency response providers are in the performance of 
firefighting services or out-of-hospital emergency medical services for 
a political subdivision of a State under a contract between such public 
safety agency and the political subdivision of a State.''.
    (b) Employee Retirement Income Security Act of 1974.--
            (1) In general.--Section 3(32) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002(32)) is amended by 
        adding at the end the following: ``. The term `governmental 
        plan' also includes a plan which is established by a State or 
        political subdivision thereof and maintained by a public safety 
        agency (described in section 501(c) of the Internal Revenue 
        Code of 1986 and exempt from taxation under section 501(a) of 
        such Code), and all of the participants of which are employees 
        of such agency who are emergency response providers (defined in 
        section 2 of the Homeland Security Act of 2002 (6 U.S.C. 101)), 
        substantially all of whose services as emergency response 
        providers are in the performance of firefighting services or 
        out-of-hospital emergency medical services for a political 
        subdivision of a State under a contract between such public 
        safety agency and the political subdivision of a State.''.
            (2) PBGC exception.--Section 4021(b)(2) of such Act (29 
        U.S.C. 1321(b)(2)) is amended by striking ``described in the 
        last sentence of section 3(32)'' and inserting ``described in 
        either of the last two sentences of section 3(32).''.
    (c) Conforming Amendments.--
            (1) Section 414(h)(2) of the Internal Revenue Code of 1986 
        is amended by striking ``described in the last sentence of 
        section 414(d) (relating to plans of Indian tribal 
        governments)'' and inserting ``described in either of the last 
        two sentences of subsection (d)''.
            (2) Section 415(b)(2)(H)(i) of such Code is amended by 
        adding at the end the following: ``or a public safety agency 
        described in the last sentence of section 414(d),''.
            (3) Section 415(b)(2)(H)(ii)(I) of such Code is amended by 
        striking ``or any political subdivision'' and inserting ``any 
        political subdivision, or a public safety agency described in 
        the last sentence of section 414(d)''.
            (4) Section 415(b)(10)(A) of such Code is amended by 
        striking ``described in the last sentence of section 414(d) 
        (relating to plans of Indian tribal governments)'' and 
        inserting ``described in either of the last two sentences of 
        section 414(d)''.
    (d) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after the date of the enactment of this Act.

                    TITLE II--PRESERVATION OF INCOME

SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION BARRIERS FOR LIFE 
              ANNUITIES.

    (a) In General.--Paragraph (9) of section 401(a) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(J) Certain increases in payments under a 
                commercial annuity.--Nothing in this section shall 
                prohibit a commercial annuity (within the meaning of 
                section 3405(e)(6)) that is issued in connection with 
                any eligible retirement plan (within the meaning of 
                section 402(c)(8)(B), other than a defined benefit 
                plan) from providing one or more of the following types 
                of payments on or after the annuity starting date:
                            ``(i) annuity payments that increase by a 
                        constant percentage, applied not less 
                        frequently than annually, at a rate that is 
                        less than 5 percent per year,
                            ``(ii) a lump sum payment that--
                                    ``(I) results in a shortening of 
                                the payment period with respect to an 
                                annuity or a full or partial 
                                commutation of the future annuity 
                                payments, provided that such lump sum 
                                is determined using reasonable 
                                actuarial methods and assumptions, as 
                                determined in good faith by the issuer 
                                of the contract, or
                                    ``(II) accelerates the receipt of 
                                annuity payments that are scheduled to 
                                be received within the ensuing 12 
                                months, regardless of whether such 
                                acceleration shortens the payment 
                                period with respect to the annuity, 
                                reduces the dollar amount of benefits 
                                to be paid under the contract, or 
                                results in a suspension of annuity 
                                payments during the period being 
                                accelerated,
                            ``(iii) an amount which is in the nature of 
                        a dividend or similar distribution, provided 
                        that the issuer of the contract determines such 
                        amount based on a reasonable comparison of the 
                        actuarial factors assumed when calculating the 
                        initial annuity payments and the issuer's 
                        experience with respect to those factors, or
                            ``(iv) a final payment upon death that does 
                        not exceed the excess of the total amount of 
                        the consideration paid for the annuity 
                        payments, less the aggregate amount of prior 
                        distributions or payments from or under the 
                        contract.''.
    (b) Regulations and Enforcement.--
            (1) Regulations.--By the date that is one year after the 
        date of enactment of this Act, the Secretary of the Treasury 
        shall amend the regulation issued by the Department of the 
        Treasury relating to ``Required Distributions from Retirement 
        Plans'', 69 Fed. Reg. 33288 (June 15, 2004), and make any 
        corresponding amendments to other regulations, in order to--
                    (A) conform such regulations to subsection (a), 
                including by eliminating the types of payments 
                described in subsection (a) from the scope of the 
                requirement in Q&A-14(c) of Treasury Regulation section 
                1.401(a)(9)-6 that the total future expected payments 
                must exceed the total value being annuitized;
                    (B) amend Q&A-14(c) of Treasury Regulation section 
                1.401(a)(9)-6 to provide that a commercial annuity that 
                provides an initial payment that is at least equal to 
                the initial payment that would be required from an 
                individual account pursuant to Treasury Regulation 
                section 1.401(a)(9)-5 will be deemed to satisfy the 
                requirement in Q&A-14(c) of Treasury Regulation section 
                1.401(a)(9)-6 that the total future expected payments 
                must exceed the total value being annuitized; and
                    (C) amend Q&A-14(e)(3) of Treasury Regulation 
                section 1.401(a)(9)-6 to provide that the total future 
                expected payments under a commercial annuity are 
                determined using the tables or other actuarial 
                assumptions that the issuer of the contract actually 
                uses in pricing the premiums and benefits with respect 
                to the contract, provided that such tables or other 
                actuarial assumptions are reasonable.
            (2) Enforcement.--As of the date of enactment of this Act, 
        the Secretary of the Treasury shall administer and enforce the 
        law in accordance with subsections (a) and (b).
    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS.

    (a) In General.--Not later than the date which is 1 year after the 
date of the enactment of this Act, the Secretary of the Treasury or the 
Secretary's delegate (hereafter in this section referred to as the 
``Secretary'') shall amend the regulation issued by the Department of 
the Treasury relating to ``Longevity Annuity Contracts'' (79 Fed. Reg. 
37633 (July 2, 2014)), as follows:
            (1) Repeal 25-percent premium limit.--The Secretary shall 
        amend Q&A-17(b)(3) of Treasury Regulation section 1.401(a)(9)-6 
        and Q&A-12(b)(3) of Treasury Regulation section 1.408-8 to 
        eliminate the requirement that premiums for qualifying 
        longevity annuity contracts be limited to a percentage of an 
        individual's account balance, and to make such corresponding 
        changes to the regulations and related forms as are necessary 
        to reflect the elimination of this requirement.
            (2) Increase dollar limitation.--
                    (A) In general.--The Secretary shall amend Q&A-
                17(b)(2)(i) of Treasury Regulation section 1.401(a)(9)-
                6 and Q&A-12(b)(2)(i) of Treasury Regulation section 
                1.408-8 to increase the dollar limitation on premiums 
                for qualifying longevity annuity contracts from 
                $125,000 to $200,000, and to make such corresponding 
                changes to the regulations and related forms as are 
                necessary to reflect this increase in the dollar 
                limitation.
                    (B) Adjustments for inflation.--The Secretary shall 
                amend Q&A-17(d)(2)(i) of Treasury Regulation section 
                1.401(a)(9)-6 to provide that, in the case of calendar 
                years beginning on or after January 1 of the second 
                year following the year of enactment of this Act, the 
                $200,000 dollar limitation (as increased by 
                subparagraph (A)) will be adjusted at the same time and 
                in the same manner as the limits are adjusted under 
                section 415(d) of the Internal Revenue Code of 1986, 
                except that the base period shall be the calendar 
                quarter beginning July 1 of the year of enactment of 
                this Act, and any increase to such dollar limitation 
                which is not a multiple of $10,000 will be rounded to 
                the next lowest multiple of $10,000.
            (3) Facilitate joint and survivor benefits.--The Secretary 
        shall amend Q&A-17(c) of Treasury Regulation section 
        1.401(a)(9)-6, and make such corresponding changes to the 
        regulations and related forms as are necessary, to provide 
        that, in the case of a qualifying longevity annuity contract 
        which was purchased with joint and survivor annuity benefits 
        for the individual and the individual's spouse which were 
        permissible under the regulations at the time the contract was 
        originally purchased, a divorce occurring after the original 
        purchase and before the annuity payments commence under the 
        contract will not affect the permissibility of the joint and 
        survivor annuity benefits or other benefits under the contract, 
        or require any adjustment to the amount or duration of benefits 
        payable under the contract, provided that any qualified 
        domestic relations order (within the meaning of section 414(p) 
        of the Internal Revenue Code of 1986) or any divorce or 
        separation instrument (as defined in subsection (b))--
                    (A) provides that the former spouse is entitled to 
                the survivor benefits under the contract;
                    (B) does not modify the treatment of the former 
                spouse as the beneficiary under the contract who is 
                entitled to the survivor benefits; or
                    (C) does not modify the treatment of the former 
                spouse as the measuring life for the survivor benefits 
                under the contract.
            (4) Permit short free look period.--The Secretary shall 
        amend Q&A-17(a)(4) of Treasury Regulation section 1.401(a)(9)-6 
        to ensure that such Q&A does not preclude a contract from 
        including a provision under which an employee may rescind the 
        purchase of the contract within a period not exceeding 90 days 
        from the date of purchase.
    (b) Divorce or Separation Instrument.--For purposes of subsection 
(a)(3), the term ``divorce or separation instrument'' means--
            (1) a decree of divorce or separate maintenance or a 
        written instrument incident to such a decree,
            (2) a written separation agreement, or
            (3) a decree (not described in paragraph (1)) requiring a 
        spouse to make payments for the support or maintenance of the 
        other spouse.
    (c) Effective Dates, Enforcement, and Interpretations.--
            (1) Effective dates.--
                    (A) Paragraphs (1) and (2) of subsection (a) shall 
                be effective with respect to contracts purchased or 
                received in an exchange on or after the date of the 
                enactment of this Act.
                    (B) Paragraphs (3) and (4) of subsection (a) shall 
                be effective with respect to contracts purchased or 
                received in an exchange on or after July 2, 2014.
            (2) Enforcement and interpretations.--Prior to the date on 
        which the Secretary issues final regulations pursuant to 
        subsection (a)--
                    (A) the Secretary (or delegate) shall administer 
                and enforce the law in accordance with subsection (a) 
                and the effective dates in paragraph (1) of this 
                subsection; and
                    (B) taxpayers may rely upon their reasonable good 
                faith interpretations of subsection (a).

SEC. 203. INSURANCE-DEDICATED EXCHANGE-TRADED FUNDS.

    (a) In General.--Not later than the date which is 1 year after the 
date of the enactment of this Act, the Secretary of the Treasury (or 
the Secretary's delegate) shall amend the regulation issued by the 
Department of the Treasury relating to ``Income Tax; Diversification 
Requirements for Variable Annuity, Endowment, and Life Insurance 
Contracts'', 54 Fed. Reg. 8728 (March 2, 1989), and make any necessary 
corresponding amendments to other regulations, in order to facilitate 
the use of exchange-traded funds as investment options under variable 
contracts within the meaning of section 817(d) of the Internal Revenue 
Code of 1986, in accordance with subsections (b) and (c) of this 
section.
    (b) Designate Certain Authorized Participants and Market Makers as 
Eligible Investors.--The Secretary of the Treasury (or the Secretary's 
delegate) shall amend Treas. Reg. section 1.817-5(f)(3) to provide that 
satisfaction of the requirements in Treas. Reg. section 1.817-
5(f)(2)(i) with respect to an exchange-traded fund shall not be 
prevented by reason of beneficial interests in such a fund being held 
by 1 or more authorized participants or market makers.
    (c) Confirm That Similarities to Other Funds Are Irrelevant.--The 
Secretary of the Treasury (or the Secretary's delegate) shall amend 
Treas. Reg. section 1.817-5(f) to confirm that, for Federal income tax 
purposes, a regulated investment company, partnership, or trust 
(including an exchange-traded fund) that satisfies the requirements of 
Treas. Reg. section 1.817-5(f) (2) and (3) shall not be treated as 
owned by the holder of a variable contract pursuant to the principles 
of Rev. Rul. 81-225, 1981-2 C.B. 12, merely because another regulated 
investment company, partnership, trust, or similar investment vehicle 
follows the same investment strategy, has the same investment manager, 
or holds the same investments.
    (d) Define Relevant Terms.--In amending Treas. Reg. section 1.817-
5(f)(3) in accordance with subsections (b) and (c) of this section, the 
Secretary of the Treasury (or the Secretary's delegate) shall provide 
definitions consistent with the following:
            (1) Exchange-traded fund.--The term ``exchange-traded 
        fund'' means a regulated investment company, partnership, or 
        trust--
                    (A) that is registered with the Securities and 
                Exchange Commission as an open-end investment company 
                or a unit investment trust;
                    (B) the shares of which can be purchased or 
                redeemed directly from the fund only by an authorized 
                participant; and
                    (C) the shares of which are traded throughout the 
                day on a national stock exchange at market prices that 
                may or may not be the same as the net asset value of 
                the shares.
            (2) Authorized participant.--The term ``authorized 
        participant'' means a financial institution that is a member or 
        participant of a clearing agency registered under section 
        17A(b) of the Securities Exchange Act of 1934 that enters into 
        a contractual relationship with an exchange-traded fund 
        pursuant to which the financial institution is permitted to 
        purchase and redeem shares directly from the fund and to sell 
        such shares to third parties, but only if the contractual 
        arrangement or applicable law precludes the financial 
        institution from--
                    (A) purchasing the shares for its own investment 
                purposes rather than for the exclusive purpose of 
                creating and redeeming such shares on behalf of third 
                parties; and
                    (B) selling the shares to third parties who are not 
                market makers or otherwise described in Treas. Reg. 
                section 1.817-5(f) (1) and (3).
            (3) Market maker.--The term ``market maker'' means a 
        financial institution that is a registered broker or dealer 
        under section 15(b) of the Securities Exchange Act of 1934 that 
        maintains liquidity for an exchange-traded fund on a national 
        stock exchange by being always ready to buy and sell shares of 
        such fund on the market, but only if the financial institution 
        is contractually or legally precluded from selling or buying 
        such shares to or from persons who are not authorized 
        participants or otherwise described in Treas. Reg. section 
        1.817-5(f) (2) and (3).
    (e) Effective Dates, Enforcement, and Interpretations.--
            (1) Effective dates.--
                    (A) Subsection (b).--Subsection (b), and the 
                definitions under subsection (d), shall apply to 
                segregated asset account investments made on or after 
                the earlier of--
                            (i) the date that is 18 months after the 
                        date of the of enactment of this Act, or
                            (ii) the date on which the amendments to 
                        regulations under subsection (b) are made.
                    (B) Subsection (c).--Subsection (c) shall apply to 
                taxable years beginning after the date of the enactment 
                of this Act.
            (2) Enforcement and interpretations.--Prior to the date 
        that the Secretary of the Treasury (or the Secretary's 
        delegate) issues final regulations pursuant to this section--
                    (A) the Secretary (or delegate) shall administer 
                and enforce the law in accordance with this section and 
                the effective dates under paragraph (1), and
                    (B) taxpayers may rely upon their reasonable good 
                faith interpretations of the preceding subsections of 
                this section.
            (3) No inference.--Nothing contained in the amendments to 
        regulations pursuant to subsection (c), or the administration 
        and enforcement of such subsection under paragraph (2), shall 
        be construed to create any inference as to a change in law or 
        guidance in effect prior to enactment of this section.

  TITLE III--SIMPLIFICATION AND CLARIFICATION OF RETIREMENT PLAN RULES

SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAYMENTS.

    (a) Overpayments Under Internal Revenue Code of 1986.--
            (1) Qualification requirements.--Section 414 of the 
        Internal Revenue Code of 1986, as amended by the preceding 
        provisions of this Act, is further amended by adding at the end 
        the following new subsection:
    ``(bb) Special Rules Applicable to Benefit Overpayments.--
            ``(1) In general.--A plan shall not fail to be treated as 
        described in clause (i), (ii), (iii), or (iv) of section 
        219(g)(5)(A) (and shall not fail to be treated as satisfying 
        the requirements of section 401(a) or 403) merely because--
                    ``(A) the plan fails to obtain payment from any 
                participant, beneficiary, employer, plan sponsor, 
                fiduciary, or other party on account of any inadvertent 
                benefit overpayment made by the plan, or
                    ``(B) the plan sponsor amends the plan to increase 
                past or future benefit payments to affected 
                participants and beneficiaries in order to adjust for 
                prior inadvertent benefit overpayments.
            ``(2) Reduction in future benefit payments and recovery 
        from responsible party.--Paragraph (1) shall not fail to apply 
        to a plan merely because, after discovering a benefit 
        overpayment, such plan--
                    ``(A) reduces future benefit payments to the 
                correct amount provided for under the terms of the 
                plan, or
                    ``(B) seeks recovery from the person or persons 
                responsible for such overpayment.
            ``(3) Employer funding obligations.--Nothing in this 
        subsection shall relieve an employer of any obligation imposed 
        on it to make contributions to a plan to meet the minimum 
        funding standards under section 412 or to prevent or restore an 
        impermissible forfeiture in accordance with section 411.
            ``(4) Observance of benefit limitations.--Notwithstanding 
        paragraph (1), a plan to which paragraph (1) applies shall 
        observe any limitations imposed on it by section 401(a)(17) or 
        415. The plan may enforce such limitations using any method 
        approved by the Secretary for recouping benefits previously 
        paid or allocations previously made in excess of such 
        limitations.
            ``(5) Coordination with other qualification requirements.--
        The Secretary may issue regulations or other guidance of 
        general applicability specifying how benefit overpayments and 
        their recoupment or non-recoupment from a participant or 
        beneficiary shall be taken into account for purposes of 
        satisfying any requirement applicable to a plan to which 
        paragraph (1) applies.''.
            (2) Rollovers.--Section 402(c) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(13) In the case of an inadvertent benefit overpayment 
        from a plan to which section 414(bb)(1) applies which is 
        transferred to an eligible retirement plan by or on behalf of a 
        participant or beneficiary--
                    ``(A) the portion of such overpayment with respect 
                to which recoupment is not sought on behalf of the plan 
                shall be treated as having been paid in an eligible 
                rollover distribution if the payment would have been an 
                eligible rollover distribution but for being an 
                overpayment, and
                    ``(B) the portion of such overpayment with respect 
                to which recoupment is sought on behalf of the plan 
                shall be permitted to be returned to such plan and in 
                such case shall be treated as an eligible rollover 
                distribution transferred to such plan by the 
                participant or beneficiary who received such 
                overpayment (and the plans making and receiving such 
                transfer shall be treated as permitting such transfer).
        In any case in which recoupment is sought on behalf of the plan 
        but is disputed by the participant or beneficiary who received 
        such overpayment, such dispute shall be subject to the claims 
        and appeals procedures of the plan that made such overpayment, 
        such plan shall notify the plan receiving the rollover of such 
        dispute, and the plan receiving the rollover shall retain such 
        overpayment on behalf of the participant or beneficiary (and 
        shall be entitled to treat such overpayment as plan assets) 
        pending the outcome of such procedures.''.
    (b) Overpayments Under ERISA.--Section 206 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1056) is amended by 
adding at the end the following new subsection:
    ``(h) Special Rules Applicable to Benefit Overpayments.--
            ``(1) General rule.--In the case of an inadvertent benefit 
        overpayment by any pension plan, the responsible plan fiduciary 
        shall not be considered to have failed to comply with the 
        requirements of this title merely because such fiduciary 
        determines, in the exercise of its fiduciary discretion, not to 
        seek recovery of all or part of such overpayment from--
                    ``(A) any participant or beneficiary,
                    ``(B) any plan sponsor of, or contributing employer 
                to--
                            ``(i) an individual account plan, provided 
                        that the amount needed to prevent or restore 
                        any impermissible forfeiture from any 
                        participant's or beneficiary's account arising 
                        in connection with the overpayment is, 
                        separately from and independently of the 
                        overpayment, allocated to such account pursuant 
                        to the nonforfeitability requirements of 
                        section 203 (for example, out of the plan's 
                        forfeiture account, additional employer 
                        contributions, or recoveries from those 
                        responsible for the overpayment), or
                            ``(ii) a defined benefit pension plan 
                        subject to the funding rules in part 3 of this 
                        subtitle B, unless the responsible plan 
                        fiduciary determines, in the exercise of its 
                        fiduciary discretion, that failure to recover 
                        all or part of the overpayment faster than 
                        required under such funding rules would 
                        materially affect the plan's ability to pay 
                        benefits due to other participants and 
                        beneficiaries, or
                    ``(C) any fiduciary of the plan, other than a 
                fiduciary (including a plan sponsor or contributing 
                employer acting in a fiduciary capacity) whose breach 
                of its fiduciary duties resulted in such overpayment, 
                provided that if the plan has established prudent 
                procedures to prevent and minimize overpayment of 
                benefits and the relevant plan fiduciaries have 
                followed such procedures, an inadvertent benefit 
                overpayment will not give rise to a breach of fiduciary 
                duty.
            ``(2) Reduction in future benefit payments and recovery 
        from responsible party.--Paragraph (1) shall not fail to apply 
        with respect to any inadvertent benefit overpayment merely 
        because, after discovering such overpayment, the responsible 
        plan fiduciary--
                    ``(A) reduces future benefit payments to the 
                correct amount provided for under the terms of the 
                plan, or
                    ``(B) seeks recovery from the person or persons 
                responsible for the overpayment.
            ``(3) Employer funding obligations.--Nothing in this 
        subsection shall relieve an employer of any obligation imposed 
        on it to make contributions to a plan to meet the minimum 
        funding standards under part 3 of this subtitle B or to prevent 
        or restore an impermissible forfeiture in accordance with 
        section 203.
            ``(4) Recoupment from participants and beneficiaries.--If 
        the responsible plan fiduciary, in the exercise of its 
        fiduciary discretion, decides to seek recoupment from a 
        participant or beneficiary of all or part of an inadvertent 
        benefit overpayment made by the plan to such participant or 
        beneficiary, it may do so, subject to the following conditions:
                    ``(A) No interest or other additional amounts (such 
                as collection costs or fees) are sought on overpaid 
                amounts.
                    ``(B) If the plan seeks to recoup past overpayments 
                of a non-decreasing periodic benefit by reducing future 
                benefit payments--
                            ``(i) the reduction ceases after the plan 
                        has recovered the full dollar amount of the 
                        overpayment,
                            ``(ii) the amount recouped each calendar 
                        year does not exceed 10 percent of the full 
                        dollar amount of the overpayment, and
                            ``(iii) future benefit payments are not 
                        reduced to below 90 percent of the periodic 
                        amount otherwise payable under the terms of the 
                        plan.
                Alternatively, if the plan seeks to recoup past 
                overpayments of a non-decreasing periodic benefit 
                through one or more installment payments, the sum of 
                such installment payments in any calendar year does not 
                exceed the sum of the reductions that would be 
                permitted in such year under the preceding sentence.
                    ``(C) If the plan seeks to recoup past overpayments 
                of a benefit other than a non-decreasing periodic 
                benefit, the plan satisfies requirements developed by 
                the Secretary of the Treasury for purposes of this 
                subparagraph.
                    ``(D) Efforts to recoup overpayments are not made 
                through a collection agency or similar third party and 
                such efforts are not accompanied by threats of 
                litigation, unless the responsible plan fiduciary 
                reasonably believes it could prevail in a civil action 
                brought in Federal or State court to recoup the 
                overpayments.
                    ``(E) Recoupment of past overpayments to a 
                participant is not sought from any beneficiary of the 
                participant, including a spouse, surviving spouse, 
                former spouse, or other beneficiary.
                    ``(F) Recoupment may not be sought if the first 
                overpayment occurred more than 3 years before the 
                participant or beneficiary is first notified in writing 
                of the error.
                    ``(G) A participant or beneficiary from whom 
                recoupment is sought is entitled to contest all or part 
                of the recoupment pursuant to the plan's claims and 
                appeals procedures.
                    ``(H) In determining the amount of recoupment to 
                seek, the responsible plan fiduciary may take into 
                account the hardship that recoupment likely would 
                impose on the participant or beneficiary.
            ``(5) Effect of culpability.--Subparagraphs (A) through (F) 
        of paragraph (4) shall not apply to protect a participant or 
        beneficiary who is culpable. For purposes of this paragraph, a 
        participant or beneficiary is culpable if the individual bears 
        responsibility for the overpayment (such as through 
        misrepresentations or omissions that led to the overpayment), 
        or if the individual knew, or had good reason to know under the 
        circumstances, that the benefit payment or payments were 
        materially in excess of the correct amount. Notwithstanding the 
        preceding sentence, an individual is not culpable merely 
        because the individual believed the benefit payment or payments 
        were or might be in excess of the correct amount, if the 
        individual raised that question with an authorized plan 
        representative and was told the payment or payments were not in 
        excess of the correct amount. With respect to a culpable 
        participant or beneficiary, efforts to recoup overpayments 
        shall not be made through threats of litigation, unless a 
        lawyer for the plan could make the representations required 
        under Rule 11 of the Federal Rules of Civil Procedure if the 
        litigation were brought in Federal court.''.
    (c) Effective Date.--The amendments made by this section shall 
apply as of the date of the enactment of this Act.
    (d) Certain Actions Before Date of Enactment.--Plans, fiduciaries, 
employers, and plan sponsors are entitled to rely on--
            (1) a good faith interpretation of then existing 
        administrative guidance for inadvertent benefit overpayment 
        recoupments and recoveries that commenced before the date of 
        enactment of this Act, and
            (2) determinations made before such date of enactment by 
        the responsible plan fiduciary, in the exercise of its 
        fiduciary discretion, not to seek recoupment or recovery of all 
        or part of an inadvertent benefit overpayment.
In the case of a benefit overpayment that occurred prior to the date of 
enactment of this Act, any installment payments by the participant or 
beneficiary to the plan or any reduction in periodic benefit payments 
to the participant or beneficiary, which were made in recoupment of 
such overpayment and which commenced prior to such date, may continue 
after such date. Nothing in this subsection shall relieve a fiduciary 
from responsibility for an overpayment that resulted from a breach of 
its fiduciary duties.

SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMULATIONS IN QUALIFIED 
              RETIREMENT PLANS.

    (a) In General.--Subsection (a) of section 4974 of the Internal 
Revenue Code of 1986 is amended by striking ``50 percent'' and 
inserting ``25 percent''.
    (b) Reduction in Excise Tax on Failures To Take Required Minimum 
Distributions.--Section 4974 of such Code is amended by adding at the 
end the following new subsection:
    ``(e) Reduction of Tax in Certain Cases.--
            ``(1) Reduction.--In the case of a taxpayer who--
                    ``(A) corrects, during the correction window, a 
                shortfall of distributions from an individual 
                retirement plan which resulted in imposition of a tax 
                under subsection (a), and
                    ``(B) submits a return, during the correction 
                window, reflecting such tax (as modified by this 
                subsection),
        the first sentence of subsection (a) shall be applied by 
        substituting `10 percent' for `25 percent'.
            ``(2) Correction window.--For purposes of this subsection, 
        the term `correction window' means the period of time beginning 
        on the date on which the tax under subsection (a) is imposed 
        with respect to a shortfall of distributions from an individual 
        retirement plan, and ending on the earlier of--
                    ``(A) the date on which the Secretary initiates an 
                audit, or otherwise demands payment, with respect to 
                the shortfall of distributions, or
                    ``(B) the last day of the second taxable year that 
                begins after the end of the taxable year in which the 
                tax under subsection (a) is imposed.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.

SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Labor (or the Secretary's 
delegate) shall modify the regulations under section 404 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104) to 
provide that, in the case of a designated investment alternative which 
contains a mix of asset classes, a plan administrator may, but is not 
required to, use a benchmark which is a blend of different broad-based 
securities market indices if--
            (1) the blend is reasonably representative of the asset 
        class holdings of the designated investment alternative;
            (2) for purposes of determining the blend's returns for 1-, 
        5-, and 10-calendar-year periods (or for the life of the 
        alternative, if shorter), the blend is modified at least once 
        per year to reflect changes in the asset class holdings of the 
        designated investment alternative;
            (3) the blend is furnished to participants and 
        beneficiaries in a manner that is reasonably designed to be 
        understandable and helpful; and
            (4) each securities market index which is used for an 
        associated asset class would separately satisfy the 
        requirements of such regulations for such asset class.
    (b) Study.--Not later than December 31, 2021, the Secretary of 
Labor (or the Secretary's delegate) shall deliver a report to the 
Committees on Ways and Means and Education and Labor of the House of 
Representatives and the Committees on Finance and Health, Education, 
Labor, and Pensions of the Senate regarding the effectiveness of the 
benchmarking requirements under section 2550.404a-5 of title 29, Code 
of Federal Regulations.

SEC. 304. REVIEW AND REPORT TO THE CONGRESS RELATING TO REPORTING AND 
              DISCLOSURE REQUIREMENTS.

    (a) Study.--As soon as practicable after the date of the enactment 
of this Act, the Secretary of Labor, the Secretary of the Treasury, and 
the Pension Benefit Guaranty Corporation shall review the reporting and 
disclosure requirements of--
            (1) title I of the Employee Retirement Income Security Act 
        of 1974 applicable to pension plans (as defined in section 3(2) 
        of such Act); and
            (2) the Internal Revenue Code of 1986 applicable to 
        qualified retirement plans (as defined in section 4974(c) of 
        such Code without regard to paragraphs (4) and (5) thereof).
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Labor, the Secretary of the 
Treasury, and the Pension Benefit Guaranty Corporation, jointly, and 
after consultation with a balanced group of participant and employer 
representatives, shall with respect to plans referenced in subsection 
(a) report on the effectiveness of the applicable reporting and 
disclosure requirements and make such recommendations as may be 
appropriate to the appropriate committees of the Congress to 
consolidate, simplify, standardize, and improve such requirements so as 
to simplify reporting for such plans and ensure that plans can simply 
furnish and participants and beneficiaries timely receive and better 
understand the information they need to monitor their plans, plan for 
retirement, and obtain the benefits they have earned. Such report shall 
assess the extent to which retirement plans are retaining disclosures, 
work records, and plan documents that are needed to ensure accurate 
calculation of future benefits. To assess the effectiveness of the 
applicable reporting and disclosure requirements, the report shall 
include an analysis, based on plan data, of how participants and 
beneficiaries are providing preferred contact information, the methods 
by which plan sponsors and plans are furnishing disclosures, and the 
rate at which participants and beneficiaries (grouped by key 
demographics) are receiving, accessing, and retaining disclosures. The 
agencies shall conduct appropriate surveys and data collection to 
obtain any needed information.

SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED TO 
              UNENROLLED PARTICIPANTS.

    (a) Amendment of Internal Revenue Code of 1986.--Section 414 of the 
Internal Revenue Code of 1986, as amended by the preceding provisions 
of this Act, is further amended by adding at the end the following new 
subsection:
    ``(cc) Eliminating Unnecessary Plan Requirements Related to 
Unenrolled Participants.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, with respect to any defined contribution plan, no 
        disclosure, notice, or other plan document (other than the 
        notices and documents described in subparagraphs (A) and (B)) 
        shall be required to be furnished under this title to any 
        unenrolled participant if the unenrolled participant receives--
                    ``(A) in connection with the annual open season 
                election period with respect to the plan or, if there 
                is no such period, within a reasonable period prior to 
                the beginning of each plan year, an annual reminder 
                notice (in paper format, or in any electronic format 
                consented to by the participant) of such participant's 
                eligibility to participate in such plan and any 
                applicable election deadlines under the plan, and
                    ``(B) any document requested by such participant 
                which the participant would be entitled to receive 
                without regard to this subsection.
            ``(2) Unenrolled participant.--For purposes of this 
        subsection, the term `unenrolled participant' means an employee 
        who--
                    ``(A) is eligible to participate in a defined 
                contribution plan,
                    ``(B) has been furnished all required notices, 
                disclosures, and other plan documents required to be 
                furnished under this title and the summary plan 
                description as provided in section 104(b) of the 
                Employee Retirement Income Security Act of 1974 in 
                connection with such participant's initial eligibility 
                to participate in such plan,
                    ``(C) is not participating in such plan, and
                    ``(D) does not have a balance in the plan.
        For purposes of this subsection, any eligibility to participate 
        in the plan following any period for which such employee was 
        not eligible to participate shall be treated as initial 
        eligibility.
            ``(3) Annual reminder notice.--For purposes of this 
        subsection, the term `annual reminder notice' means the notice 
        described in section 111(c) of the Employee Retirement Income 
        Security Act of 1974.''.
    (b) Amendment of Employee Retirement Income Security Act of 1974.--
            (1) In general.--Part 1 of subtitle B of subchapter I of 
        the Employee Retirement Income Security Act of 1974 is amended 
        by redesignating section 111 as section 112 and by inserting 
        after section 110 the following new section:

``SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED TO 
              UNENROLLED PARTICIPANTS.

    ``(a) In General.--Notwithstanding any other provision of this 
title, with respect to any individual account plan, no disclosure, 
notice, or other plan document (other than the notices and documents 
described in paragraphs (1) and (2)) shall be required to be furnished 
under this title to any unenrolled participant if the unenrolled 
participant receives--
            ``(1) in connection with the annual open season election 
        period with respect to the plan or, if there is no such period, 
        within a reasonable period prior to the beginning of each plan 
        year, an annual reminder notice of such participant's 
        eligibility to participate in such plan and any applicable 
        election deadlines under the plan; and
            ``(2) any document requested by such participant which the 
        participant would be entitled to receive without regard to this 
        section.
    ``(b) Unenrolled Participant.--For purposes of this section, the 
term `unenrolled participant' means an employee who--
            ``(1) is eligible to participate in an individual account 
        plan;
            ``(2) has received all required notices, disclosures, and 
        other plan documents, including the summary plan description, 
        required to be furnished under this title in connection with 
        such participant's initial eligibility to participate in such 
        plan;
            ``(3) is not participating in such plan; and
            ``(4) does not have a balance in the plan.
For purposes of this section, any eligibility to participate in the 
plan following any period for which such employee was not eligible to 
participate shall be treated as initial eligibility.
    ``(c) Annual Reminder Notice.--For purposes of this section, the 
term `annual reminder notice' means a notice provided in accordance 
with section 2520.104b-1 of title 29, Code of Federal Regulations (or 
any successor regulation), which--
            ``(1) is furnished in connection with the annual open 
        season election period with respect to the plan or, if there is 
        no such period, is furnished within a reasonable period prior 
        to the beginning of each plan year;
            ``(2) notifies the unenrolled participant of--
                    ``(A) the unenrolled participant's eligibility to 
                participate in the plan; and
                    ``(B) the key benefits under the plan and the key 
                rights and features under the plan affecting such 
                benefits; and
            ``(3) provides such information in a prominent manner 
        calculated to be understood by the average participant.''.
            (2) Clerical amendment.--The table of contents in section 1 
        of the Employee Retirement Income Security Act of 1974 is 
        amended by striking the item relating to section 111 and by 
        inserting after the item relating to section 110 the following 
        new items:

``Sec. 111. Eliminating unnecessary plan requirements related to 
                            unenrolled participants.
``Sec. 112. Repeal and effective date.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2020.

SEC. 306. RETIREMENT SAVINGS LOST AND FOUND.

    (a) Retirement Savings Lost and Found.--
            (1) Establishment.--
                    (A) In general.--Not later than 2 years after the 
                date of the enactment of this Act, the Secretary of 
                Labor, the Secretary of the Treasury, and the Secretary 
                of Commerce, in cooperation, shall establish an Office 
                of the Retirement Savings Lost and Found, which shall 
                develop and maintain an online searchable database (to 
                be managed by the Pension Benefit Guaranty Corporation) 
                of unclaimed vested benefits of participants and 
                beneficiaries in plans--
                            (i) to allow an individual to search for 
                        information that enables the individual to 
                        locate the plan administrator of any plans with 
                        respect to which the individual is a 
                        participant or beneficiary, and to provide 
                        contact information for the plan administrator 
                        of any plan described in subparagraph (B) with 
                        respect to which the individual may be entitled 
                        to a benefit;
                            (ii) to allow the corporation to assist 
                        such an individual in locating any plan of the 
                        individual; and
                            (iii) to allow the corporation to make any 
                        necessary changes to contact information on 
                        record for the plan administrator based on any 
                        changes to the plan due to merger or 
                        consolidation of the plan with any other plan, 
                        division of the plan into two or more plans, 
                        bankruptcy, termination, change in name of the 
                        plan, change in name or address of the plan 
                        administrator, or other causes.
                The Retirement Savings Lost and Found established under 
                this paragraph shall contain the information obtained 
                by the corporation from the Internal Revenue Service 
                regarding deferred vested benefits of separated 
                participants and beneficiaries in plans as reported 
                under section 6057(d) of the Internal Revenue Code of 
                1986, as amended by this subsection, and the 
                information on missing participants collected as part 
                of the corporation's Missing Participant Program 
                established under section 4050 of the Employee 
                Retirement Income Security Act of 1974.
                    (B) Plans described.--A plan described in this 
                subparagraph is a plan to which the vesting standards 
                of section 203 of part 2 of subtitle B of title I of 
                the Employee Retirement Income Security Act of 1974 
                apply.
            (2) Administration.--The Retirement Savings Lost and Found 
        established under paragraph (1) shall provide individuals 
        described in paragraph (1)(A) only with the ability to view 
        contact information for the plan administrator of any plan with 
        respect to which the individual is a participant or 
        beneficiary, sufficient to allow the individual to locate the 
        individual's plan in order to recover any benefit owing to the 
        individual under the plan.
            (3) Current information.--
                    (A) In general.--Paragraph (2) of section 6057(a) 
                of the Internal Revenue Code of 1986 is amended--
                            (i) in subparagraph (C)--
                                    (I) by striking ``during such plan 
                                year'' in clause (i) and inserting 
                                ``during the plan year immediately 
                                preceding such plan year'';
                                    (II) by adding ``and'' at the end 
                                of clause (i); and
                                    (III) by striking clause (iii);
                            (ii) by redesignating subparagraph (E) as 
                        subparagraph (G);
                            (iii) by striking ``and'' at the end of 
                        subparagraph (D); and
                            (iv) by inserting after subparagraph (D) 
                        the following new subparagraphs:
                    ``(E) the name and taxpayer identifying number of 
                each participant or former participant in the plan--
                            ``(i) who, during any previous plan year, 
                        was reported under subparagraph (C), and with 
                        respect to whom the benefits described in 
                        subparagraph (C)(ii) were fully paid during the 
                        plan year,
                            ``(ii) with respect to whom any amount was 
                        distributed under section 401(a)(31)(B) during 
                        the plan year, or
                            ``(iii) with respect to whom a deferred 
                        annuity contract was distributed during the 
                        plan year,
                    ``(F) in the case of a participant or former 
                participant to whom subparagraph (E) applies--
                            ``(i) in the case of a participant 
                        described in clause (ii) thereof, the name and 
                        address of the designated trustee or issuer 
                        described in section 401(a)(31)(B)(i) and the 
                        account number of the individual retirement 
                        plan to which the amount was distributed, and
                            ``(ii) in the case of a participant 
                        described in clause (iii) thereof, the name and 
                        address of the issuer of such annuity contract 
                        and the contract or certificate number, and''.
                    (B) Rules relating to direct trustee-to-trustee 
                transfers.--
                            (i) In general.--Paragraph (6) of section 
                        402(e) of such Code is amended--
                                    (I) by striking ``transfers.--Any'' 
                                and inserting ``transfers.--
                    ``(A) In general.--Any''; and
                                    (II) by adding at the end the 
                                following new subparagraph:
                    ``(B) Notification of trustee.--In the case of a 
                distribution under section 401(a)(31)(B), the plan 
                administrator shall notify the designated trustee or 
                issuer described in clause (i) thereof that the 
                transfer is a mandatory distribution required by such 
                section.''.
                            (ii) Penalty.--Subsection (i) of section 
                        6652 of such Code is amended--
                                    (I) by striking ``to Recipients'' 
                                in the heading and inserting ``or 
                                Notification'';
                                    (II) by striking ``402(f),'' and 
                                inserting ``402(f) or a notification as 
                                required by section 402(e)(6)(B),''; 
                                and
                                    (III) by striking ``such written 
                                explanation'' and inserting ``such 
                                written explanation or notification''.
                            (iii) Reports.--Subsection (i) of section 
                        408 of such Code is amended--
                                    (I) by redesignating subparagraphs 
                                (A) and (B) of paragraph (2) as clauses 
                                (i) and (ii), respectively, and by 
                                moving such clauses 2 ems to the right;
                                    (II) by redesignating paragraphs 
                                (1) and (2) as subparagraphs (A) and 
                                (B), respectively, and by moving such 
                                subparagraphs 2 ems to the right; and
                                    (III) by striking ``as the 
                                Secretary prescribes'' in subparagraph 
                                (B)(ii), as so redesignated, and all 
                                that follows through ``a simple 
                                retirement account'' and inserting ``as 
                                the Secretary prescribes.
            ``(3) Simple retirement accounts.--In the case of a simple 
        retirement account'';
                                    (IV) by striking ``Reports.--The 
                                trustee of'' and inserting ``Reports.--
            ``(1) In general.--The trustee of'';
                                    (V) by striking ``under paragraph 
                                (2)'' in paragraph (3), as redesignated 
                                by clause (iii), and inserting ``under 
                                paragraph (1)(B)''; and
                                    (VI) by inserting after paragraph 
                                (1)(B)(ii), as redesignated by the 
                                preceding clauses, the following new 
                                paragraph:
            ``(2) Mandatory distributions.--In the case of an account, 
        contract, or annuity to which a transfer under section 
        401(a)(31)(B) is made (including a transfer from the individual 
        retirement plan to which the original transfer under such 
        section was made to another individual retirement plan), the 
        report required by this subsection for the year of the transfer 
        shall--
                    ``(A) identify such transfer as a mandatory 
                distribution required by such section,
                    ``(B) include the name, address, and taxpayer 
                identifying number of the trustee or issuer of the 
                individual retirement plan to which the amount is 
                transferred, and
                    ``(C) be filed with the Pension Benefit Guaranty 
                Corporation as well as with the Secretary.''.
                    (C) Notification of participants upon separation.--
                Subsection (e) of section 6057 of such Code is amended 
                by inserting ``, and a notice of the availability of, 
                and the contact information for, the Retirement Savings 
                Lost and Found established under section 306(a)(1) of 
                the Securing a Strong Retirement Act of 2020'' before 
                the period at the end of the second sentence.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to distributions made in, and 
                returns and reports relating to, years beginning after 
                the second December 31 occurring after the date of the 
                enactment of this Act.
            (4) Coordination with distribution requirements, fiduciary 
        duties, etc.--
                    (A) Amendment of internal revenue code of 1986.--
                Paragraph (9) of section 401(a) of the Internal Revenue 
                Code of 1986, as amended by the preceding provisions of 
                this Act, is further amended by adding at the end the 
                following new subparagraph:
                    ``(K) Coordination with retirement savings lost and 
                found.--
                            ``(i) In general.--With respect to any lost 
                        or missing participant of a plan, the plan 
                        shall not be treated as failing to satisfy the 
                        requirements of this paragraph or any other 
                        requirement of this title which cannot be 
                        satisfied due to the plan's inability to locate 
                        the participant.
                            ``(ii) Lost or missing participant.--For 
                        purposes of subclause (i), the term `lost or 
                        missing participant' shall be defined in 
                        guidance to be issued jointly by the Internal 
                        Revenue Service, Department of the Treasury, 
                        the Employee Benefits Security Administration, 
                        Department of Labor, and the Pension Benefit 
                        Guaranty Corporation. Such guidance shall be so 
                        issued not later than 1 year after the date of 
                        the enactment of this subparagraph.''.
                    (B) Amendment of employee retirement income 
                security act of 1974.--
                            (i) In general.--Section 404 of the 
                        Employee Retirement Income Security Act of 1974 
                        (29 U.S.C. 1104) is amended by adding at the 
                        end the following new subsection:
    ``(e) Coordination With Retirement Savings Lost and Found.--
            ``(1) In general.--With respect to any lost or missing 
        participant of a plan, a fiduciary of the plan shall not be 
        treated as failing to satisfy any requirement to search for or 
        attempt to locate, or to provide any document or information 
        to, such individual, or any other requirement of this title 
        which cannot be satisfied due to the plan's inability to locate 
        the participant.
            ``(2) Lost or missing participant.--For purposes of 
        paragraph (1), the term `lost or missing participant' shall be 
        defined in guidance to be issued jointly by the Internal 
        Revenue Service, Department of the Treasury, the Employee 
        Benefits Security Administration, Department of Labor, and the 
        Pension Benefit Guaranty Corporation.''.
                            (ii) Conforming amendments.--Section 
                        4050(a)(1) of the Employee Retirement Income 
                        Security Act of 1974 (29 U.S.C. 1350(a)(1)) is 
                        amended in subparagraph (B)--
                                    (I) by striking ``provides'' and 
                                inserting ``either--
                            ``(i) provides'';
                                    (II) by striking the period at the 
                                end and inserting ``; or''; and
                                    (III) by adding at the end the 
                                following new clause:
                            ``(ii) satisfies the requirements of 
                        section 6057(a) of the Internal Revenue Code of 
                        1986.''.
            (5) Requirement of electronic filing.--
                    (A) In general.--Paragraph (2) of section 6011(e) 
                of the Internal Revenue Code of 1986 is amended--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii), respectively, and 
                        by moving such clauses 2 ems to the right;
                            (ii) by striking ``the requirements of such 
                        regulations'' and all that follows through 
                        ``the Secretary shall require'' and inserting 
                        ``the requirements of such regulations.
                    ``(B) Certain partnerships.--Notwithstanding 
                subparagraph (A), the Secretary shall require'';
                            (iii) by striking ``regulations.--In 
                        prescribing'' and inserting ``regulations.--
                    ``(A) In general.--In prescribing''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
                    ``(C) Exceptions.--Notwithstanding subparagraph 
                (A), the Secretary shall require returns or reports 
                required under--
                            ``(i) sections 6057, 6058, and 6059, and
                            ``(ii) sections 408(i), 6041, and 6047 to 
                        the extent such return or report relates to the 
                        tax treatment of a distribution from a plan, 
                        account, contract, or annuity,
                to be filed on magnetic media, but only with respect to 
                persons who are required to file at least 50 returns 
                during the calendar year which includes the first day 
                of the plan year to which such returns or reports 
                relate.''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to returns and reports relating 
                to years beginning after the second December 31 
                occurring after the date of the enactment of this Act.
            (6) Safeguarding participant privacy and security.--In 
        establishing the Retirement Savings Lost and Found under 
        paragraph (1), the Secretary of Labor, the Secretary of 
        Treasury, and the Secretary of Commerce shall take all 
        necessary and proper precautions to ensure that individuals' 
        plan information maintained by the Retirement Savings Lost and 
        Found is protected and that persons other than the individual 
        cannot fraudulently claim the benefits to which any individual 
        is entitled, and to allow any individual to opt out of 
        inclusion in the Retirement Savings Lost and Found at the 
        election of the individual.
            (7) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        the purposes of this subsection.
    (b) Mandatory Transfers of Rollover Distributions.--
            (1) Investment options.--
                    (A) In general.--Subparagraph (B) of section 
                404(c)(3) of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1104(c)(3)) is amended by 
                striking the period at the end and inserting ``, and, 
                to the extent the Secretary provides in guidance or 
                regulations issued after the enactment of the Securing 
                a Strong Retirement Act of 2020, is made to--
                            ``(i) a target date or life cycle fund held 
                        under such account;
                            ``(ii) as described in section 2550.404a-2 
                        of title 29, Code of Federal Regulations, an 
                        investment product held under such account 
                        designed to preserve principal and provide a 
                        reasonable rate of return;
                            ``(iii) the Pension Benefit Guaranty 
                        Corporation in accordance with section 
                        401(a)(31)(B)(iv) of the Internal Revenue Code 
                        of 1986 and section 306(c)(2)(A)(ii) of the 
                        Securing a Strong Retirement Act of 2020; or
                            ``(iv) such other option as the Secretary 
                        may so provide.''.
                    (B) Regulations.--Not later than 270 days after the 
                date of the enactment of this Act, the Secretary of 
                Labor shall promulgate regulations identifying the 
                target date or life cycle funds, or specifying the 
                characteristics of such a fund, that will be deemed to 
                meet the requirements of section 404(c)(3)(B)(i) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1104(c)(3)(B)), as amended by subparagraph (A).
            (2) Expansion of cap; authority to transfer lesser 
        amounts.--
                    (A) Cap.--Sections 401(a)(31)(B)(ii) and 
                411(a)(11)(A) of the Internal Revenue Code of 1986 and 
                section 203(e)(1) of the Employee Retirement Income 
                Security Act of 1974 are each amended by striking 
                ``$5,000'' and inserting ``$6,000''.
                    (B) Distribution of larger amounts to individual 
                retirement plans only.--Section 401(a)(31)(B)(i) of 
                such Code is amended by adding at the end the 
                following: ``The Office of the Retirement Savings Lost 
                and Found established by Section 306 of the Securing a 
                Strong Retirement Act shall not be treated as a trustee 
                or issuer that is eligible to receive such 
                distributions.''.
                    (C) Lesser amounts.--Section 401(a)(31)(B) of such 
                Code is amended by adding at the end the following new 
                clauses:
                            ``(iii) Treatment of lesser amounts.--In 
                        the case of a trust which is part of an 
                        eligible plan, such trust shall not be a 
                        qualified trust under this section unless such 
                        plan provides that, if a participant in the 
                        plan separates from the service covered by the 
                        plan and the nonforfeitable accrued benefit 
                        described in clause (ii) is not in excess of 
                        $1,000, the plan administrator shall (either 
                        separately or as part of the notice under 
                        section 402(f)) notify the participant that the 
                        participant is entitled to such benefit or 
                        attempt to pay the benefit directly to the 
                        participant.
                            ``(iv) Transfers to retirement savings lost 
                        and found.--If, after a plan administrator 
                        takes the action required under clause (iii), 
                        the participant does not--
                                    ``(I) within 6 months of the 
                                notification under such clause, make an 
                                election under subparagraph (A) or 
                                elect to receive a distribution of the 
                                benefit directly, or
                                    ``(II) accept any direct payment 
                                made under such clause within 6 months 
                                of the attempted payment,
                        the plan administrator shall transfer the 
                        amount of such benefit to the Office of the 
                        Retirement Savings Lost and Found in accordance 
                        with section 306(c)(2)(a)(ii) of the Securing a 
                        Strong Retirement Act of 2020.
                            ``(v) Income tax treatment of transfers to 
                        retirement savings lost and found.--For 
                        purposes of determining the income tax 
                        treatment of transfers to the Office of the 
                        Retirement Savings Lost and Found under clause 
                        (iv)--
                                    ``(I) such a transfer shall be 
                                treated as a transfer to an individual 
                                retirement plan under clause (i), and
                                    ``(II) the distribution of such 
                                amounts by the Office of the Retirement 
                                Savings Lost and Found shall be treated 
                                as a distribution from an individual 
                                retirement plan.''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to vested benefits with respect 
                to participants who separate from service connected to 
                the plan in plan years beginning after the second 
                December 31 occurring after the date of the enactment 
                of this Act.
    (c) Office of the Retirement Savings Lost and Found.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary of Labor, the 
        Secretary of Treasury, and the Secretary of Commerce shall 
        establish within the Pension Benefit Guaranty Corporation an 
        Office of the Retirement Savings Lost and Found to operate in 
        conjunction with section 4050 of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1350).
            (2) Responsibilities of office.--
                    (A) In general.--In addition to administering the 
                Retirement Savings Lost and Found under subsection (a) 
                and carrying out the duties described in clauses (ii) 
                and (iii) of subsection (a)(1)(A), the Office of the 
                Retirement Savings Lost and Found established under 
                this section shall--
                            (i) perform an annual audit of plan 
                        information contained in the Retirement Savings 
                        Lost and Found and ensure that such information 
                        is current and accurate;
                            (ii) invest any amount transferred under 
                        section 401(a)(31)(B)(iv) of the Internal 
                        Revenue Code of 1986 in United States Treasury 
                        securities;
                            (iii) upon application filed by the 
                        participant or beneficiary in such form and 
                        manner as may be prescribed in regulations, pay 
                        to the participant or beneficiary the amount 
                        transferred (or the appropriate survivor 
                        benefit) either--
                                    (I) in a single sum (plus 
                                interest); or
                                    (II) in such other form as is 
                                specified in regulations; and
                            (iv) identify such amount as eligible to be 
                        paid into an eligible retirement plan described 
                        in section 402(c)(8)(B) of the Internal Revenue 
                        Code of 1986.
                    (B) Option to contract.--The Office of the 
                Retirement Savings Lost and Found shall conduct an 
                analysis of the cost effectiveness of contracting with 
                a third party to carry out the responsibilities under 
                subparagraph (A) and, if the Pension Benefit Guaranty 
                Corporation determines that it would be more cost 
                effective to do so than to carry out such 
                responsibilities within the Office of the Retirement 
                Savings Lost and Found, the Director shall report to 
                the Committees on Finance and Health, Education, Labor, 
                and Pensions of the Senate and the Committees on Ways 
                and Means and Education and Labor of the House of 
                Representatives the intention to so contract.
                    (C) Option to prescribe protocols.--The Pension 
                Benefit Guaranty Corporation may establish protocols to 
                assist participants originally treated as lost or 
                missing in claiming their benefits under a plan.
                    (D) Coordination.--The Office of the Retirement 
                Savings Lost and Found shall coordinate with the Social 
                Security Administration, the Employee Benefits Security 
                Administration, and other applicable agencies to 
                integrate information and databases on lost, missing, 
                and inactive participants.
    (d) Transmission of Information to Pension Benefit Guaranty 
Corporation.--Section 6057 of the Internal Revenue Code of 1986, as 
amended by the preceding provisions of this Act, is amended by 
redesignating subsection (h) as subsection (i) and by inserting after 
subsection (g) the following new subsection:
    ``(h) Transmission of Information to Director of Pension Benefit 
Guaranty Corporation.--The Secretary shall transmit copies of any 
statements, notifications, reports, or other information obtained by 
him under this section to the Director of the Pension Benefit Guaranty 
Corporation.''.

SEC. 307. EXEMPTION FROM REQUIRED MINIMUM DISTRIBUTION RULES FOR 
              INDIVIDUALS WITH CERTAIN ACCOUNT BALANCES.

    (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
1986, as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subparagraph:
                    ``(L) Exception from required minimum distributions 
                during life of employee where assets do not exceed 
                $100,000.--
                            ``(i) In general.--If, as of a measurement 
                        date, the aggregate value of an employee's 
                        entire interest under all defined contribution 
                        plans does not exceed $100,000, then, during 
                        any succeeding calendar year beginning before 
                        the next measurement date, the requirements of 
                        subparagraph (A) shall not apply with respect 
                        to such employee.
                            ``(ii) Defined contribution plan.--For 
                        purposes of this subparagraph, the term 
                        `defined contribution plan' has the same 
                        meaning as when used in subparagraph (H).
                            ``(iii) Limit on required minimum 
                        distribution.--The required minimum 
                        distribution determined under subparagraph (A) 
                        for an employee under all defined contribution 
                        plans shall not exceed an amount equal to the 
                        excess of--
                                    ``(I) the aggregate value of an 
                                employee's entire interest under such 
                                plans on the last day of the calendar 
                                year to which such distribution 
                                relates, over
                                    ``(II) the dollar amount in effect 
                                under clause (i) for such calendar 
                                year.
                        The Secretary in regulations or other guidance 
                        may provide how such amount shall be 
                        distributed in the case of an individual with 
                        more than one defined contribution plan.
                            ``(iv) Measurement date.--For purposes of 
                        this subparagraph, the term `measurement date' 
                        means, with respect to any employee--
                                    ``(I) the last day of the calendar 
                                year preceding the calendar year in 
                                which the employee attains age 75, and
                                    ``(II) in the case of any employee 
                                who (after a measurement date 
                                determined under subclause (I) with 
                                respect to such employee) receives 
                                contributions, rollovers, or transfers 
                                of amounts that were not previously 
                                taken into account in applying this 
                                subparagraph, the last day of the 
                                calendar year in which such 
                                contribution, rollover, or transfer was 
                                so received.
                            ``(v) Inflation adjustment.--In the case of 
                        any calendar year beginning after 2020, the 
                        $100,000 amount in clause (i) shall be 
                        increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost of living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year, 
                                determined by substituting `calendar 
                                year 2019' for `calendar year 2016' in 
                                subparagraph (A)(ii) thereof.
                        Any increase determined under this clause shall 
                        be rounded to the next lowest multiple of 
                        $5,000.
                            ``(vi) Plan administrator reliance on 
                        employee certification.--A defined contribution 
                        plan described in clause (iii), (iv), (v), or 
                        (vi) of section 402(c)(8)(B) shall not be 
                        treated as failing to meet the requirements of 
                        this paragraph in the case of any failure to 
                        make a required minimum distribution for a 
                        calendar year if--
                                    ``(I) the aggregate value of an 
                                employee's entire interest under all 
                                defined contribution plans of the 
                                employer on the last day of the 
                                calendar year to which such 
                                distribution relates does not exceed 
                                the dollar amount in effect for such 
                                year under clause (i), and
                                    ``(II) the employee certifies that 
                                the aggregate value of the employee's 
                                entire interest under all defined 
                                contribution plans on the most recent 
                                measurement date with respect to the 
                                employee (as determined by the employee 
                                based on guidance provided by the 
                                Secretary) did not exceed the dollar 
                                amount in effect for such year under 
                                clause (i).
                            ``(vii) Aggregation rule.--All employers 
                        treated as a single employer under subsection 
                        (b), (c), (m), or (o) of section 414 shall be 
                        treated as a single employer for purposes of 
                        clause (v).''.
    (b) Plan Administrator Reporting.--Section 6047 of such Code is 
amended by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (g) the following new subsection:
    ``(h) Account Balance for Participants Who Have Attained Age 74.--
            ``(1) In general.--Not later than January 31 of each year, 
        the plan administrator (as defined in section 414(g)) of each 
        defined contribution plan (as defined in section 401(a)(9)(L)) 
        shall make a return to the Secretary with respect to each 
        participant of such plan who has attained age 74 as of the end 
        of the preceding calendar year which states--
                    ``(A) the name and plan number of the plan,
                    ``(B) the name and address of the plan 
                administrator,
                    ``(C) the name, address, and taxpayer 
                identification number of the participant, and
                    ``(D) the account balance of such participant as of 
                the end of the preceding calendar year.
            ``(2) Statement furnished to participant.--Every person 
        required to make a return under paragraph (1) with respect to a 
        participant shall furnish a copy of such return to such 
        participant.
            ``(3) Application to individual retirement plans and 
        annuities.--In the case of an defined contribution plan 
        described in clause (i) or (ii) of section 402(c)(8)(B)--
                    ``(A) any reference in this subsection to the plan 
                administrator shall be treated as a reference to the 
                trustee or issuer, as the case may be, and
                    ``(B) any reference in this subsection to the 
                participant shall be treated as a reference to the 
                individual for whom such account or annuity is 
                maintained.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions required to be made in calendar years beginning 
more than 120 days after the date of the enactment of this Act.

SEC. 308. EXPANSION OF EMPLOYEE PLANS COMPLIANCE RESOLUTION SYSTEM.

    (a) In General.--Except as otherwise provided in the Internal 
Revenue Code of 1986 or regulations prescribed by the Secretary of the 
Treasury or the Secretary's delegate (referred to in this section as 
the ``Secretary''), any eligible inadvertent failure to comply with the 
rules applicable under section 401(a), 403(a), 403(b), 408(p), or 
408(k) of such Code may be self-corrected under the Employee Plans 
Compliance Resolution System (as described in Revenue Procedure 2019-19 
or any successor guidance and hereafter in this section referred to as 
the ``EPCRS''), except to the extent that such failure was identified 
by the Secretary prior to any actions which demonstrate a commitment to 
implement a self-correction. Revenue Procedure 2019-19 is deemed 
amended as of the date of the enactment of this Act to provide that the 
correction period under section 9.02 of such Revenue Procedure (or any 
successor guidance) for an eligible inadvertent failure, except as 
otherwise provided under such Code or in regulations prescribed by the 
Secretary, is indefinite and has no last day, other than with respect 
to failures identified by the Secretary prior to any self-correction as 
described in the preceding sentence.
    (b) Loan Errors.--In the case of an eligible inadvertent failure 
relating to a loan from a plan to a participant--
            (1) such failure may be self-corrected under subsection (a) 
        according to the rules of section 6.07 of Revenue Procedure 
        2019-19 (or any successor guidance), including the provisions 
        related to whether a deemed distribution must be reported on 
        Form 1099-R, and
            (2) the Secretary of Labor shall treat any such failure 
        which is so self-corrected under subsection (a) as meeting the 
        requirements of the Voluntary Fiduciary Correction Program of 
        the Department of Labor if, with respect to the violation of 
        the fiduciary standards of the Employee Retirement Income 
        Security Act of 1974, there is a similar loan error eligible 
        for correction under EPCRS and the loan error is corrected in 
        such manner.
    (c) EPCRS for IRAs.--The Secretary shall expand the EPCRS to allow 
custodians of individual retirement plans (as defined in section 
7701(a)(37) of the Internal Revenue Code of 1986) to address eligible 
inadvertent failures for which the owner of an individual retirement 
plan (as so defined) was not at fault, including (but not limited to)--
            (1) waivers of the excise tax which would otherwise apply 
        under section 4974 of the Internal Revenue Code of 1986,
            (2) under the self-correction component of the EPCRS, 
        waivers of the 60-day deadline for a rollover where the 
        deadline is missed for reasons beyond the reasonable control of 
        the account owner, and
            (3) rules permitting a nonspouse beneficiary to return 
        distributions to an inherited individual retirement plan 
        described in section 408(d)(3)(C) of the Internal Revenue Code 
        of 1986 in a case where, due to an inadvertent error by a 
        service provider, the beneficiary had reason to believe that 
        the distribution could be rolled over without inclusion in 
        income of any part of the distributed amount.
    (d) Required Minimum Distribution Corrections.--The Secretary shall 
expand the EPCRS to allow plans to which such system applies and 
custodians and owners of individual retirement plans to self-correct, 
without an excise tax, any eligible inadvertent failures pursuant to 
which a distribution is made no more than 180 days after it was 
required to be made.
    (e) Additional Safe Harbors.--The Secretary shall expand the EPCRS 
to provide additional safe harbor means of correcting eligible 
inadvertent failures described in subsection (a), including safe harbor 
means of calculating the earnings which must be restored to a plan in 
cases where plan assets have been depleted by reason of an eligible 
inadvertent failure.
    (f) Eligible Inadvertent Failure.--For purposes of this section--
            (1) In general.--Except as provided in paragraph (2), the 
        term ``eligible inadvertent failure'' means a failure that 
        occurs despite the existence of practices and procedures 
        which--
                    (A) satisfy the standards set forth in section 4.04 
                of Revenue Procedure 2019-19 (or any successor 
                guidance), or
                    (B) satisfy similar standards in the case of an 
                individual retirement plan.
            (2) Exception.--The term ``eligible inadvertent failure'' 
        shall not include any failure which is egregious, relates to 
        the diversion or misuse of plan assets, or is directly or 
        indirectly related to an abusive tax avoidance transaction.
    (g) Application of Certain Requirements for Correcting Errors.--
This section shall not apply to any failure unless the correction of 
such failure under this section is made in conformity with the general 
principles that apply to corrections of such failures under the 
Internal Revenue Code of 1986, including regulations or other guidance 
issued thereunder and including those principles and corrections set 
forth in Revenue Procedure 2019-19 (or any successor guidance).''

SEC. 309. ELIMINATE THE ``FIRST DAY OF THE MONTH'' REQUIREMENT FOR 
              GOVERNMENTAL SECTION 457(B) PLANS.

    (a) In General.--Paragraph (4) of section 457(b) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(4) which provides that compensation--
                    ``(A) in the case of an eligible employer described 
                in subsection (e)(1)(A), will be deferred only if an 
                agreement providing for such deferral has been entered 
                into before the compensation is currently available to 
                the individual, and
                    ``(B) in any other case, will be deferred for any 
                calendar month only if an agreement providing for such 
                deferral has been entered into before the beginning of 
                such month,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 310. ONE-TIME ELECTION FOR QUALIFIED CHARITABLE DISTRIBUTION TO 
              SPLIT-INTEREST ENTITY; INCREASE IN QUALIFIED CHARITABLE 
              DISTRIBUTION LIMITATION.

    (a) Increase in Limitation.--Section 408(d)(8)(A) of the Internal 
Revenue Code of 1986 is amended by striking ``$100,000'' and inserting 
``$130,000''.
    (b) One-Time Election for Qualified Charitable Distribution to 
Split-Interest Entity.--Section 408(d)(8) of such Code is amended by 
adding at the end the following new subparagraph:
                    ``(F) One-time election for qualified charitable 
                distribution to split-interest entity.--
                            ``(i) In general.--A taxpayer may for a 
                        taxable year elect under this subparagraph to 
                        treat as meeting the requirement of 
                        subparagraph (B)(i) any distribution from an 
                        individual retirement account which is made 
                        directly by the trustee to a split-interest 
                        entity, but only if--
                                    ``(I) an election is not in effect 
                                under this subparagraph for a preceding 
                                taxable year, and
                                    ``(II) such distribution meets the 
                                requirements of clauses (iii) and (iv).
                            ``(ii) Split-interest entity.--For purposes 
                        of this subparagraph, the term `split-interest 
                        entity' means--
                                    ``(I) a charitable remainder 
                                annuity trust (as defined in section 
                                664(d)(1)), but only if such trust is 
                                funded exclusively by qualified 
                                charitable distributions,
                                    ``(II) a charitable remainder 
                                unitrust (as defined in section 
                                664(d)(2)), but only if such unitrust 
                                is funded exclusively by qualified 
                                charitable distributions, or
                                    ``(III) a charitable gift annuity 
                                (as defined in section 501(m)(5)), but 
                                only if such annuity is funded 
                                exclusively by qualified charitable 
                                distributions and commences fixed 
                                payments of 5 percent or greater not 
                                later than 1 year from the date of 
                                funding.
                            ``(iii) Contributions must be otherwise 
                        deductible.--A distribution meets the 
                        requirement of this clause only if--
                                    ``(I) in the case of a distribution 
                                to a charitable remainder annuity trust 
                                or a charitable remainder unitrust, a 
                                deduction for the entire value of the 
                                remainder interest in the distribution 
                                for the benefit of a specified 
                                charitable organization would be 
                                allowable under section 170 (determined 
                                without regard to subsection (b) 
                                thereof and this paragraph), and
                                    ``(II) in the case of a charitable 
                                gift annuity, a deduction in an amount 
                                equal to the amount of the distribution 
                                reduced by the value of the annuity 
                                described in section 501(m)(5)(B) would 
                                be allowable under section 170 
                                (determined without regard to 
                                subsection (b) thereof and this 
                                paragraph).
                            ``(iv) Limitation on income interests.--A 
                        distribution meets the requirements of this 
                        clause only if--
                                    ``(I) no person holds an income 
                                interest in the split-interest entity 
                                other than the individual for whose 
                                benefit such account is maintained, the 
                                spouse of such individual, or both, and
                                    ``(II) the income interest in the 
                                split-interest entity is nonassignable.
                            ``(v) Special rules.--
                                    ``(I) Charitable remainder 
                                trusts.--Notwithstanding section 
                                664(b), distributions made from a trust 
                                described in subclause (I) or (II) of 
                                clause (ii) shall be treated as 
                                ordinary income in the hands of the 
                                beneficiary to whom the annuity 
                                described in section 664(d)(1)(A) or 
                                the payment described in section 
                                664(d)(2)(A) is paid.
                                    ``(II) Charitable gift annuities.--
                                Qualified charitable distributions made 
                                to fund a charitable gift annuity shall 
                                not be treated as an investment in the 
                                contract for purposes of section 
                                72(c).''.
    (c) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years ending after the date of the 
enactment of this Act.

SEC. 311. RETIREMENT PLAN DISTRIBUTIONS FOR CHARITABLE PURPOSE.

    (a) In General.--Section 402 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(m) Distributions for Charitable Purposes.--
            ``(1) In general.--Gross income for any taxable year shall 
        not include so much of the aggregate amount of qualified 
        charitable distributions made with respect to a taxpayer during 
        such taxable year which does not exceed the applicable amount.
            ``(2) Qualified charitable distribution.--For purposes of 
        this subsection, the term `qualified charitable distribution' 
        means any distribution from a trust as defined in section 
        401(a) that is exempt from tax under 501(a)--
                    ``(A) which is made directly by the plan to an 
                organization described in section 170(b)(1)(A) (other 
                than any organization described in section 509(a)(3) or 
                any fund or account described in section 4966(d)(2)), 
                and
                    ``(B) which is made on or after the date that the 
                individual on whose behalf the distribution is made has 
                attained age 70\1/2\.
        A distribution shall be treated as a qualified charitable 
        distribution only to the extent that the distribution would be 
        includible in gross income without regard to paragraph (1).
            ``(3) Special rules.--
                    ``(A) In general.--Rules similar to the rules of 
                subparagraphs (C), (E), and (F) of section 408(d)(8) 
                shall apply for purposes of this subsection.
                    ``(B) Application of section 72.--Rules similar to 
                the rules of section 408(d)(8)(D) shall apply for 
                purposes of this subsection, by taking into account all 
                amounts in the eligible retirement plan to which the 
                taxpayer has a nonforfeitable right in lieu of all 
                amounts in all individual retirement plans of the 
                individual.
            ``(4) Applicable amount.--For purposes of this subsection, 
        the term `applicable amount' means the excess of--
                    ``(A) $130,000, over
                    ``(B) the total amount of any distributions not 
                includible in gross income of the taxpayer for the 
                taxable year by reason of sections 403(d), 408(d)(8), 
                and 457(e)(19).''.
    (b) SEPs and SIMPLEs.--Section 408(d)(8)(B) of such Code is amended 
by striking ``(other than a plan described in subsection (k) or (p))''.
    (c) Certain Annuity Plans.--Section 403 of such Code is amended by 
adding at the end the following new subsection:
    ``(d) Distributions for Charitable Purposes.--The rules of section 
402(m) shall apply to distributions under an annuity plan described in 
subsection (a) or an annuity contract described in subsection (b).''.
    (d) 457(b) Plans.--Subsection (e) of section 457 of such Code is 
amended by adding at the end the following new paragraph:
            ``(19) Distributions for charitable purposes.--The rules of 
        section 402(m) shall apply to distributions under an eligible 
        deferred compensation plan established and maintained by an 
        employer described in subsection (e)(1)(A).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to distributions made in taxable years ending after the date of 
the enactment of this Act.

SEC. 312. DISTRIBUTIONS TO FIREFIGHTERS.

    (a) In General.--Subparagraph (A) of section 72(t)(10) of the 
Internal Revenue Code of 1986 is amended by striking ``414(d))'' and 
inserting ``414(d)) or a distribution from a plan described in clause 
(iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who 
provides firefighting services''.
    (b) Conforming Amendment.--The heading of paragraph (10) of section 
72(t) of such Code is amended--
            (1) by striking ``qualified'', and
            (2) by striking ``in governmental plans''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2020.

SEC. 313. EXCLUSION OF CERTAIN DISABILITY-RELATED FIRST RESPONDER 
              RETIREMENT PAYMENTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139B the following new section:

``SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RESPONDER RETIREMENT 
              PAYMENTS.

    ``(a) In General.--In the case of an individual who receives 
qualified first responder retirement payments for any taxable year, 
gross income shall not include so much of such payments as do not 
exceed the annualized excludable disability amount with respect to such 
individual.
    ``(b) Qualified First Responder Retirement Payments.--For purposes 
of this section, the term `qualified first responder retirement 
payments' means, with respect to any taxable year, any pension or 
annuity which but for this section would be includible in gross income 
for such taxable year and which is received--
            ``(1) from a plan described in clause (iii), (iv), (v), or 
        (vi) of section 402(c)(8)(B), and
            ``(2) in connection with such individual's qualified first 
        responder service.
    ``(c) Annualized Excludable Disability Amount.--For purposes of 
this section--
            ``(1) In general.--The term `annualized excludable 
        disability amount' means, with respect to any individual, the 
        service-connected excludable disability amounts which are 
        properly attributable to the 12-month period immediately 
        preceding the date on which such individual attains retirement 
        age.
            ``(2) Service-connected excludable disability amount.--The 
        term `service-connected excludable disability amount' means 
        periodic payments received by an individual which--
                    ``(A) are not includible in such individual's gross 
                income under section 104(a)(1),
                    ``(B) are received in connection with such 
                individual's qualified first responder service, and
                    ``(C) terminate when such individual attains 
                retirement age.
            ``(3) Special rule for partial-year payments.--In the case 
        of an individual who only receives service-connected excludable 
        disability amounts properly attributable to a portion of the 
        12-month period described in paragraph (1), such paragraph 
        shall be applied by multiplying such amounts by the ratio of 
        365 to the number of days in such period to which such amounts 
        were properly attributable.
    ``(d) Qualified First Responder Service.--For purposes of this 
section, the term `qualified first responder service' means service as 
a law enforcement officer, firefighter, paramedic, or emergency medical 
technician.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139B the following new item:

``Sec. 139C. Certain disability-related first responder retirement 
                            payments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received with respect to taxable years beginning after 
the date of the enactment of this Act.

SEC. 314. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIMITATIONS FOR EXCISE 
              TAX ON EXCESS CONTRIBUTIONS, CERTAIN ACCUMULATIONS, AND 
              PROHIBITED TRANSACTIONS.

    Section 6501(l) of the Internal Revenue Code of 1986 is amended--
            (1) in paragraph (1), by inserting ``(other than with 
        respect to an individual retirement plan)'' after ``section 
        4975'', and
            (2) by adding at the end the following new paragraph:
            ``(4) Individual retirement plans.--
                    ``(A) In general.--For purposes of any tax imposed 
                by section 4973, 4974, or 4975 in connection with an 
                individual retirement plan, the return referred to in 
                this section shall be the income tax return filed by 
                the person on whom the tax under such section is 
                imposed for the year in which the act (or failure to 
                act) giving rise to the liability for such tax 
                occurred.
                    ``(B) Rule in case of individuals not required to 
                file return.--In the case of a person who is not 
                required to file an income tax return for such year--
                            ``(i) the return referred to in this 
                        section shall be the income tax return that 
                        such person would have been required to file 
                        but for the fact that such person was not 
                        required to file such return, and
                            ``(ii) the 3-year period referred to in 
                        subsection (a) with respect to the return shall 
                        be deemed to begin on the date by which the 
                        return would have been required to be filed 
                        (excluding any extension thereof).''.

SEC. 315. REQUIREMENT TO PROVIDE PAPER STATEMENTS IN CERTAIN CASES.

    (a) In General.--Section 105(a)(2) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1025(a)(2)) is amended--
            (1) in subparagraph (A)(iv), by inserting ``subject to 
        subparagraph (E),'' before ``may be delivered''; and
            (2) by adding at the end the following:
                    ``(E) Provision of paper statements.--With respect 
                to at least 1 pension benefit statement furnished for a 
                calendar year with respect to an individual account 
                plan under paragraph (1)(A), and with respect to at 
                least 1 pension benefit statement furnished every 3 
                calendar years with respect to a defined benefit plan 
                under paragraph (1)(B), such statement shall be 
                furnished on paper in written form except--
                            ``(i) in the case of a plan that furnishes 
                        such statement in accordance with section 
                        2520.104b-1(c) of title 29, Code of Federal 
                        Regulations; or
                            ``(ii) in the case of a plan that permits a 
                        participant or beneficiary to request that the 
                        statements referred to in the matter preceding 
                        clause (i) be furnished by electronic delivery, 
                        if the participant or beneficiary requests that 
                        such statements be delivered electronically and 
                        the statements are so delivered.''.
    (b) Implementation.--
            (1) In general.--The Secretary of Labor shall, not later 
        than July 1, 2021, update section 2520.104b-1(c) of title 29, 
        Code of Federal Regulations, to provide that a plan may furnish 
        the statements referred to in subparagraph (E) of section 
        105(a)(2) by electronic delivery only if, in addition to 
        meeting the other requirements under the regulations--
                    (A) such plan furnishes each participant, including 
                participants described in subparagraph (B), a one-time 
                initial notice on paper in written form, prior to the 
                electronic delivery of any pension benefit statement, 
                of their right to request that all documents required 
                to be disclosed under title I of the Employee 
                Retirement Income Security Act of 1974 be furnished on 
                paper in written form; and
                    (B) such plan furnishes each participant who is 
                separated from service with at least 1 pension benefit 
                statement on paper in written form for each calendar 
                year.
            (2) Other guidance.--In implementing the amendment made by 
        subsection (a) with respect to a plan that discloses required 
        documents or statements electronically, in accordance with 
        applicable guidance governing electronic disclosure by the 
        Department of Labor (with the exception of section 2520.104b-
        1(c) of title 29, Code of Federal Regulations), the Secretary 
        of Labor shall, not later than July 1, 2021, update such 
        guidance to the extent necessary to ensure that--
                    (A) a participant or beneficiary under such a plan 
                is permitted the opportunity to request that any 
                disclosure required to be delivered on paper under 
                applicable guidance by the Department of Labor shall be 
                furnished by electronic delivery;
                    (B) each paper statement furnished under such a 
                plan pursuant to the amendment shall include--
                            (i) an explanation of how to request that 
                        all such statements, and any other document 
                        required to be disclosed under title I of the 
                        Employee Retirement Income Security Act of 
                        1974, be furnished by electronic delivery; and
                            (ii) contact information for the plan 
                        sponsor, including a telephone number;
                    (C) the plan may not charge any fee to a 
                participant or beneficiary for the delivery of paper 
                statements;
                    (D) each paper pension benefit statement shall 
                identify each plan document required to be disclosed 
                and shall include information about how a participant 
                or beneficiary may access each such document;
                    (E) each document required to be disclosed that is 
                furnished by electronic delivery under such a plan 
                shall include an explanation of how to request that all 
                such documents be furnished on paper in written form;
                    (F) a plan is permitted to furnish a duplicate 
                electronic statement in any case in which the plan 
                furnishes a paper statement; and
                    (G) furnishment of such a paper pension benefit 
                statement may be combined, in one document, with a 
                notice explaining electronic delivery of other 
                disclosure documents as a default selection and the 
                right to opt out of such electronic delivery, but only 
                if such paper statement is furnished prior to the 
                electronic delivery of any such statement.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to plan years beginning after December 31, 2021.

                     TITLE IV--TECHNICAL AMENDMENTS

SEC. 401. AMENDMENTS RELATING TO SETTING EVERY COMMUNITY UP FOR 
              RETIREMENT ENHANCEMENT ACT OF 2019.

    (a) Technical Amendments.--
            (1) Amendment relating to section 114.--Section 
        401(a)(9)(C)(iii) of the Internal Revenue Code of 1986 is 
        amended by striking ``employee to whom clause (i)(II) applies'' 
        and inserting ``employee (other than an employee to whom clause 
        (i)(II) does not apply by reason of clause (ii))''.
            (2) Amendment relating to section 116.--Section 4973(b) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end of the flush matter the following: ``Such term shall not 
        include any designated nondeductible contribution (as defined 
        in subparagraph (C) of section 408(o)(2)) which does not exceed 
        the nondeductible limit under subparagraph (B) thereof by 
        reason of an election under section 408(o)(5).''.
            (3) Effective date.--The amendments made by this section 
        shall take effect as if included in section of the Setting 
        Every Community Up for Retirement Enhancement Act of 2019 to 
        which the amendment relates.
    (b) Clerical Amendment.--Section 72(t)(2)(H)(vi)(IV) of the 
Internal Revenue Code of 1986 is amended by striking 
``403(b)(7)(A)(ii)'' and inserting `` 403(b)(7)(A)(i)''.

                   TITLE V--ADMINISTRATIVE PROVISIONS

SEC. 501. PROVISIONS RELATING TO PLAN AMENDMENTS.

    (a) In General.--If this section applies to any retirement plan or 
contract amendment--
            (1) such retirement plan or contract shall be treated as 
        being operated in accordance with the terms of the plan during 
        the period described in subsection (b)(2)(A); and
            (2) except as provided by the Secretary of the Treasury (or 
        the Secretary's delegate), such retirement plan shall not fail 
        to meet the requirements of section 411(d)(6) of the Internal 
        Revenue Code of 1986 and section 204(g) of the Employee 
        Retirement Income Security Act of 1974 by reason of such 
        amendment.
    (b) Amendments to Which Section Applies.--
            (1) In general.--This section shall apply to any amendment 
        to any retirement plan or annuity contract which is made--
                    (A) pursuant to any amendment made by this Act or 
                pursuant to any regulation issued by the Secretary of 
                the Treasury or the Secretary of Labor (or a delegate 
                of either such Secretary) under this Act; and
                    (B) on or before the last day of the first plan 
                year beginning on or after January 1, 2022.
        In the case of a governmental plan (as defined in section 
        414(d) of the Internal Revenue Code of 1986), this paragraph 
        shall be applied by substituting ``2024'' for ``2022''.
            (2) Conditions.--This section shall not apply to any 
        amendment unless--
                    (A) during the period--
                            (i) beginning on the date the legislative 
                        or regulatory amendment described in paragraph 
                        (1)(A) takes effect (or in the case of a plan 
                        or contract amendment not required by such 
                        legislative or regulatory amendment, the 
                        effective date specified by the plan); and
                            (ii) ending on the date described in 
                        paragraph (1)(B) (as modified by the second 
                        sentence of paragraph (1)) (or, if earlier, the 
                        date the plan or contract amendment is 
                        adopted),
                the plan or contract is operated as if such plan or 
                contract amendment were in effect; and
                    (B) such plan or contract amendment applies 
                retroactively for such period.
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