IB 

Union Calendar No. 42 

116TH CONGRESS 

1ST SESSION H. R. 1994 

[Report No. 116–65, Part I] 

To amend the Internal Revenue Code of 1986 to encourage retirement 

savings, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 29, 2019 

Mr. NEAL (for himself, Mr. BRADY, Mr. KIND, and Mr. KELLY of Pennsylvania) introduced the following bill; which was referred to the Committee 

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

MAY 16, 2019 

Additional sponsors: Mr. LUETKEMEYER, Mr. COURTNEY, Mrs. WAGNER, Mr. 

EVANS, Mr. BUDD, Mr. SCHNEIDER, Mr. PASCRELL, Mr. PANETTA, Mr. 

STAUBER, Mrs. AXNE, Mrs. TRAHAN, Mrs. MURPHY, Mr. BEYER, Mr. 

LARSON of Connecticut, Ms. SA ́NCHEZ, Mr. BLUMENAUER, Mr. THOMPSON of California, Mr. FITZPATRICK, Mrs. WALORSKI, Mr. HARDER of 

California, Mr. HORSFORD, Mr. HUDSON, Mr. VELA, Mr. SUOZZI, Mr. 

GROTHMAN, Mrs. FLETCHER, Mr. COLE, Mr. KING of New York, Mr. 

RESCHENTHALER, Mr. KENNEDY, Mr. BISHOP of Georgia, Mr. AMODEI, 

Ms. TORRES SMALL of New Mexico, Mr. KILDEE, Mr. BILIRAKIS, Mr. 

VAN DREW, Mr. GOODEN, Mr. LOEBSACK, Ms. GABBARD, Mr. KILMER, 

Mr. PERLMUTTER, Mr. ESTES, Mr. KIM, Mr. JOHN W. ROSE of Tennessee, Mr. SOTO, Mr. GOTTHEIMER, Ms. KENDRA S. HORN of Oklahoma, Mr. WATKINS, Ms. SPANBERGER, Mr. PERRY, Ms. FINKENAUER, 

Ms. SCHRIER, Mr. CLEAVER, Mr. MCCAUL, and Mr. MARSHALL


kjohnson on DSK79L0C42 with BILLS
2 

•HR 1994 RH

MAY 16, 2019 

Reported from the Committee on Ways and Means with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

MAY 16, 2019 

Committee on Education and Labor discharged; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on March 29, 2019] 

A BILL 

To amend the Internal Revenue Code of 1986 to encourage 

retirement savings, and for other purposes. 


kjohnson on DSK79L0C42 with BILLS
3 

•HR 1994 RH

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

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Set5 ting Every Community Up for Retirement Enhancement 

6 Act of 2019’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of this 

8 Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 

Sec. 101. Multiple employer plans; pooled employer plans. 

Sec. 102. Increase in 10 percent cap for automatic enrollment safe harbor after 

1st plan year. 

Sec. 103. Rules relating to election of safe harbor 401(k) status. 

Sec. 104. Increase in credit limitation for small employer pension plan startup 

costs. 

Sec. 105. Small employer automatic enrollment credit. 

Sec. 106. Certain taxable non-tuition fellowship and stipend payments treated as 

compensation for IRA purposes. 

Sec. 107. Repeal of maximum age for traditional IRA contributions. 

Sec. 108. Qualified employer plans prohibited from making loans through credit 

cards and other similar arrangements. 

Sec. 109. Portability of lifetime income options. 

Sec. 110. Treatment of custodial accounts on termination of section 403(b) plans. 

Sec. 111. Clarification of retirement income account rules relating to church-controlled organizations. 

Sec. 112. Qualified cash or deferred arrangements must allow long-term employees working more than 500 but less than 1,000 hours per year 

to participate. 

Sec. 113. Penalty-free withdrawals from retirement plans for individuals in case 

of birth of child or adoption. 

Sec. 114. Increase in age for required beginning date for mandatory distributions. 

Sec. 115. Special rules for minimum funding standards for community newspaper plans. 

Sec. 116. Treating excluded difficulty of care payments as compensation for determining retirement contribution limitations. 

TITLE II—ADMINISTRATIVE IMPROVEMENTS 

Sec. 201. Plan adopted by filing due date for year may be treated as in effect 

as of close of year. 

Sec. 202. Combined annual report for group of plans. 

Sec. 203. Disclosure regarding lifetime income. 

Sec. 204. Fiduciary safe harbor for selection of lifetime income provider. 


kjohnson on DSK79L0C42 with BILLS
4 

•HR 1994 RH

Sec. 205. Modification of nondiscrimination rules to protect older, longer service 

participants. 

Sec. 206. Modification of PBGC premiums for CSEC plans. 

TITLE III—OTHER BENEFITS 

Sec. 301. Benefits provided to volunteer firefighters and emergency medical responders. 

Sec. 302. Expansion of section 529 plans. 

TITLE IV—REVENUE PROVISIONS 

Sec. 401. Modification of required distribution rules for designated beneficiaries. 

Sec. 402. Increase in penalty for failure to file. 

Sec. 403. Increased penalties for failure to file retirement plan returns. 

Sec. 404. Increase information sharing to administer excise taxes. 

1 TITLE I—EXPANDING AND PRE2 SERVING RETIREMENT SAV3 INGS 

4 SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER 

5 PLANS. 

6 (a) QUALIFICATION REQUIREMENTS.— 

7 (1) IN GENERAL.—Section 413 of the Internal 

8 Revenue Code of 1986 is amended by adding at the 

9 end the following new subsection: 

10 ‘‘(e) APPLICATION OF QUALIFICATION REQUIREMENTS

11 FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH POOLED

12 PLAN PROVIDERS.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), if a defined contribution plan to which 

15 subsection (c) applies— 

16 ‘‘(A) is maintained by employers which 

17 have a common interest other than having adopt18 ed the plan, or 


kjohnson on DSK79L0C42 with BILLS
5 

•HR 1994 RH

1 ‘‘(B) in the case of a plan not described in 

2 subparagraph (A), has a pooled plan provider, 

3 then the plan shall not be treated as failing to meet 

4 the requirements under this title applicable to a plan 

5 described in section 401(a) or to a plan that consists 

6 of individual retirement accounts described in section 

7 408 (including by reason of subsection (c) thereof), 

8 whichever is applicable, merely because one or more 

9 employers of employees covered by the plan fail to 

10 take such actions as are required of such employers 

11 for the plan to meet such requirements. 

12 ‘‘(2) LIMITATIONS.— 

13 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

14 not apply to any plan unless the terms of the 

15 plan provide that in the case of any employer in 

16 the plan failing to take the actions described in 

17 paragraph (1)— 

18 ‘‘(i) the assets of the plan attributable 

19 to employees of such employer (or bene20 ficiaries of such employees) will be trans21 ferred to a plan maintained only by such 

22 employer (or its successor), to an eligible re23 tirement plan as defined in section 

24 402(c)(8)(B) for each individual whose ac25 count is transferred, or to any other arVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
6 

•HR 1994 RH

1 rangement that the Secretary determines is 

2 appropriate, unless the Secretary deter3 mines it is in the best interests of the em4 ployees of such employer (and the bene5 ficiaries of such employees) to retain the as6 sets in the plan, and 

7 ‘‘(ii) such employer (and not the plan 

8 with respect to which the failure occurred or 

9 any other employer in such plan) shall, ex10 cept to the extent provided by the Secretary, 

11 be liable for any liabilities with respect to 

12 such plan attributable to employees of such 

13 employer (or beneficiaries of such employ14 ees). 

15 ‘‘(B) FAILURES BY POOLED PLAN PRO16 VIDERS.—If the pooled plan provider of a plan 

17 described in paragraph (1)(B) does not perform 

18 substantially all of the administrative duties 

19 which are required of the provider under para20 graph (3)(A)(i) for any plan year, the Secretary 

21 may provide that the determination as to wheth22 er the plan meets the requirements under this 

23 title applicable to a plan described in section 

24 401(a) or to a plan that consists of individual 

25 retirement accounts described in section 408 (inVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
7 

•HR 1994 RH

1 cluding by reason of subsection (c) thereof), 

2 whichever is applicable, shall be made in the 

3 same manner as would be made without regard 

4 to paragraph (1). 

5 ‘‘(3) POOLED PLAN PROVIDER.— 

6 ‘‘(A) IN GENERAL.—For purposes of this 

7 subsection, the term ‘pooled plan provider’ 

8 means, with respect to any plan, a person who— 

9 ‘‘(i) is designated by the terms of the 

10 plan as a named fiduciary (within the 

11 meaning of section 402(a)(2) of the Em12 ployee Retirement Income Security Act of 

13 1974), as the plan administrator, and as 

14 the person responsible to perform all admin15 istrative duties (including conducting prop16 er testing with respect to the plan and the 

17 employees of each employer in the plan) 

18 which are reasonably necessary to ensure 

19 that— 

20 ‘‘(I) the plan meets any require21 ment applicable under the Employee 

22 Retirement Income Security Act of 

23 1974 or this title to a plan described in 

24 section 401(a) or to a plan that con25 sists of individual retirement accounts 


kjohnson on DSK79L0C42 with BILLS
8 

•HR 1994 RH

1 described in section 408 (including by 

2 reason of subsection (c) thereof), which3 ever is applicable, and 

4 ‘‘(II) each employer in the plan 

5 takes such actions as the Secretary or 

6 such person determines are necessary 

7 for the plan to meet the requirements 

8 described in subclause (I), including 

9 providing to such person any disclo10 sures or other information which the 

11 Secretary may require or which such 

12 person otherwise determines are nec13 essary to administer the plan or to 

14 allow the plan to meet such require15 ments, 

16 ‘‘(ii) registers as a pooled plan pro17 vider with the Secretary, and provides such 

18 other information to the Secretary as the 

19 Secretary may require, before beginning op20 erations as a pooled plan provider, 

21 ‘‘(iii) acknowledges in writing that 

22 such person is a named fiduciary (within 

23 the meaning of section 402(a)(2) of the Em24 ployee Retirement Income Security Act of 


kjohnson on DSK79L0C42 with BILLS
9 

•HR 1994 RH

1 1974), and the plan administrator, with re2 spect to the plan, and 

3 ‘‘(iv) is responsible for ensuring that 

4 all persons who handle assets of, or who are 

5 fiduciaries of, the plan are bonded in ac6 cordance with section 412 of the Employee 

7 Retirement Income Security Act of 1974. 

8 ‘‘(B) AUDITS, EXAMINATIONS AND INVES9 TIGATIONS.—The Secretary may perform audits, 

10 examinations, and investigations of pooled plan 

11 providers as may be necessary to enforce and 

12 carry out the purposes of this subsection. 

13 ‘‘(C) AGGREGATION RULES.—For purposes 

14 of this paragraph, in determining whether a per15 son meets the requirements of this paragraph to 

16 be a pooled plan provider with respect to any 

17 plan, all persons who perform services for the 

18 plan and who are treated as a single employer 

19 under subsection (b), (c), (m), or (o) of section 

20 414 shall be treated as one person. 

21 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

22 SPONSORS.—Except with respect to the adminis23 trative duties of the pooled plan provider de24 scribed in subparagraph (A)(i), each employer in 

25 a plan which has a pooled plan provider shall 


kjohnson on DSK79L0C42 with BILLS
10 

•HR 1994 RH

1 be treated as the plan sponsor with respect to the 

2 portion of the plan attributable to employees of 

3 such employer (or beneficiaries of such employ4 ees). 

5 ‘‘(4) GUIDANCE.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall 

7 issue such guidance as the Secretary determines 

8 appropriate to carry out this subsection, includ9 ing guidance— 

10 ‘‘(i) to identify the administrative du11 ties and other actions required to be per12 formed by a pooled plan provider under this 

13 subsection, 

14 ‘‘(ii) which describes the procedures to 

15 be taken to terminate a plan which fails to 

16 meet the requirements to be a plan described 

17 in paragraph (1), including the proper 

18 treatment of, and actions needed to be taken 

19 by, any employer in the plan and the assets 

20 and liabilities of the plan attributable to 

21 employees of such employer (or beneficiaries 

22 of such employees), and 

23 ‘‘(iii) identifying appropriate cases to 

24 which the rules of paragraph (2)(A) will 


kjohnson on DSK79L0C42 with BILLS
11 

•HR 1994 RH

1 apply to employers in the plan failing to 

2 take the actions described in paragraph (1). 

3 The Secretary shall take into account under 

4 clause (iii) whether the failure of an employer or 

5 pooled plan provider to provide any disclosures 

6 or other information, or to take any other action, 

7 necessary to administer a plan or to allow a 

8 plan to meet requirements applicable to the plan 

9 under section 401(a) or 408, whichever is appli10 cable, has continued over a period of time that 

11 demonstrates a lack of commitment to compli12 ance. 

13 ‘‘(B) GOOD FAITH COMPLIANCE WITH LAW

14 BEFORE GUIDANCE.—An employer or pooled 

15 plan provider shall not be treated as failing to 

16 meet a requirement of guidance issued by the 

17 Secretary under this paragraph if, before the 

18 issuance of such guidance, the employer or pooled 

19 plan provider complies in good faith with a rea20 sonable interpretation of the provisions of this 

21 subsection to which such guidance relates. 

22 ‘‘(5) MODEL PLAN.—The Secretary shall publish 

23 model plan language which meets the requirements of 

24 this subsection and of paragraphs (43) and (44) of 

25 section 3 of the Employee Retirement Income Security 


kjohnson on DSK79L0C42 with BILLS
12 

•HR 1994 RH

1 Act of 1974 and which may be adopted in order for 

2 a plan to be treated as a plan described in paragraph 

3 (1)(B).’’. 

4 (2) CONFORMING AMENDMENT.—Section 

5 413(c)(2) of such Code is amended by striking ‘‘sec6 tion 401(a)’’ and inserting ‘‘sections 401(a) and 

7 408(c)’’. 

8 (3) TECHNICAL AMENDMENT.—Section 408(c) of 

9 such Code is amended by inserting after paragraph 

10 (2) the following new paragraph: 

11 ‘‘(3) There is a separate accounting for any in12 terest of an employee or member (or spouse of an em13 ployee or member) in a Roth IRA.’’. 

14 (b) NO COMMON INTEREST REQUIRED FOR POOLED

15 EMPLOYER PLANS.—Section 3(2) of the Employee Retire16 ment Income Security Act of 1974 (29 U.S.C. 1002(2)) is 

17 amended by adding at the end the following: 

18 ‘‘(C) A pooled employer plan shall be treat19 ed as— 

20 ‘‘(i) a single employee pension benefit 

21 plan or single pension plan; and 

22 ‘‘(ii) a plan to which section 210(a) 

23 applies.’’. 

24 (c) POOLED EMPLOYER PLAN AND PROVIDER DE25 FINED.— 


kjohnson on DSK79L0C42 with BILLS
13 

•HR 1994 RH

1 (1) IN GENERAL.—Section 3 of the Employee Re2 tirement Income Security Act of 1974 (29 U.S.C. 

3 1002) is amended by adding at the end the following: 

4 ‘‘(43) POOLED EMPLOYER PLAN.— 

5 ‘‘(A) IN GENERAL.—The term ‘pooled em6 ployer plan’ means a plan— 

7 ‘‘(i) which is an individual account 

8 plan established or maintained for the pur9 pose of providing benefits to the employees 

10 of 2 or more employers; 

11 ‘‘(ii) which is a plan described in sec12 tion 401(a) of the Internal Revenue Code of 

13 1986 which includes a trust exempt from 

14 tax under section 501(a) of such Code or a 

15 plan that consists of individual retirement 

16 accounts described in section 408 of such 

17 Code (including by reason of subsection (c) 

18 thereof); and 

19 ‘‘(iii) the terms of which meet the re20 quirements of subparagraph (B). 

21 Such term shall not include a plan maintained 

22 by employers which have a common interest 

23 other than having adopted the plan. 

24 ‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 

25 The requirements of this subparagraph are met 


kjohnson on DSK79L0C42 with BILLS
14 

•HR 1994 RH

1 with respect to any plan if the terms of the 

2 plan— 

3 ‘‘(i) designate a pooled plan provider 

4 and provide that the pooled plan provider is 

5 a named fiduciary of the plan; 

6 ‘‘(ii) designate one or more trustees 

7 meeting the requirements of section 

8 408(a)(2) of the Internal Revenue Code of 

9 1986 (other than an employer in the plan) 

10 to be responsible for collecting contributions 

11 to, and holding the assets of, the plan and 

12 require such trustees to implement written 

13 contribution collection procedures that are 

14 reasonable, diligent, and systematic; 

15 ‘‘(iii) provide that each employer in 

16 the plan retains fiduciary responsibility 

17 for— 

18 ‘‘(I) the selection and monitoring 

19 in accordance with section 404(a) of 

20 the person designated as the pooled 

21 plan provider and any other person 

22 who, in addition to the pooled plan 

23 provider, is designated as a named fi24 duciary of the plan; and 


kjohnson on DSK79L0C42 with BILLS
15 

•HR 1994 RH

1 ‘‘(II) to the extent not otherwise 

2 delegated to another fiduciary by the 

3 pooled plan provider and subject to the 

4 provisions of section 404(c), the invest5 ment and management of the portion 

6 of the plan’s assets attributable to the 

7 employees of the employer (or bene8 ficiaries of such employees); 

9 ‘‘(iv) provide that employers in the 

10 plan, and participants and beneficiaries, 

11 are not subject to unreasonable restrictions, 

12 fees, or penalties with regard to ceasing 

13 participation, receipt of distributions, or 

14 otherwise transferring assets of the plan in 

15 accordance with section 208 or paragraph 

16 (44)(C)(i)(II); 

17 ‘‘(v) require— 

18 ‘‘(I) the pooled plan provider to 

19 provide to employers in the plan any 

20 disclosures or other information which 

21 the Secretary may require, including 

22 any disclosures or other information to 

23 facilitate the selection or any moni24 toring of the pooled plan provider by 

25 employers in the plan; and 


kjohnson on DSK79L0C42 with BILLS
16 

•HR 1994 RH

1 ‘‘(II) each employer in the plan to 

2 take such actions as the Secretary or 

3 the pooled plan provider determines 

4 are necessary to administer the plan or 

5 for the plan to meet any requirement 

6 applicable under this Act or the Inter7 nal Revenue Code of 1986 to a plan de8 scribed in section 401(a) of such Code 

9 or to a plan that consists of individual 

10 retirement accounts described in sec11 tion 408 of such Code (including by 

12 reason of subsection (c) thereof), which13 ever is applicable, including providing 

14 any disclosures or other information 

15 which the Secretary may require or 

16 which the pooled plan provider other17 wise determines are necessary to ad18 minister the plan or to allow the plan 

19 to meet such requirements; and 

20 ‘‘(vi) provide that any disclosure or 

21 other information required to be provided 

22 under clause (v) may be provided in elec23 tronic form and will be designed to ensure 

24 only reasonable costs are imposed on pooled 

25 plan providers and employers in the plan. 


kjohnson on DSK79L0C42 with BILLS
17 

•HR 1994 RH

1 ‘‘(C) EXCEPTIONS.—The term ‘pooled em2 ployer plan’ does not include— 

3 ‘‘(i) a multiemployer plan; or 

4 ‘‘(ii) a plan established before the date 

5 of the enactment of the Setting Every Com6 munity Up for Retirement Enhancement 

7 Act of 2019 unless the plan administrator 

8 elects that the plan will be treated as a 

9 pooled employer plan and the plan meets 

10 the requirements of this title applicable to a 

11 pooled employer plan established on or after 

12 such date. 

13 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

14 SPONSORS.—Except with respect to the adminis15 trative duties of the pooled plan provider de16 scribed in paragraph (44)(A)(i), each employer 

17 in a pooled employer plan shall be treated as the 

18 plan sponsor with respect to the portion of the 

19 plan attributable to employees of such employer 

20 (or beneficiaries of such employees). 

21 ‘‘(44) POOLED PLAN PROVIDER.— 

22 ‘‘(A) IN GENERAL.—The term ‘pooled plan 

23 provider’ means a person who— 

24 ‘‘(i) is designated by the terms of a 

25 pooled employer plan as a named fiduciary, 


kjohnson on DSK79L0C42 with BILLS
18 

•HR 1994 RH

1 as the plan administrator, and as the per2 son responsible for the performance of all 

3 administrative duties (including conducting 

4 proper testing with respect to the plan and 

5 the employees of each employer in the plan) 

6 which are reasonably necessary to ensure 

7 that— 

8 ‘‘(I) the plan meets any require9 ment applicable under this Act or the 

10 Internal Revenue Code of 1986 to a 

11 plan described in section 401(a) of 

12 such Code or to a plan that consists of 

13 individual retirement accounts de14 scribed in section 408 of such Code (in15 cluding by reason of subsection (c) 

16 thereof), whichever is applicable; and 

17 ‘‘(II) each employer in the plan 

18 takes such actions as the Secretary or 

19 pooled plan provider determines are 

20 necessary for the plan to meet the re21 quirements described in subclause (I), 

22 including providing the disclosures and 

23 information described in paragraph 

24 (43)(B)(v)(II); 


kjohnson on DSK79L0C42 with BILLS
19 

•HR 1994 RH

1 ‘‘(ii) registers as a pooled plan pro2 vider with the Secretary, and provides to 

3 the Secretary such other information as the 

4 Secretary may require, before beginning op5 erations as a pooled plan provider; 

6 ‘‘(iii) acknowledges in writing that 

7 such person is a named fiduciary, and the 

8 plan administrator, with respect to the 

9 pooled employer plan; and 

10 ‘‘(iv) is responsible for ensuring that 

11 all persons who handle assets of, or who are 

12 fiduciaries of, the pooled employer plan are 

13 bonded in accordance with section 412. 

14 ‘‘(B) AUDITS, EXAMINATIONS AND INVES15 TIGATIONS.—The Secretary may perform audits, 

16 examinations, and investigations of pooled plan 

17 providers as may be necessary to enforce and 

18 carry out the purposes of this paragraph and 

19 paragraph (43). 

20 ‘‘(C) GUIDANCE.—The Secretary shall issue 

21 such guidance as the Secretary determines ap22 propriate to carry out this paragraph and para23 graph (43), including guidance— 

24 ‘‘(i) to identify the administrative du25 ties and other actions required to be perVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
20 

•HR 1994 RH

1 formed by a pooled plan provider under ei2 ther such paragraph; and 

3 ‘‘(ii) which requires in appropriate 

4 cases that if an employer in the plan fails 

5 to take the actions required under subpara6 graph (A)(i)(II)— 

7 ‘‘(I) the assets of the plan attrib8 utable to employees of such employer 

9 (or beneficiaries of such employees) are 

10 transferred to a plan maintained only 

11 by such employer (or its successor), to 

12 an eligible retirement plan as defined 

13 in section 402(c)(8)(B) of the Internal 

14 Revenue Code of 1986 for each indi15 vidual whose account is transferred, or 

16 to any other arrangement that the Sec17 retary determines is appropriate in 

18 such guidance; and 

19 ‘‘(II) such employer (and not the 

20 plan with respect to which the failure 

21 occurred or any other employer in such 

22 plan) shall, except to the extent pro23 vided in such guidance, be liable for 

24 any liabilities with respect to such 

25 plan attributable to employees of such 


kjohnson on DSK79L0C42 with BILLS
21 

•HR 1994 RH

1 employer (or beneficiaries of such em2 ployees). 

3 The Secretary shall take into account under 

4 clause (ii) whether the failure of an em5 ployer or pooled plan provider to provide 

6 any disclosures or other information, or to 

7 take any other action, necessary to admin8 ister a plan or to allow a plan to meet re9 quirements described in subparagraph 

10 (A)(i)(II) has continued over a period of 

11 time that demonstrates a lack of commit12 ment to compliance. The Secretary may 

13 waive the requirements of subclause (ii)(I) 

14 in appropriate circumstances if the Sec15 retary determines it is in the best interests 

16 of the employees of the employer referred to 

17 in such clause (and the beneficiaries of such 

18 employees) to retain the assets in the plan 

19 with respect to which the employer’s failure 

20 occurred. 

21 ‘‘(D) GOOD FAITH COMPLIANCE WITH LAW

22 BEFORE GUIDANCE.—An employer or pooled 

23 plan provider shall not be treated as failing to 

24 meet a requirement of guidance issued by the 

25 Secretary under subparagraph (C) if, before the 


kjohnson on DSK79L0C42 with BILLS
22 

•HR 1994 RH

1 issuance of such guidance, the employer or pooled 

2 plan provider complies in good faith with a rea3 sonable interpretation of the provisions of this 

4 paragraph, or paragraph (43), to which such 

5 guidance relates. 

6 ‘‘(E) AGGREGATION RULES.—For purposes 

7 of this paragraph, in determining whether a per8 son meets the requirements of this paragraph to 

9 be a pooled plan provider with respect to any 

10 plan, all persons who perform services for the 

11 plan and who are treated as a single employer 

12 under subsection (b), (c), (m), or (o) of section 

13 414 of the Internal Revenue Code of 1986 shall 

14 be treated as one person.’’. 

15 (2) BONDING REQUIREMENTS FOR POOLED EM16 PLOYER PLANS.—The last sentence of section 412(a) 

17 of the Employee Retirement Income Security Act of 

18 1974 (29 U.S.C. 1112(a)) is amended by inserting 

19 ‘‘or in the case of a pooled employer plan (as defined 

20 in section 3(43))’’ after ‘‘section 407(d)(1))’’. 

21 (3) CONFORMING AND TECHNICAL AMEND22 MENTS.—Section 3 of the Employee Retirement In23 come Security Act of 1974 (29 U.S.C. 1002) is 

24 amended— 

25 (A) in paragraph (16)(B)— 


kjohnson on DSK79L0C42 with BILLS
23 

•HR 1994 RH

1 (i) by striking ‘‘or’’ at the end of clause 

2 (ii); and 

3 (ii) by striking the period at the end 

4 and inserting ‘‘, or (iv) in the case of a 

5 pooled employer plan, the pooled plan pro6 vider.’’; and 

7 (B) by striking the second paragraph (41). 

8 (d) POOLED EMPLOYER AND MULTIPLE EMPLOYER

9 PLAN REPORTING.— 

10 (1) ADDITIONAL INFORMATION.—Section 103 of 

11 the Employee Retirement Income Security Act of 

12 1974 (29 U.S.C. 1023) is amended— 

13 (A) in subsection (a)(1)(B), by striking 

14 ‘‘applicable subsections (d), (e), and (f)’’ and in15 serting ‘‘applicable subsections (d), (e), (f), and 

16 (g)’’; and 

17 (B) by amending subsection (g) to read as 

18 follows: 

19 ‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO

20 POOLED EMPLOYER AND MULTIPLE EMPLOYER PLANS.— 

21 An annual report under this section for a plan year shall 

22 include— 

23 ‘‘(1) with respect to any plan to which section 

24 210(a) applies (including a pooled employer plan), a 

25 list of employers in the plan and a good faith estiVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
24 

•HR 1994 RH

1 mate of the percentage of total contributions made by 

2 such employers during the plan year and the aggre3 gate account balances attributable to each employer in 

4 the plan (determined as the sum of the account bal5 ances of the employees of such employer (and the 

6 beneficiaries of such employees)); and 

7 ‘‘(2) with respect to a pooled employer plan, the 

8 identifying information for the person designated 

9 under the terms of the plan as the pooled plan pro10 vider.’’. 

11 (2) SIMPLIFIED ANNUAL REPORTS.—Section 

12 104(a) of the Employee Retirement Income Security 

13 Act of 1974 (29 U.S.C. 1024(a)) is amended by strik14 ing paragraph (2)(A) and inserting the following: 

15 ‘‘(2)(A) With respect to annual reports required to be 

16 filed with the Secretary under this part, the Secretary may 

17 by regulation prescribe simplified annual reports for any 

18 pension plan that— 

19 ‘‘(i) covers fewer than 100 participants; or 

20 ‘‘(ii) is a plan described in section 210(a) that 

21 covers fewer than 1,000 participants, but only if no 

22 single employer in the plan has 100 or more partici23 pants covered by the plan.’’. 

24 (e) EFFECTIVE DATE.— 


kjohnson on DSK79L0C42 with BILLS
25 

•HR 1994 RH

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

2 this section shall apply to plan years beginning after 

3 December 31, 2020. 

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

5 amendments made by subsection (a) shall be con6 strued as limiting the authority of the Secretary of 

7 the Treasury or the Secretary’s delegate (determined 

8 without regard to such amendment) to provide for the 

9 proper treatment of a failure to meet any requirement 

10 applicable under the Internal Revenue Code of 1986 

11 with respect to one employer (and its employees) in 

12 a multiple employer plan. 

13 SEC. 102. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC 

14 ENROLLMENT SAFE HARBOR AFTER 1ST PLAN 

15 YEAR. 

16 (a) IN GENERAL.—Section 401(k)(13)(C)(iii) of the 

17 Internal Revenue Code of 1986 is amended by striking ‘‘does 

18 not exceed 10 percent’’ and inserting ‘‘does not exceed 15 

19 percent (10 percent during the period described in subclause 

20 (I))’’. 

21 (b) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to plan years beginning after December 

23 31, 2019. 


kjohnson on DSK79L0C42 with BILLS
26 

•HR 1994 RH

1 SEC. 103. RULES RELATING TO ELECTION OF SAFE HARBOR 

2 401(k) STATUS. 

3 (a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE TO

4 MATCHING CONTRIBUTION PLANS.— 

5 (1) IN GENERAL.—Subparagraph (A) of section 

6 401(k)(12) of the Internal Revenue Code of 1986 is 

7 amended by striking ‘‘if such arrangement’’ and all 

8 that follows and inserting ‘‘if such arrangement— 

9 ‘‘(i) meets the contribution require10 ments of subparagraph (B) and the notice 

11 requirements of subparagraph (D), or 

12 ‘‘(ii) meets the contribution require13 ments of subparagraph (C).’’. 

14 (2) AUTOMATIC CONTRIBUTION ARRANGE15 MENTS.—Subparagraph (B) of section 401(k)(13) of 

16 such Code is amended by striking ‘‘means’’ and all 

17 that follows and inserting ‘‘means a cash or deferred 

18 arrangement— 

19 ‘‘(i) which is described in subpara20 graph (D)(i)(I) and meets the applicable re21 quirements of subparagraphs (C) through 

22 (E), or 

23 ‘‘(ii) which is described in subpara24 graph (D)(i)(II) and meets the applicable 

25 requirements of subparagraphs (C) and 

26 (D).’’. 


kjohnson on DSK79L0C42 with BILLS
27 

•HR 1994 RH

1 (b) NONELECTIVE CONTRIBUTIONS.—Section 

2 401(k)(12) of the Internal Revenue Code of 1986 is amended 

3 by redesignating subparagraph (F) as subparagraph (G), 

4 and by inserting after subparagraph (E) the following new 

5 subparagraph: 

6 ‘‘(F) TIMING OF PLAN AMENDMENT FOR EM7 PLOYER MAKING NONELECTIVE CONTRIBU8 TIONS.— 

9 ‘‘(i) IN GENERAL.—Except as provided 

10 in clause (ii), a plan may be amended after 

11 the beginning of a plan year to provide that 

12 the requirements of subparagraph (C) shall 

13 apply to the arrangement for the plan year, 

14 but only if the amendment is adopted— 

15 ‘‘(I) at any time before the 30th 

16 day before the close of the plan year, or 

17 ‘‘(II) at any time before the last 

18 day under paragraph (8)(A) for dis19 tributing excess contributions for the 

20 plan year. 

21 ‘‘(ii) EXCEPTION WHERE PLAN PRO22 VIDED FOR MATCHING CONTRIBUTIONS.— 

23 Clause (i) shall not apply to any plan year 

24 if the plan provided at any time during the 

25 plan year that the requirements of subparaVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
28 

•HR 1994 RH

1 graph (B) or paragraph (13)(D)(i)(I) ap2 plied to the plan year. 

3 ‘‘(iii) 4-PERCENT CONTRIBUTION RE4 QUIREMENT.—Clause (i)(II) shall not apply 

5 to an arrangement unless the amount of the 

6 contributions described in subparagraph (C) 

7 which the employer is required to make 

8 under the arrangement for the plan year 

9 with respect to any employee is an amount 

10 equal to at least 4 percent of the employee’s 

11 compensation.’’. 

12 (c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 

13 Section 401(k)(13) of the Internal Revenue Code of 1986 

14 is amended by adding at the end the following : 

15 ‘‘(F) TIMING OF PLAN AMENDMENT FOR EM16 PLOYER MAKING NONELECTIVE CONTRIBU17 TIONS.— 

18 ‘‘(i) IN GENERAL.—Except as provided 

19 in clause (ii), a plan may be amended after 

20 the beginning of a plan year to provide that 

21 the requirements of subparagraph (D)(i)(II) 

22 shall apply to the arrangement for the plan 

23 year, but only if the amendment is adopt24 ed— 


kjohnson on DSK79L0C42 with BILLS
29 

•HR 1994 RH

1 ‘‘(I) at any time before the 30th 

2 day before the close of the plan year, or 

3 ‘‘(II) at any time before the last 

4 day under paragraph (8)(A) for dis5 tributing excess contributions for the 

6 plan year. 

7 ‘‘(ii) EXCEPTION WHERE PLAN PRO8 VIDED FOR MATCHING CONTRIBUTIONS.— 

9 Clause (i) shall not apply to any plan year 

10 if the plan provided at any time during the 

11 plan year that the requirements of subpara12 graph (D)(i)(I) or paragraph (12)(B) ap13 plied to the plan year. 

14 ‘‘(iii) 4-PERCENT CONTRIBUTION RE15 QUIREMENT.—Clause (i)(II) shall not apply 

16 to an arrangement unless the amount of the 

17 contributions described in subparagraph 

18 (D)(i)(II) which the employer is required to 

19 make under the arrangement for the plan 

20 year with respect to any employee is an 

21 amount equal to at least 4 percent of the 

22 employee’s compensation.’’. 

23 (d) EFFECTIVE DATE.—The amendments made by this 

24 section shall apply to plan years beginning after December 

25 31, 2019. 


kjohnson on DSK79L0C42 with BILLS
30 

•HR 1994 RH

1 SEC. 104. INCREASE IN CREDIT LIMITATION FOR SMALL EM2 PLOYER PENSION PLAN STARTUP COSTS. 

3 (a) IN GENERAL.—Paragraph (1) of section 45E(b) of 

4 the Internal Revenue Code of 1986 is amended to read as 

5 follows: 

6 ‘‘(1) for the first credit year and each of the 2 

7 taxable years immediately following the first credit 

8 year, the greater of— 

9 ‘‘(A) $500, or 

10 ‘‘(B) the lesser of— 

11 ‘‘(i) $250 for each employee of the eli12 gible employer who is not a highly com13 pensated employee (as defined in section 

14 414(q)) and who is eligible to participate in 

15 the eligible employer plan maintained by 

16 the eligible employer, or 

17 ‘‘(ii) $5,000, and’’. 

18 (b) EFFECTIVE DATE.—The amendment made by this 

19 section shall apply to taxable years beginning after Decem20 ber 31, 2019. 

21 SEC. 105. SMALL EMPLOYER AUTOMATIC ENROLLMENT 

22 CREDIT. 

23 (a) IN GENERAL.—Subpart D of part IV of subchapter 

24 A of chapter 1 of the Internal Revenue Code of 1986 is 

25 amended by adding at the end the following new section: 


kjohnson on DSK79L0C42 with BILLS
31 

•HR 1994 RH

1 ‘‘SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT 

2 SAVINGS OPTIONS PROVIDED BY SMALL EM3 PLOYERS. 

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

5 case of an eligible employer, the retirement auto-enrollment 

6 credit determined under this section for any taxable year 

7 is an amount equal to— 

8 ‘‘(1) $500 for any taxable year occurring during 

9 the credit period, and 

10 ‘‘(2) zero for any other taxable year. 

11 ‘‘(b) CREDIT PERIOD.—For purposes of subsection 

12 (a)— 

13 ‘‘(1) IN GENERAL.—The credit period with re14 spect to any eligible employer is the 3-taxable-year 

15 period beginning with the first taxable year for which 

16 the employer includes an eligible automatic contribu17 tion arrangement (as defined in section 414(w)(3)) in 

18 a qualified employer plan (as defined in section 

19 4972(d)) sponsored by the employer. 

20 ‘‘(2) MAINTENANCE OF ARRANGEMENT.—No tax21 able year with respect to an employer shall be treated 

22 as occurring within the credit period unless the ar23 rangement described in paragraph (1) is included in 

24 the plan for such year. 


kjohnson on DSK79L0C42 with BILLS
32 

•HR 1994 RH

1 ‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this sec2 tion, the term ‘eligible employer’ has the meaning given 

3 such term in section 408(p)(2)(C)(i).’’. 

4 (b) CREDIT TO BE PART OF GENERAL BUSINESS

5 CREDIT.—Subsection (b) of section 38 of the Internal Rev6 enue Code of 1986 is amended by striking ‘‘plus’’ at the 

7 end of paragraph (31), by striking the period at the end 

8 of paragraph (32) and inserting ‘‘, plus’’, and by adding 

9 at the end the following new paragraph: 

10 ‘‘(33) in the case of an eligible employer (as de11 fined in section 45T(c)), the retirement auto-enroll12 ment credit determined under section 45T(a).’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections for 

14 subpart D of part IV of subchapter A of chapter 1 of the 

15 Internal Revenue Code of 1986 is amended by inserting 

16 after the item relating to section 45S the following new 

17 item: 

‘‘Sec. 45T. Auto-enrollment option for retirement savings options provided by 

small employers.’’. 

18 (d) EFFECTIVE DATE.—The amendments made by this 

19 section shall apply to taxable years beginning after Decem20 ber 31, 2019. 


kjohnson on DSK79L0C42 with BILLS
33 

•HR 1994 RH

1 SEC. 106. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 

2 AND STIPEND PAYMENTS TREATED AS COM3 PENSATION FOR IRA PURPOSES. 

4 (a) IN GENERAL.—Paragraph (1) of section 219(f) of 

5 the Internal Revenue Code of 1986 is amended by adding 

6 at the end the following: ‘‘The term ‘compensation’ shall in7 clude any amount which is included in the individual’s 

8 gross income and paid to the individual to aid the indi9 vidual in the pursuit of graduate or postdoctoral study.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by this 

11 section shall apply to taxable years beginning after Decem12 ber 31, 2019. 

13 SEC. 107. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 

14 CONTRIBUTIONS. 

15 (a) IN GENERAL.—Paragraph (1) of section 219(d) of 

16 the Internal Revenue Code of 1986 is repealed. 

17 (b) CONFORMING AMENDMENT.—Subsection (c) of sec18 tion 408A of the Internal Revenue Code of 1986 is amended 

19 by striking paragraph (4) and by redesignating paragraphs 

20 (5), (6), and (7) as paragraphs (4), (5), and (6), respec21 tively. 

22 (c) EFFECTIVE DATE.—The amendments made by this 

23 section shall apply to contributions made for taxable years 

24 beginning after December 31, 2019. 


kjohnson on DSK79L0C42 with BILLS
34 

•HR 1994 RH

1 SEC. 108. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 

2 MAKING LOANS THROUGH CREDIT CARDS 

3 AND OTHER SIMILAR ARRANGEMENTS. 

4 (a) IN GENERAL.—Paragraph (2) of section 72(p) of 

5 the Internal Revenue Code of 1986 is amended by redesig6 nating subparagraph (D) as subparagraph (E) and by in7 serting after subparagraph (C) the following new subpara8 graph: 

9 ‘‘(D) PROHIBITION OF LOANS THROUGH

10 CREDIT CARDS AND OTHER SIMILAR ARRANGE11 MENTS.—Subparagraph (A) shall not apply to 

12 any loan which is made through the use of any 

13 credit card or any other similar arrangement.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by sub15 section (a) shall apply to loans made after the date of the 

16 enactment of this Act. 

17 SEC. 109. PORTABILITY OF LIFETIME INCOME OPTIONS. 

18 (a) IN GENERAL.—Subsection (a) of section 401 of the 

19 Internal Revenue Code of 1986 is amended by inserting 

20 after paragraph (37) the following new paragraph: 

21 ‘‘(38) PORTABILITY OF LIFETIME INCOME.— 

22 ‘‘(A) IN GENERAL.—Except as may be oth23 erwise provided by regulations, a trust forming 

24 part of a defined contribution plan shall not be 

25 treated as failing to constitute a qualified trust 

26 under this section solely by reason of allowing— 


kjohnson on DSK79L0C42 with BILLS
35 

•HR 1994 RH

1 ‘‘(i) qualified distributions of a life2 time income investment, or 

3 ‘‘(ii) distributions of a lifetime income 

4 investment in the form of a qualified plan 

5 distribution annuity contract, 

6 on or after the date that is 90 days prior to the 

7 date on which such lifetime income investment is 

8 no longer authorized to be held as an investment 

9 option under the plan. 

10 ‘‘(B) DEFINITIONS.—For purposes of this 

11 subsection— 

12 ‘‘(i) the term ‘qualified distribution’ 

13 means a direct trustee-to-trustee transfer de14 scribed in paragraph (31)(A) to an eligible 

15 retirement plan (as defined in section 

16 402(c)(8)(B)), 

17 ‘‘(ii) the term ‘lifetime income invest18 ment’ means an investment option which is 

19 designed to provide an employee with elec20 tion rights— 

21 ‘‘(I) which are not uniformly 

22 available with respect to other invest23 ment options under the plan, and 

24 ‘‘(II) which are to a lifetime in25 come feature available through a conVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
36 

•HR 1994 RH

1 tract or other arrangement offered 

2 under the plan (or under another eligi3 ble retirement plan (as so defined), if 

4 paid by means of a direct trustee-to5 trustee transfer described in paragraph 

6 (31)(A) to such other eligible retire7 ment plan), 

8 ‘‘(iii) the term ‘lifetime income feature’ 

9 means— 

10 ‘‘(I) a feature which guarantees a 

11 minimum level of income annually (or 

12 more frequently) for at least the re13 mainder of the life of the employee or 

14 the joint lives of the employee and the 

15 employee’s designated beneficiary, or 

16 ‘‘(II) an annuity payable on be17 half of the employee under which pay18 ments are made in substantially equal 

19 periodic payments (not less frequently 

20 than annually) over the life of the em21 ployee or the joint lives of the employee 

22 and the employee’s designated bene23 ficiary, and 

24 ‘‘(iv) the term ‘qualified plan distribu25 tion annuity contract’ means an annuity 


kjohnson on DSK79L0C42 with BILLS
37 

•HR 1994 RH

1 contract purchased for a participant and 

2 distributed to the participant by a plan or 

3 contract described in subparagraph (B) of 

4 section 402(c)(8) (without regard to clauses 

5 (i) and (ii) thereof).’’. 

6 (b) CASH OR DEFERRED ARRANGEMENT.— 

7 (1) IN GENERAL.—Clause (i) of section 

8 401(k)(2)(B) of the Internal Revenue Code of 1986 is 

9 amended by striking ‘‘or’’ at the end of subclause 

10 (IV), by striking ‘‘and’’ at the end of subclause (V) 

11 and inserting ‘‘or’’, and by adding at the end the fol12 lowing new subclause: 

13 ‘‘(VI) except as may be otherwise 

14 provided by regulations, with respect to 

15 amounts invested in a lifetime income 

16 investment (as defined in subsection 

17 (a)(38)(B)(ii)), the date that is 90 

18 days prior to the date that such life19 time income investment may no longer 

20 be held as an investment option under 

21 the arrangement, and’’. 

22 (2) DISTRIBUTION REQUIREMENT.—Subpara23 graph (B) of section 401(k)(2) of such Code, as 

24 amended by paragraph (1), is amended by striking 

25 ‘‘and’’ at the end of clause (i), by striking the semiVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
38 

•HR 1994 RH

1 colon at the end of clause (ii) and inserting ‘‘, and’’, 

2 and by adding at the end the following new clause: 

3 ‘‘(iii) except as may be otherwise pro4 vided by regulations, in the case of amounts 

5 described in clause (i)(VI), will be distrib6 uted only in the form of a qualified dis7 tribution (as defined in subsection 

8 (a)(38)(B)(i)) or a qualified plan distribu9 tion annuity contract (as defined in sub10 section (a)(38)(B)(iv)),’’. 

11 (c) SECTION 403(b) PLANS.— 

12 (1) ANNUITY CONTRACTS.—Paragraph (11) of 

13 section 403(b) of the Internal Revenue Code of 1986 

14 is amended by striking ‘‘or’’ at the end of subpara15 graph (B), by striking the period at the end of sub16 paragraph (C) and inserting ‘‘, or’’, and by inserting 

17 after subparagraph (C) the following new subpara18 graph: 

19 ‘‘(D) except as may be otherwise provided 

20 by regulations, with respect to amounts invested 

21 in a lifetime income investment (as defined in 

22 section 401(a)(38)(B)(ii))— 

23 ‘‘(i) on or after the date that is 90 

24 days prior to the date that such lifetime in25 come investment may no longer be held as 


kjohnson on DSK79L0C42 with BILLS
39 

•HR 1994 RH

1 an investment option under the contract, 

2 and 

3 ‘‘(ii) in the form of a qualified dis4 tribution (as defined in section 

5 401(a)(38)(B)(i)) or a qualified plan dis6 tribution annuity contract (as defined in 

7 section 401(a)(38)(B)(iv)).’’. 

8 (2) CUSTODIAL ACCOUNTS.—Subparagraph (A) 

9 of section 403(b)(7) of such Code is amended by strik10 ing ‘‘if—’’ and all that follows and inserting ‘‘if the 

11 amounts are to be invested in regulated investment 

12 company stock to be held in that custodial account, 

13 and under the custodial account— 

14 ‘‘(i) no such amounts may be paid or 

15 made available to any distributee (unless 

16 such amount is a distribution to which sec17 tion 72(t)(2)(G) applies) before— 

18 ‘‘(I) the employee dies, 

19 ‘‘(II) the employee attains age 

591 20 ⁄2, 

21 ‘‘(III) the employee has a sever22 ance from employment, 

23 ‘‘(IV) the employee becomes dis24 abled (within the meaning of section 

25 72(m)(7)), 


kjohnson on DSK79L0C42 with BILLS
40 

•HR 1994 RH

1 ‘‘(V) in the case of contributions 

2 made pursuant to a salary reduction 

3 agreement (within the meaning of sec4 tion 3121(a)(5)(D)), the employee en5 counters financial hardship, or 

6 ‘‘(VI) except as may be otherwise 

7 provided by regulations, with respect to 

8 amounts invested in a lifetime income 

9 investment (as defined in section 

10 401(a)(38)(B)(ii)), the date that is 90 

11 days prior to the date that such life12 time income investment may no longer 

13 be held as an investment option under 

14 the contract, and 

15 ‘‘(ii) in the case of amounts described 

16 in clause (i)(VI), such amounts will be dis17 tributed only in the form of a qualified dis18 tribution (as defined in section 

19 401(a)(38)(B)(i)) or a qualified plan dis20 tribution annuity contract (as defined in 

21 section 401(a)(38)(B)(iv)).’’. 

22 (d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 

23 (1) IN GENERAL.—Subparagraph (A) of section 

24 457(d)(1) of the Internal Revenue Code of 1986 is 

25 amended by striking ‘‘or’’ at the end of clause (ii), by 


kjohnson on DSK79L0C42 with BILLS
41 

•HR 1994 RH

1 inserting ‘‘or’’ at the end of clause (iii), and by add2 ing after clause (iii) the following: 

3 ‘‘(iv) except as may be otherwise pro4 vided by regulations, in the case of a plan 

5 maintained by an employer described in 

6 subsection (e)(1)(A), with respect to 

7 amounts invested in a lifetime income in8 vestment (as defined in section 

9 401(a)(38)(B)(ii)), the date that is 90 days 

10 prior to the date that such lifetime income 

11 investment may no longer be held as an in12 vestment option under the plan,’’. 

13 (2) DISTRIBUTION REQUIREMENT.—Paragraph 

14 (1) of section 457(d) of such Code is amended by 

15 striking ‘‘and’’ at the end of subparagraph (B), by 

16 striking the period at the end of subparagraph (C) 

17 and inserting ‘‘, and’’, and by inserting after sub18 paragraph (C) the following new subparagraph: 

19 ‘‘(D) except as may be otherwise provided 

20 by regulations, in the case of amounts described 

21 in subparagraph (A)(iv), such amounts will be 

22 distributed only in the form of a qualified dis23 tribution (as defined in section 401(a)(38)(B)(i)) 

24 or a qualified plan distribution annuity contract 

25 (as defined in section 401(a)(38)(B)(iv)).’’. 


kjohnson on DSK79L0C42 with BILLS
42 

•HR 1994 RH

1 (e) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to plan years beginning after December 

3 31, 2019. 

4 SEC. 110. TREATMENT OF CUSTODIAL ACCOUNTS ON TER5 MINATION OF SECTION 403(b) PLANS. 

6 Not later than six months after the date of enactment 

7 of this Act, the Secretary of the Treasury shall issue guid8 ance to provide that, if an employer terminates the plan 

9 under which amounts are contributed to a custodial account 

10 under subparagraph (A) of section 403(b)(7), the plan ad11 ministrator or custodian may distribute an individual cus12 todial account in kind to a participant or beneficiary of 

13 the plan and the distributed custodial account shall be 

14 maintained by the custodian on a tax-deferred basis as a 

15 section 403(b)(7) custodial account, similar to the treatment 

16 of fully-paid individual annuity contracts under Revenue 

17 Ruling 2011–7, until amounts are actually paid to the par18 ticipant or beneficiary. The guidance shall provide further 

19 (i) that the section 403(b)(7) status of the distributed custo20 dial account is generally maintained if the custodial ac21 count thereafter adheres to the requirements of section 

22 403(b) that are in effect at the time of the distribution of 

23 the account and (ii) that a custodial account would not be 

24 considered distributed to the participant or beneficiary if 

25 the employer has any material retained rights under the 


kjohnson on DSK79L0C42 with BILLS
43 

•HR 1994 RH

1 account (but the employer would not be treated as retaining 

2 material rights simply because the custodial account was 

3 originally opened under a group contract). Such guidance 

4 shall be retroactively effective for taxable years beginning 

5 after December 31, 2008. 

6 SEC. 111. CLARIFICATION OF RETIREMENT INCOME AC7 COUNT RULES RELATING TO CHURCH-CON8 TROLLED ORGANIZATIONS. 

9 (a) IN GENERAL.—Subparagraph (B) of section 

10 403(b)(9) of the Internal Revenue Code of 1986 is amended 

11 by inserting ‘‘(including an employee described in section 

12 414(e)(3)(B))’’ after ‘‘employee described in paragraph 

13 (1)’’. 

14 (b) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to years beginning before, on, or after 

16 the date of the enactment of this Act. 

17 SEC. 112. QUALIFIED CASH OR DEFERRED ARRANGEMENTS 

18 MUST ALLOW LONG-TERM EMPLOYEES WORK19 ING MORE THAN 500 BUT LESS THAN 1,000 

20 HOURS PER YEAR TO PARTICIPATE. 

21 (a) PARTICIPATION REQUIREMENT.— 

22 (1) IN GENERAL.—Section 401(k)(2)(D) of the 

23 Internal Revenue Code of 1986 is amended to read as 

24 follows: 


kjohnson on DSK79L0C42 with BILLS
44 

•HR 1994 RH

1 ‘‘(D) which does not require, as a condition 

2 of participation in the arrangement, that an em3 ployee complete a period of service with the em4 ployer (or employers) maintaining the plan ex5 tending beyond the close of the earlier of— 

6 ‘‘(i) the period permitted under section 

7 410(a)(1) (determined without regard to 

8 subparagraph (B)(i) thereof), or 

9 ‘‘(ii) subject to the provisions of para10 graph (15), the first period of 3 consecutive 

11 12-month periods during each of which the 

12 employee has at least 500 hours of service.’’. 

13 (2) SPECIAL RULES.—Section 401(k) of such 

14 Code is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(15) SPECIAL RULES FOR PARTICIPATION RE17 QUIREMENT FOR LONG-TERM, PART-TIME WORKERS.— 

18 For purposes of paragraph (2)(D)(ii)— 

19 ‘‘(A) AGE REQUIREMENT MUST BE MET.— 

20 Paragraph (2)(D)(ii) shall not apply to an em21 ployee unless the employee has met the require22 ment of section 410(a)(1)(A)(i) by the close of the 

23 last of the 12-month periods described in such 

24 paragraph. 


kjohnson on DSK79L0C42 with BILLS
45 

•HR 1994 RH

1 ‘‘(B) NONDISCRIMINATION AND TOP-HEAVY

2 RULES NOT TO APPLY.— 

3 ‘‘(i) NONDISCRIMINATION RULES.—In 

4 the case of employees who are eligible to 

5 participate in the arrangement solely by 

6 reason of paragraph (2)(D)(ii)— 

7 ‘‘(I) notwithstanding subsection 

8 (a)(4), an employer shall not be re9 quired to make nonelective or matching 

10 contributions on behalf of such employ11 ees even if such contributions are made 

12 on behalf of other employees eligible to 

13 participate in the arrangement, and 

14 ‘‘(II) an employer may elect to ex15 clude such employees from the applica16 tion of subsection (a)(4), paragraphs 

17 (3), (12), and (13), subsection (m)(2), 

18 and section 410(b). 

19 ‘‘(ii) TOP-HEAVY RULES.—An em20 ployer may elect to exclude all employees 

21 who are eligible to participate in a plan 

22 maintained by the employer solely by rea23 son of paragraph (2)(D)(ii) from the appli24 cation of the vesting and benefit requireVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
46 

•HR 1994 RH

1 ments under subsections (b) and (c) of sec2 tion 416. 

3 ‘‘(iii) VESTING.—For purposes of de4 termining whether an employee described in 

5 clause (i) has a nonforfeitable right to em6 ployer contributions (other than contribu7 tions described in paragraph (3)(D)(i)) 

8 under the arrangement, each 12-month pe9 riod for which the employee has at least 500 

10 hours of service shall be treated as a year of 

11 service. 

12 ‘‘(iv) EMPLOYEES WHO BECOME FULL13 TIME EMPLOYEES.—This subparagraph 

14 shall cease to apply to any employee as of 

15 the first plan year beginning after the plan 

16 year in which the employee meets the re17 quirements of section 410(a)(1)(A)(ii) with18 out regard to paragraph (2)(D)(ii). 

19 ‘‘(C) EXCEPTION FOR EMPLOYEES UNDER

20 COLLECTIVELY BARGAINED PLANS, ETC.—Para21 graph (2)(D)(ii) shall not apply to employees de22 scribed in section 410(b)(3). 

23 ‘‘(D) SPECIAL RULES.— 

24 ‘‘(i) TIME OF PARTICIPATION.—The 

25 rules of section 410(a)(4) shall apply to an 


kjohnson on DSK79L0C42 with BILLS
47 

•HR 1994 RH

1 employee eligible to participate in an ar2 rangement solely by reason of paragraph 

3 (2)(D)(ii). 

4 ‘‘(ii) 12-MONTH PERIODS.—12-month 

5 periods shall be determined in the same 

6 manner as under the last sentence of section 

7 410(a)(3)(A).’’. 

8 (b) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to plan years beginning after December 

10 31, 2020, except that, for purposes of section 

11 401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 (as 

12 added by such amendments), 12-month periods beginning 

13 before January 1, 2021, shall not be taken into account. 

14 SEC. 113. PENALTY-FREE WITHDRAWALS FROM RETIRE15 MENT PLANS FOR INDIVIDUALS IN CASE OF 

16 BIRTH OF CHILD OR ADOPTION. 

17 (a) IN GENERAL.—Section 72(t)(2) of the Internal 

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

19 the following new subparagraph: 

20 ‘‘(H) DISTRIBUTIONS FROM RETIREMENT

21 PLANS IN CASE OF BIRTH OF CHILD OR ADOP22 TION.— 

23 ‘‘(i) IN GENERAL.—Any qualified birth 

24 or adoption distribution. 


kjohnson on DSK79L0C42 with BILLS
48 

•HR 1994 RH

1 ‘‘(ii) LIMITATION.—The aggregate 

2 amount which may be treated as qualified 

3 birth or adoption distributions by any indi4 vidual with respect to any birth or adoption 

5 shall not exceed $5,000. 

6 ‘‘(iii) QUALIFIED BIRTH OR ADOPTION

7 DISTRIBUTION.—For purposes of this sub8 paragraph— 

9 ‘‘(I) IN GENERAL.—The term 

10 ‘qualified birth or adoption distribu11 tion’ means any distribution from an 

12 applicable eligible retirement plan to 

13 an individual if made during the 1- 

14 year period beginning on the date on 

15 which a child of the individual is born 

16 or on which the legal adoption by the 

17 individual of an eligible adoptee is fi18 nalized. 

19 ‘‘(II) ELIGIBLE ADOPTEE.—The 

20 term ‘eligible adoptee’ means any indi21 vidual (other than a child of the tax22 payer’s spouse) who has not attained 

23 age 18 or is physically or mentally in24 capable of self-support. 


kjohnson on DSK79L0C42 with BILLS
49 

•HR 1994 RH

1 ‘‘(iv) TREATMENT OF PLAN DISTRIBU2 TIONS.— 

3 ‘‘(I) IN GENERAL.—If a distribu4 tion to an individual would (without 

5 regard to clause (ii)) be a qualified 

6 birth or adoption distribution, a plan 

7 shall not be treated as failing to meet 

8 any requirement of this title merely be9 cause the plan treats the distribution 

10 as a qualified birth or adoption dis11 tribution, unless the aggregate amount 

12 of such distributions from all plans 

13 maintained by the employer (and any 

14 member of any controlled group which 

15 includes the employer) to such indi16 vidual exceeds $5,000. 

17 ‘‘(II) CONTROLLED GROUP.—For 

18 purposes of subclause (I), the term 

19 ‘controlled group’ means any group 

20 treated as a single employer under sub21 section (b), (c), (m), or (o) of section 

22 414. 

23 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

24 REPAID.— 


kjohnson on DSK79L0C42 with BILLS
50 

•HR 1994 RH

1 ‘‘(I) IN GENERAL.—Any indi2 vidual who receives a qualified birth or 

3 adoption distribution may make one or 

4 more contributions in an aggregate 

5 amount not to exceed the amount of 

6 such distribution to an applicable eli7 gible retirement plan of which such in8 dividual is a beneficiary and to which 

9 a rollover contribution of such dis10 tribution could be made under section 

11 402(c), 403(a)(4), 403(b)(8), 408(d)(3), 

12 or 457(e)(16), as the case may be. 

13 ‘‘(II) LIMITATION ON CONTRIBU14 TIONS TO APPLICABLE ELIGIBLE RE15 TIREMENT PLANS OTHER THAN IRAS.— 

16 The aggregate amount of contributions 

17 made by an individual under sub18 clause (I) to any applicable eligible re19 tirement plan which is not an indi20 vidual retirement plan shall not exceed 

21 the aggregate amount of qualified birth 

22 or adoption distributions which are 

23 made from such plan to such indi24 vidual. Subclause (I) shall not apply 

25 to contributions to any applicable eliVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
51 

•HR 1994 RH

1 gible retirement plan which is not an 

2 individual retirement plan unless the 

3 individual is eligible to make contribu4 tions (other than those described in 

5 subclause (I)) to such applicable eligi6 ble retirement plan. 

7 ‘‘(III) TREATMENT OF REPAY8 MENTS OF DISTRIBUTIONS FROM AP9 PLICABLE ELIGIBLE RETIREMENT

10 PLANS OTHER THAN IRAs.—If a con11 tribution is made under subclause (I) 

12 with respect to a qualified birth or 

13 adoption distribution from an applica14 ble eligible retirement plan other than 

15 an individual retirement plan, then 

16 the taxpayer shall, to the extent of the 

17 amount of the contribution, be treated 

18 as having received such distribution in 

19 an eligible rollover distribution (as de20 fined in section 402(c)(4)) and as hav21 ing transferred the amount to the ap22 plicable eligible retirement plan in a 

23 direct trustee to trustee transfer within 

24 60 days of the distribution. 


kjohnson on DSK79L0C42 with BILLS
52 

•HR 1994 RH

1 ‘‘(IV) TREATMENT OF REPAY2 MENTS FOR DISTRIBUTIONS FROM

3 IRAS.—If a contribution is made under 

4 subclause (I) with respect to a quali5 fied birth or adoption distribution 

6 from an individual retirement plan, 

7 then, to the extent of the amount of the 

8 contribution, such distribution shall be 

9 treated as a distribution described in 

10 section 408(d)(3) and as having been 

11 transferred to the applicable eligible re12 tirement plan in a direct trustee to 

13 trustee transfer within 60 days of the 

14 distribution. 

15 ‘‘(vi) DEFINITION AND SPECIAL

16 RULES.—For purposes of this subpara17 graph— 

18 ‘‘(I) APPLICABLE ELIGIBLE RE19 TIREMENT PLAN.—The term ‘applica20 ble eligible retirement plan’ means an 

21 eligible retirement plan (as defined in 

22 section 402(c)(8)(B)) other than a de23 fined benefit plan. 

24 ‘‘(II) EXEMPTION OF DISTRIBU25 TIONS FROM TRUSTEE TO TRUSTEE


kjohnson on DSK79L0C42 with BILLS
53 

•HR 1994 RH

1 TRANSFER AND WITHHOLDING

2 RULES.—For purposes of sections 

3 401(a)(31), 402(f), and 3405, a quali4 fied birth or adoption distribution 

5 shall not be treated as an eligible roll6 over distribution. 

7 ‘‘(III) TAXPAYER MUST INCLUDE

8 TIN.—A distribution shall not be treat9 ed as a qualified birth or adoption dis10 tribution with respect to any child or 

11 eligible adoptee unless the taxpayer in12 cludes the name, age, and TIN of such 

13 child or eligible adoptee on the tax14 payer’s return of tax for the taxable 

15 year. 

16 ‘‘(IV) DISTRIBUTIONS TREATED

17 AS MEETING PLAN DISTRIBUTION RE18 QUIREMENTS.—Any qualified birth or 

19 adoption distribution shall be treated 

20 as meeting the requirements of sections 

21 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 

22 403(b)(11), and 457(d)(1)(A).’’. 

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

24 section shall apply to distributions made after December 31, 

25 2019. 


kjohnson on DSK79L0C42 with BILLS
54 

•HR 1994 RH

1 SEC. 114. INCREASE IN AGE FOR REQUIRED BEGINNING 

2 DATE FOR MANDATORY DISTRIBUTIONS. 

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

4 Internal Revenue Code of 1986 is amended by striking ‘‘age 

701 5 ⁄2’’ and inserting ‘‘age 72’’. 

6 (b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR

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

‘‘age 701 9 ⁄2’’ and inserting ‘‘age 72’’. 

10 (c) CONFORMING AMENDMENTS.— 

11 (1) The last sentence of section 408(b) of such 

Code is amended by striking ‘‘age 701 12 ⁄2’’ and insert13 ing ‘‘age 72’’. 

14 (2) Section 457(d)(1)(A)(i) of such Code is 

amended by striking ‘‘age 701 15 ⁄2’’ and inserting ‘‘age 

16 72’’. 

17 (d) EFFECTIVE DATE.—The amendments made by this 

18 section shall apply to distributions required to be made 

19 after December 31, 2019, with respect to individuals who 

attain age 701 20 ⁄2 after such date. 

21 SEC. 115. SPECIAL RULES FOR MINIMUM FUNDING STAND22 ARDS FOR COMMUNITY NEWSPAPER PLANS. 

23 (a) AMENDMENT TO INTERNAL REVENUE CODE OF

24 1986.—Section 430 of the Internal Revenue Code of 1986 

25 is amended by adding at the end the following new sub26 section: 


kjohnson on DSK79L0C42 with BILLS
55 

•HR 1994 RH

1 ‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER

2 PLANS.— 

3 ‘‘(1) IN GENERAL.—The plan sponsor of a com4 munity newspaper plan under which no participant 

5 has had the participant’s accrued benefit increased 

6 (whether because of service or compensation) after De7 cember 31, 2017, may elect to have the alternative 

8 standards described in paragraph (3) apply to such 

9 plan, and any plan sponsored by any member of the 

10 same controlled group. 

11 ‘‘(2) ELECTION.—An election under paragraph 

12 (1) shall be made at such time and in such manner 

13 as prescribed by the Secretary. Such election, once 

14 made with respect to a plan year, shall apply to all 

15 subsequent plan years unless revoked with the consent 

16 of the Secretary. 

17 ‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND18 ARDS.—The alternative standards described in this 

19 paragraph are the following: 

20 ‘‘(A) INTEREST RATES.— 

21 ‘‘(i) IN GENERAL.—Notwithstanding 

22 subsection (h)(2)(C) and except as provided 

23 in clause (ii), the first, second, and third 

24 segment rates in effect for any month for 

25 purposes of this section shall be 8 percent. 


kjohnson on DSK79L0C42 with BILLS
56 

•HR 1994 RH

1 ‘‘(ii) NEW BENEFIT ACCRUALS.—Not2 withstanding subsection (h)(2), for purposes 

3 of determining the funding target and nor4 mal cost of a plan for any plan year, the 

5 present value of any benefits accrued or 

6 earned under the plan for a plan year with 

7 respect to which an election under para8 graph (1) is in effect shall be determined on 

9 the basis of the U.S. Treasury obligation 

10 yield curve for the day that is the valuation 

11 date of such plan for such plan year. 

12 ‘‘(iii) U.S. TREASURY OBLIGATION

13 YIELD CURVE.—For purposes of this sub14 section, the term ‘U.S. Treasury obligation 

15 yield curve’ means, with respect to any day, 

16 a yield curve which shall be prescribed by 

17 the Secretary for such day on interest-bear18 ing obligations of the United States. 

19 ‘‘(B) SHORTFALL AMORTIZATION BASE.— 

20 ‘‘(i) PREVIOUS SHORTFALL AMORTIZA21 TION BASES.—The shortfall amortization 

22 bases determined under subsection (c)(3) for 

23 all plan years preceding the first plan year 

24 to which the election under paragraph (1) 

25 applies (and all shortfall amortization inVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
57 

•HR 1994 RH

1 stallments determined with respect to such 

2 bases) shall be reduced to zero under rules 

3 similar to the rules of subsection (c)(6). 

4 ‘‘(ii) NEW SHORTFALL AMORTIZATION

5 BASE.—Notwithstanding subsection (c)(3), 

6 the shortfall amortization base for the first 

7 plan year to which the election under para8 graph (1) applies shall be the funding short9 fall of such plan for such plan year (deter10 mined using the interest rates as modified 

11 under subparagraph (A)). 

12 ‘‘(C) DETERMINATION OF SHORTFALL AM13 ORTIZATION INSTALLMENTS.— 

14 ‘‘(i) 30-YEAR PERIOD.—Subparagraphs 

15 (A) and (B) of subsection (c)(2) shall be ap16 plied by substituting ‘30-plan-year’ for ‘7- 

17 plan-year’ each place it appears. 

18 ‘‘(ii) NO SPECIAL ELECTION.—The 

19 election under subparagraph (D) of sub20 section (c)(2) shall not apply to any plan 

21 year to which the election under paragraph 

22 (1) applies. 

23 ‘‘(D) EXEMPTION FROM AT-RISK TREAT24 MENT.—Subsection (i) shall not apply. 


kjohnson on DSK79L0C42 with BILLS
58 

•HR 1994 RH

1 ‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur2 poses of this subsection— 

3 ‘‘(A) IN GENERAL.—The term ‘community 

4 newspaper plan’ means a plan to which this sec5 tion applies maintained by an employer which, 

6 as of December 31, 2017— 

7 ‘‘(i) publishes and distributes daily, ei8 ther electronically or in printed form, 1 or 

9 more community newspapers in a single 

10 State, 

11 ‘‘(ii) is not a company the stock of 

12 which is publicly traded (on a stock ex13 change or in an over-the-counter market), 

14 and is not controlled, directly or indirectly, 

15 by such a company, 

16 ‘‘(iii) is controlled, directly or indi17 rectly— 

18 ‘‘(I) by 1 or more persons residing 

19 primarily in the State in which the 

20 community newspaper is published, 

21 ‘‘(II) for not less than 30 years by 

22 individuals who are members of the 

23 same family, 

24 ‘‘(III) by a trust created or orga25 nized in the State in which the comVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
59 

•HR 1994 RH

1 munity newspaper is published, the 

2 sole trustees of which are persons de3 scribed in subclause (I) or (II), 

4 ‘‘(IV) by an entity which is de5 scribed in section 501(c)(3) and exempt 

6 from taxation under section 501(a), 

7 which is organized and operated in the 

8 State in which the community news9 paper is published, and the primary 

10 purpose of which is to benefit commu11 nities in such State, or 

12 ‘‘(V) by a combination of persons 

13 described in subclause (I), (III), or 

14 (IV), and 

15 ‘‘(iv) does not control, directly or indi16 rectly, any newspaper in any other State. 

17 ‘‘(B) COMMUNITY NEWSPAPER.—The term 

18 ‘community newspaper’ means a newspaper 

19 which primarily serves a metropolitan statistical 

20 area, as determined by the Office of Management 

21 and Budget, with a population of not less than 

22 100,000. 

23 ‘‘(C) CONTROL.—A person shall be treated 

24 as controlled by another person if such other per25 son possesses, directly or indirectly, the power to 


kjohnson on DSK79L0C42 with BILLS
60 

•HR 1994 RH

1 direct or cause the direction and management of 

2 such person (including the power to elect a ma3 jority of the members of the board of directors of 

4 such person) through the ownership of voting se5 curities. 

6 ‘‘(5) CONTROLLED GROUP.—For purposes of this 

7 subsection, the term ‘controlled group’ means all per8 sons treated as a single employer under subsection 

9 (b), (c), (m), or (o) of section 414 as of the date of 

10 the enactment of this subsection.’’. 

11 (b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME

12 SECURITY ACT OF 1974.—Section 303 of the Employee Re13 tirement Income Security Act of 1974 (29 U.S.C. 1083) is 

14 amended by adding at the end the following new subsection: 

15 ‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER

16 PLANS.— 

17 ‘‘(1) IN GENERAL.—The plan sponsor of a com18 munity newspaper plan under which no participant 

19 has had the participant’s accrued benefit increased 

20 (whether because of service or compensation) after De21 cember 31, 2017, may elect to have the alternative 

22 standards described in paragraph (3) apply to such 

23 plan, and any plan sponsored by any member of the 

24 same controlled group. 


kjohnson on DSK79L0C42 with BILLS
61 

•HR 1994 RH

1 ‘‘(2) ELECTION.—An election under paragraph 

2 (1) shall be made at such time and in such manner 

3 as prescribed by the Secretary of the Treasury. Such 

4 election, once made with respect to a plan year, shall 

5 apply to all subsequent plan years unless revoked 

6 with the consent of the Secretary of the Treasury. 

7 ‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND8 ARDS.—The alternative standards described in this 

9 paragraph are the following: 

10 ‘‘(A) INTEREST RATES.— 

11 ‘‘(i) IN GENERAL.—Notwithstanding 

12 subsection (h)(2)(C) and except as provided 

13 in clause (ii), the first, second, and third 

14 segment rates in effect for any month for 

15 purposes of this section shall be 8 percent. 

16 ‘‘(ii) NEW BENEFIT ACCRUALS.—Not17 withstanding subsection (h)(2), for purposes 

18 of determining the funding target and nor19 mal cost of a plan for any plan year, the 

20 present value of any benefits accrued or 

21 earned under the plan for a plan year with 

22 respect to which an election under para23 graph (1) is in effect shall be determined on 

24 the basis of the U.S. Treasury obligation 


kjohnson on DSK79L0C42 with BILLS
62 

•HR 1994 RH

1 yield curve for the day that is the valuation 

2 date of such plan for such plan year. 

3 ‘‘(iii) U.S. TREASURY OBLIGATION

4 YIELD CURVE.—For purposes of this sub5 section, the term ‘U.S. Treasury obligation 

6 yield curve’ means, with respect to any day, 

7 a yield curve which shall be prescribed by 

8 the Secretary of the Treasury for such day 

9 on interest-bearing obligations of the United 

10 States. 

11 ‘‘(B) SHORTFALL AMORTIZATION BASE.— 

12 ‘‘(i) PREVIOUS SHORTFALL AMORTIZA13 TION BASES.—The shortfall amortization 

14 bases determined under subsection (c)(3) for 

15 all plan years preceding the first plan year 

16 to which the election under paragraph (1) 

17 applies (and all shortfall amortization in18 stallments determined with respect to such 

19 bases) shall be reduced to zero under rules 

20 similar to the rules of subsection (c)(6). 

21 ‘‘(ii) NEW SHORTFALL AMORTIZATION

22 BASE.—Notwithstanding subsection (c)(3), 

23 the shortfall amortization base for the first 

24 plan year to which the election under para25 graph (1) applies shall be the funding shortVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
63 

•HR 1994 RH

1 fall of such plan for such plan year (deter2 mined using the interest rates as modified 

3 under subparagraph (A)). 

4 ‘‘(C) DETERMINATION OF SHORTFALL AM5 ORTIZATION INSTALLMENTS.— 

6 ‘‘(i) 30-YEAR PERIOD.—Subparagraphs 

7 (A) and (B) of subsection (c)(2) shall be ap8 plied by substituting ‘30-plan-year’ for ‘7- 

9 plan-year’ each place it appears. 

10 ‘‘(ii) NO SPECIAL ELECTION.—The 

11 election under subparagraph (D) of sub12 section (c)(2) shall not apply to any plan 

13 year to which the election under paragraph 

14 (1) applies. 

15 ‘‘(D) EXEMPTION FROM AT-RISK TREAT16 MENT.—Subsection (i) shall not apply. 

17 ‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur18 poses of this subsection— 

19 ‘‘(A) IN GENERAL.—The term ‘community 

20 newspaper plan’ means a plan to which this sec21 tion applies maintained by an employer which, 

22 as of December 31, 2017— 

23 ‘‘(i) publishes and distributes daily, ei24 ther electronically or in printed form— 

25 ‘‘(I) a community newspaper, or 


kjohnson on DSK79L0C42 with BILLS
64 

•HR 1994 RH

1 ‘‘(II) 1 or more community news2 papers in the same State, 

3 ‘‘(ii) is not a company the stock of 

4 which is publicly traded (on a stock ex5 change or in an over-the-counter market), 

6 and is not controlled, directly or indirectly, 

7 by such a company, 

8 ‘‘(iii) is controlled, directly or indi9 rectly— 

10 ‘‘(I) by 1 or more persons residing 

11 primarily in the State in which the 

12 community newspaper is published, 

13 ‘‘(II) for not less than 30 years by 

14 individuals who are members of the 

15 same family, 

16 ‘‘(III) by a trust created or orga17 nized in the State in which the com18 munity newspaper is published, the 

19 sole trustees of which are persons de20 scribed in subclause (I) or (II), 

21 ‘‘(IV) by an entity which is de22 scribed in section 501(c)(3) of the In23 ternal Revenue Code of 1986 and ex24 empt from taxation under section 

25 501(a) of such Code, which is orgaVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
65 

•HR 1994 RH

1 nized and operated in the State in 

2 which the community newspaper is 

3 published, and the primary purpose of 

4 which is to benefit communities in 

5 such State, or 

6 ‘‘(V) by a combination of persons 

7 described in subclause (I), (III), or 

8 (IV), and 

9 ‘‘(iv) does not control, directly or indi10 rectly, any newspaper in any other State. 

11 ‘‘(B) COMMUNITY NEWSPAPER.—The term 

12 ‘community newspaper’ means a newspaper 

13 which primarily serves a metropolitan statistical 

14 area, as determined by the Office of Management 

15 and Budget, with a population of not less than 

16 100,000. 

17 ‘‘(C) CONTROL.—A person shall be treated 

18 as controlled by another person if such other per19 son possesses, directly or indirectly, the power to 

20 direct or cause the direction and management of 

21 such person (including the power to elect a ma22 jority of the members of the board of directors of 

23 such person) through the ownership of voting se24 curities. 


kjohnson on DSK79L0C42 with BILLS
66 

•HR 1994 RH

1 ‘‘(5) CONTROLLED GROUP.—For purposes of this 

2 subsection, the term ‘controlled group’ means all per3 sons treated as a single employer under subsection 

4 (b), (c), (m), or (o) of section 414 of the Internal Rev5 enue Code of 1986 as of the date of the enactment of 

6 this subsection. 

7 ‘‘(6) EFFECT ON PREMIUM RATE CALCULA8 TION.—Notwithstanding any other provision of law 

9 or any regulation issued by the Pension Benefit 

10 Guaranty Corporation, in the case of a community 

11 newspaper plan which elects the application of the al12 ternative standards described in paragraph (3), the 

13 additional premium under section 4006(a)(3)(E) 

14 shall be determined as if such election had not been 

15 made.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall apply to plan years ending after December 31, 

18 2017. 

19 SEC. 116. TREATING EXCLUDED DIFFICULTY OF CARE PAY20 MENTS AS COMPENSATION FOR DETER21 MINING RETIREMENT CONTRIBUTION LIMI22 TATIONS. 

23 (a) INDIVIDUAL RETIREMENT ACCOUNTS.— 


kjohnson on DSK79L0C42 with BILLS
67 

•HR 1994 RH

1 (1) IN GENERAL.—Section 408(o) of the Internal 

2 Revenue Code of 1986 is amended by adding at the 

3 end the following new paragraph: 

4 ‘‘(5) SPECIAL RULE FOR DIFFICULTY OF CARE

5 PAYMENTS EXCLUDED FROM GROSS INCOME.—In the 

6 case of an individual who for a taxable year excludes 

7 from gross income under section 131 a qualified foster 

8 care payment which is a difficulty of care payment, 

9 if— 

10 ‘‘(A) the deductible amount in effect for the 

11 taxable year under subsection (b), exceeds 

12 ‘‘(B) the amount of compensation includible 

13 in the individual’s gross income for the taxable 

14 year, 

15 the individual may elect to increase the nondeductible 

16 limit under paragraph (2) for the taxable year by an 

17 amount equal to the lesser of such excess or the 

18 amount so excluded.’’. 

19 (2) EFFECTIVE DATE.—The amendments made 

20 by this subsection shall apply to contributions after 

21 the date of the enactment of this Act. 

22 (b) DEFINED CONTRIBUTION PLANS.— 

23 (1) IN GENERAL.—Section 415(c) of such Code is 

24 amended by adding at the end the following new 

25 paragraph: 


kjohnson on DSK79L0C42 with BILLS
68 

•HR 1994 RH

1 ‘‘(8) SPECIAL RULE FOR DIFFICULTY OF CARE

2 PAYMENTS EXCLUDED FROM GROSS INCOME.— 

3 ‘‘(A) IN GENERAL.—For purposes of para4 graph (1)(B), in the case of an individual who 

5 for a taxable year excludes from gross income 

6 under section 131 a qualified foster care pay7 ment which is a difficulty of care payment, the 

8 participant’s compensation, or earned income, as 

9 the case may be, shall be increased by the 

10 amount so excluded. 

11 ‘‘(B) CONTRIBUTIONS ALLOCABLE TO DIF12 FICULTY OF CARE PAYMENTS TREATED AS

13 AFTER-TAX.—Any contribution by the partici14 pant which is allowable due to such increase— 

15 ‘‘(i) shall be treated for purposes of this 

16 title as investment in the contract, and 

17 ‘‘(ii) shall not cause a plan (and any 

18 arrangement which is part of such plan) to 

19 be treated as failing to meet any require20 ments of this chapter solely by reason of al21 lowing any such contributions.’’. 

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

23 this subsection shall apply to plan years beginning 

24 after December 31, 2015. 


kjohnson on DSK79L0C42 with BILLS
69 

•HR 1994 RH

1 TITLE II—ADMINISTRATIVE 

2 IMPROVEMENTS 

3 SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 

4 MAY BE TREATED AS IN EFFECT AS OF CLOSE 

5 OF YEAR. 

6 (a) IN GENERAL.—Subsection (b) of section 401 of the 

7 Internal Revenue Code of 1986 is amended— 

8 (1) by striking ‘‘RETROACTIVE CHANGES IN

9 PLAN.—A stock bonus’’ and inserting ‘‘PLAN AMEND10 MENTS.— 

11 ‘‘(1) CERTAIN RETROACTIVE CHANGES IN

12 PLAN.—A stock bonus’’; and 

13 (2) by adding at the end the following new para14 graph: 

15 ‘‘(2) ADOPTION OF PLAN.—If an employer adopts 

16 a stock bonus, pension, profit-sharing, or annuity 

17 plan after the close of a taxable year but before the 

18 time prescribed by law for filing the return of the em19 ployer for the taxable year (including extensions 

20 thereof), the employer may elect to treat the plan as 

21 having been adopted as of the last day of the taxable 

22 year.’’. 

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

24 section shall apply to plans adopted for taxable years begin25 ning after December 31, 2019. 


kjohnson on DSK79L0C42 with BILLS
70 

•HR 1994 RH

1 SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF 

2 PLANS. 

3 (a) IN GENERAL.—The Secretary of the Treasury and 

4 the Secretary of Labor shall, in cooperation, modify the re5 turns required under section 6058 of the Internal Revenue 

6 Code of 1986 and the reports required by section 104 of 

7 the Employee Retirement Income Security Act of 1974 (29 

8 U.S.C. 1024) so that all members of a group of plans de9 scribed in subsection (c) may file a single aggregated an10 nual return or report satisfying the requirements of both 

11 such sections. 

12 (b) ADMINISTRATIVE REQUIREMENTS.—In developing 

13 the consolidated return or report under subsection (a), the 

14 Secretary of the Treasury and the Secretary of Labor may 

15 require such return or report to include any information 

16 regarding each plan in the group as such Secretaries deter17 mine is necessary or appropriate for the enforcement and 

18 administration of the Internal Revenue Code of 1986 and 

19 the Employee Retirement Income Security Act of 1974. 

20 (c) PLANS DESCRIBED.—A group of plans is described 

21 in this subsection if all plans in the group— 

22 (1) are individual account plans or defined con23 tribution plans (as defined in section 3(34) of the 

24 Employee Retirement Income Security Act of 1974 

25 (29 U.S.C. 1002(34)) or in section 414(i) of the Inter26 nal Revenue Code of 1986); 


kjohnson on DSK79L0C42 with BILLS
71 

•HR 1994 RH

1 (2) have— 

2 (A) the same trustee (as described in section 

3 403(a) of such Act (29 U.S.C. 1103(a))); 

4 (B) the same one or more named fiduciaries 

5 (as described in section 402(a) of such Act (29 

6 U.S.C. 1102(a))); 

7 (C) the same administrator (as defined in 

8 section 3(16)(A) of such Act (29 U.S.C. 

9 1002(16)(A))) and plan administrator (as de10 fined in section 414(g) of the Internal Revenue 

11 Code of 1986); and 

12 (D) plan years beginning on the same date; 

13 and 

14 (3) provide the same investments or investment 

15 options to participants and beneficiaries. 

16 A plan not subject to title I of the Employee Retirement 

17 Income Security Act of 1974 shall be treated as meeting 

18 the requirements of paragraph (2) as part of a group of 

19 plans if the same person that performs each of the functions 

20 described in such paragraph, as applicable, for all other 

21 plans in such group performs each of such functions for such 

22 plan. 

23 (d) CLARIFICATION RELATING TO ELECTRONIC FILING

24 OF RETURNS FOR DEFERRED COMPENSATION PLANS.— 


kjohnson on DSK79L0C42 with BILLS
72 

•HR 1994 RH

1 (1) IN GENERAL.—Section 6011(e) of the Inter2 nal Revenue Code of 1986 is amended by adding at 

3 the end the following new paragraph: 

4 ‘‘(6) APPLICATION OF NUMERICAL LIMITATION TO

5 RETURNS RELATING TO DEFERRED COMPENSATION

6 PLANS.—For purposes of applying the numerical lim7 itation under paragraph (2)(A) to any return re8 quired under section 6058, information regarding 

9 each plan for which information is provided on such 

10 return shall be treated as a separate return.’’. 

11 (2) EFFECTIVE DATE.—The amendment made by 

12 paragraph (1) shall apply to returns required to be 

13 filed with respect to plan years beginning after De14 cember 31, 2019. 

15 (e) EFFECTIVE DATE.—The modification required by 

16 subsection (a) shall be implemented not later than January 

17 1, 2022, and shall apply to returns and reports for plan 

18 years beginning after December 31, 2021. 

19 SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME. 

20 (a) IN GENERAL.—Subparagraph (B) of section 

21 105(a)(2) of the Employee Retirement Income Security Act 

22 of 1974 (29 U.S.C. 1025(a)(2)) is amended— 

23 (1) in clause (i), by striking ‘‘and’’ at the end; 

24 (2) in clause (ii), by striking ‘‘diversification.’’ 

25 and inserting ‘‘diversification, and’’; and 


kjohnson on DSK79L0C42 with BILLS
73 

•HR 1994 RH

1 (3) by inserting at the end the following: 

2 ‘‘(iii) the lifetime income disclosure de3 scribed in subparagraph (D)(i). 

4 In the case of pension benefit statements de5 scribed in clause (i) of paragraph (1)(A), a life6 time income disclosure under clause (iii) of this 

7 subparagraph shall be required to be included in 

8 only one pension benefit statement during any 

9 one 12-month period.’’. 

10 (b) LIFETIME INCOME.—Paragraph (2) of section 

11 105(a) of the Employee Retirement Income Security Act of 

12 1974 (29 U.S.C. 1025(a)) is amended by adding at the end 

13 the following new subparagraph: 

14 ‘‘(D) LIFETIME INCOME DISCLOSURE.— 

15 ‘‘(i) IN GENERAL.— 

16 ‘‘(I) DISCLOSURE.—A lifetime in17 come disclosure shall set forth the life18 time income stream equivalent of the 

19 total benefits accrued with respect to 

20 the participant or beneficiary. 

21 ‘‘(II) LIFETIME INCOME STREAM

22 EQUIVALENT OF THE TOTAL BENEFITS

23 ACCRUED.—For purposes of this sub24 paragraph, the term ‘lifetime income 

25 stream equivalent of the total benefits 


kjohnson on DSK79L0C42 with BILLS
74 

•HR 1994 RH

1 accrued’ means the amount of monthly 

2 payments the participant or bene3 ficiary would receive if the total ac4 crued benefits of such participant or 

5 beneficiary were used to provide life6 time income streams described in sub7 clause (III), based on assumptions 

8 specified in rules prescribed by the Sec9 retary. 

10 ‘‘(III) LIFETIME INCOME

11 STREAMS.—The lifetime income 

12 streams described in this subclause are 

13 a qualified joint and survivor annuity 

14 (as defined in section 205(d)), based on 

15 assumptions specified in rules pre16 scribed by the Secretary, including the 

17 assumption that the participant or 

18 beneficiary has a spouse of equal age, 

19 and a single life annuity. Such lifetime 

20 income streams may have a term cer21 tain or other features to the extent per22 mitted under rules prescribed by the 

23 Secretary. 

24 ‘‘(ii) MODEL DISCLOSURE.—Not later 

25 than 1 year after the date of the enactment 


kjohnson on DSK79L0C42 with BILLS
75 

•HR 1994 RH

1 of the Setting Every Community Up for Re2 tirement Enhancement Act of 2019, the Sec3 retary shall issue a model lifetime income 

4 disclosure, written in a manner so as to be 

5 understood by the average plan participant, 

6 which— 

7 ‘‘(I) explains that the lifetime in8 come stream equivalent is only pro9 vided as an illustration; 

10 ‘‘(II) explains that the actual 

11 payments under the lifetime income 

12 stream described in clause (i)(III) 

13 which may be purchased with the total 

14 benefits accrued will depend on numer15 ous factors and may vary substantially 

16 from the lifetime income stream equiv17 alent in the disclosures; 

18 ‘‘(III) explains the assumptions 

19 upon which the lifetime income stream 

20 equivalent was determined; and 

21 ‘‘(IV) provides such other similar 

22 explanations as the Secretary considers 

23 appropriate. 

24 ‘‘(iii) ASSUMPTIONS AND RULES.—Not 

25 later than 1 year after the date of the enactVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
76 

•HR 1994 RH

1 ment of the Setting Every Community Up 

2 for Retirement Enhancement Act of 2019, 

3 the Secretary shall— 

4 ‘‘(I) prescribe assumptions which 

5 administrators of individual account 

6 plans may use in converting total ac7 crued benefits into lifetime income 

8 stream equivalents for purposes of this 

9 subparagraph; and 

10 ‘‘(II) issue interim final rules 

11 under clause (i). 

12 In prescribing assumptions under subclause 

13 (I), the Secretary may prescribe a single set 

14 of specific assumptions (in which case the 

15 Secretary may issue tables or factors which 

16 facilitate such conversions), or ranges of 

17 permissible assumptions. To the extent that 

18 an accrued benefit is or may be invested in 

19 a lifetime income stream described in clause 

20 (i)(III), the assumptions prescribed under 

21 subclause (I) shall, to the extent appro22 priate, permit administrators of individual 

23 account plans to use the amounts payable 

24 under such lifetime income stream as a life25 time income stream equivalent. 


kjohnson on DSK79L0C42 with BILLS
77 

•HR 1994 RH

1 ‘‘(iv) LIMITATION ON LIABILITY.—No 

2 plan fiduciary, plan sponsor, or other per3 son shall have any liability under this title 

4 solely by reason of the provision of lifetime 

5 income stream equivalents which are de6 rived in accordance with the assumptions 

7 and rules described in clause (iii) and 

8 which include the explanations contained in 

9 the model lifetime income disclosure de10 scribed in clause (ii). This clause shall 

11 apply without regard to whether the provi12 sion of such lifetime income stream equiva13 lent is required by subparagraph (B)(iii). 

14 ‘‘(v) EFFECTIVE DATE.—The require15 ment in subparagraph (B)(iii) shall apply 

16 to pension benefit statements furnished more 

17 than 12 months after the latest of the 

18 issuance by the Secretary of— 

19 ‘‘(I) interim final rules under 

20 clause (i); 

21 ‘‘(II) the model disclosure under 

22 clause (ii); or 

23 ‘‘(III) the assumptions under 

24 clause (iii).’’. 


kjohnson on DSK79L0C42 with BILLS
78 

•HR 1994 RH

1 SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 

2 LIFETIME INCOME PROVIDER. 

3 Section 404 of the Employee Retirement Income Secu4 rity Act of 1974 (29 U.S.C. 1104) is amended by adding 

5 at the end the following: 

6 ‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 

7 ‘‘(1) IN GENERAL.—With respect to the selection 

8 of an insurer for a guaranteed retirement income con9 tract, the requirements of subsection (a)(1)(B) will be 

10 deemed to be satisfied if a fiduciary— 

11 ‘‘(A) engages in an objective, thorough, and 

12 analytical search for the purpose of identifying 

13 insurers from which to purchase such contracts; 

14 ‘‘(B) with respect to each insurer identified 

15 under subparagraph (A)— 

16 ‘‘(i) considers the financial capability 

17 of such insurer to satisfy its obligations 

18 under the guaranteed retirement income 

19 contract; and 

20 ‘‘(ii) considers the cost (including fees 

21 and commissions) of the guaranteed retire22 ment income contract offered by the insurer 

23 in relation to the benefits and product fea24 tures of the contract and administrative 

25 services to be provided under such contract; 

26 and 


kjohnson on DSK79L0C42 with BILLS
79 

•HR 1994 RH

1 ‘‘(C) on the basis of such consideration, con2 cludes that— 

3 ‘‘(i) at the time of the selection, the in4 surer is financially capable of satisfying its 

5 obligations under the guaranteed retirement 

6 income contract; and 

7 ‘‘(ii) the relative cost of the selected 

8 guaranteed retirement income contract as 

9 described in subparagraph (B)(ii) is reason10 able. 

11 ‘‘(2) FINANCIAL CAPABILITY OF THE INSURER.— 

12 A fiduciary will be deemed to satisfy the requirements 

13 of paragraphs (1)(B)(i) and (1)(C)(i) if— 

14 ‘‘(A) the fiduciary obtains written represen15 tations from the insurer that— 

16 ‘‘(i) the insurer is licensed to offer 

17 guaranteed retirement income contracts; 

18 ‘‘(ii) the insurer, at the time of selec19 tion and for each of the immediately pre20 ceding 7 plan years— 

21 ‘‘(I) operates under a certificate of 

22 authority from the insurance commis23 sioner of its domiciliary State which 

24 has not been revoked or suspended; 


kjohnson on DSK79L0C42 with BILLS
80 

•HR 1994 RH

1 ‘‘(II) has filed audited financial 

2 statements in accordance with the laws 

3 of its domiciliary State under applica4 ble statutory accounting principles; 

5 ‘‘(III) maintains (and has main6 tained) reserves which satisfies all the 

7 statutory requirements of all States 

8 where the insurer does business; and 

9 ‘‘(IV) is not operating under an 

10 order of supervision, rehabilitation, or 

11 liquidation; 

12 ‘‘(iii) the insurer undergoes, at least 

13 every 5 years, a financial examination 

14 (within the meaning of the law of its domi15 ciliary State) by the insurance commis16 sioner of the domiciliary State (or rep17 resentative, designee, or other party ap18 proved by such commissioner); and 

19 ‘‘(iv) the insurer will notify the fidu20 ciary of any change in circumstances occur21 ring after the provision of the representa22 tions in clauses (i), (ii), and (iii) which 

23 would preclude the insurer from making 

24 such representations at the time of issuance 


kjohnson on DSK79L0C42 with BILLS
81 

•HR 1994 RH

1 of the guaranteed retirement income con2 tract; and 

3 ‘‘(B) after receiving such representations 

4 and as of the time of selection, the fiduciary has 

5 not received any notice described in subpara6 graph (A)(iv) and is in possession of no other in7 formation which would cause the fiduciary to 

8 question the representations provided. 

9 ‘‘(3) NO REQUIREMENT TO SELECT LOWEST

10 COST.—Nothing in this subsection shall be construed 

11 to require a fiduciary to select the lowest cost con12 tract. A fiduciary may consider the value of a con13 tract, including features and benefits of the contract 

14 and attributes of the insurer (including, without limi15 tation, the insurer’s financial strength) in conjunc16 tion with the cost of the contract. 

17 ‘‘(4) TIME OF SELECTION.— 

18 ‘‘(A) IN GENERAL.—For purposes of this 

19 subsection, the time of selection is— 

20 ‘‘(i) the time that the insurer and the 

21 contract are selected for distribution of ben22 efits to a specific participant or beneficiary; 

23 or 

24 ‘‘(ii) if the fiduciary periodically re25 views the continuing appropriateness of the 


kjohnson on DSK79L0C42 with BILLS
82 

•HR 1994 RH

1 conclusion described in paragraph (1)(C) 

2 with respect to a selected insurer, taking 

3 into account the considerations described in 

4 such paragraph, the time that the insurer 

5 and the contract are selected to provide ben6 efits at future dates to participants or bene7 ficiaries under the plan. 

8 Nothing in the preceding sentence shall be con9 strued to require the fiduciary to review the ap10 propriateness of a selection after the purchase of 

11 a contract for a participant or beneficiary. 

12 ‘‘(B) PERIODIC REVIEW.—A fiduciary will 

13 be deemed to have conducted the periodic review 

14 described in subparagraph (A)(ii) if the fidu15 ciary obtains the written representations de16 scribed in clauses (i), (ii), and (iii) of paragraph 

17 (2)(A) from the insurer on an annual basis, un18 less the fiduciary receives any notice described in 

19 paragraph (2)(A)(iv) or otherwise becomes aware 

20 of facts that would cause the fiduciary to ques21 tion such representations. 

22 ‘‘(5) LIMITED LIABILITY.—A fiduciary which 

23 satisfies the requirements of this subsection shall not 

24 be liable following the distribution of any benefit, or 

25 the investment by or on behalf of a participant or 


kjohnson on DSK79L0C42 with BILLS
83 

•HR 1994 RH

1 beneficiary pursuant to the selected guaranteed retire2 ment income contract, for any losses that may result 

3 to the participant or beneficiary due to an insurer’s 

4 inability to satisfy its financial obligations under the 

5 terms of such contract. 

6 ‘‘(6) DEFINITIONS.—For purposes of this sub7 section— 

8 ‘‘(A) INSURER.—The term ‘insurer’ means 

9 an insurance company, insurance service, or in10 surance organization, including affiliates of such 

11 companies. 

12 ‘‘(B) GUARANTEED RETIREMENT INCOME

13 CONTRACT.—The term ‘guaranteed retirement in14 come contract’ means an annuity contract for a 

15 fixed term or a contract (or provision or feature 

16 thereof) which provides guaranteed benefits an17 nually (or more frequently) for at least the re18 mainder of the life of the participant or the joint 

19 lives of the participant and the participant’s 

20 designated beneficiary as part of an individual 

21 account plan.’’. 


kjohnson on DSK79L0C42 with BILLS
84 

•HR 1994 RH

1 SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 

2 TO PROTECT OLDER, LONGER SERVICE PAR3 TICIPANTS. 

4 (a) IN GENERAL.—Section 401 of the Internal Revenue 

5 Code of 1986 is amended— 

6 (1) by redesignating subsection (o) as subsection 

7 (p); and 

8 (2) by inserting after subsection (n) the following 

9 new subsection: 

10 ‘‘(o) SPECIAL RULES FOR APPLYING NONDISCRIMINA11 TION RULES TO PROTECT OLDER, LONGER SERVICE AND

12 GRANDFATHERED PARTICIPANTS .— 

13 ‘‘(1) TESTING OF DEFINED BENEFIT PLANS WITH

14 CLOSED CLASSES OF PARTICIPANTS.— 

15 ‘‘(A) BENEFITS, RIGHTS, OR FEATURES

16 PROVIDED TO CLOSED CLASSES.—A defined ben17 efit plan which provides benefits, rights, or fea18 tures to a closed class of participants shall not 

19 fail to satisfy the requirements of subsection 

20 (a)(4) by reason of the composition of such closed 

21 class or the benefits, rights, or features provided 

22 to such closed class, if— 

23 ‘‘(i) for the plan year as of which the 

24 class closes and the 2 succeeding plan years, 

25 such benefits, rights, and features satisfy the 

26 requirements of subsection (a)(4) (without 


kjohnson on DSK79L0C42 with BILLS
85 

•HR 1994 RH

1 regard to this subparagraph but taking into 

2 account the rules of subparagraph (I)), 

3 ‘‘(ii) after the date as of which the 

4 class was closed, any plan amendment 

5 which modifies the closed class or the bene6 fits, rights, and features provided to such 

7 closed class does not discriminate signifi8 cantly in favor of highly compensated em9 ployees, and 

10 ‘‘(iii) the class was closed before April 

11 5, 2017, or the plan is described in sub12 paragraph (C). 

13 ‘‘(B) AGGREGATE TESTING WITH DEFINED

14 CONTRIBUTION PLANS PERMITTED ON A BENE15 FITS BASIS.— 

16 ‘‘(i) IN GENERAL.—For purposes of de17 termining compliance with subsection (a)(4) 

18 and section 410(b), a defined benefit plan 

19 described in clause (iii) may be aggregated 

20 and tested on a benefits basis with 1 or 

21 more defined contribution plans, including 

22 with the portion of 1 or more defined con23 tribution plans which— 


kjohnson on DSK79L0C42 with BILLS
86 

•HR 1994 RH

1 ‘‘(I) provides matching contribu2 tions (as defined in subsection 

3 (m)(4)(A)), 

4 ‘‘(II) provides annuity contracts 

5 described in section 403(b) which are 

6 purchased with matching contributions 

7 or nonelective contributions, or 

8 ‘‘(III) consists of an employee 

9 stock ownership plan (within the 

10 meaning of section 4975(e)(7)) or a tax 

11 credit employee stock ownership plan 

12 (within the meaning of section 409(a)). 

13 ‘‘(ii) SPECIAL RULES FOR MATCHING

14 CONTRIBUTIONS.—For purposes of clause 

15 (i), if a defined benefit plan is aggregated 

16 with a portion of a defined contribution 

17 plan providing matching contributions— 

18 ‘‘(I) such defined benefit plan 

19 must also be aggregated with any por20 tion of such defined contribution plan 

21 which provides elective deferrals de22 scribed in subparagraph (A) or (C) of 

23 section 402(g)(3), and 

24 ‘‘(II) such matching contributions 

25 shall be treated in the same manner as 


kjohnson on DSK79L0C42 with BILLS
87 

•HR 1994 RH

1 nonelective contributions, including for 

2 purposes of applying the rules of sub3 section (l). 

4 ‘‘(iii) PLANS DESCRIBED.—A defined 

5 benefit plan is described in this clause if— 

6 ‘‘(I) the plan provides benefits to 

7 a closed class of participants, 

8 ‘‘(II) for the plan year as of which 

9 the class closes and the 2 succeeding 

10 plan years, the plan satisfies the re11 quirements of section 410(b) and sub12 section (a)(4) (without regard to this 

13 subparagraph but taking into account 

14 the rules of subparagraph (I)), 

15 ‘‘(III) after the date as of which 

16 the class was closed, any plan amend17 ment which modifies the closed class or 

18 the benefits provided to such closed 

19 class does not discriminate signifi20 cantly in favor of highly compensated 

21 employees, and 

22 ‘‘(IV) the class was closed before 

23 April 5, 2017, or the plan is described 

24 in subparagraph (C). 


kjohnson on DSK79L0C42 with BILLS
88 

•HR 1994 RH

1 ‘‘(C) PLANS DESCRIBED.—A plan is de2 scribed in this subparagraph if, taking into ac3 count any predecessor plan— 

4 ‘‘(i) such plan has been in effect for at 

5 least 5 years as of the date the class is 

6 closed, and 

7 ‘‘(ii) during the 5-year period pre8 ceding the date the class is closed, there has 

9 not been a substantial increase in the cov10 erage or value of the benefits, rights, or fea11 tures described in subparagraph (A) or in 

12 the coverage or benefits under the plan de13 scribed in subparagraph (B)(iii) (whichever 

14 is applicable). 

15 ‘‘(D) DETERMINATION OF SUBSTANTIAL IN16 CREASE FOR BENEFITS, RIGHTS, AND FEA17 TURES.—In applying subparagraph (C)(ii) for 

18 purposes of subparagraph (A)(iii), a plan shall 

19 be treated as having had a substantial increase 

20 in coverage or value of the benefits, rights, or fea21 tures described in subparagraph (A) during the 

22 applicable 5-year period only if, during such pe23 riod— 

24 ‘‘(i) the number of participants covered 

25 by such benefits, rights, or features on the 


kjohnson on DSK79L0C42 with BILLS
89 

•HR 1994 RH

1 date such period ends is more than 50 per2 cent greater than the number of such par3 ticipants on the first day of the plan year 

4 in which such period began, or 

5 ‘‘(ii) such benefits, rights, and features 

6 have been modified by 1 or more plan 

7 amendments in such a way that, as of the 

8 date the class is closed, the value of such 

9 benefits, rights, and features to the closed 

10 class as a whole is substantially greater 

11 than the value as of the first day of such 5- 

12 year period, solely as a result of such 

13 amendments. 

14 ‘‘(E) DETERMINATION OF SUBSTANTIAL IN15 CREASE FOR AGGREGATE TESTING ON BENEFITS

16 BASIS.—In applying subparagraph (C)(ii) for 

17 purposes of subparagraph (B)(iii)(IV), a plan 

18 shall be treated as having had a substantial in19 crease in coverage or benefits during the applica20 ble 5-year period only if, during such period— 

21 ‘‘(i) the number of participants benefit22 ting under the plan on the date such period 

23 ends is more than 50 percent greater than 

24 the number of such participants on the first 


kjohnson on DSK79L0C42 with BILLS
90 

•HR 1994 RH

1 day of the plan year in which such period 

2 began, or 

3 ‘‘(ii) the average benefit provided to 

4 such participants on the date such period 

5 ends is more than 50 percent greater than 

6 the average benefit provided on the first day 

7 of the plan year in which such period 

8 began. 

9 ‘‘(F) CERTAIN EMPLOYEES DIS10 REGARDED.—For purposes of subparagraphs (D) 

11 and (E), any increase in coverage or value or in 

12 coverage or benefits, whichever is applicable, 

13 which is attributable to such coverage and value 

14 or coverage and benefits provided to employees— 

15 ‘‘(i) who became participants as a re16 sult of a merger, acquisition, or similar 

17 event which occurred during the 7-year pe18 riod preceding the date the class is closed, or 

19 ‘‘(ii) who became participants by rea20 son of a merger of the plan with another 

21 plan which had been in effect for at least 5 

22 years as of the date of the merger, 

23 shall be disregarded, except that clause (ii) shall 

24 apply for purposes of subparagraph (D) only if, 

25 under the merger, the benefits, rights, or features 


kjohnson on DSK79L0C42 with BILLS
91 

•HR 1994 RH

1 under 1 plan are conformed to the benefits, 

2 rights, or features of the other plan prospectively. 

3 ‘‘(G) RULES RELATING TO AVERAGE BEN4 EFIT.—For purposes of subparagraph (E)— 

5 ‘‘(i) the average benefit provided to 

6 participants under the plan will be treated 

7 as having remained the same between the 2 

8 dates described in subparagraph (E)(ii) if 

9 the benefit formula applicable to such par10 ticipants has not changed between such 

11 dates, and 

12 ‘‘(ii) if the benefit formula applicable 

13 to 1 or more participants under the plan 

14 has changed between such 2 dates, then the 

15 average benefit under the plan shall be con16 sidered to have increased by more than 50 

17 percent only if— 

18 ‘‘(I) the total amount determined 

19 under section 430(b)(1)(A)(i) for all 

20 participants benefitting under the plan 

21 for the plan year in which the 5-year 

22 period described in subparagraph (E) 

23 ends, exceeds 

24 ‘‘(II) the total amount determined 

25 under section 430(b)(1)(A)(i) for all 


kjohnson on DSK79L0C42 with BILLS
92 

•HR 1994 RH

1 such participants for such plan year, 

2 by using the benefit formula in effect 

3 for each such participant for the first 

4 plan year in such 5-year period, 

5 by more than 50 percent. In the case of a 

6 CSEC plan (as defined in section 414(y)), 

7 the normal cost of the plan (as determined 

8 under section 433(j)(1)(B)) shall be used in 

9 lieu of the amount determined under section 

10 430(b)(1)(A)(i). 

11 ‘‘(H) TREATMENT AS SINGLE PLAN.—For 

12 purposes of subparagraphs (E) and (G), a plan 

13 described in section 413(c) shall be treated as a 

14 single plan rather than as separate plans main15 tained by each employer in the plan. 

16 ‘‘(I) SPECIAL RULES.—For purposes of sub17 paragraphs (A)(i) and (B)(iii)(II), the following 

18 rules shall apply: 

19 ‘‘(i) In applying section 410(b)(6)(C), 

20 the closing of the class of participants shall 

21 not be treated as a significant change in 

22 coverage under section 410(b)(6)(C)(i)(II). 

23 ‘‘(ii) 2 or more plans shall not fail to 

24 be eligible to be aggregated and treated as 


kjohnson on DSK79L0C42 with BILLS
93 

•HR 1994 RH

1 a single plan solely by reason of having dif2 ferent plan years. 

3 ‘‘(iii) Changes in the employee popu4 lation shall be disregarded to the extent at5 tributable to individuals who become em6 ployees or cease to be employees, after the 

7 date the class is closed, by reason of a merg8 er, acquisition, divestiture, or similar event. 

9 ‘‘(iv) Aggregation and all other testing 

10 methodologies otherwise applicable under 

11 subsection (a)(4) and section 410(b) may be 

12 taken into account. 

13 The rule of clause (ii) shall also apply for pur14 poses of determining whether plans to which sub15 paragraph (B)(i) applies may be aggregated and 

16 treated as 1 plan for purposes of determining 

17 whether such plans meet the requirements of sub18 section (a)(4) and section 410(b). 

19 ‘‘(J) SPUN-OFF PLANS.—For purposes of 

20 this paragraph, if a portion of a defined benefit 

21 plan described in subparagraph (A) or (B)(iii) 

22 is spun off to another employer and the spun-off 

23 plan continues to satisfy the requirements of— 

24 ‘‘(i) subparagraph (A)(i) or 

25 (B)(iii)(II), whichever is applicable, if the 


kjohnson on DSK79L0C42 with BILLS
94 

•HR 1994 RH

1 original plan was still within the 3-year pe2 riod described in such subparagraph at the 

3 time of the spin off, and 

4 ‘‘(ii) subparagraph (A)(ii) or 

5 (B)(iii)(III), whichever is applicable, 

6 the treatment under subparagraph (A) or (B) of 

7 the spun-off plan shall continue with respect to 

8 such other employer. 

9 ‘‘(2) TESTING OF DEFINED CONTRIBUTION

10 PLANS.— 

11 ‘‘(A) TESTING ON A BENEFITS BASIS.—A 

12 defined contribution plan shall be permitted to 

13 be tested on a benefits basis if— 

14 ‘‘(i) such defined contribution plan 

15 provides make-whole contributions to a 

16 closed class of participants whose accruals 

17 under a defined benefit plan have been re18 duced or eliminated, 

19 ‘‘(ii) for the plan year of the defined 

20 contribution plan as of which the class eli21 gible to receive such make-whole contribu22 tions closes and the 2 succeeding plan years, 

23 such closed class of participants satisfies the 

24 requirements of section 410(b)(2)(A)(i) (deVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
95 

•HR 1994 RH

1 termined by applying the rules of para2 graph (1)(I)), 

3 ‘‘(iii) after the date as of which the 

4 class was closed, any plan amendment to 

5 the defined contribution plan which modi6 fies the closed class or the allocations, bene7 fits, rights, and features provided to such 

8 closed class does not discriminate signifi9 cantly in favor of highly compensated em10 ployees, and 

11 ‘‘(iv) the class was closed before April 

12 5, 2017, or the defined benefit plan under 

13 clause (i) is described in paragraph (1)(C) 

14 (as applied for purposes of paragraph 

15 (1)(B)(iii)(IV)). 

16 ‘‘(B) AGGREGATION WITH PLANS INCLUDING

17 MATCHING CONTRIBUTIONS.— 

18 ‘‘(i) IN GENERAL.—With respect to 1 

19 or more defined contribution plans de20 scribed in subparagraph (A), for purposes of 

21 determining compliance with subsection 

22 (a)(4) and section 410(b), the portion of 

23 such plans which provides make-whole con24 tributions or other nonelective contributions 

25 may be aggregated and tested on a benefits 


kjohnson on DSK79L0C42 with BILLS
96 

•HR 1994 RH

1 basis with the portion of 1 or more other de2 fined contribution plans which— 

3 ‘‘(I) provides matching contribu4 tions (as defined in subsection 

5 (m)(4)(A)), 

6 ‘‘(II) provides annuity contracts 

7 described in section 403(b) which are 

8 purchased with matching contributions 

9 or nonelective contributions, or 

10 ‘‘(III) consists of an employee 

11 stock ownership plan (within the 

12 meaning of section 4975(e)(7)) or a tax 

13 credit employee stock ownership plan 

14 (within the meaning of section 409(a)). 

15 ‘‘(ii) SPECIAL RULES FOR MATCHING

16 CONTRIBUTIONS.—Rules similar to the rules 

17 of paragraph (1)(B)(ii) shall apply for pur18 poses of clause (i). 

19 ‘‘(C) SPECIAL RULES FOR TESTING DE20 FINED CONTRIBUTION PLAN FEATURES PRO21 VIDING MATCHING CONTRIBUTIONS TO CERTAIN

22 OLDER, LONGER SERVICE PARTICIPANTS.—In the 

23 case of a defined contribution plan which pro24 vides benefits, rights, or features to a closed class 

25 of participants whose accruals under a defined 


kjohnson on DSK79L0C42 with BILLS
97 

•HR 1994 RH

1 benefit plan have been reduced or eliminated, the 

2 plan shall not fail to satisfy the requirements of 

3 subsection (a)(4) solely by reason of the composi4 tion of the closed class or the benefits, rights, or 

5 features provided to such closed class if the de6 fined contribution plan and defined benefit plan 

7 otherwise meet the requirements of subparagraph 

8 (A) but for the fact that the make-whole con9 tributions under the defined contribution plan 

10 are made in whole or in part through matching 

11 contributions. 

12 ‘‘(D) SPUN-OFF PLANS.—For purposes of 

13 this paragraph, if a portion of a defined con14 tribution plan described in subparagraph (A) or 

15 (C) is spun off to another employer, the treat16 ment under subparagraph (A) or (C) of the 

17 spun-off plan shall continue with respect to the 

18 other employer if such plan continues to comply 

19 with the requirements of clauses (ii) (if the origi20 nal plan was still within the 3-year period de21 scribed in such clause at the time of the spin off) 

22 and (iii) of subparagraph (A), as determined for 

23 purposes of subparagraph (A) or (C), whichever 

24 is applicable. 


kjohnson on DSK79L0C42 with BILLS
98 

•HR 1994 RH

1 ‘‘(3) DEFINITIONS AND SPECIAL RULE.—For 

2 purposes of this subsection— 

3 ‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex4 cept as otherwise provided in paragraph (2)(C), 

5 the term ‘make-whole contributions’ means non6 elective allocations for each employee in the class 

7 which are reasonably calculated, in a consistent 

8 manner, to replace some or all of the retirement 

9 benefits which the employee would have received 

10 under the defined benefit plan and any other 

11 plan or qualified cash or deferred arrangement 

12 under subsection (k)(2) if no change had been 

13 made to such defined benefit plan and such other 

14 plan or arrangement. For purposes of the pre15 ceding sentence, consistency shall not be required 

16 with respect to employees who were subject to dif17 ferent benefit formulas under the defined benefit 

18 plan. 

19 ‘‘(B) REFERENCES TO CLOSED CLASS OF

20 PARTICIPANTS.—References to a closed class of 

21 participants and similar references to a closed 

22 class shall include arrangements under which 1 

23 or more classes of participants are closed, except 

24 that 1 or more classes of participants closed on 

25 different dates shall not be aggregated for purVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
99 

•HR 1994 RH

1 poses of determining the date any such class was 

2 closed. 

3 ‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 

4 The term ‘highly compensated employee’ has the 

5 meaning given such term in section 414(q).’’. 

6 (b) PARTICIPATION REQUIREMENTS.—Paragraph (26) 

7 of section 401(a) of the Internal Revenue Code of 1986 is 

8 amended by adding at the end the following new subpara9 graph: 

10 ‘‘(I) PROTECTED PARTICIPANTS.— 

11 ‘‘(i) IN GENERAL.—A plan shall be 

12 deemed to satisfy the requirements of sub13 paragraph (A) if— 

14 ‘‘(I) the plan is amended— 

15 ‘‘(aa) to cease all benefit ac16 cruals, or 

17 ‘‘(bb) to provide future ben18 efit accruals only to a closed class 

19 of participants, 

20 ‘‘(II) the plan satisfies subpara21 graph (A) (without regard to this sub22 paragraph) as of the effective date of 

23 the amendment, and 


kjohnson on DSK79L0C42 with BILLS
100 

•HR 1994 RH

1 ‘‘(III) the amendment was adopt2 ed before April 5, 2017, or the plan is 

3 described in clause (ii). 

4 ‘‘(ii) PLANS DESCRIBED.—A plan is 

5 described in this clause if the plan would be 

6 described in subsection (o)(1)(C), as applied 

7 for purposes of subsection (o)(1)(B)(iii)(IV) 

8 and by treating the effective date of the 

9 amendment as the date the class was closed 

10 for purposes of subsection (o)(1)(C). 

11 ‘‘(iii) SPECIAL RULES.—For purposes 

12 of clause (i)(II), in applying section 

13 410(b)(6)(C), the amendments described in 

14 clause (i) shall not be treated as a signifi15 cant change in coverage under section 

16 410(b)(6)(C)(i)(II). 

17 ‘‘(iv) SPUN-OFF PLANS.—For purposes 

18 of this subparagraph, if a portion of a plan 

19 described in clause (i) is spun off to another 

20 employer, the treatment under clause (i) of 

21 the spun-off plan shall continue with respect 

22 to the other employer.’’. 

23 (c) EFFECTIVE DATE.— 

24 (1) IN GENERAL.—Except as provided in para25 graph (2), the amendments made by this section shall 


kjohnson on DSK79L0C42 with BILLS
101 

•HR 1994 RH

1 take effect on the date of the enactment of this Act, 

2 without regard to whether any plan modifications re3 ferred to in such amendments are adopted or effective 

4 before, on, or after such date of enactment. 

5 (2) SPECIAL RULES.— 

6 (A) ELECTION OF EARLIER APPLICATION.— 

7 At the election of the plan sponsor, the amend8 ments made by this section shall apply to plan 

9 years beginning after December 31, 2013. 

10 (B) CLOSED CLASSES OF PARTICIPANTS.— 

11 For purposes of paragraphs (1)(A)(iii), 

12 (1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 

13 of the Internal Revenue Code of 1986 (as added 

14 by this section), a closed class of participants 

15 shall be treated as being closed before April 5, 

16 2017, if the plan sponsor’s intention to create 

17 such closed class is reflected in formal written 

18 documents and communicated to participants be19 fore such date. 

20 (C) CERTAIN POST-ENACTMENT PLAN

21 AMENDMENTS.—A plan shall not be treated as 

22 failing to be eligible for the application of section 

23 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 

24 such Code (as added by this section) to such plan 

25 solely because in the case of— 


kjohnson on DSK79L0C42 with BILLS
102 

•HR 1994 RH

1 (i) such section 401(o)(1)(A), the plan 

2 was amended before the date of the enact3 ment of this Act to eliminate 1 or more ben4 efits, rights, or features, and is further 

5 amended after such date of enactment to 

6 provide such previously eliminated benefits, 

7 rights, or features to a closed class of par8 ticipants, or 

9 (ii) such section 401(o)(1)(B)(iii) or 

10 section 401(a)(26), the plan was amended 

11 before the date of the enactment of this Act 

12 to cease all benefit accruals, and is further 

13 amended after such date of enactment to 

14 provide benefit accruals to a closed class of 

15 participants. 

16 Any such section shall only apply if the plan 

17 otherwise meets the requirements of such section 

18 and in applying such section, the date the class 

19 of participants is closed shall be the effective date 

20 of the later amendment. 

21 SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC 

22 PLANS. 

23 (a) FLAT RATE PREMIUM.—Subparagraph (A) of sec24 tion 4006(a)(3) of the Employee Retirement Income Secu25 rity Act of 1974 (29 U.S.C. 1306(a)(3)) is amended— 


kjohnson on DSK79L0C42 with BILLS
103 

•HR 1994 RH

1 (1) in clause (i), by striking ‘‘plan,’’ and insert2 ing ‘‘plan other than a CSEC plan (as defined in sec3 tion 210(f)(1))’’; 

4 (2) in clause (v), by striking ‘‘or’’ at the end; 

5 (3) in clause (vi), by striking the period at the 

6 end and inserting ‘‘, or’’; and 

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

8 clause: 

9 ‘‘(vii) in the case of a CSEC plan (as 

10 defined in section 210(f)(1)), for plan years 

11 beginning after December 31, 2018, for each 

12 individual who is a participant in such 

13 plan during the plan year an amount equal 

14 to the sum of— 

15 ‘‘(I) the additional premium (if 

16 any) determined under subparagraph 

17 (E), and 

18 ‘‘(II) $19.’’. 

19 (b) VARIABLE RATE PREMIUM.— 

20 (1) UNFUNDED VESTED BENEFITS.— 

21 (A) IN GENERAL.—Subparagraph (E) of 

22 section 4006(a)(3) of the Employee Retirement 

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

24 1306(a)(3)) is amended by adding at the end the 

25 following new clause: 


kjohnson on DSK79L0C42 with BILLS
104 

•HR 1994 RH

1 ‘‘(v) For purposes of clause (ii), in the case 

2 of a CSEC plan (as defined in section 210(f)(1)), 

3 the term ‘unfunded vested benefits’ means, for 

4 plan years beginning after December 31, 2018, 

5 the excess (if any) of— 

6 ‘‘(I) the funding liability of the plan as 

7 determined under section 306(j)(5)(C) for 

8 the plan year by only taking into account 

9 vested benefits, over 

10 ‘‘(II) the fair market value of plan as11 sets for the plan year which are held by the 

12 plan on the valuation date.’’. 

13 (B) CONFORMING AMENDMENT.—Clause 

14 (iii) of section 4006(a)(3)(E) of such Act (29 

15 U.S.C. 1306(a)(3)(E)) is amended by striking 

16 ‘‘For purposes’’ and inserting ‘‘Except as pro17 vided in clause (v), for purposes’’. 

18 (2) APPLICABLE DOLLAR AMOUNT.— 

19 (A) IN GENERAL.—Paragraph (8) of section 

20 4006(a) of such Act (29 U.S.C. 1306(a)) is 

21 amended by adding at the end the following new 

22 subparagraph: 

23 ‘‘(E) CSEC PLANS.—In the case of a CSEC 

24 plan (as defined in section 210(f)(1)), the appli25 cable dollar amount shall be $9.’’. 


kjohnson on DSK79L0C42 with BILLS
105 

•HR 1994 RH

1 (B) CONFORMING AMENDMENT.—Subpara2 graph (A) of section 4006(a)(8) of such Act (29 

3 U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 

4 and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 

5 TITLE III—OTHER BENEFITS 

6 SEC. 301. BENEFITS PROVIDED TO VOLUNTEER FIRE7 FIGHTERS AND EMERGENCY MEDICAL RE8 SPONDERS. 

9 (a) INCREASE IN DOLLAR LIMITATION ON QUALIFIED

10 PAYMENTS.—Subparagraph (B) of section 139B(c)(2) of the 

11 Internal Revenue Code of 1986 is amended by striking 

12 ‘‘$30’’ and inserting ‘‘$50’’. 

13 (b) EXTENSION.—Section 139B(d) of the Internal Rev14 enue Code of 1986 is amended by striking ‘‘beginning after 

15 December 31, 2010.’’ and inserting ‘‘beginning— 

16 ‘‘(1) after December 31, 2010, and before Janu17 ary 1, 2020, or 

18 ‘‘(2) after December 31, 2020.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by this 

20 section shall apply to taxable years beginning after Decem21 ber 31, 2019. 

22 SEC. 302. EXPANSION OF SECTION 529 PLANS. 

23 (a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSOCI24 ATED WITH REGISTERED APPRENTICESHIP PROGRAMS.— 


kjohnson on DSK79L0C42 with BILLS
106 

•HR 1994 RH

1 Section 529(c) of the Internal Revenue Code of 1986 is 

2 amended by adding at the end the following new paragraph: 

3 ‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSOCI4 ATED WITH REGISTERED APPRENTICESHIP PRO5 GRAMS.—Any reference in this subsection to the term 

6 ‘qualified higher education expense’ shall include a 

7 reference to expenses for fees, books, supplies, and 

8 equipment required for the participation of a des9 ignated beneficiary in an apprenticeship program 

10 registered and certified with the Secretary of Labor 

11 under section 1 of the National Apprenticeship Act 

12 (29 U.S.C. 50).’’ 

13 (b) DISTRIBUTIONS FOR CERTAIN HOMESCHOOLING

14 EXPENSES.—Section 529(c)(7) of such Code is amended by 

15 striking ‘‘include a reference to’’ and all that follows and 

16 inserting: ‘‘include a reference to— 

17 ‘‘(A) expenses for tuition in connection with 

18 enrollment or attendance of a designated bene19 ficiary at an elementary or secondary public, 

20 private, or religious school, and 

21 ‘‘(B) expenses, with respect to a designated 

22 beneficiary, for— 

23 ‘‘(i) curriculum and curricular mate24 rials, 


kjohnson on DSK79L0C42 with BILLS
107 

•HR 1994 RH

1 ‘‘(ii) books or other instructional mate2 rials, 

3 ‘‘(iii) online educational materials, 

4 ‘‘(iv) tuition for tutoring or edu5 cational classes outside of the home (but 

6 only if the tutor or class instructor is not 

7 related (within the meaning of section 

8 152(d)(2)) to the student), 

9 ‘‘(v) dual enrollment in an institution 

10 of higher education, and 

11 ‘‘(vi) educational therapies for students 

12 with disabilities, 

13 in connection with a homeschool (whether treated 

14 as a homeschool or a private school for purposes 

15 of applicable State law).’’. 

16 (c) DISTRIBUTIONS FOR QUALIFIED EDUCATION LOAN

17 REPAYMENTS.— 

18 (1) IN GENERAL.—Section 529(c) of such Code, 

19 as amended by subsection (a), is amended by adding 

20 at the end the following new paragraph: 

21 ‘‘(9) TREATMENT OF QUALIFIED EDUCATION

22 LOAN REPAYMENTS.— 

23 ‘‘(A) IN GENERAL.—Any reference in this 

24 subsection to the term ‘qualified higher education 

25 expense’ shall include a reference to amounts 


kjohnson on DSK79L0C42 with BILLS
108 

•HR 1994 RH

1 paid as principal or interest on any qualified 

2 education loan (as defined in section 221(d)) of 

3 the designated beneficiary or a sibling of the des4 ignated beneficiary. 

5 ‘‘(B) LIMITATION.—The amount of distribu6 tions treated as a qualified higher education ex7 pense under this paragraph with respect to the 

8 loans of any individual shall not exceed $10,000 

9 (reduced by the amount of distributions so treat10 ed for all prior taxable years). 

11 ‘‘(C) SPECIAL RULES FOR SIBLINGS OF THE

12 DESIGNATED BENEFICIARY.— 

13 ‘‘(i) SEPARATE ACCOUNTING.—For 

14 purposes of subparagraph (B) and sub15 section (d), amounts treated as a qualified 

16 higher education expense with respect to the 

17 loans of a sibling of the designated bene18 ficiary shall be taken into account with re19 spect to such sibling and not with respect to 

20 such designated beneficiary. 

21 ‘‘(ii) SIBLING DEFINED.—For purposes 

22 of this paragraph, the term ‘sibling’ means 

23 an individual who bears a relationship to 

24 the designated beneficiary which is de25 scribed in section 152(d)(2)(B).’’. 


kjohnson on DSK79L0C42 with BILLS
109 

•HR 1994 RH

1 (2) COORDINATION WITH DEDUCTION FOR STU2 DENT LOAN INTEREST.—Section 221(e)(1) of such 

3 Code is amended by adding at the end the following: 

4 ‘‘The deduction otherwise allowable under subsection 

5 (a) (prior to the application of subsection (b)) to the 

6 taxpayer for any taxable year shall be reduced (but 

7 not below zero) by so much of the distributions treated 

8 as a qualified higher education expense under section 

9 529(c)(9) with respect to loans of the taxpayer as 

10 would be includible in gross income under section 

11 529(c)(3)(A) for such taxable year but for such treat12 ment.’’. 

13 (d) DISTRIBUTIONS FOR CERTAIN ELEMENTARY AND

14 SECONDARY SCHOOL EXPENSES IN ADDITION TO TUI15 TION.—Section 529(c)(7)(A) of such Code, as amended by 

16 subsection (b), is amended to read as follows: 

17 ‘‘(A) expenses described in section 

18 530(b)(3)(A)(i) in connection with enrollment or 

19 attendance of a designated beneficiary at an ele20 mentary or secondary public, private, or reli21 gious school, and’’. 

22 (e) EFFECTIVE DATES.—The amendments made by 

23 this section shall apply to distributions made after Decem24 ber 31, 2018. 


kjohnson on DSK79L0C42 with BILLS
110 

•HR 1994 RH

1 TITLE IV—REVENUE 

2 PROVISIONS 

3 SEC. 401. MODIFICATION OF REQUIRED DISTRIBUTION 

4 RULES FOR DESIGNATED BENEFICIARIES. 

5 (a) MODIFICATION OF RULES WHERE EMPLOYEE

6 DIES BEFORE ENTIRE DISTRIBUTION.— 

7 (1) IN GENERAL.—Section 401(a)(9) of the Inter8 nal Revenue Code of 1986 is amended by adding at 

9 the end the following new subparagraph 

10 ‘‘(H) SPECIAL RULES FOR CERTAIN DE11 FINED CONTRIBUTION PLANS.—In the case of a 

12 defined contribution plan, if an employee dies 

13 before the distribution of the employee’s entire 

14 interest— 

15 ‘‘(i) IN GENERAL.—Except in the case 

16 of a beneficiary who is not a designated 

17 beneficiary, subparagraph (B)(ii)— 

18 ‘‘(I) shall be applied by sub19 stituting ‘10 years’ for ‘5 years’, and 

20 ‘‘(II) shall apply whether or not 

21 distributions of the employee’s interests 

22 have begun in accordance with sub23 paragraph (A). 

24 ‘‘(ii) EXCEPTION ONLY FOR ELIGIBLE

25 DESIGNATED BENEFICIARIES.—SubparaVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
111 

•HR 1994 RH

1 graph (B)(iii) shall apply only in the case 

2 of an eligible designated beneficiary. 

3 ‘‘(iii) RULES UPON DEATH OF ELIGI4 BLE DESIGNATED BENEFICIARY.—If an eli5 gible designated beneficiary dies before the 

6 portion of the employee’s interest to which 

7 this subparagraph applies is entirely dis8 tributed, the exception under clause (iii) 

9 shall not apply to any beneficiary of such 

10 eligible designated beneficiary and the re11 mainder of such portion shall be distributed 

12 within 10 years after the death of such eli13 gible designated beneficiary. 

14 ‘‘(iv) APPLICATION TO ELIGIBLE RE15 TIREMENT PLANS.—For purposes of apply16 ing the provisions of this subparagraph in 

17 determining the amounts required to be dis18 tributed pursuant to this paragraph, all eli19 gible retirement plans (as defined in section 

20 402(c)(8)(B)) other than a defined benefit 

21 plan shall be treated as a defined contribu22 tion plan.’’. 

23 (2) DEFINITION OF ELIGIBLE DESIGNATED BENE24 FICIARY.—Section 401(a)(9)(E) of such Code is 

25 amended to read as follows: 


kjohnson on DSK79L0C42 with BILLS
112 

•HR 1994 RH

1 ‘‘(E) DEFINITIONS AND RULES RELATING

2 TO DESIGNATED BENEFICIARY.—For purposes of 

3 this paragraph— 

4 ‘‘(i) DESIGNATED BENEFICIARY.—The 

5 term ‘designated beneficiary’ means any in6 dividual designated as a beneficiary by the 

7 employee. 

8 ‘‘(ii) ELIGIBLE DESIGNATED BENE9 FICIARY.—The term ‘eligible designated ben10 eficiary’ means, with respect to any em11 ployee, any designated beneficiary who is— 

12 ‘‘(I) the surviving spouse of the 

13 employee, 

14 ‘‘(II) subject to clause (iii), a 

15 child of the employee who has not 

16 reached majority (within the meaning 

17 of subparagraph (F)), 

18 ‘‘(III) disabled (within the mean19 ing of section 72(m)(7)), 

20 ‘‘(IV) a chronically ill individual 

21 (within the meaning of section 

22 7702B(c)(2), except that the require23 ments of subparagraph (A)(i) thereof 

24 shall only be treated as met if there is 

25 a certification that, as of such date, the 


kjohnson on DSK79L0C42 with BILLS
113 

•HR 1994 RH

1 period of inability described in such 

2 subparagraph with respect to the indi3 vidual is an indefinite one which is 

4 reasonably expected to be lengthy in 

5 nature), or 

6 ‘‘(V) an individual not described 

7 in any of the preceding subclauses who 

8 is not more than 10 years younger 

9 than the employee. 

10 ‘‘(iii) SPECIAL RULE FOR CHIL11 DREN.—Subject to subparagraph (F), an 

12 individual described in clause (ii)(II) shall 

13 cease to be an eligible designated beneficiary 

14 as of the date the individual reaches major15 ity and any remainder of the portion of the 

16 individual’s interest to which subparagraph 

17 (H)(ii) applies shall be distributed within 

18 10 years after such date. 

19 ‘‘(iv) TIME FOR DETERMINATION OF

20 ELIGIBLE DESIGNATED BENEFICIARY.—The 

21 determination of whether a designated bene22 ficiary is an eligible designated beneficiary 

23 shall be made as of the date of death of the 

24 employee.’’. 

25 (3) EFFECTIVE DATES.— 


kjohnson on DSK79L0C42 with BILLS
114 

•HR 1994 RH

1 (A) IN GENERAL.—Except as provided in 

2 this paragraph and paragraphs (4) and (5), the 

3 amendments made by this subsection shall apply 

4 to distributions with respect to employees who 

5 die after December 31, 2019. 

6 (B) COLLECTIVE BARGAINING EXCEPTION.— 

7 In the case of a plan maintained pursuant to 1 

8 or more collective bargaining agreements between 

9 employee representatives and 1 or more employ10 ers ratified before the date of enactment of this 

11 Act, the amendments made by this subsection 

12 shall apply to distributions with respect to em13 ployees who die in calendar years beginning 

14 after the earlier of— 

15 (i) the later of— 

16 (I) the date on which the last of 

17 such collective bargaining agreements 

18 terminates (determined without regard 

19 to any extension thereof agreed to on or 

20 after the date of the enactment of this 

21 Act), or 

22 (II) December 31, 2019, or 

23 (ii) December 31, 2021. 

24 For purposes of clause (i)(I), any plan amend25 ment made pursuant to a collective bargaining 


kjohnson on DSK79L0C42 with BILLS
115 

•HR 1994 RH

1 agreement relating to the plan which amends the 

2 plan solely to conform to any requirement added 

3 by this section shall not be treated as a termi4 nation of such collective bargaining agreement. 

5 (C) GOVERNMENTAL PLANS.—In the case of 

6 a governmental plan (as defined in section 

7 414(d) of the Internal Revenue Code of 1986), 

8 subparagraph (A) shall be applied by sub9 stituting ‘‘December 31, 2021’’ for ‘‘December 31, 

10 2019’’. 

11 (4) EXCEPTION FOR CERTAIN EXISTING ANNUITY

12 CONTRACTS.— 

13 (A) IN GENERAL.—The amendments made 

14 by this subsection shall not apply to a qualified 

15 annuity which is a binding annuity contract in 

16 effect on the date of enactment of this Act and 

17 at all times thereafter. 

18 (B) QUALIFIED ANNUITY.—For purposes of 

19 this paragraph, the term ‘‘qualified annuity’’ 

20 means, with respect to an employee, an annu21 ity— 

22 (i) which is a commercial annuity (as 

23 defined in section 3405(e)(6) of the Internal 

24 Revenue Code of 1986); 


kjohnson on DSK79L0C42 with BILLS
116 

•HR 1994 RH

1 (ii) under which the annuity payments 

2 are made over the life of the employee or 

3 over the joint lives of such employee and a 

4 designated beneficiary (or over a period not 

5 extending beyond the life expectancy of such 

6 employee or the joint life expectancy of such 

7 employee and a designated beneficiary) in 

8 accordance with the regulations described in 

9 section 401(a)(9)(A)(ii) of such Code (as in 

10 effect before such amendments) and which 

11 meets the other requirements of section 

12 401(a)(9) of such Code (as so in effect) with 

13 respect to such payments; and 

14 (iii) with respect to which— 

15 (I) annuity payments to the em16 ployee have begun before the date of en17 actment of this Act, and the employee 

18 has made an irrevocable election before 

19 such date as to the method and amount 

20 of the annuity payments to the em21 ployee or any designated beneficiaries; 

22 or 

23 (II) if subclause (I) does not 

24 apply, the employee has made an ir25 revocable election before the date of enVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00116 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
117 

•HR 1994 RH

1 actment of this Act as to the method 

2 and amount of the annuity payments 

3 to the employee or any designated 

4 beneficiaries. 

5 (5) EXCEPTION FOR CERTAIN BENEFICIARIES.— 

6 (A) IN GENERAL.—If an employee dies be7 fore the effective date, then, in applying the 

8 amendments made by this subsection to such em9 ployee’s designated beneficiary who dies after 

10 such date— 

11 (i) such amendments shall apply to 

12 any beneficiary of such designated bene13 ficiary; and 

14 (ii) the designated beneficiary shall be 

15 treated as an eligible designated beneficiary 

16 for purposes of applying section 

17 401(a)(9)(H)(ii) of the Internal Revenue 

18 Code of 1986 (as in effect after such amend19 ments). 

20 (B) EFFECTIVE DATE.—For purposes of this 

21 paragraph, the term ‘‘effective date’’ means the 

22 first day of the first calendar year to which the 

23 amendments made by this subsection apply to a 

24 plan with respect to employees dying on or after 

25 such date. 


kjohnson on DSK79L0C42 with BILLS
118 

•HR 1994 RH

1 (b) PROVISIONS RELATING TO PLAN AMENDMENTS.— 

2 (1) IN GENERAL.—If this subsection applies to 

3 any plan amendment— 

4 (A) such plan shall be treated as being oper5 ated in accordance with the terms of the plan 

6 during the period described in paragraph 

7 (2)(B)(i); and 

8 (B) except as provided by the Secretary of 

9 the Treasury, such plan shall not fail to meet the 

10 requirements of section 411(d)(6) of the Internal 

11 Revenue Code of 1986 and section 204(g) of the 

12 Employee Retirement Income Security Act of 

13 1974 by reason of such amendment. 

14 (2) AMENDMENTS TO WHICH SUBSECTION AP15 PLIES.— 

16 (A) IN GENERAL.—This subsection shall 

17 apply to any amendment to any plan or which 

18 is made— 

19 (i) pursuant to any amendment made 

20 by this section or pursuant to any regula21 tion issued by the Secretary of the Treasury 

22 under this section or such amendments; and 

23 (ii) on or before the last day of the first 

24 plan year beginning after December 31, 


kjohnson on DSK79L0C42 with BILLS
119 

•HR 1994 RH

1 2021, or such later date as the Secretary of 

2 the Treasury may prescribe. 

3 In the case of a governmental or collectively bar4 gained plan to which subparagraph (B) or (C) 

5 of subsection (a)(4) applies, clause (ii) shall be 

6 applied by substituting the date which is 2 years 

7 after the date otherwise applied under such 

8 clause. 

9 (B) CONDITIONS.—This subsection shall not 

10 apply to any amendment unless— 

11 (i) during the period— 

12 (I) beginning on the date the leg13 islative or regulatory amendment de14 scribed in paragraph (1)(A) takes effect 

15 (or in the case of a plan amendment 

16 not required by such legislative or reg17 ulatory amendment, the effective date 

18 specified by the plan); and 

19 (II) ending on the date described 

20 in subparagraph (A)(ii) (or, if earlier, 

21 the date the plan amendment is adopt22 ed), 

23 the plan is operated as if such plan amend24 ment were in effect; and 


kjohnson on DSK79L0C42 with BILLS
120 

•HR 1994 RH

1 (ii) such plan amendment applies 

2 retroactively for such period. 

3 SEC. 402. INCREASE IN PENALTY FOR FAILURE TO FILE. 

4 (a) IN GENERAL.—The second sentence of subsection 

5 (a) of section 6651 of the Internal Revenue Code of 1986 

6 is amended by striking ‘‘$205’’ and inserting ‘‘$400’’. 

7 (b) INFLATION ADJUSTMENT.—Section 6651(j)(1) of 

8 such Code is amended by striking ‘‘$205’’ and inserting 

9 ‘‘$400’’. 

10 (b) EFFECTIVE DATE.—The amendments made by this 

11 section shall apply to returns the due date for which (in12 cluding extensions) is after December 31, 2019. 

13 SEC. 403. INCREASED PENALTIES FOR FAILURE TO FILE RE14 TIREMENT PLAN RETURNS. 

15 (a) IN GENERAL.—Subsection (e) of section 6652 of 

16 the Internal Revenue Code of 1986 is amended— 

17 (1) by striking ‘‘$25’’ and inserting ‘‘$105’’; and 

18 (2) by striking ‘‘$15,000’’ and inserting 

19 ‘‘$50,000’’. 

20 (b) ANNUAL REGISTRATION STATEMENT AND NOTIFI21 CATION OF CHANGES.—Subsection (d) of section 6652 of the 

22 Internal Revenue Code of 1986 is amended— 

23 (1) by striking ‘‘$1’’ both places it appears in 

24 paragraphs (1) and (2) and inserting ‘‘$2’’; 


kjohnson on DSK79L0C42 with BILLS
121 

•HR 1994 RH

1 (2) by striking ‘‘$5,000’’ in paragraph (1) and 

2 inserting ‘‘$10,000’’; and 

3 (3) by striking ‘‘$1,000’’ in paragraph (2) and 

4 inserting ‘‘$5,000’’. 

5 (c) FAILURE TO PROVIDE NOTICE.—Subsection (h) of 

6 section 6652 of the Internal Revenue Code of 1986 is 

7 amended— 

8 (1) by striking ‘‘$10’’ and inserting ‘‘$100’’; and 

9 (2) by striking ‘‘$5,000’’ and inserting 

10 ‘‘$50,000’’. 

11 (d) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to returns, statements, and notifications 

13 required to be filed, and notices required to be provided, 

14 after December 31, 2019. 

15 SEC. 404. INCREASE INFORMATION SHARING TO ADMIN16 ISTER EXCISE TAXES. 

17 (a) IN GENERAL.—Section 6103(o) of the Internal 

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

19 the following new paragraph: 

20 ‘‘(3) TAXES IMPOSED BY SECTION 4481.—Re21 turns and return information with respect to taxes 

22 imposed by section 4481 shall be open to inspection 

23 by or disclosure to officers and employees of United 

24 States Customs and Border Protection of the Depart25 ment of Homeland Security whose official duties reVerDate Sep 11 2014 22:05 May 16, 2019 Jkt 089200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6203 E:\BILLS\H1994.RH H1994

kjohnson on DSK79L0C42 with BILLS
122 

•HR 1994 RH

1 quire such inspection or disclosure for purposes of ad2 ministering such section.’’. 

3 (b) CONFORMING AMENDMENTS.—Paragraph (4) of 

4 section 6103(p) of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘or (o)(1)(A)’’ each place it appears 

6 and inserting ‘‘, (o)(1)(A), or (o)(3)’’. 


kjohnson on DSK79L0C42 with BILLS

kjohnson on DSK79L0C42 with BILLS
Union Calendar No. 42 

116TH CONGRESS 

1ST SESSION H. R. 1994 

[Report No. 116–65, Part I] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

poses. encourage retirement savings, and for other purMAY 16, 2019 

Reported from the Committee on Ways and Means with 

M

an amendment 

AY 16, 2019 

Committee on Education and Labor discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the 


kjohnson on DSK79L0C42 with BILLS