I 

118TH CONGRESS 

1ST SESSION H. R. 5673 

To advance responsible policies. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2023 

Mr. MCGOVERN introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Armed Services, Veterans’ Affairs, Oversight and Accountability, 

Intelligence (Permanent Select), Foreign Affairs, Education and the 

Workforce, Small Business, the Judiciary, Natural Resources, House Administration, Energy and Commerce, Homeland Security, Science, Space, 

and Technology, Appropriations, Rules, Ethics, Transportation and Infrastructure, the Budget, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To advance responsible policies. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Responsible Legis5 lating Act’’. 


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1 TITLE I 

2 SEC. 101. LIVESTOCK MANDATORY REPORTING EXTENSION. 

3 (a) IN GENERAL.—Section 260 of the Agricultural 

4 Marketing Act of 1946 (7 U.S.C. 1636i) is amended by 

5 striking ‘‘2023’’ and inserting ‘‘2024’’. 

6 (b) CONFORMING AMENDMENT.—Section 942 of the 

7 Livestock Mandatory Reporting Act of 1999 (7 U.S.C. 

8 1635 note; Public Law 106–78) is amended by striking 

9 ‘‘2023’’ and inserting ‘‘2024’’. 

10 TITLE II 

11 SEC. 201. EDUCATION FOR SEPARATING MEMBERS OF THE 

12 ARMED FORCES REGARDING REGISTERED 

13 APPRENTICESHIPS. 

14 Section 1144(b)(1) of title 10, United States Code, 

15 is amended by inserting ‘‘(including apprenticeship pro16 grams registered under the Act of August 16, 1937 (50 

17 Stat. 664; commonly referred to as the ‘National Appren18 ticeship Act’) and approved under chapters 30 through 36 

19 of title 38)’’ after ‘‘employment opportunities’’. 

20 SEC. 202. WEBSITES REGARDING APPRENTICESHIP PRO21 GRAMS. 

22 (a) WEBSITE UNDER THE JURISDICTION OF SEC23 RETARY OF LABOR.—The Assistant Secretary of Labor 

24 for Veterans’ Employment and Training, in coordination 

25 with the Secretary of Veterans Affairs, shall establish a 


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1 user-friendly website (or update an existing website) that 

2 is available to the public on which veterans can find infor3 mation about apprenticeship programs registered under 

4 the Act of August 16, 1937 (50 Stat. 664; commonly re5 ferred to as the ‘‘National Apprenticeship Act’’) and ap6 proved under chapters 30 through 36 of title 38, United 

7 States Code. Such information shall be searchable and 

8 sortable by occupation and location, and include, with re9 gard to each such program, the following: 

10 (1) A description, including any cost to a vet11 eran. 

12 (2) Contact information. 

13 (3) Whether the program has been endorsed by 

14 a veterans service organization or nonprofit organi15 zation that caters to veterans. 

16 (4) Whether the program prefers to hire vet17 erans. 

18 (5) Each certification or degree an individual 

19 earns by completing the program. 

20 (b) COORDINATION WITH OTHER WEBSITE.—The 

21 Assistant Secretary shall update all information regarding 

22 programs for veterans listed on apprenticeship.gov (or any 

23 successor website) to include the information specified 

24 under subsection (a). 


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1 TITLE III 

2 SEC. 301. SENSE OF CONGRESS. 

3 It is the sense of Congress that— 

4 (1) it is in the best national and homeland se5 curity interests of the United States for Federal 

6 agencies to retain the specialized knowledge and ex7 perience of individuals who suffer an injury or illness 

8 while serving in a covered position (as defined under 

9 the amendments made by this Act); and 

10 (2) Federal agencies should ensure, to the 

11 greatest extent possible, that an individual who can 

12 no longer carry out the duties of a covered position, 

13 and is reappointed to a position in the civil service 

14 that is not a covered position, is reappointed within 

15 the same Federal agency, in the same geographic lo16 cation, and at a level of pay commensurate to the 

17 position which the individual held immediately prior 

18 to such injury or illness. 

19 SEC. 302. RETIREMENT FOR CERTAIN EMPLOYEES. 

20 (a) CSRS.—Section 8336(c) of title 5, United States 

21 Code, is amended by adding at the end the following: 

22 ‘‘(3)(A) In this paragraph— 

23 ‘‘(i) the term ‘affected individual’ means 

24 an individual covered under this subchapter 

25 who— 


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1 ‘‘(I) is performing service in a covered 

2 position; 

3 ‘‘(II) while on duty, becomes ill or is 

4 injured as a direct result of the perform5 ance of such duties before the date on 

6 which the individual becomes entitled to an 

7 annuity under paragraph (1) of this sub8 section or subsection (e), (m), or (n), as 

9 applicable; 

10 ‘‘(III) because of the illness or injury 

11 described in subclause (II), is permanently 

12 unable to render useful and efficient serv13 ice in the employee’s covered position, as 

14 determined by the agency in which the in15 dividual was serving when such individual 

16 incurred the illness or injury; and 

17 ‘‘(IV) is appointed to a position in the 

18 civil service that— 

19 ‘‘(aa) is not a covered position; 

20 and 

21 ‘‘(bb) is within an agency that 

22 regularly appoints individuals to su23 pervisory or administrative positions 

24 related to the activities of the former 

25 covered position of the individual; 


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1 ‘‘(ii) the term ‘covered position’ means a 

2 position as a law enforcement officer, customs 

3 and border protection officer, firefighter, air 

4 traffic controller, nuclear materials courier, 

5 member of the Capitol Police, or member of the 

6 Supreme Court Police. 

7 ‘‘(B) Unless an affected individual files an 

8 election described in subparagraph (E), cred9 itable service by the affected individual in a po10 sition described in subparagraph (A)(i)(IV) 

11 shall be treated as creditable service in a cov12 ered position for purposes of this chapter and 

13 determining the amount to be deducted and 

14 withheld from the pay of the affected individual 

15 under section 8334. 

16 ‘‘(C) Subparagraph (B) shall only apply if 

17 the affected employee transitions to a position 

18 described in subparagraph (A)(i)(IV) without a 

19 break in service exceeding 3 days. 

20 ‘‘(D) The service of an affected individual 

21 shall no longer be eligible for treatment under 

22 subparagraph (B) if such service occurs after 

23 the individual— 

24 ‘‘(i) is transferred to a supervisory or 

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1 tivities of the former covered position of 

2 the individual; or 

3 ‘‘(ii) meets the age and service re4 quirements that would subject the indi5 vidual to mandatory separation under sec6 tion 8335 if such individual had remained 

7 in the former covered position. 

8 ‘‘(E) In accordance with procedures estab9 lished by the Director of the Office of Personnel 

10 Management, an affected individual may file an 

11 election to have any creditable service per12 formed by the affected individual treated in ac13 cordance with this chapter without regard to 

14 subparagraph (B). 

15 ‘‘(F) Nothing in this paragraph shall be 

16 construed to apply to such affected individual 

17 any other pay-related laws or regulations appli18 cable to a covered position.’’. 

19 (b) FERS.— 

20 (1) IN GENERAL.—Section 8412(d) of title 5, 

21 United States Code, is amended— 

22 (A) by redesignating paragraphs (1) and 

23 (2) as subparagraphs (A) and (B), respectively; 

24 (B) by inserting ‘‘(1)’’ before ‘‘An em25 ployee’’; and 


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1 (C) by adding at the end the following: 

2 ‘‘(2)(A) In this paragraph— 

3 ‘‘(i) the term ‘affected individual’ means 

4 an individual covered under this chapter who— 

5 ‘‘(I) is performing service in a covered 

6 position; 

7 ‘‘(II) while on duty, becomes ill or is 

8 injured as a direct result of the perform9 ance of such duties before the date on 

10 which the individual becomes entitled to an 

11 annuity under paragraph (1) of this sub12 section or subsection (e), as applicable; 

13 ‘‘(III) because of the illness or injury 

14 described in subclause (II), is permanently 

15 unable to render useful and efficient serv16 ice in the employee’s covered position, as 

17 determined by the agency in which the in18 dividual was serving when such individual 

19 incurred the illness or injury; and 

20 ‘‘(IV) is appointed to a position in the 

21 civil service that— 

22 ‘‘(aa) is not a covered position; 

23 and 

24 ‘‘(bb) is within an agency that 

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1 pervisory or administrative positions 

2 related to the activities of the former 

3 covered position of the individual; 

4 ‘‘(ii) the term ‘covered position’ means a 

5 position as a law enforcement officer, customs 

6 and border protection officer, firefighter, air 

7 traffic controller, nuclear materials courier, 

8 member of the Capitol Police, or member of the 

9 Supreme Court Police. 

10 ‘‘(B) Unless an affected individual files an 

11 election described in subparagraph (E), cred12 itable service by the affected individual in a po13 sition described in subparagraph (A)(i)(IV) 

14 shall be treated as creditable service in a cov15 ered position for purposes of this chapter and 

16 determining the amount to be deducted and 

17 withheld from the pay of the affected individual 

18 under section 8422. 

19 ‘‘(C) Subparagraph (B) shall only apply if 

20 the affected employee transitions to a position 

21 described in subparagraph (A)(i)(IV) without a 

22 break in service exceeding 3 days. 

23 ‘‘(D) The service of an affected individual 

24 shall no longer be eligible for treatment under 


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1 subparagraph (B) if such service occurs after 

2 the individual— 

3 ‘‘(i) is transferred to a supervisory or 

4 administrative position related to the ac5 tivities of the former covered position of 

6 the individual; or 

7 ‘‘(ii) meets the age and service re8 quirements that would subject the indi9 vidual to mandatory separation under sec10 tion 8425 if such individual had remained 

11 in the former covered position. 

12 ‘‘(E) In accordance with procedures estab13 lished by the Director of the Office of Personnel 

14 Management, an affected individual may file an 

15 election to have any creditable service per16 formed by the affected individual treated in ac17 cordance with this chapter without regard to 

18 subparagraph (B). 

19 ‘‘(F) Nothing in this paragraph shall be 

20 construed to apply to such affected individual 

21 any other pay-related laws or regulations appli22 cable to a covered position.’’. 

23 (2) TECHNICAL AND CONFORMING AMEND24 MENTS.— 


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1 (A) Chapter 84 of title 5, United States 

2 Code, is amended— 

3 (i) in section 8414(b)(3), by inserting 

4 ‘‘(1)’’ after ‘‘subsection (d)’’; 

5 (ii) in section 8415— 

6 (I) in subsection (e), in the mat7 ter preceding paragraph (1), by in8 serting ‘‘(1)’’ after ‘‘subsection (d)’’; 

9 and 

10 (II) in subsection (h)(2)(A), by 

11 striking ‘‘(d)(2)’’ and inserting 

12 ‘‘(d)(1)(B)’’; 

13 (iii) in section 8421(a)(1), by insert14 ing ‘‘(1)’’ after ‘‘(d)’’; 

15 (iv) in section 8421a(b)(4)(B)(ii), by 

16 inserting ‘‘(1)’’ after ‘‘section 8412(d)’’; 

17 (v) in section 8425, by inserting ‘‘(1)’’ 

18 after ‘‘section 8412(d)’’ each place it ap19 pears; and 

20 (vi) in section 8462(c)(3)(B)(ii), by 

21 inserting ‘‘(1)’’ after ‘‘subsection (d)’’. 

22 (B) Title VIII of the Foreign Service Act 

23 of 1980 (22 U.S.C. 4041 et seq.) is amended— 


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1 (i) in section 805(d)(5) (22 U.S.C. 

2 4045(d)(5)), by inserting ‘‘(1)’’ after ‘‘or 

3 8412(d)’’; and 

4 (ii) in section 812(a)(2)(B) (22 

5 U.S.C. 4052(a)(2)(B)), by inserting ‘‘(1)’’ 

6 after ‘‘or 8412(d)’’. 

7 (c) CIA EMPLOYEES.—Section 302 of the Central In8 telligence Agency Retirement Act (50 U.S.C. 2152) is 

9 amended by adding at the end the following: 

10 ‘‘(d) EMPLOYEES DISABLED ON DUTY.— 

11 ‘‘(1) DEFINITIONS.—In this subsection— 

12 ‘‘(A) the term ‘affected employee’ means 

13 an employee of the Agency covered under sub14 chapter II of chapter 84 of title 5, United 

15 States Code, who— 

16 ‘‘(i) is performing service in a position 

17 designated under subsection (a); 

18 ‘‘(ii) while on duty in the position des19 ignated under subsection (a), becomes ill 

20 or is injured as a direct result of the per21 formance of such duties before the date on 

22 which the employee becomes entitled to an 

23 annuity under section 233 of this Act or 

24 section 8412(d)(1) of title 5, United States 

25 Code; 


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1 ‘‘(iii) because of the illness or injury 

2 described in clause (ii), is permanently un3 able to render useful and efficient service 

4 in the employee’s covered position, as de5 termined by the Director; and 

6 ‘‘(iv) is appointed to a position in the 

7 civil service that is not a covered position 

8 but is within the Agency; and 

9 ‘‘(B) the term ‘covered position’ means a 

10 position as— 

11 ‘‘(i) a law enforcement officer de12 scribed in section 8331(20) or 8401(17) of 

13 title 5, United States Code; 

14 ‘‘(ii) a customs and border protection 

15 officer described in section 8331(31) or 

16 8401(36) of title 5, United States Code; 

17 ‘‘(iii) a firefighter described in section 

18 8331(21) or 8401(14) of title 5, United 

19 States Code; 

20 ‘‘(iv) an air traffic controller described 

21 in section 8331(30) or 8401(35) of title 5, 

22 United States Code; 

23 ‘‘(v) a nuclear materials courier de24 scribed in section 8331(27) or 8401(33) of 

25 title 5, United States Code; 


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1 ‘‘(vi) a member of the United States 

2 Capitol Police; 

3 ‘‘(vii) a member of the Supreme Court 

4 Police; 

5 ‘‘(viii) an affected employee; or 

6 ‘‘(ix) a special agent described in sec7 tion 804(15) of the Foreign Service Act of 

8 1980 (22 U.S.C. 4044(15)). 

9 ‘‘(2) TREATMENT OF SERVICE AFTER DIS10 ABILITY.—Unless an affected employee files an elec11 tion described in paragraph (3), creditable service by 

12 the affected employee in a position described in 

13 paragraph (1)(A)(iv) shall be treated as creditable 

14 service in a covered position for purposes of this Act 

15 and chapter 84 of title 5, United States Code, in16 cluding eligibility for an annuity under section 233 

17 of this Act or 8412(d)(1) of title 5, United States 

18 Code, and determining the amount to be deducted 

19 and withheld from the pay of the affected employee 

20 under section 8422 of title 5, United States Code. 

21 ‘‘(3) BREAK IN SERVICE.—Paragraph (2) shall 

22 only apply if the affected employee transitions to a 

23 position described in paragraph (1)(A)(iv) without a 

24 break in service exceeding 3 days. 


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1 ‘‘(4) LIMITATION ON TREATMENT OF SERV2 ICE.—The service of an affected employee shall no 

3 longer be eligible for treatment under paragraph (2) 

4 if such service occurs after the employee is trans5 ferred to a supervisory or administrative position re6 lated to the activities of the former covered position 

7 of the employee. 

8 ‘‘(5) OPT OUT.—An affected employee may file 

9 an election to have any creditable service performed 

10 by the affected employee treated in accordance with 

11 chapter 84 of title 5, United States Code, without 

12 regard to paragraph (2).’’. 

13 (d) FOREIGN SERVICE RETIREMENT AND DIS14 ABILITY SYSTEM.—Section 806(a)(6) of the Foreign Serv15 ice Act of 1980 (22 U.S.C. 4046(a)(6)) is amended by 

16 adding at the end the following: 

17 ‘‘(D)(i) In this subparagraph— 

18 ‘‘(I) the term ‘affected special agent’ 

19 means an individual covered under this 

20 subchapter who— 

21 ‘‘(aa) is performing service as a 

22 special agent; 

23 ‘‘(bb) while on duty as a special 

24 agent, becomes ill or is injured as a 

25 direct result of the performance of 


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1 such duties before the date on which 

2 the individual becomes entitled to an 

3 annuity under section 811; 

4 ‘‘(cc) because of the illness or in5 jury described in item (bb), is perma6 nently unable to render useful and ef7 ficient service in the employee’s cov8 ered position, as determined by the 

9 Secretary; and 

10 ‘‘(dd) is appointed to a position 

11 in the Foreign Service that is not a 

12 covered position; and 

13 ‘‘(II) the term ‘covered position’ 

14 means a position as— 

15 ‘‘(aa) a law enforcement officer 

16 described in section 8331(20) or 

17 8401(17) of title 5, United States 

18 Code; 

19 ‘‘(bb) a customs and border pro20 tection officer described in section 

21 8331(31) or 8401(36) of title 5, 

22 United States Code; 

23 ‘‘(cc) a firefighter described in 

24 section 8331(21) or 8401(14) of title 

25 5, United States Code; 


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1 ‘‘(dd) an air traffic controller de2 scribed in section 8331(30) or 

3 8401(35) of title 5, United States 

4 Code; 

5 ‘‘(ee) a nuclear materials courier 

6 described in section 8331(27) or 

7 8401(33) of title 5, United States 

8 Code; 

9 ‘‘(ff) a member of the United 

10 States Capitol Police; 

11 ‘‘(gg) a member of the Supreme 

12 Court Police; 

13 ‘‘(hh) an employee of the Agency 

14 designated under section 302(a) of the 

15 Central Intelligence Agency Retire16 ment Act (50 U.S.C. 2152(a)); or 

17 ‘‘(ii) a special agent. 

18 ‘‘(ii) Unless an affected special agent 

19 files an election described in clause (iv), 

20 creditable service by the affected special 

21 agent in a position described in clause 

22 (i)(I)(dd) shall be treated as creditable 

23 service as a special agent for purposes of 

24 this subchapter, including determining the 

25 amount to be deducted and withheld from 


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1 the pay of the individual under section 

2 805. 

3 ‘‘(iii) Clause (ii) shall only apply if the 

4 special agent transitions to a position de5 scribed in clause (i)(I)(dd) without a break 

6 in service exceeding 3 days. 

7 ‘‘(iv) The service of an affected em8 ployee shall no longer be eligible for treat9 ment under clause (ii) if such service oc10 curs after the employee is transferred to a 

11 supervisory or administrative position re12 lated to the activities of the former covered 

13 position of the employee. 

14 ‘‘(v) In accordance with procedures 

15 established by the Secretary, an affected 

16 special agent may file an election to have 

17 any creditable service performed by the af18 fected special agent treated in accordance 

19 with this subchapter, without regard to 

20 clause (ii).’’. 

21 (e) IMPLEMENTATION.— 

22 (1) OFFICE OF PERSONNEL MANAGEMENT.— 

23 Not later than 1 year after the date of enactment 

24 of this Act, the Director of the Office of Personnel 

25 Management shall promulgate regulations to carry 


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1 out the amendments made by subsections (a) and 

2 (b). 

3 (2) CIA EMPLOYEES.—The Director of the 

4 Central Intelligence Agency shall promulgate regula5 tions to carry out the amendment made by sub6 section (c). 

7 (3) FOREIGN SERVICE RETIREMENT AND DIS8 ABILITY SYSTEM.—The Secretary of State shall pro9 mulgate regulations to carry out the amendment 

10 made by subsection (d). 

11 (4) AGENCY CERTIFICATION.—The regulations 

12 promulgated to carry out the amendments made by 

13 this Act shall include a requirement that the head 

14 of the agency at which an affected employee or spe15 cial agent (as the case may be) incurred the applica16 ble illness or injury certifies that such illness or in17 jury— 

18 (A) was incurred in the course of the em19 ployee’s or special agent’s duties; and 

20 (B) permanently precludes the employee or 

21 special agent from rendering useful and effi22 cient service in the covered position but would 

23 not preclude the employee or special agent from 

24 continuing to serve in the Federal service. 


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1 (5) AGENCY REAPPOINTMENT.—The regula2 tions promulgated to carry out the amendments 

3 made by this Act shall ensure that, to the greatest 

4 extent possible, the head of each agency appoints af5 fected employees or special agents to supervisory or 

6 administrative positions related to the activities of 

7 the former covered position of the employee or spe8 cial agent. 

9 (6) TREATMENT OF SERVICE.—The regulations 

10 promulgated to carry out the amendments made by 

11 this Act shall ensure that the creditable service of an 

12 affected employee or special agent (as the case may 

13 be) that is not in a covered position pursuant to an 

14 election made under such amendments shall be 

15 treated as the same type of service as the covered 

16 position in which the employee or agent suffered the 

17 qualifying illness or injury. 

18 (f) EFFECTIVE DATE; APPLICABILITY.—The amend19 ments made by this Act— 

20 (1) shall take effect on the date of enactment 

21 of this Act; and 

22 (2) shall apply to an individual who suffers an 

23 illness or injury described in section 

24 8336(c)(3)(A)(i)(II) or section 8412(d)(2)(A)(i)(II) 

25 of title 5, United States Code, as amended by this 


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1 section, section 302(d)(1)(A)(ii) of the Central Intel2 ligence Agency Retirement Act, as amended by this 

3 section, or section 806(a)(6)(D)(i)(I)(bb) of the For4 eign Service Act of 1980, as amended by this sec5 tion, on or after the date that is 2 years after the 

6 date of enactment of this Act. 

7 TITLE IV 

8 SEC. 401. EXPANDING AUTOMATIC ENROLLMENT IN RE9 TIREMENT PLANS. 

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

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

12 amended by inserting after section 414 the following new 

13 section: 

14 ‘‘SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC EN15 ROLLMENT. 

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

17 this section— 

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

19 qualified cash or deferred arrangement described in 

20 section 401(k) unless such arrangement meets the 

21 automatic enrollment requirements of subsection (b), 

22 and 

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

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

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1 scribed in such section unless such agreement meets 

2 the automatic enrollment requirements of subsection 

3 (b). 

4 ‘‘(b) AUTOMATIC ENROLLMENT REQUIREMENTS.— 

5 ‘‘(1) IN GENERAL.—An arrangement or agree6 ment meets the requirements of this subsection if 

7 such arrangement or agreement is an eligible auto8 matic contribution arrangement (as defined in sec9 tion 414(w)(3)) which meets the requirements of 

10 paragraphs (2) through (4). 

11 ‘‘(2) ALLOWANCE OF PERMISSIBLE WITH12 DRAWALS.—An eligible automatic contribution ar13 rangement meets the requirements of this paragraph 

14 if such arrangement allows employees to make per15 missible withdrawals (as defined in section 

16 414(w)(2)). 

17 ‘‘(3) MINIMUM CONTRIBUTION PERCENTAGE.— 

18 ‘‘(A) IN GENERAL.—An eligible automatic 

19 contribution arrangement meets the require20 ments of this paragraph if— 

21 ‘‘(i) the uniform percentage of com22 pensation contributed by the participant 

23 under such arrangement during the first 

24 year of participation is not less than 3 per25 cent and not more than 10 percent (unless 


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1 the participant specifically elects not to 

2 have such contributions made or to have 

3 such contributions made at a different per4 centage), and 

5 ‘‘(ii) effective for the first day of each 

6 plan year starting after each completed 

7 year of participation under such arrange8 ment such uniform percentage is increased 

9 by 1 percentage point (to at least 10 per10 cent, but not more than 15 percent) unless 

11 the participant specifically elects not to 

12 have such contributions made or to have 

13 such contributions made at a different per14 centage. 

15 ‘‘(B) INITIAL REDUCED CEILING FOR CER16 TAIN PLANS.—In the case of any eligible auto17 matic contribution arrangement (other than an 

18 arrangement that meets the requirements of 

19 paragraph (12) or (13) of section 401(k)), for 

20 plan years ending before January 1, 2025, sub21 paragraph (A)(ii) shall be applied by sub22 stituting ‘10 percent’ for ‘15 percent’. 

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

24 automatic contribution arrangement meets the re25 quirements of this paragraph if amounts contributed 


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1 pursuant to such arrangement, and for which no in2 vestment is elected by the participant, are invested 

3 in accordance with the requirements of section 

4 2550.404c–5 of title 29, Code of Federal Regula5 tions (or any successor regulations). 

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

7 ‘‘(1) SIMPLE PLANS.—Subsection (a) shall not 

8 apply to any simple plan (within the meaning of sec9 tion 401(k)(11)). 

10 ‘‘(2) EXCEPTION FOR PLANS OR ARRANGE11 MENTS ESTABLISHED BEFORE ENACTMENT OF SEC12 TION.— 

13 ‘‘(A) IN GENERAL.—Subsection (a) shall 

14 not apply to— 

15 ‘‘(i) any qualified cash or deferred ar16 rangement established before the date of 

17 the enactment of this section, or 

18 ‘‘(ii) any annuity contract purchased 

19 under a plan established before the date of 

20 the enactment of this section. 

21 ‘‘(B) POST-ENACTMENT ADOPTION OF

22 MULTIPLE EMPLOYER PLAN.—Subparagraph 

23 (A) shall not apply in the case of an employer 

24 adopting after such date of enactment a plan 

25 maintained by more than one employer, and 


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1 subsection (a) shall apply with respect to such 

2 employer as if such plan were a single plan. 

3 ‘‘(3) EXCEPTION FOR GOVERNMENTAL AND

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

5 any governmental plan (within the meaning of sec6 tion 414(d)) or any church plan (within the meaning 

7 of section 414(e)). 

8 ‘‘(4) EXCEPTION FOR NEW AND SMALL BUSI9 NESSES.— 

10 ‘‘(A) NEW BUSINESS.—Subsection (a) 

11 shall not apply to any qualified cash or deferred 

12 arrangement, or any annuity contract pur13 chased under a plan, while the employer main14 taining such plan (and any predecessor em15 ployer) has been in existence for less than 3 

16 years. 

17 ‘‘(B) SMALL BUSINESSES.—Subsection (a) 

18 shall not apply to any qualified cash or deferred 

19 arrangement, or any annuity contract pur20 chased under a plan, earlier than the date that 

21 is 1 year after the close of the first taxable year 

22 with respect to which the employer maintaining 

23 the plan normally employed more than 10 em24 ployees. 


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1 ‘‘(C) TREATMENT OF MULTIPLE EM2 PLOYER PLANS.—In the case of a plan main3 tained by more than 1 employer, subparagraphs 

4 (A) and (B) shall be applied separately with re5 spect to each such employer, and all such em6 ployers to which subsection (a) applies (after 

7 the application of this paragraph) shall be 

8 treated as maintaining a separate plan for pur9 poses of this section.’’. 

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

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

12 such Code is amended by inserting after the item relating 

13 to section 414 the following new item: 

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

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

15 this section shall apply to plan years beginning after De16 cember 31, 2023. 

17 SEC. 402. MODIFICATION OF CREDIT FOR SMALL EM18 PLOYER PENSION PLAN STARTUP COSTS. 

19 (a) INCREASE IN CREDIT PERCENTAGE FOR SMALL20 ER EMPLOYERS.—Section 45E(e) of the Internal Revenue 

21 Code of 1986 is amended by adding at the end the fol22 lowing new paragraph: 

23 ‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL

24 EMPLOYERS.—In the case of an employer which 

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


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

2 ‘50 employees’ for ‘100 employees’, subsection (a) 

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

4 percent’.’’. 

5 (b) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU6 TIONS BY CERTAIN SMALL EMPLOYERS.—Section 45E of 

7 such Code, as amended by subsection (a), is amended by 

8 adding at the end the following new subsection: 

9 ‘‘(f) ADDITIONAL CREDIT FOR EMPLOYER CON10 TRIBUTIONS BY CERTAIN ELIGIBLE EMPLOYERS.— 

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

12 employer, the credit allowed for the taxable year 

13 under subsection (a) (determined without regard to 

14 this subsection) shall be increased by an amount 

15 equal to the applicable percentage of employer con16 tributions (other than any elective deferrals (as de17 fined in section 402(g)(3)) by the employer to an eli18 gible employer plan (other than a defined benefit 

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

20 ‘‘(2) LIMITATIONS.— 

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

22 determined under paragraph (1) (before the ap23 plication of subparagraph (B)) with respect to 

24 any employee of the employer shall not exceed 

25 $1,000. 


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

2 any eligible employer which had for the pre3 ceding taxable year more than 50 employees, 

4 the amount determined under paragraph (1) 

5 (without regard to this subparagraph) shall be 

6 reduced by an amount equal to the product 

7 of— 

8 ‘‘(i) the amount otherwise so deter9 mined under paragraph (1), multiplied by 

10 ‘‘(ii) a percentage equal to 2 percent11 age points for each employee of the em12 ployer for the preceding taxable year in ex13 cess of 50 employees. 

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

15 of this section, the applicable percentage for the tax16 able year during which the eligible employer plan is 

17 established with respect to the eligible employer shall 

18 be 100 percent, and for taxable years thereafter 

19 shall be determined under the following table: 

‘‘In the case of the following 

taxable year beginning 

after the taxable year 

during which plan is established with respect to 

the eligible employer: 

The applicable percentage shall 

be: 

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

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

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

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

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


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1 ‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 

2 NUMBER OF EMPLOYEES.—For purposes of this sub3 section, whether an employer is an eligible employer 

4 and the number of employees of an employer shall 

5 be determined under the rules of subsection (c), ex6 cept that paragraph (2) thereof shall only apply to 

7 the taxable year during which the eligible employer 

8 plan to which this section applies is established with 

9 respect to the eligible employer.’’. 

10 (c) DISALLOWANCE OF DEDUCTION.—Section 

11 45E(e)(2) of such Code is amended to read as follows: 

12 ‘‘(2) DISALLOWANCE OF DEDUCTION.—No de13 duction shall be allowed— 

14 ‘‘(A) for that portion of the qualified start15 up costs paid or incurred for the taxable year 

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

17 credit determined under subsection (a) as is 

18 properly allocable to such costs, and 

19 ‘‘(B) for that portion of the employer con20 tributions by the employer for the taxable year 

21 which is equal to so much of the credit increase 

22 determined under subsection (f) as is properly 

23 allocable to such contributions.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2022. 

4 SEC. 403. PROMOTION OF SAVER’S CREDIT. 

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

6 shall take such steps as the Secretary determines are nec7 essary and appropriate to increase public awareness of the 

8 credit provided under section 25B of the Internal Revenue 

9 Code of 1986. 

10 (b) REPORT TO CONGRESS.— 

11 (1) IN GENERAL.—Not later than 90 days after 

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

13 shall provide a report to Congress to summarize the 

14 anticipated promotion efforts of the Treasury under 

15 subsection (a). 

16 (2) CONTENTS.—Such report shall include— 

17 (A) a description of plans for— 

18 (i) the development and distribution 

19 of digital and print materials, including the 

20 distribution of such materials to States for 

21 participants in State facilitated retirement 

22 savings programs; and 

23 (ii) the translation of such materials 

24 into the 10 most commonly spoken lan25 guages in the United States after English 


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1 (as determined by reference to the most re2 cent American Community Survey of the 

3 Bureau of the Census); and 

4 (B) such other information as the Sec5 retary determines is necessary 

6 SEC. 404. ENHANCEMENT OF SAVER’S CREDIT. 

7 (a) 50 PERCENT CREDIT RATE.—Section 25B(a) of 

8 the Internal Revenue Code of 1986 is amended by striking 

9 ‘‘the applicable percentage’’ and inserting ‘‘50 percent’’. 

10 (b) ADJUSTED GROSS INCOME PHASEOUTS.—Section 

11 25B(b) of such Code is amended to read as follows: 

12 ‘‘(b) LIMITATION.—For purposes of this section— 

13 ‘‘(1) IN GENERAL.—The amount of credit al14 lowable under subsection (a) (determined without re15 gard to this subsection) shall be reduced (but not 

16 below zero) by an amount which bears the same 

17 ratio to the credit otherwise so allowable as— 

18 ‘‘(A) the excess (if any) of— 

19 ‘‘(i) adjusted gross income of the tax20 payer, over 

21 ‘‘(ii) the threshold amount, bears to 

22 ‘‘(B) the phaseout amount. 

23 ‘‘(2) THRESHOLD AMOUNT.—The term ‘thresh24 old amount’ means— 


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1 ‘‘(A) in the case of a joint return or a sur2 viving spouse (as defined in section 2(a)), 

3 $48,000, 

4 ‘‘(B) in the case of a head of household, 75 

5 percent of the amount in effect for the taxable 

6 year under subparagraph (A), and 

7 ‘‘(C) in the case of any other individual, 50 

8 percent of the amount in effect for the taxable 

9 year under subparagraph (A). 

10 ‘‘(3) PHASEOUT AMOUNT.—The term ‘phaseout 

11 amount’ means— 

12 ‘‘(A) in the case of a joint return or a sur13 viving spouse (as defined in 2(a)), $35,000, 

14 ‘‘(B) in the case of a head of household (as 

15 defined in section 2(b)), 75 percent of the 

16 amount in effect for the taxable year under sub17 paragraph (A), and 

18 ‘‘(C) in the case of any other individual, 50 

19 percent of the amount in effect for the taxable 

20 year under subparagraph (A). 

21 ‘‘(4) INFLATION ADJUSTMENT.— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 taxable year beginning in a calendar year after 

24 2026, the $48,000 dollar amount in paragraph 


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1 (2) and the $35,000 in paragraph (3) shall 

2 each be increased by an amount equal to— 

3 ‘‘(i) such dollar amount, multiplied by 

4 ‘‘(ii) the cost-of-living adjustment de5 termined under section 1(f)(3) for the cal6 endar year in which the taxable year be7 gins, determined by substituting ‘calendar 

8 year 2022’ for ‘calendar year 2016’ in sub9 paragraph (A)(ii) thereof. 

10 ‘‘(B) ROUNDING.—Any increase deter11 mined under subparagraph (A) that is not a 

12 multiple of $500 shall be rounded to the near13 est multiple of $500.’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2026. 

17 SEC. 405. ENHANCEMENT OF 403(B) PLANS. 

18 (a) IN GENERAL.—Section 403(b)(7)(A) of the Inter19 nal Revenue Code of 1986 is amended by striking ‘‘if the 

20 amounts are to be invested in regulated investment com21 pany stock to be held in that custodial account’’ and in22 serting ‘‘if the amounts are to be held in that custodial 

23 account and invested in regulated investment company 

24 stock or a group trust intended to satisfy the requirements 


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1 of Internal Revenue Service Revenue Ruling 81–100 (or 

2 any successor guidance)’’. 

3 (b) CONFORMING AMENDMENT.—The heading of 

4 paragraph (7) of section 403(b) of such Code is amended 

5 by striking ‘‘FOR REGULATED INVESTMENT COMPANY

6 STOCK’’. 

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

8 this section shall apply to amounts invested after Decem9 ber 31, 2022. 

10 SEC. 406. INCREASE IN AGE FOR REQUIRED BEGINNING 

11 DATE FOR MANDATORY DISTRIBUTIONS. 

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

13 Internal Revenue Code of 1986 is amended by striking 

14 ‘‘age 72’’ and inserting ‘‘the applicable age’’. 

15 (b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR

16 OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec17 tion 401(a)(9) of such Code are each amended by striking 

18 ‘‘age 72’’ and inserting ‘‘the applicable age’’. 

19 (c) APPLICABLE AGE.—Section 401(a)(9)(C) of such 

20 Code is amended by adding at the end the following new 

21 clause: 

22 ‘‘(v) APPLICABLE AGE.— 

23 ‘‘(I) In the case of an individual 

24 who attains age 72 after December 


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1 31, 2022, and age 73 before January 

2 1, 2030, the applicable age is 73. 

3 ‘‘(II) In the case of an individual 

4 who attains age 73 after December 

5 31, 2029, and age 74 before January 

6 1, 2033, the applicable age is 74. 

7 ‘‘(III) In the case of an indi8 vidual who attains age 74 after De9 cember 31, 2032, the applicable age is 

10 75.’’. 

11 (d) CONFORMING AMENDMENTS.—The last sentence 

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

13 ‘‘age 72’’ and inserting ‘‘the applicable age (determined 

14 under section 401(a)(9)(C)(v) for the calendar year in 

15 which such taxable year begins)’’. 

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

17 this section shall apply to distributions required to be 

18 made after December 31, 2022, with respect to individuals 

19 who attain age 72 after such date. 

20 SEC. 407. INDEXING IRA CATCH-UP LIMIT. 

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

22 219(b)(5) of the Internal Revenue Code of 1986 is amend23 ed by adding at the end the following new clause: 

24 ‘‘(iii) INDEXING OF CATCH-UP LIMITA25 TION.—In the case of any taxable year beVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 ginning in a calendar year after 2023, the 

2 $1,000 amount under subparagraph (B)(ii) 

3 shall be increased by an amount equal to— 

4 ‘‘(I) such dollar amount, multi5 plied by 

6 ‘‘(II) the cost-of-living adjust7 ment determined under section 1(f)(3) 

8 for the calendar year in which the tax9 able year begins, determined by sub10 stituting ‘calendar year 2022’ for ‘cal11 endar year 2016’ in subparagraph 

12 (A)(ii) thereof. 

13 If any amount after adjustment under the 

14 preceding sentence is not a multiple of 

15 $100, such amount shall be rounded to the 

16 next lower multiple of $100.’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2023. 

20 SEC. 408. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, 

21 AND 64. 

22 (a) IN GENERAL.— 

23 (1) PLANS OTHER THAN SIMPLE PLANS.—Sec24 tion 414(v)(2)(B)(i) of the Internal Revenue Code of 

25 1986 is amended by inserting the following before 


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1 the period: ‘‘($10,000, in the case of an eligible par2 ticipant who would attain age 62, but not age 65, 

3 before the close of the taxable year)’’. 

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

5 such Code is amended by inserting the following be6 fore the period: ‘‘($5,000, in the case of an eligible 

7 participant who would attain age 62, but not age 65, 

8 before the close of the taxable year)’’. 

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

10 (C) of section 414(v)(2) of such Code is amended by add11 ing at the end the following: ‘‘In the case of a year begin12 ning after December 31, 2023, the Secretary shall adjust 

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

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

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

16 manner as adjustments under the preceding sentence; ex17 cept that the base period taken into account shall be the 

18 calendar quarter beginning July 1, 2022.’’. 

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2023. 

22 SEC. 409. POOLED EMPLOYER PLANS MODIFICATION. 

23 (a) IN GENERAL.—Section 3(43)(B)(ii) of the Em24 ployee Retirement Income Security Act of 1974 (29 

25 U.S.C. 1002(43)(B)(ii)) is amended to read as follows: 


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1 ‘‘(ii) designate a named fiduciary 

2 (other than an employer in the plan) to be 

3 responsible for collecting contributions to 

4 the plan and require such fiduciary to im5 plement written contribution collection pro6 cedures that are reasonable, diligent, and 

7 systematic;’’. 

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

9 this section shall apply to plan years beginning after De10 cember 31, 2022. 

11 SEC. 410. MULTIPLE EMPLOYER 403(B) PLANS. 

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

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

14 the following new paragraph: 

15 ‘‘(15) MULTIPLE EMPLOYER PLANS.— 

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

17 a church plan, this subsection shall not be 

18 treated as failing to apply to an annuity con19 tract solely by reason of such contract being 

20 purchased under a plan maintained by more 

21 than 1 employer. 

22 ‘‘(B) TREATMENT OF EMPLOYERS FAILING

23 TO MEET REQUIREMENTS OF PLAN.— 

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

25 plan maintained by more than 1 employer, 


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1 this subsection shall not be treated as fail2 ing to apply to an annuity contract held 

3 under such plan merely because of one or 

4 more employers failing to meet the require5 ments of this subsection if such plan satis6 fies rules similar to the rules of section 

7 413(e)(2) with respect to any such em8 ployer failure. 

9 ‘‘(ii) ADDITIONAL REQUIREMENTS IN

10 CASE OF NON-GOVERNMENTAL PLANS.—A 

11 plan shall not be treated as meeting the re12 quirements of this subparagraph unless the 

13 plan satisfies rules similar to the rules of 

14 subparagraph (A) or (B) of section 

15 413(e)(1), except in the case of a multiple 

16 employer plan maintained solely by any of 

17 the following: A State, a political subdivi18 sion of a State, or an agency or instrumen19 tality of any one or more of the fore20 going.’’. 

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

22 EMPLOYER PLAN.—Section 6057 of such Code is amend23 ed by redesignating subsection (g) as subsection (h) and 

24 by inserting after subsection (f) the following new sub25 section: 


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

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

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

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

7 of this section.’’. 

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

9 MULTIPLE EMPLOYER PLAN.—Section 6058 of such Code 

10 is amended by redesignating subsection (f) as subsection 

11 (g) and by inserting after subsection (e) the following new 

12 subsection: 

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

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

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

16 by reason of the plan under which such contracts are pur17 chased meeting the requirements of paragraph (15) there18 of, such plan shall be treated as a single plan for purposes 

19 of this section.’’. 

20 (d) AMENDMENTS TO EMPLOYEE RETIREMENT IN21 COME SECURITY ACT OF 1974.— 

22 (1) IN GENERAL.—Section 3(43)(A) of the Em23 ployee Retirement Income Security Act of 1974 is 

24 amended— 


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1 (A) in clause (ii), by striking ‘‘section 

2 501(a) of such Code or’’ and inserting ‘‘section 

3 501(a) of such Code, a plan that consists of 

4 contracts described in section 403(b) of such 

5 Code, or’’; and 

6 (B) in the flush text at the end, by striking 

7 ‘‘the plan.’’ and inserting ‘‘the plan, but such 

8 term shall include any program (other than a 

9 governmental plan) maintained for the benefit 

10 of the employees of more than 1 employer that 

11 consists of contracts described in section 403(b) 

12 of such Code and that meets the requirements 

13 of subparagraph (A) or (B) of section 413(e)(1) 

14 of such Code.’’. 

15 (2) CONFORMING AMENDMENTS.—Sections 

16 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee 

17 Retirement Income Security Act of 1974 are each 

18 amended by striking ‘‘section 401(a) of such Code 

19 or’’ and inserting ‘‘section 401(a) of such Code, a 

20 plan that consists of contracts described in section 

21 403(b) of such Code, or’’. 

22 (e) REGULATIONS RELATING TO EMPLOYER FAIL23 URE TO MEET MULTIPLE EMPLOYER PLAN REQUIRE24 MENTS.—The Secretary of the Treasury (or the Sec25 retary’s delegate) shall prescribe such regulations as may 


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1 be necessary to clarify, in the case of plans to which sec2 tion 403(b)(15) of the Internal Revenue Code of 1986 ap3 plies, the treatment of an employer departing such plan 

4 in connection with such employer’s failure to meet mul5 tiple employer plan requirements. 

6 (f) MODIFICATION OF MODEL PLAN LANGUAGE, 

7 ETC.— 

8 (1) PLAN NOTIFICATIONS.—The Secretary of 

9 the Treasury (or the Secretary’s delegate) shall mod10 ify the model plan language published under section 

11 413(e)(5) of the Internal Revenue Code of 1986 to 

12 include language that notifies participating employ13 ers described in section 501(c)(3), and which are ex14 empt from tax under section 501(a), that the plan 

15 is subject to the Employee Retirement Income Secu16 rity Act of 1974 and that such employer is a plan 

17 sponsor with respect to its employees participating 

18 in the multiple employer plan and, as such, has cer19 tain fiduciary duties with respect to the plan and to 

20 its employees. 

21 (2) MODEL PLANS FOR MULTIPLE EMPLOYER

22 403(B) NON-GOVERNMENTAL PLANS.—For plans to 

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

24 Code of 1986 applies (other than a plan maintained 

25 for its employees by a State, a political subdivision 


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

2 one or more of the foregoing), the Secretary of the 

3 Treasury shall publish model plan language similar 

4 to model plan language published under section 

5 413(e)(5) of such Code. 

6 (3) EDUCATIONAL OUTREACH TO EMPLOYERS

7 EXEMPT FROM TAX.—The Secretary of the Treasury 

8 (or the Secretary’s delegate) shall provide education 

9 and outreach to increase awareness to employers de10 scribed in section 501(c)(3) of the Internal Revenue 

11 Code of 1986, and which are exempt from tax under 

12 section 501(a) of such Code, that multiple employer 

13 plans are subject to the Employee Retirement In14 come Security Act of 1974 and that such employer 

15 is a plan sponsor with respect to its employees par16 ticipating in the multiple employer plan and, as 

17 such, has certain fiduciary duties with respect to the 

18 plan and to its employees. 

19 (g) NO INFERENCE WITH RESPECT TO CHURCH

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

21 the Internal Revenue Code of 1986 to an annuity contract 

22 purchased under a church plan (as defined in section 

23 414(e) of such Code) maintained by more than 1 em24 ployer, or to any application of rules similar to section 

25 413(e) of such Code to such a plan, no inference shall 


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

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

3 (h) EFFECTIVE DATE.— 

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

5 this section shall apply to plan years beginning after 

6 December 31, 2022. 

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

8 amendments made by subsection (a) shall be con9 strued as limiting the authority of the Secretary of 

10 the Treasury or the Secretary’s delegate (determined 

11 without regard to such amendment) to provide for 

12 the proper treatment of a failure to meet any re13 quirement applicable under the Internal Revenue 

14 Code of 1986 with respect to one employer (and its 

15 employees) in the case of a plan to which section 

16 403(b)(15) of the Internal Revenue Code of 1986 

17 applies. 

18 SEC. 411. TREATMENT OF STUDENT LOAN PAYMENTS AS 

19 ELECTIVE DEFERRALS FOR PURPOSES OF 

20 MATCHING CONTRIBUTIONS. 

21 (a) IN GENERAL.—Section 401(m)(4)(A) of the In22 ternal Revenue Code of 1986 is amended by striking 

23 ‘‘and’’ at the end of clause (i), by striking the period at 

24 the end of clause (ii) and inserting ‘‘, and’’, and by adding 

25 at the end the following new clause: 


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1 ‘‘(iii) subject to the requirements of 

2 paragraph (13), any employer contribution 

3 made to a defined contribution plan on be4 half of an employee on account of a quali5 fied student loan payment.’’. 

6 (b) QUALIFIED STUDENT LOAN PAYMENT.—Section 

7 401(m)(4) of such Code is amended by adding at the end 

8 the following new subparagraph: 

9 ‘‘(D) QUALIFIED STUDENT LOAN PAY10 MENT.—The term ‘qualified student loan pay11 ment’ means a payment made by an employee 

12 in repayment of a qualified education loan (as 

13 defined section 221(d)(1)) incurred by the em14 ployee to pay qualified higher education ex15 penses, but only— 

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

17 the aggregate for the year do not exceed 

18 an amount equal to— 

19 ‘‘(I) the limitation applicable 

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

21 if lesser, the employee’s compensation 

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

23 the year), reduced by 

24 ‘‘(II) the elective deferrals made 

25 by the employee for such year, and 


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

2 employer making the matching contribu3 tion under this paragraph that such pay4 ment has been made on such loan. 

5 For purposes of this subparagraph, the term 

6 ‘qualified higher education expenses’ means the 

7 cost of attendance (as defined in section 472 of 

8 the Higher Education Act of 1965, as in effect 

9 on the day before the date of the enactment of 

10 the Taxpayer Relief Act of 1997) at an eligible 

11 educational institution (as defined in section 

12 221(d)(2)).’’. 

13 (c) MATCHING CONTRIBUTIONS FOR QUALIFIED

14 STUDENT LOAN PAYMENTS.—Section 401(m) of such 

15 Code is amended by redesignating paragraph (13) as para16 graph (14), and by inserting after paragraph (12) the fol17 lowing new paragraph: 

18 ‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI19 FIED STUDENT LOAN PAYMENTS.— 

20 ‘‘(A) IN GENERAL.—For purposes of para21 graph (4)(A)(iii), an employer contribution 

22 made to a defined contribution plan on account 

23 of a qualified student loan payment shall be 

24 treated as a matching contribution for purposes 

25 of this title if— 


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1 ‘‘(i) the plan provides matching con2 tributions on account of elective deferrals 

3 at the same rate as contributions on ac4 count of qualified student loan payments, 

5 ‘‘(ii) the plan provides matching con6 tributions on account of qualified student 

7 loan payments only on behalf of employees 

8 otherwise eligible to receive matching con9 tributions on account of elective deferrals, 

10 ‘‘(iii) under the plan, all employees el11 igible to receive matching contributions on 

12 account of elective deferrals are eligible to 

13 receive matching contributions on account 

14 of qualified student loan payments, and 

15 ‘‘(iv) the plan provides that matching 

16 contributions on account of qualified stu17 dent loan payments vest in the same man18 ner as matching contributions on account 

19 of elective deferrals. 

20 ‘‘(B) TREATMENT FOR PURPOSES OF NON21 DISCRIMINATION RULES, ETC.— 

22 ‘‘(i) NONDISCRIMINATION RULES.— 

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

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

25 matching contributions described in paraVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 graph (4)(A)(iii) shall not fail to be treated 

2 as available to an employee solely because 

3 such employee does not have debt incurred 

4 under a qualified education loan (as de5 fined in section 221(d)(1)). 

6 ‘‘(ii) STUDENT LOAN PAYMENTS NOT

7 TREATED AS PLAN CONTRIBUTION.—Ex8 cept as provided in clause (iii), a qualified 

9 student loan payment shall not be treated 

10 as a contribution to a plan under this title. 

11 ‘‘(iii) MATCHING CONTRIBUTION

12 RULES.—Solely for purposes of meeting 

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

14 (12) of this subsection, or paragraph 

15 (11)(B)(i)(II), (12)(B), or (13)(D) of sub16 section (k), a plan may treat a qualified 

17 student loan payment as an elective defer18 ral or an elective contribution, whichever is 

19 applicable. 

20 ‘‘(iv) ACTUAL DEFERRAL PERCENT21 AGE TESTING.—In determining whether a 

22 plan meets the requirements of subsection 

23 (k)(3)(A)(ii) for a plan year, the plan may 

24 apply the requirements of such subsection 

25 separately with respect to all employees 


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1 who receive matching contributions de2 scribed in paragraph (4)(A)(iii) for the 

3 plan year. 

4 ‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE

5 CERTIFICATION.—The employer may rely on an 

6 employee certification of payment under para7 graph (4)(D)(ii).’’. 

8 (d) SIMPLE RETIREMENT ACCOUNTS.—Section 

9 408(p)(2) of such Code is amended by adding at the end 

10 the following new subparagraph: 

11 ‘‘(F) MATCHING CONTRIBUTIONS FOR

12 QUALIFIED STUDENT LOAN PAYMENTS.— 

13 ‘‘(i) IN GENERAL.—Subject to the 

14 rules of clause (iii), an arrangement shall 

15 not fail to be treated as meeting the re16 quirements of subparagraph (A)(iii) solely 

17 because under the arrangement, solely for 

18 purposes of such subparagraph, qualified 

19 student loan payments are treated as 

20 amounts elected by the employee under 

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

22 payments do not exceed— 

23 ‘‘(I) the applicable dollar amount 

24 under subparagraph (E) (after appli25 cation of section 414(v)) for the year 


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1 (or, if lesser, the employee’s com2 pensation (as defined in section 

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

4 ‘‘(II) any other amounts elected 

5 by the employee under subparagraph 

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

7 ‘‘(ii) QUALIFIED STUDENT LOAN PAY8 MENT.—For purposes of this subpara9 graph— 

10 ‘‘(I) IN GENERAL.—The term 

11 ‘qualified student loan payment’ 

12 means a payment made by an em13 ployee in repayment of a qualified 

14 education loan (as defined in section 

15 221(d)(1)) incurred by the employee 

16 to pay qualified higher education ex17 penses, but only if the employee cer18 tifies to the employer making the 

19 matching contribution that such pay20 ment has been made on such a loan. 

21 ‘‘(II) QUALIFIED HIGHER EDU22 CATION EXPENSES.—The term ‘quali23 fied higher education expenses’ has 

24 the same meaning as when used in 

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


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

2 shall apply to an arrangement only if, 

3 under the arrangement— 

4 ‘‘(I) matching contributions on 

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

7 employees otherwise eligible to elect 

8 contributions under subparagraph 

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

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

13 contributions on account of qualified 

14 student loan payments.’’. 

15 (e) 403(b) PLANS.—Section 403(b)(12)(A) of such 

16 Code is amended by adding at the end the following: ‘‘The 

17 fact that the employer offers matching contributions on 

18 account of qualified student loan payments as described 

19 in section 401(m)(13) shall not be taken into account in 

20 determining whether the arrangement satisfies the re21 quirements of clause (ii) (and any regulation there22 under).’’. 

23 (f) 457(b) PLANS.—Section 457(b) of such Code is 

24 amended by adding at the end the following: ‘‘A plan 

25 which is established and maintained by an employer which 


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1 is described in subsection (e)(1)(A) shall not be treated 

2 as failing to meet the requirements of this subsection sole3 ly because the plan, or another plan maintained by the 

4 employer which meets the requirements of section 401(a) 

5 or 403(b), provides for matching contributions on account 

6 of qualified student loan payments as described in section 

7 401(m)(13).’’. 

8 (g) REGULATORY AUTHORITY.—The Secretary shall 

9 prescribe regulations for purposes of implementing the 

10 amendments made by this section, including regulations— 

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

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

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

15 this section, at a different frequency than matching 

16 contributions are otherwise made under the plan, 

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

19 (2) permitting employers to establish reasonable 

20 procedures to claim matching contributions for such 

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

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

24 a claim must be made; and 


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1 (3) promulgating model amendments which 

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

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

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

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

7 this section shall apply to contributions made for plan 

8 years beginning after December 31, 2022. 

9 SEC. 412. APPLICATION OF CREDIT FOR SMALL EMPLOYER 

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

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

15 employer’’. 

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

17 this section shall take effect as if included in the enact18 ment of section 104 of the Setting Every Community Up 

19 for Retirement Enhancement Act of 2019. 

20 SEC. 413. MILITARY SPOUSE RETIREMENT PLAN ELIGI21 BILITY CREDIT FOR SMALL EMPLOYERS. 

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

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

25 section: 


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

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

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

5 retirement plan eligibility credit determined under this 

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

7 sum of— 

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

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

12 taxable year, plus 

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

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

16 $250. 

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

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

19 the taxable year which includes the date on which such 

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

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

24 this section— 


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

2 employer’ means an eligible employer (as defined in 

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

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

5 A rule similar to the rule of section 

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

7 section. 

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

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

11 means, with respect to any employer, any individual 

12 who is married (within the meaning of section 7703 

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

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

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

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

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

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

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

21 spouse. 

22 ‘‘(2) EXCLUSION OF HIGHLY COMPENSATED

23 EMPLOYEES.—With respect to any employer, the 

24 term ‘military spouse’ shall not include any indi25 vidual if such individual is a highly compensated emVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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

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

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

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

8 plan— 

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

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

12 on which such individual begins employment with 

13 such employer, and 

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

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

17 amount of employer contributions under such 

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

20 who is not a military spouse would be eligible 

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

23 ‘‘(B) immediately have a nonforfeitable 

24 right to the employee’s accrued benefit derived 

25 from employer contributions under such plan. 


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

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

3 section 414 shall be treated as one employer for purposes 

4 of this section.’’. 

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

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

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

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

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

13 retirement plan eligibility credit determined under 

14 section 45U(a).’’. 

15 (c) SPECIFIED CREDIT FOR PURPOSES OF CER16 TIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.— 

17 Section 3511(d)(2) of such Code is amended by redesig18 nating subparagraphs (F), (G), and (H) as subparagraphs 

19 (G), (H), and (I), respectively, and by inserting after sub20 paragraph (E) the following new subparagraph: 

21 ‘‘(F) section 45U (military spouse retire22 ment plan eligibility credit),’’. 

23 (d) CLERICAL AMENDMENT.—The table of sections 

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


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1 of such Code is amended by adding at the end the fol2 lowing new item: 

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

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 414. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 

7 CONTRIBUTING TO A PLAN. 

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

9 401(k)(4) of the Internal Revenue Code of 1986 is amend10 ed by inserting ‘‘(other than a de minimis financial incen11 tive)’’ after ‘‘any other benefit’’. 

12 (b) SECTION 403(B) PLANS.—Subparagraph (A) of 

13 section 403(b)(12) of such Code, as amended by the pre14 ceding provisions of this Act, is amended by adding at the 

15 end the following: ‘‘A plan shall not fail to satisfy clause 

16 (ii) solely by reason of offering a de minimis financial in17 centive to employees to elect to have the employer make 

18 contributions pursuant to a salary reduction agreement.’’. 

19 (c) EXEMPTION FROM PROHIBITED TRANSACTION

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

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

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

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

24 new paragraph: 


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1 ‘‘(24) the provision of a de minimis financial in2 centive described in section 401(k)(4)(A).’’. 

3 (d) AMENDMENT OF EMPLOYEE RETIREMENT IN4 COME SECURITY ACT OF 1974.—Subsection (b) of section 

5 408 of the Employee Retirement Income Security Act of 

6 1974 (29 U.S.C. 1108(b)) is amended by adding at the 

7 end the following new paragraph: 

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

9 incentive described in section 401(k)(4)(A) or sec10 tion 403(b)(12)(A) of the Internal Revenue Code of 

11 1986.’’. 

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

13 this section shall apply with respect to plan years begin14 ning after the date of enactment of this Act. 

15 SEC. 415. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 

16 ELECTIVE DEFERRAL FAILURES. 

17 (a) IN GENERAL.—Section 414 of the Internal Rev18 enue Code of 1986 is amended by adding at the end the 

19 following new subsection: 

20 ‘‘(aa) CORRECTING AUTOMATIC CONTRIBUTION ER21 RORS.— 

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

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

24 sections 401(a), 403(b), 408, or 457(b), as applica25 ble, solely by reason of a corrected error. 


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1 ‘‘(2) CORRECTED ERROR DEFINED.—For pur2 poses of this subsection, the term ‘corrected error’ 

3 means a reasonable administrative error in imple4 menting an automatic enrollment or automatic esca5 lation feature in accordance with the terms of an eli6 gible automatic contribution arrangement (as de7 fined under subsection (w)(3)), provided that such 

8 implementation error— 

‘‘(A) is corrected by the date that is 91 9 ⁄2

10 months after the end of the plan year during 

11 which the error occurred, 

12 ‘‘(B) is corrected in a manner that is fa13 vorable to the participant, and 

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

15 all similarly situated participants in a non16 discriminatory manner. 

17 Such correction may occur before or after the partic18 ipant has terminated employment and may occur 

19 without regard to whether the error is identified by 

20 the Secretary. 

21 ‘‘(3) REGULATIONS AND GUIDANCE FOR FAVOR22 ABLE CORRECTION METHODS.—The Secretary shall, 

23 by regulations or other guidance of general applica24 bility, specify the correction methods that are in a 


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1 manner favorable to the participant for purposes of 

2 paragraph (2)(B).’’. 

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

4 this section shall apply with respect to any errors with 

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

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

7 of this Act. 

8 SEC. 416. IMPROVING COVERAGE FOR PART-TIME WORK9 ERS. 

10 (a) IN GENERAL.—Section 202 of the Employee Re11 tirement Income Security Act of 1974 (29 U.S.C. 1052) 

12 is amended by adding at the end the following new sub13 section: 

14 ‘‘(c) SPECIAL RULE FOR CERTAIN PART-TIME EM15 PLOYEES.— 

16 ‘‘(1) IN GENERAL.—A pension plan that in17 cludes either a qualified cash or deferred arrange18 ment (as defined in section 401(k) of the Internal 

19 Revenue Code of 1986) or a salary reduction agree20 ment (as described in section 403(b) of such Code) 

21 shall not require, as a condition of participation in 

22 the arrangement or agreement, that an employee 

23 complete a period of service with the employer (or 

24 employers) maintaining the plan extending beyond 

25 the close of the earlier of— 


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1 ‘‘(A) the period permitted under subsection 

2 (a)(1) (determined without regard to subpara3 graph (B)(i) thereof); or 

4 ‘‘(B) the first 24-month period— 

5 ‘‘(i) consisting of 2 consecutive 12- 

6 month periods during each of which the 

7 employee has at least 500 hours of service; 

8 and 

9 ‘‘(ii) by the close of which the em10 ployee has attained the age of 21. 

11 ‘‘(2) EXCEPTION.—Paragraph (1)(B) shall not 

12 apply to any employee described in section 410(b)(3) 

13 of the Internal Revenue Code of 1986. 

14 ‘‘(3) COORDINATION WITH OTHER RULES.— 

15 ‘‘(A) IN GENERAL.—In the case of employ16 ees who are eligible to participate in the ar17 rangement or agreement solely by reason of 

18 paragraph (1)(B): 

19 ‘‘(i) EXCLUSIONS.—An employer may 

20 elect to exclude such employees from the 

21 application of subsections (a)(4), (k)(3), 

22 (k)(12), (k)(13), and (m)(2) of section 401 

23 of the Internal Revenue Code of 1986 and 

24 section 410(b) of such Code. 


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1 ‘‘(ii) NONDISCRIMINATION RULES.— 

2 Notwithstanding paragraph (1), section 

3 401(k)(15)(B)(i)(I) of such Code shall 

4 apply. 

5 ‘‘(iii) TIME OF PARTICIPATION.—The 

6 rules of subsection (a)(4) shall apply to 

7 such employees. 

8 ‘‘(B) TOP-HEAVY RULES.—An employer 

9 may elect to exclude all employees who are eligi10 ble to participate in a plan maintained by the 

11 employer solely by reason of paragraph (1)(B) 

12 from the application of the vesting and benefit 

13 requirements under subsections (b) and (c) of 

14 section 416 of the Internal Revenue Code of 

15 1986. 

16 ‘‘(4) 12-MONTH PERIOD.—For purposes of this 

17 subsection, 12-month periods shall be determined in 

18 the same manner as under the last sentence of sub19 section (a)(3)(A), except that 12-month periods be20 ginning before January 1, 2021, shall not be taken 

21 into account.’’. 

22 (b) VESTING.—Section 203(b) of the Employee Re23 tirement Income Security Act of 1974 (29 U.S.C. 

24 1053(a)) is amended by redesignating paragraph (4) as 


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1 paragraph (5) and by inserting after paragraph (3) the 

2 following new paragraph: 

3 ‘‘(4) PART-TIME EMPLOYEES.—For purposes of 

4 determining whether an employee who is eligible to 

5 participate in a qualified cash or deferred arrange6 ment or a salary reduction agreement under a plan 

7 solely by reason of section 202(c)(1)(B) has a non8 forfeitable right to employer contributions— 

9 ‘‘(A) except as provided in subparagraph 

10 (B), each 12-month period for which the em11 ployee has at least 500 hours of service shall be 

12 treated as a year of service; and 

13 ‘‘(B) paragraph (3) shall be applied by 

14 substituting ‘at least 500 hours of service’ for 

15 ‘more than 500 hours of service’ in subpara16 graph (A) thereof. 

17 For purposes of this paragraph, 12-month periods 

18 shall be determined in the same manner as under 

19 the last sentence of section 202(a)(3)(A), except that 

20 12-month periods beginning before January 1, 2021, 

21 shall not be taken into account.’’. 

22 (c) REDUCTION IN PERIOD SERVICE REQUIREMENT

23 FOR QUALIFIED CASH AND DEFERRED ARRANGE24 MENTS.—Section 401(k)(2)(D)(ii) of the Internal Revenue 


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1 Code of 1986 is amended by striking ‘‘3’’ and inserting 

2 ‘‘2’’. 

3 (d) PRE-2021 SERVICE.—Section 112(b) of the Set4 ting Every Community Up for Retirement Enhancement 

5 Act of 2019 (26 U.S.C. 401 note) is amended by striking 

6 ‘‘section 401(k)(2)(D)(ii)’’ and inserting ‘‘paragraphs 

7 (2)(D)(ii) and (15)(B)(iii) of section 401(k)’’. 

8 (e) EFFECTIVE DATES.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the amendments made by this section 

11 shall apply to plan years beginning after December 

12 31, 2022. 

13 (2) SUBSECTION (D).—The amendment made 

14 by subsection (d) shall take effect as if included in 

15 the enactment of section 112 of the Setting Every 

16 Community Up for Retirement Enhancement Act of 

17 2019. 

18 SEC. 417. DEFERRAL OF TAX FOR CERTAIN SALES OF EM19 PLOYER STOCK TO EMPLOYEE STOCK OWN20 ERSHIP PLAN SPONSORED BY S CORPORA21 TION. 

22 (a) IN GENERAL.—Section 1042(c)(1)(A) of the In23 ternal Revenue Code of 1986 is amended by striking ‘‘do24 mestic C corporation’’ and inserting ‘‘domestic corpora25 tion’’. 


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1 (b) 10 PERCENT LIMITATION ON APPLICATION OF

2 GAIN ON SALE OF S CORPORATION STOCK.—Section 

3 1042 of such Code is amended by adding at the end the 

4 following new subsection: 

5 ‘‘(h) APPLICATION OF SECTION TO SALE OF STOCK

6 IN S CORPORATION.—In the case of the sale of qualified 

7 securities of an S corporation, the election under sub8 section (a) may be made with respect to not more than 

9 10 percent of the amount realized on such sale for pur10 poses of determining the amount of gain not recognized 

11 and the extent to which (if at all) the amount realized 

12 on such sale exceeds the cost of qualified replacement 

13 property. The portion of adjusted basis that is properly 

14 allocable to the portion of the amount realized with respect 

15 to which the election is made under this subsection shall 

16 be taken into account for purposes of the preceding sen17 tence.’’. 

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

19 this section shall apply to sales after December 31, 2027. 

20 SEC. 418. CERTAIN SECURITIES TREATED AS PUBLICLY 

21 TRADED IN CASE OF EMPLOYEE STOCK OWN22 ERSHIP PLANS. 

23 (a) IN GENERAL.—Section 401(a)(35) of the Internal 

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

25 the following new subparagraph: 


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1 ‘‘(I) ESOP RULES RELATING TO PUBLICLY

2 TRADED SECURITIES.—In the case of an appli3 cable defined contribution plan which is an em4 ployee stock ownership plan, an employer secu5 rity shall be treated as described in subpara6 graph (G)(v) if— 

7 ‘‘(i) the security is the subject of 

8 priced quotations by at least 4 dealers, 

9 published and made continuously available 

10 on an interdealer quotation system (as 

11 such term is used in section 13 of the Se12 curities Exchange Act of 1934) which has 

13 made the request described in section 6(j) 

14 of such Act to be treated as an alternative 

15 trading system, 

16 ‘‘(ii) the security is not a penny stock 

17 (as defined by section 3(a)(51) of such 

18 Act), 

19 ‘‘(iii) the security is issued by a cor20 poration which is not a shell company (as 

21 such term is used in section 4(d)(6) of the 

22 Securities Act of 1933), a blank check 

23 company (as defined in section 7(b)(3) of 

24 such Act), or subject to bankruptcy pro25 ceedings, 


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1 ‘‘(iv) the security has a public float 

2 (as such term is used in section 240.12b– 

3 2 of title 17, Code of Federal Regulations) 

4 which has a fair market value of at least 

5 $1,000,000 and constitutes at least 10 per6 cent of the total shares issued and out7 standing. 

8 ‘‘(v) in the case of a security issued 

9 by a domestic corporation, the issuer pub10 lishes, not less frequently than annually, fi11 nancial statements audited by an inde12 pendent auditor registered with the Public 

13 Company Accounting Oversight Board es14 tablished under the Sarbanes-Oxley Act of 

15 2002, and 

16 ‘‘(vi) in the case of a security issued 

17 by a foreign corporation, the security is 

18 represented by a depositary share (as de19 fined under section 240.12b–2 of title 17, 

20 Code of Federal Regulations), or is issued 

21 by a foreign corporation incorporated in 

22 Canada and readily tradeable on an estab23 lished securities market in Canada, and 

24 the issuer— 


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1 ‘‘(I) is subject to, and in compli2 ance with, the reporting requirements 

3 of section 13 or 15(d) of the Securi4 ties Exchange Act of 1934 (15 U.S.C. 

5 78m or 78o(d)), 

6 ‘‘(II) is subject to, and in compli7 ance with, the reporting requirements 

8 of section 230.257 of title 17, Code of 

9 Federal Regulations, or 

10 ‘‘(III) is exempt from such re11 quirements under section 240.12g3– 

12 2(b) of title 17, Code of Federal Reg13 ulations.’’. 

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

15 this section shall apply to plan years beginning after De16 cember 31, 2027. 

17 SEC. 419. REMOVE REQUIRED MINIMUM DISTRIBUTION 

18 BARRIERS FOR LIFE ANNUITIES. 

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

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

21 the following new subparagraph: 

22 ‘‘(J) CERTAIN INCREASES IN PAYMENTS

23 UNDER A COMMERCIAL ANNUITY.—Nothing in 

24 this section shall prohibit a commercial annuity 

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


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1 is issued in connection with any eligible retire2 ment plan (within the meaning of section 

3 402(c)(8)(B), other than a defined benefit plan) 

4 from providing one or more of the following 

5 types of payments on or after the annuity start6 ing date: 

7 ‘‘(i) annuity payments that increase 

8 by a constant percentage, applied not less 

9 frequently than annually, at a rate that is 

10 less than 5 percent per year, 

11 ‘‘(ii) a lump sum payment that— 

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

13 payment period with respect to an an14 nuity or a full or partial commutation 

15 of the future annuity payments, pro16 vided that such lump sum is deter17 mined using reasonable actuarial 

18 methods and assumptions, as deter19 mined in good faith by the issuer of 

20 the contract, or 

21 ‘‘(II) accelerates the receipt of 

22 annuity payments that are scheduled 

23 to be received within the ensuing 12 

24 months, regardless of whether such 

25 acceleration shortens the payment peVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 riod with respect to the annuity, re2 duces the dollar amount of benefits to 

3 be paid under the contract, or results 

4 in a suspension of annuity payments 

5 during the period being accelerated, 

6 ‘‘(iii) an amount which is in the na7 ture of a dividend or similar distribution, 

8 provided that the issuer of the contract de9 termines such amount based on a reason10 able comparison of the actuarial factors as11 sumed when calculating the initial annuity 

12 payments and the issuer’s experience with 

13 respect to those factors, or 

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

15 does not exceed the excess of the total 

16 amount of the consideration paid for the 

17 annuity payments, less the aggregate 

18 amount of prior distributions or payments 

19 from or under the contract.’’. 

20 (b) EFFECTIVE DATE.—This section shall apply to 

21 calendar years ending after the date of the enactment of 

22 this Act. 

23 SEC. 420. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 

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

25 1 year after the date of the enactment of this Act, the 


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1 Secretary of the Treasury or the Secretary’s delegate 

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

3 shall amend the regulation issued by the Department of 

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

5 (79 Fed. Reg. 37633 (July 2, 2014)), as follows: 

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

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

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

9 of Treasury Regulation section 1.408–8 to eliminate 

10 the requirement that premiums for qualifying lon11 gevity annuity contracts be limited to a percentage 

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

13 corresponding changes to the regulations and related 

14 forms as are necessary to reflect the elimination of 

15 this requirement. 

16 (2) FACILITATE JOINT AND SURVIVOR BENE17 FITS.—The Secretary shall amend Q&A–17(c) of 

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

19 make such corresponding changes to the regulations 

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

21 in the case of a qualifying longevity annuity contract 

22 which was purchased with joint and survivor annuity 

23 benefits for the individual and the individual’s 

24 spouse which were permissible under the regulations 

25 at the time the contract was originally purchased, a 


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1 divorce occurring after the original purchase and be2 fore the annuity payments commence under the con3 tract will not affect the permissibility of the joint 

4 and survivor annuity benefits or other benefits under 

5 the contract, or require any adjustment to the 

6 amount or duration of benefits payable under the 

7 contract, provided that any qualified domestic rela8 tions order (within the meaning of section 414(p) of 

9 the Internal Revenue Code of 1986) or, in the case 

10 of an arrangement not subject to section 414(p) of 

11 such Code or section 206(d) of the Employee Retire12 ment Income Security Act of 1974 (29 U.S.C. 

13 1056(d)), any divorce or separation instrument (as 

14 defined in subsection (b))— 

15 (A) provides that the former spouse is en16 titled to the survivor benefits under the con17 tract; 

18 (B) does not modify the treatment of the 

19 former spouse as the beneficiary under the con20 tract who is entitled to the survivor benefits; or 

21 (C) does not modify the treatment of the 

22 former spouse as the measuring life for the sur23 vivor benefits under the contract. 

24 (3) PERMIT SHORT FREE LOOK PERIOD.—The 

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


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

2 such Q&A does not preclude a contract from includ3 ing a provision under which an employee may re4 scind the purchase of the contract within a period 

5 not exceeding 90 days from the date of purchase. 

6 (b) DIVORCE OR SEPARATION INSTRUMENT.—For 

7 purposes of subsection (a)(2), the term ‘‘divorce or separa8 tion instrument’’ means— 

9 (1) a decree of divorce or separate maintenance 

10 or a written instrument incident to such a decree, 

11 (2) a written separation agreement, or 

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

13 requiring a spouse to make payments for the sup14 port or maintenance of the other spouse. 

15 (c) EFFECTIVE DATES, ENFORCEMENT, AND INTER16 PRETATIONS.— 

17 (1) EFFECTIVE DATES.— 

18 (A) Paragraph (1) of subsection (a) shall 

19 be effective with respect to contracts purchased 

20 or received in an exchange on or after the date 

21 of the enactment of this Act. 

22 (B) Paragraphs (2) and (3) of subsection 

23 (a) shall be effective with respect to contracts 

24 purchased or received in an exchange on or 

25 after July 2, 2014. 


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1 (2) ENFORCEMENT AND INTERPRETATIONS.— 

2 Prior to the date on which the Secretary issues final 

3 regulations pursuant to subsection (a)— 

4 (A) the Secretary (or delegate) shall ad5 minister and enforce the law in accordance with 

6 subsection (a) and the effective dates in para7 graph (1) of this subsection; and 

8 (B) taxpayers may rely upon their reason9 able good faith interpretations of subsection (a). 

10 (d) REGULATORY SUCCESSOR PROVISION.—Any ref11 erence to a regulation under this section shall be treated 

12 as including a reference to any successor regulation there13 to. 

14 SEC. 421. INSURANCE-DEDICATED EXCHANGE-TRADED 

15 FUNDS. 

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

17 7 years after the date of the enactment of this Act, the 

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

19 shall amend the regulation issued by the Department of 

20 the Treasury relating to ‘‘Income Tax; Diversification Re21 quirements for Variable Annuity, Endowment, and Life 

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

23 1989), and make any necessary corresponding amend24 ments to other regulations, in order to facilitate the use 

25 of exchange-traded funds as investment options under 


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

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

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

4 (b) DESIGNATE CERTAIN AUTHORIZED PARTICI5 PANTS AND MARKET MAKERS AS ELIGIBLE INVESTORS.— 

6 The Secretary of the Treasury (or the Secretary’s dele7 gate) shall amend Treasury Regulation section 1.817– 

8 5(f)(3) to provide that satisfaction of the requirements in 

9 Treasury Regulation section 1.817–5(f)(2)(i) with respect 

10 to an exchange-traded fund shall not be prevented by rea11 son of beneficial interests in such a fund being held by 

12 1 or more authorized participants or market makers. 

13 (c) DEFINE RELEVANT TERMS.—In amending 

14 Treasury Regulation section 1.817–5(f)(3) in accordance 

15 with subsections (b) of this section, the Secretary of the 

16 Treasury (or the Secretary’s delegate) shall provide defini17 tions consistent with the following: 

18 (1) EXCHANGE-TRADED FUND.—The term ‘‘ex19 change-traded fund’’ means a regulated investment 

20 company, partnership, or trust— 

21 (A) that is registered with the Securities 

22 and Exchange Commission as an open-end in23 vestment company or a unit investment trust; 


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1 (B) the shares of which can be purchased 

2 or redeemed directly from the fund only by an 

3 authorized participant; and 

4 (C) the shares of which are traded 

5 throughout the day on a national stock ex6 change at market prices that may or may not 

7 be the same as the net asset value of the 

8 shares. 

9 (2) AUTHORIZED PARTICIPANT.—The term 

10 ‘‘authorized participant’’ means a financial institu11 tion that is a member or participant of a clearing 

12 agency registered under section 17A(b) of the Secu13 rities Exchange Act of 1934 that enters into a con14 tractual relationship with an exchange-traded fund 

15 pursuant to which the financial institution is per16 mitted to purchase and redeem shares directly from 

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

18 only if the contractual arrangement or applicable law 

19 precludes the financial institution from— 

20 (A) purchasing the shares for its own in21 vestment purposes rather than for the exclusive 

22 purpose of creating and redeeming such shares 

23 on behalf of third parties; and 

24 (B) selling the shares to third parties who 

25 are not market makers or otherwise described 


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1 in paragraphs (2) and (3) of Treasury Regula2 tion section 1.817–5(f). 

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

4 maker’’ means a financial institution that is a reg5 istered broker or dealer under section 15(b) of the 

6 Securities Exchange Act of 1934 that maintains li7 quidity for an exchange-traded fund on a national 

8 stock exchange by being always ready to buy and sell 

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

10 financial institution is contractually or legally pre11 cluded from selling or buying such shares to or from 

12 persons who are not authorized participants or oth13 erwise described in paragraphs (2) and (3) of Treas14 ury Regulations section 1.817–5(f). 

15 (d) EFFECTIVE DATE.—Subsections (b) and (c) shall 

16 apply to segregated asset account investments made on 

17 or after the date that is 7 years after the date of the enact18 ment of this Act. 

19 SEC. 422. RECOVERY OF RETIREMENT PLAN OVERPAY20 MENTS. 

21 (a) OVERPAYMENTS UNDER ERISA.—Section 206 of 

22 the Employee Retirement Income Security Act of 1974 

23 (29 U.S.C. 1056) is amended by adding at the end the 

24 following new subsection: 


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1 ‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT

2 OVERPAYMENTS.— 

3 ‘‘(1) GENERAL RULE.—In the case of an inad4 vertent benefit overpayment by any pension plan, the 

5 responsible plan fiduciary shall not be considered to 

6 have failed to comply with the requirements of this 

7 title merely because such fiduciary determines, in 

8 the exercise of its fiduciary discretion, not to seek 

9 recovery of all or part of such overpayment from— 

10 ‘‘(A) any participant or beneficiary, 

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

12 employer to— 

13 ‘‘(i) an individual account plan, pro14 vided that the amount needed to prevent or 

15 restore any impermissible forfeiture from 

16 any participant’s or beneficiary’s account 

17 arising in connection with the overpayment 

18 is, separately from and independently of 

19 the overpayment, allocated to such account 

20 pursuant to the nonforfeitability require21 ments of section 203 (for example, out of 

22 the plan’s forfeiture account, additional 

23 employer contributions, or recoveries from 

24 those responsible for the overpayment), or 


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1 ‘‘(ii) a defined benefit pension plan 

2 subject to the funding rules in part 3 of 

3 this subtitle B, unless the responsible plan 

4 fiduciary determines, in the exercise of its 

5 fiduciary discretion, that failure to recover 

6 all or part of the overpayment faster than 

7 required under such funding rules would 

8 materially affect the plan’s ability to pay 

9 benefits due to other participants and 

10 beneficiaries, or 

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

12 a fiduciary (including a plan sponsor or contrib13 uting employer acting in a fiduciary capacity) 

14 whose breach of its fiduciary duties resulted in 

15 such overpayment, provided that if the plan has 

16 established prudent procedures to prevent and 

17 minimize overpayment of benefits and the rel18 evant plan fiduciaries have followed such proce19 dures, an inadvertent benefit overpayment will 

20 not give rise to a breach of fiduciary duty. 

21 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY22 MENTS AND RECOVERY FROM RESPONSIBLE

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

24 respect to any inadvertent benefit overpayment 


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1 merely because, after discovering such overpayment, 

2 the responsible plan fiduciary— 

3 ‘‘(A) reduces future benefit payments to 

4 the correct amount provided for under the 

5 terms of the plan, or 

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

7 persons responsible for the overpayment. 

8 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

9 Nothing in this subsection shall relieve an employer 

10 of any obligation imposed on it to make contribu11 tions to a plan to meet the minimum funding stand12 ards under part 3 of this subtitle B or to prevent 

13 or restore an impermissible forfeiture in accordance 

14 with section 203. 

15 ‘‘(4) RECOUPMENT FROM PARTICIPANTS AND

16 BENEFICIARIES.—If the responsible plan fiduciary, 

17 in the exercise of its fiduciary discretion, decides to 

18 seek recoupment from a participant or beneficiary of 

19 all or part of an inadvertent benefit overpayment 

20 made by the plan to such participant or beneficiary, 

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

22 ‘‘(A) No interest or other additional 

23 amounts (such as collection costs or fees) are 

24 sought on overpaid amounts for any period. 


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1 ‘‘(B) If the plan seeks to recoup past over2 payments of a non-decreasing periodic benefit 

3 by reducing future benefit payments— 

4 ‘‘(i) the reduction ceases after the 

5 plan has recovered the full dollar amount 

6 of the overpayment, 

7 ‘‘(ii) the amount recouped each cal8 endar year does not exceed 10 percent of 

9 the full dollar amount of the overpayment, 

10 and 

11 ‘‘(iii) future benefit payments are not 

12 reduced to below 90 percent of the periodic 

13 amount otherwise payable under the terms 

14 of the plan. 

15 Alternatively, if the plan seeks to recoup past 

16 overpayments of a non-decreasing periodic ben17 efit through one or more installment payments, 

18 the sum of such installment payments in any 

19 calendar year does not exceed the sum of the 

20 reductions that would be permitted in such year 

21 under the preceding sentence. 

22 ‘‘(C) If the plan seeks to recoup past over23 payments of a benefit other than a non-decreas24 ing periodic benefit, the plan satisfies requireVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 ments developed by the Secretary for purposes 

2 of this subparagraph. 

3 ‘‘(D) Efforts to recoup overpayments are— 

4 ‘‘(i) not accompanied by threats of 

5 litigation, unless the responsible plan fidu6 ciary reasonably believes it could prevail in 

7 a civil action brought in Federal or State 

8 court to recoup the overpayments, and 

9 ‘‘(ii) not made through a collection 

10 agency or similar third party, unless the 

11 participant or beneficiary ignores or rejects 

12 efforts to recoup the overpayment following 

13 either a final judgment in Federal or State 

14 court or a settlement between the partici15 pant or beneficiary and the plan, in either 

16 case authorizing such recoupment. 

17 ‘‘(E) Recoupment of past overpayments to 

18 a participant is not sought from any beneficiary 

19 of the participant, including a spouse, surviving 

20 spouse, former spouse, or other beneficiary. 

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

22 first overpayment occurred more than 3 years 

23 before the participant or beneficiary is first no24 tified in writing of the error. 


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1 ‘‘(G) A participant or beneficiary from 

2 whom recoupment is sought is entitled to con3 test all or part of the recoupment pursuant to 

4 the plan’s claims procedures. 

5 ‘‘(H) In determining the amount of 

6 recoupment to seek, the responsible plan fidu7 ciary may take into account the hardship that 

8 recoupment likely would impose on the partici9 pant or beneficiary. 

10 ‘‘(5) EFFECT OF CULPABILITY.—Subpara11 graphs (A) through (F) of paragraph (4) shall not 

12 apply to protect a participant or beneficiary who is 

13 culpable. For purposes of this paragraph, a partici14 pant or beneficiary is culpable if the individual bears 

15 responsibility for the overpayment (such as through 

16 misrepresentations or omissions that led to the over17 payment), or if the individual knew, or had good 

18 reason to know under the circumstances, that the 

19 benefit payment or payments were materially in ex20 cess of the correct amount. Notwithstanding the pre21 ceding sentence, an individual is not culpable merely 

22 because the individual believed the benefit payment 

23 or payments were or might be in excess of the cor24 rect amount, if the individual raised that question 

25 with an authorized plan representative and was told 


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1 the payment or payments were not in excess of the 

2 correct amount. With respect to a culpable partici3 pant or beneficiary, efforts to recoup overpayments 

4 shall not be made through threats of litigation, un5 less a lawyer for the plan could make the representa6 tions required under Rule 11 of the Federal Rules 

7 of Civil Procedure if the litigation were brought in 

8 Federal court.’’. 

9 (b) OVERPAYMENTS UNDER INTERNAL REVENUE

10 CODE OF 1986.— 

11 (1) QUALIFICATION REQUIREMENTS.—Section 

12 414 of the Internal Revenue Code of 1986, as 

13 amended by this preceding provisions of this Act, is 

14 amended by adding at the end the following new 

15 subsection: 

16 ‘‘(bb) SPECIAL RULES APPLICABLE TO BENEFIT

17 OVERPAYMENTS.— 

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

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

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

21 treated as satisfying the requirements of section 

22 401(a) or 403) merely because— 

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

24 any participant, beneficiary, employer, plan 

25 sponsor, fiduciary, or other party on account of 


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1 any inadvertent benefit overpayment made by 

2 the plan, or 

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

4 increase past or future benefit payments to af5 fected participants and beneficiaries in order to 

6 adjust for prior inadvertent benefit overpay7 ments. 

8 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY9 MENTS AND RECOVERY FROM RESPONSIBLE

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

11 plan merely because, after discovering a benefit over12 payment, such plan— 

13 ‘‘(A) reduces future benefit payments to 

14 the correct amount provided for under the 

15 terms of the plan, or 

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

17 persons responsible for such overpayment. 

18 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

19 Nothing in this subsection shall relieve an employer 

20 of any obligation imposed on it to make contribu21 tions to a plan to meet the minimum funding stand22 ards under sections 412 and 430 or to prevent or re23 store an impermissible forfeiture in accordance with 

24 section 411. 


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

2 Notwithstanding paragraph (1), a plan to which 

3 paragraph (1) applies shall observe any limitations 

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

5 plan may enforce such limitations using any method 

6 approved by the Secretary of the Treasury for re7 couping benefits previously paid or allocations pre8 viously made in excess of such limitations. 

9 ‘‘(5) COORDINATION WITH OTHER QUALIFICA10 TION REQUIREMENTS.—The Secretary of the Treas11 ury may issue regulations or other guidance of gen12 eral applicability specifying how benefit overpay13 ments and their recoupment or non-recoupment 

14 from a participant or beneficiary shall be taken into 

15 account for purposes of satisfying any requirement 

16 applicable to a plan to which paragraph (1) ap17 plies.’’. 

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

19 is amended by adding at the end the following new 

20 paragraph: 

21 ‘‘(12) In the case of an inadvertent benefit 

22 overpayment from a plan to which section 

23 414(bb)(1) applies that is transferred to an eligible 

24 retirement plan by or on behalf of a participant or 

25 beneficiary— 


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

2 respect to which recoupment is not sought on 

3 behalf of the plan shall be treated as having 

4 been paid in an eligible rollover distribution if 

5 the payment would have been an eligible roll6 over distribution but for being an overpayment, 

7 and 

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

9 respect to which recoupment is sought on behalf 

10 of the plan shall be permitted to be returned to 

11 such plan and in such case shall be treated as 

12 an eligible rollover distribution transferred to 

13 such plan by the participant or beneficiary who 

14 received such overpayment (and the plans mak15 ing and receiving such transfer shall be treated 

16 as permitting such transfer). 

17 In any case in which recoupment is sought on behalf 

18 of the plan but is disputed by the participant or ben19 eficiary who received such overpayment, such dispute 

20 shall be subject to the claims procedures of the plan 

21 that made such overpayment, such plan shall notify 

22 the plan receiving the rollover of such dispute, and 

23 the plan receiving the rollover shall retain such over24 payment on behalf of the participant or beneficiary 

25 (and shall be entitled to treat such overpayment as 


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1 plan assets) pending the outcome of such proce2 dures.’’. 

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

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

5 of this Act. 

6 (d) CERTAIN ACTIONS BEFORE DATE OF ENACT7 MENT.—Plans, fiduciaries, employers, and plan sponsors 

8 are entitled to rely on— 

9 (1) a good faith interpretation of then existing 

10 administrative guidance for inadvertent benefit over11 payment recoupments and recoveries that com12 menced before the date of enactment of this Act, 

13 and 

14 (2) determinations made before the date of en15 actment of this Act by the responsible plan fidu16 ciary, in the exercise of its fiduciary discretion, not 

17 to seek recoupment or recovery of all or part of an 

18 inadvertent benefit overpayment. 

19 In the case of a benefit overpayment that occurred prior 

20 to the date of enactment of this Act, any installment pay21 ments by the participant or beneficiary to the plan or any 

22 reduction in periodic benefit payments to the participant 

23 or beneficiary, which were made in recoupment of such 

24 overpayment and which commenced prior to such date, 

25 may continue after such date. Nothing in this subsection 


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1 shall relieve a fiduciary from responsibility for an overpay2 ment that resulted from a breach of its fiduciary duties. 

3 SEC. 423. REDUCTION IN EXCISE TAX ON CERTAIN ACCU4 MULATIONS IN QUALIFIED RETIREMENT 

5 PLANS. 

6 (a) IN GENERAL.—Section 4974(a) of the Internal 

7 Revenue Code of 1986 is amended by striking ‘‘50 per8 cent’’ and inserting ‘‘25 percent’’. 

9 (b) REDUCTION IN EXCISE TAX ON FAILURES TO

10 TAKE REQUIRED MINIMUM DISTRIBUTIONS.—Section 

11 4974 of such Code is amended by adding at the end the 

12 following new subsection: 

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

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

15 who— 

16 ‘‘(A) corrects, during the correction win17 dow, a shortfall of distributions from an indi18 vidual retirement plan which resulted in imposi19 tion of a tax under subsection (a), and 

20 ‘‘(B) submits a return, during the correc21 tion window, reflecting such tax (as modified by 

22 this subsection), 

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

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


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

2 this subsection, the term ‘correction window’ means 

3 the period of time beginning on the date on which 

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

5 to a shortfall of distributions from an individual re6 tirement plan, and ending on the earlier of— 

7 ‘‘(A) the date on which the Secretary initi8 ates an audit, or otherwise demands payment, 

9 with respect to the shortfall of distributions, or 

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

11 year that begins after the end of the taxable 

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

13 imposed.’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2022. 

17 SEC. 424. PERFORMANCE BENCHMARKS FOR ASSET ALLO18 CATION FUNDS. 

19 (a) IN GENERAL.—Not later than 1 year after the 

20 date of enactment of this Act, the Secretary of Labor shall 

21 provide that, in the case of a designated investment alter22 native that contains a mix of asset classes, the adminis23 trator of a plan may, but is not required to, use a bench24 mark that is a blend of different broad-based securities 

25 market indices if— 


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1 (1) the blend is reasonably representative of the 

2 asset class holdings of the designated investment al3 ternative; 

4 (2) for purposes of determining the blend’s re5 turns for 1-, 5-, and 10-calendar-year periods (or for 

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

7 modified at least once per year to reflect changes in 

8 the asset class holdings of the designated investment 

9 alternative; 

10 (3) the blend is furnished to participants and 

11 beneficiaries in a manner that is reasonably designed 

12 to be understandable; and 

13 (4) each securities market index that is used for 

14 an associated asset class would separately satisfy the 

15 requirements of such regulation for such asset class. 

16 (b) STUDY.—Not later than 3 years after the date 

17 of enactment of this Act, the Secretary of Labor shall de18 liver a report to the Committees on Finance and Health, 

19 Education, Labor, and Pensions of the Senate and the 

20 Committees on Ways and Means and Education and 

21 Labor of the House of Representatives regarding the utili22 zation, effectiveness, and participants’ understanding of 

23 the benchmarking requirements under this section. 


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1 SEC. 425. REVIEW AND REPORT TO CONGRESS RELATING 

2 TO REPORTING AND DISCLOSURE REQUIRE3 MENTS. 

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

5 enactment of this Act, the Secretary of Labor, the Sec6 retary of the Treasury, and the Director of the Pension 

7 Benefit Guaranty Corporation shall review the reporting 

8 and disclosure requirements as applicable to each such 

9 agency head, of— 

10 (1) the Employee Retirement Income Security 

11 Act of 1974 applicable to pension plans (as defined 

12 in section 3(2) of such Act (29 U.S.C. 1002(2)); and 

13 (2) the Internal Revenue Code of 1986 applica14 ble to qualified retirement plans (as defined in sec15 tion 4974(c) of such Code, without regard to para16 graphs (4) and (5) of such section). 

17 (b) REPORT.— 

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

19 the date of enactment of this Act, the Secretary of 

20 Labor, the Secretary of the Treasury, and the Direc21 tor of the Pension Benefit Guaranty Corporation, 

22 jointly, and after consultation with a balanced group 

23 of participant and employer representatives, shall 

24 with respect to plans referenced in subsection (a) re25 port on the effectiveness of the applicable reporting 

26 and disclosure requirements and make such recVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 ommendations as may be appropriate to the Com2 mittee on Education and Labor and the Committee 

3 on Ways and Means of the House of Representatives 

4 and the Committee on Health, Education, Labor, 

5 and Pensions and the Committee on Finance of the 

6 Senate to consolidate, simplify, standardize, and im7 prove such requirements so as to simplify reporting 

8 for such plans and ensure that plans can furnish 

9 and participants and beneficiaries timely receive and 

10 better understand the information they need to mon11 itor their plans, plan for retirement, and obtain the 

12 benefits they have earned. 

13 (2) ANALYSIS OF EFFECTIVENESS.—To assess 

14 the effectiveness of the applicable reporting and dis15 closure requirements, the report shall include an 

16 analysis, based on plan data, of how participants 

17 and beneficiaries are providing preferred contact in18 formation, the methods by which plan sponsors and 

19 plans are furnishing disclosures, and the rate at 

20 which participants and beneficiaries (grouped by key 

21 demographics) are receiving, accessing, under22 standing, and retaining disclosures. 

23 (3) COLLECTION OF INFORMATION.—The agen24 cies shall conduct appropriate surveys and data col25 lection to obtain any needed information. 


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1 SEC. 426. ELIMINATING UNNECESSARY PLAN REQUIRE2 MENTS RELATED TO UNENROLLED PARTICI3 PANTS. 

4 (a) AMENDMENT OF EMPLOYEE RETIREMENT IN5 COME SECURITY ACT OF 1974.— 

6 (1) IN GENERAL.—Part 1 of subtitle B of sub7 chapter I of the Employee Retirement Income Secu8 rity Act of 1974 is amended by redesignating section 

9 111 as section 112 and by inserting after section 

10 110 the following new section: 

11 ‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE12 MENTS RELATED TO UNENROLLED PARTICI13 PANTS. 

14 ‘‘(a) IN GENERAL.—Notwithstanding any other pro15 vision of this title, with respect to any individual account 

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

17 than the notices and documents described in paragraphs 

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

19 title to any unenrolled participant if the unenrolled partici20 pant receives— 

21 ‘‘(1) an annual reminder notice of such partici22 pant’s eligibility to participate in such plan and any 

23 applicable election deadlines under the plan; and 

24 ‘‘(2) any document requested by such partici25 pant that the participant would be entitled to receive 

26 notwithstanding this section. 


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

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

3 employee who— 

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

5 account plan; 

6 ‘‘(2) has received— 

7 ‘‘(A) the summary plan description pursu8 ant to section 104(b); and 

9 ‘‘(B) any other notices related to eligibility 

10 under the plan required to be furnished under 

11 this title, or the Internal Revenue Code of 

12 1986, in connection with such participant’s ini13 tial eligibility to participate in such plan; 

14 ‘‘(3) is not participating in such plan; 

15 ‘‘(4) does not have an account balance in the 

16 plan; and 

17 ‘‘(5) satisfies such other criteria as the Sec18 retary of Labor may determine appropriate, as pre19 scribed in guidance issued in consultation with the 

20 Secretary of Treasury. 

21 For purposes of this section, any eligibility to participate 

22 in the plan following any period for which such employee 

23 was not eligible to participate shall be treated as initial 

24 eligibility. 


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

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

3 notice provided in accordance with section 2520.104b–1 

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

5 regulation), which— 

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

7 open season election period with respect to the plan 

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

9 reasonable period prior to the beginning of each plan 

10 year; 

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

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

13 to participate in the plan; and 

14 ‘‘(B) the key benefits and rights under the 

15 plan, with a focus on employer contributions 

16 and vesting provisions; and 

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

18 manner calculated to be understood by the average 

19 participant.’’. 

20 (2) CLERICAL AMENDMENT.—The table of con21 tents in section 1 of the Employee Retirement In22 come Security Act of 1974 is amended by striking 

23 the item relating to section 111 and by inserting 

24 after the item relating to section 110 the following 

25 new items: 


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

participants. 

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

1 (b) AMENDMENT OF INTERNAL REVENUE CODE OF

2 1986.—Section 414 of the Internal Revenue Code of 

3 1986, as amended by the preceding provisions of this Act, 

4 is amended by adding at the end the following new sub5 section: 

6 ‘‘(cc) ELIMINATING UNNECESSARY PLAN REQUIRE7 MENTS RELATED TO UNENROLLED PARTICIPANTS.— 

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

9 provision of this title, with respect to any defined 

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

11 document (other than the notices and documents de12 scribed in subparagraphs (A) and (B)) shall be re13 quired to be furnished under this title to any 

14 unenrolled participant if the unenrolled participant 

15 receives— 

16 ‘‘(A) an annual reminder notice of such 

17 participant’s eligibility to participate in such 

18 plan and any applicable election deadlines under 

19 the plan, and 

20 ‘‘(B) any document requested by such par21 ticipant that the participant would be entitled 

22 to receive notwithstanding this subsection. 


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1 ‘‘(2) UNENROLLED PARTICIPANT.—For pur2 poses of this subsection, the term ‘unenrolled partici3 pant’ means an employee who— 

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

5 contribution plan, 

6 ‘‘(B) has received— 

7 ‘‘(i) the summary plan description 

8 pursuant to section 104(b) of the Em9 ployee Retirement Income Security Act of 

10 1974, and 

11 ‘‘(ii) any other notices related to eligi12 bility under the plan and required to be 

13 furnished under this title, or the Employee 

14 Retirement Income Security Act of 1974, 

15 in connection with such participant’s initial 

16 eligibility to participate in such plan, 

17 ‘‘(C) is not participating in such plan, 

18 ‘‘(D) does not have an account balance in 

19 the plan, and 

20 ‘‘(E) satisfies such other criteria as the 

21 Secretary of the Treasury may determine ap22 propriate, as prescribed in guidance issued in 

23 consultation with the Secretary of Labor. 

24 For purposes of this subsection, any eligibility to 

25 participate in the plan following any period for 


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1 which such employee was not eligible to participate 

2 shall be treated as initial eligibility. 

3 ‘‘(3) ANNUAL REMINDER NOTICE.—For pur4 poses of this subsection, the term ‘annual reminder 

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

6 of the Employee Retirement Income Security Act of 

7 1974.’’. 

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

9 this section shall apply to plan years beginning after De10 cember 31, 2022. 

11 SEC. 427. RETIREMENT SAVINGS LOST AND FOUND. 

12 (a) IN GENERAL.— 

13 (1) ESTABLISHMENT OF RETIREMENT SAVINGS

14 LOST AND FOUND.—Part 5 of title I of the Em15 ployee Retirement Income Security Act of 1974 (29 

16 U.S.C. 1341 et seq.) is amended by adding at the 

17 end the following: 

18 ‘‘SEC. 523. RETIREMENT SAVINGS LOST AND FOUND. 

19 ‘‘(a) ESTABLISHMENT.— 

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

21 after the date of the enactment of this section, the 

22 Secretary of Labor, in consultation with the Sec23 retary of the Treasury, shall establish an online 

24 searchable database (to be managed by the Depart25 ment of Labor in accordance with this section) to be 


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1 known as the ‘Retirement Savings Lost and Found’. 

2 The Retirement Savings Lost and Found shall— 

3 ‘‘(A) allow an individual to search for in4 formation that enables the individual to locate 

5 the administrator of any plan described in para6 graph (2) with respect to which the individual 

7 is or was a participant or beneficiary, and pro8 vide contact information for the administrator 

9 of any such plan; 

10 ‘‘(B) allow the Department of Labor to as11 sist such an individual in locating any such plan 

12 of the individual; and 

13 ‘‘(C) allow the Department of Labor to 

14 make any necessary changes to contact infor15 mation on record for the administrator based 

16 on any changes to the plan due to merger or 

17 consolidation of the plan with any other plan, 

18 division of the plan into two or more plans, 

19 bankruptcy, termination, change in name of the 

20 plan, change in name or address of the admin21 istrator, or other causes. 

22 The Retirement Savings Lost and Found established 

23 under this paragraph shall include information re24 ported under this section and other relevant infor25 mation obtained by the Department of Labor. 


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

2 this paragraph is a plan to which the vesting stand3 ards of section 203 apply. 

4 ‘‘(b) ADMINISTRATION.—The Retirement Savings 

5 Lost and Found established under subsection (a) shall 

6 provide individuals described in subsection (a)(1) only 

7 with the ability to search for information that enables the 

8 individual to locate the administrator and contact informa9 tion for the administrator of any plan with respect to 

10 which the individual is or was a participant or beneficiary, 

11 sufficient to allow the individual to locate the individual’s 

12 plan in order to recover any benefit owing to the individual 

13 under the plan. 

14 ‘‘(c) SAFEGUARDING PARTICIPANT PRIVACY AND SE15 CURITY.—In establishing the Retirement Savings Lost 

16 and Found under subsection (a), the Department of Labor 

17 shall take all necessary and proper precautions to ensure 

18 that individuals’ plan information maintained by the Re19 tirement Savings Lost and Found is protected. 

20 ‘‘(d) DEFINITION OF ADMINISTRATOR.—For pur21 poses of this section, the term ‘administrator’ has the 

22 meaning given such term in section 3(16)(A). 

23 ‘‘(e) INFORMATION COLLECTION FROM PLANS.—Ef24 fective with respect to plan years beginning after the sec25 ond December 31 occurring after the date of the enactVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 ment of this subsection, the administrator of a plan to 

2 which the vesting standards of section 203 apply shall sub3 mit to the Department of Labor, at such time and in such 

4 form and manner as is prescribed in regulations— 

5 ‘‘(1) the information described in paragraphs 

6 (1) through (4) of section 6057(b) of the Internal 

7 Revenue Code of 1986; 

8 ‘‘(2) the information described in subpara9 graphs (A) and (B) of section 6057(a)(2) of such 

10 Code; 

11 ‘‘(3) the name and taxpayer identifying number 

12 of each participant or former participant in the 

13 plan— 

14 ‘‘(A) who, during the current plan year or 

15 any previous plan year, was reported under sec16 tion 6057(a)(2)(C) of such Code, and with re17 spect to whom the benefits described in clause 

18 (ii) thereof were fully paid during the plan year; 

19 ‘‘(B) with respect to whom any amount 

20 was distributed under section 401(a)(31)(B) of 

21 such Code during the plan year; or 

22 ‘‘(C) with respect to whom a deferred an23 nuity contract was distributed during the plan 

24 year; 


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1 ‘‘(4) in the case of a participant or former par2 ticipant to whom paragraph (3) applies— 

3 ‘‘(A) in the case of a participant described 

4 in subparagraph (B) thereof, the name and ad5 dress of the designated trustee or issuer de6 scribed in section 401(a)(31)(B)(i) of such 

7 Code and the account number of the individual 

8 retirement plan to which the amount was dis9 tributed; and 

10 ‘‘(B) in the case of a participant described 

11 in subparagraph (C) thereof, the name and ad12 dress of the issuer of such annuity contract and 

13 the contract or certificate number; and 

14 ‘‘(5) such other information as the Secretary of 

15 Labor may require. 

16 ‘‘(f) INFORMATION COLLECTION FROM FEDERAL

17 AGENCIES.—On request, the Secretary of Labor may ac18 cess and receive such information collected by other Fed19 eral agencies as may be necessary and appropriate to per20 form work related to the Retirement Savings Lost and 

21 Found. 

22 ‘‘(g) PROGRAM INTEGRITY AUDIT.—On an annual 

23 basis for each of the first 5 years beginning one year after 

24 the establishment of the database in subsection (a)(1) and 

25 every 5 years thereafter, the Inspector General of the DeVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 partment of Labor shall conduct an audit of the adminis2 tration of the Retirement Savings Lost and Found.’’. 

3 (3) CONFORMING AMENDMENT.—The table of 

4 contents for the Employee Retirement Income Secu5 rity Act of 1974 (29 U.S.C. 1001 et seq.) is amend6 ed by inserting after the item relating to section 522 

7 the following: 

‘‘Sec. 523.Retirement Savings Lost and Found.’’. 

8 SEC. 428. UPDATING DOLLAR LIMIT FOR MANDATORY DIS9 TRIBUTIONS. 

10 (a) IN GENERAL.—Section 203(e)(1) of the Em11 ployee Retirement Income Security Act of 1974 and sec12 tions 401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal 

13 Revenue Code of 1986 are each amended by striking 

14 ‘‘$5,000’’ and inserting ‘‘$7,000’’. 

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

16 this section shall apply to distributions made after Decem17 ber 31, 2022. 

18 SEC. 429. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 

19 RESOLUTION SYSTEM. 

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

21 the Internal Revenue Code of 1986 or regulations pre22 scribed by the Secretary of the Treasury or the Secretary’s 

23 delegate (referred to in this section as the ‘‘Secretary’’), 

24 any eligible inadvertent failure to comply with the rules 

25 applicable under section 401(a), 403(a), 403(b), 408(p), 


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1 or 408(k) of such Code may be self-corrected under the 

2 Employee Plans Compliance Resolution System (as de3 scribed in Revenue Procedure 2021–30, or any successor 

4 guidance, and hereafter in this section referred to as the 

5 ‘‘EPCRS’’), except to the extent that such failure was 

6 identified by the Secretary prior to any actions which dem7 onstrate a commitment to implement a self-correction. 

8 Revenue Procedure 2021–30 is deemed amended as of the 

9 date of the enactment of this Act to provide that the cor10 rection period under section 9.02 of such Revenue Proce11 dure (or any successor guidance) for an eligible inad12 vertent failure, except as otherwise provided under such 

13 Code or in regulations prescribed by the Secretary, is in14 definite and has no last day, other than with respect to 

15 failures identified by the Secretary prior to any self-correc16 tion as described in the preceding sentence. 

17 (b) LOAN ERRORS.—In the case of an eligible inad18 vertent failure relating to a loan from a plan to a partici19 pant— 

20 (1) such failure may be self-corrected under 

21 subsection (a) according to the rules of section 6.07 

22 of Revenue Procedure 2021–30 (or any successor 

23 guidance), including the provisions related to wheth24 er a deemed distribution must be reported on Form 

25 1099–R; and 


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1 (2) the Secretary of Labor shall treat any such 

2 failure which is so self-corrected under subsection 

3 (a) as meeting the requirements of the Voluntary Fi4 duciary Correction Program of the Department of 

5 Labor if, with respect to the violation of the fidu6 ciary standards of the Employee Retirement Income 

7 Security Act of 1974, there is a similar loan error 

8 eligible for correction under EPCRS and the loan 

9 error is corrected in such manner. 

10 (c) EPCRS FOR IRAS.—The Secretary shall expand 

11 the EPCRS to allow custodians of individual retirement 

12 plans (as defined in section 7701(a)(37) of the Internal 

13 Revenue Code of 1986) to address eligible inadvertent fail14 ures with respect to an individual retirement plan (as so 

15 defined), including (but not limited to)— 

16 (1) waivers of the excise tax which would other17 wise apply under section 4974 of the Internal Rev18 enue Code of 1986; 

19 (2) under the self-correction component of the 

20 EPCRS, waivers of the 60-day deadline for a roll21 over where the deadline is missed for reasons beyond 

22 the reasonable control of the account owner; and 

23 (3) rules permitting a nonspouse beneficiary to 

24 return distributions to an inherited individual retire25 ment plan described in section 408(d)(3)(C) of the 


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1 Internal Revenue Code of 1986 in a case where, due 

2 to an inadvertent error by a service provider, the 

3 beneficiary had reason to believe that the distribu4 tion could be rolled over without inclusion in income 

5 of any part of the distributed amount. 

6 (d) ADDITIONAL SAFE HARBORS.—The Secretary 

7 shall expand the EPCRS to provide additional safe harbor 

8 means of correcting eligible inadvertent failures described 

9 in subsection (a), including safe harbor means of calcu10 lating the earnings which must be restored to a plan in 

11 cases where plan assets have been depleted by reason of 

12 an eligible inadvertent failure. 

13 (e) ELIGIBLE INADVERTENT FAILURE.—For pur14 poses of this section— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the term ‘‘eligible inadvertent failure’’ 

17 means a failure that occurs despite the existence of 

18 practices and procedures which— 

19 (A) satisfy the standards set forth in sec20 tion 4.04 of Revenue Procedure 2021–30 (or 

21 any successor guidance); or 

22 (B) satisfy similar standards in the case of 

23 an individual retirement plan. 

24 (2) EXCEPTION.—The term ‘‘eligible inad25 vertent failure’’ shall not include any failure which 


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1 is egregious, relates to the diversion or misuse of 

2 plan assets, or is directly or indirectly related to an 

3 abusive tax avoidance transaction. 

4 (f) APPLICATION OF CERTAIN REQUIREMENTS FOR

5 CORRECTING ERRORS.—This section shall not apply to 

6 any failure unless the correction of such failure under this 

7 section is made in conformity with the general principles 

8 that apply to corrections of such failures under the Inter9 nal Revenue Code of 1986, including regulations or other 

10 guidance issued thereunder and including those principles 

11 and corrections set forth in Revenue Procedure 2021–30 

12 (or any successor guidance). 

13 SEC. 430. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE14 QUIREMENT FOR GOVERNMENTAL SECTION 

15 457(B) PLANS. 

16 (a) IN GENERAL.—Section 457(b)(4) of the Internal 

17 Revenue Code of 1986 is amended to read as follows: 

18 ‘‘(4) which provides that compensation— 

19 ‘‘(A) in the case of an eligible employer de20 scribed in subsection (e)(1)(A), will be deferred 

21 only if an agreement providing for such deferral 

22 has been entered into before the compensation 

23 is currently available to the individual, and 

24 ‘‘(B) in any other case, will be deferred for 

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1 viding for such deferral has been entered into 

2 before the beginning of such month,’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 431. ONE-TIME ELECTION FOR QUALIFIED CHARI7 TABLE DISTRIBUTION TO SPLIT-INTEREST 

8 ENTITY; INCREASE IN QUALIFIED CHARI9 TABLE DISTRIBUTION LIMITATION. 

10 (a) ONE-TIME ELECTION FOR QUALIFIED CHARI11 TABLE DISTRIBUTION TO SPLIT-INTEREST ENTITY.— 

12 Section 408(d)(8) of the Internal Revenue Code of 1986 

13 is amended by adding at the end the following new sub14 paragraph: 

15 ‘‘(F) ONE-TIME ELECTION FOR QUALIFIED

16 CHARITABLE DISTRIBUTION TO SPLIT-INTEREST

17 ENTITY.— 

18 ‘‘(i) IN GENERAL.—A taxpayer may 

19 for a taxable year elect under this subpara20 graph to treat as meeting the requirement 

21 of subparagraph (B)(i) any distribution 

22 from an individual retirement account 

23 which is made directly by the trustee to a 

24 split-interest entity, but only if— 


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1 ‘‘(I) an election is not in effect 

2 under this subparagraph for a pre3 ceding taxable year, 

4 ‘‘(II) the aggregate amount of 

5 distributions of the taxpayer with re6 spect to which an election under this 

7 subparagraph is made does not exceed 

8 $50,000, and 

9 ‘‘(III) such distribution meets the 

10 requirements of clauses (iii) and (iv). 

11 ‘‘(ii) SPLIT-INTEREST ENTITY.—For 

12 purposes of this subparagraph, the term 

13 ‘split-interest entity’ means— 

14 ‘‘(I) a charitable remainder annu15 ity trust (as defined in section 

16 664(d)(1)), but only if such trust is 

17 funded exclusively by qualified chari18 table distributions, 

19 ‘‘(II) a charitable remainder 

20 unitrust (as defined in section 

21 664(d)(2)), but only if such unitrust 

22 is funded exclusively by qualified char23 itable distributions, or 

24 ‘‘(III) a charitable gift annuity 

25 (as defined in section 501(m)(5)), but 


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1 only if such annuity is funded exclu2 sively by qualified charitable distribu3 tions and commences fixed payments 

4 of 5 percent or greater not later than 

5 1 year from the date of funding. 

6 ‘‘(iii) CONTRIBUTIONS MUST BE OTH7 ERWISE DEDUCTIBLE.—A distribution 

8 meets the requirement of this clause only 

9 if— 

10 ‘‘(I) in the case of a distribution 

11 to a charitable remainder annuity 

12 trust or a charitable remainder 

13 unitrust, a deduction for the entire 

14 value of the remainder interest in the 

15 distribution for the benefit of a speci16 fied charitable organization would be 

17 allowable under section 170 (deter18 mined without regard to subsection 

19 (b) thereof and this paragraph), and 

20 ‘‘(II) in the case of a charitable 

21 gift annuity, a deduction in an 

22 amount equal to the amount of the 

23 distribution reduced by the value of 

24 the annuity described in section 

25 501(m)(5)(B) would be allowable 


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1 under section 170 (determined with2 out regard to subsection (b) thereof 

3 and this paragraph). 

4 ‘‘(iv) LIMITATION ON INCOME INTER5 ESTS.—A distribution meets the require6 ments of this clause only if— 

7 ‘‘(I) no person holds an income 

8 interest in the split-interest entity 

9 other than the individual for whose 

10 benefit such account is maintained, 

11 the spouse of such individual, or both, 

12 and 

13 ‘‘(II) the income interest in the 

14 split-interest entity is nonassignable. 

15 ‘‘(v) SPECIAL RULES.— 

16 ‘‘(I) CHARITABLE REMAINDER

17 TRUSTS.—Notwithstanding section 

18 664(b), distributions made from a 

19 trust described in subclause (I) or (II) 

20 of clause (ii) shall be treated as ordi21 nary income in the hands of the bene22 ficiary to whom the annuity described 

23 in section 664(d)(1)(A) or the pay24 ment described in section 

25 664(d)(2)(A) is paid. 


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1 ‘‘(II) CHARITABLE GIFT ANNU2 ITIES.—Qualified charitable distribu3 tions made to fund a charitable gift 

4 annuity shall not be treated as an in5 vestment in the contract for purposes 

6 of section 72(c).’’. 

7 (b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 

8 such Code, as amended by subsection (a), is amended by 

9 adding at the end the following new subparagraph: 

10 ‘‘(G) INFLATION ADJUSTMENT.— 

11 ‘‘(i) IN GENERAL.—In the case of any 

12 taxable year beginning after 2022, each of 

13 the dollar amounts in subparagraphs (A) 

14 and (F) shall be increased by an amount 

15 equal to— 

16 ‘‘(I) such dollar amount, multi17 plied by 

18 ‘‘(II) the cost-of-living adjust19 ment determined under section 1(f)(3) 

20 for the calendar year in which the tax21 able year begins, determined by sub22 stituting ‘calendar year 2021’ for ‘cal23 endar year 2016’ in subparagraph 

24 (A)(ii) thereof. 


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1 ‘‘(ii) ROUNDING.—If any dollar 

2 amount increased under clause (i) is not a 

3 multiple of $1,000, such dollar amount 

4 shall be rounded to the nearest multiple of 

5 $1,000.’’. 

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

7 this section shall apply to distributions made in taxable 

8 years ending after the date of the enactment of this Act. 

9 SEC. 432. DISTRIBUTIONS TO FIREFIGHTERS. 

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

11 72(t)(10) of the Internal Revenue Code of 1986 is amend12 ed by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a dis13 tribution from a plan described in clause (iii), (iv), or (vi) 

14 of section 402(c)(8)(B) to an employee who provides fire15 fighting services’’. 

16 (b) CONFORMING AMENDMENT.—The heading of 

17 paragraph (10) of section 72(t) of such Code is amended 

18 by striking ‘‘IN GOVERNMENTAL PLANS’’ and inserting 

19 ‘‘AND PRIVATE SECTOR FIREFIGHTERS’’. 

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

21 this section shall apply to distributions made after Decem22 ber 31, 2022. 


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1 SEC. 433. EXCLUSION OF CERTAIN DISABILITY-RELATED 

2 FIRST RESPONDER RETIREMENT PAYMENTS. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting after section 139B the following new section: 

6 ‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE7 SPONDER RETIREMENT PAYMENTS. 

8 ‘‘(a) IN GENERAL.—In the case of an individual who 

9 receives qualified first responder retirement payments for 

10 any taxable year, gross income shall not include so much 

11 of such payments as do not exceed the annualized exclud12 able disability amount with respect to such individual. 

13 ‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT

14 PAYMENTS.—For purposes of this section, the term ‘quali15 fied first responder retirement payments’ means, with re16 spect to any taxable year, any pension or annuity which 

17 but for this section would be includible in gross income 

18 for such taxable year and which is received— 

19 ‘‘(1) from a plan described in clause (iii), (iv), 

20 (v), or (vi) of section 402(c)(8)(B), and 

21 ‘‘(2) in connection with such individual’s quali22 fied first responder service. 

23 ‘‘(c) ANNUALIZED EXCLUDABLE DISABILITY

24 AMOUNT.—For purposes of this section— 

25 ‘‘(1) IN GENERAL.—The term ‘annualized ex26 cludable disability amount’ means, with respect to 


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1 any individual, the service-connected excludable dis2 ability amounts which are properly attributable to 

3 the 12-month period immediately preceding the date 

4 on which such individual attains retirement age. 

5 ‘‘(2) SERVICE-CONNECTED EXCLUDABLE DIS6 ABILITY AMOUNT.—The term ‘service-connected ex7 cludable disability amount’ means periodic payments 

8 received by an individual which— 

9 ‘‘(A) are not includible in such individual’s 

10 gross income under section 104(a)(1), 

11 ‘‘(B) are received in connection with such 

12 individual’s qualified first responder service, 

13 and 

14 ‘‘(C) terminate when such individual at15 tains retirement age. 

16 ‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY17 MENTS.—In the case of an individual who only re18 ceives service-connected excludable disability 

19 amounts properly attributable to a portion of the 12- 

20 month period described in paragraph (1), such para21 graph shall be applied by multiplying such amounts 

22 by the ratio of 365 to the number of days in such 

23 period to which such amounts were properly attrib24 utable. 


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1 ‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 

2 purposes of this section, the term ‘qualified first responder 

3 service’ means service as a law enforcement officer, fire4 fighter, paramedic, or emergency medical technician.’’. 

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

6 for part III of subchapter B of chapter 1 of such Code 

7 is amended by inserting after the item relating to section 

8 139B the following new item: 

‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 

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

10 this section shall apply to amounts received with respect 

11 to taxable years beginning after December 31, 2027. 

12 SEC. 434. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM13 ITATIONS FOR EXCISE TAX ON EXCESS CON14 TRIBUTIONS AND CERTAIN ACCUMULATIONS. 

15 Section 6501(l) of the Internal Revenue Code of 1986 

16 is amended by adding at the end the following new para17 graph: 

18 ‘‘(4) INDIVIDUAL RETIREMENT PLANS.— 

19 ‘‘(A) IN GENERAL.—For purposes of any 

20 tax imposed by section 4973 or 4974 in connec21 tion with an individual retirement plan, the re22 turn referred to in this section shall be the in23 come tax return filed by the person on whom 

24 the tax under such section is imposed for the 


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1 year in which the act (or failure to act) giving 

2 rise to the liability for such tax occurred. 

3 ‘‘(B) RULE IN CASE OF INDIVIDUALS NOT

4 REQUIRED TO FILE RETURN.—In the case of a 

5 person who is not required to file an income tax 

6 return for such year— 

7 ‘‘(i) the return referred to in this sec8 tion shall be the income tax return that 

9 such person would have been required to 

10 file but for the fact that such person was 

11 not required to file such return, and 

12 ‘‘(ii) the 3-year period referred to in 

13 subsection (a) with respect to the return 

14 shall be deemed to begin on the date by 

15 which the return would have been required 

16 to be filed (excluding any extension there17 of).’’. 

18 SEC. 435. REQUIREMENT TO PROVIDE PAPER STATEMENTS 

19 IN CERTAIN CASES. 

20 (a) IN GENERAL.—Section 105(a)(2) of the Em21 ployee Retirement Income Security Act of 1974 (29 

22 U.S.C. 1025(a)(2)) is amended— 

23 (1) in subparagraph (A)(iv), by inserting ‘‘sub24 ject to subparagraph (E),’’ before ‘‘may be deliv25 ered’’; and 


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1 (2) by adding at the end the following: 

2 ‘‘(E) PROVISION OF PAPER STATE3 MENTS.—With respect to at least 1 pension 

4 benefit statement furnished for a calendar year 

5 with respect to an individual account plan 

6 under paragraph (1)(A), and with respect to at 

7 least 1 pension benefit statement furnished 

8 every 3 calendar years with respect to a defined 

9 benefit plan under paragraph (1)(B), such 

10 statement shall be furnished on paper in writ11 ten form except— 

12 ‘‘(i) in the case of a plan that fur13 nishes such statement in accordance with 

14 section 2520.104b–1(c) of title 29, Code of 

15 Federal Regulations; or 

16 ‘‘(ii) in the case of a plan that permits 

17 a participant or beneficiary to request that 

18 the statements referred to in the matter 

19 preceding clause (i) be furnished by elec20 tronic delivery, if the participant or bene21 ficiary requests that such statements be 

22 delivered electronically and the statements 

23 are so delivered.’’. 

24 (b) IMPLEMENTATION.— 


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1 (1) IN GENERAL.—The Secretary of Labor 

2 shall, not later than December 31, 2022, update sec3 tion 2520.104b–1(c) of title 29, Code of Federal 

4 Regulations, to provide that a plan may furnish the 

5 statements referred to in subparagraph (E) of sec6 tion 105(a)(2) by electronic delivery only if, in addi7 tion to meeting the other requirements under the 

8 regulations— 

9 (A) such plan furnishes each participant or 

10 beneficiary, including participants described in 

11 subparagraph (B), a one-time initial notice on 

12 paper in written form, prior to the electronic 

13 delivery of any pension benefit statement, of 

14 their right to request that all documents re15 quired to be disclosed under title I of the Em16 ployee Retirement Income Security Act of 1974 

17 be furnished on paper in written form; and 

18 (B) such plan furnishes each participant 

19 who is separated from service with at least 1 

20 pension benefit statement on paper in written 

21 form for each calendar year, unless, on election 

22 of the participant, the participant receives such 

23 statements electronically. 

24 (2) OTHER GUIDANCE.—In implementing the 

25 amendment made by subsection (a) with respect to 


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1 a plan that discloses required documents or state2 ments electronically, in accordance with applicable 

3 guidance governing electronic disclosure by the De4 partment of Labor (with the exception of section 

5 2520.104b–1(c) of title 29, Code of Federal Regula6 tions), the Secretary of Labor shall, not later than 

7 December 31, 2022, update such guidance to the ex8 tent necessary to ensure that— 

9 (A) a participant or beneficiary under such 

10 a plan is permitted the opportunity to request 

11 that any disclosure required to be delivered on 

12 paper under applicable guidance by the Depart13 ment of Labor shall be furnished by electronic 

14 delivery; 

15 (B) each paper statement furnished under 

16 such a plan pursuant to the amendment shall 

17 include— 

18 (i) an explanation of how to request 

19 that all such statements, and any other 

20 document required to be disclosed under 

21 title I of the Employee Retirement Income 

22 Security Act of 1974, be furnished by elec23 tronic delivery; and 

24 (ii) contact information for the plan 

25 sponsor, including a telephone number; 


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1 (C) the plan may not charge any fee to a 

2 participant or beneficiary for the delivery of any 

3 paper statements; 

4 (D) each paper pension benefit statement 

5 shall identify each plan document required to be 

6 disclosed and shall include information about 

7 how a participant or beneficiary may access 

8 each such document; 

9 (E) each document required to be disclosed 

10 that is furnished by electronic delivery under 

11 such a plan shall include an explanation of how 

12 to request that all such documents be furnished 

13 on paper in written form; and 

14 (F) a plan is permitted to furnish a dupli15 cate electronic statement in any case in which 

16 the plan furnishes a paper pension benefit 

17 statement. 

18 (c) EFFECTIVE DATE.—The amendment made by 

19 subsection (a) shall apply with respect to plan years begin20 ning after December 31, 2023. 


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1 SEC. 436. SEPARATE APPLICATION OF TOP HEAVY RULES 

2 TO DEFINED CONTRIBUTION PLANS COV3 ERING EXCLUDIBLE EMPLOYEES. 

4 (a) IN GENERAL.—Section 416(c)(2) of the Internal 

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

6 the following: 

7 ‘‘(C) SEPARATE APPLICATION TO EMPLOY8 EES NOT MEETING AGE AND SERVICE REQUIRE9 MENTS.—If employees not meeting the age or 

10 service requirements of section 410(a)(1) (with11 out regard to subparagraph (B) thereof) are 

12 covered under a plan of the employer which 

13 meets the requirements of subparagraphs (A) 

14 and (B) separately with respect to such employ15 ees, such employees may be excluded from con16 sideration in determining whether any plan of 

17 the employer meets the requirements of sub18 paragraphs (A) and (B).’’. 

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

20 subsection (a) shall apply to plan years beginning after 

21 the date of the enactment of this Act. 

22 SEC. 437. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 

23 DISTRIBUTION LIMITED TO 3 YEARS. 

24 (a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the 

25 Internal Revenue Code of 1986 is amended by striking 

26 ‘‘may make’’ and inserting ‘‘may, at any time during the 


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1 3-year period beginning on the day after the date on which 

2 such distribution was received, make’’. 

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

4 this section shall take effect as if included in the enact5 ment of section 113 of the Setting Every Community Up 

6 for Retirement Enhancement Act of 2019. 

7 SEC. 438. EMPLOYER MAY RELY ON EMPLOYEE CERTI8 FYING THAT DEEMED HARDSHIP DISTRIBU9 TION CONDITIONS ARE MET. 

10 (a) CASH OR DEFERRED ARRANGEMENTS.—Section 

11 401(k)(14) of the Internal Revenue Code of 1986 is 

12 amended by adding at the end the following new subpara13 graph: 

14 ‘‘(C) EMPLOYEE CERTIFICATION.—In de15 termining whether a distribution is upon the 

16 hardship of an employee, the administrator of 

17 the plan may rely on a certification by the em18 ployee that the distribution is on account of a 

19 financial need of a type that is deemed in regu20 lations prescribed by the Secretary to be an im21 mediate and heavy financial need and that such 

22 distribution is not in excess of the amount re23 quired to satisfy such financial need.’’. 

24 (b) 403(b) PLANS.— 


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1 (1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) 

2 of such Code is amended by adding at the end the 

3 following new subparagraph: 

4 ‘‘(D) EMPLOYEE CERTIFICATION.—In de5 termining whether a distribution is upon the fi6 nancial hardship of an employee, the adminis7 trator of the plan may rely on a certification by 

8 the employee that the distribution is on account 

9 of a financial need of a type that is deemed in 

10 regulations prescribed by the Secretary to be an 

11 immediate and heavy financial need and that 

12 such distribution is not in excess of the amount 

13 required to satisfy such financial need.’’. 

14 (2) ANNUITY CONTRACTS.—Section 403(b)(11) 

15 of such Code is amended by adding at the end the 

16 following: ‘‘In determining whether a distribution is 

17 upon hardship of an employee, the administrator of 

18 the plan may rely on a certification by the employee 

19 that the distribution is on account of a financial 

20 need of a type that is deemed in regulations pre21 scribed by the Secretary to be an immediate and 

22 heavy financial need and that such distribution is 

23 not in excess of the amount required to satisfy such 

24 financial need.’’. 


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1 (c) 457(B) PLAN.—Section 457(d) of such Code is 

2 amended by adding at the end the following new para3 graph: 

4 ‘‘(4) PARTICIPANT CERTIFICATION.—In deter5 mining whether a distribution to a participant is 

6 made when the participant is faced with an unfore7 seeable emergency, the administrator of a plan 

8 maintained by an eligible employer described in sub9 section (e)(1)(A) may rely on a certification by the 

10 participant that the distribution is made when the 

11 participant is faced with unforeseeable emergency of 

12 a type that is described in regulations prescribed by 

13 the Secretary as an unforeseeable emergency and 

14 that the distribution is not in excess of the amount 

15 reasonably necessary to satisfy the emergency 

16 need.’’. 

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

18 this section shall apply to plan years beginning after De19 cember 31, 2022. 

20 SEC. 439. PENALTY-FREE WITHDRAWALS FROM RETIRE21 MENT PLANS FOR INDIVIDUALS IN CASE OF 

22 DOMESTIC ABUSE. 

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

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

25 the following new subparagraph: 


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1 ‘‘(I) DISTRIBUTIONS FROM RETIREMENT

2 PLANS IN CASE OF DOMESTIC ABUSE.— 

3 ‘‘(i) IN GENERAL.—Any eligible dis4 tribution to a domestic abuse victim. 

5 ‘‘(ii) LIMITATION.—The aggregate 

6 amount which may be treated as an eligi7 ble distribution to a domestic abuse victim 

8 by any individual shall not exceed an 

9 amount equal to the lesser of— 

10 ‘‘(I) $10,000, or 

11 ‘‘(II) 50 percent of the present 

12 value of the nonforfeitable accrued 

13 benefit of the employee under the 

14 plan. 

15 ‘‘(iii) ELIGIBLE DISTRIBUTION TO A

16 DOMESTIC ABUSE VICTIM.—For purposes 

17 of this subparagraph— 

18 ‘‘(I) IN GENERAL.—A distribu19 tion shall be treated as an eligible dis20 tribution to a domestic abuse victim if 

21 such distribution is from an applicable 

22 eligible retirement plan to an indi23 vidual and made during the 1-year pe24 riod beginning on any date on which 

25 the individual is a victim of domestic 


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1 abuse by a spouse or domestic part2 ner. 

3 ‘‘(II) DOMESTIC ABUSE.—The 

4 term ‘domestic abuse’ means physical, 

5 psychological, sexual, emotional, or 

6 economic abuse, including efforts to 

7 control, isolate, humiliate, or intimi8 date the victim, or to undermine the 

9 victim’s ability to reason independ10 ently, including by means of abuse of 

11 the victim’s child or another family 

12 member living in the household. 

13 ‘‘(iv) TREATMENT OF PLAN DISTRIBU14 TIONS.— 

15 ‘‘(I) IN GENERAL.—If a distribu16 tion to an individual would (without 

17 regard to clause (ii)) be an eligible 

18 distribution to a domestic abuse vic19 tim, a plan shall not be treated as 

20 failing to meet any requirement of 

21 this title merely because the plan 

22 treats the distribution as an eligible 

23 distribution to a domestic abuse vic24 tim, unless the aggregate amount of 

25 such distributions from all plans 


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1 maintained by the employer (and any 

2 member of any controlled group which 

3 includes the employer) to such indi4 vidual exceeds the limitation under 

5 clause (ii). 

6 ‘‘(II) CONTROLLED GROUP.—For 

7 purposes of subclause (I), the term 

8 ‘controlled group’ means any group 

9 treated as a single employer under 

10 subsection (b), (c), (m), or (o) of sec11 tion 414. 

12 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

13 REPAID.— 

14 ‘‘(I) IN GENERAL.—Any indi15 vidual who receives a distribution de16 scribed in clause (i) may, at any time 

17 during the 3-year period beginning on 

18 the day after the date on which such 

19 distribution was received, make one or 

20 more contributions in an aggregate 

21 amount not to exceed the amount of 

22 such distribution to an applicable eli23 gible retirement plan of which such 

24 individual is a beneficiary and to 

25 which a rollover contribution of such 


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1 distribution could be made under sec2 tion 402(c), 403(a)(4), 403(b)(8), 

3 408(d)(3), or 457(e)(16), as the case 

4 may be. 

5 ‘‘(II) LIMITATION ON CONTRIBU6 TIONS TO APPLICABLE ELIGIBLE RE7 TIREMENT PLANS OTHER THAN

8 IRAS.—The aggregate amount of con9 tributions made by an individual 

10 under subclause (I) to any applicable 

11 eligible retirement plan which is not 

12 an individual retirement plan shall not 

13 exceed the aggregate amount of eligi14 ble distributions to a domestic abuse 

15 victim which are made from such plan 

16 to such individual. Subclause (I) shall 

17 not apply to contributions to any ap18 plicable eligible retirement plan which 

19 is not an individual retirement plan 

20 unless the individual is eligible to 

21 make contributions (other than those 

22 described in subclause (I)) to such ap23 plicable eligible retirement plan. 

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1 PLICABLE ELIGIBLE RETIREMENT

2 PLANS OTHER THAN IRAS.—If a con3 tribution is made under subclause (I) 

4 with respect to an eligible distribution 

5 to a domestic abuse victim from an 

6 applicable eligible retirement plan 

7 other than an individual retirement 

8 plan, then the taxpayer shall, to the 

9 extent of the amount of the contribu10 tion, be treated as having received 

11 such distribution in an eligible rollover 

12 distribution (as defined in section 

13 402(c)(4)) and as having transferred 

14 the amount to the applicable eligible 

15 retirement plan in a direct trustee to 

16 trustee transfer within 60 days of the 

17 distribution. 

18 ‘‘(IV) TREATMENT OF REPAY19 MENTS FOR DISTRIBUTIONS FROM

20 IRAS.—If a contribution is made 

21 under subclause (I) with respect to an 

22 eligible distribution to a domestic 

23 abuse victim from an individual retire24 ment plan, then, to the extent of the 

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1 tribution shall be treated as a dis2 tribution described in section 

3 408(d)(3) and as having been trans4 ferred to the applicable eligible retire5 ment plan in a direct trustee to trust6 ee transfer within 60 days of the dis7 tribution. 

8 ‘‘(vi) DEFINITION AND SPECIAL

9 RULES.—For purposes of this subpara10 graph: 

11 ‘‘(I) APPLICABLE ELIGIBLE RE12 TIREMENT PLAN.—The term ‘applica13 ble eligible retirement plan’ means an 

14 eligible retirement plan (as defined in 

15 section 402(c)(8)(B)) other than a de16 fined benefit plan. 

17 ‘‘(II) EXEMPTION OF DISTRIBU18 TIONS FROM TRUSTEE TO TRUSTEE

19 TRANSFER AND WITHHOLDING

20 RULES.—For purposes of sections 

21 401(a)(31), 402(f), and 3405, an eli22 gible distribution to a domestic abuse 

23 victim shall not be treated as an eligi24 ble rollover distribution. 


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1 ‘‘(III) DISTRIBUTIONS TREATED

2 AS MEETING PLAN DISTRIBUTION RE3 QUIREMENTS; SELF-CERTIFICATION.— 

4 Any distribution which the employee 

5 or participant certifies as being an eli6 gible distribution to a domestic abuse 

7 victim shall be treated as meeting the 

8 requirements of sections 

9 401(k)(2)(B)(i), 403(b)(7)(A)(i), 

10 403(b)(11), and 457(d)(1)(A).’’. 

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

12 this section shall apply to distributions made after the 

13 date of the enactment of this Act. 

14 SEC. 440. REFORM OF FAMILY ATTRIBUTION RULES. 

15 (a) CONTROLLED GROUPS.—Section 414(b) of the 

16 Internal Revenue Code of 1986 is amended— 

17 (1) by striking ‘‘For purposes of’’ and inserting 

18 the following: 

19 ‘‘(1) IN GENERAL.—For purposes of’’, and 

20 (2) by adding at the end the following new 

21 paragraphs: 

22 ‘‘(2) SPECIAL RULES FOR APPLYING FAMILY

23 ATTRIBUTION.—For purposes of applying the attri24 bution rules under section 1563 with respect to 

25 paragraph (1), the following rules apply: 


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1 ‘‘(A) Community property laws shall be 

2 disregarded for purposes of determining owner3 ship. 

4 ‘‘(B) Except as provided by the Secretary, 

5 stock of an individual not attributed under sec6 tion 1563(e)(5) to such individual’s spouse shall 

7 not be attributed to such spouse by reason of 

8 section 1563(e)(6)(A). 

9 ‘‘(C) Except as provided by the Secretary, 

10 in the case of stock in different corporations 

11 that is attributed to a child under section 

12 1563(e)(6)(A) from each parent, and is not at13 tributed to such parents as spouses under sec14 tion 1563(e)(5), such attribution to the child 

15 shall not by itself result in such corporations 

16 being members of the same controlled group. 

17 ‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS

18 SATISFYING THIS SECTION.—If the application of 

19 paragraph (2) causes two or more entities to be a 

20 controlled group, or to no longer be in a controlled 

21 group, such change shall be treated as a transaction 

22 to which section 410(b)(6)(C) applies.’’. 

23 (b) AFFILIATED SERVICE GROUPS.—Section 

24 414(m)(6)(B) of such Code is amended— 


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1 (1) by striking ‘‘OWNERSHIP.—In determining’’ 

2 and inserting the following: ‘‘OWNERSHIP.— 

3 ‘‘(i) IN GENERAL.—In determining’’; 

4 and 

5 (2) by adding at the end the following new 

6 clauses: 

7 ‘‘(ii) SPECIAL RULES FOR APPLYING

8 FAMILY ATTRIBUTION.—For purposes of 

9 applying the attribution rules under section 

10 318 with respect to clause (i), the following 

11 rules apply: 

12 ‘‘(I) Community property laws 

13 shall be disregarded for purposes of 

14 determining ownership. 

15 ‘‘(II) Except as provided by the 

16 Secretary, stock of an individual not 

17 attributed under section 

18 318(a)(1)(A)(i) to such individual’s 

19 spouse shall not be attributed by rea20 son of section 318(a)(1)(A)(ii) to such 

21 spouse from a child who has not at22 tained the age of 21 years. 

23 ‘‘(III) Except as provided by the 

24 Secretary, in the case of stock in dif25 ferent corporations that is attributed 


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1 under section 318(a)(1)(A)(ii) to a 

2 child who has not attained the age of 

3 21 years from each parent, and is not 

4 attributed to such parents as spouses 

5 under section 318(a)(1)(A)(i), such 

6 attribution to the child shall not by 

7 itself result in such corporations being 

8 members of the same affiliated service 

9 group. 

10 ‘‘(iii) PLAN SHALL NOT FAIL TO BE

11 TREATED AS SATISFYING THIS SECTION.— 

12 If the application of clause (ii) causes two 

13 or more entities to be an affiliated service 

14 group, or to no longer be in an affiliated 

15 service group, such change shall be treated 

16 as a transaction to which section 

17 410(b)(6)(C) applies.’’. 

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

19 this section shall apply to plan years beginning on or after 

20 the date of the enactment of this Act. 


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1 SEC. 441. AMENDMENTS TO INCREASE BENEFIT ACCRUALS 

2 UNDER PLAN FOR PREVIOUS PLAN YEAR AL3 LOWED UNTIL EMPLOYER TAX RETURN DUE 

4 DATE. 

5 (a) IN GENERAL.—Section 401(b) of the Internal 

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

7 the following new paragraph: 

8 ‘‘(3) RETROACTIVE PLAN AMENDMENTS THAT

9 INCREASE BENEFIT ACCRUALS.—If— 

10 ‘‘(A) an employer amends a stock bonus, 

11 pension, profit-sharing, or annuity plan to in12 crease benefits accrued under the plan effective 

13 for the preceding plan year (other than increas14 ing the amount of matching contributions (as 

15 defined in subsection (m)(4)(A))), 

16 ‘‘(B) such amendment would not otherwise 

17 cause the plan to fail to meet any of the re18 quirements of this subchapter, and 

19 ‘‘(C) such amendment is adopted before 

20 the time prescribed by law for filing the return 

21 of the employer for a taxable year (including 

22 extensions thereof) during which such amend23 ment is effective, 

24 the employer may elect to treat such amendment as 

25 having been adopted as of the last day of the plan 

26 year in which the amendment is effective.’’. 


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

2 this section shall apply to plan years beginning after De3 cember 31, 2023. 

4 SEC. 442. RETROACTIVE FIRST YEAR ELECTIVE DEFER5 RALS FOR SOLE PROPRIETORS. 

6 (a) IN GENERAL.—Section 401(b)(2) of the Internal 

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

8 the following: ‘‘In the case of an individual who owns the 

9 entire interest in an unincorporated trade or business, and 

10 who is the only employee of such trade or business, any 

11 elective deferrals (as defined in section 402(g)(3)) under 

12 a qualified cash or deferred arrangement to which the pre13 ceding sentence applies, which are made by such individual 

14 before the time for filing the return of such individual for 

15 the taxable year (determined without regard to any exten16 sions) ending after or with the end of the plan’s first plan 

17 year, shall be treated as having been made before the end 

18 of such first plan year.’’. 

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

20 this section shall apply to plan years beginning after the 

21 date of the enactment of this Act. 


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1 SEC. 443. LIMITING CESSATION OF IRA TREATMENT TO 

2 PORTION OF ACCOUNT INVOLVED IN A PRO3 HIBITED TRANSACTION. 

4 (a) IN GENERAL.—Section 408(e)(2)(A) of the Inter5 nal Revenue Code of 1986 is amended by striking ‘‘such 

6 account ceases to be an individual retirement account’’ 

7 and inserting the following: ‘‘the amount involved (as de8 fined in section 4975(f)(4)) in such transaction shall be 

9 treated as distributed to the individual’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 408(e)(2)(B) of such Code is 

12 amended to read as follows: 

13 ‘‘(B) ACCOUNT TREATED AS DISTRIBUTING

14 POTION OF ASSETS USED IN PROHIBITED

15 TRANSACTION.—In any case in which a portion 

16 of an individual retirement account is treated as 

17 distributed under subparagraph (A) as of the 

18 first day of any taxable year, paragraph (1) of 

19 subsection (d) applies as if there were a dis20 tribution on such first day in an amount equal 

21 to the fair market value of such portion, deter22 mined as of the date on which the transaction 

23 prohibited by section 4975 occurs.’’. 

24 (A) by striking ‘‘ALL ITS ASSETS.—In any 

25 case’’ and all that follows through ‘‘by reason 

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1 lowing: ‘‘PORTION OF ASSETS USED IN PROHIB2 ITED TRANSACTION.—In any case in which a 

3 portion of an individual retirement account is 

4 treated as distributed under subparagraph 

5 (A)’’; and 

6 (B) by striking ‘‘all assets in the account’’ 

7 and inserting ‘‘such portion’’. 

8 (2) Section 4975(c)(3) of such Code is amended 

9 by striking ‘‘the account ceases’’ and all that follows 

10 and inserting the following: ‘‘the portion of the ac11 count used in the transaction is treated as distrib12 uted under paragraph (2)(A) or (4) of section 

13 408(e).’’. 

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

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 SEC. 444. REVIEW OF PENSION RISK TRANSFER INTERPRE18 TIVE BULLETIN. 

19 Not later than 1 year after the date of enactment 

20 of this Act, the Secretary of Labor shall— 

21 (1) review section 2509.95–1 of title 29, Code 

22 of Federal Regulations (relating to the fiduciary 

23 standards under the Employee Retirement Income 

24 Security Act of 1974 when selecting an annuity pro25 vider for a defined benefit pension plan) to deterVerDate Sep 11 2014 01:09 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00141 Fmt 6652 Sfmt 6201 E:\BILLS\H5673.IH H5673

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1 mine whether amendments to such section are war2 ranted; and 

3 (2) report to Congress on the findings of such 

4 review, including an assessment of any risk to par5 ticipants. 

6 SEC. 445. AMENDMENTS RELATING TO SETTING EVERY 

7 COMMUNITY UP FOR RETIREMENT ENHANCE8 MENT ACT OF 2019. 

9 (a) TECHNICAL AMENDMENTS.— 

10 (1) AMENDMENTS RELATING TO SECTION

11 103.— 

12 (A) Section 401(k)(12)(G) of the Internal 

13 Revenue Code of 1986 is amended by striking 

14 ‘‘the requirements under subparagraph (A)(i)’’ 

15 and inserting ‘‘the contribution requirements 

16 under subparagraph (B) or (C)’’. 

17 (B) Section 401(k)(13)(D)(iv) of such 

18 Code is amended by striking ‘‘and (F)’’ and in19 serting ‘‘and (G)’’. 

20 (C) Section 401(m)(12) of such Code is 

21 amended by striking ‘‘and’’ at the end of sub22 paragraph (A), by redesignating subparagraph 

23 (B) as subparagraph (C), and by inserting after 

24 subparagraph (A) (as so amended) the fol25 lowing new subparagraph: 


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1 ‘‘(B) meets the notice requirements of sub2 section (k)(13)(E), and’’. 

3 (2) AMENDMENT RELATING TO SECTION 112.— 

4 Section 401(k)(15)(B)(i)(II) of such Code is amend5 ed by striking ‘‘subsection (m)(2)’’ and inserting 

6 ‘‘paragraphs (2), (11), and (12) of subsection (m)’’. 

7 (3) AMENDMENT RELATING TO SECTION 114.— 

8 Section 401(a)(9)(C)(iii) of such Code is amended 

9 by striking ‘‘employee to whom clause (i)(II) ap10 plies’’ and inserting ‘‘employee (other than an em11 ployee to whom clause (i)(II) does not apply by rea12 son of clause (ii))’’. 

13 (4) AMENDMENT RELATING TO SECTION 116.— 

14 Section 4973(b) of such Code is amended by adding 

15 at the end of the flush matter the following: ‘‘Such 

16 term shall not include any designated nondeductible 

17 contribution (as defined in subparagraph (C) of sec18 tion 408(o)(2)) which does not exceed the non19 deductible limit under subparagraph (B) thereof by 

20 reason of an election under section 408(o)(5).’’. 

21 (5) EFFECTIVE DATE.—The amendments made 

22 by this subsection shall take effect as if included in 

23 the section of the Setting Every Community Up for 

24 Retirement Enhancement Act of 2019 to which the 

25 amendment relates. 


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1 (b) CLERICAL AMENDMENTS.— 

2 (1) Section 408(o)(5)(A) of such Code is 

3 amended by striking ‘‘subsection (b)’’ and inserting 

4 ‘‘section 219(b)’’. 

5 (2) Section 72(t)(2)(H)(vi)(IV) of such Code is 

6 amended by striking ‘‘403(b)(7)(A)(ii)’’ and insert7 ing ‘‘ 403(b)(7)(A)(i)’’. 

8 SEC. 446. PROVISIONS RELATING TO PLAN AMENDMENTS. 

9 (a) IN GENERAL.—If this section applies to any re10 tirement plan or contract amendment— 

11 (1) such retirement plan or contract shall be 

12 treated as being operated in accordance with the 

13 terms of the plan during the period described in sub14 section (b)(2)(A); and 

15 (2) except as provided by the Secretary of the 

16 Treasury (or the Secretary’s delegate), such retire17 ment plan shall not fail to meet the requirements of 

18 section 411(d)(6) of the Internal Revenue Code of 

19 1986 and section 204(g) of the Employee Retire20 ment Income Security Act of 1974 by reason of such 

21 amendment. 

22 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

23 (1) IN GENERAL.—This section shall apply to 

24 any amendment to any retirement plan or annuity 

25 contract which is made— 


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1 (A) pursuant to any amendment made by 

2 this Act or pursuant to any regulation issued by 

3 the Secretary of the Treasury or the Secretary 

4 of Labor (or a delegate of either such Sec5 retary) under this Act; and 

6 (B) on or before the last day of the first 

7 plan year beginning on or after January 1, 

8 2024, or such later date as the Secretary of the 

9 Treasury may prescribe. 

10 In the case of a governmental plan (as defined in 

11 section 414(d) of the Internal Revenue Code of 

12 1986), or an applicable collectively bargained plan, 

13 this paragraph shall be applied by substituting 

14 ‘‘2026’’ for ‘‘2024’’. For purposes of the preceding 

15 sentence, the term ‘‘applicable collectively bargained 

16 plan’’ means a plan maintained pursuant to 1 or 

17 more collective bargaining agreements between em18 ployee representatives and 1 or more employers rati19 fied before the date of enactment of this Act. 

20 (2) CONDITIONS.—This section shall not apply 

21 to any amendment unless— 

22 (A) during the period— 

23 (i) beginning on the date the legisla24 tive or regulatory amendment described in 

25 paragraph (1)(A) takes effect (or in the 


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1 case of a plan or contract amendment not 

2 required by such legislative or regulatory 

3 amendment, the effective date specified by 

4 the plan); and 

5 (ii) ending on the date described in 

6 paragraph (1)(B) (as modified by the sec7 ond sentence of paragraph (1)) (or, if ear8 lier, the date the plan or contract amend9 ment is adopted), 

10 the plan or contract is operated as if such plan 

11 or contract amendment were in effect; and 

12 (B) such plan or contract amendment ap13 plies retroactively for such period. 

14 (c) COORDINATION WITH OTHER PROVISIONS RE15 LATING TO PLAN AMENDMENTS.— 

16 (1) SECURE ACT.—Section 601(b)(1) of the 

17 Setting Every Community Up for Retirement En18 hancement Act of 2019 is amended— 

19 (A) by striking ‘‘January 1, 2022’’ in sub20 paragraph (B) and inserting ‘‘January 1, 

21 2024’’, and 

22 (B) by striking ‘‘substituting ‘2024’ for 

23 ‘2022’.’’ in the flush matter at the end and in24 serting ‘‘substituting ‘2026’ for ‘2024’.’’. 

25 (2) CARES ACT.— 


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1 (A) SPECIAL RULES FOR USE OF RETIRE2 MENT FUNDS.—Section 2202(c)(2)(A) of the 

3 CARES Act is amended by striking ‘‘January 

4 1, 2022’’ in clause (ii) and inserting ‘‘January 

5 1, 2024’’. 

6 (B) TEMPORARY WAIVER OF REQUIRED

7 MINIMUM DISTRIBUTIONS RULES FOR CERTAIN

8 RETIREMENT PLANS AND ACCOUNTS.—Section 

9 2203(c)(2)(B)(i) of the CARES Act is amend10 ed— 

11 (i) by striking ‘‘January 1, 2022’’ in 

12 subclause (II) and inserting ‘‘January 1, 

13 2024’’, and 

14 (ii) by striking ‘‘substituting ‘2024’ 

15 for ‘2022’.’’ in the flush matter at the end 

16 and inserting ‘‘substituting ‘2026’ for 

17 ‘2024’.’’. 

18 (C) TAXPAYER CERTAINTY AND DISASTER

19 TAX RELIEF ACT OF 2020.—Section 

20 302(d)(2)(A) of the Taxpayer Certainty and 

21 Disaster Tax Relief Act of 2020 is amended by 

22 striking ‘‘January 1, 2022’’ in clause (ii) and 

23 inserting ‘‘January 1, 2024’’. 


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1 SEC. 447. SIMPLE AND SEP ROTH IRAS. 

2 (a) IN GENERAL.—Section 408A of the Internal Rev3 enue Code of 1986 is amended by striking subsection (f). 

4 (b) RULES RELATING TO SIMPLIFIED EMPLOYEE

5 PENSIONS.— 

6 (1) CONTRIBUTIONS.—Section 402(h)(1) of 

7 such Code is amended by striking ‘‘and’’ at the end 

8 of subparagraph (A), by striking the period at the 

9 end of subparagraph (B) and inserting ‘‘, and’’, and 

10 by adding at the end the following new subpara11 graph: 

12 ‘‘(C) in the case of any contributions pur13 suant to a simplified employer pension which 

14 are made to an individual retirement plan des15 ignated as a Roth IRA, such contribution shall 

16 not be excludable from gross income.’’. 

17 (2) DISTRIBUTIONS.—Section 402(h)(3) of such 

18 Code is amended by inserting ‘‘, or section 408A(d) 

19 in the case of an individual retirement plan des20 ignated as a Roth IRA’’ before the period at the 

21 end. 

22 (3) ELECTION REQUIRED.—Section 408(k) of 

23 such Code is amended by redesignating paragraphs 

24 (7), (8), and (9) as paragraphs (8), (9), and (10), 

25 respectively, and by inserting the after paragraph 

26 (6) the following new paragraph: 


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1 ‘‘(7) ROTH CONTRIBUTION ELECTION.—An in2 dividual retirement plan which is designated as a 

3 Roth IRA shall not be treated as a simplified em4 ployee pension under this subsection unless the em5 ployee elects for such plan to be so treated (at such 

6 time and in such manner as the Secretary may pro7 vide).’’. 

8 (c) RULES RELATING TO SIMPLE RETIREMENT AC9 COUNTS.— 

10 (1) ELECTION REQUIRED.—Section 408(p) of 

11 such Code is amended by adding at the end the fol12 lowing new paragraph: 

13 ‘‘(11) ROTH CONTRIBUTION ELECTION.—An in14 dividual retirement plan which is designated as a 

15 Roth IRA shall not be treated as a simple retirement 

16 account under this subsection unless the employee 

17 elects for such plan to be so treated (at such time 

18 and in such manner as the Secretary may pro19 vide).’’. 

20 (2) ROLLOVERS.—Section 408A(e) of such 

21 Code is amended by adding at the end the following 

22 new paragraph: 

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

24 case of any payment or distribution out of a simple 

25 retirement account (as defined in section 408(p)) 


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1 with respect to which an election has been made 

2 under section 408(p)(11) and to which 72(t)(6) ap3 plies, the term ‘qualified rollover contribution’ shall 

4 not include any payment or distribution paid into an 

5 account other than another simple retirement ac6 count (as so defined).’’. 

7 (d) COORDINATION WITH ROTH CONTRIBUTION LIM8 ITATION.—Section 408A(c) of such Code is amended by 

9 adding at the end the following new paragraph: 

10 ‘‘(7) COORDINATION WITH LIMITATION FOR

11 SIMPLE RETIREMENT PLANS AND SEPS.—In the case 

12 of an individual on whose behalf contributions are 

13 made to a simple retirement account or a simplified 

14 employee pension, the amount described in para15 graph (2)(A) shall be increased by an amount equal 

16 to the contributions made on the individual’s behalf 

17 to such account or pension for the taxable year, but 

18 only to the extent such contributions— 

19 ‘‘(A) in the case of a simplified retirement 

20 account— 

21 ‘‘(i) do not exceed the sum of the dol22 lar amount in effect for the taxable year 

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1 paragraph (A)(iii) or (B)(i), as the case 

2 may be, of section 408(p)(2), and 

3 ‘‘(ii) do not cause the elective defer4 rals (as defined in section 402(g)(3)) on 

5 behalf of such individual to exceed the lim6 itation under section 402(g)(1) (taking 

7 into account any additional elective defer8 rals permitted under section 414(v)), or 

9 ‘‘(B) in the case of a simplified employee 

10 pension, do not exceed the limitation in effect 

11 under section 408(j).’’. 

12 (e) CONFORMING AMENDMENT.—Section 

13 408A(d)(2)(B) of such Code is amended by inserting ‘‘, 

14 or employer in the case of a simple retirement account 

15 (as defined in section 408(p)) or simplified employee pen16 sion (as defined in section 408(k)),’’ after ‘‘individual’s 

17 spouse’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2022. 

21 SEC. 448. HARDSHIP WITHDRAWAL RULES FOR 403(B) 

22 PLANS. 

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

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1 visions of this Act, is amended by adding at the end the 

2 following new paragraph: 

3 ‘‘(16) SPECIAL RULES RELATING TO HARDSHIP

4 WITHDRAWALS.—For purposes of paragraphs (7) 

5 and (11)— 

6 ‘‘(A) AMOUNTS WHICH MAY BE WITH7 DRAWN.—The following amounts may be dis8 tributed upon hardship of the employee: 

9 ‘‘(i) Contributions made pursuant to a 

10 salary reduction agreement (within the 

11 meaning of section 3121(a)(5)(D)). 

12 ‘‘(ii) Qualified nonelective contribu13 tions (as defined in section 401(m)(4)(C)). 

14 ‘‘(iii) Qualified matching contributions 

15 described in section 401(k)(3)(D)(ii)(I). 

16 ‘‘(iv) Earnings on any contributions 

17 described in clause (i), (ii), or (iii). 

18 ‘‘(B) NO REQUIREMENT TO TAKE AVAIL19 ABLE LOAN.—A distribution shall not be treat20 ed as failing to be made upon the hardship of 

21 an employee solely because the employee does 

22 not take any available loan under the plan.’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Section 403(b)(7)(A)(i)(V) of such Code is 

25 amended by striking ‘‘in the case of contributions 


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1 made pursuant to a salary reduction agreement 

2 (within the meaning of section 3121(a)(5)(D))’’ and 

3 inserting ‘‘subject to the provisions of paragraph 

4 (16)’’. 

5 (2) Paragraph (11) of section 403(b) of such 

6 Code, as amended by the preceding provisions of this 

7 Act, is amended— 

8 (A) by striking ‘‘in’’ in subparagraph (B) 

9 and inserting ‘‘subject to the provisions of para10 graph (16), in’’, and 

11 (B) by striking the penultimate sentence. 

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

13 this section shall apply to plan years beginning after De14 cember 31, 2022. 

15 SEC. 449. ELECTIVE DEFERRALS GENERALLY LIMITED TO 

16 REGULAR CONTRIBUTION LIMIT. 

17 (a) APPLICABLE EMPLOYER PLANS.—Section 

18 414(v)(1) of the Internal Revenue Code of 1986 is amend19 ed by adding at the end the following: ‘‘Except in the case 

20 of an applicable employer plan described in paragraph 

21 (6)(A)(iv), the preceding sentence shall only apply if con22 tributions are designated Roth contributions (as defined 

23 in section 402A(c)(1)).’’. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 402(g)(1) of such Code is amended 

2 by striking subparagraph (C). 

3 (2) Section 457(e)(18)(A)(ii) of such Code is 

4 amended by inserting ‘‘the lesser of any designated 

5 Roth contributions made by the participant to the 

6 plan or’’ before ‘‘the applicable dollar amount’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2022. 

10 SEC. 450. OPTIONAL TREATMENT OF EMPLOYER MATCHING 

11 CONTRIBUTIONS AS ROTH CONTRIBUTIONS. 

12 (a) IN GENERAL.—Section 402A(a) of the Internal 

13 Revenue Code of 1986 is amended by redesignating para14 graph (2) as paragraph (3), by striking ‘‘and’’ at the end 

15 of paragraph (1), and by inserting after paragraph (1) the 

16 following new paragraph: 

17 ‘‘(2) any designated Roth contribution which is 

18 made by the employer to the program on the em19 ployee’s behalf, and on account of the employee’s 

20 contribution, elective deferral, or (subject to the re21 quirements of section 401(m)(13)) qualified student 

22 loan payment, shall be treated as a matching con23 tribution for purposes of this chapter, except that 

24 such contribution shall not be excludable from gross 

25 income, and’’. 


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1 (b) MATCHING INCLUDED IN QUALIFIED ROTH CON2 TRIBUTION PROGRAM.—Section 402A(b)(1) of such Code 

3 is amended— 

4 (1) by inserting ‘‘, or to have made on the em5 ployee’s behalf,’’ after ‘‘elect to make’’, and 

6 (2) by inserting ‘‘, or of matching contributions 

7 which may otherwise be made on the employee’s be8 half,’’ after ‘‘otherwise eligible to make’’. 

9 (c) DESIGNATED ROTH MATCHING CONTRIBU10 TIONS.—Section 402A(c)(1) of such Code is amended by 

11 inserting ‘‘or matching contribution’’ after ‘‘elective defer12 ral’’. 

13 (d) MATCHING CONTRIBUTION DEFINED.—Section 

14 402A(e) of such Code is amended by adding at the end 

15 the following: 

16 ‘‘(3) MATCHING CONTRIBUTION.—The term 

17 ‘matching contribution’ means— 

18 ‘‘(A) any matching contribution described 

19 in section 401(m)(4)(A), and 

20 ‘‘(B) any contribution to an eligible de21 ferred compensation plan (as defined in section 

22 457(b)) by an eligible employer described in 

23 section 457(e)(1)(A) on behalf of an employee 

24 and on account of such employee’s elective de25 ferral under such plan.’’. 


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

2 this section shall apply to contributions made after the 

3 date of the enactment of this Act. 

4 TITLE V 

5 SEC. 501. BOOTS TO BUSINESS PROGRAM. 

6 Section 32 of the Small Business Act (15 U.S.C. 

7 657b) is amended by adding at the end the following: 

8 ‘‘(h) BOOTS TO BUSINESS PROGRAM.— 

9 ‘‘(1) COVERED INDIVIDUAL DEFINED.—In this 

10 subsection, the term ‘covered individual’ means— 

11 ‘‘(A) a member of the Armed Forces, in12 cluding the National Guard or Reserves; 

13 ‘‘(B) an individual who is participating in 

14 the Transition Assistance Program established 

15 under section 1144 of title 10, United States 

16 Code; 

17 ‘‘(C) an individual who— 

18 ‘‘(i) served on active duty in any 

19 branch of the Armed Forces, including the 

20 National Guard or Reserves; and 

21 ‘‘(ii) was discharged or released from 

22 such service under conditions other than 

23 dishonorable; and 


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1 ‘‘(D) a spouse or dependent of an indi2 vidual described in subparagraph (A), (B), or 

3 (C). 

4 ‘‘(2) ESTABLISHMENT.—During the period be5 ginning on the date of enactment of this subsection 

6 and ending on September 30, 2028, the Adminis7 trator shall carry out a program to be known as the 

8 ‘Boots to Business Program’ to provide entrepre9 neurship training to covered individuals. 

10 ‘‘(3) GOALS.—The goals of the Boots to Busi11 ness Program are to— 

12 ‘‘(A) provide assistance and in-depth train13 ing to covered individuals interested in business 

14 ownership; and 

15 ‘‘(B) provide covered individuals with the 

16 tools, skills, and knowledge necessary to identify 

17 a business opportunity, draft a business plan, 

18 identify sources of capital, connect with local 

19 resources for small business concerns, and start 

20 up a small business concern. 

21 ‘‘(4) PROGRAM COMPONENTS.— 

22 ‘‘(A) IN GENERAL.—The Boots to Busi23 ness Program may include— 

24 ‘‘(i) a presentation providing exposure 

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1 ployment and ownership of a small busi2 ness concern; 

3 ‘‘(ii) an online, self-study course fo4 cused on the basic skills of entrepreneur5 ship, the language of business, and the 

6 considerations involved in self-employment 

7 and ownership of a small business concern; 

8 ‘‘(iii) an in-person classroom instruc9 tion component providing an introduction 

10 to the foundations of self employment and 

11 ownership of a small business concern; and 

12 ‘‘(iv) in-depth training delivered 

13 through online instruction, including an 

14 online course that leads to the creation of 

15 a business plan. 

16 ‘‘(B) COLLABORATION.—The Adminis17 trator may— 

18 ‘‘(i) collaborate with public and pri19 vate entities to develop course curricula for 

20 the Boots to Business Program; and 

21 ‘‘(ii) modify program components in 

22 coordination with entities participating in a 

23 Warriors in Transition program, as defined 

24 in section 738(e) of the National Defense 


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1 Authorization Act for Fiscal Year 2013 

2 (10 U.S.C. 1071 note). 

3 ‘‘(C) USE OF RESOURCE PARTNERS AND

4 DISTRICT OFFICES.— 

5 ‘‘(i) IN GENERAL.—The Administrator 

6 shall— 

7 ‘‘(I) ensure that Veteran Busi8 ness Outreach Centers regularly par9 ticipate, on a nationwide basis, in the 

10 Boots to Business Program; and 

11 ‘‘(II) to the maximum extent 

12 practicable, use district offices of the 

13 Administration and a variety of other 

14 resource partners and entities in ad15 ministering the Boots to Business 

16 Program. 

17 ‘‘(ii) GRANT AUTHORITY.—In carrying 

18 out clause (i), the Administrator may make 

19 grants, subject to the availability of appro20 priations in advance, to Veteran Business 

21 Outreach Centers, other resource partners, 

22 or other entities to carry out components 

23 of the Boots to Business Program. 

24 ‘‘(D) AVAILABILITY TO DEPARTMENT OF

25 DEFENSE AND THE DEPARTMENT OF LABOR.— 


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1 The Administrator shall make available to the 

2 Secretary of Defense and the Secretary of 

3 Labor information regarding the Boots to Busi4 ness Program, including all course materials 

5 and outreach materials related to the Boots to 

6 Business Program, for inclusion on the websites 

7 of the Department of Defense and the Depart8 ment of Labor relating to the Transition Assist9 ance Program, in the Transition Assistance 

10 Program manual, and in other relevant mate11 rials available for distribution from the Sec12 retary of Defense and the Secretary of Labor. 

13 ‘‘(E) AVAILABILITY TO DEPARTMENT OF

14 VETERANS AFFAIRS.—In consultation with the 

15 Secretary of Veterans Affairs, the Adminis16 trator shall make available for distribution and 

17 display on the website of the Department of 

18 Veterans Affairs and at local facilities of the 

19 Department of Veterans Affairs outreach mate20 rials regarding the Boots to Business Program, 

21 which shall, at a minimum— 

22 ‘‘(i) describe the Boots to Business 

23 Program and the services provided; and 


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1 ‘‘(ii) include eligibility requirements 

2 for participating in the Boots to Business 

3 Program. 

4 ‘‘(F) AVAILABILITY TO OTHER PARTICI5 PATING AGENCIES.—The Administrator shall 

6 ensure information regarding the Boots to 

7 Business program, including all course mate8 rials and outreach materials related to the 

9 Boots to Business Program, is made available 

10 to other participating agencies in the Transition 

11 Assistance Program and upon request of other 

12 agencies. 

13 ‘‘(5) COMPETITIVE BIDDING PROCEDURES.— 

14 The Administration shall use relevant competitive 

15 bidding procedures with respect to any contract or 

16 cooperative agreement executed by the Administra17 tion under the Boots to Business Program. 

18 ‘‘(6) PUBLICATION OF NOTICE OF FUNDING OP19 PORTUNITY.—Not later than 30 days before the 

20 deadline for submitting applications for any funding 

21 opportunity under the Boots to Business Program, 

22 the Administration shall publish a notice of the 

23 funding opportunity. 

24 ‘‘(7) REPORT.—Not later than 180 days after 

25 the date of enactment of this subsection, and not 


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1 less frequently than annually thereafter, the Admin2 istrator shall submit to the Committee on Small 

3 Business and Entrepreneurship of the Senate and 

4 the Committee on Small Business of the House of 

5 Representatives a report on the performance and ef6 fectiveness of the Boots to Business Program, 

7 which— 

8 ‘‘(A) may be included as part of another 

9 report submitted to such committees by the Ad10 ministrator related to the Office of Veterans 

11 Business Development; and 

12 ‘‘(B) shall summarize available information 

13 relating to— 

14 ‘‘(i) grants awarded under paragraph 

15 (4)(C); 

16 ‘‘(ii) the total cost of the Boots to 

17 Business Program; 

18 ‘‘(iii) the number of program partici19 pants using each component of the Boots 

20 to Business Program; 

21 ‘‘(iv) the completion rates for each 

22 component of the Boots to Business Pro23 gram; 

24 ‘‘(v) to the extent possible— 


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1 ‘‘(I) the demographics of pro2 gram participants, to include gender, 

3 age, race, ethnicity, and relationship 

4 to military; 

5 ‘‘(II) the number of program 

6 participants that connect with a dis7 trict office of the Administration, a 

8 Veteran Business Outreach Center, or 

9 another resource partner of the Ad10 ministration; 

11 ‘‘(III) the number of program 

12 participants that start a small busi13 ness concern; 

14 ‘‘(IV) the results of the Boots to 

15 Business and Boots to Business 

16 Reboot course quality surveys con17 ducted by the Office of Veterans Busi18 ness Development before and after at19 tending each of those courses, includ20 ing a summary of any comments re21 ceived from program participants; 

22 ‘‘(V) the results of the Boots to 

23 Business Program outcome surveys 

24 conducted by the Office of Veterans 

25 Business Development, including a 


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1 summary of any comments received 

2 from program participants; and 

3 ‘‘(VI) the results of other ger4 mane participant satisfaction surveys; 

5 ‘‘(C) an evaluation of the overall effective6 ness of the Boots to Business Program based 

7 on each geographic region covered by the Ad8 ministration during the most recent fiscal year; 

9 ‘‘(D) an assessment of additional perform10 ance outcome measures for the Boots to Busi11 ness Program, as identified by the Adminis12 trator; 

13 ‘‘(E) any recommendations of the Adminis14 trator for improvement of the Boots to Busi15 ness Program, which may include expansion of 

16 the types of individuals who are covered individ17 uals; 

18 ‘‘(F) an explanation of how the Boots to 

19 Business Program has been integrated with 

20 other transition programs and related resources 

21 of the Administration and other Federal agen22 cies; and 

23 ‘‘(G) any additional information the Ad24 ministrator determines necessary.’’. 


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1 TITLE VI 

2 SEC. 601. INCREASED PUNISHMENT FOR HUMAN TRAF3 FICKING IN SCHOOL ZONES. 

4 Section 1591 of title 18, United States Code, is 

5 amended— 

6 (1) by redesignating subsection (e) as sub7 section (f); and 

8 (2) by inserting after subsection (d) the fol9 lowing: 

10 ‘‘(e)(1) Whoever violates subsection (a) in a school 

11 zone, or on, or within 1,000 feet of, a premises on which 

12 a school-sponsored activity is taking place, or on, or within 

13 1,000 feet of a premises owned by an institution of higher 

14 education, shall, in addition to the punishment otherwise 

15 provided under this section, be imprisoned for not more 

16 than 5 years. 

17 ‘‘(2) In this subsection: 

18 ‘‘(A) The term ‘school zone’ has the meaning 

19 given such term in section 921. 

20 ‘‘(B) The term ‘school-sponsored activity’ 

21 means any activity that is produced, financed, ar22 ranged, supervised, or coordinated by a school or a 

23 State educational agency or local educational agency 

24 or is under the jurisdiction of a State educational 

25 agency or local educational agency. 


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1 ‘‘(C) The terms ‘State educational agency’ and 

2 ‘local educational agency’ have the meanings given 

3 those terms under section 8101 of the Elementary 

4 and Secondary Education Act of 1965. 

5 ‘‘(D) The term ‘institution of higher education’ 

6 has the meaning given such term in section 101 of 

7 the Higher Education Act of 1965 (20 U.S.C. 

8 1001).’’. 

9 SEC. 602. INCREASED PUNISHMENT FOR COERCION AND 

10 ENTICEMENT IN SCHOOL ZONES. 

11 Section 2422 of title 18, United States Code, is 

12 amended— 

13 (1) in subsection (b), by striking ‘‘individual 

14 who has not attained the age of 18 years’’ and in15 serting ‘‘minor’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(c)(1) Whoever violates subsection (a) or (b) know18 ing, or having reasonable cause to believe, that the viola19 tion is committed against a minor who is enrolled in school 

20 and is, at the time of the violation, in a school zone or 

21 on, or within 1,000 feet of, a premises on which a school22 sponsored activity is taking place, or against a person who 

23 is enrolled in an institution of higher education and is, 

24 at the time of the violation on or within 1,000 feet of a 

25 premises owned by the institution of higher education, 


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1 shall, in addition to the punishment otherwise provided 

2 under this section, be imprisoned for not more than 5 

3 years. 

4 ‘‘(2) Paragraph (1) shall not apply in a case in which 

5 a minor’s presence on, or within 1,000 feet of, the prem6 ises on which a school-sponsored activity is taking place 

7 is not related to such school-sponsored activity, or the per8 son’s presence on or within 1,000 feet of the premises 

9 owned by the institution of higher education is not related 

10 to their enrollment at such institution. 

11 ‘‘(d) In this section: 

12 ‘‘(1) The term ‘minor’ means an individual who 

13 has not attained 18 years of age. 

14 ‘‘(2) The term ‘school’ means a public, paro15 chial, or private school that provides elementary or 

16 secondary education. 

17 ‘‘(3) The term ‘school zone’ has the meaning 

18 given such term in section 921. 

19 ‘‘(4) The term ‘school-sponsored activity’ means 

20 any activity that is produced, financed, arranged, su21 pervised, or coordinated by a school or a State edu22 cational agency or local educational agency or is 

23 under the jurisdiction of a State educational agency 

24 or local educational agency. 


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1 ‘‘(5) The terms ‘State educational agency’ and 

2 ‘local educational agency’ have the meanings given 

3 those terms under section 8101 of the Elementary 

4 and Secondary Education Act of 1965. 

5 ‘‘(6) The term ‘institution of higher education’ 

6 has the meaning given such term in section 101 of 

7 the Higher Education Act of 1965 (20 U.S.C. 

8 1001).’’. 

9 TITLE VII 

10 SEC. 701. ESTABLISHMENT OF COMMISSION. 

11 (a) IN GENERAL.—There is established the Commis12 sion to Study the Potential Creation of a National Mu13 seum of Asian Pacific American History and Culture 

14 (hereafter in this Act referred to as the ‘‘Commission’’). 

15 (b) MEMBERSHIP.—The Commission shall be com16 posed of 8 members, of whom— 

17 (1) 2 members shall be appointed by the major18 ity leader of the Senate; 

19 (2) 2 members shall be appointed by the Speak20 er of the House of Representatives; 

21 (3) 2 members shall be appointed by the minor22 ity leader of the Senate; and 

23 (4) 2 members shall be appointed by the minor24 ity leader of the House of Representatives. 


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1 (c) QUALIFICATIONS.—Members of the Commission 

2 shall be appointed to the Commission from among individ3 uals, or representatives of institutions or entities, who pos4 sess— 

5 (1)(A) a demonstrated commitment to the re6 search, study, or promotion of Asian Pacific Amer7 ican history, art, political or economic status, or cul8 ture; and 

9 (B)(i) expertise in museum administration; 

10 (ii) expertise in fundraising for nonprofit 

11 or cultural institutions; 

12 (iii) experience in the study and teaching 

13 of Asian Pacific American history; 

14 (iv) experience in studying the issue of the 

15 representation of Asian Pacific Americans in 

16 art, life, history, and culture at the Smithsonian 

17 Institution; or 

18 (v) extensive experience in public or elected 

19 service; 

20 (2) experience in the administration of, or the 

21 planning for, the establishment of, museums; or 

22 (3) experience in the planning, design, or con23 struction of museum facilities. 

24 (d) DEADLINE FOR INITIAL APPOINTMENT.—The 

25 initial members of the Commission shall be appointed not 


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1 later than the date that is 90 days after the date of enact2 ment of this Act. 

3 (e) VACANCIES.—A vacancy in the Commission— 

4 (1) shall not affect the powers of the Commis5 sion; and 

6 (2) shall be filled in the same manner as the 

7 original appointment was made. 

8 (f) CHAIRPERSON.—The Commission shall, by major9 ity vote of all of the members, select 1 member of the 

10 Commission to serve as the Chairperson of the Commis11 sion. 

12 (g) PROHIBITION.—No employee of the Federal Gov13 ernment may serve as a member of the Commission. 

14 SEC. 702. DUTIES OF THE COMMISSION. 

15 (a) REPORTS.— 

16 (1) PLAN OF ACTION.—The Commission shall 

17 submit to the President and Congress a report con18 taining the recommendations of the Commission 

19 with respect to a plan of action regarding the feasi20 bility of establishing and maintaining a National 

21 Museum of Asian Pacific American History and Cul22 ture in Washington, DC, and its environs (hereafter 

23 in this Act referred to as the ‘‘Museum’’). 


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1 (2) REPORT ON ISSUES.—The Commission shall 

2 submit to the President and Congress a report that 

3 addresses the following issues: 

4 (A) The availability and cost of collections 

5 to be acquired and housed in the Museum. 

6 (B) The impact of the Museum on existing 

7 Asian Pacific American history-related muse8 ums. 

9 (C) In consultation with the Smithsonian 

10 Institution, develop criteria for evaluating pos11 sible locations for the Museum in Washington, 

12 DC, and its environs. 

13 (D) The feasibility of the Museum becom14 ing part of the Smithsonian Institution, taking 

15 into account the Museum’s potential impact on 

16 the Smithsonian’s existing facilities mainte17 nance backlog, collections storage needs, and 

18 identified construction or renovation costs for 

19 new or existing museums. 

20 (E) The governance and organizational 

21 structure from which the Museum should oper22 ate. 

23 (F) Best practices for engaging Asian Pa24 cific Americans in the development and design 

25 of the Museum. 


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1 (G) The cost of constructing, operating, 

2 and maintaining the Museum. 

3 (3) DEADLINE.—The reports required under 

4 paragraphs (1) and (2) shall be submitted not later 

5 than the date that is 18 months after the date of 

6 the first meeting of the Commission. 

7 (b) FUNDRAISING PLAN.— 

8 (1) IN GENERAL.—The Commission shall de9 velop a fundraising plan that will address the ability 

10 to support the establishment, operation, and mainte11 nance of the Museum through contributions from 

12 the public. 

13 (2) CONSIDERATIONS.—In developing the fund14 raising plan under paragraph (1), the Commission 

15 shall consider issues relating to funding the oper16 ations and maintenance of the Museum in perpetuity 

17 without reliance on appropriations of Federal funds. 

18 (3) INDEPENDENT REVIEW.—The Commission 

19 shall obtain an independent review of the viability of 

20 the plan developed under paragraph (1) and such re21 view shall include an analysis as to whether the plan 

22 is able to achieve the level of resources necessary to 

23 fund the construction of the Museum and the oper24 ations and maintenance of the Museum in perpetuity 

25 without reliance on appropriations of Federal funds. 


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1 (4) SUBMISSION.—The Commission shall sub2 mit the plan developed under paragraph (1) and the 

3 review conducted under paragraph (3) to the Com4 mittees on House Administration, Natural Re5 sources, and Appropriations of the House of Rep6 resentatives and the Committees on Rules and Ad7 ministration, Energy and Natural Resources, and 

8 Appropriations of the Senate. 

9 (c) LEGISLATION TO CARRY OUT PLAN OF AC10 TION.—Based on the recommendations contained in the 

11 report submitted under paragraphs (1) and (2) of sub12 section (a), the Commission shall submit for consideration 

13 to the Committees on House Administration, Natural Re14 sources, and Appropriations of the House of Representa15 tives and the Committees on Rules and Administration, 

16 Energy and Natural Resources, and Appropriations of the 

17 Senate recommendations for a legislative plan of action 

18 on the feasibility of establishing and constructing the Mu19 seum. 

20 (d) NATIONAL CONFERENCE.—Not later than 18 

21 months after the date on which the initial members of the 

22 Commission are appointed under section 2, the Commis23 sion may, in carrying out the duties of the Commission 

24 under this section, convene a national conference relating 

25 to the Museum, to be comprised of individuals committed 


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1 to the advancement of the life, art, history, and culture 

2 of Asian Pacific Americans. 

3 SEC. 703. ADMINISTRATIVE PROVISIONS. 

4 (a) COMPENSATION.— 

5 (1) IN GENERAL.—A member of the Commis6 sion— 

7 (A) shall not be considered to be a Federal 

8 employee for any purpose by reason of service 

9 on the Commission; and 

10 (B) shall serve without pay. 

11 (2) TRAVEL EXPENSES.—A member of the 

12 Commission shall be allowed a per diem allowance 

13 for travel expenses, at rates consistent with those 

14 authorized under subchapter I of chapter 57 of title 

15 5, United States Code. 

16 (3) GIFTS, BEQUESTS, AND DEVISES.—The 

17 Commission may solicit, accept, use, and dispose of 

18 gifts, bequests, or devises of money, services, or real 

19 or personal property for the purpose of aiding or fa20 cilitating the work of the Commission. 

21 (4) FEDERAL ADVISORY COMMITTEE ACT.—The 

22 Commission shall not be subject to the Federal Advi23 sory Committee Act (5 U.S.C. App.). 

24 (b) TERMINATION.—The Commission shall terminate 

25 on the date that is 30 days after the date on which the 


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1 final versions of the reports required under section 3 are 

2 submitted. 

3 (c) FUNDING.— 

4 (1) IN GENERAL.—The Commission shall be 

5 solely responsible for acceptance of contributions for, 

6 and payment of the expenses of, the Commission. 

7 (2) PROHIBITION.—No Federal funds may be 

8 obligated to carry out this Act. 

9 (d) DIRECTOR AND STAFF OF COMMISSION.— 

10 (1) DIRECTOR AND STAFF.— 

11 (A) IN GENERAL.—The Commission may 

12 employ and compensate an executive director 

13 and any other additional personnel that are 

14 necessary to enable the Commission to perform 

15 the duties of the Commission. 

16 (B) RATES OF PAY.—Rates of pay for per17 sons employed under subparagraph (A) shall be 

18 consistent with the rates of pay allowed for em19 ployees of a temporary organization under sec20 tion 3161 of title 5, United States Code. 

21 (2) NOT FEDERAL EMPLOYMENT.—Any indi22 vidual employed under this section shall not be con23 sidered a Federal employee for the purpose of any 

24 law governing Federal employment. 

25 (3) TECHNICAL ASSISTANCE.— 


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1 (A) IN GENERAL.—Subject to subpara2 graph (B), on request of the Commission, the 

3 head of a Federal agency may provide technical 

4 assistance to the Commission. 

5 (B) PROHIBITION.—No Federal employees 

6 may be detailed to the Commission. 

7 TITLE VIII 

8 SEC. 801. SELECTUSA DEFINED. 

9 In this Act, the term ‘‘SelectUSA’’ means the 

10 SelectUSA program of the Department of Commerce es11 tablished by Executive Order No. 13577 (76 Fed. Reg. 

12 35,715). 

13 SEC. 802. FINDINGS. 

14 Congress makes the following findings: 

15 (1) Semiconductors underpin the United States 

16 and global economies, including manufacturing sec17 tors. Semiconductors are also essential to the na18 tional security of the United States. 

19 (2) A shortage of semiconductors, brought 

20 about by the COVID–19 pandemic and other com21 plex factors impacting the overall supply chain, has 

22 threatened the economic recovery of the United 

23 States and industries that employ millions of United 

24 States citizens. 


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1 (3) Addressing current challenges and building 

2 resilience against future risks requires ensuring a se3 cure and stable supply chain for semiconductors that 

4 will support the economic and national security 

5 needs of the United States and its allies. 

6 (4) The supply chain for semiconductors is 

7 complex and global. While the United States plays 

8 a leading role in certain segments of the semicon9 ductor industry, securing the supply chain requires 

10 onshoring, reshoring, or diversifying vulnerable seg11 ments, such as for— 

12 (A) fabrication; 

13 (B) advanced packaging; and 

14 (C) materials and equipment used to man15 ufacture semiconductor products. 

16 (5) The Federal Government can leverage for17 eign direct investment and private dollars to grow 

18 the domestic manufacturing and production capacity 

19 of the United States for vulnerable segments of the 

20 semiconductor supply chain. 

21 (6) The SelectUSA program of the Department 

22 of Commerce, in coordination with other Federal 

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1 ment in domestic manufacturing and to help secure 

2 the semiconductor supply chain of the United States. 

3 SEC. 803. COORDINATION WITH STATE-LEVEL ECONOMIC 

4 DEVELOPMENT ORGANIZATIONS. 

5 Not later than 180 days after the date of the enact6 ment of this Act, the Executive Director of SelectUSA 

7 shall solicit comments from State-level economic develop8 ment organizations— 

9 (1) to review— 

10 (A) what efforts the Federal Government 

11 can take to support increased foreign direct in12 vestment in any segment of semiconductor-re13 lated production; 

14 (B) what barriers to such investment may 

15 exist and how to amplify State efforts to attract 

16 such investment; 

17 (C) public opportunities those organiza18 tions have identified to attract foreign direct in19 vestment to help increase investment described 

20 in subparagraph (A); 

21 (D) resource gaps or other challenges that 

22 prevent those organizations from increasing 

23 such investment; and 

24 (2) to develop recommendations for— 


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1 (A) how SelectUSA can increase such in2 vestment independently or through partnership 

3 with those organizations; and 

4 (B) working with countries that are allies 

5 or partners of the United States to ensure that 

6 foreign adversaries (as defined in section 

7 8(c)(2) of the Secure and Trusted Communica8 tions Networks Act of 2019 (47 U.S.C. 

9 1607(c)(2))) do not benefit from United States 

10 efforts to increase such investment. 

11 SEC. 804. REPORT ON INCREASING FOREIGN DIRECT IN12 VESTMENT IN SEMICONDUCTOR-RELATED 

13 MANUFACTURING AND PRODUCTION. 

14 Not later than 2 years after the date of the enact15 ment of this Act, the Executive Director of SelectUSA, 

16 in coordination with the Federal Interagency Investment 

17 Working Group established by Executive Order No. 13577 

18 (76 Fed. Reg. 35,715; relating to establishment of the 

19 SelectUSA Initiative), shall submit to the Committee on 

20 Commerce, Science, and Transportation of the Senate and 

21 the Committee on Energy and Commerce of the House 

22 of Representatives a report that includes— 

23 (1) a review of the comments SelectUSA re24 ceived from State-level economic development organi25 zations under section 803; 


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1 (2) a description of activities SelectUSA is en2 gaged in to increase foreign direct investment in 

3 semiconductor-related manufacturing and produc4 tion; and 

5 (3) an assessment of strategies SelectUSA may 

6 implement to achieve an increase in such investment 

7 and to help secure the United States supply chain 

8 for semiconductors, including by— 

9 (A) working with other relevant Federal 

10 agencies; and 

11 (B) working with State-level economic de12 velopment organizations and implementing any 

13 strategies or recommendations SelectUSA re14 ceived from those organizations. 

15 TITLE IX 

16 SEC. 901. APPROVAL OF CERTAIN EQUIPMENT. 

17 (a) IN GENERAL.—Section 2008 of the Homeland 

18 Security Act of 2002 (6 U.S.C. 609) is amended— 

19 (1) in subsection (f)— 

20 (A) by striking ‘‘If an applicant’’ and in21 serting the following: 

22 ‘‘(1) APPLICATION REQUIREMENT.—If an appli23 cant’’; and 

24 (B) by adding at the end the following new 

25 paragraphs: 


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1 ‘‘(2) REVIEW PROCESS.—The Administrator 

2 shall implement a uniform process for reviewing ap3 plications that, in accordance with paragraph (1), 

4 contain explanations to use grants provided under 

5 section 2003 or 2004 to purchase equipment or sys6 tems that do not meet or exceed any applicable na7 tional voluntary consensus standards developed 

8 under section 647 of the Post-Katrina Emergency 

9 Management Reform Act of 2006 (6 U.S.C. 747). 

10 ‘‘(3) FACTORS.—In carrying out the review 

11 process under paragraph (2), the Administrator 

12 shall consider the following: 

13 ‘‘(A) Current or past use of proposed 

14 equipment or systems by Federal agencies or 

15 the Armed Forces. 

16 ‘‘(B) The absence of a national voluntary 

17 consensus standard for such equipment or sys18 tems. 

19 ‘‘(C) The existence of an international con20 sensus standard for such equipment or systems, 

21 and whether such equipment or systems meets 

22 such standard. 

23 ‘‘(D) The nature of the capability gap 

24 identified by the applicant and how such equip25 ment or systems will address such gap. 


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1 ‘‘(E) The degree to which such equipment 

2 or systems will serve the needs of the applicant 

3 better than equipment or systems that meet or 

4 exceed existing consensus standards. 

5 ‘‘(F) Any other factor determined appro6 priate by the Administrator.’’; and 

7 (2) by adding at the end the following new sub8 section: 

9 ‘‘(g) REVIEW PROCESS.—The Administrator shall 

10 implement a uniform process for reviewing applications to 

11 use grants provided under section 2003 or 2004 to pur12 chase equipment or systems not included on the Author13 ized Equipment List maintained by the Administrator.’’. 

14 (b) INSPECTOR GENERAL REPORT.—Not later than 

15 three years after the date of the enactment of this Act, 

16 the Inspector General of the Department of Homeland Se17 curity shall submit to the Committee on Homeland Secu18 rity of the House of Representatives and the Committee 

19 on Homeland Security and Governmental Affairs of the 

20 Senate a report assessing the implementation of the review 

21 process established under paragraph (2) of subsection (f) 

22 of section 2008 of the Homeland Security Act of 2002 

23 (as added by subsection (a) of this section), including in24 formation on the following: 


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1 (1) The number of requests to purchase equip2 ment or systems that do not meet or exceed any ap3 plicable consensus standard evaluated under such re4 view process. 

5 (2) The capability gaps identified by applicants 

6 and the number of such requests granted or denied. 

7 (3) The processing time for the review of such 

8 requests. 

9 TITLE X 

10 SEC. 1001. FINDINGS. 

11 Congress finds the following: 

12 (1) NASA uses enhanced use leasing to enter 

13 into agreements with private sector entities, State 

14 and local governments, academic institutions, and 

15 other Federal agencies for lease of non-excess, un16 derutilized NASA properties and facilities. 

17 (2) NASA uses enhanced use leasing authority 

18 to support responsible management of its real prop19 erty, including to improve the use of underutilized 

20 property for activities that are compatible with 

21 NASA’s mission and to reduce facility operating and 

22 maintenance costs. 

23 (3) In fiscal year 2019, under its enhanced use 

24 lease authority, NASA leased 65 real properties. 


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1 (4) In fiscal year 2019, NASA’s use of en2 hanced use leasing resulted in the collection of 

3 $10,843,025.77 in net revenue. 

4 (5) In fiscal year 2019, NASA used a portion 

5 of its enhanced use leasing revenues for repairs of 

6 facility control systems such as lighting and heating, 

7 ventilation, and air conditioning. 

8 (6) NASA’s use of enhanced use leasing author9 ity can contribute to reducing the rate of increase of 

10 the Agency’s overall deferred maintenance cost. 

11 SEC. 1002. EXTENSION OF AUTHORITY TO ENTER INTO 

12 LEASES OF NON-EXCESS PROPERTY OF THE 

13 NATIONAL AERONAUTICS AND SPACE ADMIN14 ISTRATION. 

15 Section 20145(g) of title 51, United States Code, is 

16 amended by striking ‘‘December 31, 2021’’ and inserting 

17 ‘‘December 31, 2031’’. 

18 TITLE XI 

19 SEC. 1101. HEARINGS. 

20 (a) IN GENERAL.—Each standing committee of the 

21 House of Representatives shall hold a hearing on the im22 plementation of this Act within one year of enactment. 

23 (b) EXERCISE OF RULEMAKING AUTHORITY.—Sub24 section (a) is enacted— 


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1 (1) as an exercise of rulemaking power of the 

2 House of Representatives, and, as such, shall be con3 sidered as part of the rules of the House, and such 

4 rules shall supersede any other rule of the House 

5 only to the extent that rule is inconsistent therewith; 

6 and 

7 (2) with full recognition of the constitutional 

8 right of either House to change such rules (so far 

9 as relating to the procedure in such House) at any 

10 time, in the same manner, and to the same extent 

11 as in the case of any other rule of the House. 

12 TITLE XII 

13 SEC. 1201. CODE OF OFFICIAL CONDUCT. 

14 In rule XXIII of the Rules of the House of Rep15 resentatives, strike clause 21 and insert the following: 

16 ‘‘21.(a) Except as provided in paragraphs (b) and (c), 

17 a Member, Delegate, Resident Commissioner, officer, or 

18 employee of the House shall not knowingly and willfully 

19 disclose publicly the identity of, or personally identifiable 

20 information about, any individual who has reported allega21 tions of possible wrongdoing, including retaliation, under 

22 processes and protections provided by the Civil Service Re23 form Act of 1978, the Whistleblower Protection Act of 

24 1989, the Intelligence Community Whistleblower Protec25 tion Act of 1998, or any other Federal law that establishes 


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1 the right for individuals to make protected disclosures to 

2 Congress. 

3 ‘‘(b) The limitation in paragraph (a) shall not apply 

4 to any disclosure of an individual’s identity or personally 

5 identifiable information if— 

6 ‘‘(1) the individual has provided express written 

7 consent prior to such disclosure; 

8 ‘‘(2) the individual has already voluntarily and 

9 publicly disclosed their identity; or 

10 ‘‘(3) the disclosure is by the chair of a com11 mittee after an affirmative vote by two-thirds of the 

12 members of the committee that such disclosure is in 

13 the public interest. 

14 ‘‘(c) Nothing in this clause shall prevent— 

15 ‘‘(1) an investigation of any allegation of 

16 wrongdoing disclosed by any individual; or 

17 ‘‘(2) the public disclosure of substantive infor18 mation shared by any individual that is not person19 ally identifiable to that individual. 

20 ‘‘(d) Disclosures made pursuant to paragraph (b)(3) 

21 shall be subject to appropriate safeguards, including that 

22 the individual be provided timely advance notice if possible 

23 before their identity or any personally identifiable informa24 tion is disclosed prior to the vote described in paragraph 

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1 lated investigations. When providing such notice to the in2 dividual the committee chair shall send the individual a 

3 written explanation of the reasons for the disclosure.’’. 

4 TITLE XIII 

5 SEC. 1301. STUDY ON FOREIGN PORTS. 

6 (a) IN GENERAL.—Not later than 90 days after the 

7 date of enactment of this Act, the Chairman of the Fed8 eral Maritime Commission shall seek to enter into an 

9 agreement with a federally funded research and develop10 ment center to evaluate how foreign ownership of marine 

11 terminals at the 15 largest United States container ports 

12 affects or could affect United States economic security. 

13 (b) CONTENTS.—In carrying out the study under 

14 subsection (a), the center selected under such subsection 

15 shall— 

16 (1) consider— 

17 (A) changes in ownership of the 15 largest 

18 United States container ports over the past 10 

19 years as well as announced ownership changes 

20 from 2023 and 2024; 

21 (B) instances of ownership in individual 

22 marine terminals and cumulative ownership by 

23 Chinese or Russian entities or nationals; 


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1 (C) instances of ownership in individual 

2 marine terminals and cumulative ownership by 

3 any foreign entity; 

4 (D) the amount of— 

5 (i) Port Infrastructure Development 

6 Grant funds since fiscal year 2018 that 

7 have gone to ports and marine terminals 

8 that are owned wholly or partially foreign 

9 owned; and 

10 (ii) Port Security Grant funds since 

11 fiscal year 2003 that have gone to ports 

12 and marine terminals that are owned whol13 ly or partially foreign owned; and 

14 (E) where ownership exists, a detailed de15 scription of foreign operational control includ16 ing both affirmative and negative control; and 

17 (2) offer recommendations on— 

18 (A) policies by ports and marine terminal 

19 operators to prevent excessive foreign ownership 

20 that could threaten United States economic se21 curity; 

22 (B) whether ownership affords the foreign 

23 owner access to operational technology and in24 formation unique to the United States and oth25 erwise unavailable; and 


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1 (C) whether foreign ownership has or could 

2 affect the supply chain and policies related to 

3 the prioritization of certain cargoes. 

4 (c) REPORT.—Not later than 1 year after the initi5 ation of the evaluation under subsection (a), the Chairman 

6 of the Federal Maritime Commission shall submit to the 

7 Committee on Commerce, Science, and Transportation of 

8 the Senate and the Committee on Transportation and In9 frastructure of the House of Representatives the results 

10 of such evaluation. 

11 TITLE XIV 

12 SEC. 1401. DETERMINATION OF BUDGETARY EFFECTS. 

13 The budgetary effects of this Act, for the purpose of 

14 complying with the Statutory Pay-As-You-Go-Act of 2010, 

15 shall be determined by reference to the latest statement 

16 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

17 Act, submitted for printing in the Congressional Record 

18 by the Chairman of the House Budget Committee, pro19 vided that such statement has been submitted prior to the 

20 vote on passage. 

21 TITLE XV 

22 SEC. 1501. FREQUENCY OF BOARD OF DIRECTORS MEET23 INGS. 

24 Section 113 of the Federal Credit Union Act (12 

25 U.S.C. 1761b) is amended— 


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1 (1) by striking ‘‘monthly’’ each place such term 

2 appears; 

3 (2) in the matter preceding paragraph (1), by 

4 striking ‘‘The board of directors’’ and inserting the 

5 following: 

6 ‘‘(a) IN GENERAL.—The board of directors’’; 

7 (3) in subsection (a) (as so designated), by 

8 striking ‘‘shall meet at least once a month and’’; and 

9 (4) by adding at the end the following: 

10 ‘‘(b) MEETINGS.—The board of directors of a Federal 

11 credit union shall meet as follows: 

12 ‘‘(1) With respect to a de novo Federal credit 

13 union, not less frequently than monthly during each 

14 of the first five years of the existence of such Fed15 eral credit union. 

16 ‘‘(2) Not less than six times annually, with at 

17 least one meeting held during each fiscal quarter, 

18 with respect to a Federal credit union— 

19 ‘‘(A) with composite rating of either 1 or 

20 2 under the Uniform Financial Institutions 

21 Rating System (or an equivalent rating under a 

22 comparable rating system); and 

23 ‘‘(B) with a capability of management rat24 ing under such composite rating of either 1 or 

25 2. 


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1 ‘‘(3) Not less frequently than once a month, 

2 with respect to a Federal credit union— 

3 ‘‘(A) with composite rating of either 3, 4, 

4 or 5 under the Uniform Financial Institutions 

5 Rating System (or an equivalent rating under a 

6 comparable rating system); or 

7 ‘‘(B) with a capability of management rat8 ing under such composite rating of either 3, 4, 

9 or 5.’’. 

10 TITLE XVI 

11 SEC. 1601. APPROPRIATIONS. 

12 The following sums are hereby appropriated, out of 

13 any money in the Treasury not otherwise appropriated, 

14 for the fiscal year ending September 30, 2024, and for 

15 other purposes, namely: 

16 DEPARTMENT OF HEALTH AND HUMAN 

17 SERVICES 

18 HEALTH RESOURCES AND SERVICES ADMINISTRATION

19 RURAL HEALTH

20 For an additional amount for the Telehealth Re21 source Center of the Federal Office of Rural Health Policy 

22 of the Office for the Advancement of Telehealth, to pro23 vide assistance with respect to technical, legal, regulatory 

24 service delivery or other related barriers to the develop25 ment of telehealth technologies for skilled nursing facilities 


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1 (as defined in section 1819 of the Social Security Act) and 

2 nursing facilities (as defined in section 1919 of such Act), 

3 $1,000,000 to remain available through September 30, 

4 2025. 

5 DEPARTMENT OF AGRICULTURE 

6 EXECUTIVE OPERATIONS

7 OFFICE OF BUDGET AND PROGRAM ANALYSIS

8 For an additional amount for necessary expenses of 

9 the Office of Budget and Program Analysis, $1,000,000. 

10 DEPARTMENT OF STATE 

11 CAPITAL INVESTMENT FUND

12 For an additional amount for necessary expenses of 

13 the Capital Investment Fund, as authorized, $1,000,000, 

14 to remain available until expended. 

15 DEPARTMENT OF DEFENSE 

16 OPERATION AND MAINTENANCE

17 OPERATION AND MAINTENANCE, ARMY

18 For an additional amount for expenses, not otherwise 

19 provided for, necessary for the operation and maintenance 

20 of the Army, as authorized by law, $1,000,000. 


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1 DEPARTMENT OF HOMELAND SECURITY 

2 DEPARTMENTAL MANAGEMENT, INTELLIGENCE, 

3 SITUATIONAL AWARENESS, AND OVERSIGHT

4 MANAGEMENT DIRECTORATE

5 OPERATIONS AND SUPPORT

6 For an additional amount for necessary expenses of 

7 the Management Directorate for operations and support, 

8 $1,000,000. 

9 DEPARTMENT OF ENERGY 

10 ENERGY PROGRAMS

11 ENERGY INFORMATION ADMINISTRATION

12 For an additional amount for Department of Energy 

13 expenses necessary in carrying out the activities of the En14 ergy Information Administration, $1,000,000, to remain 

15 available until expended. 

Æ 


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