I 

117TH CONGRESS 

1ST SESSION H. R. 2954 

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

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 4, 2021 

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

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

the Committees on Financial Services, and Education and Labor, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To increase retirement savings, simplify and clarify 

retirement plan rules, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Securing a Strong Retirement Act of 2021’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—EXPANDING COVERAGE AND INCREASING RETIREMENT 

SAVINGS 

Sec. 101. Expanding automatic enrollment in retirement plans. 

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

Sec. 103. Promotion of Saver’s Credit. 

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

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

Sec. 106. Indexing IRA catch-up limit. 

Sec. 107. Higher catch-up limit to apply at age 62, 63, and 64. 

Sec. 108. Multiple employer 403(b) plans. 

Sec. 109. Treatment of student loan payments as elective deferrals for purposes 

of matching contributions. 

Sec. 110. Application of credit for small employer pension plan startup costs to 

employers which join an existing plan. 

Sec. 111. Military spouse retirement plan eligibility credit for small employers. 

Sec. 112. Small immediate financial incentives for contributing to a plan. 

Sec. 113. Safe harbor for corrections of employee elective deferral failures. 

Sec. 114. One-year reduction in period of service requirement for long-term, 

part-time workers. 

Sec. 115. Findings relating to S corporation ESOPs. 

TITLE II—PRESERVATION OF INCOME 

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

Sec. 202. Qualifying longevity annuity contracts. 

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

TITLE III—SIMPLIFICATION AND CLARIFICATION OF 

RETIREMENT PLAN RULES 

Sec. 301. Recovery of retirement plan overpayments. 

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

Sec. 303. Performance benchmarks for asset allocation funds. 

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

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

Sec. 306. Retirement savings lost and found. 

Sec. 307. Expansion of Employee Plans Compliance Resolution System. 

Sec. 308. Eliminate the ‘‘first day of the month’’ requirement for governmental 

section 457(b) plans. 

Sec. 309. One-time election for qualified charitable distribution to split-interest 

entity; increase in qualified charitable distribution limitation. 

Sec. 310. Distributions to firefighters. 

Sec. 311. Exclusion of certain disability-related first responder retirement payments. 

Sec. 312. Individual retirement plan statute of limitations for excise tax on excess contributions and certain accumulations. 

Sec. 313. Requirement to provide paper statements in certain cases. 

Sec. 314. Separate application of top heavy rules to defined contribution plans 

covering excludible employees. 

Sec. 315. Repayment of qualified birth or adoption distribution limited to 3 

years. 


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Sec. 316. Employer may rely on employee certifying that deemed hardship distribution conditions are met. 

Sec. 317. Penalty-free withdrawals from retirement plans for individuals in case 

of domestic abuse. 

Sec. 318. Reform of family attribution rule. 

Sec. 319. Amendments to increase benefit accruals under plan for previous plan 

year allowed until employer tax return due date. 

Sec. 320. Retroactive first year elective deferrals for sole proprietors. 

Sec. 321. Limiting cessation of IRA treatment to portion of account involved 

in a prohibited transaction. 

TITLE IV—TECHNICAL AMENDMENTS 

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

Enhancement Act of 2019. 

TITLE V—ADMINISTRATIVE PROVISIONS 

Sec. 501. Provisions relating to plan amendments. 

TITLE VI—REVENUE PROVISIONS 

Sec. 601. Simple and SEP Roth IRAs. 

Sec. 602. Hardship withdrawal rules for 403(b) plans. 

Sec. 603. Elective deferrals generally limited to regular contribution limit. 

Sec. 604. Optional treatment of employer matching contributions as Roth contributions. 

1 TITLE I—EXPANDING COVERAGE 

2 AND INCREASING RETIRE3 MENT SAVINGS 

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

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

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

8 amended by inserting after section 414 the following new 

9 section: 

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

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

13 this section— 


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

2 qualified cash or deferred arrangement described in 

3 section 401(k) unless such arrangement meets the 

4 automatic enrollment requirements of subsection (b), 

5 and 

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

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

8 reduction agreement shall not be treated as de9 scribed in such section unless such agreement meets 

10 the automatic enrollment requirements of subsection 

11 (b). 

12 ‘‘(b) AUTOMATIC ENROLLMENT REQUIREMENTS.— 

13 ‘‘(1) IN GENERAL.—An arrangement or agree14 ment meets the requirements of this subsection if 

15 such arrangement or agreement is an eligible auto16 matic contribution arrangement (as defined in sec17 tion 414(w)(3)) which meets the requirements of 

18 paragraphs (2) through (4). 

19 ‘‘(2) ALLOWANCE OF PERMISSIBLE WITH20 DRAWALS.—An eligible automatic contribution ar21 rangement meets the requirements of this paragraph 

22 if such arrangement allows employees to make per23 missible withdrawals (as defined in section 

24 414(w)(2)). 

25 ‘‘(3) MINIMUM CONTRIBUTION PERCENTAGE.— 


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

2 contribution arrangement meets the require3 ments of this paragraph if— 

4 ‘‘(i) the uniform percentage of com5 pensation contributed by the participant 

6 under such arrangement during the first 

7 year of participation is not less than 3 per8 cent and not more than 10 percent (unless 

9 the participant specifically elects not to 

10 have such contributions made or to have 

11 such contributions made at a different per12 centage), and 

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

14 plan year starting after each completed 

15 year of participation under such arrange16 ment such uniform percentage is increased 

17 by 1 percentage point (to at least 10 per18 cent, but not more than 15 percent) unless 

19 the participant specifically elects not to 

20 have such contributions made or to have 

21 such contributions made at a different per22 centage. 

23 ‘‘(B) INITIAL REDUCED CEILING FOR CER24 TAIN PLANS.—In the case of any arrangement 

25 to which this section applies (other than an arVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 rangement that meets the requirements of para2 graph (12) or (13) of section 401(k)), for plan 

3 years ending before January 1, 2025, subpara4 graph (A)(ii) shall be applied by substituting 

5 ‘10 percent’ for ‘15 percent’. 

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

7 automatic contribution arrangement meets the re8 quirements of this paragraph if amounts contributed 

9 pursuant to such arrangement, and for which no in10 vestment is elected by the participant, are invested 

11 consistent with the requirements of section 

12 2550.404c–5 of title 29, Code of Federal Regula13 tions (or any successor regulations). 

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

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

16 apply to any simple plan (within the meaning of sec17 tion 401(k)(11)). 

18 ‘‘(2) EXCEPTION FOR PLANS OR ARRANGE19 MENTS ESTABLISHED BEFORE ENACTMENT OF SEC20 TION.— 

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

22 not apply to— 

23 ‘‘(i) any qualified cash or deferred ar24 rangement established before the date of 

25 the enactment of this section, or 


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1 ‘‘(ii) any annuity contract purchased 

2 under a plan established before the date of 

3 the enactment of this section. 

4 ‘‘(B) POST-ENACTMENT ADOPTION OF

5 MULTIPLE EMPLOYER PLAN.—Subparagraph 

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

7 adopting after such date of enactment a plan 

8 maintained by more than one employer, and 

9 subsection (a) shall apply with respect to such 

10 employer as if such plan were a single plan. 

11 ‘‘(3) EXCEPTION FOR GOVERNMENTAL AND

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

13 any governmental plan (within the meaning of sec14 tion 414(d)) or any church plan (within the meaning 

15 of section 414(e)). 

16 ‘‘(4) EXCEPTION FOR NEW AND SMALL BUSI17 NESSES.— 

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

19 shall not apply to any qualified cash or deferred 

20 arrangement, or any annuity contract pur21 chased under a plan, while the employer main22 taining such plan (and any predecessor em23 ployer) has been in existence for less than 3 

24 years. 


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

2 shall not apply to any qualified cash or deferred 

3 arrangement, any annuity contract purchased 

4 under a plan, earlier than the date that is 1 

5 year after the close of the first taxable year 

6 with respect to which the employer maintaining 

7 the plan normally employed more than 10 em8 ployees. 

9 ‘‘(C) TREATMENT OF MULTIPLE EM10 PLOYER PLANS.—In the case of a plan main11 tained by more than 1 employer, subparagraphs 

12 (A) and (B) shall be applied separately with re13 spect to each such employer, and all such em14 ployers to which subsection (a) applies (after 

15 the application of this paragraph) shall be 

16 treated as maintaining a separate plan for pur17 poses of this section.’’. 

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

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

20 the Internal Revenue Code of 1986 is amended by insert21 ing after the item relating to section 414 the following 

22 new item: 

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

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

24 this section shall apply to plan years beginning after De25 cember 31, 2022. 


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

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

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

7 ‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL

8 EMPLOYERS.—In the case of an employer which 

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

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

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

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

13 percent’.’’. 

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

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

17 adding at the end the following new subsection: 

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

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

21 employer, the credit allowed for the taxable year 

22 under subsection (a) (determined without regard to 

23 this subsection) shall be increased by an amount 

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


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1 eligible employer plan (other than a defined benefit 

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

3 ‘‘(2) LIMITATIONS.— 

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

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

7 any employee of the employer shall not exceed 

8 $1,000. 

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

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

12 the amount determined under paragraph (1) 

13 (without regard to this subparagraph) shall be 

14 reduced by an amount equal to the product 

15 of— 

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

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

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

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

25 established with respect to the eligible employer shall 


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1 be 100 percent, and for taxable years thereafter 

2 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% 

3 ‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 

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

6 and the number of employees of an employer shall 

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

9 the taxable year during which the eligible employer 

10 plan to which this section applies is established with 

11 respect to the eligible employer.’’. 

12 (c) DISALLOWANCE OF DEDUCTION.—Section 

13 45E(e)(2) of such Code is amended to read as follows: 

14 ‘‘(2) DISALLOWANCE OF DEDUCTION.—No de15 duction shall be allowed— 

16 ‘‘(A) for that portion of the qualified start17 up costs paid or incurred for the taxable year 

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

19 credit determined under subsection (a) as is 

20 properly allocable to such costs, and 


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1 ‘‘(B) for that portion of the employer con2 tributions by the employer for the taxable year 

3 which is equal to so much of the credit increase 

4 determined under subsection (f) as is properly 

5 allocable to such contributions.’’. 

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

7 this section shall apply to taxable years beginning after 

8 December 31, 2021. 

9 SEC. 103. PROMOTION OF SAVER’S CREDIT. 

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

11 shall take such steps as the Secretary determines are nec12 essary and appropriate to increase public awareness of the 

13 credit provided under section 25B of the Internal Revenue 

14 Code of 1986. 

15 (b) REPORT TO CONGRESS.— 

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

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

18 shall provide a report to Congress to summarize the 

19 anticipated promotion efforts of the Treasury under 

20 subsection (a). 

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

22 (A) a description of plans for— 

23 (i) the development and distribution 

24 of digital and print materials, including the 

25 distribution of such materials to States for 


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1 participants in State facilitated retirement 

2 savings programs, and 

3 (ii) the translation of such materials 

4 into the 10 most commonly spoken lan5 guages in the United States after English 

6 (as determined by reference to the most re7 cent American Community Survey of the 

8 Bureau of the Census), and 

9 (B) such other information as the Sec10 retary determines is necessary. 

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

12 (a) IN GENERAL.— 

13 (1) PERMITTED INVESTMENTS.—Section 

14 403(b)(7)(A) of the Internal Revenue Code of 1986 

15 is amended by striking ‘‘if the amounts are to be in16 vested in regulated investment company stock to be 

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

18 amounts are to be held in that custodial account and 

19 invested in regulated investment company stock or a 

20 group trust intended to satisfy the requirements of 

21 Internal Revenue Service Revenue Ruling 81–100 

22 (or any successor guidance)’’. 

23 (2) CONFORMING AMENDMENT.—The heading 

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


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1 amended by striking ‘‘FOR REGULATED INVESTMENT

2 COMPANY STOCK’’. 

3 (3) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall apply to amounts invested 

5 after December 31, 2021. 

6 (b) AMENDMENTS TO THE INVESTMENT COMPANY

7 ACT OF 1940.—Section 3(c)(11) of the Investment Com8 pany Act of 1940 (15 U.S.C. 80a–3(c)(11)) is amended 

9 to read as follows: 

10 ‘‘(11) Any— 

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

12 profit-sharing trust which meets the require13 ments for qualification under section 401 of the 

14 Internal Revenue Code of 1986; 

15 ‘‘(B) custodial account meeting the re16 quirements of section 403(b)(7) of such Code; 

17 ‘‘(C) governmental plan described in sec18 tion 3(a)(2)(C) of the Securities Act of 1933; 

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

20 bank consisting solely of assets of one or 

21 more— 

22 ‘‘(i) trusts described in subparagraph 

23 (A); 

24 ‘‘(ii) government plans described in 

25 subparagraph (C); 


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1 ‘‘(iii) church plans, companies, or ac2 counts that are excluded from the defini3 tion of an investment company under para4 graph (14) of this subsection; or 

5 ‘‘(iv) plans which meet the require6 ments of section 403(b) of the Internal 

7 Revenue Code of 1986 if— 

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

9 I of the Employee Retirement Income 

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

11 et seq.); 

12 ‘‘(II) any employer making such 

13 plan available agrees to serve as a fi14 duciary for the plan with respect to 

15 the selection of the plan’s investments 

16 among which participants can choose; 

17 or 

18 ‘‘(III) such plan is a govern19 mental plan (as defined in section 

20 414(d) of such Code); or 

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

22 are derived solely from— 

23 ‘‘(i) contributions under pension or 

24 profit-sharing plans which meet the re25 quirements of section 401 of the Internal 


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1 Revenue Code of 1986 or the requirements 

2 for deduction of the employer’s contribu3 tion under section 404(a)(2) of such Code; 

4 ‘‘(ii) contributions under govern5 mental plans in connection with which in6 terests, participations, or securities are ex7 empted from the registration provisions of 

8 section 5 of the Securities Act of 1933 by 

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

10 ‘‘(iii) advances made by an insurance 

11 company in connection with the operation 

12 of such separate account; and 

13 ‘‘(iv) contributions to a plan described 

14 in subparagraph (D)(iv).’’. 

15 (c) AMENDMENTS TO THE SECURITIES ACT OF

16 1933.—Section 3(a)(2) of the Securities Act of 1933 (15 

17 U.S.C. 77c(a)(2)) is amended— 

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

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

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

21 the Employee Retirement Income Security Act of 

22 1974 (29 U.S.C. 1001 et seq.), (ii) any employer 

23 making such plan available agrees to serve as a fidu24 ciary for the plan with respect to the selection of the 

25 plan’s investments among which participants can 


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

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

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

4 ‘‘(C), (D), or (E)’’; and 

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

6 and inserting ‘‘(iii) in the case of a plan not de7 scribed in subparagraph (D), which is a plan fund8 ed’’. 

9 (d) AMENDMENTS TO THE SECURITIES EXCHANGE

10 ACT OF 1934.—Section 3(a)(12)(C) of the Securities Ex11 change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amend12 ed— 

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

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

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

16 the Employee Retirement Income Security Act of 

17 1974 (29 U.S.C. 1001 et seq.), (II) any employer 

18 making such plan available agrees to serve as a fidu19 ciary for the plan with respect to the selection of the 

20 plan’s investments among which participants can 

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

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

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

24 ‘‘(ii), (iii), or (iv)’’; and 


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1 (3) by striking ‘‘(II) is a plan funded’’ and in2 serting ‘‘(II) in the case of a plan not described in 

3 clause (iv), is a plan funded’’. 

4 SEC. 105. INCREASE IN AGE FOR REQUIRED BEGINNING 

5 DATE FOR MANDATORY DISTRIBUTIONS. 

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

7 Internal Revenue Code of 1986 is amended by striking 

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

9 (b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR

10 OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec11 tion 401(a)(9) of such Code are each amended by striking 

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

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

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

15 clause: 

16 ‘‘(v) APPLICABLE AGE.— 

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

18 who attains age 72 after December 

19 31, 2021, and age 73 before January 

20 1, 2029, the applicable age is 73. 

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

22 who attains age 73 after December 

23 31, 2028, and age 74 before January 

24 1, 2032, the applicable age is 74. 


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1 ‘‘(III) In the case of an indi2 vidual who attains age 74 after De3 cember 31, 2031, the applicable age is 

4 75.’’. 

5 (d) CONFORMING AMENDMENTS.—The last sentence 

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

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

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

9 which such taxable year begins)’’. 

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

11 this section shall apply to distributions required to be 

12 made after December 31, 2021, with respect to individuals 

13 who attain age 72 after such date. 

14 SEC. 106. INDEXING IRA CATCH-UP LIMIT. 

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

16 219(b)(5) of the Internal Revenue Code of 1986 is amend17 ed by adding at the end the following new clause: 

18 ‘‘(iii) INDEXING OF CATCH-UP LIMITA19 TION.—In the case of any taxable year be20 ginning in a calendar year after 2022, the 

21 $1,000 amount under subparagraph (B)(ii) 

22 shall be increased by an amount equal to— 

23 ‘‘(I) such dollar amount, multi24 plied by 


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1 ‘‘(II) the cost-of-living adjust2 ment determined under section 1(f)(3) 

3 for the calendar year in which the tax4 able year begins, determined by sub5 stituting ‘calendar year 2021’ for ‘cal6 endar year 2016’ in subparagraph 

7 (A)(ii) thereof. 

8 If any amount after adjustment under the 

9 preceding sentence is not a multiple of 

10 $100, such amount shall be rounded to the 

11 next lower multiple of $100.’’. 

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

13 this section shall apply to taxable years beginning after 

14 December 31, 2022. 

15 SEC. 107. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, 

16 AND 64. 

17 (a) IN GENERAL.— 

18 (1) PLANS OTHER THAN SIMPLE PLANS.—Sec19 tion 414(v)(2)(B)(i) of the Internal Revenue Code of 

20 1986 is amended by inserting the following before 

21 the period: ‘‘($10,000, in the case of an eligible par22 ticipant who has attained age 62, but not age 65, 

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

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

25 such Code is amended by inserting the following beVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 fore the period: ‘‘($5,000, in the case of an eligible 

2 participant who has attained age 62, but not age 65, 

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

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

5 (C) of section 414(v)(2) of such Code is amended by add6 ing at the end the following: ‘‘In the case of a year begin7 ning after December 31, 2022, the Secretary shall adjust 

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

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

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

11 manner as adjustments under the preceding sentence; ex12 cept that the base period taken into account shall be the 

13 calendar quarter beginning July 1, 2021.’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2022. 

17 SEC. 108. MULTIPLE EMPLOYER 403(b) PLANS. 

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

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

20 the following new paragraph: 

21 ‘‘(15) MULTIPLE EMPLOYER PLANS.— 

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

23 a church plan, this subsection shall not be 

24 treated as failing to apply to an annuity con25 tract solely by reason of such contract being 


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1 purchased under a plan maintained by more 

2 than 1 employer. 

3 ‘‘(B) TREATMENT OF EMPLOYERS FAILING

4 TO MEET REQUIREMENTS OF PLAN.— 

5 ‘‘(i) IN GENERAL.—In the case of a 

6 plan maintained by more than 1 employer, 

7 this subsection shall not be treated as fail8 ing to apply to an annuity contract held 

9 under such plan merely because of one or 

10 more employers failing to meet the require11 ments of this subsection if such plan satis12 fies rules similar to the rules of section 

13 413(e)(2) with respect to any such em14 ployer failure. 

15 ‘‘(ii) ADDITIONAL REQUIREMENTS IN

16 CASE OF NON-GOVERNMENTAL PLANS.—A 

17 plan shall not be treated as meeting the re18 quirements of this subparagraph unless the 

19 plan meets the requirements of subpara20 graph (A) or (B) of section 413(e)(1), ex21 cept in the case of a multiple employer 

22 plan maintained solely by any of the fol23 lowing: A State, a political subdivision of a 

24 State, or an agency or instrumentality of 

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


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

2 EMPLOYER PLAN.—Section 6057 of such Code is amend3 ed by redesignating subsection (g) as subsection (h) and 

4 by inserting after subsection (f) the following new sub5 section: 

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

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

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

9 by reason of the plan under which such contracts are pur10 chased meeting the requirements of paragraph (15) there11 of, such plan shall be treated as a single plan for purposes 

12 of this section.’’. 

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

14 MULTIPLE EMPLOYER PLAN.—Section 6058 of the Inter15 nal Revenue Code of 1986 is amended by redesignating 

16 subsection (f) as subsection (g) and by inserting after sub17 section (e) the following new subsection: 

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

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

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

21 by reason of the plan under which such contracts are pur22 chased meeting the requirements of paragraph (15) there23 of, such plan shall be treated as a single plan for purposes 

24 of this section.’’. 


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1 (d) AMENDMENTS TO EMPLOYEE RETIREMENT IN2 COME SECURITY ACT OF 1974.— 

3 (1) TREATED AS POOLED EMPLOYER PLAN.— 

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

5 Employee Retirement Income Security Act of 

6 1974 is amended— 

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

8 501(a) of such Code or’’ and inserting 

9 ‘‘501(a) of such Code, a plan that consists 

10 of contracts described in section 403(b) of 

11 such Code, or’’; and 

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

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

14 plan, but such term shall include any pro15 gram (other than a governmental plan) 

16 maintained for the benefit of the employees 

17 of more than 1 employer that consists of 

18 contracts described in section 403(b) of 

19 such Code and that meets the require20 ments of subparagraph (A) or (B) of sec21 tion 413(e)(1) of such Code.’’. 

22 (B) CONFORMING AMENDMENTS.—Sec23 tions 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of such 

24 Act are each amended by striking ‘‘section 

25 401(a) of such Code or’’ and inserting ‘‘401(a) 


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1 of such Code, a plan that consists of contracts 

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

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

4 Act is amended— 

5 (A) by striking ‘‘trustees meeting the re6 quirements of section 408(a)(2) of the Internal 

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

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

9 consists of contracts described in section 403(b) 

10 of the Internal Revenue Code of 1986) meeting 

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

12 Code’’, and 

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

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

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

16 (e) REGULATIONS RELATING TO PLAN TERMI17 NATION.—The Secretary of the Treasury (or the Sec18 retary’s designee) shall prescribe such regulations as may 

19 be necessary to clarify the treatment of a plan termination 

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

21 403(b)(15) of such Code applies. 

22 (f) MODIFICATION OF MODEL PLAN LANGUAGE, 

23 ETC.— 

24 (1) PLAN NOTIFICATIONS.—The Secretary of 

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


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1 modify the model plan language published under sec2 tion 413(e)(5) of the Internal Revenue Code of 1986 

3 to include language which notifies participating em4 ployers described in section 501(c)(3), and which are 

5 exempt from tax under section 501(a), that the plan 

6 is subject to the Employee Retirement Income Secu7 rity Act of 1974 and that such employer is a plan 

8 sponsor with respect to its employees participating 

9 in the multiple employer plan and, as such, has cer10 tain fiduciary duties with respect to the plan and to 

11 its employees. 

12 (2) MODEL PLANS FOR MULTIPLE EMPLOYER

13 403(b) NON-GOVERNMENTAL PLANS.—For plans to 

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

15 Code of 1986 applies (other than a plan maintained 

16 for its employees by a State, a political subdivision 

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

18 one or more of the foregoing) the Secretary shall 

19 publish model plan language similar to model plan 

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

21 Code. 

22 (3) EDUCATIONAL OUTREACH TO EMPLOYERS

23 EXEMPT FROM TAX.—The Secretary shall provide 

24 education and outreach to increase awareness to em25 ployers described in section 501(c)(3), and which are 


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1 exempt from tax under section 501(a), that multiple 

2 employer plans are subject to the Employee Retire3 ment Income Security Act of 1974 and that such 

4 employer is a plan sponsor with respect to its em5 ployees participating in the multiple employer plan 

6 and, as such, has certain fiduciary duties with re7 spect to the plan and to its employees. 

8 (g) NO INFERENCE WITH RESPECT TO CHURCH

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

10 the Internal Revenue Code of 1986 to an annuity contract 

11 purchased under a church plan (as defined in section 

12 414(e) of such Code) maintained by more than 1 em13 ployer, or to any application of rules similar to section 

14 413(e) of such Code to such a plan, no inference shall 

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

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

17 (h) EFFECTIVE DATE.— 

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

19 this section shall apply to plan years beginning after 

20 December 31, 2021. 

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

22 amendments made by subsection (a) shall be con23 strued as limiting the authority of the Secretary of 

24 the Treasury or the Secretary’s delegate (determined 

25 without regard to such amendment) to provide for 


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1 the proper treatment of a failure to meet any re2 quirement applicable under such Code with respect 

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

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

5 SEC. 109. TREATMENT OF STUDENT LOAN PAYMENTS AS 

6 ELECTIVE DEFERRALS FOR PURPOSES OF 

7 MATCHING CONTRIBUTIONS. 

8 (a) IN GENERAL.—Section 401(m)(4)(A) of the In9 ternal Revenue Code of 1986 is amended by striking 

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

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

12 at the end the following new clause: 

13 ‘‘(iii) subject to the requirements of 

14 paragraph (13), any employer contribution 

15 made to a defined contribution plan on be16 half of an employee on account of a quali17 fied student loan payment.’’. 

18 (b) QUALIFIED STUDENT LOAN PAYMENT.—Section 

19 401(m)(4) of such Code is amended by adding at the end 

20 the following new subparagraph: 

21 ‘‘(D) QUALIFIED STUDENT LOAN PAY22 MENT.—The term ‘qualified student loan pay23 ment’ means a payment made by an employee 

24 in repayment of a qualified education loan (as 

25 defined section 221(d)(1)) incurred by the emVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 ployee to pay qualified higher education ex2 penses, but only— 

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

4 the aggregate for the year do not exceed 

5 an amount equal to— 

6 ‘‘(I) the limitation applicable 

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

8 if lesser, the employee’s compensation 

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

10 the year), reduced by 

11 ‘‘(II) the elective deferrals made 

12 by the employee for such year, and 

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

14 employer making the matching contribu15 tion under this paragraph that such pay16 ment has been made on such loan. 

17 For purposes of this subparagraph, the term 

18 ‘qualified higher education expenses’ means the 

19 cost of attendance (as defined in section 472 of 

20 the Higher Education Act of 1965, as in effect 

21 on the day before the date of the enactment of 

22 the Taxpayer Relief Act of 1997) at an eligible 

23 educational institution (as defined in section 

24 221(d)(2)).’’. 


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1 (c) MATCHING CONTRIBUTIONS FOR QUALIFIED

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

3 Code is amended by redesignating paragraph (13) as para4 graph (14), and by inserting after paragraph (12) the fol5 lowing new paragraph: 

6 ‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI7 FIED STUDENT LOAN PAYMENTS.— 

8 ‘‘(A) IN GENERAL.—For purposes of para9 graph (4)(A)(iii), an employer contribution 

10 made to a defined contribution plan on account 

11 of a qualified student loan payment shall be 

12 treated as a matching contribution for purposes 

13 of this title if— 

14 ‘‘(i) the plan provides matching con15 tributions on account of elective deferrals 

16 at the same rate as contributions on ac17 count of qualified student loan payments, 

18 ‘‘(ii) the plan provides matching con19 tributions on account of qualified student 

20 loan payments only on behalf of employees 

21 otherwise eligible to receive matching con22 tributions on account of elective deferrals, 

23 ‘‘(iii) under the plan, all employees el24 igible to receive matching contributions on 

25 account of elective deferrals are eligible to 


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1 receive matching contributions on account 

2 of qualified student loan payments, and 

3 ‘‘(iv) the plan provides that matching 

4 contributions on account of qualified stu5 dent loan payments vest in the same man6 ner as matching contributions on account 

7 of elective deferrals. 

8 ‘‘(B) TREATMENT FOR PURPOSES OF NON9 DISCRIMINATION RULES, ETC.— 

10 ‘‘(i) NONDISCRIMINATION RULES.— 

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

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

13 matching contributions described in para14 graph (4)(A)(iii) shall not fail to be treated 

15 as available to an employee solely because 

16 such employee does not have debt incurred 

17 under a qualified education loan (as de18 fined in section 221(d)(1)). 

19 ‘‘(ii) STUDENT LOAN PAYMENTS NOT

20 TREATED AS PLAN CONTRIBUTION.—Ex21 cept as provided in clause (iii), a qualified 

22 student loan payment shall not be treated 

23 as a contribution to a plan under this title. 

24 ‘‘(iii) MATCHING CONTRIBUTION

25 RULES.—Solely for purposes of meeting 


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

2 (12) of this subsection, or paragraph 

3 (11)(B)(i)(II), (12)(B), or (13)(D) of sub4 section (k), a plan may treat a qualified 

5 student loan payment as an elective defer6 ral or an elective contribution, whichever is 

7 applicable. 

8 ‘‘(iv) ACTUAL DEFERRAL PERCENT9 AGE TESTING.—In determining whether a 

10 plan meets the requirements of subsection 

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

12 apply the requirements of such subsection 

13 separately with respect to all employees 

14 who receive matching contributions de15 scribed in paragraph (4)(A)(iii) for the 

16 plan year. 

17 ‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE

18 CERTIFICATION.—The employer may rely on an 

19 employee certification of payment under para20 graph (4)(D)(ii).’’. 

21 (d) SIMPLE RETIREMENT ACCOUNTS.—Section 

22 408(p)(2) of such Code is amended by adding at the end 

23 the following new subparagraph: 

24 ‘‘(F) MATCHING CONTRIBUTIONS FOR

25 QUALIFIED STUDENT LOAN PAYMENTS.— 


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1 ‘‘(i) IN GENERAL.—Subject to the 

2 rules of clause (iii), an arrangement shall 

3 not fail to be treated as meeting the re4 quirements of subparagraph (A)(iii) solely 

5 because under the arrangement, solely for 

6 purposes of such subparagraph, qualified 

7 student loan payments are treated as 

8 amounts elected by the employee under 

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

10 payments do not exceed— 

11 ‘‘(I) the applicable dollar amount 

12 under subparagraph (E) (after appli13 cation of section 414(v)) for the year 

14 (or, if lesser, the employee’s com15 pensation (as defined in section 

16 415(c)(3)) for the year), reduced by 

17 ‘‘(II) any other amounts elected 

18 by the employee under subparagraph 

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

20 ‘‘(ii) QUALIFIED STUDENT LOAN PAY21 MENT.—For purposes of this subpara22 graph— 

23 ‘‘(I) IN GENERAL.—The term 

24 ‘qualified student loan payment’ 

25 means a payment made by an emVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 ployee in repayment of a qualified 

2 education loan (as defined in section 

3 221(d)(1)) incurred by the employee 

4 to pay qualified higher education ex5 penses, but only if the employee cer6 tifies to the employer making the 

7 matching contribution that such pay8 ment has been made on such a loan. 

9 ‘‘(II) QUALIFIED HIGHER EDU10 CATION EXPENSES.—The term ‘quali11 fied higher education expenses’ has 

12 the same meaning as when used in 

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

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

15 shall apply to an arrangement only if, 

16 under the arrangement— 

17 ‘‘(I) matching contributions on 

18 account of qualified student loan pay19 ments are provided only on behalf of 

20 employees otherwise eligible to elect 

21 contributions under subparagraph 

22 (A)(i)(I), and 

23 ‘‘(II) all employees otherwise eli24 gible to participate in the arrange25 ment are eligible to receive matching 


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•HR 2954 IH

1 contributions on account of qualified 

2 student loan payments.’’. 

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

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

5 fact that the employer offers matching contributions on 

6 account of qualified student loan payments as described 

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

8 determining whether the arrangement satisfies the re9 quirements of clause (ii) (and any regulation there10 under).’’. 

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

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

13 which is established and maintained by an employer which 

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

15 as failing to meet the requirements of this subsection sole16 ly because the plan, or another plan maintained by the 

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

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

19 of qualified student loan payments as described in section 

20 401(m)(13).’’. 

21 (g) REGULATORY AUTHORITY.—The Secretary shall 

22 prescribe regulations for purposes of implementing the 

23 amendments made by this section, including regulations— 

24 (1) permitting a plan to make matching con25 tributions for qualified student loan payments, as 


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•HR 2954 IH

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

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

3 this section, at a different frequency than matching 

4 contributions are otherwise made under the plan, 

5 provided that the frequency is not less than annu6 ally; 

7 (2) permitting employers to establish reasonable 

8 procedures to claim matching contributions for such 

9 qualified student loan payments under the plan, in10 cluding an annual deadline (not earlier than 3 

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

12 a claim must be made; and 

13 (3) promulgating model amendments which 

14 plans may adopt to implement matching contribu15 tions on such qualified student loan payments for 

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

17 457(b) of the Internal Revenue Code of 1986. 

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

19 this section shall apply to contributions made for plan 

20 years beginning after December 31, 2021. 

21 SEC. 110. APPLICATION OF CREDIT FOR SMALL EMPLOYER 

22 PENSION PLAN STARTUP COSTS TO EMPLOY23 ERS WHICH JOIN AN EXISTING PLAN. 

24 (a) IN GENERAL.—Section 45E(d)(3)(A) of the In25 ternal Revenue Code of 1986 is amended by striking ‘‘efVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 fective’’ and inserting ‘‘effective with respect to the eligible 

2 employer’’. 

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

4 this section shall apply to eligible employer plans which 

5 become effective with respect to the eligible employer after 

6 the date of the enactment of this Act. 

7 SEC. 111. MILITARY SPOUSE RETIREMENT PLAN ELIGI8 BILITY CREDIT FOR SMALL EMPLOYERS. 

9 (a) IN GENERAL.—Subpart D of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 

11 1986 is amended by adding at the end the following new 

12 section: 

13 ‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGI14 BILITY CREDIT FOR SMALL EMPLOYERS. 

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

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

17 retirement plan eligibility credit determined under this 

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

19 sum of— 

20 ‘‘(1) $250 with respect to each military spouse 

21 who is an employee of such employer and who is eli22 gible to participate in an eligible defined contribu23 tion plan of such employer at any time during such 

24 taxable year, plus 


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

2 employer to all such plans with respect to such em3 ployee during such taxable year as do not exceed 

4 $250. 

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

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

7 the taxable year which includes the date on which such 

8 individual began participating in the eligible defined con9 tribution plan of the employer and the 2 succeeding tax10 able years. 

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

12 this section— 

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

14 employer’ means an eligible employer (as defined in 

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

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

17 A rule similar to the rule of section 

18 408(p)(2)(C)(i)(II) shall apply for purposes of this 

19 section. 

20 ‘‘(d) MILITARY SPOUSE.—For purposes of this sec21 tion— 

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

23 means, with respect to any employer, any individual 

24 who is married (within the meaning of section 7703 

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


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

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

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

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

5 certification that such employee’s spouse is a mem6 ber of the uniformed services if such certification 

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

8 spouse. 

9 ‘‘(2) EXCLUSION OF HIGHLY COMPENSATED

10 EMPLOYEES.—With respect to any employer, the 

11 term ‘military spouse’ shall not include any indi12 vidual if such individual is a highly compensated em13 ployee of such employer (within the meaning of sec14 tion 414(q)). 

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

16 For purposes of this section, the term ‘eligible defined con17 tribution plan’ means, with respect to any eligible small 

18 employer, any defined contribution plan (as defined in sec19 tion 414(i)) of such employer if, under the terms of such 

20 plan— 

21 ‘‘(1) military spouses employed by such em22 ployer are eligible to participate in such plan not 

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

24 on which such individual begins employment with 

25 such employer, and 


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1 ‘‘(2) military spouses who are eligible to partici2 pate in such plan— 

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

4 amount of employer contributions under such 

5 plan which is not less the amount of such con6 tributions that a similarly situated participant 

7 who is not a military spouse would be eligible 

8 to receive under such plan after 2 years of serv9 ice, and 

10 ‘‘(B) immediately have a nonforfeitable 

11 right to the employee’s accrued benefit derived 

12 from employer contributions under such plan. 

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

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

15 section 414 shall be treated as one employer for purposes 

16 of this section.’’. 

17 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI18 NESS CREDIT.—Section 38(b) of such Code is amended 

19 by striking ‘‘plus’’ at the end of paragraph (32), by strik20 ing the period at the end of paragraph (33) and inserting 

21 ‘‘, plus’’, and by adding at the end the following new para22 graph: 

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

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


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•HR 2954 IH

1 retirement plan eligibility credit determined under 

2 section 45U(a).’’. 

3 (c) SPECIFIED CREDIT FOR PURPOSES OF CER4 TIFIED PROFESSIONAL ORGANIZATIONS.—Section 

5 3511(d)(2) of such Code is amended by redesignating sub6 paragraphs (F), (G), and (H) as subparagraphs (G), (H), 

7 and (I), respectively, and by inserting after subparagraph 

8 (E) the following new subparagraph: 

9 ‘‘(F) section 45U (military spouse retire10 ment plan eligibility credit),’’. 

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

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

13 of such Code is amended by adding at the end the fol14 lowing new item: 

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

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

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

18 SEC. 112. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 

19 CONTRIBUTING TO A PLAN. 

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

21 401(k)(4) of the Internal Revenue Code of 1986 is amend22 ed by inserting ‘‘(other than a de minimis financial incen23 tive)’’ after ‘‘any other benefit’’. 


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

2 section 403(b)(12) of such Code, as amended by the pre3 ceding provisions of this Act, is further amended by add4 ing at the end the following: ‘‘A plan shall not fail to sat5 isfy clause (ii) solely by reason of offering a de minimis 

6 financial incentive to employees to elect to have the em7 ployer make contributions pursuant to a salary reduction 

8 agreement.’’. 

9 (c) EXEMPTION FROM PROHIBITED TRANSACTION

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

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

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

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

14 new paragraph: 

15 ‘‘(24) the provision of a de minimis financial in16 centive described in section 401(k)(4)(A) or 

17 403(b)(12)(A).’’. 

18 (d) AMENDMENT OF EMPLOYEE RETIREMENT IN19 COME SECURITY ACT OF 1974.—Subsection (b) of section 

20 408 of the Employee Retirement Income Security Act of 

21 1974 (29 U.S.C. 1108(b)) is amended by adding at the 

22 end the following new paragraph: 

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

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


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•HR 2954 IH

1 403(b)(12)(A) of the Internal Revenue Code of 

2 1986.’’. 

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

4 this section shall apply with respect to plan years begin5 ning after the date of enactment of this Act. 

6 SEC. 113. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 

7 ELECTIVE DEFERRAL FAILURES. 

8 (a) IN GENERAL.—Section 414 of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following new subsection: 

11 ‘‘(aa) CORRECTING AUTOMATIC CONTRIBUTION ER12 RORS.— 

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

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

15 sections 401(a), 403(b), 408, or 457(b), as applica16 ble, solely by reason of a corrected error. 

17 ‘‘(2) CORRECTED ERROR DEFINED.—For pur18 poses of this subsection, the term ‘corrected error’ 

19 means a reasonable administrative error in imple20 menting an automatic enrollment or automatic esca21 lation feature in accordance with the terms of an eli22 gible automatic contribution arrangement (as de23 fined under subsection (w)(3)), provided that such 

24 implementation error— 


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‘‘(A) is corrected by the date that is 91 1 ⁄2

2 months after the end of the plan year during 

3 which the failure occurred, 

4 ‘‘(B) is corrected in a manner that is fa5 vorable to the participant, and 

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

7 all similarly situated participants in a non8 discriminatory manner. 

9 Such correction may occur before or after the partic10 ipant has terminated employment and may occur 

11 without regard to whether the error is identified by 

12 the Secretary. 

13 ‘‘(3) REGULATIONS AND GUIDANCE FOR FAVOR14 ABLE CORRECTION METHODS.—The Secretary shall, 

15 by regulations or other guidance of general applica16 bility, specify the correction methods that are in a 

17 manner favorable to the participant for purposes of 

18 paragraph (2)(B).’’. 

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

20 this section shall apply with respect to any errors with 

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

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

23 of this Act. 


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1 SEC. 114. ONE-YEAR REDUCTION IN PERIOD OF SERVICE 

2 REQUIREMENT FOR LONG-TERM, PART-TIME 

3 WORKERS. 

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

5 Internal Revenue Code of 1986 is amended by striking 

6 ‘‘3’’ and inserting ‘‘2’’. 

7 (b) CLARIFICATION OF PRIOR SERVICE FOR PUR8 POSES OF VESTING RULES.—Section 112(b) of the Set9 ting Every Community Up for Retirement Enhancement 

10 Act of 2019 is amended by striking ‘‘section 

11 401(k)(2)(D)(ii)’’ and inserting ‘‘paragraphs (2)(D)(ii) 

12 and (15)(B)(iii) of section 401(k)’’. 

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

14 this section shall take effect as if included in the enact15 ment of section 112 of the Setting Every Community Up 

16 for Retirement Enhancement Act of 2019. 

17 SEC. 115. FINDINGS RELATING TO S CORPORATION ESOPs. 

18 Congress finds the following: 

19 (1) On January 1, 1998, nearly 25 years after 

20 the Employee Retirement Income Security Act of 

21 1974 was enacted and the employee stock ownership 

22 plan (hereafter in this section referred to as an 

23 ‘‘ESOP’’) was created, employees were first per24 mitted to be owners of subchapter S corporations 

25 pursuant to the Small Business Job Protection Act 

26 of 1996 (Public Law 104–188). 


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1 (2) With the passage of the Taxpayer Relief 

2 Act of 1997 (Public Law 105–34), Congress de3 signed incentives to encourage businesses to become 

4 ESOP-owned S corporations. 

5 (3) Since that time, several thousand companies 

6 have become ESOP-owned S corporations, creating 

7 an ownership interest for several million Americans 

8 in companies in every State in the country, in indus9 tries ranging from heavy manufacturing to construc10 tion and contracting to services. 

11 (4) Every United States worker who is an em12 ployee-owner of an S corporation company through 

13 an ESOP has a valuable qualified retirement savings 

14 account. 

15 (5) Recent studies have shown that employees 

16 of ESOP-owned S corporations enjoy greater job 

17 stability, wages and benefits than employees of com18 parable companies; and ESOP companies are better 

19 able to weather economic downturns. 

20 (6) Studies also show that employee-owners of 

21 S corporation ESOP companies have amassed mean22 ingful retirement savings through their ESOP ac23 counts that will give them the means to retire with 

24 dignity. 


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1 (7) It is the goal of Congress to preserve and 

2 foster employee ownership of S corporations through 

3 ESOPs. 

4 TITLE II—PRESERVATION OF 

5 INCOME 

6 SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION 

7 BARRIERS FOR LIFE ANNUITIES. 

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

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

10 the following new subparagraph: 

11 ‘‘(J) CERTAIN INCREASES IN PAYMENTS

12 UNDER A COMMERCIAL ANNUITY.—Nothing in 

13 this section shall prohibit a commercial annuity 

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

15 is issued in connection with any eligible retire16 ment plan (within the meaning of section 

17 402(c)(8)(B), other than a defined benefit plan) 

18 from providing one or more of the following 

19 types of payments on or after the annuity start20 ing date: 

21 ‘‘(i) annuity payments that increase 

22 by a constant percentage, applied not less 

23 frequently than annually, at a rate that is 

24 less than 5 percent per year, 

25 ‘‘(ii) a lump sum payment that— 


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

2 payment period with respect to an an3 nuity or a full or partial commutation 

4 of the future annuity payments, pro5 vided that such lump sum is deter6 mined using reasonable actuarial 

7 methods and assumptions, as deter8 mined in good faith by the issuer of 

9 the contract, or 

10 ‘‘(II) accelerates the receipt of 

11 annuity payments that are scheduled 

12 to be received within the ensuing 12 

13 months, regardless of whether such 

14 acceleration shortens the payment pe15 riod with respect to the annuity, re16 duces the dollar amount of benefits to 

17 be paid under the contract, or results 

18 in a suspension of annuity payments 

19 during the period being accelerated, 

20 ‘‘(iii) an amount which is in the na21 ture of a dividend or similar distribution, 

22 provided that the issuer of the contract de23 termines such amount based on a reason24 able comparison of the actuarial factors as25 sumed when calculating the initial annuity 


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1 payments and the issuer’s experience with 

2 respect to those factors, or 

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

4 does not exceed the excess of the total 

5 amount of the consideration paid for the 

6 annuity payments, less the aggregate 

7 amount of prior distributions or payments 

8 from or under the contract.’’. 

9 (b) REGULATIONS AND ENFORCEMENT.— 

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

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

12 Secretary of the Treasury shall amend the regula13 tion issued by the Department of the Treasury relat14 ing to ‘‘Required Distributions from Retirement 

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

16 make any corresponding amendments to other regu17 lations, in order to— 

18 (A) conform such regulations to subsection 

19 (a), including by eliminating the types of pay20 ments described in subsection (a) from the 

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

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

23 the total future expected payments must exceed 

24 the total value being annuitized; 


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1 (B) amend Q&A–14(c) of Treasury Regu2 lation section 1.401(a)(9)–6 to provide that a 

3 commercial annuity that provides an initial pay4 ment that is at least equal to the initial pay5 ment that would be required from an individual 

6 account pursuant to Treasury Regulation sec7 tion 1.401(a)(9)–5 will be deemed to satisfy the 

8 requirement in Q&A–14(c) of Treasury Regula9 tion section 1.401(a)(9)–6 that the total future 

10 expected payments must exceed the total value 

11 being annuitized; and 

12 (C) amend Q&A–14(e)(3) of Treasury Reg13 ulation section 1.401(a)(9)–6 to provide that 

14 the total future expected payments under a 

15 commercial annuity are determined using the 

16 tables or other actuarial assumptions that the 

17 issuer of the contract actually uses in pricing 

18 the premiums and benefits with respect to the 

19 contract, provided that such tables or other ac20 tuarial assumptions are reasonable. 

21 (2) ENFORCEMENT.—As of the date of enact22 ment of this Act, the Secretary of the Treasury shall 

23 administer and enforce the law in accordance with 

24 subsections (a) and (b). 


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

2 on the date of the enactment of this Act. 

3 SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 

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

5 1 year after the date of the enactment of this Act, the 

6 Secretary of the Treasury or the Secretary’s delegate 

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

8 shall amend the regulation issued by the Department of 

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

10 (79 Fed. Reg. 37633 (July 2, 2014)), as follows: 

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

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

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

14 of Treasury Regulation section 1.408–8 to eliminate 

15 the requirement that premiums for qualifying lon16 gevity annuity contracts be limited to a percentage 

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

18 corresponding changes to the regulations and related 

19 forms as are necessary to reflect the elimination of 

20 this requirement. 

21 (2) FACILITATE JOINT AND SURVIVOR BENE22 FITS.—The Secretary shall amend Q&A–17(c) of 

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

24 make such corresponding changes to the regulations 

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


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1 in the case of a qualifying longevity annuity contract 

2 which was purchased with joint and survivor annuity 

3 benefits for the individual and the individual’s 

4 spouse which were permissible under the regulations 

5 at the time the contract was originally purchased, a 

6 divorce occurring after the original purchase and be7 fore the annuity payments commence under the con8 tract will not affect the permissibility of the joint 

9 and survivor annuity benefits or other benefits under 

10 the contract, or require any adjustment to the 

11 amount or duration of benefits payable under the 

12 contract, provided that any qualified domestic rela13 tions order (within the meaning of section 414(p) of 

14 the Internal Revenue Code of 1986) or any divorce 

15 or separation instrument (as defined in subsection 

16 (b))— 

17 (A) provides that the former spouse is en18 titled to the survivor benefits under the con19 tract; 

20 (B) does not modify the treatment of the 

21 former spouse as the beneficiary under the con22 tract who is entitled to the survivor benefits; or 

23 (C) does not modify the treatment of the 

24 former spouse as the measuring life for the sur25 vivor benefits under the contract. 


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

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

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

4 such Q&A does not preclude a contract from includ5 ing a provision under which an employee may re6 scind the purchase of the contract within a period 

7 not exceeding 90 days from the date of purchase. 

8 (b) DIVORCE OR SEPARATION INSTRUMENT.—For 

9 purposes of subsection (a)(2), the term ‘‘divorce or separa10 tion instrument’’ means— 

11 (1) a decree of divorce or separate maintenance 

12 or a written instrument incident to such a decree, 

13 (2) a written separation agreement, or 

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

15 requiring a spouse to make payments for the sup16 port or maintenance of the other spouse. 

17 (c) EFFECTIVE DATES, ENFORCEMENT, AND INTER18 PRETATIONS.— 

19 (1) EFFECTIVE DATES.— 

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

21 be effective with respect to contracts purchased 

22 or received in an exchange on or after the date 

23 of the enactment of this Act. 

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

25 (a) shall be effective with respect to contracts 


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1 purchased or received in an exchange on or 

2 after July 2, 2014. 

3 (2) ENFORCEMENT AND INTERPRETATIONS.— 

4 Prior to the date on which the Secretary issues final 

5 regulations pursuant to subsection (a)— 

6 (A) the Secretary (or delegate) shall ad7 minister and enforce the law in accordance with 

8 subsection (a) and the effective dates in para9 graph (1) of this subsection; and 

10 (B) taxpayers may rely upon their reason11 able good faith interpretations of subsection (a). 

12 SEC. 203. INSURANCE-DEDICATED EXCHANGE-TRADED 

13 FUNDS. 

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

15 7 years after the date of the enactment of this Act, the 

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

17 shall amend the regulation issued by the Department of 

18 the Treasury relating to ‘‘Income Tax; Diversification Re19 quirements for Variable Annuity, Endowment, and Life 

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

21 1989), and make any necessary corresponding amend22 ments to other regulations, in order to facilitate the use 

23 of exchange-traded funds as investment options under 

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


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

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

3 (b) DESIGNATE CERTAIN AUTHORIZED PARTICI4 PANTS AND MARKET MAKERS AS ELIGIBLE INVESTORS.— 

5 The Secretary of the Treasury (or the Secretary’s dele6 gate) shall amend Treas. Reg. section 1.817–5(f)(3) to 

7 provide that satisfaction of the requirements in Treas. 

8 Reg. section 1.817–5(f)(2)(i) with respect to an exchange9 traded fund shall not be prevented by reason of beneficial 

10 interests in such a fund being held by 1 or more author11 ized participants or market makers. 

12 (c) DEFINE RELEVANT TERMS.—In amending Treas. 

13 Reg. section 1.817–5(f)(3) in accordance with subsections 

14 (b) of this section, the Secretary of the Treasury (or the 

15 Secretary’s delegate) shall provide definitions consistent 

16 with the following: 

17 (1) EXCHANGE-TRADED FUND.—The term ‘‘ex18 change-traded fund’’ means a regulated investment 

19 company, partnership, or trust— 

20 (A) that is registered with the Securities 

21 and Exchange Commission as an open-end in22 vestment company or a unit investment trust; 

23 (B) the shares of which can be purchased 

24 or redeemed directly from the fund only by an 

25 authorized participant; and 


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1 (C) the shares of which are traded 

2 throughout the day on a national stock ex3 change at market prices that may or may not 

4 be the same as the net asset value of the 

5 shares. 

6 (2) AUTHORIZED PARTICIPANT.—The term 

7 ‘‘authorized participant’’ means a financial institu8 tion that is a member or participant of a clearing 

9 agency registered under section 17A(b) of the Secu10 rities Exchange Act of 1934 that enters into a con11 tractual relationship with an exchange-traded fund 

12 pursuant to which the financial institution is per13 mitted to purchase and redeem shares directly from 

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

15 only if the contractual arrangement or applicable law 

16 precludes the financial institution from— 

17 (A) purchasing the shares for its own in18 vestment purposes rather than for the exclusive 

19 purpose of creating and redeeming such shares 

20 on behalf of third parties; and 

21 (B) selling the shares to third parties who 

22 are not market makers or otherwise described 

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

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

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1 istered broker or dealer under section 15(b) of the 

2 Securities Exchange Act of 1934 that maintains li3 quidity for an exchange-traded fund on a national 

4 stock exchange by being always ready to buy and sell 

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

6 financial institution is contractually or legally pre7 cluded from selling or buying such shares to or from 

8 persons who are not authorized participants or oth9 erwise described in Treas. Reg. section 1.817–5(f) 

10 (2) and (3). 

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

12 apply to segregated asset account investments made on 

13 or after the date that is 7 years after the date of the enact14 ment of this Act. 

15 TITLE III—SIMPLIFICATION AND 

16 CLARIFICATION OF RETIRE17 MENT PLAN RULES 

18 SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAY19 MENTS. 

20 (a) OVERPAYMENTS UNDER INTERNAL REVENUE

21 CODE OF 1986.— 

22 (1) QUALIFICATION REQUIREMENTS.—Section 

23 414 of the Internal Revenue Code of 1986, as 

24 amended by the preceding provisions of this Act, is 


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1 further amended by adding at the end the following 

2 new subsection: 

3 ‘‘(bb) SPECIAL RULES APPLICABLE TO BENEFIT

4 OVERPAYMENTS.— 

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

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

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

8 treated as satisfying the requirements of section 

9 401(a) or 403) merely because— 

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

11 any participant, beneficiary, employer, plan 

12 sponsor, fiduciary, or other party on account of 

13 any inadvertent benefit overpayment made by 

14 the plan, or 

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

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

18 adjust for prior inadvertent benefit overpay19 ments. 

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

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

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


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1 ‘‘(A) reduces future benefit payments to 

2 the correct amount provided for under the 

3 terms of the plan, or 

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

5 persons responsible for such overpayment. 

6 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

7 Nothing in this subsection shall relieve an employer 

8 of any obligation imposed on it to make contribu9 tions to a plan to meet the minimum funding stand10 ards under sections 412 and 430 or to prevent or re11 store an impermissible forfeiture in accordance with 

12 section 411. 

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

14 Notwithstanding paragraph (1), a plan to which 

15 paragraph (1) applies shall observe any limitations 

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

17 plan may enforce such limitations using any method 

18 approved by the Secretary for recouping benefits 

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

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

23 regulations or other guidance of general applicability 

24 specifying how benefit overpayments and their 

25 recoupment or non-recoupment from a participant or 


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1 beneficiary shall be taken into account for purposes 

2 of satisfying any requirement applicable to a plan to 

3 which paragraph (1) applies.’’. 

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

5 is amended by adding at the end the following new 

6 paragraph: 

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

8 overpayment from a plan to which section 

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

10 retirement plan by or on behalf of a participant or 

11 beneficiary— 

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

13 respect to which recoupment is not sought on 

14 behalf of the plan shall be treated as having 

15 been paid in an eligible rollover distribution if 

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

18 and 

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

20 respect to which recoupment is sought on behalf 

21 of the plan shall be permitted to be returned to 

22 such plan and in such case shall be treated as 

23 an eligible rollover distribution transferred to 

24 such plan by the participant or beneficiary who 

25 received such overpayment (and the plans makVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 ing and receiving such transfer shall be treated 

2 as permitting such transfer). 

3 In any case in which recoupment is sought on behalf 

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

6 shall be subject to the claims and appeals procedures 

7 of the plan that made such overpayment, such plan 

8 shall notify the plan receiving the rollover of such 

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

11 or beneficiary (and shall be entitled to treat such 

12 overpayment as plan assets) pending the outcome of 

13 such procedures.’’. 

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

15 the Employee Retirement Income Security Act of 1974 

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

17 following new subsection: 

18 ‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT

19 OVERPAYMENTS.— 

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

22 responsible plan fiduciary shall not be considered to 

23 have failed to comply with the requirements of this 

24 title merely because such fiduciary determines, in 


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1 the exercise of its fiduciary discretion, not to seek 

2 recovery of all or part of such overpayment from— 

3 ‘‘(A) any participant or beneficiary, 

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

5 employer to— 

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

8 restore any impermissible forfeiture from 

9 any participant’s or beneficiary’s account 

10 arising in connection with the overpayment 

11 is, separately from and independently of 

12 the overpayment, allocated to such account 

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

15 the plan’s forfeiture account, additional 

16 employer contributions, or recoveries from 

17 those responsible for the overpayment), or 

18 ‘‘(ii) a defined benefit pension plan 

19 subject to the funding rules in part 3 of 

20 this subtitle B, unless the responsible plan 

21 fiduciary determines, in the exercise of its 

22 fiduciary discretion, that failure to recover 

23 all or part of the overpayment faster than 

24 required under such funding rules would 

25 materially affect the plan’s ability to pay 


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1 benefits due to other participants and 

2 beneficiaries, or 

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

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

6 whose breach of its fiduciary duties resulted in 

7 such overpayment, provided that if the plan has 

8 established prudent procedures to prevent and 

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

12 not give rise to a breach of fiduciary duty. 

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

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

16 respect to any inadvertent benefit overpayment 

17 merely because, after discovering such overpayment, 

18 the responsible plan fiduciary— 

19 ‘‘(A) reduces future benefit payments to 

20 the correct amount provided for under the 

21 terms of the plan, or 

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

23 persons responsible for the overpayment. 

24 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

25 Nothing in this subsection shall relieve an employer 


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

4 or restore an impermissible forfeiture in accordance 

5 with section 203. 

6 ‘‘(4) RECOUPMENT FROM PARTICIPANTS AND

7 BENEFICIARIES.—If the responsible plan fiduciary, 

8 in the exercise of its fiduciary discretion, decides to 

9 seek recoupment from a participant or beneficiary of 

10 all or part of an inadvertent benefit overpayment 

11 made by the plan to such participant or beneficiary, 

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

13 ‘‘(A) No interest or other additional 

14 amounts (such as collection costs or fees) are 

15 sought on overpaid amounts. 

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

18 by reducing future benefit payments— 

19 ‘‘(i) the reduction ceases after the 

20 plan has recovered the full dollar amount 

21 of the overpayment, 

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

24 the full dollar amount of the overpayment, 

25 and 


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1 ‘‘(iii) future benefit payments are not 

2 reduced to below 90 percent of the periodic 

3 amount otherwise payable under the terms 

4 of the plan. 

5 Alternatively, if the plan seeks to recoup past 

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

8 the sum of such installment payments in any 

9 calendar year does not exceed the sum of the 

10 reductions that would be permitted in such year 

11 under the preceding sentence. 

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

17 ‘‘(D) Efforts to recoup overpayments are 

18 not made through a collection agency or similar 

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

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

24 ‘‘(E) Recoupment of past overpayments to 

25 a participant is not sought from any beneficiary 


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1 of the participant, including a spouse, surviving 

2 spouse, former spouse, or other beneficiary. 

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

4 first overpayment occurred more than 3 years 

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

7 ‘‘(G) A participant or beneficiary from 

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

10 the plan’s claims and appeals procedures. 

11 ‘‘(H) In determining the amount of 

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

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

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

18 apply to protect a participant or beneficiary who is 

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

21 responsibility for the overpayment (such as through 

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

24 reason to know under the circumstances, that the 

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

3 because the individual believed the benefit payment 

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

6 with an authorized plan representative and was told 

7 the payment or payments were not in excess of the 

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

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

13 of Civil Procedure if the litigation were brought in 

14 Federal court.’’. 

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

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

17 of this Act. 

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

20 are entitled to rely on— 

21 (1) a good faith interpretation of then existing 

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

25 and 


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

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

6 In the case of a benefit overpayment that occurred prior 

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

9 reduction in periodic benefit payments to the participant 

10 or beneficiary, which were made in recoupment of such 

11 overpayment and which commenced prior to such date, 

12 may continue after such date. Nothing in this subsection 

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

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

17 PLANS. 

18 (a) IN GENERAL.—Section 4974(a) of the Internal 

19 Revenue Code of 1986 is amended by striking ‘‘50 per20 cent’’ and inserting ‘‘25 percent’’. 

21 (b) REDUCTION IN EXCISE TAX ON FAILURES TO

22 TAKE REQUIRED MINIMUM DISTRIBUTIONS.—Section 

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

24 following new subsection: 

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


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

2 who— 

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

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

9 this subsection), 

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

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

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

13 this subsection, the term ‘correction window’ means 

14 the period of time beginning on the date on which 

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

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

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

20 with respect to the shortfall of distributions, or 

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

22 year that begins after the end of the taxable 

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

24 imposed.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2021. 

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

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

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

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

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

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

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

14 of different broad-based securities market indices if— 

15 (1) the blend is reasonably representative of the 

16 asset class holdings of the designated investment al17 ternative; 

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

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

21 modified at least once per year to reflect changes in 

22 the asset class holdings of the designated investment 

23 alternative; 


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1 (3) the blend is furnished to participants and 

2 beneficiaries in a manner that is reasonably designed 

3 to be understandable and helpful; and 

4 (4) each securities market index which is used 

5 for an associated asset class would separately satisfy 

6 the requirements of such regulations for such asset 

7 class. 

8 (b) STUDY.—Not later than December 31, 2022, the 

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

11 Education and Labor of the House of Representatives and 

12 the Committees on Finance and Health, Education, 

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

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

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

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

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

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


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1 (1) title I of the Employee Retirement Income 

2 Security Act of 1974 applicable to pension plans (as 

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

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

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

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

10 the Secretary of the Treasury, and the Pension Benefit 

11 Guaranty Corporation, jointly, and after consultation with 

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

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

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

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

18 improve such requirements so as to simplify reporting for 

19 such plans and ensure that plans can simply furnish and 

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

22 plan for retirement, and obtain the benefits they have 

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

25 plan documents that are needed to ensure accurate calVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 culation of future benefits. To assess the effectiveness of 

2 the applicable reporting and disclosure requirements, the 

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

4 how participants and beneficiaries are providing preferred 

5 contact information, the methods by which plan sponsors 

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

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

10 data collection to obtain any needed information. 

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

14 (a) AMENDMENT OF INTERNAL REVENUE CODE OF

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

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

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

18 subsection: 

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

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

22 provision of this title, with respect to any defined 

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

24 document (other than the notices and documents de25 scribed in subparagraphs (A) and (B)) shall be reVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 quired to be furnished under this title to any 

2 unenrolled participant if the unenrolled participant 

3 receives— 

4 ‘‘(A) an annual reminder notice (in paper 

5 format, or in any electronic format consented to 

6 by the participant) of such participant’s eligi7 bility to participate in such plan and any appli8 cable election deadlines under the plan, and 

9 ‘‘(B) any document requested by such par10 ticipant which the participant would be entitled 

11 to receive without regard to this subsection. 

12 ‘‘(2) UNENROLLED PARTICIPANT.—For pur13 poses of this subsection, the term ‘unenrolled partici14 pant’ means an employee who— 

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

16 contribution plan, 

17 ‘‘(B) has received all required notices, dis18 closures, and other plan documents required to 

19 be furnished under this title and the summary 

20 plan description as provided in section 104(b) 

21 of the Employee Retirement Income Security 

22 Act of 1974 in connection with such partici23 pant’s initial eligibility to participate in such 

24 plan, 

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


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

2 For purposes of this subsection, any eligibility to 

3 participate in the plan following any period for 

4 which such employee was not eligible to participate 

5 shall be treated as initial eligibility. 

6 ‘‘(3) ANNUAL REMINDER NOTICE.—For pur7 poses of this subsection, the term ‘annual reminder 

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

9 of the Employee Retirement Income Security Act of 

10 1974.’’. 

11 (b) AMENDMENT OF EMPLOYEE RETIREMENT IN12 COME SECURITY ACT OF 1974.— 

13 (1) IN GENERAL.—Part 1 of subtitle B of sub14 chapter I of the Employee Retirement Income Secu15 rity Act of 1974 is amended by redesignating section 

16 111 as section 112 and by inserting after section 

17 110 the following new section: 

18 ‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE19 MENTS RELATED TO UNENROLLED PARTICI20 PANTS. 

21 ‘‘(a) IN GENERAL.—Notwithstanding any other pro22 vision of this title, with respect to any individual account 

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

24 than the notices and documents described in paragraphs 

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


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1 title to any unenrolled participant if the unenrolled partici2 pant receives— 

3 ‘‘(1) an annual reminder notice of such partici4 pant’s eligibility to participate in such plan and any 

5 applicable election deadlines under the plan; and 

6 ‘‘(2) any document requested by such partici7 pant which the participant would be entitled to re8 ceive without regard to this section. 

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

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

11 employee who— 

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

13 account plan; 

14 ‘‘(2) has received all required notices, disclo15 sures, and other plan documents, including the sum16 mary plan description, required to be furnished 

17 under this title in connection with such participant’s 

18 initial eligibility to participate in such plan; 

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

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

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 under the plan and 

15 the key rights and features under the plan af16 fecting such benefits; 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 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to plan years beginning after De3 cember 31, 2021. 

4 SEC. 306. RETIREMENT SAVINGS LOST AND FOUND. 

5 (a) RETIREMENT SAVINGS LOST AND FOUND.— 

6 (1) ESTABLISHMENT.— 

7 (A) IN GENERAL.—Not later than 3 years 

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

9 Secretary of Labor, the Secretary of the Treas10 ury, and the Secretary of Commerce, in co11 operation, shall establish an online searchable 

12 database (to be managed by the Pension Ben13 efit Guaranty Corporation in accordance with 

14 section 4051 of the Employee Retirement In15 come Security Act of 1974) to be known as the 

16 ‘‘Retirement Savings Lost and Found’’. The 

17 Retirement Savings Lost and Found shall— 

18 (i) allow an individual to search for 

19 information that enables the individual to 

20 locate the plan administrator of any plans 

21 with respect to which the individual is or 

22 was a participant or beneficiary, and to 

23 provide contact information for the plan 


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1 administrator of any plan described in sub2 paragraph (B); 

3 (ii) allow the corporation to assist 

4 such an individual in locating any plan of 

5 the individual; and 

6 (iii) allow the corporation to make any 

7 necessary changes to contact information 

8 on record for the plan administrator based 

9 on any changes to the plan due to merger 

10 or consolidation of the plan with any other 

11 plan, division of the plan into two or more 

12 plans, bankruptcy, termination, change in 

13 name of the plan, change in name or ad14 dress of the plan administrator, or other 

15 causes. 

16 The Retirement Savings Lost and Found estab17 lished under this paragraph shall include infor18 mation reported under section 4051 of the Em19 ployee Retirement Income Security Act of 1974 

20 and other relevant information obtained by the 

21 Pension Benefit Guaranty Corporation. 

22 (B) PLANS DESCRIBED.—A plan described 

23 in this subparagraph is a plan to which the 

24 vesting standards of section 203 of part 2 of 


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1 subtitle B of title I of the Employee Retirement 

2 Income Security Act of 1974 apply. 

3 (2) ADMINISTRATION.—The Retirement Sav4 ings Lost and Found established under paragraph 

5 (1) shall provide individuals described in paragraph 

6 (1)(A) only with the ability to view contact informa7 tion for the plan administrator of any plan with re8 spect to which the individual is or was a participant 

9 or beneficiary, sufficient to allow the individual to lo10 cate the individual’s plan in order to recover any 

11 benefit owing to the individual under the plan. 

12 (3) SAFEGUARDING PARTICIPANT PRIVACY AND

13 SECURITY.—In establishing the Retirement Savings 

14 Lost and Found under paragraph (1), the Pension 

15 Benefit Guaranty Corporation, in consultation with 

16 the Secretary of Labor, the Secretary of the Treas17 ury, and the Secretary of Commerce, shall take all 

18 necessary and proper precautions to ensure that in19 dividuals’ plan information maintained by the Re20 tirement Savings Lost and Found is protected and 

21 that persons other than the individual cannot fraud22 ulently claim the benefits to which any individual is 

23 entitled, and to allow any individual to opt out of in24 clusion in the Retirement Savings Lost and Found 

25 at the election of the individual. 


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1 (b) OFFICE OF THE RETIREMENT SAVINGS LOST

2 AND FOUND.— 

3 (1) IN GENERAL.—Subtitle C of title IV of the 

4 Employee Retirement Income Security Act of 1974 

5 (29 U.S.C. 1341 et seq.) is amended by adding at 

6 the end the following: 

7 ‘‘SEC. 4051. OFFICE OF THE RETIREMENT SAVINGS LOST 

8 AND FOUND. 

9 ‘‘(a) ESTABLISHMENT; RESPONSIBILITIES OF OF10 FICE.— 

11 ‘‘(1) IN GENERAL.—Not later than 2 years 

12 after the date of the enactment of this section, the 

13 Secretary of Labor, the Secretary of the Treasury, 

14 and the Secretary of Commerce shall establish with15 in the corporation an Office of the Retirement Sav16 ings Lost and Found (in this section referred to as 

17 the ‘Office’). 

18 ‘‘(2) RESPONSIBILITIES OF OFFICE.— 

19 ‘‘(A) IN GENERAL.—The Office shall— 

20 ‘‘(i) carry out subsection (b) of this 

21 section; 

22 ‘‘(ii) maintain the Retirement Savings 

23 Lost and Found established under section 

24 306(a) of the ‘Securing a Strong Retire25 ment Act of 2021’; and 


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1 ‘‘(iii) perform an annual audit of plan 

2 information contained in the Retirement 

3 Savings Lost and Found and ensure that 

4 such information is current and accurate. 

5 ‘‘(B) OPTION TO CONTRACT.— 

6 ‘‘(i) IN GENERAL.—Not later than 2 

7 years after the date of enactment of this 

8 section, the corporation shall conduct an 

9 analysis of the cost effectiveness of con10 tracting with a third party to carry out the 

11 responsibilities under subparagraph (A)(iii) 

12 and, upon a determination that such con13 tracting would be more cost effective than 

14 carrying out such responsibilities within 

15 the Office, the corporation may enter into 

16 such contracts as merited by such analysis. 

17 ‘‘(ii) REPORT.—The corporation shall 

18 report on the results of the analysis under 

19 clause (i) to the Committees on Finance 

20 and Health, Education, Labor, and Pen21 sions of the Senate and the Committees on 

22 Ways and Means and Education and 

23 Labor of the House of Representatives. 

24 ‘‘(b) CERTAIN NON-RESPONSIVE PARTICIPANTS EN25 TITLED TO SMALL BENEFITS.— 


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1 ‘‘(1) GENERAL RULE.— 

2 ‘‘(A) TRANSFER TO THE OFFICE OF THE

3 RETIREMENT SAVINGS LOST AND FOUND.—The 

4 administrator of a plan that is not terminated 

5 and to which section 401(a)(31)(B) of the In6 ternal Revenue Code of 1986 applies shall 

7 transfer to the Office the amount required to be 

8 transferred under section 401(a)(31)(B)(iv) of 

9 such Code for a non-responsive participant. 

10 ‘‘(B) INFORMATION AND PAYMENT TO THE

11 OFFICE.—Upon making a transfer under sub12 paragraph (A), the plan administrator shall 

13 provide such information and certifications as 

14 the Office shall specify, including with respect 

15 to the transferred amount and the non-respon16 sive participant. 

17 ‘‘(C) INFORMATION REQUIREMENTS AFTER

18 TRANSFER.—In the event that, after a transfer 

19 is made under subparagraph (A), the relevant 

20 non-responsive participant contacts the plan ad21 ministrator or the plan administrator discovers 

22 information that may assist the Office in locat23 ing the non-responsive participant, the plan ad24 ministrator shall notify and provide such infor25 mation as the Office shall specify to the Office. 


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1 ‘‘(D) SEARCH AND PAYMENT BY THE OF2 FICE FOLLOWING TRANSFER.—The Office shall 

3 periodically, and upon receiving information de4 scribed in subparagraph (C), conduct a search 

5 for the non-responsive participant for whom the 

6 Office has received a transfer under subpara7 graph (A). Upon location of a non-responsive 

8 participant who claims benefits, the Office shall 

9 make a single payment to the non-responsive 

10 participant in an amount equal to the sum of— 

11 ‘‘(i) the amount transferred to the Of12 fice under subparagraph (A) for such par13 ticipant; and 

14 ‘‘(ii) the return on the investment at15 tributable to such amount under section 

16 4005(j)(3). 

17 ‘‘(2) DEFINITION.—For purposes of this sub18 section, the term ‘non-responsive participant’ means 

19 a participant or beneficiary of a plan described in 

20 paragraph (1)(A)— 

21 ‘‘(A) who is entitled to a benefit subject to 

22 a mandatory transfer under section 

23 401(a)(31)(B)(iii) of the Internal Revenue Code 

24 of 1986; and 


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1 ‘‘(B) for whom the plan has satisfied the 

2 conditions in section 401(a)(31)(B)(iv) of such 

3 Code. 

4 ‘‘(3) REGULATORY AUTHORITY.—The Office 

5 shall prescribe such regulations as are necessary to 

6 carry out the purposes of this section, including 

7 rules relating to the amount payable to the Office 

8 and the amount to be paid by the Office. 

9 ‘‘(c) INFORMATION COLLECTION.—Within such pe10 riod after the end of a plan year as the Office may by 

11 regulations prescribe, the administrator of a plan to which 

12 the vesting standards of section 203 apply shall submit 

13 the following information, and such other information as 

14 the corporation may require, to the corporation in such 

15 form as the corporation may require: 

16 ‘‘(1) The information described in paragraphs 

17 (1) through (4) of section 6057(b) of the Internal 

18 Revenue Code of 1986. 

19 ‘‘(2) The information described in subpara20 graphs (A), (B), (E), and (F) of section 6057(a)(2) 

21 of the Internal Revenue Code of 1986. 

22 ‘‘(d) EFFECTIVE DATE.—The requirements of sub23 sections (b) and (c) shall apply with respect to plan years 

24 beginning after the second December 31 occurring after 

25 the date of the enactment of this section. 


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1 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as may be 

3 necessary to carry out this section.’’. 

4 (2) ESTABLISHMENT OF FUND FOR TRANS5 FERRED ASSETS.—Section 4005 of the Employee 

6 Retirement Income Security Act of 1974 (29 U.S.C. 

7 1305) is amended by adding at the end the fol8 lowing: 

9 ‘‘(j)(1) A ninth fund shall be established for the pay10 ment of benefits under section 4051(b)(1)(D). 

11 ‘‘(2) Such fund shall be credited with the appro12 priate— 

13 ‘‘(A) amounts transferred to the Office of the 

14 Retirement Savings Lost and Found under section 

15 4051(b)(1)(A); and 

16 ‘‘(B) earnings on investments of the fund or on 

17 assets credited to the fund. 

18 ‘‘(3) Whenever the corporation determines that the 

19 moneys of any fund are in excess of current needs, it may 

20 request the investment of such amounts as it determines 

21 advisable by the Secretary of the Treasury in obligations 

22 issued or guaranteed by the United States.’’. 

23 (3) CONFORMING AMENDMENT.—The table of 

24 contents for the Employee Retirement Income Secu25 rity Act of 1974 (29 U.S.C. 1001 et seq.) is amendVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 ed by inserting after the matter relating to section 

2 4050 the following: 

‘‘Sec. 4051. Certain non-responsive participants entitled to small benefits.’’. 

3 (c) MANDATORY TRANSFERS OF ROLLOVER DIS4 TRIBUTIONS.— 

5 (1) INVESTMENT OPTIONS.— 

6 (A) IN GENERAL.—Subparagraph (B) of 

7 section 404(c)(3) of the Employee Retirement 

8 Income Security Act of 1974 (29 U.S.C. 

9 1104(c)(3)) is amended by striking the period 

10 at the end and inserting ‘‘, and, to the extent 

11 the Secretary provides in guidance or regula12 tions issued after the enactment of the Securing 

13 a Strong Retirement Act of 2021, is made to— 

14 ‘‘(i) a target date or life cycle fund 

15 held under such account; 

16 ‘‘(ii) as described in section 

17 2550.404a–2 of title 29, Code of Federal 

18 Regulations, an investment product held 

19 under such account designed to preserve 

20 principal and provide a reasonable rate of 

21 return; 

22 ‘‘(iii) the Office of the Retirement 

23 Savings Lost and Found in accordance 

24 with section 401(a)(31)(B)(iv) of the In25 ternal Revenue Code of 1986 and section 


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1 306(c)(2)(A)(ii) of the Securing a Strong 

2 Retirement Act of 2020; or 

3 ‘‘(iv) such other option as the Sec4 retary may so provide.’’. 

5 (B) REGULATIONS.—Not later than 270 

6 days after the date of the enactment of this 

7 Act, the Secretary of Labor shall promulgate 

8 regulations identifying the target date or life 

9 cycle funds, or specifying the characteristics of 

10 such a fund, that will be deemed to meet the re11 quirements of section 404(c)(3)(B)(i) of the 

12 Employee Retirement Income Security Act of 

13 1974 (29 U.S.C. 1104(c)(3)(B)), as amended 

14 by subparagraph (A). 

15 (2) EXPANSION OF CAP; AUTHORITY TO TRANS16 FER LESSER AMOUNTS.— 

17 (A) CAP.—Sections 401(a)(31)(B)(ii) and 

18 411(a)(11)(A) of the Internal Revenue Code of 

19 1986 and section 203(e)(1) of the Employee 

20 Retirement Income Security Act of 1974 are 

21 each amended by striking ‘‘$5,000’’ and insert22 ing ‘‘$6,000’’. 

23 (B) DISTRIBUTION OF LARGER AMOUNTS

24 TO INDIVIDUAL RETIREMENT PLANS ONLY.— 

25 Section 401(a)(31)(B)(i) of such Code is 


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1 amended by adding at the end the following: 

2 ‘‘The Office of the Retirement Savings Lost 

3 and Found established by Section 306 of the 

4 Securing a Strong Retirement Act shall not be 

5 treated as a trustee or issuer that is eligible to 

6 receive such distributions.’’. 

7 (C) LESSER AMOUNTS.—Section 

8 401(a)(31)(B) of such Code is amended by add9 ing at the end the following new clauses: 

10 ‘‘(iii) TREATMENT OF LESSER

11 AMOUNTS.—In the case of a trust which is 

12 part of an eligible plan, such trust shall 

13 not be a qualified trust under this section 

14 unless such plan provides that, if a partici15 pant in the plan separates from the service 

16 covered by the plan and the nonforfeitable 

17 accrued benefit described in clause (ii) is 

18 not in excess of $1,000, the plan adminis19 trator shall (either separately or as part of 

20 the notice under section 402(f)) notify the 

21 participant that the participant is entitled 

22 to such benefit or attempt to pay the ben23 efit directly to the participant. 

24 ‘‘(iv) TRANSFERS TO RETIREMENT

25 SAVINGS LOST AND FOUND.—If, after a 


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1 plan administrator takes the action re2 quired under clause (iii), the participant 

3 does not— 

4 ‘‘(I) within 6 months of the noti5 fication under such clause, make an 

6 election under subparagraph (A) or 

7 elect to receive a distribution of the 

8 benefit directly, or 

9 ‘‘(II) accept any direct payment 

10 made under such clause within 6 

11 months of the attempted payment, 

12 the plan administrator shall transfer the 

13 amount of such benefit to the Office of the 

14 Retirement Savings Lost and Found in ac15 cordance with section 4051(b) of the Em16 ployee Retirement Income Security Act of 

17 1974. 

18 ‘‘(v) INCOME TAX TREATMENT OF

19 TRANSFERS TO RETIREMENT SAVINGS

20 LOST AND FOUND.—For purposes of deter21 mining the income tax treatment of trans22 fers to the Office of the Retirement Sav23 ings Lost and Found under clause (iv)— 


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1 ‘‘(I) such a transfer shall be 

2 treated as a transfer to an individual 

3 retirement plan under clause (i), and 

4 ‘‘(II) the distribution of such 

5 amounts by the Office of the Retire6 ment Savings Lost and Found shall 

7 be treated as a distribution from an 

8 individual retirement plan.’’. 

9 (D) EFFECTIVE DATE.—The amendments 

10 made by this paragraph shall apply to vested 

11 benefits with respect to participants who sepa12 rate from service connected to the plan in plan 

13 years beginning after the second December 31 

14 occurring after the date of the enactment of 

15 this Act. 

16 (d) BETTER REPORTING FOR MANDATORY TRANS17 FERS.— 

18 (1) IN GENERAL.—Paragraph (2) of section 

19 6057(a) of the Internal Revenue Code of 1986 is 

20 amended— 

21 (A) in subparagraph (C)— 

22 (i) by striking ‘‘during such plan 

23 year’’ in clause (i) and inserting ‘‘during 

24 the plan year immediately preceding such 

25 plan year’’; 


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1 (ii) by adding ‘‘and’’ at the end of 

2 clause (i); and 

3 (iii) by striking clause (iii); 

4 (B) by redesignating subparagraph (E) as 

5 subparagraph (G); 

6 (C) by striking ‘‘and’’ at the end of sub7 paragraph (D); and 

8 (D) by inserting after subparagraph (D) 

9 the following new subparagraphs: 

10 ‘‘(E) the name and taxpayer identifying 

11 number of each participant or former partici12 pant in the plan— 

13 ‘‘(i) who, during the current plan year 

14 or any previous plan year, was reported 

15 under subparagraph (C), and with respect 

16 to whom the benefits described in subpara17 graph (C)(ii) were fully paid during the 

18 plan year, 

19 ‘‘(ii) with respect to whom any 

20 amount was distributed under section 

21 401(a)(31)(B) during the plan year, or 

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

23 annuity contract was distributed during 

24 the plan year, 


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

2 participant to whom subparagraph (E) ap3 plies— 

4 ‘‘(i) in the case of a participant de5 scribed in clause (ii) thereof, the name and 

6 address of the designated trustee or issuer 

7 described in section 401(a)(31)(B)(i) and 

8 the account number of the individual re9 tirement plan to which the amount was 

10 distributed, and 

11 ‘‘(ii) in the case of a participant de12 scribed in clause (iii) thereof, the name 

13 and address of the issuer of such annuity 

14 contract and the contract or certificate 

15 number, and’’. 

16 (2) RULES RELATING TO DIRECT TRUSTEE-TO17 TRUSTEE TRANSFERS.— 

18 (A) IN GENERAL.—Paragraph (6) of sec19 tion 402(e) of such Code is amended— 

20 (i) by striking ‘‘TRANSFERS.—Any’’ 

21 and inserting ‘‘TRANSFERS.— 

22 ‘‘(A) IN GENERAL.—Any’’; and 

23 (ii) by adding at the end the following 

24 new subparagraph: 


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1 ‘‘(B) NOTIFICATION OF TRUSTEE.—In the 

2 case of a distribution under section 

3 401(a)(31)(B), the plan administrator shall no4 tify the designated trustee or issuer described 

5 in clause (i) thereof that the transfer is a man6 datory distribution required by such section.’’. 

7 (B) PENALTY.—Subsection (i) of section 

8 6652 of such Code is amended— 

9 (i) by striking ‘‘TO RECIPIENTS’’ in 

10 the heading and inserting ‘‘OR NOTIFICA11 TION’’; 

12 (ii) by striking ‘‘402(f),’’ and insert13 ing ‘‘402(f) or a notification as required by 

14 section 402(e)(6)(B),’’; and 

15 (iii) by striking ‘‘such written expla16 nation’’ and inserting ‘‘such written expla17 nation or notification’’. 

18 (C) REPORTS.—Subsection (i) of section 

19 408 of such Code is amended— 

20 (i) by redesignating subparagraphs 

21 (A) and (B) of paragraph (2) as clauses (i) 

22 and (ii), respectively, and by moving such 

23 clauses 2 ems to the right; 

24 (ii) by redesignating paragraphs (1) 

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1 spectively, and by moving such subpara2 graphs 2 ems to the right; and 

3 (iii) by striking ‘‘as the Secretary pre4 scribes’’ in subparagraph (B)(ii), as so re5 designated, and all that follows through ‘‘a 

6 simple retirement account’’ and inserting 

7 ‘‘as the Secretary prescribes. 

8 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 

9 case of a simple retirement account’’; 

10 (iv) by striking ‘‘REPORTS.—The 

11 trustee of’’ and inserting ‘‘REPORTS.— 

12 ‘‘(1) IN GENERAL.—The trustee of’’; 

13 (v) by striking ‘‘under paragraph (2)’’ 

14 in paragraph (3), as redesignated by clause 

15 (iii), and inserting ‘‘under paragraph 

16 (1)(B)’’; and 

17 (vi) by inserting after paragraph 

18 (1)(B)(ii), as redesignated by the pre19 ceding clauses, the following new para20 graph: 

21 ‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 

22 of an account, contract, or annuity to which a trans23 fer under section 401(a)(31)(B) is made (including 

24 a transfer from the individual retirement plan to 

25 which the original transfer under such section was 


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1 made to another individual retirement plan), the re2 port required by this subsection for the year of the 

3 transfer and any year in which the information pre4 viously reported in subparagraph (B) changes 

5 shall— 

6 ‘‘(A) identify such transfer as a mandatory 

7 distribution required by such section, 

8 ‘‘(B) include the name, address, and tax9 payer identifying number of the trustee or 

10 issuer of the individual retirement plan to which 

11 the amount is transferred, and 

12 ‘‘(C) be filed with the Pension Benefit 

13 Guaranty Corporation as well as with the Sec14 retary.’’. 

15 (3) NOTIFICATION OF PARTICIPANTS UPON SEP16 ARATION.—Subsection (e) of section 6057 of such 

17 Code is amended by inserting ‘‘, and, with respect 

18 to any benefit of the individual subject to section 

19 401(a)(31)(B), a notice of availability of, and the 

20 contact information for, the Retirement Savings 

21 Lost and Found established under section 306(a)(1) 

22 of the Securing a Strong Retirement Act of 2021’’ 

23 before the period at the end of the second sentence. 

24 (4) EFFECTIVE DATE.—The amendments made 

25 by this paragraph shall apply to distributions made 


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1 in, and returns and reports relating to, years begin2 ning after the second December 31 occurring after 

3 the date of the enactment of this Act. 

4 (e) REQUIREMENT OF ELECTRONIC FILING.— 

5 (1) IN GENERAL.—Paragraph (2) of section 

6 6011(e) of the Internal Revenue Code of 1986 is 

7 amended— 

8 (A) by redesignating subparagraphs (A) 

9 and (B) as clauses (i) and (ii), respectively, and 

10 by moving such clauses 2 ems to the right; 

11 (B) by striking ‘‘REGULATIONS.—In pre12 scribing’’ and inserting ‘‘REGULATIONS.— 

13 ‘‘(A) IN GENERAL.—In prescribing’’; and 

14 (C) by adding at the end the following new 

15 subparagraph: 

16 ‘‘(C) EXCEPTIONS.—Notwithstanding sub17 paragraph (A), the Secretary shall require re18 turns or reports required under— 

19 ‘‘(i) sections 6057, 6058, and 6059, 

20 and 

21 ‘‘(ii) sections 408(i), 6041, and 6047 

22 to the extent such return or report relates 

23 to the tax treatment of a distribution from 

24 a plan, account, contract, or annuity, 


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1 to be filed on magnetic media, but only with re2 spect to persons who are required to file at 

3 least 50 returns during the calendar year which 

4 includes the first day of the plan year to which 

5 such returns or reports relate.’’. 

6 (2) EFFECTIVE DATE.—The amendments made 

7 by this paragraph shall apply to returns and reports 

8 relating to years beginning after the second Decem9 ber 31 occurring after the date of the enactment of 

10 this Act. 

11 (f) RULEMAKING TO CLARIFY FIDUCIARY DUTIES.— 

12 (1) REQUEST FOR INFORMATION.—Not later 

13 than 1 year after the date of enactment of this Act, 

14 the Secretary of Labor, in consultation with the Sec15 retary of the Treasury, shall issue a request for in16 formation relating to the rulemaking described in 

17 paragraph (2). 

18 (2) ISSUANCE OF FINAL RULE.—Not later than 

19 3 years after such date, the Secretary of Labor, in 

20 consultation with the Secretary of the Treasury, 

21 shall issue a final rule that defines the following: 

22 (A) The steps a plan sponsor must take to 

23 locate a deferred vested participant in order to 

24 meet its fiduciary duty under section 404 of the 


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1 Employee Retirement Income Security Act of 

2 1974 with respect to locating that participant. 

3 (B) The ongoing practices and procedures 

4 a plan sponsor must institute in order to meet 

5 such fiduciary duty with respect to maintaining 

6 up-to-date contact information on deferred vest7 ed participants. 

8 SEC. 307. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 

9 RESOLUTION SYSTEM. 

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

11 the Internal Revenue Code of 1986 or regulations pre12 scribed by the Secretary of the Treasury or the Secretary’s 

13 delegate (referred to in this section as the ‘‘Secretary’’), 

14 any eligible inadvertent failure to comply with the rules 

15 applicable under section 401(a), 403(a), 403(b), 408(p), 

16 or 408(k) of such Code may be self-corrected under the 

17 Employee Plans Compliance Resolution System (as de18 scribed in Revenue Procedure 2019–19 or any successor 

19 guidance and hereafter in this section referred to as the 

20 ‘‘EPCRS’’), except to the extent that such failure was 

21 identified by the Secretary prior to any actions which dem22 onstrate a commitment to implement a self-correction. 

23 Revenue Procedure 2019–19 is deemed amended as of the 

24 date of the enactment of this Act to provide that the cor25 rection period under section 9.02 of such Revenue ProceVerDate Sep 11 2014 23:39 May 04, 2021 Jkt 019200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\H2954.IH H2954

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1 dure (or any successor guidance) for an eligible inad2 vertent failure, except as otherwise provided under such 

3 Code or in regulations prescribed by the Secretary, is in4 definite and has no last day, other than with respect to 

5 failures identified by the Secretary prior to any self-correc6 tion as described in the preceding sentence. 

7 (b) LOAN ERRORS.—In the case of an eligible inad8 vertent failure relating to a loan from a plan to a partici9 pant— 

10 (1) such failure may be self-corrected under 

11 subsection (a) according to the rules of section 6.07 

12 of Revenue Procedure 2019–19 (or any successor 

13 guidance), including the provisions related to wheth14 er a deemed distribution must be reported on Form 

15 1099–R, and 

16 (2) the Secretary of Labor shall treat any such 

17 failure which is so self-corrected under subsection 

18 (a) as meeting the requirements of the Voluntary Fi19 duciary Correction Program of the Department of 

20 Labor if, with respect to the violation of the fidu21 ciary standards of the Employee Retirement Income 

22 Security Act of 1974, there is a similar loan error 

23 eligible for correction under EPCRS and the loan 

24 error is corrected in such manner. 


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1 (c) EPCRS FOR IRAS.—The Secretary shall expand 

2 the EPCRS to allow custodians of individual retirement 

3 plans (as defined in section 7701(a)(37) of the Internal 

4 Revenue Code of 1986) to address eligible inadvertent fail5 ures with respect to an individual retirement plan (as so 

6 defined), including (but not limited to)— 

7 (1) waivers of the excise tax which would other8 wise apply under section 4974 of the Internal Rev9 enue Code of 1986, 

10 (2) under the self-correction component of the 

11 EPCRS, waivers of the 60-day deadline for a roll12 over where the deadline is missed for reasons beyond 

13 the reasonable control of the account owner, and 

14 (3) rules permitting a nonspouse beneficiary to 

15 return distributions to an inherited individual retire16 ment plan described in section 408(d)(3)(C) of the 

17 Internal Revenue Code of 1986 in a case where, due 

18 to an inadvertent error by a service provider, the 

19 beneficiary had reason to believe that the distribu20 tion could be rolled over without inclusion in income 

21 of any part of the distributed amount. 

22 (d) ADDITIONAL SAFE HARBORS.—The Secretary 

23 shall expand the EPCRS to provide additional safe harbor 

24 means of correcting eligible inadvertent failures described 

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1 lating the earnings which must be restored to a plan in 

2 cases where plan assets have been depleted by reason of 

3 an eligible inadvertent failure. 

4 (e) ELIGIBLE INADVERTENT FAILURE.—For pur5 poses of this section— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the term ‘‘eligible inadvertent failure’’ 

8 means a failure that occurs despite the existence of 

9 practices and procedures which— 

10 (A) satisfy the standards set forth in sec11 tion 4.04 of Revenue Procedure 2019–19 (or 

12 any successor guidance), or 

13 (B) satisfy similar standards in the case of 

14 an individual retirement plan. 

15 (2) EXCEPTION.—The term ‘‘eligible inad16 vertent failure’’ shall not include any failure which 

17 is egregious, relates to the diversion or misuse of 

18 plan assets, or is directly or indirectly related to an 

19 abusive tax avoidance transaction. 

20 (f) APPLICATION OF CERTAIN REQUIREMENTS FOR

21 CORRECTING ERRORS.—This section shall not apply to 

22 any failure unless the correction of such failure under this 

23 section is made in conformity with the general principles 

24 that apply to corrections of such failures under the Inter25 nal Revenue Code of 1986, including regulations or other 


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1 guidance issued thereunder and including those principles 

2 and corrections set forth in Revenue Procedure 2019–19 

3 (or any successor guidance).’’ 

4 SEC. 308. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE5 QUIREMENT FOR GOVERNMENTAL SECTION 

6 457(B) PLANS. 

7 (a) IN GENERAL.—Paragraph (4) of section 457(b) 

8 of the Internal Revenue Code of 1986 is amended to read 

9 as follows: 

10 ‘‘(4) which provides that compensation— 

11 ‘‘(A) in the case of an eligible employer de12 scribed in subsection (e)(1)(A), will be deferred 

13 only if an agreement providing for such deferral 

14 has been entered into before the compensation 

15 is currently available to the individual, and 

16 ‘‘(B) in any other case, will be deferred for 

17 any calendar month only if an agreement pro18 viding for such deferral has been entered into 

19 before the beginning of such month,’’. 

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

21 this section shall apply to taxable years beginning after 

22 the date of the enactment of this Act. 


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1 SEC. 309. ONE-TIME ELECTION FOR QUALIFIED CHARI2 TABLE DISTRIBUTION TO SPLIT-INTEREST 

3 ENTITY; INCREASE IN QUALIFIED CHARI4 TABLE DISTRIBUTION LIMITATION. 

5 (a) ONE-TIME ELECTION FOR QUALIFIED CHARI6 TABLE DISTRIBUTION TO SPLIT-INTEREST ENTITY.— 

7 Section 408(d)(8) of such Code is amended by adding at 

8 the end the following new subparagraph: 

9 ‘‘(F) ONE-TIME ELECTION FOR QUALIFIED

10 CHARITABLE DISTRIBUTION TO SPLIT-INTEREST

11 ENTITY.— 

12 ‘‘(i) IN GENERAL.—A taxpayer may 

13 for a taxable year elect under this subpara14 graph to treat as meeting the requirement 

15 of subparagraph (B)(i) any distribution 

16 from an individual retirement account 

17 which is made directly by the trustee to a 

18 split-interest entity, but only if— 

19 ‘‘(I) an election is not in effect 

20 under this subparagraph for a pre21 ceding taxable year, 

22 ‘‘(II) the aggregate amount of 

23 distributions of the taxpayer with re24 spect to which an election under this 

25 subparagraph is made does not exceed 

26 $50,000, and 


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1 ‘‘(III) such distribution meets the 

2 requirements of clauses (iii) and (iv). 

3 ‘‘(ii) SPLIT-INTEREST ENTITY.—For 

4 purposes of this subparagraph, the term 

5 ‘split-interest entity’ means— 

6 ‘‘(I) a charitable remainder annu7 ity trust (as defined in section 

8 664(d)(1)), but only if such trust is 

9 funded exclusively by qualified chari10 table distributions, 

11 ‘‘(II) a charitable remainder 

12 unitrust (as defined in section 

13 664(d)(2)), but only if such unitrust 

14 is funded exclusively by qualified char15 itable distributions, or 

16 ‘‘(III) a charitable gift annuity 

17 (as defined in section 501(m)(5)), but 

18 only if such annuity is funded exclu19 sively by qualified charitable distribu20 tions and commences fixed payments 

21 of 5 percent or greater not later than 

22 1 year from the date of funding. 

23 ‘‘(iii) CONTRIBUTIONS MUST BE OTH24 ERWISE DEDUCTIBLE.—A distribution 


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1 meets the requirement of this clause only 

2 if— 

3 ‘‘(I) in the case of a distribution 

4 to a charitable remainder annuity 

5 trust or a charitable remainder uni6 trust, a deduction for the entire value 

7 of the remainder interest in the dis8 tribution for the benefit of a specified 

9 charitable organization would be al10 lowable under section 170 (determined 

11 without regard to subsection (b) 

12 thereof and this paragraph), and 

13 ‘‘(II) in the case of a charitable 

14 gift annuity, a deduction in an 

15 amount equal to the amount of the 

16 distribution reduced by the value of 

17 the annuity described in section 

18 501(m)(5)(B) would be allowable 

19 under section 170 (determined with20 out regard to subsection (b) thereof 

21 and this paragraph). 

22 ‘‘(iv) LIMITATION ON INCOME INTER23 ESTS.—A distribution meets the require24 ments of this clause only if— 


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1 ‘‘(I) no person holds an income 

2 interest in the split-interest entity 

3 other than the individual for whose 

4 benefit such account is maintained, 

5 the spouse of such individual, or both, 

6 and 

7 ‘‘(II) the income interest in the 

8 split-interest entity is nonassignable. 

9 ‘‘(v) SPECIAL RULES.— 

10 ‘‘(I) CHARITABLE REMAINDER

11 TRUSTS.—Notwithstanding section 

12 664(b), distributions made from a 

13 trust described in subclause (I) or (II) 

14 of clause (ii) shall be treated as ordi15 nary income in the hands of the bene16 ficiary to whom the annuity described 

17 in section 664(d)(1)(A) or the pay18 ment described in section 

19 664(d)(2)(A) is paid. 

20 ‘‘(II) CHARITABLE GIFT ANNU21 ITIES.—Qualified charitable distribu22 tions made to fund a charitable gift 

23 annuity shall not be treated as an in24 vestment in the contract for purposes 

25 of section 72(c).’’. 


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1 (b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 

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

3 adding at the end the following new subparagraph: 

4 ‘‘(G) INFLATION ADJUSTMENT.— 

5 ‘‘(i) IN GENERAL.—In the case of any 

6 taxable year beginning after 2021, each of 

7 the dollar amounts in subparagraphs (A) 

8 and (F) shall be increased by an amount 

9 equal to— 

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

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

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

18 (A)(ii) thereof. 

19 ‘‘(ii) ROUNDING.—If any dollar 

20 amount increased under clause (i) is not a 

21 multiple of $1,000, such dollar amount 

22 shall be rounded to the nearest multiple of 

23 $1,000.’’. 


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

2 this section shall apply to distributions made in taxable 

3 years ending after the date of the enactment of this Act. 

4 SEC. 310. DISTRIBUTIONS TO FIREFIGHTERS. 

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

6 72(t)(10) of the Internal Revenue Code of 1986 is amend7 ed by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a dis8 tribution from a plan described in clause (iii), (iv), or (vi) 

9 of section 402(c)(8)(B) to an employee who provides fire10 fighting services’’. 

11 (b) CONFORMING AMENDMENT.—The heading of 

12 paragraph (10) of section 72(t) of such Code is amend13 ed— 

14 (1) by striking ‘‘QUALIFIED’’, and 

15 (2) by striking ‘‘IN GOVERNMENTAL PLANS’’. 

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

17 this section shall apply to distributions made after Decem18 ber 31, 2021. 

19 SEC. 311. EXCLUSION OF CERTAIN DISABILITY-RELATED 

20 FIRST RESPONDER RETIREMENT PAYMENTS. 

21 (a) IN GENERAL.—Part III of subchapter B of chap22 ter 1 of the Internal Revenue Code of 1986 is amended 

23 by inserting after section 139B the following new section: 


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1 ‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE2 SPONDER RETIREMENT PAYMENTS. 

3 ‘‘(a) IN GENERAL.—In the case of an individual who 

4 receives qualified first responder retirement payments for 

5 any taxable year, gross income shall not include so much 

6 of such payments as do not exceed the annualized exclud7 able disability amount with respect to such individual. 

8 ‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT

9 PAYMENTS.—For purposes of this section, the term ‘quali10 fied first responder retirement payments’ means, with re11 spect to any taxable year, any pension or annuity which 

12 but for this section would be includible in gross income 

13 for such taxable year and which is received— 

14 ‘‘(1) from a plan described in clause (iii), (iv), 

15 (v), or (vi) of section 402(c)(8)(B), and 

16 ‘‘(2) in connection with such individual’s quali17 fied first responder service. 

18 ‘‘(c) ANNUALIZED EXCLUDABLE DISABILITY

19 AMOUNT.—For purposes of this section— 

20 ‘‘(1) IN GENERAL.—The term ‘annualized ex21 cludable disability amount’ means, with respect to 

22 any individual, the service-connected excludable dis23 ability amounts which are properly attributable to 

24 the 12-month period immediately preceding the date 

25 on which such individual attains retirement age. 


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1 ‘‘(2) SERVICE-CONNECTED EXCLUDABLE DIS2 ABILITY AMOUNT.—The term ‘service-connected ex3 cludable disability amount’ means periodic payments 

4 received by an individual which— 

5 ‘‘(A) are not includible in such individual’s 

6 gross income under section 104(a)(1), 

7 ‘‘(B) are received in connection with such 

8 individual’s qualified first responder service, 

9 and 

10 ‘‘(C) terminate when such individual at11 tains retirement age. 

12 ‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY13 MENTS.—In the case of an individual who only re14 ceives service-connected excludable disability 

15 amounts properly attributable to a portion of the 12- 

16 month period described in paragraph (1), such para17 graph shall be applied by multiplying such amounts 

18 by the ratio of 365 to the number of days in such 

19 period to which such amounts were properly attrib20 utable. 

21 ‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 

22 purposes of this section, the term ‘qualified first responder 

23 service’ means service as a law enforcement officer, fire24 fighter, paramedic, or emergency medical technician.’’. 


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

2 for part III of subchapter B of chapter 1 of such Code 

3 is amended by inserting after the item relating to section 

4 139B the following new item: 

‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 

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

6 this section shall apply to amounts received with respect 

7 to taxable years beginning after December 31, 2026. 

8 SEC. 312. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM9 ITATIONS FOR EXCISE TAX ON EXCESS CON10 TRIBUTIONS AND CERTAIN ACCUMULATIONS. 

11 Section 6501(l) of the Internal Revenue Code of 1986 

12 is amended by adding at the end the following new para13 graph: 

14 ‘‘(4) INDIVIDUAL RETIREMENT PLANS.— 

15 ‘‘(A) IN GENERAL.—For purposes of any 

16 tax imposed by section 4973 or 4974 in connec17 tion with an individual retirement plan, the re18 turn referred to in this section shall be the in19 come tax return filed by the person on whom 

20 the tax under such section is imposed for the 

21 year in which the act (or failure to act) giving 

22 rise to the liability for such tax occurred. 

23 ‘‘(B) RULE IN CASE OF INDIVIDUALS NOT

24 REQUIRED TO FILE RETURN.—In the case of a 


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1 person who is not required to file an income tax 

2 return for such year— 

3 ‘‘(i) the return referred to in this sec4 tion shall be the income tax return that 

5 such person would have been required to 

6 file but for the fact that such person was 

7 not required to file such return, and 

8 ‘‘(ii) the 3-year period referred to in 

9 subsection (a) with respect to the return 

10 shall be deemed to begin on the date by 

11 which the return would have been required 

12 to be filed (excluding any extension there13 of).’’. 

14 SEC. 313. REQUIREMENT TO PROVIDE PAPER STATEMENTS 

15 IN CERTAIN CASES. 

16 (a) IN GENERAL.—Section 105(a)(2) of the Em17 ployee Retirement Income Security Act of 1974 (29 

18 U.S.C. 1025(a)(2)) is amended— 

19 (1) in subparagraph (A)(iv), by inserting ‘‘sub20 ject to subparagraph (E),’’ before ‘‘may be deliv21 ered’’; and 

22 (2) by adding at the end the following: 

23 ‘‘(E) PROVISION OF PAPER STATE24 MENTS.—With respect to at least 1 pension 

25 benefit statement furnished for a calendar year 


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1 with respect to an individual account plan 

2 under paragraph (1)(A), and with respect to at 

3 least 1 pension benefit statement furnished 

4 every 3 calendar years with respect to a defined 

5 benefit plan under paragraph (1)(B), such 

6 statement shall be furnished on paper in writ7 ten form except— 

8 ‘‘(i) in the case of a plan that fur9 nishes such statement in accordance with 

10 section 2520.104b–1(c) of title 29, Code of 

11 Federal Regulations; or 

12 ‘‘(ii) in the case of a plan that permits 

13 a participant or beneficiary to request that 

14 the statements referred to in the matter 

15 preceding clause (i) be furnished by elec16 tronic delivery, if the participant or bene17 ficiary requests that such statements be 

18 delivered electronically and the statements 

19 are so delivered.’’. 

20 (b) IMPLEMENTATION.— 

21 (1) IN GENERAL.—The Secretary of Labor 

22 shall, not later than December 31, 2021, update sec23 tion 2520.104b–1(c) of title 29, Code of Federal 

24 Regulations, to provide that a plan may furnish the 

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1 tion 105(a)(2) by electronic delivery only if, in addi2 tion to meeting the other requirements under the 

3 regulations— 

4 (A) such plan furnishes each participant or 

5 beneficiary, including participants described in 

6 subparagraph (B), a one-time initial notice on 

7 paper in written form, prior to the electronic 

8 delivery of any pension benefit statement, of 

9 their right to request that all documents re10 quired to be disclosed under title I of the Em11 ployee Retirement Income Security Act of 1974 

12 be furnished on paper in written form; and 

13 (B) such plan furnishes each participant 

14 who is separated from service with at least 1 

15 pension benefit statement on paper in written 

16 form for each calendar year, unless, on election 

17 of the participant, the participant receives such 

18 statements electronically. 

19 (2) OTHER GUIDANCE.—In implementing the 

20 amendment made by subsection (a) with respect to 

21 a plan that discloses required documents or state22 ments electronically, in accordance with applicable 

23 guidance governing electronic disclosure by the De24 partment of Labor (with the exception of section 

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1 tions), the Secretary of Labor shall, not later than 

2 December 31, 2021, update such guidance to the ex3 tent necessary to ensure that— 

4 (A) a participant or beneficiary under such 

5 a plan is permitted the opportunity to request 

6 that any disclosure required to be delivered on 

7 paper under applicable guidance by the Depart8 ment of Labor shall be furnished by electronic 

9 delivery; 

10 (B) each paper statement furnished under 

11 such a plan pursuant to the amendment shall 

12 include— 

13 (i) an explanation of how to request 

14 that all such statements, and any other 

15 document required to be disclosed under 

16 title I of the Employee Retirement Income 

17 Security Act of 1974, be furnished by elec18 tronic delivery; and 

19 (ii) contact information for the plan 

20 sponsor, including a telephone number; 

21 (C) the plan may not charge any fee to a 

22 participant or beneficiary for the delivery of any 

23 paper statements; 

24 (D) each paper pension benefit statement 

25 shall identify each plan document required to be 


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1 disclosed and shall include information about 

2 how a participant or beneficiary may access 

3 each such document; 

4 (E) each document required to be disclosed 

5 that is furnished by electronic delivery under 

6 such a plan shall include an explanation of how 

7 to request that all such documents be furnished 

8 on paper in written form; and 

9 (F) a plan is permitted to furnish a dupli10 cate electronic statement in any case in which 

11 the plan furnishes a paper pension benefit 

12 statement. 

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

14 subsection (a) shall apply with respect to plan years begin15 ning after December 31, 2022. 

16 SEC. 314. SEPARATE APPLICATION OF TOP HEAVY RULES 

17 TO DEFINED CONTRIBUTION PLANS COV18 ERING EXCLUDIBLE EMPLOYEES. 

19 (a) IN GENERAL.—Section 416(c)(2) of the Internal 

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

21 the following: 

22 ‘‘(C) SEPARATE APPLICATION TO EMPLOY23 EES NOT MEETING AGE AND SERVICE REQUIRE24 MENTS.—If employees not meeting the age or 

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1 out regard to subparagraph (B) thereof) are 

2 covered under a plan of the employer which 

3 meets the requirements of subparagraphs (A) 

4 and (B) separately with respect to such employ5 ees, such employees may be excluded from con6 sideration in determining whether any plan of 

7 the employer meets the requirements of sub8 paragraphs (A) and (B).’’. 

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

10 subsection (a) shall apply to plan years beginning after 

11 the date of the enactment of this Act. 

12 SEC. 315. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 

13 DISTRIBUTION LIMITED TO 3 YEARS. 

14 (a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the 

15 Internal Revenue Code of 1986 is amended by striking 

16 ‘‘may make’’ and inserting ‘‘may, at any time during the 

17 3-year period beginning on the day after the date on which 

18 such distribution was received, make’’. 

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

20 this section shall take effect as if included in the enact21 ment of section 113 of the Setting Every Community Up 

22 for Retirement Enhancement Act of 2019. 


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1 SEC. 316. EMPLOYER MAY RELY ON EMPLOYEE CERTI2 FYING THAT DEEMED HARDSHIP DISTRIBU3 TION CONDITIONS ARE MET. 

4 (a) CASH OR DEFERRED ARRANGEMENTS.—Section 

5 401(k)(14) of the Internal Revenue Code of 1986 is 

6 amended by adding at the end the following new subpara7 graph: 

8 ‘‘(C) EMPLOYEE CERTIFICATION.—In de9 termining whether a distribution is upon the 

10 hardship of an employee, the administrator of 

11 the plan may rely on a certification by the em12 ployee that the distribution is on account of a 

13 financial need of a type that is deemed in regu14 lations prescribed by the Secretary to be an im15 mediate and heavy financial need and that such 

16 distribution is not in excess of the amount re17 quired to satisfy such financial need.’’. 

18 (b) 403(b) PLANS.— 

19 (1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) 

20 of such Code is amended by adding at the end the 

21 following new subparagraph: 

22 ‘‘(D) EMPLOYEE CERTIFICATION.—In de23 termining whether a distribution is upon the fi24 nancial hardship of an employee, the adminis25 trator of the plan may rely on a certification by 

26 the employee that the distribution is on account 


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1 of a financial need of a type that is deemed in 

2 regulations prescribed by the Secretary to be an 

3 immediate and heavy financial need and that 

4 such distribution is not in excess of the amount 

5 required to satisfy such financial need.’’. 

6 (2) ANNUITY CONTRACTS.—Section 403(b)(11) 

7 is amended by adding at the end the following: ‘‘In 

8 determining whether a distribution is upon hardship 

9 of an employee, the administrator of the plan may 

10 rely on a certification by the employee that the dis11 tribution is on account of a financial need of a type 

12 that is deemed in regulations prescribed by the Sec13 retary to be an immediate and heavy financial need 

14 and that such distribution is not in excess of the 

15 amount required to satisfy such financial need.’’. 

16 (c) 457(b) PLAN.—Section 457(d) of such Code is 

17 amended by adding at the end the following new para18 graph: 

19 ‘‘(4) PARTICIPANT CERTIFICATION.—In deter20 mining whether a distribution of a participant is 

21 made when the participant is faced with an unfore22 seeable emergency, the administrator of a plan 

23 maintained by an eligible employer described in sub24 section (e)(1)(A) may rely on a certification by the 

25 participant that the distribution is made when the 


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1 participant is faced with unforeseeable emergency of 

2 a type that is specifically described in regulations 

3 prescribed by the Secretary as an unforeseeable 

4 emergency and that the distribution is not in excess 

5 of the amount reasonably necessary to satisfy the 

6 emergency need.’’. 

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

8 this section shall apply to plan years beginning after De9 cember 31, 2021. 

10 SEC. 317. PENALTY-FREE WITHDRAWALS FROM RETIRE11 MENT PLANS FOR INDIVIDUALS IN CASE OF 

12 DOMESTIC ABUSE. 

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

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

15 the following new subparagraph: 

16 ‘‘(I) DISTRIBUTIONS FROM RETIREMENT

17 PLAN IN CASE OF DOMESTIC ABUSE.— 

18 ‘‘(i) IN GENERAL.—Any eligible dis19 tribution to a domestic abuse victim. 

20 ‘‘(ii) LIMITATION.—The aggregate 

21 amount which may be treated as an eligi22 ble distribution to a domestic abuse victim 

23 by any individual shall not exceed an 

24 amount equal to the lesser of— 

25 ‘‘(I) $10,000, or 


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1 ‘‘(II) 50 percent of the present 

2 value of the nonforfeitable accrued 

3 benefit of the employee under the 

4 plan. 

5 ‘‘(iii) ELIGIBLE DISTRIBUTION TO A

6 DOMESTIC ABUSE VICTIM.—For purposes 

7 of this subparagraph— 

8 ‘‘(I) IN GENERAL.—A distribu9 tion shall be treated as an eligible dis10 tribution to a domestic abuse victim if 

11 such distribution is from an applicable 

12 eligible retirement plan to an indi13 vidual and made during the 1-year pe14 riod beginning on any date on which 

15 the individual is a victim of domestic 

16 abuse by a spouse or domestic part17 ner. 

18 ‘‘(II) DOMESTIC ABUSE.—The 

19 term ‘domestic abuse’ means physical, 

20 psychological, sexual, emotional, or 

21 economic abuse, including efforts to 

22 control, isolate, humiliate, or intimi23 date the victim, or to undermine the 

24 victim’s ability to reason independ25 ently, including by means of abuse of 


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1 the victim’s child or another family 

2 member living in the household. 

3 ‘‘(iv) TREATMENT OF PLAN DISTRIBU4 TIONS.— 

5 ‘‘(I) IN GENERAL.—If a distribu6 tion to an individual would (without 

7 regard to clause (ii)) be an eligible 

8 distribution to a domestic abuse vic9 tim, a plan shall not be treated as 

10 failing to meet any requirement of 

11 this title merely because the plan 

12 treats the distribution as an eligible 

13 distribution to a domestic abuse vic14 tim, unless the aggregate amount of 

15 such distributions from all plans 

16 maintained by the employer (and any 

17 member of any controlled group which 

18 includes the employer) to such indi19 vidual exceeds the limitation under 

20 clause (ii). 

21 ‘‘(II) CONTROLLED GROUP.—For 

22 purposes of subclause (I), the term 

23 ‘controlled group’ means any group 

24 treated as a single employer under 


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1 subsection (b), (c), (m), or (o) of sec2 tion 414. 

3 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

4 REPAID.— 

5 ‘‘(I) IN GENERAL.—Any indi6 vidual who receives a distribution de7 scribed in clause (i) may, at any time 

8 during the 3-year period beginning on 

9 the day after the date on which such 

10 distribution was received, make one or 

11 more contributions in an aggregate 

12 amount not to exceed the amount of 

13 such distribution to an applicable eli14 gible retirement plan of which such 

15 individual is a beneficiary and to 

16 which a rollover contribution of such 

17 distribution could be made under sec18 tion 402(c), 403(a)(4), 403(b)(8), 

19 408(d)(3), or 457(e)(16), as the case 

20 may be. 

21 ‘‘(II) LIMITATION ON CONTRIBU22 TIONS TO APPLICABLE ELIGIBLE RE23 TIREMENT PLANS OTHER THAN

24 IRAs.—The aggregate amount of con25 tributions made by an individual 


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1 under subclause (I) to any applicable 

2 eligible retirement plan which is not 

3 an individual retirement plan shall not 

4 exceed the aggregate amount of eligi5 ble distributions to a domestic abuse 

6 victim which are made from such plan 

7 to such individual. Subclause (I) shall 

8 not apply to contributions to any ap9 plicable eligible retirement plan which 

10 is not an individual retirement plan 

11 unless the individual is eligible to 

12 make contributions (other than those 

13 described in subclause (I)) to such ap14 plicable eligible retirement plan. 

15 ‘‘(III) TREATMENT OF REPAY16 MENTS OF DISTRIBUTIONS FROM AP17 PLICABLE ELIGIBLE RETIREMENT

18 PLANS OTHER THAN IRAS.—If a con19 tribution is made under subclause (I) 

20 with respect to an eligible distribution 

21 to a domestic abuse victim from an 

22 applicable eligible retirement plan 

23 other than an individual retirement 

24 plan, then the taxpayer shall, to the 

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1 tion, be treated as having received 

2 such distribution in an eligible rollover 

3 distribution (as defined in section 

4 402(c)(4)) and as having transferred 

5 the amount to the applicable eligible 

6 retirement plan in a direct trustee to 

7 trustee transfer within 60 days of the 

8 distribution. 

9 ‘‘(IV) TREATMENT OF REPAY10 MENTS FOR DISTRIBUTIONS FROM

11 IRAS.—If a contribution is made 

12 under subclause (I) with respect to an 

13 eligible distribution to a domestic 

14 abuse victim from an individual retire15 ment plan, then, to the extent of the 

16 amount of the contribution, such dis17 tribution shall be treated as a dis18 tribution described in section 

19 408(d)(3) and as having been trans20 ferred to the applicable eligible retire21 ment plan in a direct trustee to trust22 ee transfer within 60 days of the dis23 tribution. 


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1 ‘‘(vi) DEFINITION AND SPECIAL

2 RULES.—For purposes of this subpara3 graph: 

4 ‘‘(I) APPLICABLE ELIGIBLE RE5 TIREMENT PLAN.—The term ‘applica6 ble eligible retirement plan’ means an 

7 eligible retirement plan (as defined in 

8 section 402(c)(8)(B)) other than a de9 fined benefit plan. 

10 ‘‘(II) EXEMPTION OF DISTRIBU11 TIONS FROM TRUSTEE TO TRUSTEE

12 TRANSFER AND WITHHOLDING

13 RULES.—For purposes of sections 

14 401(a)(31), 402(f), and 3405, an eli15 gible distribution to a domestic abuse 

16 victim shall not be treated as an eligi17 ble rollover distribution. 

18 ‘‘(III) DISTRIBUTIONS TREATED

19 AS MEETING PLAN DISTRIBUTION RE20 QUIREMENTS; SELF-CERTIFICATION.— 

21 Any distribution which the employee 

22 or participant certifies as being an eli23 gible distribution to a domestic abuse 

24 victim shall be treated as meeting the 

25 requirements of sections 


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1 401(k)(2)(B)(i), 403(b)(7)(A)(i), 

2 403(b)(11), and 457(d)(1)(A).’’. 

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

4 this section shall apply to distributions made after the 

5 date of the enactment of this Act. 

6 SEC. 318. REFORM OF FAMILY ATTRIBUTION RULE. 

7 (a) IN GENERAL.—Section 414 of the Internal Rev8 enue Code of 1986 is amended— 

9 (1) in subsection (b)— 

10 (A) by striking ‘‘For purposes of’’ and in11 serting the following: 

12 ‘‘(1) IN GENERAL.—For purposes of’’, and 

13 (B) by adding at the end the following new 

14 paragraphs: 

15 ‘‘(2) SPECIAL RULES FOR APPLYING FAMILY

16 ATTRIBUTION.—For purposes of applying the attri17 bution rules under section 1563 with respect to 

18 paragraph (1), the following rules apply: 

19 ‘‘(A) Community property laws shall be 

20 disregarded for purposes of determining owner21 ship. 

22 ‘‘(B) Except as provided by the Secretary, 

23 stock of an individual not attributed under sec24 tion 1563(e)(5) to such individual’s spouse shall 


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1 not be attributed to such spouse by reason of 

2 1563(e)(6)(A). 

3 ‘‘(C) Except as provided by the Secretary, 

4 in the case of stock in different corporations 

5 that is attributed to a child under section 

6 1563(e)(6)(A) from each parent, and is not at7 tributed to such parents as spouses under sec8 tion 1563(e)(5), such attribution to the child 

9 shall not by itself result in such corporations 

10 being members of the same controlled group. 

11 ‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS

12 SATISFYING THIS SECTION.—If application of para13 graph (2) causes two or more entities to be a con14 trolled group, or an affiliated service group, or to no 

15 longer be in a controlled group or an affiliated serv16 ice group, such change shall be treated as a trans17 action to which section 410(b)(6)(C) applies.’’, and 

18 (2) in subsection (m)(6)(B), by striking ‘‘apply’’ 

19 and inserting ‘‘apply, except that community prop20 erty laws shall be disregarded for purposes of deter21 mining ownership’’. 

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

23 this section shall apply to plan years beginning on or after 

24 the date of the enactment of this section. 


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1 SEC. 319. 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, 2022. 

4 SEC. 320. RETROACTIVE FIRST YEAR ELECTIVE DEFER5 RALS FOR SOLE PROPRIETORS. 

6 (a) IN GENERAL.—Section 401(b) 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 deferral (as defined in section 402(g)(3)) under 

12 a qualified cash or deferred arrangement to which the pre13 ceding sentence applies which is 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) shall be treated as having been made before the end 

17 of the plan’s first plan year.’’. 

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

19 this section shall apply to plan years beginning after the 

20 date of the enactment of this Act. 

21 SEC. 321. LIMITING CESSATION OF IRA TREATMENT TO 

22 PORTION OF ACCOUNT INVOLVED IN A PRO23 HIBITED TRANSACTION. 

24 (a) IN GENERAL.—Section 408(e)(2)(A) of the Inter25 nal Revenue Code of 1986 is amended by striking ‘‘such 


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1 account ceases to be an individual retirement account’’ 

2 and inserting the following: ‘‘the portion of such account 

3 which is used in such transaction shall be treated as dis4 tributed to the individual’’. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Section 408(e)(2)(B) of such Code is 

7 amended— 

8 (A) by striking ‘‘ALL ITS ASSETS.—In any 

9 case’’ and all that follows through ‘‘by reason 

10 of subparagraph (A)’’ and inserting the fol11 lowing: ‘‘PORTION OF ASSETS USED IN PROHIB12 ITED TRANSACTION.—In any case in which a 

13 portion of an individual retirement account is 

14 treated as distributed under subparagraph 

15 (A)’’, and 

16 (B) by striking ‘‘all the assets in the ac17 count’’ and inserting ‘‘such portion’’. 

18 (2) Section 4975(c)(3) of such Code is amended 

19 by striking ‘‘the account ceases’’ and all that follows 

20 and inserting the following: ‘‘the portion of the ac21 count used in the transaction is treated as distrib22 uted under paragraph (2)(A) or (4) of section 

23 408(e).’’. 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 TITLE IV—TECHNICAL 

5 AMENDMENTS 

6 SEC. 401. AMENDMENTS RELATING TO SETTING EVERY 

7 COMMUNITY UP FOR RETIREMENT ENHANCE8 MENT ACT OF 2019. 

9 (a) TECHNICAL AMENDMENTS.— 

10 (1) AMENDMENT RELATING TO SECTION 114.— 

11 Section 401(a)(9)(C)(iii) of the Internal Revenue 

12 Code of 1986 is amended by striking ‘‘employee to 

13 whom clause (i)(II) applies’’ and inserting ‘‘em14 ployee (other than an employee to whom clause 

15 (i)(II) does not apply by reason of clause (ii))’’. 

16 (2) AMENDMENT RELATING TO SECTION 116.— 

17 Section 4973(b) of the Internal Revenue Code of 

18 1986 is amended by adding at the end of the flush 

19 matter the following: ‘‘Such term shall not include 

20 any designated nondeductible contribution (as de21 fined in subparagraph (C) of section 408(o)(2)) 

22 which does not exceed the nondeductible limit under 

23 subparagraph (B) thereof by reason of an election 

24 under section 408(o)(5).’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this section shall take effect as if included in sec3 tion of the Setting Every Community Up for Retire4 ment Enhancement Act of 2019 to which the 

5 amendment relates. 

6 (b) CLERICAL AMENDMENT.—Section 

7 72(t)(2)(H)(vi)(IV) of the Internal Revenue Code of 1986 

8 is amended by striking ‘‘403(b)(7)(A)(ii)’’ and inserting 

9 ‘‘ 403(b)(7)(A)(i)’’. 

10 TITLE V—ADMINISTRATIVE 

11 PROVISIONS 

12 SEC. 501. PROVISIONS RELATING TO PLAN AMENDMENTS. 

13 (a) IN GENERAL.—If this section applies to any re14 tirement plan or contract amendment— 

15 (1) such retirement plan or contract shall be 

16 treated as being operated in accordance with the 

17 terms of the plan during the period described in sub18 section (b)(2)(A); and 

19 (2) except as provided by the Secretary of the 

20 Treasury (or the Secretary’s delegate), such retire21 ment plan shall not fail to meet the requirements of 

22 section 411(d)(6) of the Internal Revenue Code of 

23 1986 and section 204(g) of the Employee Retire24 ment Income Security Act of 1974 by reason of such 

25 amendment. 


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1 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

2 (1) IN GENERAL.—This section shall apply to 

3 any amendment to any retirement plan or annuity 

4 contract which is made— 

5 (A) pursuant to any amendment made by 

6 this Act or pursuant to any regulation issued by 

7 the Secretary of the Treasury or the Secretary 

8 of Labor (or a delegate of either such Sec9 retary) under this Act; and 

10 (B) on or before the last day of the first 

11 plan year beginning on or after January 1, 

12 2023, or such later date as the Secretary of the 

13 Treasury may prescribe. 

14 In the case of a governmental plan (as defined in 

15 section 414(d) of the Internal Revenue Code of 

16 1986), this paragraph shall be applied by sub17 stituting ‘‘2025’’ for ‘‘2023’’. 

18 (2) CONDITIONS.—This section shall not apply 

19 to any amendment unless— 

20 (A) during the period— 

21 (i) beginning on the date the legisla22 tive or regulatory amendment described in 

23 paragraph (1)(A) takes effect (or in the 

24 case of a plan or contract amendment not 

25 required by such legislative or regulatory 


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1 amendment, the effective date specified by 

2 the plan); and 

3 (ii) ending on the date described in 

4 paragraph (1)(B) (as modified by the sec5 ond sentence of paragraph (1)) (or, if ear6 lier, the date the plan or contract amend7 ment is adopted), 

8 the plan or contract is operated as if such plan 

9 or contract amendment were in effect; and 

10 (B) such plan or contract amendment ap11 plies retroactively for such period. 

12 (c) COORDINATION WITH OTHER PROVISIONS RE13 LATING TO PLAN AMENDMENTS.— 

14 (1) SECURE ACT.—Section 601(b)(1) of the 

15 Setting Every Community Up for Retirement En16 hancement Act of 2019 is amended— 

17 (A) by striking ‘‘January 1, 2022’’ in sub18 paragraph (B) and inserting ‘‘January 1, 

19 2023’’, and 

20 (B) by striking ‘‘substituting ‘2024’ for 

21 ‘2022’.’’ in the flush matter at the end and in22 serting ‘‘substituting ‘2025’ for ‘2023’.’’. 

23 (2) CARES ACT.— 

24 (A) SPECIAL RULES FOR USE OF RETIRE25 MENT FUNDS.—Section 2202(c)(2)(A) of the 


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1 CARES Act is amended by striking ‘‘January 

2 1, 2022’’ in clause (ii) and inserting ‘‘January 

3 1, 2023’’. 

4 (B) TEMPORARY WAIVER OF REQUIRED

5 MINIMUM DISTRIBUTIONS RULES FOR CERTAIN

6 RETIREMENT PLANS AND ACCOUNTS.—Section 

7 2203(c)(2)(B)(i) of the CARES Act is amend8 ed— 

9 (i) by striking ‘‘January 1, 2022’’ in 

10 subclause (II) and inserting ‘‘January 1, 

11 2023’’, and 

12 (ii) by striking ‘‘substituting ‘2024’ 

13 for ‘2022’.’’ in the flush matter at the end 

14 and inserting ‘‘substituting ‘2025’ for 

15 ‘2023’.’’. 

16 (C) TAXPAYER CERTAINTY AND DISASTER

17 TAX RELIEF ACT OF 2020.—Section 

18 302(d)(2)(A) of the Taxpayer Certainty and 

19 Disaster Tax Relief Act of 2020 is amended by 

20 striking ‘‘January 1, 2022’’ in clause (ii) and 

21 inserting ‘‘January 1, 2023’’. 


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1 TITLE VI—REVENUE 

2 PROVISIONS 

3 SEC. 601. SIMPLE AND SEP ROTH IRAS. 

4 (a) IN GENERAL.—Section 408A of the Internal Rev5 enue Code of 1986 is amended by striking subsection (f). 

6 (b) RULES RELATING TO SIMPLIFIED EMPLOYEE

7 PENSIONS.— 

8 (1) CONTRIBUTIONS.—Section 402(h)(1) of 

9 such Code is amended by striking ‘‘and’’ at the end 

10 of subparagraph (A), by striking the period at the 

11 end of subparagraph (B) and inserting ‘‘, and’’, and 

12 by adding at the end the following new subpara13 graph: 

14 ‘‘(C) in the case of any contributions pur15 suant to a simplified employer pension which 

16 are made to an individual retirement plan des17 ignated as a Roth IRA, such contribution shall 

18 not be excludable from gross income.’’. 

19 (2) DISTRIBUTIONS.—Section 402(h)(3) of such 

20 Code is amended by inserting ‘‘, or section 408A(d) 

21 in the case of an individual retirement plan des22 ignated as a Roth IRA’’ before the period at the 

23 end. 

24 (3) ELECTION REQUIRED.—Section 408(k) of 

25 such Code is amended by redesignating paragraphs 


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1 (7), (8), and (9) as paragraphs (8), (9), and (10), 

2 respectively, and by inserting the after paragraph 

3 (6) the following new paragraph: 

4 ‘‘(7) ROTH CONTRIBUTION ELECTION.—An in5 dividual retirement plan which is designated as a 

6 Roth IRA shall not be treated as a simplified em7 ployee pension under this subsection unless the em8 ployee elects for such plan to be so treated (at such 

9 time and in such manner as the Secretary may pro10 vide).’’. 

11 (c) RULES RELATING TO SIMPLE RETIREMENT AC12 COUNTS.— 

13 (1) ELECTION REQUIRED.—Section 408(p) of 

14 such Code is amended by adding at the end the fol15 lowing new paragraph: 

16 ‘‘(11) ROTH CONTRIBUTION ELECTION.—An in17 dividual retirement plan which is designated as a 

18 Roth IRA shall not be treated as a simple retirement 

19 account under this subsection unless the employee 

20 elects for such plan to be so treated (at such time 

21 and in such manner as the Secretary may pro22 vide).’’. 

23 (2) ROLLOVERS.—Section 408A(e) of such 

24 Code is amended by adding at the end the following 

25 new paragraph: 


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1 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 

2 case of any payment or distribution out of a simple 

3 retirement account (as defined in section 408(p)) 

4 with respect to which an election has been made 

5 under section 408(p)(11) and to which 72(t)(6) ap6 plies, the term ‘qualified rollover contribution’ shall 

7 not include any payment or distribution paid into an 

8 account other than another simple retirement ac9 count (as so defined).’’. 

10 (d) COORDINATION WITH ROTH CONTRIBUTION LIM11 ITATION.—Section 408A(c) of such Code is amended by 

12 adding at the end the following new paragraph: 

13 ‘‘(7) COORDINATION WITH LIMITATION FOR

14 SIMPLE RETIREMENT PLANS AND SEPs.—In the 

15 case of an individual on whose behalf contributions 

16 are made to a simple retirement account or a sim17 plified employee pension, the amount described in 

18 paragraph (2)(A) shall be increased by an amount 

19 equal to the contributions made on the individual’s 

20 behalf to such account or pension for the taxable 

21 year, but only to the extent such contributions— 

22 ‘‘(A) in the case of a simplified retirement 

23 account— 

24 ‘‘(i) do not exceed the sum of the dol25 lar amount in effect for the taxable year 


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1 under section 408(p)(2)(A)(ii) and the em2 ployer contribution required under sub3 paragraph (A)(iii) or (B)(i), as the case 

4 may be, of section 408(p)(2), and 

5 ‘‘(ii) do not cause the elective defer6 rals (as defined in section 402(g)(3)) on 

7 behalf of such individual to exceed the lim8 itation under section 402(g)(1) (taking 

9 into account any additional elective defer10 rals permitted under section 414(v)), or 

11 ‘‘(B) in the case of a simplified employee 

12 pension, do not exceed the limitation in effect 

13 under section 408(j).’’. 

14 (e) CONFORMING AMENDMENT.—Section 

15 408A(d)(2)(B) of such Code is amended by inserting ‘‘, 

16 or employer in the case of a simple retirement account 

17 (as defined in section 408(p)) or simplified employee pen18 sion (as defined in section 408(k)),’’ after ‘‘individual’s 

19 spouse’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2021. 


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1 SEC. 602. HARDSHIP WITHDRAWAL RULES FOR 403(b) 

2 PLANS. 

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

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

5 the following new paragraph: 

6 ‘‘(15) SPECIAL RULES RELATING TO HARDSHIP

7 WITHDRAWALS.—For purposes of paragraphs (7) 

8 and (11)— 

9 ‘‘(A) AMOUNTS WHICH MAY BE WITH10 DRAWN.—The following amounts may be dis11 tributed upon hardship of the employee: 

12 ‘‘(i) Contributions made pursuant to a 

13 salary reduction agreement (within the 

14 meaning of section 3121(a)(5)(D)). 

15 ‘‘(ii) Qualified nonelective contribu16 tions (as defined in section 401(m)(4)(C)). 

17 ‘‘(iii) Qualified matching contributions 

18 described in section 401(k)(3)(D)(ii)(I). 

19 ‘‘(iv) Earnings on any contributions 

20 described in clause (i), (ii), or (iii). 

21 ‘‘(B) NO REQUIREMENT TO TAKE AVAIL22 ABLE LOAN.—A distribution shall not be treat23 ed as failing to be made upon the hardship of 

24 an employee solely because the employee does 

25 not take any available loan under the plan.’’. 

26 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 403(b)(7)(A)(ii) is amended by 

2 striking ‘‘in the case of contributions made pursuant 

3 to a salary reduction agreement (within the meaning 

4 of section 3121(a)(5)(D))’’ and inserting ‘‘subject to 

5 the provisions of paragraph (15)’’. 

6 (2) Paragraph (11) of section 403(b) is amend7 ed— 

8 (A) by striking ‘‘in’’ in subparagraph (B) 

9 and inserting ‘‘subject to the provisions of para10 graph (15), in’’, and 

11 (B) by striking the last sentence. 

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

13 this section shall apply to plan years beginning after De14 cember 31, 2021. 

15 SEC. 603. 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)(iv), the preceding sentence shall only apply if contribu22 tions are designated Roth contributions (as defined in sec23 tion 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) is amended by in4 serting ‘‘the lesser of any designated Roth contribu5 tions made by the participant to the plan or’’ before 

6 ‘‘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, 2021. 

10 SEC. 604. 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 or elective deferral, shall be treated as 

21 a matching contribution for purposes of this chapter, 

22 except that such contribution shall not be excludable 

23 from gross 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 subsection shall apply to contributions made after the 

3 date of the enactment of this Act. 

Æ 


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