IB 

Union Calendar No. 210 

117TH CONGRESS 

2D SESSION H. R. 2954 

[Report No. 117–283, Part I] 

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 

MARCH 29, 2022 

Additional sponsors: Mr. DOGGETT, Mr. THOMPSON of California, Mr. LARSON of Connecticut, Mr. BLUMENAUER, Mr. KIND, Mr. PASCRELL, Mr. 

DANNY K. DAVIS of Illinois, Ms. SA ́NCHEZ, Mr. HIGGINS of New York, 

Ms. SEWELL, Ms. DELBENE, Ms. CHU, Ms. MOORE of Wisconsin, Mr. 

KILDEE, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. EVANS, Mr. 

SCHNEIDER, Mr. SUOZZI, Mr. PANETTA, Mrs. MURPHY of Florida, Mr. 

NUNES, Mr. BUCHANAN, Mr. SMITH of Nebraska, Mr. REED, Mr. KELLY

of Pennsylvania, Mr. SMITH of Missouri, Mr. RICE of South Carolina, 

Mr. SCHWEIKERT, Mrs. WALORSKI, Mr. LAHOOD, Mr. WENSTRUP, Mr. 

ARRINGTON, Mr. FERGUSON, Mr. ESTES, Mr. HERN, Mr. SMUCKER, 

Mrs. MILLER of West Virginia, Mrs. WAGNER, Mr. COLE, Mr. KUSTOFF, 

Mr. BEYER, Mr. GOMEZ, Mr. HORSFORD, Ms. PLASKETT, Ms. MANNING, 

Mr. PERLMUTTER, Mr. NEGUSE, Ms. ROSS, Mr. HARDER of California, 

Mr. COOPER, Ms. NEWMAN, Mr. LATURNER, Ms. KUSTER, Mrs. LESKO, 

Mr. PRICE of North Carolina, Mr. FITZGERALD, Mr. AMODEI, Mr. 

PAPPAS, Mr. SABLAN, Mr. LAWSON of Florida, Mr. O’HALLERAN, Mr. 

RUPPERSBERGER, Mrs. LURIA, Mr. MANN, Mr. CASE, Mrs. HINSON, Mr. 

MEUSER, Mr. VALADAO, Mr. EMMER, Mr. YOUNG, Mr. KELLER, Mrs. 

TRAHAN, Mr. RESCHENTHALER, Mrs. AXNE, Mr. SEAN PATRICK MALONEY of New York, Mr. MFUME, Mr. OWENS, Mr. ROGERS of Alabama, 


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Mr. MOORE of Utah, Mr. ROSE, Ms. HERRERA BEUTLER, Mr. 

FEENSTRA, Mr. CHABOT, Mr. ELLZEY, Ms. SALAZAR, Mr. 

KRISHNAMOORTHI, Mr. LANGEVIN, Mr. DAVID SCOTT of Georgia, Mr. 

CICILLINE, Ms. SCHRIER, Mr. CARL, Mr. MURPHY of North Carolina, 

Ms. CLARK of Massachusetts, Mr. MOORE of Alabama, Ms. TITUS, Mr. 

LUCAS, Ms. VAN DUYNE, Ms. CRAIG, Ms. ADAMS, Mr. COURTNEY, Mr. 

HILL, and Ms. WILLIAMS of Georgia 

MARCH 29, 2022 

Reported from the Committee on Ways and Means with an amendment 

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

MARCH 29, 2022 

Committees on Financial Services and Education and Labor discharged; committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on May 4, 2021] 

A BILL 

To increase retirement savings, simplify and clarify 

retirement plan rules, and for other purposes. 


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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 ‘‘Se5 curing 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. 

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, parttime 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. 


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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. 

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. 


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1 TITLE I—EXPANDING COVERAGE 

2 AND INCREASING RETIRE3 MENT SAVINGS 

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

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

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

8 amended by inserting after section 414 the following new 

9 section: 

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

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

13 this section— 

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

15 qualified cash or deferred arrangement described in 

16 section 401(k) unless such arrangement meets the 

17 automatic enrollment requirements of subsection (b), 

18 and 

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

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

21 reduction agreement shall not be treated as described 

22 in such section unless such agreement meets the auto23 matic enrollment requirements of subsection (b). 

24 ‘‘(b) AUTOMATIC ENROLLMENT REQUIREMENTS.— 


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1 ‘‘(1) IN GENERAL.—An arrangement or agree2 ment meets the requirements of this subsection if such 

3 arrangement or agreement is an eligible automatic 

4 contribution arrangement (as defined in section 

5 414(w)(3)) which meets the requirements of para6 graphs (2) through (4). 

7 ‘‘(2) ALLOWANCE OF PERMISSIBLE WITH8 DRAWALS.—An eligible automatic contribution ar9 rangement meets the requirements of this paragraph 

10 if such arrangement allows employees to make per11 missible withdrawals (as defined in section 

12 414(w)(2)). 

13 ‘‘(3) MINIMUM CONTRIBUTION PERCENTAGE.— 

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

15 contribution arrangement meets the requirements 

16 of this paragraph if— 

17 ‘‘(i) the uniform percentage of com18 pensation contributed by the participant 

19 under such arrangement during the first 

20 year of participation is not less than 3 per21 cent and not more than 10 percent (unless 

22 the participant specifically elects not to 

23 have such contributions made or to have 

24 such contributions made at a different per25 centage), and 


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

2 plan year starting after each completed 

3 year of participation under such arrange4 ment such uniform percentage is increased 

5 by 1 percentage point (to at least 10 per6 cent, but not more than 15 percent) unless 

7 the participant specifically elects not to 

8 have such contributions made or to have 

9 such contributions made at a different per10 centage. 

11 ‘‘(B) INITIAL REDUCED CEILING FOR CER12 TAIN PLANS.—In the case of any arrangement to 

13 which this section applies (other than an ar14 rangement that meets the requirements of para15 graph (12) or (13) of section 401(k)), for plan 

16 years ending before January 1, 2025, subpara17 graph (A)(ii) shall be applied by substituting ‘10 

18 percent’ for ‘15 percent’. 

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

20 automatic contribution arrangement meets the re21 quirements of this paragraph if amounts contributed 

22 pursuant to such arrangement, and for which no in23 vestment is elected by the participant, are invested 

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1 5 of title 29, Code of Federal Regulations (or any suc2 cessor regulations). 

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

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

5 apply to any simple plan (within the meaning of sec6 tion 401(k)(11)). 

7 ‘‘(2) EXCEPTION FOR PLANS OR ARRANGEMENTS

8 ESTABLISHED BEFORE ENACTMENT OF SECTION.— 

9 ‘‘(A) IN GENERAL.—Subsection (a) shall not 

10 apply to— 

11 ‘‘(i) any qualified cash or deferred ar12 rangement established before the date of the 

13 enactment of this section, or 

14 ‘‘(ii) any annuity contract purchased 

15 under a plan established before the date of 

16 the enactment of this section. 

17 ‘‘(B) POST-ENACTMENT ADOPTION OF MUL18 TIPLE EMPLOYER PLAN.—Subparagraph (A) 

19 shall not apply in the case of an employer adopt20 ing after such date of enactment a plan main21 tained by more than one employer, and sub22 section (a) shall apply with respect to such em23 ployer as if such plan were a single plan. 

24 ‘‘(3) EXCEPTION FOR GOVERNMENTAL AND

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


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1 any governmental plan (within the meaning of sec2 tion 414(d)) or any church plan (within the meaning 

3 of section 414(e)). 

4 ‘‘(4) EXCEPTION FOR NEW AND SMALL BUSI5 NESSES.— 

6 ‘‘(A) NEW BUSINESS.—Subsection (a) shall 

7 not apply to any qualified cash or deferred ar8 rangement, or any annuity contract purchased 

9 under a plan, while the employer maintaining 

10 such plan (and any predecessor employer) has 

11 been in existence for less than 3 years. 

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

13 shall not apply to any qualified cash or deferred 

14 arrangement, any annuity contract purchased 

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

16 year after the close of the first taxable year with 

17 respect to which the employer maintaining the 

18 plan normally employed more than 10 employ19 ees. 

20 ‘‘(C) TREATMENT OF MULTIPLE EMPLOYER

21 PLANS.—In the case of a plan maintained by 

22 more than 1 employer, subparagraphs (A) and 

23 (B) shall be applied separately with respect to 

24 each such employer, and all such employers to 

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1 tion of this paragraph) shall be treated as main2 taining a separate plan for purposes of this sec3 tion.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections for 

5 subpart B of part I of subchapter D of chapter 1 of the 

6 Internal Revenue Code of 1986 is amended by inserting 

7 after the item relating to section 414 the following new item: 

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

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

9 section shall apply to plan years beginning after December 

10 31, 2022. 

11 SEC. 102. MODIFICATION OF CREDIT FOR SMALL EMPLOYER 

12 PENSION PLAN STARTUP COSTS. 

13 (a) INCREASE IN CREDIT PERCENTAGE FOR SMALLER

14 EMPLOYERS.—Section 45E(e) of the Internal Revenue Code 

15 of 1986 is amended by adding at the end the following new 

16 paragraph: 

17 ‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL

18 EMPLOYERS.—In the case of an employer which 

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

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

21 ‘50 employees’ for ‘100 employees’, subsection (a) shall 

22 be applied by substituting ‘100 percent’ for ‘50 per23 cent’.’’. 

24 (b) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU25 TIONS BY CERTAIN SMALL EMPLOYERS.—Section 45E of 


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

2 adding at the end the following new subsection: 

3 ‘‘(f) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU4 TIONS BY CERTAIN ELIGIBLE EMPLOYERS.— 

5 ‘‘(1) IN GENERAL.—In the case of an eligible em6 ployer, the credit allowed for the taxable year under 

7 subsection (a) (determined without regard to this sub8 section) shall be increased by an amount equal to the 

9 applicable percentage of employer contributions (other 

10 than any elective deferrals (as defined in section 

11 402(g)(3)) by the employer to an eligible employer 

12 plan (other than a defined benefit plan (as defined in 

13 section 414(j))). 

14 ‘‘(2) LIMITATIONS.— 

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

16 determined under paragraph (1) (before the ap17 plication of subparagraph (B)) with respect to 

18 any employee of the employer shall not exceed 

19 $1,000. 

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

21 eligible employer which had for the preceding 

22 taxable year more than 50 employees, the 

23 amount determined under paragraph (1) (with24 out regard to this subparagraph) shall be reduced 

25 by an amount equal to the product of— 


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1 ‘‘(i) the amount otherwise so deter2 mined under paragraph (1), multiplied by 

3 ‘‘(ii) a percentage equal to 2 percent4 age points for each employee of the employer 

5 for the preceding taxable year in excess of 

6 50 employees. 

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

8 of this section, the applicable percentage for the tax9 able year during which the eligible employer plan is 

10 established with respect to the eligible employer shall 

11 be 100 percent, and for taxable years thereafter shall 

12 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% 

13 ‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 

14 NUMBER OF EMPLOYEES.—For purposes of this sub15 section, whether an employer is an eligible employer 

16 and the number of employees of an employer shall be 

17 determined under the rules of subsection (c), except 

18 that paragraph (2) thereof shall only apply to the 

19 taxable year during which the eligible employer plan 


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1 to which this section applies is established with re2 spect to the eligible employer.’’. 

3 (c) DISALLOWANCE OF DEDUCTION.—Section 

4 45E(e)(2) of such Code is amended to read as follows: 

5 ‘‘(2) DISALLOWANCE OF DEDUCTION.—No deduc6 tion shall be allowed— 

7 ‘‘(A) for that portion of the qualified start8 up costs paid or incurred for the taxable year 

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

10 credit determined under subsection (a) as is 

11 properly allocable to such costs, and 

12 ‘‘(B) for that portion of the employer con13 tributions by the employer for the taxable year 

14 which is equal to so much of the credit increase 

15 determined under subsection (f) as is properly 

16 allocable to such contributions.’’. 

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

18 section shall apply to taxable years beginning after Decem19 ber 31, 2021. 

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

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

22 take such steps as the Secretary determines are necessary 

23 and appropriate to increase public awareness of the credit 

24 provided under section 25B of the Internal Revenue Code 

25 of 1986. 


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1 (b) REPORT TO CONGRESS.— 

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

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

4 shall provide a report to Congress to summarize the 

5 anticipated promotion efforts of the Treasury under 

6 subsection (a). 

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

8 (A) a description of plans for— 

9 (i) the development and distribution of 

10 digital and print materials, including the 

11 distribution of such materials to States for 

12 participants in State facilitated retirement 

13 savings programs, and 

14 (ii) the translation of such materials 

15 into the 10 most commonly spoken lan16 guages in the United States after English 

17 (as determined by reference to the most re18 cent American Community Survey of the 

19 Bureau of the Census), and 

20 (B) such other information as the Secretary 

21 determines is necessary 

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

23 (a) IN GENERAL.— 

24 (1) PERMITTED INVESTMENTS.—Section 

25 403(b)(7)(A) of the Internal Revenue Code of 1986 is 


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1 amended by striking ‘‘if the amounts are to be in2 vested in regulated investment company stock to be 

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

4 amounts are to be held in that custodial account and 

5 invested in regulated investment company stock or a 

6 group trust intended to satisfy the requirements of In7 ternal Revenue Service Revenue Ruling 81–100 (or 

8 any successor guidance)’’. 

9 (2) CONFORMING AMENDMENT.—The heading of 

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

11 amended by striking ‘‘FOR REGULATED INVESTMENT

12 COMPANY STOCK’’. 

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply to amounts invested 

15 after December 31, 2021. 

16 (b) AMENDMENTS TO THE INVESTMENT COMPANY ACT

17 OF 1940.—Section 3(c)(11) of the Investment Company Act 

18 of 1940 (15 U.S.C. 80a–3(c)(11)) is amended to read as 

19 follows: 

20 ‘‘(11) Any— 

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

22 profit-sharing trust which meets the require23 ments for qualification under section 401 of the 

24 Internal Revenue Code of 1986; 


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1 ‘‘(B) custodial account meeting the require2 ments of section 403(b)(7) of such Code; 

3 ‘‘(C) governmental plan described in section 

4 3(a)(2)(C) of the Securities Act of 1933; 

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

6 bank consisting solely of assets of one or more— 

7 ‘‘(i) trusts described in subparagraph 

8 (A); 

9 ‘‘(ii) government plans described in 

10 subparagraph (C); 

11 ‘‘(iii) church plans, companies, or ac12 counts that are excluded from the definition 

13 of an investment company under paragraph 

14 (14) of this subsection; or 

15 ‘‘(iv) plans which meet the require16 ments of section 403(b) of the Internal Rev17 enue Code of 1986 if— 

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

19 of the Employee Retirement Income 

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

21 et seq.); 

22 ‘‘(II) any employer making such 

23 plan available agrees to serve as a fi24 duciary for the plan with respect to the 

25 selection of the plan’s investments 


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1 among which participants can choose; 

2 or 

3 ‘‘(III) such plan is a govern4 mental plan (as defined in section 

5 414(d) of such Code); or 

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

7 are derived solely from— 

8 ‘‘(i) contributions under pension or 

9 profit-sharing plans which meet the require10 ments of section 401 of the Internal Revenue 

11 Code of 1986 or the requirements for deduc12 tion of the employer’s contribution under 

13 section 404(a)(2) of such Code; 

14 ‘‘(ii) contributions under governmental 

15 plans in connection with which interests, 

16 participations, or securities are exempted 

17 from the registration provisions of section 5 

18 of the Securities Act of 1933 by section 

19 3(a)(2)(C) of such Act; 

20 ‘‘(iii) advances made by an insurance 

21 company in connection with the operation 

22 of such separate account; and 

23 ‘‘(iv) contributions to a plan described 

24 in subparagraph (D)(iv).’’. 


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1 (c) AMENDMENTS TO THE SECURITIES ACT OF 1933.— 

2 Section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 

3 77c(a)(2)) is amended— 

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

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

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

7 the Employee Retirement Income Security Act of 

8 1974 (29 U.S.C. 1001 et seq.), (ii) any employer mak9 ing such plan available agrees to serve as a fiduciary 

10 for the plan with respect to the selection of the plan’s 

11 investments among which participants can choose, or 

12 (iii) such plan is a governmental plan (as defined in 

13 section 414(d) of such Code); or (E)’’; 

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

15 (D), or (E)’’; and 

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

17 and inserting ‘‘(iii) in the case of a plan not de18 scribed in subparagraph (D), which is a plan fund19 ed’’. 

20 (d) AMENDMENTS TO THE SECURITIES EXCHANGE

21 ACT OF 1934.—Section 3(a)(12)(C) of the Securities Ex22 change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amended— 

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

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

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


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1 the Employee Retirement Income Security Act of 

2 1974 (29 U.S.C. 1001 et seq.), (II) any employer 

3 making such plan available agrees to serve as a fidu4 ciary for the plan with respect to the selection of the 

5 plan’s investments among which participants can 

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

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

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

9 ‘‘(ii), (iii), or (iv)’’; and 

10 (3) by striking ‘‘(II) is a plan funded’’ and in11 serting ‘‘(II) in the case of a plan not described in 

12 clause (iv), is a plan funded’’. 

13 SEC. 105. INCREASE IN AGE FOR REQUIRED BEGINNING 

14 DATE FOR MANDATORY DISTRIBUTIONS. 

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

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

17 72’’ and inserting ‘‘the applicable age’’. 

18 (b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR

19 OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec20 tion 401(a)(9) of such Code are each amended by striking 

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

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

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

24 clause: 

25 ‘‘(v) APPLICABLE AGE.— 


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1 ‘‘(I) In the case of an individual 

2 who attains age 72 after December 31, 

3 2021, and age 73 before January 1, 

4 2029, the applicable age is 73. 

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

6 who attains age 73 after December 31, 

7 2028, and age 74 before January 1, 

8 2032, the applicable age is 74. 

9 ‘‘(III) In the case of an individual 

10 who attains age 74 after December 31, 

11 2031, the applicable age is 75.’’. 

12 (d) CONFORMING AMENDMENTS.—The last sentence of 

13 section 408(b) of such Code is amended by striking ‘‘age 

14 72’’ and inserting ‘‘the applicable age (determined under 

15 section 401(a)(9)(C)(v) for the calendar year in which such 

16 taxable year begins)’’. 

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

18 section shall apply to distributions required to be made 

19 after December 31, 2021, with respect to individuals who 

20 attain age 72 after such date. 

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

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

23 219(b)(5) of the Internal Revenue Code of 1986 is amended 

24 by adding at the end the following new clause: 


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1 ‘‘(iii) INDEXING OF CATCH-UP LIMITA2 TION.—In the case of any taxable year be3 ginning in a calendar year after 2022, the 

4 $1,000 amount under subparagraph (B)(ii) 

5 shall be increased by an amount equal to— 

6 ‘‘(I) such dollar amount, multi7 plied by 

8 ‘‘(II) the cost-of-living adjustment 

9 determined under section 1(f)(3) for 

10 the calendar year in which the taxable 

11 year begins, determined by substituting 

12 ‘calendar year 2021’ for ‘calendar year 

13 2016’ in subparagraph (A)(ii) thereof. 

14 If any amount after adjustment under the 

15 preceding sentence is not a multiple of 

16 $100, such amount shall be rounded to the 

17 next lower multiple of $100.’’. 

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

19 section shall apply to taxable years beginning after Decem20 ber 31, 2022. 

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

22 AND 64. 

23 (a) IN GENERAL.— 

24 (1) PLANS OTHER THAN SIMPLE PLANS.—Sec25 tion 414(v)(2)(B)(i) of the Internal Revenue Code of 


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1 1986 is amended by inserting the following before the 

2 period: ‘‘($10,000, in the case of an eligible partici3 pant who has attained age 62, but not age 65, before 

4 the close of the taxable year)’’. 

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

6 such Code is amended by inserting the following be7 fore the period: ‘‘($5,000, in the case of an eligible 

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

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

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

11 (C) of section 414(v)(2) of such Code is amended by adding 

12 at the end the following: ‘‘In the case of a year beginning 

13 after December 31, 2022, the Secretary shall adjust annu14 ally the $10,000 amount in subparagraph (B)(i) and the 

15 $5,000 amount in subparagraph (B)(ii) for increases in the 

16 cost-of-living at the same time and in the same manner as 

17 adjustments under the preceding sentence; except that the 

18 base period taken into account shall be the calendar quarter 

19 beginning July 1, 2021.’’. 

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

21 section shall apply to taxable years beginning after Decem22 ber 31, 2022. 


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

2 (a) IN GENERAL.—Section 403(b) of the Internal Rev3 enue Code of 1986 is amended by adding at the end the 

4 following new paragraph: 

5 ‘‘(15) MULTIPLE EMPLOYER PLANS.— 

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

7 church plan, this subsection shall not be treated 

8 as failing to apply to an annuity contract solely 

9 by reason of such contract being purchased under 

10 a plan maintained by more than 1 employer. 

11 ‘‘(B) TREATMENT OF EMPLOYERS FAILING

12 TO MEET REQUIREMENTS OF PLAN.— 

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

14 plan maintained by more than 1 employer, 

15 this subsection shall not be treated as fail16 ing to apply to an annuity contract held 

17 under such plan merely because of one or 

18 more employers failing to meet the require19 ments of this subsection if such plan satis20 fies rules similar to the rules of section 

21 413(e)(2) with respect to any such employer 

22 failure. 

23 ‘‘(ii) ADDITIONAL REQUIREMENTS IN

24 CASE OF NON-GOVERNMENTAL PLANS.—A 

25 plan shall not be treated as meeting the re26 quirements of this subparagraph unless the 


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1 plan meets the requirements of subpara2 graph (A) or (B) of section 413(e)(1), except 

3 in the case of a multiple employer plan 

4 maintained solely by any of the following: 

5 A State, a political subdivision of a State, 

6 or an agency or instrumentality of any one 

7 or more of the foregoing.’’. 

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

9 EMPLOYER PLAN.—Section 6057 of such Code is amended 

10 by redesignating subsection (g) as subsection (h) and by in11 serting after subsection (f) the following new subsection: 

12 ‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS TREATED AS

13 ONE PLAN.—In the case of annuity contracts to which this 

14 section applies and to which section 403(b) applies by rea15 son of the plan under which such contracts are purchased 

16 meeting the requirements of paragraph (15) thereof, such 

17 plan shall be treated as a single plan for purposes of this 

18 section.’’. 

19 (c) ANNUAL INFORMATION RETURNS FOR 403(b) MUL20 TIPLE EMPLOYER PLAN.—Section 6058 of the Internal Rev21 enue Code of 1986 is amended by redesignating subsection 

22 (f) as subsection (g) and by inserting after subsection (e) 

23 the following new subsection: 

24 ‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS TREATED AS

25 ONE PLAN.—In the case of annuity contracts to which this 


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1 section applies and to which section 403(b) applies by rea2 son of the plan under which such contracts are purchased 

3 meeting the requirements of paragraph (15) thereof, such 

4 plan shall be treated as a single plan for purposes of this 

5 section.’’. 

6 (d) AMENDMENTS TO EMPLOYEE RETIREMENT IN7 COME SECURITY ACT OF 1974.— 

8 (1) TREATED AS POOLED EMPLOYER PLAN.— 

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

10 Employee Retirement Income Security Act of 

11 1974 is amended— 

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

13 501(a) of such Code or’’ and inserting 

14 ‘‘501(a) of such Code, a plan that consists 

15 of contracts described in section 403(b) of 

16 such Code, or’’; and 

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

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

19 plan, but such term shall include any pro20 gram (other than a governmental plan) 

21 maintained for the benefit of the employees 

22 of more than 1 employer that consists of 

23 contracts described in section 403(b) of such 

24 Code and that meets the requirements of 


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1 subparagraph (A) or (B) of section 

2 413(e)(1) of such Code.’’. 

3 (B) CONFORMING AMENDMENTS.—Sections 

4 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of such Act 

5 are each amended by striking ‘‘section 401(a) of 

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

7 Code, a plan that consists of contracts described 

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

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

10 Act is amended— 

11 (A) by striking ‘‘trustees meeting the re12 quirements of section 408(a)(2) of the Internal 

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

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

15 consists of contracts described in section 403(b) 

16 of the Internal Revenue Code of 1986) meeting 

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

18 Code’’, and 

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

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

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

22 (e) REGULATIONS RELATING TO PLAN TERMI23 NATION.—The Secretary of the Treasury (or the Secretary’s 

24 designee) shall prescribe such regulations as may be nec25 essary to clarify the treatment of a plan termination by 


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1 an employer in the case of plans to which section 403(b)(15) 

2 of such Code applies. 

3 (f) MODIFICATION OF MODEL PLAN LANGUAGE. 

4 ETC.— 

5 (1) PLAN NOTIFICATIONS.—The Secretary of the 

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

7 the model plan language published under section 

8 413(e)(5) of the Internal Revenue Code of 1986 to in9 clude language which notifies participating employers 

10 described in section 501(c)(3), and which are exempt 

11 from tax under section 501(a), that the plan is subject 

12 to the Employee Retirement Income Security Act of 

13 1974 and that such employer is a plan sponsor with 

14 respect to its employees participating in the multiple 

15 employer plan and, as such, has certain fiduciary du16 ties with respect to the plan and to its employees. 

17 (2) MODEL PLANS FOR MULTIPLE EMPLOYER

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

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

20 Code of 1986 applies (other than a plan maintained 

21 for its employees by a State, a political subdivision 

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

23 one or more of the foregoing) the Secretary shall pub24 lish model plan language similar to model plan lan25 guage published under section 413(e)(5) of such Code. 


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1 (3) EDUCATIONAL OUTREACH TO EMPLOYERS EX2 EMPT FROM TAX.—The Secretary shall provide edu3 cation and outreach to increase awareness to employ4 ers described in section 501(c)(3), and which are ex5 empt from tax under section 501(a), that multiple 

6 employer plans are subject to the Employee Retire7 ment Income Security Act of 1974 and that such em8 ployer is a plan sponsor with respect to its employees 

9 participating in the multiple employer plan and, as 

10 such, has certain fiduciary duties with respect to the 

11 plan and to its employees. 

12 (g) NO INFERENCE WITH RESPECT TO CHURCH

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

14 Internal Revenue Code of 1986 to an annuity contract pur15 chased under a church plan (as defined in section 414(e) 

16 of such Code) maintained by more than 1 employer, or to 

17 any application of rules similar to section 413(e) of such 

18 Code to such a plan, no inference shall be made from section 

19 403(b)(15)(A) of such Code (as added by this Act) not ap20 plying to such plans. 

21 (h) EFFECTIVE DATE.— 

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

23 this section shall apply to plan years beginning after 

24 December 31, 2021. 


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

2 amendments made by subsection (a) shall be con3 strued as limiting the authority of the Secretary of 

4 the Treasury or the Secretary’s delegate (determined 

5 without regard to such amendment) to provide for the 

6 proper treatment of a failure to meet any requirement 

7 applicable under such Code with respect to one em8 ployer (and its employees) in the case of a plan to 

9 which section 403(b)(15) applies. 

10 SEC. 109. TREATMENT OF STUDENT LOAN PAYMENTS AS 

11 ELECTIVE DEFERRALS FOR PURPOSES OF 

12 MATCHING CONTRIBUTIONS. 

13 (a) IN GENERAL.—Section 401(m)(4)(A) of the Inter14 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

15 at the end of clause (i), by striking the period at the end 

16 of clause (ii) and inserting ‘‘, and’’, and by adding at the 

17 end the following new clause: 

18 ‘‘(iii) subject to the requirements of 

19 paragraph (13), any employer contribution 

20 made to a defined contribution plan on be21 half of an employee on account of a quali22 fied student loan payment.’’. 

23 (b) QUALIFIED STUDENT LOAN PAYMENT.—Section 

24 401(m)(4) of such Code is amended by adding at the end 

25 the following new subparagraph: 


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1 ‘‘(D) QUALIFIED STUDENT LOAN PAY2 MENT.—The term ‘qualified student loan pay3 ment’ means a payment made by an employee in 

4 repayment of a qualified education loan (as de5 fined section 221(d)(1)) incurred by the employee 

6 to pay qualified higher education expenses, but 

7 only— 

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

9 aggregate for the year do not exceed an 

10 amount equal to— 

11 ‘‘(I) the limitation applicable 

12 under section 402(g) for the year (or, if 

13 lesser, the employee’s compensation (as 

14 defined in section 415(c)(3)) for the 

15 year), reduced by 

16 ‘‘(II) the elective deferrals made 

17 by the employee for such year, and 

18 ‘‘(ii) if the employee certifies to the em19 ployer making the matching contribution 

20 under this paragraph that such payment 

21 has been made on such loan. 

22 For purposes of this subparagraph, the term 

23 ‘qualified higher education expenses’ means the 

24 cost of attendance (as defined in section 472 of 

25 the Higher Education Act of 1965, as in effect on 


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1 the day before the date of the enactment of the 

2 Taxpayer Relief Act of 1997) at an eligible edu3 cational institution (as defined in section 

4 221(d)(2)).’’. 

5 (c) MATCHING CONTRIBUTIONS FOR QUALIFIED STU6 DENT LOAN PAYMENTS.—Section 401(m) of such Code is 

7 amended by redesignating paragraph (13) as paragraph 

8 (14), and by inserting after paragraph (12) the following 

9 new paragraph: 

10 ‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI11 FIED STUDENT LOAN PAYMENTS.— 

12 ‘‘(A) IN GENERAL.—For purposes of para13 graph (4)(A)(iii), an employer contribution 

14 made to a defined contribution plan on account 

15 of a qualified student loan payment shall be 

16 treated as a matching contribution for purposes 

17 of this title if— 

18 ‘‘(i) the plan provides matching con19 tributions on account of elective deferrals at 

20 the same rate as contributions on account of 

21 qualified student loan payments, 

22 ‘‘(ii) the plan provides matching con23 tributions on account of qualified student 

24 loan payments only on behalf of employees 


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1 otherwise eligible to receive matching con2 tributions on account of elective deferrals, 

3 ‘‘(iii) under the plan, all employees eli4 gible to receive matching contributions on 

5 account of elective deferrals are eligible to 

6 receive matching contributions on account 

7 of qualified student loan payments, and 

8 ‘‘(iv) the plan provides that matching 

9 contributions on account of qualified stu10 dent loan payments vest in the same man11 ner as matching contributions on account of 

12 elective deferrals. 

13 ‘‘(B) TREATMENT FOR PURPOSES OF NON14 DISCRIMINATION RULES, ETC.— 

15 ‘‘(i) NONDISCRIMINATION RULES.—For 

16 purposes of subparagraph (A)(iii), sub17 section (a)(4), and section 410(b), matching 

18 contributions described in paragraph 

19 (4)(A)(iii) shall not fail to be treated as 

20 available to an employee solely because such 

21 employee does not have debt incurred under 

22 a qualified education loan (as defined in 

23 section 221(d)(1)). 

24 ‘‘(ii) STUDENT LOAN PAYMENTS NOT

25 TREATED AS PLAN CONTRIBUTION.—Except 


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1 as provided in clause (iii), a qualified stu2 dent loan payment shall not be treated as a 

3 contribution to a plan under this title. 

4 ‘‘(iii) MATCHING CONTRIBUTION

5 RULES.—Solely for purposes of meeting the 

6 requirements of paragraph (11)(B) or (12) 

7 of this subsection, or paragraph 

8 (11)(B)(i)(II), (12)(B), or (13)(D) of sub9 section (k), a plan may treat a qualified 

10 student loan payment as an elective deferral 

11 or an elective contribution, whichever is ap12 plicable. 

13 ‘‘(iv) ACTUAL DEFERRAL PERCENTAGE

14 TESTING.—In determining whether a plan 

15 meets the requirements of subsection 

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

17 apply the requirements of such subsection 

18 separately with respect to all employees who 

19 receive matching contributions described in 

20 paragraph (4)(A)(iii) for the plan year. 

21 ‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE

22 CERTIFICATION.—The employer may rely on an 

23 employee certification of payment under para24 graph (4)(D)(ii).’’. 


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1 (d) SIMPLE RETIREMENT ACCOUNTS.—Section 

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

3 the following new subparagraph: 

4 ‘‘(F) MATCHING CONTRIBUTIONS FOR

5 QUALIFIED STUDENT LOAN PAYMENTS.— 

6 ‘‘(i) IN GENERAL.—Subject to the rules 

7 of clause (iii), an arrangement shall not fail 

8 to be treated as meeting the requirements of 

9 subparagraph (A)(iii) solely because under 

10 the arrangement, solely for purposes of such 

11 subparagraph, qualified student loan pay12 ments are treated as amounts elected by the 

13 employee under subparagraph (A)(i)(I) to 

14 the extent such payments do not exceed— 

15 ‘‘(I) the applicable dollar amount 

16 under subparagraph (E) (after appli17 cation of section 414(v)) for the year 

18 (or, if lesser, the employee’s compensa19 tion (as defined in section 415(c)(3)) 

20 for the year), reduced by 

21 ‘‘(II) any other amounts elected 

22 by the employee under subparagraph 

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


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1 ‘‘(ii) QUALIFIED STUDENT LOAN PAY2 MENT.—For purposes of this subpara3 graph— 

4 ‘‘(I) IN GENERAL.—The term 

5 ‘qualified student loan payment’ means 

6 a payment made by an employee in re7 payment of a qualified education loan 

8 (as defined in section 221(d)(1)) in9 curred by the employee to pay quali10 fied higher education expenses, but 

11 only if the employee certifies to the em12 ployer making the matching contribu13 tion that such payment has been made 

14 on such a loan. 

15 ‘‘(II) QUALIFIED HIGHER EDU16 CATION EXPENSES.—The term ‘quali17 fied higher education expenses’ has the 

18 same meaning as when used in section 

19 401(m)(4)(D). 

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

21 shall apply to an arrangement only if, 

22 under the arrangement— 

23 ‘‘(I) matching contributions on 

24 account of qualified student loan pay25 ments are provided only on behalf of 


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1 employees otherwise eligible to elect 

2 contributions under subparagraph 

3 (A)(i)(I), and 

4 ‘‘(II) all employees otherwise eligi5 ble to participate in the arrangement 

6 are eligible to receive matching con7 tributions on account of qualified stu8 dent loan payments.’’. 

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

10 is amended by adding at the end the following: ‘‘The fact 

11 that the employer offers matching contributions on account 

12 of qualified student loan payments as described in section 

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

14 whether the arrangement satisfies the requirements of clause 

15 (ii) (and any regulation thereunder).’’. 

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

17 amended by adding at the end the following: ‘‘A plan which 

18 is established and maintained by an employer which is de19 scribed in subsection (e)(1)(A) shall not be treated as failing 

20 to meet the requirements of this subsection solely because 

21 the plan, or another plan maintained by the employer 

22 which meets the requirements of section 401(a) or 403(b), 

23 provides for matching contributions on account of qualified 

24 student loan payments as described in section 401(m)(13).’’. 


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1 (g) REGULATORY AUTHORITY.—The Secretary shall 

2 prescribe regulations for purposes of implementing the 

3 amendments made by this section, including regulations— 

4 (1) permitting a plan to make matching con5 tributions for qualified student loan payments, as de6 fined in sections 401(m)(4)(D) and 408(p)(2)(F) of 

7 the Internal Revenue Code of 1986, as added by this 

8 section, at a different frequency than matching con9 tributions are otherwise made under the plan, pro10 vided that the frequency is not less than annually; 

11 (2) permitting employers to establish reasonable 

12 procedures to claim matching contributions for such 

13 qualified student loan payments under the plan, in14 cluding an annual deadline (not earlier than 3 

15 months after the close of each plan year) by which a 

16 claim must be made; and 

17 (3) promulgating model amendments which 

18 plans may adopt to implement matching contribu19 tions on such qualified student loan payments for 

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

21 457(b) of the Internal Revenue Code of 1986. 

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

23 section shall apply to contributions made for plan years 

24 beginning after December 31, 2021. 


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1 SEC. 110. APPLICATION OF CREDIT FOR SMALL EMPLOYER 

2 PENSION PLAN STARTUP COSTS TO EMPLOY3 ERS WHICH JOIN AN EXISTING PLAN. 

4 (a) IN GENERAL.—Section 45E(d)(3)(A) of the Inter5 nal Revenue Code of 1986 is amended by striking ‘‘effective’’ 

6 and inserting ‘‘effective with respect to the eligible em7 ployer’’. 

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

9 section shall apply to eligible employer plans which become 

10 effective with respect to the eligible employer after the date 

11 of the enactment of this Act. 

12 SEC. 111. MILITARY SPOUSE RETIREMENT PLAN ELIGI13 BILITY CREDIT FOR SMALL EMPLOYERS. 

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

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

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

17 ‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGI18 BILITY CREDIT FOR SMALL EMPLOYERS. 

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

20 case of any eligible small employer, the military spouse re21 tirement plan eligibility credit determined under this sec22 tion for any taxable year is an amount equal to the sum 

23 of— 

24 ‘‘(1) $250 with respect to each military spouse 

25 who is an employee of such employer and who is eli26 gible to participate in an eligible defined contribution 


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1 plan of such employer at any time during such tax2 able year, plus 

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

4 employer to all such plans with respect to such em5 ployee during such taxable year as do not exceed 

6 $250. 

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

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

9 the taxable year which includes the date on which such indi10 vidual began participating in the eligible defined contribu11 tion plan of the employer and the 2 succeeding taxable 

12 years. 

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

14 this section— 

15 ‘‘(1) IN GENERAL.—The term ‘eligible small em16 ployer’ means an eligible employer (as defined in sec17 tion 408(p)(2)(C)(i)(I)). 

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

19 A rule similar to the rule of section 

20 408(p)(2)(C)(i)(II) shall apply for purposes of this 

21 section. 

22 ‘‘(d) MILITARY SPOUSE.—For purposes of this sec23 tion— 

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

25 means, with respect to any employer, any individual 


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1 who is married (within the meaning of section 7703 

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

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

4 the uniformed services (as defined section 101(a)(5) of 

5 title 10, United States Code). For purposes of this sec6 tion, an employer may rely on an employee’s certifi7 cation that such employee’s spouse is a member of the 

8 uniformed services if such certification provides the 

9 name, rank, and service branch of such spouse. 

10 ‘‘(2) EXCLUSION OF HIGHLY COMPENSATED EM11 PLOYEES.—With respect to any employer, the term 

12 ‘military spouse’ shall not include any individual if 

13 such individual is a highly compensated employee of 

14 such employer (within the meaning of section 414(q)). 

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

16 purposes of this section, the term ‘eligible defined contribu17 tion plan’ means, with respect to any eligible small em18 ployer, any defined contribution plan (as defined in section 

19 414(i)) of such employer if, under the terms of such plan— 

20 ‘‘(1) military spouses employed by such employer 

21 are eligible to participate in such plan not later than 

22 the date which is 2 months after the date on which 

23 such individual begins employment with such em24 ployer, 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 to 

8 receive under such plan after 2 years of service, 

9 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 sec15 tion 414 shall be treated as one employer for purposes of 

16 this section.’’. 

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

19 striking ‘‘plus’’ at the end of paragraph (32), by striking 

20 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 reVerDate Sep 11 2014 00:07 Mar 30, 2022 Jkt 029200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6203 E:\BILLS\H2954.RH H2954

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1 tirement plan eligibility credit determined under sec2 tion 45U(a).’’. 

3 (c) SPECIFIED CREDIT FOR PURPOSES OF CERTIFIED

4 PROFESSIONAL ORGANIZATIONS.—Section 3511(d)(2) of 

5 such Code is amended by redesignating subparagraphs (F), 

6 (G), and (H) as subparagraphs (G), (H), and (I), respec7 tively, and by inserting after subparagraph (E) the fol8 lowing new subparagraph: 

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

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

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

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

14 item: 

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

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

16 section shall apply to taxable years beginning after the date 

17 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 amended 

22 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 sec2 tion 403(b)(12) of such Code, as amended by the preceding 

3 provisions of this Act, is further amended by adding at the 

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

5 (ii) solely by reason of offering a de minimis financial in6 centive to employees to elect to have the employer make con7 tributions pursuant to a salary reduction agreement.’’. 

8 (c) EXEMPTION FROM PROHIBITED TRANSACTION

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

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

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

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

13 new paragraph: 

14 ‘‘(24) the provision of a de minimis financial in15 centive described in section 401(k)(4)(A) or 

16 403(b)(12)(A).’’. 

17 (d) AMENDMENT OF EMPLOYEE RETIREMENT INCOME

18 SECURITY ACT OF 1974.—Subsection (b) of section 408 of 

19 the Employee Retirement Income Security Act of 1974 (29 

20 U.S.C. 1108(b)) is amended by adding at the end the fol21 lowing new paragraph: 

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

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

24 403(b)(12)(A) of the Internal Revenue Code of 1986.’’. 


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

2 section shall apply with respect to plan years beginning 

3 after the date of enactment of this Act. 

4 SEC. 113. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 

5 ELECTIVE DEFERRAL FAILURES. 

6 (a) IN GENERAL.—Section 414 of the Internal Revenue 

7 Code of 1986 is amended by adding at the end the following 

8 new subsection: 

9 ‘‘(aa) CORRECTING AUTOMATIC CONTRIBUTION ER10 RORS.— 

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

12 shall not fail to be treated as a plan described in sec13 tions 401(a), 403(b), 408, or 457(b), as applicable, 

14 solely by reason of a corrected error. 

15 ‘‘(2) CORRECTED ERROR DEFINED.—For pur16 poses of this subsection, the term ‘corrected error’ 

17 means a reasonable administrative error in imple18 menting an automatic enrollment or automatic esca19 lation feature in accordance with the terms of an eli20 gible automatic contribution arrangement (as defined 

21 under subsection (w)(3)), provided that such imple22 mentation error— 

‘‘(A) is corrected by the date that is 91 23 ⁄2

24 months after the end of the plan year during 

25 which the failure occurred, 


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1 ‘‘(B) is corrected in a manner that is favor2 able to the participant, and 

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

4 all similarly situated participants in a non5 discriminatory manner. 

6 Such correction may occur before or after the partici7 pant has terminated employment and may occur 

8 without regard to whether the error is identified by 

9 the Secretary. 

10 ‘‘(3) REGULATIONS AND GUIDANCE FOR FAVOR11 ABLE CORRECTION METHODS.—The Secretary shall, 

12 by regulations or other guidance of general applica13 bility, specify the correction methods that are in a 

14 manner favorable to the participant for purposes of 

15 paragraph (2)(B).’’. 

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

17 section shall apply with respect to any errors with respect 

18 to which the date referred to in section 414(aa) (as added 

19 by this section) is after the date of enactment of this Act. 

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

21 REQUIREMENT FOR LONG-TERM, PART-TIME 

22 WORKERS. 

23 (a) IN GENERAL.—Section 401(k)(2)(D)(ii) of the In24 ternal Revenue Code of 1986 is amended by striking ‘‘3’’ 

25 and inserting ‘‘2’’. 


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1 (b) CLARIFICATION OF PRIOR SERVICE FOR PURPOSES

2 OF VESTING RULES.—Section 112(b) of the Setting Every 

3 Community Up for Retirement Enhancement Act of 2019 

4 is amended by striking ‘‘section 401(k)(2)(D)(ii)’’ and in5 serting ‘‘paragraphs (2)(D)(ii) and (15)(B)(iii) of section 

6 401(k)’’. 

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

8 section shall take effect as if included in the enactment of 

9 section 112 of the Setting Every Community Up for Retire10 ment Enhancement Act of 2019. 

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

12 Congress finds the following: 

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

14 the Employee Retirement Income Security Act of 

15 1974 was enacted and the employee stock ownership 

16 plan (hereafter in this section referred to as an 

17 ‘‘ESOP’’) was created, employees were first permitted 

18 to be owners of subchapter S corporations pursuant to 

19 the Small Business Job Protection Act of 1996 (Pub20 lic Law 104–188). 

21 (2) With the passage of the Taxpayer Relief Act 

22 of 1997 (Public Law 105–34), Congress designed in23 centives to encourage businesses to become ESOP24 owned S corporations. 


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1 (3) Since that time, several thousand companies 

2 have become ESOP-owned S corporations, creating an 

3 ownership interest for several million Americans in 

4 companies in every State in the country, in indus5 tries ranging from heavy manufacturing to construc6 tion and contracting to services. 

7 (4) Every United States worker who is an em8 ployee-owner of an S corporation company through 

9 an ESOP has a valuable qualified retirement savings 

10 account. 

11 (5) Recent studies have shown that employees of 

12 ESOP-owned S corporations enjoy greater job sta13 bility, wages and benefits than employees of com14 parable companies; and ESOP companies are better 

15 able to weather economic downturns. 

16 (6) Studies also show that employee-owners of S 

17 corporation ESOP companies have amassed meaning18 ful retirement savings through their ESOP accounts 

19 that will give them the means to retire with dignity. 

20 (7) It is the goal of Congress to preserve and fos21 ter employee ownership of S corporations through 

22 ESOPs. 


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1 TITLE II—PRESERVATION OF 

2 INCOME 

3 SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION 

4 BARRIERS FOR LIFE ANNUITIES. 

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

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

7 the following new subparagraph: 

8 ‘‘(J) CERTAIN INCREASES IN PAYMENTS

9 UNDER A COMMERCIAL ANNUITY.—Nothing in 

10 this section shall prohibit a commercial annuity 

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

12 is issued in connection with any eligible retire13 ment plan (within the meaning of section 

14 402(c)(8)(B), other than a defined benefit plan) 

15 from providing one or more of the following 

16 types of payments on or after the annuity start17 ing date: 

18 ‘‘(i) annuity payments that increase 

19 by a constant percentage, applied not less 

20 frequently than annually, at a rate that is 

21 less than 5 percent per year, 

22 ‘‘(ii) a lump sum payment that— 

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

24 payment period with respect to an an25 nuity or a full or partial commutation 


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1 of the future annuity payments, pro2 vided that such lump sum is deter3 mined using reasonable actuarial 

4 methods and assumptions, as deter5 mined in good faith by the issuer of the 

6 contract, or 

7 ‘‘(II) accelerates the receipt of an8 nuity payments that are scheduled to 

9 be received within the ensuing 12 

10 months, regardless of whether such ac11 celeration shortens the payment period 

12 with respect to the annuity, reduces the 

13 dollar amount of benefits to be paid 

14 under the contract, or results in a sus15 pension of annuity payments during 

16 the period being accelerated, 

17 ‘‘(iii) an amount which is in the na18 ture of a dividend or similar distribution, 

19 provided that the issuer of the contract de20 termines such amount based on a reasonable 

21 comparison of the actuarial factors assumed 

22 when calculating the initial annuity pay23 ments and the issuer’s experience with re24 spect to those factors, or 


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

2 does not exceed the excess of the total 

3 amount of the consideration paid for the 

4 annuity payments, less the aggregate 

5 amount of prior distributions or payments 

6 from or under the contract.’’. 

7 (b) REGULATIONS AND ENFORCEMENT.— 

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

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

10 of the Treasury shall amend the regulation issued by 

11 the Department of the Treasury relating to ‘‘Required 

12 Distributions from Retirement Plans,’’ 69 Fed. Reg. 

13 33288 (June 15, 2004), and make any corresponding 

14 amendments to other regulations, in order to— 

15 (A) conform such regulations to subsection 

16 (a), including by eliminating the types of pay17 ments described in subsection (a) from the scope 

18 of the requirement in Q&A–14(c) of Treasury 

19 Regulation section 1.401(a)(9)–6 that the total 

20 future expected payments must exceed the total 

21 value being annuitized; 

22 (B) amend Q&A–14(c) of Treasury Regula23 tion section 1.401(a)(9)–6 to provide that a com24 mercial annuity that provides an initial pay25 ment that is at least equal to the initial payment 


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1 that would be required from an individual ac2 count pursuant to Treasury Regulation section 

3 1.401(a)(9)–5 will be deemed to satisfy the re4 quirement in Q&A–14(c) of Treasury Regulation 

5 section 1.401(a)(9)–6 that the total future ex6 pected payments must exceed the total value 

7 being annuitized; and 

8 (C) amend Q&A–14(e)(3) of Treasury Regu9 lation section 1.401(a)(9)–6 to provide that the 

10 total future expected payments under a commer11 cial annuity are determined using the tables or 

12 other actuarial assumptions that the issuer of the 

13 contract actually uses in pricing the premiums 

14 and benefits with respect to the contract, pro15 vided that such tables or other actuarial assump16 tions are reasonable. 

17 (2) ENFORCEMENT.—As of the date of enactment 

18 of this Act, the Secretary of the Treasury shall ad19 minister and enforce the law in accordance with sub20 sections (a) and (b). 

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

22 on the date of the enactment of this Act. 

23 SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 

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

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1 retary of the Treasury or the Secretary’s delegate (hereafter 

2 in this section referred to as the ‘‘Secretary’’) shall amend 

3 the regulation issued by the Department of the Treasury 

4 relating to ‘‘Longevity Annuity Contracts’’ (79 Fed. Reg. 

5 37633 (July 2, 2014)), as follows: 

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

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

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

9 of Treasury Regulation section 1.408–8 to eliminate 

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

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

13 corresponding changes to the regulations and related 

14 forms as are necessary to reflect the elimination of 

15 this requirement. 

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

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

19 such corresponding changes to the regulations and re20 lated forms as are necessary, to provide that, in the 

21 case of a qualifying longevity annuity contract which 

22 was purchased with joint and survivor annuity bene23 fits for the individual and the individual’s spouse 

24 which were permissible under the regulations at the 

25 time the contract was originally purchased, a divorce 


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1 occurring after the original purchase and before the 

2 annuity payments commence under the contract will 

3 not affect the permissibility of the joint and survivor 

4 annuity benefits or other benefits under the contract, 

5 or require any adjustment to the amount or duration 

6 of benefits payable under the contract, provided that 

7 any qualified domestic relations order (within the 

8 meaning of section 414(p) of the Internal Revenue 

9 Code of 1986) or any divorce or separation instru10 ment (as defined in subsection (b))— 

11 (A) provides that the former spouse is enti12 tled to the survivor benefits under the contract; 

13 (B) does not modify the treatment of the 

14 former spouse as the beneficiary under the con15 tract who is entitled to the survivor benefits; or 

16 (C) does not modify the treatment of the 

17 former spouse as the measuring life for the sur18 vivor benefits under the contract. 

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

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

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

22 Q&A does not preclude a contract from including a 

23 provision under which an employee may rescind the 

24 purchase of the contract within a period not exceeding 

25 90 days from the date of purchase. 


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1 (b) DIVORCE OR SEPARATION INSTRUMENT.—For pur2 poses of subsection (a)(2), the term ‘‘divorce or separation 

3 instrument’’ means— 

4 (1) a decree of divorce or separate maintenance 

5 or a written instrument incident to such a decree, 

6 (2) a written separation agreement, or 

7 (3) a decree (not described in paragraph (1)) re8 quiring a spouse to make payments for the support or 

9 maintenance of the other spouse. 

10 (c) EFFECTIVE DATES, ENFORCEMENT, AND INTER11 PRETATIONS.— 

12 (1) EFFECTIVE DATES.— 

13 (A) Paragraph (1) of subsection (a) shall be 

14 effective with respect to contracts purchased or 

15 received in an exchange on or after the date of 

16 the enactment of this Act. 

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

18 (a) shall be effective with respect to contracts 

19 purchased or received in an exchange on or after 

20 July 2, 2014. 

21 (2) ENFORCEMENT AND INTERPRETATIONS.— 

22 Prior to the date on which the Secretary issues final 

23 regulations pursuant to subsection (a)— 

24 (A) the Secretary (or delegate) shall admin25 ister and enforce the law in accordance with subVerDate Sep 11 2014 00:07 Mar 30, 2022 Jkt 029200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6203 E:\BILLS\H2954.RH H2954

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1 section (a) and the effective dates in paragraph 

2 (1) of this subsection; and 

3 (B) taxpayers may rely upon their reason4 able good faith interpretations of subsection (a). 

5 SEC. 203. INSURANCE-DEDICATED EXCHANGE-TRADED 

6 FUNDS. 

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

8 7 years after the date of the enactment of this Act, the Sec9 retary of the Treasury (or the Secretary’s delegate) shall 

10 amend the regulation issued by the Department of the 

11 Treasury relating to ‘‘Income Tax; Diversification Require12 ments for Variable Annuity, Endowment, and Life Insur13 ance Contracts’’, 54 Fed. Reg. 8728 (March 2, 1989), and 

14 make any necessary corresponding amendments to other 

15 regulations, in order to facilitate the use of exchange-traded 

16 funds as investment options under variable contracts within 

17 the meaning of section 817(d) of the Internal Revenue Code 

18 of 1986, in accordance with subsections (b) and (c) of this 

19 section. 

20 (b) DESIGNATE CERTAIN AUTHORIZED PARTICIPANTS

21 AND MARKET MAKERS AS ELIGIBLE INVESTORS.—The Sec22 retary of the Treasury (or the Secretary’s delegate) shall 

23 amend Treas. Reg. section 1.817–5(f)(3) to provide that sat24 isfaction of the requirements in Treas. Reg. section 1.817– 

25 5(f)(2)(i) with respect to an exchange-traded fund shall not 


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1 be prevented by reason of beneficial interests in such a fund 

2 being held by 1 or more authorized participants or market 

3 makers. 

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

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

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

7 Secretary’s delegate) shall provide definitions consistent 

8 with the following: 

9 (1) EXCHANGE-TRADED FUND.—The term ‘‘ex10 change-traded fund’’ means a regulated investment 

11 company, partnership, or trust— 

12 (A) that is registered with the Securities 

13 and Exchange Commission as an open-end in14 vestment company or a unit investment trust; 

15 (B) the shares of which can be purchased or 

16 redeemed directly from the fund only by an au17 thorized participant; and 

18 (C) the shares of which are traded through19 out the day on a national stock exchange at mar20 ket prices that may or may not be the same as 

21 the net asset value of the shares. 

22 (2) AUTHORIZED PARTICIPANT.—The term ‘‘au23 thorized participant’’ means a financial institution 

24 that is a member or participant of a clearing agency 

25 registered under section 17A(b) of the Securities ExVerDate Sep 11 2014 00:07 Mar 30, 2022 Jkt 029200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6203 E:\BILLS\H2954.RH H2954

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1 change Act of 1934 that enters into a contractual re2 lationship with an exchange-traded fund pursuant to 

3 which the financial institution is permitted to pur4 chase and redeem shares directly from the fund and 

5 to sell such shares to third parties, but only if the 

6 contractual arrangement or applicable law precludes 

7 the financial institution from— 

8 (A) purchasing the shares for its own in9 vestment purposes rather than for the exclusive 

10 purpose of creating and redeeming such shares 

11 on behalf of third parties; and 

12 (B) selling the shares to third parties who 

13 are not market makers or otherwise described in 

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

15 (3) MARKET MAKER.—The term ‘‘market maker’’ 

16 means a financial institution that is a registered 

17 broker or dealer under section 15(b) of the Securities 

18 Exchange Act of 1934 that maintains liquidity for an 

19 exchange-traded fund on a national stock exchange by 

20 being always ready to buy and sell shares of such 

21 fund on the market, but only if the financial institu22 tion is contractually or legally precluded from selling 

23 or buying such shares to or from persons who are not 

24 authorized participants or otherwise described in 

25 Treas. Reg. section 1.817–5(f) (2) and (3). 


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

2 apply to segregated asset account investments made on or 

3 after the date that is 7 years after the date of the enactment 

4 of this Act. 

5 TITLE III—SIMPLIFICATION AND 

6 CLARIFICATION OF RETIRE7 MENT PLAN RULES 

8 SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAY9 MENTS. 

10 (a) OVERPAYMENTS UNDER INTERNAL REVENUE

11 CODE OF 1986.— 

12 (1) QUALIFICATION REQUIREMENTS.—Section 

13 414 of the Internal Revenue Code of 1986, as amend14 ed by the preceding provisions of this Act, is further 

15 amended by adding at the end the following new sub16 section: 

17 ‘‘(bb) SPECIAL RULES APPLICABLE TO BENEFIT

18 OVERPAYMENTS.— 

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

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

21 section 219(g)(5)(A) (and shall not fail to be treated 

22 as satisfying the requirements of section 401(a) or 

23 403) merely because— 

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

25 any participant, beneficiary, employer, plan 


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1 sponsor, fiduciary, or other party on account of 

2 any inadvertent benefit overpayment made by 

3 the plan, or 

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

5 increase past or future benefit payments to af6 fected participants and beneficiaries in order to 

7 adjust for prior inadvertent benefit overpay8 ments. 

9 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAYMENTS

10 AND RECOVERY FROM RESPONSIBLE PARTY.—Para11 graph (1) shall not fail to apply to a plan merely be12 cause, after discovering a benefit overpayment, such 

13 plan— 

14 ‘‘(A) reduces future benefit payments to the 

15 correct amount provided for under the terms of 

16 the plan, or 

17 ‘‘(B) seeks recovery from the person or per18 sons responsible for such overpayment. 

19 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.—Noth20 ing in this subsection shall relieve an employer of any 

21 obligation imposed on it to make contributions to a 

22 plan to meet the minimum funding standards under 

23 sections 412 and 430 or to prevent or restore an im24 permissible forfeiture in accordance with section 411. 


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

2 Notwithstanding paragraph (1), a plan to which 

3 paragraph (1) applies shall observe any limitations 

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

5 may enforce such limitations using any method ap6 proved by the Secretary for recouping benefits pre7 viously paid or allocations previously made in excess 

8 of such limitations. 

9 ‘‘(5) COORDINATION WITH OTHER QUALIFICATION

10 REQUIREMENTS.—The Secretary may issue regula11 tions or other guidance of general applicability speci12 fying how benefit overpayments and their recoupment 

13 or non-recoupment from a participant or beneficiary 

14 shall be taken into account for purposes of satisfying 

15 any requirement applicable to a plan to which para16 graph (1) applies.’’. 

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

18 amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(12) In the case of an inadvertent benefit over21 payment from a plan to which section 414(bb)(1) ap22 plies which is transferred to an eligible retirement 

23 plan by or on behalf of a participant or beneficiary— 

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

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1 half of the plan shall be treated as having been 

2 paid in an eligible rollover distribution if the 

3 payment would have been an eligible rollover 

4 distribution but for being an overpayment, and 

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

6 respect to which recoupment is sought on behalf 

7 of the plan shall be permitted to be returned to 

8 such plan and in such case shall be treated as 

9 an eligible rollover distribution transferred to 

10 such plan by the participant or beneficiary who 

11 received such overpayment (and the plans mak12 ing and receiving such transfer shall be treated 

13 as permitting such transfer). 

14 In any case in which recoupment is sought on behalf 

15 of the plan but is disputed by the participant or bene16 ficiary who received such overpayment, such dispute 

17 shall be subject to the claims and appeals procedures 

18 of the plan that made such overpayment, such plan 

19 shall notify the plan receiving the rollover of such dis20 pute, and the plan receiving the rollover shall retain 

21 such overpayment on behalf of the participant or ben22 eficiary (and shall be entitled to treat such overpay23 ment as plan assets) pending the outcome of such pro24 cedures.’’. 


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

2 the Employee Retirement Income Security Act of 1974 (29 

3 U.S.C. 1056) is amended by adding at the end the following 

4 new subsection: 

5 ‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT OVER6 PAYMENTS.— 

7 ‘‘(1) GENERAL RULE.—In the case of an inad8 vertent benefit overpayment by any pension plan, the 

9 responsible plan fiduciary shall not be considered to 

10 have failed to comply with the requirements of this 

11 title merely because such fiduciary determines, in the 

12 exercise of its fiduciary discretion, not to seek recov13 ery of all or part of such overpayment from— 

14 ‘‘(A) any participant or beneficiary, 

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

16 employer to— 

17 ‘‘(i) an individual account plan, pro18 vided that the amount needed to prevent or 

19 restore any impermissible forfeiture from 

20 any participant’s or beneficiary’s account 

21 arising in connection with the overpayment 

22 is, separately from and independently of the 

23 overpayment, allocated to such account pur24 suant to the nonforfeitability requirements 

25 of section 203 (for example, out of the plan’s 


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1 forfeiture account, additional employer con2 tributions, or recoveries from those respon3 sible for the overpayment), or 

4 ‘‘(ii) a defined benefit pension plan 

5 subject to the funding rules in part 3 of this 

6 subtitle B, unless the responsible plan fidu7 ciary determines, in the exercise of its fidu8 ciary discretion, that failure to recover all 

9 or part of the overpayment faster than re10 quired under such funding rules would ma11 terially affect the plan’s ability to pay bene12 fits due to other participants and bene13 ficiaries, or 

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

15 a fiduciary (including a plan sponsor or contrib16 uting employer acting in a fiduciary capacity) 

17 whose breach of its fiduciary duties resulted in 

18 such overpayment, provided that if the plan has 

19 established prudent procedures to prevent and 

20 minimize overpayment of benefits and the rel21 evant plan fiduciaries have followed such proce22 dures, an inadvertent benefit overpayment will 

23 not give rise to a breach of fiduciary duty. 

24 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAYMENTS

25 AND RECOVERY FROM RESPONSIBLE PARTY.—ParaVerDate Sep 11 2014 00:07 Mar 30, 2022 Jkt 029200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6203 E:\BILLS\H2954.RH H2954

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1 graph (1) shall not fail to apply with respect to any 

2 inadvertent benefit overpayment merely because, after 

3 discovering such overpayment, the responsible plan fi4 duciary— 

5 ‘‘(A) reduces future benefit payments to the 

6 correct amount provided for under the terms of 

7 the plan, or 

8 ‘‘(B) seeks recovery from the person or per9 sons responsible for the overpayment. 

10 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.—Noth11 ing in this subsection shall relieve an employer of any 

12 obligation imposed on it to make contributions to a 

13 plan to meet the minimum funding standards under 

14 part 3 of this subtitle B or to prevent or restore an 

15 impermissible forfeiture in accordance with section 

16 203. 

17 ‘‘(4) RECOUPMENT FROM PARTICIPANTS AND

18 BENEFICIARIES.—If the responsible plan fiduciary, in 

19 the exercise of its fiduciary discretion, decides to seek 

20 recoupment from a participant or beneficiary of all 

21 or part of an inadvertent benefit overpayment made 

22 by the plan to such participant or beneficiary, it may 

23 do so, subject to the following conditions: 


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1 ‘‘(A) No interest or other additional 

2 amounts (such as collection costs or fees) are 

3 sought on overpaid amounts. 

4 ‘‘(B) If the plan seeks to recoup past over5 payments of a non-decreasing periodic benefit by 

6 reducing future benefit payments— 

7 ‘‘(i) the reduction ceases after the plan 

8 has recovered the full dollar amount of the 

9 overpayment, 

10 ‘‘(ii) the amount recouped each cal11 endar year does not exceed 10 percent of the 

12 full dollar amount of the overpayment, and 

13 ‘‘(iii) future benefit payments are not 

14 reduced to below 90 percent of the periodic 

15 amount otherwise payable under the terms 

16 of the plan. 

17 Alternatively, if the plan seeks to recoup past 

18 overpayments of a non-decreasing periodic ben19 efit through one or more installment payments, 

20 the sum of such installment payments in any 

21 calendar year does not exceed the sum of the re22 ductions that would be permitted in such year 

23 under the preceding sentence. 

24 ‘‘(C) If the plan seeks to recoup past over25 payments of a benefit other than a non-decreasVerDate Sep 11 2014 00:07 Mar 30, 2022 Jkt 029200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6203 E:\BILLS\H2954.RH H2954

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1 ing periodic benefit, the plan satisfies require2 ments developed by the Secretary of the Treasury 

3 for purposes of this subparagraph. 

4 ‘‘(D) Efforts to recoup overpayments are not 

5 made through a collection agency or similar 

6 third party and such efforts are not accompanied 

7 by threats of litigation, unless the responsible 

8 plan fiduciary reasonably believes it could pre9 vail in a civil action brought in Federal or State 

10 court to recoup the overpayments. 

11 ‘‘(E) Recoupment of past overpayments to a 

12 participant is not sought from any beneficiary of 

13 the participant, including a spouse, surviving 

14 spouse, former spouse, or other beneficiary. 

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

16 first overpayment occurred more than 3 years be17 fore the participant or beneficiary is first noti18 fied in writing of the error. 

19 ‘‘(G) A participant or beneficiary from 

20 whom recoupment is sought is entitled to contest 

21 all or part of the recoupment pursuant to the 

22 plan’s claims and appeals procedures. 

23 ‘‘(H) In determining the amount of 

24 recoupment to seek, the responsible plan fidu25 ciary may take into account the hardship that 


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1 recoupment likely would impose on the partici2 pant or beneficiary. 

3 ‘‘(5) EFFECT OF CULPABILITY.—Subparagraphs 

4 (A) through (F) of paragraph (4) shall not apply to 

5 protect a participant or beneficiary who is culpable. 

6 For purposes of this paragraph, a participant or ben7 eficiary is culpable if the individual bears responsi8 bility for the overpayment (such as through misrepre9 sentations or omissions that led to the overpayment), 

10 or if the individual knew, or had good reason to know 

11 under the circumstances, that the benefit payment or 

12 payments were materially in excess of the correct 

13 amount. Notwithstanding the preceding sentence, an 

14 individual is not culpable merely because the indi15 vidual believed the benefit payment or payments were 

16 or might be in excess of the correct amount, if the in17 dividual raised that question with an authorized plan 

18 representative and was told the payment or payments 

19 were not in excess of the correct amount. With respect 

20 to a culpable participant or beneficiary, efforts to re21 coup overpayments shall not be made through threats 

22 of litigation, unless a lawyer for the plan could make 

23 the representations required under Rule 11 of the Fed24 eral Rules of Civil Procedure if the litigation were 

25 brought in Federal court.’’. 


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

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

3 Act. 

4 (d) CERTAIN ACTIONS BEFORE DATE OF ENACT5 MENT.—Plans, fiduciaries, employers, and plan sponsors 

6 are entitled to rely on— 

7 (1) a good faith interpretation of then existing 

8 administrative guidance for inadvertent benefit over9 payment recoupments and recoveries that commenced 

10 before the date of enactment of this Act, and 

11 (2) determinations made before such date of en12 actment by the responsible plan fiduciary, in the exer13 cise of its fiduciary discretion, not to seek recoupment 

14 or recovery of all or part of an inadvertent benefit 

15 overpayment. 

16 In the case of a benefit overpayment that occurred prior 

17 to the date of enactment of this Act, any installment pay18 ments by the participant or beneficiary to the plan or any 

19 reduction in periodic benefit payments to the participant 

20 or beneficiary, which were made in recoupment of such 

21 overpayment and which commenced prior to such date, may 

22 continue after such date. Nothing in this subsection shall 

23 relieve a fiduciary from responsibility for an overpayment 

24 that resulted from a breach of its fiduciary duties. 


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1 SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMU2 LATIONS IN QUALIFIED RETIREMENT PLANS. 

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

4 Revenue Code of 1986 is amended by striking ‘‘50 percent’’ 

5 and inserting ‘‘25 percent’’. 

6 (b) REDUCTION IN EXCISE TAX ON FAILURES TO TAKE

7 REQUIRED MINIMUM DISTRIBUTIONS.—Section 4974 of 

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

9 new subsection: 

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

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

12 who— 

13 ‘‘(A) corrects, during the correction window, 

14 a shortfall of distributions from an individual 

15 retirement plan which resulted in imposition of 

16 a tax under subsection (a), and 

17 ‘‘(B) submits a return, during the correc18 tion window, reflecting such tax (as modified by 

19 this subsection), 

20 the first sentence of subsection (a) shall be applied by 

21 substituting ‘10 percent’ for ‘25 percent’. 

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

23 this subsection, the term ‘correction window’ means 

24 the period of time beginning on the date on which the 

25 tax under subsection (a) is imposed with respect to a 


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1 shortfall of distributions from an individual retire2 ment plan, and ending on the earlier of— 

3 ‘‘(A) the date on which the Secretary initi4 ates an audit, or otherwise demands payment, 

5 with respect to the shortfall of distributions, or 

6 ‘‘(B) the last day of the second taxable year 

7 that begins after the end of the taxable year in 

8 which the tax under subsection (a) is imposed.’’. 

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

10 section shall apply to taxable years beginning after Decem11 ber 31, 2021. 

12 SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLO13 CATION FUNDS. 

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

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

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

17 under section 404 of the Employee Retirement Income Secu18 rity Act of 1974 (29 U.S.C. 1104) to provide that, in the 

19 case of a designated investment alternative which contains 

20 a mix of asset classes, a plan administrator may, but is 

21 not required to, use a benchmark which is a blend of dif22 ferent broad-based securities market indices if— 

23 (1) the blend is reasonably representative of the 

24 asset class holdings of the designated investment alter25 native; 


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1 (2) for purposes of determining the blend’s re2 turns for 1-, 5-, and 10-calendar-year periods (or for 

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

4 modified at least once per year to reflect changes in 

5 the asset class holdings of the designated investment 

6 alternative; 

7 (3) the blend is furnished to participants and 

8 beneficiaries in a manner that is reasonably designed 

9 to be understandable and helpful; and 

10 (4) each securities market index which is used 

11 for an associated asset class would separately satisfy 

12 the requirements of such regulations for such asset 

13 class. 

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

15 Secretary of Labor (or the Secretary’s delegate) shall deliver 

16 a report to the Committees on Ways and Means and Edu17 cation and Labor of the House of Representatives and the 

18 Committees on Finance and Health, Education, Labor, and 

19 Pensions of the Senate regarding the effectiveness of the 

20 benchmarking requirements under section 2550.404a–5 of 

21 title 29, Code of Federal Regulations. 


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1 SEC. 304. REVIEW AND REPORT TO THE CONGRESS RELAT2 ING TO REPORTING AND DISCLOSURE RE3 QUIREMENTS. 

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

5 the enactment of this Act, the Secretary of Labor, the Sec6 retary of the Treasury, and the Pension Benefit Guaranty 

7 Corporation shall review the reporting and disclosure re8 quirements of— 

9 (1) title I of the Employee Retirement Income 

10 Security Act of 1974 applicable to pension plans (as 

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

12 (2) the Internal Revenue Code of 1986 applicable 

13 to qualified retirement plans (as defined in section 

14 4974(c) of such Code without regard to paragraphs 

15 (4) and (5) thereof). 

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

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

18 Secretary of the Treasury, and the Pension Benefit Guar19 anty Corporation, jointly, and after consultation with a 

20 balanced group of participant and employer representa21 tives, shall with respect to plans referenced in subsection 

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

23 and disclosure requirements and make such recommenda24 tions as may be appropriate to the appropriate committees 

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

26 improve such requirements so as to simplify reporting for 


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1 such plans and ensure that plans can simply furnish and 

2 participants and beneficiaries timely receive and better un3 derstand the information they need to monitor their plans, 

4 plan for retirement, and obtain the benefits they have 

5 earned. Such report shall assess the extent to which retire6 ment plans are retaining disclosures, work records, and 

7 plan documents that are needed to ensure accurate calcula8 tion of future benefits. To assess the effectiveness of the ap9 plicable reporting and disclosure requirements, the report 

10 shall include an analysis, based on plan data, of how par11 ticipants and beneficiaries are providing preferred contact 

12 information, the methods by which plan sponsors and plans 

13 are furnishing disclosures, and the rate at which partici14 pants and beneficiaries (grouped by key demographics) are 

15 receiving, accessing, and retaining disclosures. The agencies 

16 shall conduct appropriate surveys and data collection to ob17 tain any needed information. 

18 SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIRE19 MENTS RELATED TO UNENROLLED PARTICI20 PANTS. 

21 (a) AMENDMENT OF INTERNAL REVENUE CODE OF

22 1986.—Section 414 of the Internal Revenue Code of 1986, 

23 as amended by the preceding provisions of this Act, is fur24 ther amended by adding at the end the following new sub25 section: 


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1 ‘‘(cc) ELIMINATING UNNECESSARY PLAN REQUIRE2 MENTS RELATED TO UNENROLLED PARTICIPANTS.— 

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

4 provision of this title, with respect to any defined 

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

6 document (other than the notices and documents de7 scribed in subparagraphs (A) and (B)) shall be re8 quired to be furnished under this title to any 

9 unenrolled participant if the unenrolled participant 

10 receives— 

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

12 format, or in any electronic format consented to 

13 by the participant) of such participant’s eligi14 bility to participate in such plan and any appli15 cable election deadlines under the plan, and 

16 ‘‘(B) any document requested by such par17 ticipant which the participant would be entitled 

18 to receive without regard to this subsection. 

19 ‘‘(2) UNENROLLED PARTICIPANT.—For purposes 

20 of this subsection, the term ‘unenrolled participant’ 

21 means an employee who— 

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

23 contribution plan, 

24 ‘‘(B) has received all required notices, dis25 closures, and other plan documents required to be 


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1 furnished under this title and the summary plan 

2 description as provided in section 104(b) of the 

3 Employee Retirement Income Security Act of 

4 1974 in connection with such participant’s ini5 tial eligibility to participate in such plan, 

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

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

8 For purposes of this subsection, any eligibility to par9 ticipate in the plan following any period for which 

10 such employee was not eligible to participate shall be 

11 treated as initial eligibility. 

12 ‘‘(3) ANNUAL REMINDER NOTICE.—For purposes 

13 of this subsection, the term ‘annual reminder notice’ 

14 means the notice described in section 111(c) of the 

15 Employee Retirement Income Security Act of 1974.’’. 

16 (b) AMENDMENT OF EMPLOYEE RETIREMENT INCOME

17 SECURITY ACT OF 1974.— 

18 (1) IN GENERAL.—Part 1 of subtitle B of sub19 chapter I of the Employee Retirement Income Secu20 rity Act of 1974 is amended by redesignating section 

21 111 as section 112 and by inserting after section 110 

22 the following new section: 


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

4 ‘‘(a) IN GENERAL.—Notwithstanding any other provi5 sion of this title, with respect to any individual account 

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

7 than the notices and documents described in paragraphs (1) 

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

9 to any unenrolled participant if the unenrolled participant 

10 receives— 

11 ‘‘(1) an annual reminder notice of such partici12 pant’s eligibility to participate in such plan and any 

13 applicable election deadlines under the plan; and 

14 ‘‘(2) any document requested by such participant 

15 which the participant would be entitled to receive 

16 without regard to this section. 

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

18 this section, the term ‘unenrolled participant’ means an em19 ployee who— 

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

21 account plan; 

22 ‘‘(2) has received all required notices, disclosures, 

23 and other plan documents, including the summary 

24 plan description, required to be furnished under this 

25 title in connection with such participant’s initial eli26 gibility to participate in such plan; 


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

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

3 For purposes of this section, any eligibility to participate 

4 in the plan following any period for which such employee 

5 was not eligible to participate shall be treated as initial 

6 eligibility. 

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

8 this section, the term ‘annual reminder notice’ means a no9 tice provided in accordance with section 2520.104b–1 of 

10 title 29, Code of Federal Regulations (or any successor regu11 lation), which— 

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

13 open season election period with respect to the plan 

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

15 reasonable period prior to the beginning of each plan 

16 year; 

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

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

19 to participate in the plan; and 

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

21 key rights and features under the plan affecting 

22 such benefits; and 

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

24 manner calculated to be understood by the average 

25 participant.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of con2 tents in section 1 of the Employee Retirement Income 

3 Security Act of 1974 is amended by striking the item 

4 relating to section 111 and by inserting after the item 

5 relating to section 110 the following new items: 

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

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

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

7 section shall apply to plan years beginning after December 

8 31, 2021. 

9 SEC. 306. RETIREMENT SAVINGS LOST AND FOUND. 

10 (a) RETIREMENT SAVINGS LOST AND FOUND.— 

11 (1) ESTABLISHMENT.— 

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

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

14 Secretary of Labor, the Secretary of the Treas15 ury, and the Secretary of Commerce, in coopera16 tion, shall establish an online searchable data17 base (to be managed by the Pension Benefit 

18 Guaranty Corporation in accordance with sec19 tion 4051 of the Employee Retirement Income 

20 Security Act of 1974) to be known as the ‘‘Re21 tirement Savings Lost and Found’’. The Retire22 ment Savings Lost and Found shall— 

23 (i) allow an individual to search for 

24 information that enables the individual to 


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1 locate the plan administrator of any plans 

2 with respect to which the individual is or 

3 was a participant or beneficiary, and to 

4 provide contact information for the plan 

5 administrator of any plan described in sub6 paragraph (B); 

7 (ii) allow the corporation to assist such 

8 an individual in locating any plan of the 

9 individual; and 

10 (iii) allow the corporation to make any 

11 necessary changes to contact information on 

12 record for the plan administrator based on 

13 any changes to the plan due to merger or 

14 consolidation of the plan with any other 

15 plan, division of the plan into two or more 

16 plans, bankruptcy, termination, change in 

17 name of the plan, change in name or ad18 dress of the plan administrator, or other 

19 causes. 

20 The Retirement Savings Lost and Found estab21 lished under this paragraph shall include infor22 mation reported under section 4051 of the Em23 ployee Retirement Income Security Act of 1974 

24 and other relevant information obtained by the 

25 Pension Benefit Guaranty Corporation. 


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1 (B) PLANS DESCRIBED.—A plan described 

2 in this subparagraph is a plan to which the vest3 ing standards of section 203 of part 2 of subtitle 

4 B of title I of the Employee Retirement Income 

5 Security Act of 1974 apply. 

6 (2) ADMINISTRATION.—The Retirement Savings 

7 Lost and Found established under paragraph (1) 

8 shall provide individuals described in paragraph 

9 (1)(A) only with the ability to view contact informa10 tion for the plan administrator of any plan with re11 spect to which the individual is or was a participant 

12 or beneficiary, sufficient to allow the individual to lo13 cate the individual’s plan in order to recover any 

14 benefit owing to the individual under the plan. 

15 (3) SAFEGUARDING PARTICIPANT PRIVACY AND

16 SECURITY.—In establishing the Retirement Savings 

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

18 Benefit Guaranty Corporation, in consultation with 

19 the Secretary of Labor, the Secretary of Treasury, 

20 and the Secretary of Commerce, shall take all nec21 essary and proper precautions to ensure that individ22 uals’ plan information maintained by the Retirement 

23 Savings Lost and Found is protected and that per24 sons other than the individual cannot fraudulently 

25 claim the benefits to which any individual is entitled, 


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1 and to allow any individual to opt out of inclusion 

2 in the Retirement Savings Lost and Found at the 

3 election of the individual. 

4 (b) OFFICE OF THE RETIREMENT SAVINGS LOST AND

5 FOUND.— 

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

7 Employee Retirement Income Security Act of 1974 

8 (29 U.S.C. 1341 et seq.) is amended by adding at the 

9 end the following: 

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

11 AND FOUND. 

12 ‘‘(a) ESTABLISHMENT; RESPONSIBILITIES OF OF13 FICE.— 

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

15 the date of the enactment of this section, the Secretary 

16 of Labor, the Secretary of Treasury, and the Sec17 retary of Commerce shall establish within the cor18 poration an Office of the Retirement Savings Lost 

19 and Found (in this section referred to as the ‘Office’). 

20 ‘‘(2) RESPONSIBILITIES OF OFFICE.— 

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

22 ‘‘(i) carry out subsection (b) of this sec23 tion; 

24 ‘‘(ii) maintain the Retirement Savings 

25 Lost and Found established under section 


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1 306(a) of the Securing a Strong Retirement 

2 Act of 2021; and 

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

4 information contained in the Retirement 

5 Savings Lost and Found and ensure that 

6 such information is current and accurate. 

7 ‘‘(B) OPTION TO CONTRACT.— 

8 ‘‘(i) IN GENERAL.—Not later than 2 

9 years after the date of enactment of this sec10 tion, the corporation shall conduct an anal11 ysis of the cost effectiveness of contracting 

12 with a third party to carry out the respon13 sibilities under subparagraph (A)(iii) and, 

14 upon a determination that such contracting 

15 would be more cost effective than carrying 

16 out such responsibilities within the Office, 

17 the corporation may enter into such con18 tracts as merited by such analysis. 

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

20 report on the results of the analysis under 

21 clause (i) to the Committees on Finance and 

22 Health, Education, Labor, and Pensions of 

23 the Senate and the Committees on Ways 

24 and Means and Education and Labor of the 

25 House of Representatives. 


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1 ‘‘(b) CERTAIN NON-RESPONSIVE PARTICIPANTS ENTI2 TLED TO SMALL BENEFITS.— 

3 ‘‘(1) GENERAL RULE.— 

4 ‘‘(A) TRANSFER TO THE OFFICE OF THE

5 RETIREMENT SAVINGS LOST AND FOUND.—The 

6 administrator of a plan that is not terminated 

7 and to which section 401(a)(31)(B) of the Inter8 nal Revenue Code of 1986 applies shall transfer 

9 to the Office the amount required to be trans10 ferred under section 401(a)(31)(B)(iv) of such 

11 Code for a non-responsive participant. 

12 ‘‘(B) INFORMATION AND PAYMENT TO THE

13 OFFICE.—Upon making a transfer under sub14 paragraph (A), the plan administrator shall pro15 vide such information and certifications as the 

16 Office shall specify, including with respect to the 

17 transferred amount and the non-responsive par18 ticipant. 

19 ‘‘(C) INFORMATION REQUIREMENTS AFTER

20 TRANSFER.—In the event that, after a transfer is 

21 made under subparagraph (A), the relevant non22 responsive participant contacts the plan admin23 istrator or the plan administrator discovers in24 formation that may assist the Office in locating 

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1 istrator shall notify and provide such informa2 tion as the Office shall specify to the Office. 

3 ‘‘(D) SEARCH AND PAYMENT BY THE OF4 FICE FOLLOWING TRANSFER.—The Office shall 

5 periodically, and upon receiving information de6 scribed in subparagraph (C), conduct a search 

7 for the non-responsive participant for whom the 

8 Office has received a transfer under subpara9 graph (A). Upon location of a non-responsive 

10 participant who claims benefits, the Office shall 

11 make a single payment to the non-responsive 

12 participant in an amount equal to the sum of— 

13 ‘‘(i) the amount transferred to the Of14 fice under subparagraph (A) for such par15 ticipant; and 

16 ‘‘(ii) the return on the investment at17 tributable to such amount under section 

18 4005(j)(3). 

19 ‘‘(2) DEFINITION.—For purposes of this sub20 section, the term ‘non-responsive participant’ means a 

21 participant or beneficiary of a plan described in 

22 paragraph (1)(A)— 

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

24 a mandatory transfer under section 


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1 401(a)(31)(B)(iii) of the Internal Revenue Code 

2 of 1986; and 

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

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

5 Code. 

6 ‘‘(3) REGULATORY AUTHORITY.—The Office shall 

7 prescribe such regulations as are necessary to carry 

8 out the purposes of this section, including rules relat9 ing to the amount payable to the Office and the 

10 amount to be paid by the Office. 

11 ‘‘(c) INFORMATION COLLECTION.—Within such period 

12 after the end of a plan year as the Office may by regulations 

13 prescribe, the administrator of a plan to which the vesting 

14 standards of section 203 apply shall submit the following 

15 information, and such other information as the corporation 

16 may require, to the corporation in such form as the corpora17 tion may require: 

18 ‘‘(1) The information described in paragraphs 

19 (1) through (4) of section 6057(b) of the Internal Rev20 enue Code of 1986. 

21 ‘‘(2) The information described in subparagraphs 

22 (A), (B), (E), and (F) of section 6057(a)(2) of the In23 ternal Revenue Code of 1986. 

24 ‘‘(d) EFFECTIVE DATE.—The requirements of sub25 sections (b) and (c) shall apply with respect to plan years 


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1 beginning after the second December 31 occurring after the 

2 date of the enactment of this section. 

3 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are 

4 authorized to be appropriated such sums as may be nec5 essary to carry out this section.’’. 

6 (2) ESTABLISHMENT OF FUND FOR TRANS7 FERRED ASSETS.—Section 4005 of the Employee Re8 tirement Income Security Act of 1974 (29 U.S.C. 

9 1305) is amended by adding at the end the following: 

10 ‘‘(j)(1) A ninth fund shall be established for the pay11 ment of benefits under section 4051(b)(1)(D). 

12 ‘‘(2) Such fund shall be credited with the appro13 priate— 

14 ‘‘(A) amounts transferred to the Office of the Re15 tirement Savings Lost and Found under section 

16 4051(b)(1)(A); and 

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

18 assets credited to the fund. 

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

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

21 request the investment of such amounts as it determines ad22 visable by the Secretary of the Treasury in obligations 

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

24 (3) CONFORMING AMENDMENT.—The table of 

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1 rity Act of 1974 (29 U.S.C. 1001 et seq.) is amended 

2 by inserting after the matter relating to section 4050 

3 the following: 

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

4 (c) MANDATORY TRANSFERS OF ROLLOVER DISTRIBU5 TIONS.— 

6 (1) INVESTMENT OPTIONS.— 

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

8 section 404(c)(3) of the Employee Retirement In9 come Security Act of 1974 (29 U.S.C. 

10 1104(c)(3)) is amended by striking the period at 

11 the end and inserting ‘‘, and, to the extent the 

12 Secretary provides in guidance or regulations 

13 issued after the enactment of the Securing a 

14 Strong Retirement Act of 2021, is made to— 

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

16 held under such account; 

17 ‘‘(ii) as described in section 

18 2550.404a–2 of title 29, Code of Federal 

19 Regulations, an investment product held 

20 under such account designed to preserve 

21 principal and provide a reasonable rate of 

22 return; 

23 ‘‘(iii) the Office of the Retirement Sav24 ings Lost and Found in accordance with 

25 section 401(a)(31)(B)(iv) of the Internal 


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1 Revenue Code of 1986 and section 

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

3 Retirement Act of 2020; or 

4 ‘‘(iv) such other option as the Sec5 retary may so provide.’’. 

6 (B) REGULATIONS.—Not later than 270 

7 days after the date of the enactment of this Act, 

8 the Secretary of Labor shall promulgate regula9 tions identifying the target date or life cycle 

10 funds, or specifying the characteristics of such a 

11 fund, that will be deemed to meet the require12 ments of section 404(c)(3)(B)(i) of the Employee 

13 Retirement Income Security Act of 1974 (29 

14 U.S.C. 1104(c)(3)(B)), as amended by subpara15 graph (A). 

16 (2) EXPANSION OF CAP; AUTHORITY TO TRANS17 FER LESSER AMOUNTS.— 

18 (A) CAP.—Sections 401(a)(31)(B)(ii) and 

19 411(a)(11)(A) of the Internal Revenue Code of 

20 1986 and section 203(e)(1) of the Employee Re21 tirement Income Security Act of 1974 are each 

22 amended by striking ‘‘$5,000’’ and inserting 

23 ‘‘$6,000’’. 

24 (B) DISTRIBUTION OF LARGER AMOUNTS TO

25 INDIVIDUAL RETIREMENT PLANS ONLY.—Section 


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1 401(a)(31)(B)(i) of such Code is amended by 

2 adding at the end the following: ‘‘The Office of 

3 the Retirement Savings Lost and Found estab4 lished by section 306 of the Securing a Strong 

5 Retirement Act shall not be treated as a trustee 

6 or issuer that is eligible to receive such distribu7 tions.’’. 

8 (C) LESSER AMOUNTS.—Section 

9 401(a)(31)(B) of such Code is amended by add10 ing at the end the following new clauses: 

11 ‘‘(iii) TREATMENT OF LESSER

12 AMOUNTS.—In the case of a trust which is 

13 part of an eligible plan, such trust shall not 

14 be a qualified trust under this section unless 

15 such plan provides that, if a participant in 

16 the plan separates from the service covered 

17 by the plan and the nonforfeitable accrued 

18 benefit described in clause (ii) is not in ex19 cess of $1,000, the plan administrator shall 

20 (either separately or as part of the notice 

21 under section 402(f)) notify the participant 

22 that the participant is entitled to such ben23 efit or attempt to pay the benefit directly to 

24 the participant. 


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1 ‘‘(iv) TRANSFERS TO RETIREMENT SAV2 INGS LOST AND FOUND.—If, after a plan 

3 administrator takes the action required 

4 under clause (iii), the participant does 

5 not— 

6 ‘‘(I) within 6 months of the notifi7 cation under such clause, make an elec8 tion under subparagraph (A) or elect 

9 to receive a distribution of the benefit 

10 directly, or 

11 ‘‘(II) accept any direct payment 

12 made under such clause within 6 

13 months of the attempted payment, 

14 the plan administrator shall transfer the 

15 amount of such benefit to the Office of the 

16 Retirement Savings Lost and Found in ac17 cordance with section 4051(b) of the Em18 ployee Retirement Income Security Act of 

19 1974. 

20 ‘‘(v) INCOME TAX TREATMENT OF

21 TRANSFERS TO RETIREMENT SAVINGS LOST

22 AND FOUND.—For purposes of determining 

23 the income tax treatment of transfers to the 

24 Office of the Retirement Savings Lost and 

25 Found under clause (iv)— 


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1 ‘‘(I) such a transfer shall be treat2 ed as a transfer to an individual re3 tirement 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 be 

7 treated as a distribution from an indi8 vidual 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 oc14 curring after the date of the enactment of this 

15 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) the 

9 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 amount 

20 was distributed under section 401(a)(31)(B) 

21 during the plan year, or 

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

23 annuity contract was distributed during the 

24 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 retire9 ment plan to which the amount was distrib10 uted, and 

11 ‘‘(ii) in the case of a participant de12 scribed in clause (iii) thereof, the name and 

13 address of the issuer of such annuity con14 tract and the contract or certificate number, 

15 and’’. 

16 (2) RULES RELATING TO DIRECT TRUSTEE-TO17 TRUSTEE TRANSFERS.— 

18 (A) IN GENERAL.—Paragraph (6) of section 

19 402(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 in 

5 clause (i) thereof that the transfer is a manda6 tory 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 the 

10 heading and inserting ‘‘OR NOTIFICATION’’; 

11 (ii) by striking ‘‘402(f),’’ and inserting 

12 ‘‘402(f) or a notification as required by sec13 tion 402(e)(6)(B),’’; and 

14 (iii) by striking ‘‘such written expla15 nation’’ and inserting ‘‘such written expla16 nation or notification’’. 

17 (C) REPORTS.—Subsection (i) of section 

18 408 of such Code is amended— 

19 (i) by redesignating subparagraphs (A) 

20 and (B) of paragraph (2) as clauses (i) and 

21 (ii), respectively, and by moving such 

22 clauses 2 ems to the right; 

23 (ii) by redesignating paragraphs (1) 

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1 spectively, and by moving such subpara2 graphs 2 ems to the right; 

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 designated 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 preceding 

19 clauses, the following new paragraph: 

20 ‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 

21 of an account, contract, or annuity to which a trans22 fer under section 401(a)(31)(B) is made (including a 

23 transfer from the individual retirement plan to which 

24 the original transfer under such section was made to 

25 another individual retirement plan), the report reVerDate Sep 11 2014 00:07 Mar 30, 2022 Jkt 029200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6203 E:\BILLS\H2954.RH H2954

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1 quired by this subsection for the year of the transfer 

2 and any year in which the information previously re3 ported in subparagraph (B) changes shall— 

4 ‘‘(A) identify such transfer as a mandatory 

5 distribution required by such section, 

6 ‘‘(B) include the name, address, and tax7 payer identifying number of the trustee or issuer 

8 of the individual retirement plan to which the 

9 amount is transferred, and 

10 ‘‘(C) be filed with the Pension Benefit 

11 Guaranty Corporation as well as with the Sec12 retary.’’. 

13 (3) NOTIFICATION OF PARTICIPANTS UPON SEPA14 RATION.—Subsection (e) of section 6057 of such Code 

15 is amended by inserting ‘‘, and, with respect to any 

16 benefit of the individual subject to section 

17 401(a)(31)(B), a notice of availability of, and the 

18 contact information for, the Retirement Savings Lost 

19 and Found established under section 306(a)(1) of the 

20 Securing a Strong Retirement Act of 2021’’ before the 

21 period at the end of the second sentence. 

22 (4) EFFECTIVE DATE.—The amendments made 

23 by this paragraph shall apply to distributions made 

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1 ning after the second December 31 occurring after the 

2 date of the enactment of this Act. 

3 (e) REQUIREMENT OF ELECTRONIC FILING.— 

4 (1) IN GENERAL.—Paragraph (2) of section 

5 6011(e) of the Internal Revenue Code of 1986 is 

6 amended— 

7 (A) by redesignating subparagraphs (A) 

8 and (B) as clauses (i) and (ii), respectively, and 

9 by moving such clauses 2 ems to the right; 

10 (B) by striking ‘‘REGULATIONS.—In pre11 scribing’’ and inserting ‘‘REGULATIONS.— 

12 ‘‘(A) IN GENERAL.—In prescribing’’; and 

13 (C) by adding at the end the following new 

14 subparagraph: 

15 ‘‘(B) EXCEPTIONS.—Notwithstanding sub16 paragraph (A), the Secretary shall require re17 turns or reports required under— 

18 ‘‘(i) sections 6057, 6058, and 6059, 

19 and 

20 ‘‘(ii) sections 408(i), 6041, and 6047 to 

21 the extent such return or report relates to 

22 the tax treatment of a distribution from a 

23 plan, account, contract, or annuity, 

24 to be filed on magnetic media, but only with re25 spect to persons who are required to file at least 


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1 50 returns during the calendar year which in2 cludes the first day of the plan year to which 

3 such returns or reports relate.’’. 

4 (2) EFFECTIVE DATE.—The amendments made 

5 by this paragraph shall apply to returns and reports 

6 relating to years beginning after the second December 

7 31 occurring after the date of the enactment of this 

8 Act. 

9 (f) RULEMAKING TO CLARIFY FIDUCIARY DUTIES.— 

10 (1) REQUEST FOR INFORMATION.—Not later 

11 than 1 year after the date of enactment of this Act, 

12 the Secretary of Labor, in consultation with the Sec13 retary of the Treasury, shall issue a request for infor14 mation relating to the rulemaking described in para15 graph (2). 

16 (2) ISSUANCE OF FINAL RULE.—Not later than 3 

17 years after such date, the Secretary of Labor, in con18 sultation with the Secretary of the Treasury, shall 

19 issue a final rule that defines the following: 

20 (A) The steps a plan sponsor must take to 

21 locate a deferred vested participant in order to 

22 meet its fiduciary duty under section 404 of the 

23 Employee Retirement Income Security Act of 

24 1974 with respect to locating that participant. 


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1 (B) The ongoing practices and procedures a 

2 plan sponsor must institute in order to meet 

3 such fiduciary duty with respect to maintaining 

4 up-to-date contact information on deferred vested 

5 participants. 

6 SEC. 307. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 

7 RESOLUTION SYSTEM. 

8 (a) IN GENERAL.—Except as otherwise provided in the 

9 Internal Revenue Code of 1986 or regulations prescribed by 

10 the Secretary of the Treasury or the Secretary’s delegate (re11 ferred to in this section as the ‘‘Secretary’’), any eligible 

12 inadvertent failure to comply with the rules applicable 

13 under section 401(a), 403(a), 403(b), 408(p), or 408(k) of 

14 such Code may be self-corrected under the Employee Plans 

15 Compliance Resolution System (as described in Revenue 

16 Procedure 2019–19 or any successor guidance and hereafter 

17 in this section referred to as the ‘‘EPCRS’’), except to the 

18 extent that such failure was identified by the Secretary 

19 prior to any actions which demonstrate a commitment to 

20 implement a self-correction. Revenue Procedure 2019–19 is 

21 deemed amended as of the date of the enactment of this Act 

22 to provide that the correction period under section 9.02 of 

23 such Revenue Procedure (or any successor guidance) for an 

24 eligible inadvertent failure, except as otherwise provided 

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1 retary, is indefinite and has no last day, other than with 

2 respect to failures identified by the Secretary prior to any 

3 self-correction as described in the preceding sentence. 

4 (b) LOAN ERRORS.—In the case of an eligible inad5 vertent failure relating to a loan from a plan to a partici6 pant— 

7 (1) such failure may be self-corrected under sub8 section (a) according to the rules of section 6.07 of 

9 Revenue Procedure 2019–19 (or any successor guid10 ance), including the provisions related to whether a 

11 deemed distribution must be reported on Form 1099– 

12 R, and 

13 (2) the Secretary of Labor shall treat any such 

14 failure which is so self-corrected under subsection (a) 

15 as meeting the requirements of the Voluntary Fidu16 ciary Correction Program of the Department of Labor 

17 if, with respect to the violation of the fiduciary stand18 ards of the Employee Retirement Income Security Act 

19 of 1974, there is a similar loan error eligible for cor20 rection under EPCRS and the loan error is corrected 

21 in such manner. 

22 (c) EPCRS FOR IRAS.—The Secretary shall expand 

23 the EPCRS to allow custodians of individual retirement 

24 plans (as defined in section 7701(a)(37) of the Internal 

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1 ures with respect to an individual retirement plan (as so 

2 defined), including (but not limited to)— 

3 (1) waivers of the excise tax which would other4 wise apply under section 4974 of the Internal Rev5 enue Code of 1986, 

6 (2) under the self-correction component of the 

7 EPCRS, waivers of the 60-day deadline for a rollover 

8 where the deadline is missed for reasons beyond the 

9 reasonable control of the account owner, and 

10 (3) rules permitting a nonspouse beneficiary to 

11 return distributions to an inherited individual retire12 ment plan described in section 408(d)(3)(C) of the In13 ternal Revenue Code of 1986 in a case where, due to 

14 an inadvertent error by a service provider, the bene15 ficiary had reason to believe that the distribution 

16 could be rolled over without inclusion in income of 

17 any part of the distributed amount. 

18 (d) ADDITIONAL SAFE HARBORS.—The Secretary shall 

19 expand the EPCRS to provide additional safe harbor means 

20 of correcting eligible inadvertent failures described in sub21 section (a), including safe harbor means of calculating the 

22 earnings which must be restored to a plan in cases where 

23 plan assets have been depleted by reason of an eligible inad24 vertent failure. 


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1 (e) ELIGIBLE INADVERTENT FAILURE.—For purposes 

2 of this section— 

3 (1) IN GENERAL.—Except as provided in para4 graph (2), the term ‘‘eligible inadvertent failure’’ 

5 means a failure that occurs despite the existence of 

6 practices and procedures which— 

7 (A) satisfy the standards set forth in section 

8 4.04 of Revenue Procedure 2019–19 (or any suc9 cessor guidance), or 

10 (B) satisfy similar standards in the case of 

11 an individual retirement plan. 

12 (2) EXCEPTION.—The term ‘‘eligible inadvertent 

13 failure’’ shall not include any failure which is egre14 gious, relates to the diversion or misuse of plan assets, 

15 or is directly or indirectly related to an abusive tax 

16 avoidance transaction. 

17 (f) APPLICATION OF CERTAIN REQUIREMENTS FOR

18 CORRECTING ERRORS.—This section shall not apply to any 

19 failure unless the correction of such failure under this sec20 tion is made in conformity with the general principles that 

21 apply to corrections of such failures under the Internal Rev22 enue Code of 1986, including regulations or other guidance 

23 issued thereunder and including those principles and cor24 rections set forth in Revenue Procedure 2019–19 (or any 

25 successor guidance).’’ 


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1 SEC. 308. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE2 QUIREMENT FOR GOVERNMENTAL SECTION 

3 457(B) PLANS. 

4 (a) IN GENERAL.—Paragraph (4) of section 457(b) of 

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

6 follows: 

7 ‘‘(4) which provides that compensation— 

8 ‘‘(A) in the case of an eligible employer de9 scribed in subsection (e)(1)(A), will be deferred 

10 only if an agreement providing for such deferral 

11 has been entered into before the compensation is 

12 currently available to the individual, and 

13 ‘‘(B) in any other case, will be deferred for 

14 any calendar month only if an agreement pro15 viding for such deferral has been entered into be16 fore the beginning of such month,’’. 

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

18 section shall apply to taxable years beginning after the date 

19 of the enactment of this Act. 

20 SEC. 309. ONE-TIME ELECTION FOR QUALIFIED CHARI21 TABLE DISTRIBUTION TO SPLIT-INTEREST 

22 ENTITY; INCREASE IN QUALIFIED CHARI23 TABLE DISTRIBUTION LIMITATION. 

24 (a) ONE-TIME ELECTION FOR QUALIFIED CHARITABLE

25 DISTRIBUTION TO SPLIT-INTEREST ENTITY.—Section 


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1 408(d)(8) of such Code is amended by adding at the end 

2 the following new subparagraph: 

3 ‘‘(F) ONE-TIME ELECTION FOR QUALIFIED

4 CHARITABLE DISTRIBUTION TO SPLIT-INTEREST

5 ENTITY.— 

6 ‘‘(i) IN GENERAL.—A taxpayer may 

7 for a taxable year elect under this subpara8 graph to treat as meeting the requirement of 

9 subparagraph (B)(i) any distribution from 

10 an individual retirement account which is 

11 made directly by the trustee to a split-inter12 est entity, but only if— 

13 ‘‘(I) an election is not in effect 

14 under this subparagraph for a pre15 ceding taxable year, 

16 ‘‘(II) the aggregate amount of dis17 tributions of the taxpayer with respect 

18 to which an election under this sub19 paragraph is made does not exceed 

20 $50,000, and 

21 ‘‘(III) such distribution meets the 

22 requirements of clauses (iii) and (iv). 

23 ‘‘(ii) SPLIT-INTEREST ENTITY.—For 

24 purposes of this subparagraph, the term 

25 ‘split-interest entity’ means— 


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1 ‘‘(I) a charitable remainder annu2 ity trust (as defined in section 

3 664(d)(1)), but only if such trust is 

4 funded exclusively by qualified chari5 table distributions, 

6 ‘‘(II) a charitable remainder 

7 unitrust (as defined in section 

8 664(d)(2)), but only if such unitrust is 

9 funded exclusively by qualified chari10 table distributions, or 

11 ‘‘(III) a charitable gift annuity 

12 (as defined in section 501(m)(5)), but 

13 only if such annuity is funded exclu14 sively by qualified charitable distribu15 tions and commences fixed payments of 

16 5 percent or greater not later than 1 

17 year from the date of funding. 

18 ‘‘(iii) CONTRIBUTIONS MUST BE OTH19 ERWISE DEDUCTIBLE.—A distribution 

20 meets the requirement of this clause only 

21 if— 

22 ‘‘(I) in the case of a distribution 

23 to a charitable remainder annuity 

24 trust or a charitable remainder uni25 trust, a deduction for the entire value 


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1 of the remainder interest in the dis2 tribution for the benefit of a specified 

3 charitable organization would be al4 lowable under section 170 (determined 

5 without regard to subsection (b) thereof 

6 and this paragraph), and 

7 ‘‘(II) in the case of a charitable 

8 gift annuity, a deduction in an 

9 amount equal to the amount of the dis10 tribution reduced by the value of the 

11 annuity described in section 

12 501(m)(5)(B) would be allowable under 

13 section 170 (determined without regard 

14 to subsection (b) thereof and this para15 graph). 

16 ‘‘(iv) LIMITATION ON INCOME INTER17 ESTS.—A distribution meets the require18 ments of this clause only if— 

19 ‘‘(I) no person holds an income 

20 interest in the split-interest entity 

21 other than the individual for whose 

22 benefit such account is maintained, the 

23 spouse of such individual, or both, and 

24 ‘‘(II) the income interest in the 

25 split-interest entity is nonassignable. 


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1 ‘‘(v) SPECIAL RULES.— 

2 ‘‘(I) CHARITABLE REMAINDER

3 TRUSTS.—Notwithstanding section 

4 664(b), distributions made from a trust 

5 described in subclause (I) or (II) of 

6 clause (ii) shall be treated as ordinary 

7 income in the hands of the beneficiary 

8 to whom the annuity described in sec9 tion 664(d)(1)(A) or the payment de10 scribed in section 664(d)(2)(A) is paid. 

11 ‘‘(II) CHARITABLE GIFT ANNU12 ITIES.—Qualified charitable distribu13 tions made to fund a charitable gift 

14 annuity shall not be treated as an in15 vestment in the contract for purposes of 

16 section 72(c).’’. 

17 (b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 

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

19 adding at the end the following new subparagraph: 

20 ‘‘(G) INFLATION ADJUSTMENT.— 

21 ‘‘(i) IN GENERAL.—In the case of any 

22 taxable year beginning after 2021, each of 

23 the dollar amounts in subparagraphs (A) 

24 and (F) shall be increased by an amount 

25 equal to— 


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1 ‘‘(I) such dollar amount, multi2 plied by 

3 ‘‘(II) the cost-of-living adjustment 

4 determined under section 1(f)(3) for 

5 the calendar year in which the taxable 

6 year begins, determined by substituting 

7 ‘calendar year 2020’ for ‘calendar year 

8 2016’ in subparagraph (A)(ii) thereof. 

9 ‘‘(ii) ROUNDING.—If any dollar 

10 amount increased under clause (i) is not a 

11 multiple of $1,000, such dollar amount shall 

12 be rounded to the nearest multiple of 

13 $1,000.’’. 

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

15 section shall apply to distributions made in taxable years 

16 ending after the date of the enactment of this Act. 

17 SEC. 310. DISTRIBUTIONS TO FIREFIGHTERS. 

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

19 72(t)(10) of the Internal Revenue Code of 1986 is amended 

20 by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a distribu21 tion from a plan described in clause (iii), (iv), or (vi) of 

22 section 402(c)(8)(B) to an employee who provides fire23 fighting services’’. 

24 (b) CONFORMING AMENDMENT.—The heading of para25 graph (10) of section 72(t) of such Code is amended— 


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1 (1) by striking ‘‘QUALIFIED’’, and 

2 (2) by striking ‘‘IN GOVERNMENTAL PLANS’’. 

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

4 section shall apply to distributions made after December 31, 

5 2021. 

6 SEC. 311. EXCLUSION OF CERTAIN DISABILITY-RELATED 

7 FIRST RESPONDER RETIREMENT PAYMENTS. 

8 (a) IN GENERAL.—Part III of subchapter B of chapter 

9 1 of the Internal Revenue Code of 1986 is amended by in10 serting after section 139B the following new section: 

11 ‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE12 SPONDER RETIREMENT PAYMENTS. 

13 ‘‘(a) IN GENERAL.—In the case of an individual who 

14 receives qualified first responder retirement payments for 

15 any taxable year, gross income shall not include so much 

16 of such payments as do not exceed the annualized excludable 

17 disability amount with respect to such individual. 

18 ‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT

19 PAYMENTS.—For purposes of this section, the term ‘quali20 fied first responder retirement payments’ means, with re21 spect to any taxable year, any pension or annuity which 

22 but for this section would be includible in gross income for 

23 such taxable year and which is received— 

24 ‘‘(1) from a plan described in clause (iii), (iv), 

25 (v), or (vi) of section 402(c)(8)(B), and 


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1 ‘‘(2) in connection with such individual’s quali2 fied first responder service. 

3 ‘‘(c) ANNUALIZED EXCLUDABLE DISABILITY

4 AMOUNT.—For purposes of this section— 

5 ‘‘(1) IN GENERAL.—The term ‘annualized exclud6 able disability amount’ means, with respect to any 

7 individual, the service-connected excludable disability 

8 amounts which are properly attributable to the 12- 

9 month period immediately preceding the date on 

10 which such individual attains retirement age. 

11 ‘‘(2) SERVICE-CONNECTED EXCLUDABLE DIS12 ABILITY AMOUNT.—The term ‘service-connected ex13 cludable disability amount’ means periodic payments 

14 received by an individual which— 

15 ‘‘(A) are not includible in such individual’s 

16 gross income under section 104(a)(1), 

17 ‘‘(B) are received in connection with such 

18 individual’s qualified first responder service, and 

19 ‘‘(C) terminate when such individual at20 tains retirement age. 

21 ‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY22 MENTS.—In the case of an individual who only re23 ceives service-connected excludable disability amounts 

24 properly attributable to a portion of the 12-month pe25 riod described in paragraph (1), such paragraph shall 


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1 be applied by multiplying such amounts by the ratio 

2 of 365 to the number of days in such period to which 

3 such amounts were properly attributable. 

4 ‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 

5 purposes of this section, the term ‘qualified first responder 

6 service’ means service as a law enforcement officer, fire7 fighter, paramedic, or emergency medical technician.’’. 

8 (b) CLERICAL AMENDMENT.—The table of sections for 

9 part III of subchapter B of chapter 1 of such Code is amend10 ed by inserting after the item relating to section 139B the 

11 following new item: 

‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 

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

13 section shall apply to amounts received with respect to tax14 able years beginning after December 31, 2026. 

15 SEC. 312. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM16 ITATIONS FOR EXCISE TAX ON EXCESS CON17 TRIBUTIONS AND CERTAIN ACCUMULATIONS. 

18 Section 6501(l) of the Internal Revenue Code of 1986 

19 is amended by adding at the end the following new para20 graph: 

21 ‘‘(4) INDIVIDUAL RETIREMENT PLANS.— 

22 ‘‘(A) IN GENERAL.—For purposes of any 

23 tax imposed by section 4973 or 4974 in connec24 tion with an individual retirement plan, the re25 turn referred to in this section shall be the inVerDate Sep 11 2014 00:07 Mar 30, 2022 Jkt 029200 PO 00000 Frm 00111 Fmt 6652 Sfmt 6203 E:\BILLS\H2954.RH H2954

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1 come tax return filed by the person on whom the 

2 tax under such section is imposed for the year in 

3 which the act (or failure to act) giving rise to the 

4 liability for such tax occurred. 

5 ‘‘(B) RULE IN CASE OF INDIVIDUALS NOT

6 REQUIRED TO FILE RETURN.—In the case of a 

7 person who is not required to file an income tax 

8 return for such year— 

9 ‘‘(i) the return referred to in this sec10 tion shall be the income tax return that 

11 such person would have been required to file 

12 but for the fact that such person was not re13 quired to file such return, and 

14 ‘‘(ii) the 3-year period referred to in 

15 subsection (a) with respect to the return 

16 shall be deemed to begin on the date by 

17 which the return would have been required 

18 to be filed (excluding any extension there19 of).’’. 

20 SEC. 313. REQUIREMENT TO PROVIDE PAPER STATEMENTS 

21 IN CERTAIN CASES. 

22 (a) IN GENERAL.—Section 105(a)(2) of the Employee 

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

24 1025(a)(2)) is amended— 


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1 (1) in subparagraph (A)(iv), by inserting ‘‘sub2 ject to subparagraph (E),’’ before ‘‘may be delivered’’; 

3 and 

4 (2) by adding at the end the following: 

5 ‘‘(E) PROVISION OF PAPER STATEMENTS.— 

6 With respect to at least 1 pension benefit state7 ment furnished for a calendar year with respect 

8 to an individual account plan under paragraph 

9 (1)(A), and with respect to at least 1 pension 

10 benefit statement furnished every 3 calendar 

11 years with respect to a defined benefit plan 

12 under paragraph (1)(B), such statement shall be 

13 furnished on paper in written form except— 

14 ‘‘(i) in the case of a plan that furnishes 

15 such statement in accordance with section 

16 2520.104b-1(c) of title 29, Code of Federal 

17 Regulations; or 

18 ‘‘(ii) in the case of a plan that permits 

19 a participant or beneficiary to request that 

20 the statements referred to in the matter pre21 ceding clause (i) be furnished by electronic 

22 delivery, if the participant or beneficiary 

23 requests that such statements be delivered 

24 electronically and the statements are so de25 livered.’’. 


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1 (b) IMPLEMENTATION.— 

2 (1) IN GENERAL.—The Secretary of Labor shall, 

3 not later than December 31, 2021, update section 

4 2520.104b-1(c) of title 29, Code of Federal Regula5 tions, to provide that a plan may furnish the state6 ments referred to in subparagraph (E) of section 

7 105(a)(2) by electronic delivery only if, in addition to 

8 meeting the other requirements under the regula9 tions— 

10 (A) such plan furnishes each participant or 

11 beneficiary, including participants described in 

12 subparagraph (B), a one-time initial notice on 

13 paper in written form, prior to the electronic de14 livery of any pension benefit statement, of their 

15 right to request that all documents required to be 

16 disclosed under title I of the Employee Retire17 ment Income Security Act of 1974 be furnished 

18 on paper in written form; and 

19 (B) such plan furnishes each participant 

20 who is separated from service with at least 1 

21 pension benefit statement on paper in written 

22 form for each calendar year, unless, on election 

23 of the participant, the participant receives such 

24 statements electronically. 


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1 (2) OTHER GUIDANCE.—In implementing the 

2 amendment made by subsection (a) with respect to a 

3 plan that discloses required documents or statements 

4 electronically, in accordance with applicable guidance 

5 governing electronic disclosure by the Department of 

6 Labor (with the exception of section 2520.104b-1(c) of 

7 title 29, Code of Federal Regulations), the Secretary 

8 of Labor shall, not later than December 31, 2021, up9 date such guidance to the extent necessary to ensure 

10 that— 

11 (A) a participant or beneficiary under such 

12 a plan is permitted the opportunity to request 

13 that any disclosure required to be delivered on 

14 paper under applicable guidance by the Depart15 ment of Labor shall be furnished by electronic 

16 delivery; 

17 (B) each paper statement furnished under 

18 such a plan pursuant to the amendment shall in19 clude— 

20 (i) an explanation of how to request 

21 that all such statements, and any other doc22 ument required to be disclosed under title I 

23 of the Employee Retirement Income Secu24 rity Act of 1974, be furnished by electronic 

25 delivery; and 


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1 (ii) contact information for the plan 

2 sponsor, including a telephone number; 

3 (C) the plan may not charge any fee to a 

4 participant or beneficiary for the delivery of any 

5 paper statements; 

6 (D) each paper pension benefit statement 

7 shall identify each plan document required to be 

8 disclosed and shall include information about 

9 how a participant or beneficiary may access 

10 each such document; 

11 (E) each document required to be disclosed 

12 that is furnished by electronic delivery under 

13 such a plan shall include an explanation of how 

14 to request that all such documents be furnished 

15 on paper in written form; and 

16 (F) a plan is permitted to furnish a dupli17 cate electronic statement in any case in which 

18 the plan furnishes a paper pension benefit state19 ment. 

20 (c) EFFECTIVE DATE.—The amendment made by sub21 section (a) shall apply with respect to plan years beginning 

22 after December 31, 2022. 


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1 SEC. 314. SEPARATE APPLICATION OF TOP HEAVY RULES 

2 TO DEFINED CONTRIBUTION PLANS COV3 ERING EXCLUDIBLE EMPLOYEES. 

4 (a) IN GENERAL.—Section 416(c)(2) of the Internal 

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

6 the following: 

7 ‘‘(C) SEPARATE APPLICATION TO EMPLOY8 EES NOT MEETING AGE AND SERVICE REQUIRE9 MENTS.—If employees not meeting the age or 

10 service requirements of section 410(a)(1) (with11 out regard to subparagraph (B) thereof) are cov12 ered under a plan of the employer which meets 

13 the requirements of subparagraphs (A) and (B) 

14 separately with respect to such employees, such 

15 employees may be excluded from consideration in 

16 determining whether any plan of the employer 

17 meets the requirements of subparagraphs (A) and 

18 (B).’’. 

19 (b) EFFECTIVE DATE.—The amendment made by sub20 section (a) shall apply to plan years beginning after the 

21 date of the enactment of this Act. 

22 SEC. 315. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 

23 DISTRIBUTION LIMITED TO 3 YEARS. 

24 (a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the In25 ternal Revenue Code of 1986 is amended by striking ‘‘may 

26 make’’ and inserting ‘‘may, at any time during the 3-year 


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1 period beginning on the day after the date on which such 

2 distribution was received, make’’. 

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

4 section shall take effect as if included in the enactment of 

5 section 113 of the Setting Every Community Up for Retire6 ment Enhancement Act of 2019. 

7 SEC. 316. EMPLOYER MAY RELY ON EMPLOYEE CERTIFYING 

8 THAT DEEMED HARDSHIP DISTRIBUTION 

9 CONDITIONS ARE MET. 

10 (a) CASH OR DEFERRED ARRANGEMENTS.—Section 

11 401(k)(14) of the Internal Revenue Code of 1986 is amended 

12 by adding at the end the following new subparagraph: 

13 ‘‘(C) EMPLOYEE CERTIFICATION.—In deter14 mining whether a distribution is upon the hard15 ship of an employee, the administrator of the 

16 plan may rely on a certification by the employee 

17 that the distribution is on account of a financial 

18 need of a type that is deemed in regulations pre19 scribed by the Secretary to be an immediate and 

20 heavy financial need and that such distribution 

21 is not in excess of the amount required to satisfy 

22 such financial need.’’. 

23 (b) 403(b) PLANS.— 


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1 (1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) of 

2 such Code is amended by adding at the end the fol3 lowing new subparagraph: 

4 ‘‘(D) EMPLOYEE CERTIFICATION.—In deter5 mining whether a distribution is upon the finan6 cial hardship of an employee, the administrator 

7 of the plan may rely on a certification by the 

8 employee that the distribution is on account of 

9 a financial need of a type that is deemed in reg10 ulations prescribed by the Secretary to be an im11 mediate and heavy financial need and that such 

12 distribution is not in excess of the amount re13 quired to satisfy such financial need.’’. 

14 (2) ANNUITY CONTRACTS.—Section 403(b)(11) of 

15 such Code is amended by adding at the end the fol16 lowing: ‘‘In determining whether a distribution is 

17 upon hardship of an employee, the administrator of 

18 the plan may rely on a certification by the employee 

19 that the distribution is on account of a financial need 

20 of a type that is deemed in regulations prescribed by 

21 the Secretary to be an immediate and heavy financial 

22 need and that such distribution is not in excess of the 

23 amount required to satisfy such financial need.’’. 

24 (c) 457(b) PLAN.—Section 457(d) of such Code is 

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


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1 ‘‘(4) PARTICIPANT CERTIFICATION.—In deter2 mining whether a distribution of a participant is 

3 made when the participant is faced with an unfore4 seeable emergency, the administrator of a plan main5 tained by an eligible employer described in subsection 

6 (e)(1)(A) may rely on a certification by the partici7 pant that the distribution is made when the partici8 pant is faced with unforeseeable emergency of a type 

9 that is specifically described in regulations prescribed 

10 by the Secretary as an unforeseeable emergency and 

11 that the distribution is not in excess of the amount 

12 reasonably necessary to satisfy the emergency need.’’. 

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

14 section shall apply to plan years beginning after December 

15 31, 2021. 

16 SEC. 317. PENALTY-FREE WITHDRAWALS FROM RETIRE17 MENT PLANS FOR INDIVIDUALS IN CASE OF 

18 DOMESTIC ABUSE. 

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

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

21 the following new subparagraph: 

22 ‘‘(I) DISTRIBUTIONS FROM RETIREMENT

23 PLAN IN CASE OF DOMESTIC ABUSE.— 

24 ‘‘(i) IN GENERAL.—Any eligible dis25 tribution to a domestic abuse victim. 


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1 ‘‘(ii) LIMITATION.—The aggregate 

2 amount which may be treated as an eligible 

3 distribution to a domestic abuse victim by 

4 any individual shall not exceed an amount 

5 equal to the lesser of— 

6 ‘‘(I) $10,000, or 

7 ‘‘(II) 50 percent of the present 

8 value of the nonforfeitable accrued ben9 efit of the employee under the plan. 

10 ‘‘(iii) ELIGIBLE DISTRIBUTION TO A

11 DOMESTIC ABUSE VICTIM.—For purposes of 

12 this subparagraph— 

13 ‘‘(I) IN GENERAL.—A distribution 

14 shall be treated as an eligible distribu15 tion to a domestic abuse victim if such 

16 distribution is from an applicable eli17 gible retirement plan to an individual 

18 and made during the 1-year period be19 ginning on any date on which the in20 dividual is a victim of domestic abuse 

21 by a spouse or domestic partner. 

22 ‘‘(II) DOMESTIC ABUSE.—The 

23 term ‘domestic abuse’ means physical, 

24 psychological, sexual, emotional, or 

25 economic abuse, including efforts to 


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1 control, isolate, humiliate, or intimi2 date the victim, or to undermine the 

3 victim’s ability to reason independ4 ently, including by means of abuse of 

5 the victim’s child or another family 

6 member living in the household. 

7 ‘‘(iv) TREATMENT OF PLAN DISTRIBU8 TIONS.— 

9 ‘‘(I) IN GENERAL.—If a distribu10 tion to an individual would (without 

11 regard to clause (ii)) be an eligible dis12 tribution to a domestic abuse victim , 

13 a plan shall not be treated as failing 

14 to meet any requirement of this title 

15 merely because the plan treats the dis16 tribution as an eligible distribution to 

17 a domestic abuse victim, unless the ag18 gregate amount of such distributions 

19 from all plans maintained by the em20 ployer (and any member of any con21 trolled group which includes the em22 ployer) to such individual exceeds the 

23 limitation under clause (ii). 

24 ‘‘(II) CONTROLLED GROUP.—For 

25 purposes of subclause (I), the term 


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1 ‘controlled group’ means any group 

2 treated as a single employer under sub3 section (b), (c), (m), or (o) of section 

4 414. 

5 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

6 REPAID.— 

7 ‘‘(I) IN GENERAL.—Any indi8 vidual who receives a distribution de9 scribed in clause (i) may, at any time 

10 during the 3-year period beginning on 

11 the day after the date on which such 

12 distribution was received, make one or 

13 more contributions in an aggregate 

14 amount not to exceed the amount of 

15 such distribution to an applicable eli16 gible retirement plan of which such in17 dividual is a beneficiary and to which 

18 a rollover contribution of such dis19 tribution could be made under section 

20 402(c), 403(a)(4), 403(b)(8), 408(d)(3), 

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

22 ‘‘(II) LIMITATION ON CONTRIBU23 TIONS TO APPLICABLE ELIGIBLE RE24 TIREMENT PLANS OTHER THAN

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1 tributions made by an individual 

2 under subclause (I) to any applicable 

3 eligible retirement plan which is not 

4 an individual retirement plan shall 

5 not exceed the aggregate amount of eli6 gible distributions to a domestic abuse 

7 victim which are made from such plan 

8 to such individual. Subclause (I) shall 

9 not apply to contributions to any ap10 plicable eligible retirement plan which 

11 is not an individual retirement plan 

12 unless the individual is eligible to 

13 make contributions (other than those 

14 described in subclause (I)) to such ap15 plicable eligible retirement plan. 

16 ‘‘(III) TREATMENT OF REPAY17 MENTS OF DISTRIBUTIONS FROM AP18 PLICABLE ELIGIBLE RETIREMENT

19 PLANS OTHER THAN IRAS.—If a con20 tribution is made under subclause (I) 

21 with respect to an eligible distribution 

22 to a domestic abuse victim from an ap23 plicable eligible retirement plan other 

24 than an individual retirement plan, 

25 then the taxpayer shall, to the extent of 


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1 the amount of the contribution, be 

2 treated as having received such dis3 tribution in an eligible rollover dis4 tribution (as defined in section 

5 402(c)(4)) and as having transferred 

6 the amount to the applicable eligible 

7 retirement plan in a direct trustee to 

8 trustee transfer within 60 days of the 

9 distribution. 

10 ‘‘(IV) TREATMENT OF REPAY11 MENTS FOR DISTRIBUTIONS FROM

12 IRAS.—If a contribution is made under 

13 subclause (I) with respect to an eligible 

14 distribution to a domestic abuse victim 

15 from an individual retirement plan, 

16 then, to the extent of the amount of the 

17 contribution, such distribution shall be 

18 treated as a distribution described in 

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

20 transferred to the applicable eligible re21 tirement plan in a direct trustee to 

22 trustee transfer within 60 days of the 

23 distribution. 


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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 eligi15 ble 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 this 

4 section shall apply to distributions made after the date of 

5 the enactment of this Act. 

6 SEC. 318. REFORM OF FAMILY ATTRIBUTION RULE. 

7 (a) IN GENERAL.—Section 414 of the Internal Revenue 

8 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 AT16 TRIBUTION.—For purposes of applying the attribu17 tion rules under section 1563 with respect to para18 graph (1), the following rules apply: 

19 ‘‘(A) Community property laws shall be dis20 regarded for purposes of determining ownership. 

21 ‘‘(B) Except as provided by the Secretary, 

22 stock of an individual not attributed under sec23 tion 1563(e)(5) to such individual’s spouse shall 

24 not be attributed to such spouse by reason of sec25 tion 1563(e)(6)(A). 


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1 ‘‘(C) Except as provided by the Secretary, 

2 in the case of stock in different corporations that 

3 is attributed to a child under section 

4 1563(e)(6)(A) from each parent, and is not at5 tributed to such parents as spouses under section 

6 1563(e)(5), such attribution to the child shall not 

7 by itself result in such corporations being mem8 bers of the same controlled group. 

9 ‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS

10 SATISFYING THIS SECTION.—If application of para11 graph (2) causes two or more entities to be a con12 trolled group, or an affiliated service group, or to no 

13 longer be in a controlled group or an affiliated service 

14 group, such change shall be treated as a transaction 

15 to which section 410(b)(6)(C) applies.’’, and 

16 (2) in subsection (m)(6)(B), by striking ‘‘apply’’ 

17 and inserting ‘‘apply, except that community prop18 erty laws shall be disregarded for purposes of deter19 mining ownership’’. 

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

21 section shall apply to plan years beginning on or after the 

22 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 Rev6 enue Code of 1986 is amended by adding at the end the 

7 following new paragraph: 

8 ‘‘(3) RETROACTIVE PLAN AMENDMENTS THAT IN9 CREASE 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 de15 fined in subsection (m)(4)(A))), 

16 ‘‘(B) such amendment would not otherwise 

17 cause the plan to fail to meet any of the require18 ments of this subchapter, and 

19 ‘‘(C) such amendment is adopted before the 

20 time prescribed by law for filing the return of 

21 the employer for a taxable year (including exten22 sions thereof) during which such amendment is 

23 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 this 

2 section shall apply to plan years beginning after December 

3 31, 2022. 

4 SEC. 320. RETROACTIVE FIRST YEAR ELECTIVE DEFERRALS 

5 FOR SOLE PROPRIETORS. 

6 (a) IN GENERAL.—Section 401(b)(2) of the Internal 

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

8 the following: ‘‘In the case of an individual who owns the 

9 entire interest in an unincorporated trade or business, and 

10 who is the only employee of such trade or business, any 

11 elective deferrals (as defined in section 402(g)(3)) under a 

12 qualified cash or deferred arrangement to which the pre13 ceding sentence applies, which are made by such individual 

14 before the time for filing the return of such individual for 

15 the taxable year (determined without regard to any exten16 sions) ending after or with the end of the plan’s first year, 

17 shall be treated as having been made before the end of such 

18 first plan year.’’. 

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

20 section shall apply to plan years beginning after the date 

21 of the enactment of this Act. 


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1 SEC. 321. LIMITING CESSATION OF IRA TREATMENT TO 

2 PORTION OF ACCOUNT INVOLVED IN A PRO3 HIBITED TRANSACTION. 

4 (a) IN GENERAL.—Section 408(e)(2)(A) of the Internal 

5 Revenue Code of 1986 is amended by striking ‘‘such account 

6 ceases to be an individual retirement account’’ and insert7 ing the following: ‘‘the portion of such account which is used 

8 in such transaction shall be treated as distributed to the 

9 individual’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 408(e)(2)(B) of such Code is amend12 ed— 

13 (A) by striking ‘‘ALL ITS ASSETS.—In any 

14 case’’ and all that follows through ‘‘by reason of 

15 subparagraph (A)’’ and inserting the following: 

16 ‘‘PORTION OF ASSETS USED IN PROHIBITED

17 TRANSACTION.—In any case in which a portion 

18 of an individual retirement account is treated as 

19 distributed under subparagraph (A)’’, and 

20 (B) by striking ‘‘all assets in the account’’ 

21 and inserting ‘‘such portion’’. 

22 (2) Section 4975(c)(3) of such Code is amended 

23 by striking ‘‘the account ceases’’ and all that follows 

24 and inserting the following: ‘‘the portion of the ac25 count used in the transaction is treated as distributed 

26 under paragraph (2)(A) or (4) of section 408(e).’’. 


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

2 section shall apply to taxable years beginning after the date 

3 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 ‘‘employee 

14 (other than an employee to whom clause (i)(II) does 

15 not apply by reason of clause (ii))’’. 

16 (2) AMENDMENT RELATING TO SECTION 116.— 

17 Section 4973(b) of the Internal Revenue Code of 1986 

18 is amended by adding at the end of the flush matter 

19 the following: ‘‘Such term shall not include any des20 ignated nondeductible contribution (as defined in sub21 paragraph (C) of section 408(o)(2)) which does not 

22 exceed the nondeductible limit under subparagraph 

23 (B) thereof by reason of an election under section 

24 408(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 amend5 ment 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 retire14 ment 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 retirement 

21 plan shall not fail to meet the requirements of section 

22 411(d)(6) of the Internal Revenue Code of 1986 and 

23 section 204(g) of the Employee Retirement Income Se24 curity Act of 1974 by reason of such amendment. 

25 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 


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1 (1) IN GENERAL.—This section shall apply to 

2 any amendment to any retirement plan or annuity 

3 contract which is made— 

4 (A) pursuant to any amendment made by 

5 this Act or pursuant to any regulation issued by 

6 the Secretary of the Treasury or the Secretary of 

7 Labor (or a delegate of either such Secretary) 

8 under this Act; and 

9 (B) on or before the last day of the first 

10 plan year beginning on or after January 1, 

11 2023, or such later date as the Secretary of the 

12 Treasury may prescribe. 

13 In the case of a governmental plan (as defined in sec14 tion 414(d) of the Internal Revenue Code of 1986), 

15 this paragraph shall be applied by substituting 

16 ‘‘2025’’ for ‘‘2023’’. 

17 (2) CONDITIONS.—This section shall not apply to 

18 any amendment unless— 

19 (A) during the period— 

20 (i) beginning on the date the legislative 

21 or regulatory amendment described in para22 graph (1)(A) takes effect (or in the case of 

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1 ment, the effective date specified by the 

2 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 RELAT13 ING TO PLAN AMENDMENTS.— 

14 (1) SECURE ACT.—Section 601(b)(1) of the Set15 ting Every Community Up for Retirement Enhance16 ment 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 1, 

2 2022’’ in clause (ii) and inserting ‘‘January 1, 

3 2023’’. 

4 (B) TEMPORARY WAIVER OF REQUIRED MIN5 IMUM DISTRIBUTIONS RULES FOR CERTAIN RE6 TIREMENT 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’ for 

13 ‘2022’.’’ in the flush matter at the end and 

14 inserting ‘‘substituting ‘2025’ for ‘2023’.’’. 

15 (C) TAXPAYER CERTAINTY AND DISASTER

16 TAX RELIEF ACT OF 2020.—Section 302(d)(2)(A) 

17 of the Taxpayer Certainty and Disaster Tax Re18 lief Act of 2020 is amended by striking ‘‘Janu19 ary 1, 2022’’ in clause (ii) and inserting ‘‘Janu20 ary 1, 2023’’. 

21 TITLE VI—REVENUE 

22 PROVISIONS 

23 SEC. 601. SIMPLE AND SEP ROTH IRAS. 

24 (a) IN GENERAL.—Section 408A of the Internal Rev25 enue Code of 1986 is amended by striking subsection (f). 


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1 (b) RULES RELATING TO SIMPLIFIED EMPLOYEE PEN2 SIONS.— 

3 (1) CONTRIBUTIONS.—Section 402(h)(1) of such 

4 Code is amended by striking ‘‘and’’ at the end of sub5 paragraph (A), by striking the period at the end of 

6 subparagraph (B) and inserting ‘‘, and’’, and by add7 ing at the end the following new subparagraph: 

8 ‘‘(C) in the case of any contributions pursu9 ant to a simplified employer pension which are 

10 made to an individual retirement plan des11 ignated as a Roth IRA, such contribution shall 

12 not be excludable from gross income.’’. 

13 (2) DISTRIBUTIONS.—Section 402(h)(3) of such 

14 Code is amended by inserting ‘‘, or section 408A(d) 

15 in the case of an individual retirement plan des16 ignated as a Roth IRA’’ before the period at the end. 

17 (3) ELECTION REQUIRED.—Section 408(k) of 

18 such Code is amended by redesignating paragraphs 

19 (7), (8), and (9) as paragraphs (8), (9), and (10), re20 spectively, and by inserting the after paragraph (6) 

21 the following new paragraph: 

22 ‘‘(7) ROTH CONTRIBUTION ELECTION.—An indi23 vidual retirement plan which is designated as a Roth 

24 IRA shall not be treated as a simplified employee 

25 pension under this subsection unless the employee 


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1 elects for such plan to be so treated (at such time and 

2 in such manner as the Secretary may provide).’’. 

3 (c) RULES RELATING TO SIMPLE RETIREMENT AC4 COUNTS.— 

5 (1) ELECTION REQUIRED.—Section 408(p) of 

6 such Code is amended by adding at the end the fol7 lowing new paragraph: 

8 ‘‘(11) ROTH CONTRIBUTION ELECTION.—An in9 dividual retirement plan which is designated as a 

10 Roth IRA shall not be treated as a simple retirement 

11 account under this subsection unless the employee 

12 elects for such plan to be so treated (at such time and 

13 in such manner as the Secretary may provide).’’. 

14 (2) ROLLOVERS.—Section 408A(e) of such Code 

15 is amended by adding at the end the following new 

16 paragraph: 

17 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 

18 case of any payment or distribution out of a simple 

19 retirement account (as defined in section 408(p)) with 

20 respect to which an election has been made under sec21 tion 408(p)(11) and to which 72(t)(6) applies, the 

22 term ‘qualified rollover contribution’ shall not include 

23 any payment or distribution paid into an account 

24 other than another simple retirement account (as so 

25 defined).’’. 


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1 (d) COORDINATION WITH ROTH CONTRIBUTION LIMI2 TATION.—Section 408A(c) of such Code is amended by add3 ing at the end the following new paragraph: 

4 ‘‘(7) COORDINATION WITH LIMITATION FOR SIM5 PLE RETIREMENT PLANS AND SEPS.—In the case of 

6 an individual on whose behalf contributions are made 

7 to a simple retirement account or a simplified em8 ployee pension, the amount described in paragraph 

9 (2)(A) shall be increased by an amount equal to the 

10 contributions made on the individual’s behalf to such 

11 account or pension for the taxable year, but only to 

12 the extent such contributions— 

13 ‘‘(A) in the case of a simplified retirement 

14 account— 

15 ‘‘(i) do not exceed the sum of the dollar 

16 amount in effect for the taxable year under 

17 section 408(p)(2)(A)(ii) and the employer 

18 contribution required under subparagraph 

19 (A)(iii) or (B)(i), as the case may be, of sec20 tion 408(p)(2), and 

21 ‘‘(ii) do not cause the elective deferrals 

22 (as defined in section 402(g)(3)) on behalf 

23 of such individual to exceed the limitation 

24 under section 402(g)(1) (taking into account 


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1 any additional elective deferrals permitted 

2 under section 414(v)), or 

3 ‘‘(B) in the case of a simplified employee 

4 pension, do not exceed the limitation in effect 

5 under section 408(j).’’. 

6 (e) CONFORMING AMENDMENT.—Section 

7 408A(d)(2)(B) of such Code is amended by inserting ‘‘, or 

8 employer in the case of a simple retirement account (as de9 fined in section 408(p)) or simplified employee pension (as 

10 defined in section 408(k)),’’ after ‘‘individual’s spouse’’. 

11 (f) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to taxable years beginning after Decem13 ber 31, 2021. 

14 SEC. 602. HARDSHIP WITHDRAWAL RULES FOR 403(b) 

15 PLANS. 

16 (a) IN GENERAL.—Section 403(b) of the Internal Rev17 enue Code of 1986, as amended by the preceding provisions 

18 of this Act, is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(16) SPECIAL RULES RELATING TO HARDSHIP

21 WITHDRAWALS.—For purposes of paragraphs (7) and 

22 (11)— 

23 ‘‘(A) AMOUNTS WHICH MAY BE WITH24 DRAWN.—The following amounts may be distrib25 uted upon hardship of the employee: 


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1 ‘‘(i) Contributions made pursuant to a 

2 salary reduction agreement (within the 

3 meaning of section 3121(a)(5)(D)). 

4 ‘‘(ii) Qualified nonelective contribu5 tions (as defined in section 401(m)(4)(C)). 

6 ‘‘(iii) Qualified matching contributions 

7 described in section 401(k)(3)(D)(ii)(I). 

8 ‘‘(iv) Earnings on any contributions 

9 described in clause (i), (ii), or (iii). 

10 ‘‘(B) NO REQUIREMENT TO TAKE AVAIL11 ABLE LOAN.—A distribution shall not be treated 

12 as failing to be made upon the hardship of an 

13 employee solely because the employee does not 

14 take any available loan under the plan.’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Section 403(b)(7)(A)(i)(V) of such Code is 

17 amended by striking ‘‘in the case of contributions 

18 made pursuant to a salary reduction agreement 

19 (within the meaning of section 3121(a)(5)(D))’’ and 

20 inserting ‘‘subject to the provisions of paragraph 

21 (16)’’. 

22 (2) Paragraph (11) of section 403(b) of such 

23 Code, as amended by the preceding provisions of this 

24 Act, is amended— 


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1 (A) by striking ‘‘in’’ in subparagraph (B) 

2 and inserting ‘‘subject to the provisions of para3 graph (16), in’’, and 

4 (B) by striking the penultimate sentence. 

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

6 section shall apply to plan years beginning after December 

7 31, 2021. 

8 SEC. 603. ELECTIVE DEFERRALS GENERALLY LIMITED TO 

9 REGULAR CONTRIBUTION LIMIT. 

10 (a) APPLICABLE EMPLOYER PLANS.—Section 

11 414(v)(1) of the Internal Revenue Code of 1986 is amended 

12 by adding at the end the following: ‘‘Except in the case of 

13 an applicable employer plan described in paragraph 

14 (6)(iv), the preceding sentence shall only apply if contribu15 tions are designated Roth contributions (as defined in sec16 tion 402A(c)(1)).’’. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) Section 402(g)(1) of such Code is amended by 

19 striking subparagraph (C). 

20 (2) Section 457(e)(18)(A)(ii) of such Code is 

21 amended by inserting ‘‘the lesser of any designated 

22 Roth contributions made by the participant to the 

23 plan or’’ before ‘‘the applicable dollar amount’’. 


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

2 section shall apply to taxable years beginning after Decem3 ber 31, 2021. 

4 SEC. 604. OPTIONAL TREATMENT OF EMPLOYER MATCHING 

5 CONTRIBUTIONS AS ROTH CONTRIBUTIONS. 

6 (a) IN GENERAL.—Section 402A(a) of the Internal 

7 Revenue Code of 1986 is amended by redesignating para8 graph (2) as paragraph (3), by striking ‘‘and’’ at the end 

9 of paragraph (1), and by inserting after paragraph (1) the 

10 following new paragraph: 

11 ‘‘(2) any designated Roth contribution which is 

12 made by the employer to the program on the employ13 ee’s behalf, and on account of the employee’s contribu14 tion or elective deferral, shall be treated as a match15 ing contribution for purposes of this chapter, except 

16 that such contribution shall not be excludable from 

17 gross income, and’’. 

18 (b) MATCHING INCLUDED IN QUALIFIED ROTH CON19 TRIBUTION PROGRAM.—Section 402A(b)(1) of such Code is 

20 amended— 

21 (1) by inserting ‘‘, or to have made on the em22 ployee’s behalf,’’ after ‘‘elect to make’’, and 

23 (2) by inserting ‘‘, or of matching contributions 

24 which may otherwise be made on the employee’s be25 half,’’ after ‘‘otherwise eligible to make’’. 


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1 (c) DESIGNATED ROTH MATCHING CONTRIBUTIONS.— 

2 Section 402A(c)(1) of such Code is amended by inserting 

3 ‘‘or matching contribution’’ after ‘‘elective deferral’’. 

4 (d) MATCHING CONTRIBUTION DEFINED.—Section 

5 402A(e) of such Code is amended by adding at the end the 

6 following: 

7 ‘‘(3) MATCHING CONTRIBUTION.—The term 

8 ‘matching contribution’ means— 

9 ‘‘(A) any matching contribution described 

10 in section 401(m)(4)(A), and 

11 ‘‘(B) any contribution to an eligible de12 ferred compensation plan (as defined in section 

13 457(b)) by an eligible employer described in sec14 tion 457(e)(1)(A) on behalf of an employee and 

15 on account of such employee’s elective deferral 

16 under such plan.’’. 

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

18 section shall apply to contributions made after the date of 

19 the enactment of this Act. 


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Union Calendar No. 210 

117TH CONGRESS 

2D SESSION H. R. 2954 

[Report No. 117–283, Part I] 

A BILL 

To increase retirement savings, simplify and clarify 

retirement plan rules, and for other purposes. 

MARCH 29, 2022 

Reported from the Committee on Ways and Means with 

an amendment 

MARCH 29, 2022 

Committees on Financial Services and Education and 

to be printed Whole House on the State of the Union and ordered Labor discharged; committed to the Committee of the 


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