117TH CONGRESS 

2D SESSION H. R. 2954 

AN ACT 

To increase retirement savings, simplify and clarify 

retirement plan rules, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Securing a Strong Retirement Act of 2022’’. 

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

5 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 Saver’s Credit. 

Sec. 105. Enhancement of 403(b) plans. 

Sec. 106. Increase in age for required beginning date for mandatory distributions. 

Sec. 107. Indexing IRA catch-up limit. 

Sec. 108. Higher catch-up limit to apply at age 62, 63, and 64. 

Sec. 109. Pooled employer plans modification. 

Sec. 110. Multiple employer 403(b) plans. 

Sec. 111. Treatment of student loan payments as elective deferrals for purposes 

of matching contributions. 

Sec. 112. Application of credit for small employer pension plan startup costs to 

employers which join an existing plan. 

Sec. 113. Military spouse retirement plan eligibility credit for small employers. 

Sec. 114. Small immediate financial incentives for contributing to a plan. 

Sec. 115. Safe harbor for corrections of employee elective deferral failures. 

Sec. 116. Improving coverage for part-time workers. 

Sec. 117. Deferral of tax for certain sales of employer stock to employee stock 

ownership plan sponsored by S corporation. 

Sec. 118. Certain securities treated as publicly traded in case of employee stock 

ownership plans. 

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 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. Updating dollar limit for mandatory distributions. 

Sec. 308. Expansion of Employee Plans Compliance Resolution System. 

Sec. 309. Eliminate the ‘‘first day of the month’’ requirement for governmental 

section 457(b) plans. 

Sec. 310. One-time election for qualified charitable distribution to split-interest 

entity; increase in qualified charitable distribution limitation. 

Sec. 311. Distributions to firefighters. 

Sec. 312. Exclusion of certain disability-related first responder retirement payments. 

Sec. 313. Individual retirement plan statute of limitations for excise tax on excess contributions and certain accumulations. 

Sec. 314. Requirement to provide paper statements in certain cases. 

Sec. 315. Separate application of top heavy rules to defined contribution plans 

covering excludible employees. 

Sec. 316. Repayment of qualified birth or adoption distribution limited to 3 

years. 

Sec. 317. Employer may rely on employee certifying that deemed hardship distribution conditions are met. 

Sec. 318. Penalty-free withdrawals from retirement plans for individuals in case 

of domestic abuse. 

Sec. 319. Reform of family attribution rules. 

Sec. 320. Amendments to increase benefit accruals under plan for previous plan 

year allowed until employer tax return due date. 

Sec. 321. Retroactive first year elective deferrals for sole proprietors. 

Sec. 322. Limiting cessation of IRA treatment to portion of account involved 

in a prohibited transaction. 

Sec. 323. Review of pension risk transfer interpretive bulletin. 

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. 

TITLE VII—BUDGETARY EFFECTS 

Sec. 701. Determination of budgetary effects. 
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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 de22 scribed in such section unless such agreement meets 

23 the automatic enrollment requirements of subsection 

24 (b). 

25 ‘‘(b) AUTOMATIC ENROLLMENT REQUIREMENTS.— 
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1 ‘‘(1) IN GENERAL.—An arrangement or agree2 ment meets the requirements of this subsection if 

3 such arrangement or agreement is an eligible auto4 matic contribution arrangement (as defined in sec5 tion 414(w)(3)) which meets the requirements of 

6 paragraphs (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 require16 ments 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 eligible auto13 matic contribution arrangement (other than an 

14 arrangement that meets the requirements of 

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

16 plan years ending before January 1, 2025, sub17 paragraph (A)(ii) shall be applied by sub18 stituting ‘10 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 

24 in accordance with the requirements of section 
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1 2550.404c-5 of title 29, Code of Federal Regulations 

2 (or any successor 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 ARRANGE8 MENTS ESTABLISHED BEFORE ENACTMENT OF SEC9 TION.— 

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

11 not apply to— 

12 ‘‘(i) any qualified cash or deferred ar13 rangement established before the date of 

14 the enactment of this section, or 

15 ‘‘(ii) any annuity contract purchased 

16 under a plan established before the date of 

17 the enactment of this section. 

18 ‘‘(B) POST-ENACTMENT ADOPTION OF

19 MULTIPLE EMPLOYER PLAN.—Subparagraph 

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

21 adopting after such date of enactment a plan 

22 maintained by more than one employer, and 

23 subsection (a) shall apply with respect to such 

24 employer as if such plan were a single plan. 
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1 ‘‘(3) EXCEPTION FOR GOVERNMENTAL AND

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

3 any governmental plan (within the meaning of sec4 tion 414(d)) or any church plan (within the meaning 

5 of section 414(e)). 

6 ‘‘(4) EXCEPTION FOR NEW AND SMALL BUSI7 NESSES.— 

8 ‘‘(A) NEW BUSINESS.—Subsection (a) 

9 shall not apply to any qualified cash or deferred 

10 arrangement, or any annuity contract pur11 chased under a plan, while the employer main12 taining such plan (and any predecessor em13 ployer) has been in existence for less than 3 

14 years. 

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

16 shall not apply to any qualified cash or deferred 

17 arrangement, or any annuity contract pur18 chased under a plan, earlier than the date that 

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

20 with respect to which the employer maintaining 

21 the plan normally employed more than 10 em22 ployees. 

23 ‘‘(C) TREATMENT OF MULTIPLE EM24 PLOYER PLANS.—In the case of a plan main25 tained by more than 1 employer, subparagraphs 
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1 (A) and (B) shall be applied separately with re2 spect to each such employer, and all such em3 ployers to which subsection (a) applies (after 

4 the application of this paragraph) shall be 

5 treated as maintaining a separate plan for pur6 poses of this section.’’. 

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

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

9 such Code is amended by inserting after the item relating 

10 to section 414 the following new item: 

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

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

12 this section shall apply to plan years beginning after De13 cember 31, 2023. 

14 SEC. 102. MODIFICATION OF CREDIT FOR SMALL EM15 PLOYER PENSION PLAN STARTUP COSTS. 

16 (a) INCREASE IN CREDIT PERCENTAGE FOR SMALL17 ER EMPLOYERS.—Section 45E(e) of the Internal Revenue 

18 Code of 1986 is amended by adding at the end the fol19 lowing new paragraph: 

20 ‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL

21 EMPLOYERS.—In the case of an employer which 

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

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

24 ‘50 employees’ for ‘100 employees’, subsection (a) 
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1 shall be applied by substituting ‘100 percent’ for ‘50 

2 percent’.’’. 

3 (b) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU4 TIONS BY CERTAIN SMALL EMPLOYERS.—Section 45E of 

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

6 adding at the end the following new subsection: 

7 ‘‘(f) ADDITIONAL CREDIT FOR EMPLOYER CON8 TRIBUTIONS BY CERTAIN ELIGIBLE EMPLOYERS.— 

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

10 employer, the credit allowed for the taxable year 

11 under subsection (a) (determined without regard to 

12 this subsection) shall be increased by an amount 

13 equal to the applicable percentage of employer con14 tributions (other than any elective deferrals (as de15 fined in section 402(g)(3)) by the employer to an eli16 gible employer plan (other than a defined benefit 

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

18 ‘‘(2) LIMITATIONS.— 

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

20 determined under paragraph (1) (before the ap21 plication of subparagraph (B)) with respect to 

22 any employee of the employer shall not exceed 

23 $1,000. 

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

25 any eligible employer which had for the pre-
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1 ceding taxable year more than 50 employees, 

2 the amount determined under paragraph (1) 

3 (without regard to this subparagraph) shall be 

4 reduced by an amount equal to the product 

5 of— 

6 ‘‘(i) the amount otherwise so deter7 mined under paragraph (1), multiplied by 

8 ‘‘(ii) a percentage equal to 2 percent9 age points for each employee of the em10 ployer for the preceding taxable year in ex11 cess of 50 employees. 

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

13 of this section, the applicable percentage for the tax14 able year during which the eligible employer plan is 

15 established with respect to the eligible employer shall 

16 be 100 percent, and for taxable years thereafter 

17 shall be determined under the following table: 

‘‘In the case of the following 

taxable year beginning 

after the taxable year 

during which plan is established with respect to 

the eligible employer: 

The applicable percentage shall 

be: 

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

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

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

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

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

18 ‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 

19 NUMBER OF EMPLOYEES.—For purposes of this sub20 section, whether an employer is an eligible employer 
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1 and the number of employees of an employer shall 

2 be determined under the rules of subsection (c), ex3 cept that paragraph (2) thereof shall only apply to 

4 the taxable year during which the eligible employer 

5 plan to which this section applies is established with 

6 respect to the eligible employer.’’. 

7 (c) DISALLOWANCE OF DEDUCTION.—Section 

8 45E(e)(2) of such Code is amended to read as follows: 

9 ‘‘(2) DISALLOWANCE OF DEDUCTION.—No de10 duction shall be allowed— 

11 ‘‘(A) for that portion of the qualified start12 up costs paid or incurred for the taxable year 

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

14 credit determined under subsection (a) as is 

15 properly allocable to such costs, and 

16 ‘‘(B) for that portion of the employer con17 tributions by the employer for the taxable year 

18 which is equal to so much of the credit increase 

19 determined under subsection (f) as is properly 

20 allocable to such contributions.’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2022. 
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1 SEC. 103. PROMOTION OF SAVER’S CREDIT. 

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

3 shall take such steps as the Secretary determines are nec4 essary and appropriate to increase public awareness of the 

5 credit provided under section 25B of the Internal Revenue 

6 Code of 1986. 

7 (b) REPORT TO CONGRESS.— 

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

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

10 shall provide a report to Congress to summarize the 

11 anticipated promotion efforts of the Treasury under 

12 subsection (a). 

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

14 (A) a description of plans for— 

15 (i) the development and distribution 

16 of digital and print materials, including the 

17 distribution of such materials to States for 

18 participants in State facilitated retirement 

19 savings programs, and 

20 (ii) the translation of such materials 

21 into the 10 most commonly spoken lan22 guages in the United States after English 

23 (as determined by reference to the most re24 cent American Community Survey of the 

25 Bureau of the Census), and 
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1 (B) such other information as the Sec2 retary determines is necessary 

3 SEC. 104. ENHANCEMENT OF SAVER’S CREDIT. 

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

5 the Internal Revenue Code of 1986 is amended by striking 

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

7 (b) ADJUSTED GROSS INCOME PHASEOUTS.—Section 

8 25B(b) of such Code is amended to read as follows: 

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

10 ‘‘(1) IN GENERAL.—The amount of credit al11 lowable under subsection (a) (determined without re12 gard to this subsection) shall be reduced (but not 

13 below zero) by an amount which bears the same 

14 ratio to the credit otherwise so allowable as— 

15 ‘‘(A) the excess (if any) of— 

16 ‘‘(i) adjusted gross income of the tax17 payer, over 

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

19 ‘‘(B) the phaseout amount. 

20 ‘‘(2) THRESHOLD AMOUNT.—The term ‘thresh21 old amount’ means— 

22 ‘‘(A) in the case of a joint return or a sur23 viving spouse (as defined in section 2(a)), 

24 $48,000, 
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1 ‘‘(B) in the case of a head of household, 75 

2 percent of the amount in effect for the taxable 

3 year under subparagraph (A), and 

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

5 percent of the amount in effect for the taxable 

6 year under subparagraph (A). 

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

8 amount’ means— 

9 ‘‘(A) in the case of a joint return or a sur10 viving spouse (as defined in 2(a)), $35,000, 

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

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

13 amount in effect for the taxable year under sub14 paragraph (A), and 

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

16 percent of the amount in effect for the taxable 

17 year under subparagraph (A). 

18 ‘‘(4) INFLATION ADJUSTMENT.— 

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

20 taxable year beginning in a calendar year after 

21 2026, the $48,000 dollar amount in paragraph 

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

23 each be increased by an amount equal to— 

24 ‘‘(i) such dollar amount, multiplied by 
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1 ‘‘(ii) the cost-of-living adjustment de2 termined under section 1(f)(3) for the cal3 endar year in which the taxable year be4 gins, determined by substituting ‘calendar 

5 year 2022’ for ‘calendar year 2016’ in sub6 paragraph (A)(ii) thereof. 

7 ‘‘(B) ROUNDING.—Any increase deter8 mined under subparagraph (A) that is not a 

9 multiple of $500 shall be rounded to the near10 est multiple of $500.’’. 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2026. 

14 SEC. 105. ENHANCEMENT OF 403(b) PLANS. 

15 (a) IN GENERAL.—Section 403(b)(7)(A) of the Inter16 nal Revenue Code of 1986 is amended by striking ‘‘if the 

17 amounts are to be invested in regulated investment com18 pany stock to be held in that custodial account’’ and in19 serting ‘‘if the amounts are to be held in that custodial 

20 account and invested in regulated investment company 

21 stock or a group trust intended to satisfy the requirements 

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

23 any successor guidance)’’. 

24 (b) CONFORMING AMENDMENT.—The heading of 

25 paragraph (7) of section 403(b) of such Code is amended 
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1 by striking ‘‘FOR REGULATED INVESTMENT COMPANY

2 STOCK’’. 

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

4 this section shall apply to amounts invested after Decem5 ber 31, 2022. 

6 SEC. 106. INCREASE IN AGE FOR REQUIRED BEGINNING 

7 DATE FOR MANDATORY DISTRIBUTIONS. 

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

9 Internal Revenue Code of 1986 is amended by striking 

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

11 (b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR

12 OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec13 tion 401(a)(9) of such Code are each amended by striking 

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

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

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

17 clause: 

18 ‘‘(v) APPLICABLE AGE.— 

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

20 who attains age 72 after December 

21 31, 2022, and age 73 before January 

22 1, 2030, the applicable age is 73. 

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

24 who attains age 73 after December 
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1 31, 2029, and age 74 before January 

2 1, 2033, the applicable age is 74. 

3 ‘‘(III) In the case of an indi4 vidual who attains age 74 after De5 cember 31, 2032, the applicable age is 

6 75.’’. 

7 (d) CONFORMING AMENDMENTS.—The last sentence 

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

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

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

11 which such taxable year begins)’’. 

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

13 this section shall apply to distributions required to be 

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

15 who attain age 72 after such date. 

16 SEC. 107. INDEXING IRA CATCH-UP LIMIT. 

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

18 219(b)(5) of the Internal Revenue Code of 1986 is amend19 ed by adding at the end the following new clause: 

20 ‘‘(iii) INDEXING OF CATCH-UP LIMITA21 TION.—In the case of any taxable year be22 ginning in a calendar year after 2023, the 

23 $1,000 amount under subparagraph (B)(ii) 

24 shall be increased by an amount equal to— 
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1 ‘‘(I) such dollar amount, multi2 plied by 

3 ‘‘(II) the cost-of-living adjust4 ment determined under section 1(f)(3) 

5 for the calendar year in which the tax6 able year begins, determined by sub7 stituting ‘calendar year 2022’ for ‘cal8 endar year 2016’ in subparagraph 

9 (A)(ii) thereof. 

10 If any amount after adjustment under the 

11 preceding sentence is not a multiple of 

12 $100, such amount shall be rounded to the 

13 next lower multiple of $100.’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2023. 

17 SEC. 108. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, 

18 AND 64. 

19 (a) IN GENERAL.— 

20 (1) PLANS OTHER THAN SIMPLE PLANS.—Sec21 tion 414(v)(2)(B)(i) of the Internal Revenue Code of 

22 1986 is amended by inserting the following before 

23 the period: ‘‘($10,000, in the case of an eligible par24 ticipant who would attain age 62, but not age 65, 

25 before the close of the taxable year)’’. 
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1 (2) SIMPLE PLANS.—Section 414(v)(2)(B)(ii) of 

2 such Code is amended by inserting the following be3 fore the period: ‘‘($5,000, in the case of an eligible 

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

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

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

7 (C) of section 414(v)(2) of such Code is amended by add8 ing at the end the following: ‘‘In the case of a year begin9 ning after December 31, 2023, the Secretary shall adjust 

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

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

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

13 manner as adjustments under the preceding sentence; ex14 cept that the base period taken into account shall be the 

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

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2023. 

19 SEC. 109. POOLED EMPLOYER PLANS MODIFICATION. 

20 (a) IN GENERAL.—Section 3(43)(B)(ii) of the Em21 ployee Retirement Income Security Act of 1974 (29 

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

23 ‘‘(ii) designate a named fiduciary 

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

25 responsible for collecting contributions to 
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1 the plan and require such fiduciary to im2 plement written contribution collection pro3 cedures that are reasonable, diligent, and 

4 systematic;’’. 

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

6 this section shall apply to plan years beginning after De7 cember 31, 2022. 

8 SEC. 110. MULTIPLE EMPLOYER 403(b) PLANS. 

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

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

11 the following new paragraph: 

12 ‘‘(15) MULTIPLE EMPLOYER PLANS.— 

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

14 a church plan, this subsection shall not be 

15 treated as failing to apply to an annuity con16 tract solely by reason of such contract being 

17 purchased under a plan maintained by more 

18 than 1 employer. 

19 ‘‘(B) TREATMENT OF EMPLOYERS FAILING

20 TO MEET REQUIREMENTS OF PLAN.— 

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

22 plan maintained by more than 1 employer, 

23 this subsection shall not be treated as fail24 ing to apply to an annuity contract held 

25 under such plan merely because of one or 
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1 more employers failing to meet the require2 ments of this subsection if such plan satis3 fies rules similar to the rules of section 

4 413(e)(2) with respect to any such em5 ployer failure. 

6 ‘‘(ii) ADDITIONAL REQUIREMENTS IN

7 CASE OF NON-GOVERNMENTAL PLANS.—A 

8 plan shall not be treated as meeting the re9 quirements of this subparagraph unless the 

10 plan satisfies rules similar to the rules of 

11 subparagraph (A) or (B) of section 

12 413(e)(1), except in the case of a multiple 

13 employer plan maintained solely by any of 

14 the following: A State, a political subdivi15 sion of a State, or an agency or instrumen16 tality of any one or more of the fore17 going.’’. 

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

19 EMPLOYER PLAN.—Section 6057 of such Code is amend20 ed by redesignating subsection (g) as subsection (h) and 

21 by inserting after subsection (f) the following new sub22 section: 

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

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

25 this section applies and to which section 403(b) applies 
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1 by reason of the plan under which such contracts are pur2 chased meeting the requirements of paragraph (15) there3 of, such plan shall be treated as a single plan for purposes 

4 of this section.’’. 

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

6 MULTIPLE EMPLOYER PLAN.—Section 6058 of such Code 

7 is amended by redesignating subsection (f) as subsection 

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

9 subsection: 

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

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

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

13 by reason of the plan under which such contracts are pur14 chased meeting the requirements of paragraph (15) there15 of, such plan shall be treated as a single plan for purposes 

16 of this section.’’. 

17 (d) AMENDMENTS TO EMPLOYEE RETIREMENT IN18 COME SECURITY ACT OF 1974.— 

19 (1) IN GENERAL.—Section 3(43)(A) of the Em20 ployee Retirement Income Security Act of 1974 is 

21 amended— 

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

23 501(a) of such Code or’’ and inserting ‘‘section 

24 501(a) of such Code, a plan that consists of 
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1 contracts described in section 403(b) of such 

2 Code, or’’; and 

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

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

5 term shall include any program (other than a 

6 governmental plan) maintained for the benefit 

7 of the employees of more than 1 employer that 

8 consists of contracts described in section 403(b) 

9 of such Code and that meets the requirements 

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

11 of such Code.’’. 

12 (2) CONFORMING AMENDMENTS.—Sections 

13 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee 

14 Retirement Income Security Act of 1974 are each 

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

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

17 plan that consists of contracts described in section 

18 403(b) of such Code, or’’. 

19 (e) REGULATIONS RELATING TO EMPLOYER FAIL20 URE TO MEET MULTIPLE EMPLOYER PLAN REQUIRE21 MENTS.—The Secretary of the Treasury (or the Sec22 retary’s delegate) shall prescribe such regulations as may 

23 be necessary to clarify, in the case of plans to which sec24 tion 403(b)(15) of the Internal Revenue Code of 1986 ap25 plies, the treatment of an employer departing such plan 
25 

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1 in connection with such employer’s failure to meet mul2 tiple employer plan requirements. 

3 (f) MODIFICATION OF MODEL PLAN LANGUAGE, 

4 ETC.— 

5 (1) PLAN NOTIFICATIONS.—The Secretary of 

6 the Treasury (or the Secretary’s delegate) shall mod7 ify the model plan language published under section 

8 413(e)(5) of the Internal Revenue Code of 1986 to 

9 include language that notifies participating employ10 ers described in section 501(c)(3), and which are ex11 empt from tax under section 501(a), that the plan 

12 is subject to the Employee Retirement Income Secu13 rity Act of 1974 and that such employer is a plan 

14 sponsor with respect to its employees participating 

15 in the multiple employer plan and, as such, has cer16 tain fiduciary duties with respect to the plan and to 

17 its employees. 

18 (2) MODEL PLANS FOR MULTIPLE EMPLOYER

19 403(b) NON-GOVERNMENTAL PLANS.—For plans to 

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

21 Code of 1986 applies (other than a plan maintained 

22 for its employees by a State, a political subdivision 

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

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

25 Treasury shall publish model plan language similar 
26 

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1 to model plan language published under section 

2 413(e)(5) of such Code. 

3 (3) EDUCATIONAL OUTREACH TO EMPLOYERS

4 EXEMPT FROM TAX.—The Secretary of the Treasury 

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

6 and outreach to increase awareness to employers de7 scribed in section 501(c)(3) of the Internal Revenue 

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

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

10 plans are subject to the Employee Retirement In11 come Security Act of 1974 and that such employer 

12 is a plan sponsor with respect to its employees par13 ticipating in the multiple employer plan and, as 

14 such, has certain fiduciary duties with respect to the 

15 plan and to its employees. 

16 (g) NO INFERENCE WITH RESPECT TO CHURCH

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

18 the Internal Revenue Code of 1986 to an annuity contract 

19 purchased under a church plan (as defined in section 

20 414(e) of such Code) maintained by more than 1 em21 ployer, or to any application of rules similar to section 

22 413(e) of such Code to such a plan, no inference shall 

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

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

25 (h) EFFECTIVE DATE.— 
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1 (1) IN GENERAL.—The amendments made by 

2 this section shall apply to plan years beginning after 

3 December 31, 2022. 

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

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

7 the Treasury or the Secretary’s delegate (determined 

8 without regard to such amendment) to provide for 

9 the proper treatment of a failure to meet any re10 quirement applicable under the Internal Revenue 

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

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

13 403(b)(15) of the Internal Revenue Code of 1986 

14 applies. 

15 SEC. 111. TREATMENT OF STUDENT LOAN PAYMENTS AS 

16 ELECTIVE DEFERRALS FOR PURPOSES OF 

17 MATCHING CONTRIBUTIONS. 

18 (a) IN GENERAL.—Section 401(m)(4)(A) of the In19 ternal Revenue Code of 1986 is amended by striking 

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

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

22 at the end the following new clause: 

23 ‘‘(iii) subject to the requirements of 

24 paragraph (13), any employer contribution 

25 made to a defined contribution plan on be-
28 

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1 half of an employee on account of a quali2 fied student loan payment.’’. 

3 (b) QUALIFIED STUDENT LOAN PAYMENT.—Section 

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

5 the following new subparagraph: 

6 ‘‘(D) QUALIFIED STUDENT LOAN PAY7 MENT.—The term ‘qualified student loan pay8 ment’ means a payment made by an employee 

9 in repayment of a qualified education loan (as 

10 defined section 221(d)(1)) incurred by the em11 ployee to pay qualified higher education ex12 penses, but only— 

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

14 the aggregate for the year do not exceed 

15 an amount equal to— 

16 ‘‘(I) the limitation applicable 

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

18 if lesser, the employee’s compensation 

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

20 the year), reduced by 

21 ‘‘(II) the elective deferrals made 

22 by the employee for such year, and 

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

24 employer making the matching contribu-
29 

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1 tion under this paragraph that such pay2 ment has been made on such loan. 

3 For purposes of this subparagraph, the term 

4 ‘qualified higher education expenses’ means the 

5 cost of attendance (as defined in section 472 of 

6 the Higher Education Act of 1965, as in effect 

7 on the day before the date of the enactment of 

8 the Taxpayer Relief Act of 1997) at an eligible 

9 educational institution (as defined in section 

10 221(d)(2)).’’. 

11 (c) MATCHING CONTRIBUTIONS FOR QUALIFIED

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

13 Code is amended by redesignating paragraph (13) as para14 graph (14), and by inserting after paragraph (12) the fol15 lowing new paragraph: 

16 ‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI17 FIED STUDENT LOAN PAYMENTS.— 

18 ‘‘(A) IN GENERAL.—For purposes of para19 graph (4)(A)(iii), an employer contribution 

20 made to a defined contribution plan on account 

21 of a qualified student loan payment shall be 

22 treated as a matching contribution for purposes 

23 of this title if— 

24 ‘‘(i) the plan provides matching con25 tributions on account of elective deferrals 
30 

•HR 2954 EH

1 at the same rate as contributions on ac2 count of qualified student loan payments, 

3 ‘‘(ii) the plan provides matching con4 tributions on account of qualified student 

5 loan payments only on behalf of employees 

6 otherwise eligible to receive matching con7 tributions on account of elective deferrals, 

8 ‘‘(iii) under the plan, all employees el9 igible to receive matching contributions on 

10 account of elective deferrals are eligible to 

11 receive matching contributions on account 

12 of qualified student loan payments, and 

13 ‘‘(iv) the plan provides that matching 

14 contributions on account of qualified stu15 dent loan payments vest in the same man16 ner as matching contributions on account 

17 of elective deferrals. 

18 ‘‘(B) TREATMENT FOR PURPOSES OF NON19 DISCRIMINATION RULES, ETC.— 

20 ‘‘(i) NONDISCRIMINATION RULES.— 

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

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

23 matching contributions described in para24 graph (4)(A)(iii) shall not fail to be treated 

25 as available to an employee solely because 
31 

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1 such employee does not have debt incurred 

2 under a qualified education loan (as de3 fined in section 221(d)(1)). 

4 ‘‘(ii) STUDENT LOAN PAYMENTS NOT

5 TREATED AS PLAN CONTRIBUTION.—Ex6 cept as provided in clause (iii), a qualified 

7 student loan payment shall not be treated 

8 as a contribution to a plan under this title. 

9 ‘‘(iii) MATCHING CONTRIBUTION

10 RULES.—Solely for purposes of meeting 

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

12 (12) of this subsection, or paragraph 

13 (11)(B)(i)(II), (12)(B), or (13)(D) of sub14 section (k), a plan may treat a qualified 

15 student loan payment as an elective defer16 ral or an elective contribution, whichever is 

17 applicable. 

18 ‘‘(iv) ACTUAL DEFERRAL PERCENT19 AGE TESTING.—In determining whether a 

20 plan meets the requirements of subsection 

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

22 apply the requirements of such subsection 

23 separately with respect to all employees 

24 who receive matching contributions de-
32 

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1 scribed in paragraph (4)(A)(iii) for the 

2 plan year. 

3 ‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE

4 CERTIFICATION.—The employer may rely on an 

5 employee certification of payment under para6 graph (4)(D)(ii).’’. 

7 (d) SIMPLE RETIREMENT ACCOUNTS.—Section 

8 408(p)(2) of such Code is amended by adding at the end 

9 the following new subparagraph: 

10 ‘‘(F) MATCHING CONTRIBUTIONS FOR

11 QUALIFIED STUDENT LOAN PAYMENTS.— 

12 ‘‘(i) IN GENERAL.—Subject to the 

13 rules of clause (iii), an arrangement shall 

14 not fail to be treated as meeting the re15 quirements of subparagraph (A)(iii) solely 

16 because under the arrangement, solely for 

17 purposes of such subparagraph, qualified 

18 student loan payments are treated as 

19 amounts elected by the employee under 

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

21 payments do not exceed— 

22 ‘‘(I) the applicable dollar amount 

23 under subparagraph (E) (after appli24 cation of section 414(v)) for the year 

25 (or, if lesser, the employee’s com-
33 

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1 pensation (as defined in section 

2 415(c)(3)) for the year), reduced by 

3 ‘‘(II) any other amounts elected 

4 by the employee under subparagraph 

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

6 ‘‘(ii) QUALIFIED STUDENT LOAN PAY7 MENT.—For purposes of this subpara8 graph— 

9 ‘‘(I) IN GENERAL.—The term 

10 ‘qualified student loan payment’ 

11 means a payment made by an em12 ployee in repayment of a qualified 

13 education loan (as defined in section 

14 221(d)(1)) incurred by the employee 

15 to pay qualified higher education ex16 penses, but only if the employee cer17 tifies to the employer making the 

18 matching contribution that such pay19 ment has been made on such a loan. 

20 ‘‘(II) QUALIFIED HIGHER EDU21 CATION EXPENSES.—The term ‘quali22 fied higher education expenses’ has 

23 the same meaning as when used in 

24 section 401(m)(4)(D). 
34 

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

2 shall apply to an arrangement only if, 

3 under the arrangement— 

4 ‘‘(I) matching contributions on 

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

7 employees otherwise eligible to elect 

8 contributions under subparagraph 

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

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

13 contributions on account of qualified 

14 student loan payments.’’. 

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

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

17 fact that the employer offers matching contributions on 

18 account of qualified student loan payments as described 

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

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

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

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

25 which is established and maintained by an employer which 
35 

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

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

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

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

6 of qualified student loan payments as described in section 

7 401(m)(13).’’. 

8 (g) REGULATORY AUTHORITY.—The Secretary shall 

9 prescribe regulations for purposes of implementing the 

10 amendments made by this section, including regulations— 

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

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

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

15 this section, at a different frequency than matching 

16 contributions are otherwise made under the plan, 

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

19 (2) permitting employers to establish reasonable 

20 procedures to claim matching contributions for such 

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

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

24 a claim must be made; and 
36 

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1 (3) promulgating model amendments which 

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

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

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

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

7 this section shall apply to contributions made for plan 

8 years beginning after December 31, 2022. 

9 SEC. 112. APPLICATION OF CREDIT FOR SMALL EMPLOYER 

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

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

15 employer’’. 

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

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

19 for Retirement Enhancement Act of 2019. 

20 SEC. 113. MILITARY SPOUSE RETIREMENT PLAN ELIGI21 BILITY CREDIT FOR SMALL EMPLOYERS. 

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

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

25 section: 
37 

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

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

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

5 retirement plan eligibility credit determined under this 

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

7 sum of— 

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

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

12 taxable year, plus 

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

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

16 $250. 

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

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

19 the taxable year which includes the date on which such 

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

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

24 this section— 
38 

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

2 employer’ means an eligible employer (as defined in 

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

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

5 A rule similar to the rule of section 

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

7 section. 

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

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

11 means, with respect to any employer, any individual 

12 who is married (within the meaning of section 7703 

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

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

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

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

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

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

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

21 spouse. 

22 ‘‘(2) EXCLUSION OF HIGHLY COMPENSATED

23 EMPLOYEES.—With respect to any employer, the 

24 term ‘military spouse’ shall not include any indi25 vidual if such individual is a highly compensated em-
39 

•HR 2954 EH

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

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

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

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

8 plan— 

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

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

12 on which such individual begins employment with 

13 such employer, and 

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

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

17 amount of employer contributions under such 

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

20 who is not a military spouse would be eligible 

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

23 ‘‘(B) immediately have a nonforfeitable 

24 right to the employee’s accrued benefit derived 

25 from employer contributions under such plan. 
40 

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

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

3 section 414 shall be treated as one employer for purposes 

4 of this section.’’. 

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

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

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

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

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

13 retirement plan eligibility credit determined under 

14 section 45U(a).’’. 

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

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

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

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

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

24 for subpart D of part IV of subchapter A of chapter 1 
41 

•HR 2954 EH

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

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

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 114. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 

7 CONTRIBUTING TO A PLAN. 

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

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

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

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

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

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

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

19 (c) EXEMPTION FROM PROHIBITED TRANSACTION

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

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

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

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

24 new paragraph: 
42 

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

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

5 408 of the Employee Retirement Income Security Act of 

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

7 end the following new paragraph: 

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

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

11 1986.’’. 

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

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

15 SEC. 115. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 

16 ELECTIVE DEFERRAL FAILURES. 

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

19 following new subsection: 

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

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

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

24 sections 401(a), 403(b), 408, or 457(b), as applica25 ble, solely by reason of a corrected error. 
43 

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

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

8 implementation error— 

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

10 months after the end of the plan year during 

11 which the error occurred, 

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

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

15 all similarly situated participants in a non16 discriminatory manner. 

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

19 without regard to whether the error is identified by 

20 the Secretary. 

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

23 by regulations or other guidance of general applica24 bility, specify the correction methods that are in a 
44 

•HR 2954 EH

1 manner favorable to the participant for purposes of 

2 paragraph (2)(B).’’. 

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

4 this section shall apply with respect to any errors with 

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

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

7 of this Act. 

8 SEC. 116. IMPROVING COVERAGE FOR PART-TIME WORK9 ERS. 

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

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

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

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

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

21 shall not require, as a condition of participation in 

22 the arrangement or agreement, that an employee 

23 complete a period of service with the employer (or 

24 employers) maintaining the plan extending beyond 

25 the close of the earlier of— 
45 

•HR 2954 EH

1 ‘‘(A) the period permitted under subsection 

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

4 ‘‘(B) the first 24-month period— 

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

6 month periods during each of which the 

7 employee has at least 500 hours of service; 

8 and 

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

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

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

13 of the Internal Revenue Code of 1986. 

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

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

18 paragraph (1)(B): 

19 ‘‘(i) EXCLUSIONS.—An employer may 

20 elect to exclude such employees from the 

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

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

23 of the Internal Revenue Code of 1986 and 

24 section 410(b) of such Code. 
46 

•HR 2954 EH

1 ‘‘(ii) NONDISCRIMINATION RULES.— 

2 Notwithstanding paragraph (1), section 

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

4 apply. 

5 ‘‘(iii) TIME OF PARTICIPATION.—The 

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

7 such employees. 

8 ‘‘(B) TOP-HEAVY RULES.—An employer 

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

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

12 from the application of the vesting and benefit 

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

14 section 416 of the Internal Revenue Code of 

15 1986. 

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

17 subsection, 12-month periods shall be determined in 

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

21 into account.’’ 

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

24 1053(a)) is amended by redesignating paragraph (4) as 
47 

•HR 2954 EH

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

2 following new paragraph: 

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

4 determining whether an employee who is eligible to 

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

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

9 ‘‘(A) except as provided in subparagraph 

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

12 treated as a year of service; and 

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

14 substituting ‘at least 500 hours of service’ for 

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

17 For purposes of this paragraph, 12-month periods 

18 shall be determined in the same manner as under 

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

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

21 shall not be taken into account.’’. 

22 (c) REDUCTION IN PERIOD SERVICE REQUIREMENT

23 FOR QUALIFIED CASH AND DEFERRED ARRANGE24 MENTS.—Section 401(k)(2)(D)(ii) of the Internal Revenue 
48 

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

2 ‘‘2’’. 

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

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

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

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

8 (e) EFFECTIVE DATES.— 

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

11 shall apply to plan years beginning after December 

12 31, 2022. 

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

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

15 the enactment of section 112 of the Setting Every 

16 Community Up for Retirement Enhancement Act of 

17 2019. 

18 SEC. 117. DEFERRAL OF TAX FOR CERTAIN SALES OF EM19 PLOYER STOCK TO EMPLOYEE STOCK OWN20 ERSHIP PLAN SPONSORED BY S CORPORA21 TION. 

22 (a) IN GENERAL.—Section 1042(c)(1)(A) of the In23 ternal Revenue Code of 1986 is amended by striking ‘‘do24 mestic C corporation’’ and inserting ‘‘domestic corpora25 tion’’. 
49 

•HR 2954 EH

1 (b) 10 PERCENT LIMITATION ON APPLICATION OF

2 GAIN ON SALE OF S CORPORATION STOCK.—Section 

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

4 following new subsection: 

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

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

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

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

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

12 on such sale exceeds the cost of qualified replacement 

13 property. The portion of adjusted basis that is properly 

14 allocable to the portion of the amount realized with respect 

15 to which the election is made under this subsection shall 

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

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

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

20 SEC. 118. CERTAIN SECURITIES TREATED AS PUBLICLY 

21 TRADED IN CASE OF EMPLOYEE STOCK OWN22 ERSHIP PLANS. 

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

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

25 the following new subparagraph: 
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1 ‘‘(I) ESOP RULES RELATING TO PUBLICLY

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

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

8 priced quotations by at least 4 dealers, 

9 published and made continuously available 

10 on an interdealer quotation system (as 

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

13 made the request described in section 6(j) 

14 of such Act to be treated as an alternative 

15 trading system, 

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

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

18 Act), 

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

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

22 Securities Act of 1933), a blank check 

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

24 such Act), or subject to bankruptcy pro25 ceedings, 
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1 ‘‘(iv) the security has a public float 

2 (as such term is used in section 240.12b3 2 of title 17, Code of Federal Regulations) 

4 which has a fair market value of at least 

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

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

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

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

15 2002, and 

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

17 by a foreign corporation, the security is 

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

20 Code of Federal Regulations), or is issued 

21 by a foreign corporation incorporated in 

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

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

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

5 78m or 78o(d)), 

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

8 of section 230.257 of title 17, Code of 

9 Federal Regulations, or 

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

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

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

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

17 TITLE II—PRESERVATION OF 

18 INCOME 

19 SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION 

20 BARRIERS FOR LIFE ANNUITIES. 

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

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

23 the following new subparagraph: 

24 ‘‘(J) CERTAIN INCREASES IN PAYMENTS

25 UNDER A COMMERCIAL ANNUITY.—Nothing in 
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1 this section shall prohibit a commercial annuity 

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

3 is issued in connection with any eligible retire4 ment plan (within the meaning of section 

5 402(c)(8)(B), other than a defined benefit plan) 

6 from providing one or more of the following 

7 types of payments on or after the annuity start8 ing date: 

9 ‘‘(i) annuity payments that increase 

10 by a constant percentage, applied not less 

11 frequently than annually, at a rate that is 

12 less than 5 percent per year, 

13 ‘‘(ii) a lump sum payment that— 

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

15 payment period with respect to an an16 nuity or a full or partial commutation 

17 of the future annuity payments, pro18 vided that such lump sum is deter19 mined using reasonable actuarial 

20 methods and assumptions, as deter21 mined in good faith by the issuer of 

22 the contract, or 

23 ‘‘(II) accelerates the receipt of 

24 annuity payments that are scheduled 

25 to be received within the ensuing 12 
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1 months, regardless of whether such 

2 acceleration shortens the payment pe3 riod with respect to the annuity, re4 duces the dollar amount of benefits to 

5 be paid under the contract, or results 

6 in a suspension of annuity payments 

7 during the period being accelerated, 

8 ‘‘(iii) an amount which is in the na9 ture of a dividend or similar distribution, 

10 provided that the issuer of the contract de11 termines such amount based on a reason12 able comparison of the actuarial factors as13 sumed when calculating the initial annuity 

14 payments and the issuer’s experience with 

15 respect to those factors, or 

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

17 does not exceed the excess of the total 

18 amount of the consideration paid for the 

19 annuity payments, less the aggregate 

20 amount of prior distributions or payments 

21 from or under the contract.’’. 

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

23 calendar years ending after the date of the enactment of 

24 this Act. 
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1 SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 

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

3 1 year after the date of the enactment of this Act, the 

4 Secretary of the Treasury or the Secretary’s delegate 

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

6 shall amend the regulation issued by the Department of 

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

8 (79 Fed. Reg. 37633 (July 2, 2014)), as follows: 

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

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

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

12 of Treasury Regulation section 1.408–8 to eliminate 

13 the requirement that premiums for qualifying lon14 gevity annuity contracts be limited to a percentage 

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

16 corresponding changes to the regulations and related 

17 forms as are necessary to reflect the elimination of 

18 this requirement. 

19 (2) FACILITATE JOINT AND SURVIVOR BENE20 FITS.—The Secretary shall amend Q&A–17(c) of 

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

22 make such corresponding changes to the regulations 

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

24 in the case of a qualifying longevity annuity contract 

25 which was purchased with joint and survivor annuity 

26 benefits for the individual and the individual’s 
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1 spouse which were permissible under the regulations 

2 at the time the contract was originally purchased, a 

3 divorce occurring after the original purchase and be4 fore the annuity payments commence under the con5 tract will not affect the permissibility of the joint 

6 and survivor annuity benefits or other benefits under 

7 the contract, or require any adjustment to the 

8 amount or duration of benefits payable under the 

9 contract, provided that any qualified domestic rela10 tions order (within the meaning of section 414(p) of 

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

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

13 such Code or section 206(d) of the Employee Retire14 ment Income Security Act of 1974 (29 U.S.C. 

15 1056(d)), any divorce or separation instrument (as 

16 defined in subsection (b))— 

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

20 (B) does not modify the treatment of the 

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

23 (C) does not modify the treatment of the 

24 former spouse as the measuring life for the sur25 vivor benefits under the contract. 
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1 (3) PERMIT SHORT FREE LOOK PERIOD.—The 

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

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

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

7 not exceeding 90 days from the date of purchase. 

8 (b) DIVORCE OR SEPARATION INSTRUMENT.—For 

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

11 (1) a decree of divorce or separate maintenance 

12 or a written instrument incident to such a decree, 

13 (2) a written separation agreement, or 

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

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

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

19 (1) EFFECTIVE DATES.— 

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

21 be effective with respect to contracts purchased 

22 or received in an exchange on or after the date 

23 of the enactment of this Act. 

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

25 (a) shall be effective with respect to contracts 
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1 purchased or received in an exchange on or 

2 after July 2, 2014. 

3 (2) ENFORCEMENT AND INTERPRETATIONS.— 

4 Prior to the date on which the Secretary issues final 

5 regulations pursuant to subsection (a)— 

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

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

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

12 (d) REGULATORY SUCCESSOR PROVISION.—Any ref13 erence to a regulation under this section shall be treated 

14 as including a reference to any successor regulation there15 to. 

16 SEC. 203. INSURANCE-DEDICATED EXCHANGE-TRADED 

17 FUNDS. 

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

19 7 years after the date of the enactment of this Act, the 

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

21 shall amend the regulation issued by the Department of 

22 the Treasury relating to ‘‘Income Tax; Diversification Re23 quirements for Variable Annuity, Endowment, and Life 

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

25 1989), and make any necessary corresponding amend-
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1 ments to other regulations, in order to facilitate the use 

2 of exchange-traded funds as investment options under 

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

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

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

6 (b) DESIGNATE CERTAIN AUTHORIZED PARTICI7 PANTS AND MARKET MAKERS AS ELIGIBLE INVESTORS.— 

8 The Secretary of the Treasury (or the Secretary’s dele9 gate) shall amend Treasury Regulation section 1.817– 

10 5(f)(3) to provide that satisfaction of the requirements in 

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

12 to an exchange-traded fund shall not be prevented by rea13 son of beneficial interests in such a fund being held by 

14 1 or more authorized participants or market makers. 

15 (c) DEFINE RELEVANT TERMS.—In amending 

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

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

18 Treasury (or the Secretary’s delegate) shall provide defini19 tions consistent with the following: 

20 (1) EXCHANGE-TRADED FUND.—The term ‘‘ex21 change-traded fund’’ means a regulated investment 

22 company, partnership, or trust— 

23 (A) that is registered with the Securities 

24 and Exchange Commission as an open-end in25 vestment company or a unit investment trust; 
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1 (B) the shares of which can be purchased 

2 or redeemed directly from the fund only by an 

3 authorized participant; and 

4 (C) the shares of which are traded 

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

7 be the same as the net asset value of the 

8 shares. 

9 (2) AUTHORIZED PARTICIPANT.—The term 

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

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

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

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

18 only if the contractual arrangement or applicable law 

19 precludes the financial institution from— 

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

22 purpose of creating and redeeming such shares 

23 on behalf of third parties; and 

24 (B) selling the shares to third parties who 

25 are not market makers or otherwise described 
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1 in paragraphs (2) and (3) of Treasury Regula2 tion section 1.817–5(f). 

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

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

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

8 stock exchange by being always ready to buy and sell 

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

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

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

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

16 apply to segregated asset account investments made on 

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

19 TITLE III—SIMPLIFICATION AND 

20 CLARIFICATION OF RETIRE21 MENT PLAN RULES 

22 SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAY23 MENTS. 

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

25 the Employee Retirement Income Security Act of 1974 
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1 (29 U.S.C. 1056) is amended by adding at the end the 

2 following new subsection: 

3 ‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT

4 OVERPAYMENTS.— 

5 ‘‘(1) GENERAL RULE.—In the case of an inad6 vertent benefit overpayment by any pension plan, the 

7 responsible plan fiduciary shall not be considered to 

8 have failed to comply with the requirements of this 

9 title merely because such fiduciary determines, in 

10 the exercise of its fiduciary discretion, not to seek 

11 recovery of all or part of such overpayment from— 

12 ‘‘(A) any participant or beneficiary, 

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

14 employer to— 

15 ‘‘(i) an individual account plan, pro16 vided that the amount needed to prevent or 

17 restore any impermissible forfeiture from 

18 any participant’s or beneficiary’s account 

19 arising in connection with the overpayment 

20 is, separately from and independently of 

21 the overpayment, allocated to such account 

22 pursuant to the nonforfeitability require23 ments of section 203 (for example, out of 

24 the plan’s forfeiture account, additional 
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1 employer contributions, or recoveries from 

2 those responsible for the overpayment), or 

3 ‘‘(ii) a defined benefit pension plan 

4 subject to the funding rules in part 3 of 

5 this subtitle B, unless the responsible plan 

6 fiduciary determines, in the exercise of its 

7 fiduciary discretion, that failure to recover 

8 all or part of the overpayment faster than 

9 required under such funding rules would 

10 materially affect the plan’s ability to pay 

11 benefits due to other participants and 

12 beneficiaries, or 

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

14 a fiduciary (including a plan sponsor or contrib15 uting employer acting in a fiduciary capacity) 

16 whose breach of its fiduciary duties resulted in 

17 such overpayment, provided that if the plan has 

18 established prudent procedures to prevent and 

19 minimize overpayment of benefits and the rel20 evant plan fiduciaries have followed such proce21 dures, an inadvertent benefit overpayment will 

22 not give rise to a breach of fiduciary duty. 

23 ‘‘(2) REDUCTION IN FUTURE BENEFIT PAY24 MENTS AND RECOVERY FROM RESPONSIBLE

25 PARTY.—Paragraph (1) shall not fail to apply with 
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1 respect to any inadvertent benefit overpayment 

2 merely because, after discovering such overpayment, 

3 the responsible plan fiduciary— 

4 ‘‘(A) reduces future benefit payments to 

5 the correct amount provided for under the 

6 terms of the plan, or 

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

8 persons responsible for the overpayment. 

9 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

10 Nothing in this subsection shall relieve an employer 

11 of any obligation imposed on it to make contribu12 tions to a plan to meet the minimum funding stand13 ards under part 3 of this subtitle B or to prevent 

14 or restore an impermissible forfeiture in accordance 

15 with section 203. 

16 ‘‘(4) RECOUPMENT FROM PARTICIPANTS AND

17 BENEFICIARIES.—If the responsible plan fiduciary, 

18 in the exercise of its fiduciary discretion, decides to 

19 seek recoupment from a participant or beneficiary of 

20 all or part of an inadvertent benefit overpayment 

21 made by the plan to such participant or beneficiary, 

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

23 ‘‘(A) No interest or other additional 

24 amounts (such as collection costs or fees) are 

25 sought on overpaid amounts for any period. 
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1 ‘‘(B) If the plan seeks to recoup past over2 payments of a non-decreasing periodic benefit 

3 by reducing future benefit payments— 

4 ‘‘(i) the reduction ceases after the 

5 plan has recovered the full dollar amount 

6 of the overpayment, 

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

9 the full dollar amount of the overpayment, 

10 and 

11 ‘‘(iii) future benefit payments are not 

12 reduced to below 90 percent of the periodic 

13 amount otherwise payable under the terms 

14 of the plan. 

15 Alternatively, if the plan seeks to recoup past 

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

18 the sum of such installment payments in any 

19 calendar year does not exceed the sum of the 

20 reductions that would be permitted in such year 

21 under the preceding sentence. 

22 ‘‘(C) If the plan seeks to recoup past over23 payments of a benefit other than a non-decreas24 ing periodic benefit, the plan satisfies require-
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1 ments developed by the Secretary for purposes 

2 of this subparagraph. 

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

4 ‘‘(i) not accompanied by threats of 

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

7 a civil action brought in Federal or State 

8 court to recoup the overpayments, and 

9 ‘‘(ii) not made through a collection 

10 agency or similar third party, unless the 

11 participant or beneficiary ignores or rejects 

12 efforts to recoup the overpayment following 

13 either a final judgment in Federal or State 

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

16 case authorizing such recoupment. 

17 ‘‘(E) Recoupment of past overpayments to 

18 a participant is not sought from any beneficiary 

19 of the participant, including a spouse, surviving 

20 spouse, former spouse, or other beneficiary. 

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

22 first overpayment occurred more than 3 years 

23 before the participant or beneficiary is first no24 tified in writing of the error. 
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1 ‘‘(G) A participant or beneficiary from 

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

4 the plan’s claims procedures. 

5 ‘‘(H) In determining the amount of 

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

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

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

12 apply to protect a participant or beneficiary who is 

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

15 responsibility for the overpayment (such as through 

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

18 reason to know under the circumstances, that the 

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

22 because the individual believed the benefit payment 

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

25 with an authorized plan representative and was told 
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1 the payment or payments were not in excess of the 

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

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

7 of Civil Procedure if the litigation were brought in 

8 Federal court.’’. 

9 (b) OVERPAYMENTS UNDER INTERNAL REVENUE

10 CODE OF 1986.— 

11 (1) QUALIFICATION REQUIREMENTS.—Section 

12 414 of the Internal Revenue Code of 1986, as 

13 amended by this preceding provisions of this Act, is 

14 amended by adding at the end the following new 

15 subsection: 

16 ‘‘(bb) SPECIAL RULES APPLICABLE TO BENEFIT

17 OVERPAYMENTS.— 

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

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

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

21 treated as satisfying the requirements of section 

22 401(a) or 403) merely because— 

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

24 any participant, beneficiary, employer, plan 

25 sponsor, fiduciary, or other party on account of 
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1 any inadvertent benefit overpayment made by 

2 the plan, or 

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

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

6 adjust for prior inadvertent benefit overpay7 ments. 

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

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

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

13 ‘‘(A) reduces future benefit payments to 

14 the correct amount provided for under the 

15 terms of the plan, or 

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

17 persons responsible for such overpayment. 

18 ‘‘(3) EMPLOYER FUNDING OBLIGATIONS.— 

19 Nothing in this subsection shall relieve an employer 

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

24 section 411. 
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1 ‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS.— 

2 Notwithstanding paragraph (1), a plan to which 

3 paragraph (1) applies shall observe any limitations 

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

5 plan may enforce such limitations using any method 

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

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

14 from a participant or beneficiary shall be taken into 

15 account for purposes of satisfying any requirement 

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

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

19 is amended by adding at the end the following new 

20 paragraph: 

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

22 overpayment from a plan to which section 

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

24 retirement plan by or on behalf of a participant or 

25 beneficiary— 
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1 ‘‘(A) the portion of such overpayment with 

2 respect to which recoupment is not sought on 

3 behalf of the plan shall be treated as having 

4 been paid in an eligible rollover distribution if 

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

7 and 

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

9 respect to which recoupment is sought on behalf 

10 of the plan shall be permitted to be returned to 

11 such plan and in such case shall be treated as 

12 an eligible rollover distribution transferred to 

13 such plan by the participant or beneficiary who 

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

16 as permitting such transfer). 

17 In any case in which recoupment is sought on behalf 

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

20 shall be subject to the claims procedures of the plan 

21 that made such overpayment, such plan shall notify 

22 the plan receiving the rollover of such dispute, and 

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

25 (and shall be entitled to treat such overpayment as 
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1 plan assets) pending the outcome of such proce2 dures.’’. 

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

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

5 of this Act. 

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

8 are entitled to rely on— 

9 (1) a good faith interpretation of then existing 

10 administrative guidance for inadvertent benefit over11 payment recoupments and recoveries that com12 menced before the date of enactment of this Act, 

13 and 

14 (2) determinations made before the date of en15 actment of this Act by the responsible plan fidu16 ciary, in the exercise of its fiduciary discretion, not 

17 to seek recoupment or recovery of all or part of an 

18 inadvertent benefit overpayment. 

19 In the case of a benefit overpayment that occurred prior 

20 to the date of enactment of this Act, any installment pay21 ments by the participant or beneficiary to the plan or any 

22 reduction in periodic benefit payments to the participant 

23 or beneficiary, which were made in recoupment of such 

24 overpayment and which commenced prior to such date, 

25 may continue after such date. Nothing in this subsection 
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1 shall relieve a fiduciary from responsibility for an overpay2 ment that resulted from a breach of its fiduciary duties. 

3 SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCU4 MULATIONS IN QUALIFIED RETIREMENT 

5 PLANS. 

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

7 Revenue Code of 1986 is amended by striking ‘‘50 per8 cent’’ and inserting ‘‘25 percent’’. 

9 (b) REDUCTION IN EXCISE TAX ON FAILURES TO

10 TAKE REQUIRED MINIMUM DISTRIBUTIONS.—Section 

11 4974 of such Code is amended by adding at the end the 

12 following new subsection: 

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

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

15 who— 

16 ‘‘(A) corrects, during the correction win17 dow, a shortfall of distributions from an indi18 vidual retirement plan which resulted in imposi19 tion of a tax under subsection (a), and 

20 ‘‘(B) submits a return, during the correc21 tion window, reflecting such tax (as modified by 

22 this subsection), 

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

24 by substituting ‘10 percent’ for ‘25 percent’. 
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1 ‘‘(2) CORRECTION WINDOW.—For purposes of 

2 this subsection, the term ‘correction window’ means 

3 the period of time beginning on the date on which 

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

5 to a shortfall of distributions from an individual re6 tirement plan, and ending on the earlier of— 

7 ‘‘(A) the date on which the Secretary initi8 ates an audit, or otherwise demands payment, 

9 with respect to the shortfall of distributions, or 

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

11 year that begins after the end of the taxable 

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

13 imposed.’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2022. 

17 SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLO18 CATION FUNDS. 

19 (a) IN GENERAL.—Not later than 1 year after the 

20 date of enactment of this Act, the Secretary of Labor shall 

21 provide that, in the case of a designated investment alter22 native that contains a mix of asset classes, the adminis23 trator of a plan may, but is not required to, use a bench24 mark that is a blend of different broad-based securities 

25 market indices if— 
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1 (1) the blend is reasonably representative of the 

2 asset class holdings of the designated investment al3 ternative; 

4 (2) for purposes of determining the blend’s re5 turns for 1-, 5-, and 10-calendar-year periods (or for 

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

7 modified at least once per year to reflect changes in 

8 the asset class holdings of the designated investment 

9 alternative; 

10 (3) the blend is furnished to participants and 

11 beneficiaries in a manner that is reasonably designed 

12 to be understandable; and 

13 (4) each securities market index that is used for 

14 an associated asset class would separately satisfy the 

15 requirements of such regulation for such asset class. 

16 (b) STUDY.—Not later than 3 years after the date 

17 of enactment of this Act, the Secretary of Labor shall de18 liver a report to the Committees on Finance and Health, 

19 Education, Labor, and Pensions of the Senate and the 

20 Committees on Ways and Means and Education and 

21 Labor of the House of Representatives regarding the utili22 zation, effectiveness, and participants’ understanding of 

23 the benchmarking requirements under this section. 
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1 SEC. 304. REVIEW AND REPORT TO CONGRESS RELATING 

2 TO REPORTING AND DISCLOSURE REQUIRE3 MENTS. 

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

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

7 Benefit Guaranty Corporation shall review the reporting 

8 and disclosure requirements as applicable to each such 

9 agency head, of— 

10 (1) the Employee Retirement Income Security 

11 Act of 1974 applicable to pension plans (as defined 

12 in section 3(2) of such Act (29 U.S.C. 1002(2)); and 

13 (2) the Internal Revenue Code of 1986 applica14 ble to qualified retirement plans (as defined in sec15 tion 4974(c) of such Code, without regard to para16 graphs (4) and (5) of such section). 

17 (b) REPORT.— 

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

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

20 Labor, the Secretary of the Treasury, and the Direc21 tor of the Pension Benefit Guaranty Corporation, 

22 jointly, and after consultation with a balanced group 

23 of participant and employer representatives, shall 

24 with respect to plans referenced in subsection (a) re25 port on the effectiveness of the applicable reporting 

26 and disclosure requirements and make such rec-
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1 ommendations as may be appropriate to the Com2 mittee on Education and Labor and the Committee 

3 on Ways and Means of the House of Representatives 

4 and the Committee on Health, Education, Labor, 

5 and Pensions and the Committee on Finance of the 

6 Senate to consolidate, simplify, standardize, and im7 prove such requirements so as to simplify reporting 

8 for such plans and ensure that plans can furnish 

9 and participants and beneficiaries timely receive and 

10 better understand the information they need to mon11 itor their plans, plan for retirement, and obtain the 

12 benefits they have earned. 

13 (2) ANALYSIS OF EFFECTIVENESS.—To assess 

14 the effectiveness of the applicable reporting and dis15 closure requirements, the report shall include an 

16 analysis, based on plan data, of how participants 

17 and beneficiaries are providing preferred contact in18 formation, the methods by which plan sponsors and 

19 plans are furnishing disclosures, and the rate at 

20 which participants and beneficiaries (grouped by key 

21 demographics) are receiving, accessing, under22 standing, and retaining disclosures. 

23 (3) COLLECTION OF INFORMATION.—The agen24 cies shall conduct appropriate surveys and data col25 lection to obtain any needed information. 
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1 SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIRE2 MENTS RELATED TO UNENROLLED PARTICI3 PANTS. 

4 (a) AMENDMENT OF EMPLOYEE RETIREMENT IN5 COME SECURITY ACT OF 1974.— 

6 (1) IN GENERAL.—Part 1 of subtitle B of sub7 chapter I of the Employee Retirement Income Secu8 rity Act of 1974 is amended by redesignating section 

9 111 as section 112 and by inserting after section 

10 110 the following new section: 

11 ‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE12 MENTS RELATED TO UNENROLLED PARTICI13 PANTS. 

14 ‘‘(a) IN GENERAL.—Notwithstanding any other pro15 vision of this title, with respect to any individual account 

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

17 than the notices and documents described in paragraphs 

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

19 title to any unenrolled participant if the unenrolled partici20 pant receives— 

21 ‘‘(1) an annual reminder notice of such partici22 pant’s eligibility to participate in such plan and any 

23 applicable election deadlines under the plan; and 

24 ‘‘(2) any document requested by such partici25 pant that the participant would be entitled to receive 

26 notwithstanding this section. 
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1 ‘‘(b) UNENROLLED PARTICIPANT.—For purposes of 

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

3 employee who— 

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

5 account plan; 

6 ‘‘(2) has received— 

7 ‘‘(A) the summary plan description pursu8 ant to section 104(b), and 

9 ‘‘(B) any other notices related to eligibility 

10 under the plan required to be furnished under 

11 this title, or the Internal Revenue Code of 

12 1986, in connection with such participant’s ini13 tial eligibility to participate in such plan; 

14 ‘‘(3) is not participating in such plan; 

15 ‘‘(4) does not have an account balance in the 

16 plan; and 

17 ‘‘(5) satisfies such other criteria as the Sec18 retary of Labor may determine appropriate, as pre19 scribed in guidance issued in consultation with the 

20 Secretary of Treasury. 

21 For purposes of this section, any eligibility to participate 

22 in the plan following any period for which such employee 

23 was not eligible to participate shall be treated as initial 

24 eligibility. 
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1 ‘‘(c) ANNUAL REMINDER NOTICE.—For purposes of 

2 this section, the term ‘annual reminder notice’ means a 

3 notice provided in accordance with section 2520.104b–1 

4 of title 29, Code of Federal Regulations (or any successor 

5 regulation), which— 

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

7 open season election period with respect to the plan 

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

9 reasonable period prior to the beginning of each plan 

10 year; 

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

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

13 to participate in the plan; and 

14 ‘‘(B) the key benefits and rights under the 

15 plan, with a focus on employer contributions 

16 and vesting provisions; and 

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

18 manner calculated to be understood by the average 

19 participant.’’. 

20 (2) CLERICAL AMENDMENT.—The table of con21 tents in section 1 of the Employee Retirement In22 come Security Act of 1974 is amended by striking 

23 the item relating to section 111 and by inserting 

24 after the item relating to section 110 the following 

25 new items: 
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‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled 

participants. 

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

1 (b) AMENDMENT OF INTERNAL REVENUE CODE OF

2 1986.—Section 414 of the Internal Revenue Code of 

3 1986, as amended by the preceding provisions of this Act, 

4 is amended by adding at the end the following new sub5 section: 

6 ‘‘(cc) ELIMINATING UNNECESSARY PLAN REQUIRE7 MENTS RELATED TO UNENROLLED PARTICIPANTS.— 

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

9 provision of this title, with respect to any defined 

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

11 document (other than the notices and documents de12 scribed in subparagraphs (A) and (B)) shall be re13 quired to be furnished under this title to any 

14 unenrolled participant if the unenrolled participant 

15 receives— 

16 ‘‘(A) an annual reminder notice of such 

17 participant’s eligibility to participate in such 

18 plan and any applicable election deadlines under 

19 the plan, and 

20 ‘‘(B) any document requested by such par21 ticipant that the participant would be entitled 

22 to receive notwithstanding this subsection. 
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1 ‘‘(2) UNENROLLED PARTICIPANT.—For pur2 poses of this subsection, the term ‘unenrolled partici3 pant’ means an employee who— 

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

5 contribution plan, 

6 ‘‘(B) has received— 

7 ‘‘(i) the summary plan description 

8 pursuant to section 104(b) of the Em9 ployee Retirement Income Security Act of 

10 1974, and 

11 ‘‘(ii) any other notices related to eligi12 bility under the plan and required to be 

13 furnished under this title, or the Employee 

14 Retirement Income Security Act of 1974, 

15 in connection with such participant’s initial 

16 eligibility to participate in such plan, 

17 ‘‘(C) is not participating in such plan, 

18 ‘‘(D) does not have an account balance in 

19 the plan, and 

20 ‘‘(E) satisfies such other criteria as the 

21 Secretary of the Treasury may determine ap22 propriate, as prescribed in guidance issued in 

23 consultation with the Secretary of Labor. 

24 For purposes of this subsection, any eligibility to 

25 participate in the plan following any period for 
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1 which such employee was not eligible to participate 

2 shall be treated as initial eligibility. 

3 ‘‘(3) ANNUAL REMINDER NOTICE.—For pur4 poses of this subsection, the term ‘annual reminder 

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

6 of the Employee Retirement Income Security Act of 

7 1974.’’. 

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

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

11 SEC. 306. RETIREMENT SAVINGS LOST AND FOUND. 

12 (a) IN GENERAL.— 

13 (1) ESTABLISHMENT OF RETIREMENT SAVINGS

14 LOST AND FOUND.—Part 5 of title I of the Em15 ployee Retirement Income Security Act of 1974 (29 

16 U.S.C. 1341 et seq.) is amended by adding at the 

17 end the following: 

18 ‘‘SEC. 523. RETIREMENT SAVINGS LOST AND FOUND. 

19 ‘‘(a) ESTABLISHMENT.— 

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

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

22 Secretary of Labor, in consultation with the Sec23 retary of the Treasury, shall establish an online 

24 searchable database (to be managed by the Depart25 ment of Labor in accordance with this section) to be 
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1 known as the ‘Retirement Savings Lost and Found’. 

2 The Retirement Savings Lost and Found shall— 

3 ‘‘(A) allow an individual to search for in4 formation that enables the individual to locate 

5 the administrator of any plan described in para6 graph (2) with respect to which the individual 

7 is or was a participant or beneficiary, and pro8 vide contact information for the administrator 

9 of any such plan; 

10 ‘‘(B) allow the Department of Labor to as11 sist such an individual in locating any such plan 

12 of the individual; and 

13 ‘‘(C) allow the Department of Labor to 

14 make any necessary changes to contact infor15 mation on record for the administrator based 

16 on any changes to the plan due to merger or 

17 consolidation of the plan with any other plan, 

18 division of the plan into two or more plans, 

19 bankruptcy, termination, change in name of the 

20 plan, change in name or address of the admin21 istrator, or other causes. 

22 The Retirement Savings Lost and Found established 

23 under this paragraph shall include information re24 ported under this section and other relevant infor25 mation obtained by the Department of Labor. 
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1 ‘‘(2) PLANS DESCRIBED.—A plan described in 

2 this paragraph is a plan to which the vesting stand3 ards of section 203 apply. 

4 ‘‘(b) ADMINISTRATION.—The Retirement Savings 

5 Lost and Found established under subsection (a) shall 

6 provide individuals described in subsection (a)(1) only 

7 with the ability to search for information that enables the 

8 individual to locate the administrator and contact informa9 tion for the administrator of any plan with respect to 

10 which the individual is or was a participant or beneficiary, 

11 sufficient to allow the individual to locate the individual’s 

12 plan in order to recover any benefit owing to the individual 

13 under the plan. 

14 ‘‘(c) SAFEGUARDING PARTICIPANT PRIVACY AND SE15 CURITY.—In establishing the Retirement Savings Lost 

16 and Found under subsection (a), the Department of Labor 

17 shall take all necessary and proper precautions to ensure 

18 that individuals’ plan information maintained by the Re19 tirement Savings Lost and Found is protected. 

20 ‘‘(d) DEFINITION OF ADMINISTRATOR.—For pur21 poses of this section, the term ‘administrator’ has the 

22 meaning given such term in section 3(16)(A). 

23 ‘‘(e) INFORMATION COLLECTION FROM PLANS.—Ef24 fective with respect to plan years beginning after the sec25 ond December 31 occurring after the date of the enact-
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1 ment of this subsection, the administrator of a plan to 

2 which the vesting standards of section 203 apply shall sub3 mit to the Department of Labor, at such time and in such 

4 form and manner as is prescribed in regulations— 

5 ‘‘(1) the information described in paragraphs 

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

7 Revenue Code of 1986; 

8 ‘‘(2) the information described in subpara9 graphs (A) and (B) of section 6057(a)(2) of such 

10 Code; 

11 ‘‘(3) the name and taxpayer identifying number 

12 of each participant or former participant in the 

13 plan— 

14 ‘‘(A) who, during the current plan year or 

15 any previous plan year, was reported under sec16 tion 6057(a)(2)(C) of such Code, and with re17 spect to whom the benefits described in clause 

18 (ii) thereof were fully paid during the plan year; 

19 ‘‘(B) with respect to whom any amount 

20 was distributed under section 401(a)(31)(B) of 

21 such Code during the plan year; or 

22 ‘‘(C) with respect to whom a deferred an23 nuity contract was distributed during the plan 

24 year; 
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1 ‘‘(4) in the case of a participant or former par2 ticipant to whom paragraph (3) applies— 

3 ‘‘(A) in the case of a participant described 

4 in subparagraph (B) thereof, the name and ad5 dress of the designated trustee or issuer de6 scribed in section 401(a)(31)(B)(i) of such 

7 Code and the account number of the individual 

8 retirement plan to which the amount was dis9 tributed; and 

10 ‘‘(B) in the case of a participant described 

11 in subparagraph (C) thereof, the name and ad12 dress of the issuer of such annuity contract and 

13 the contract or certificate number; and 

14 ‘‘(5) such other information as the Secretary of 

15 Labor may require. 

16 ‘‘(f) INFORMATION COLLECTION FROM FEDERAL

17 AGENCIES.—On request, the Secretary of Labor may ac18 cess and receive such information collected by other Fed19 eral agencies as may be necessary and appropriate to per20 form work related to the Retirement Savings Lost and 

21 Found. 

22 ‘‘(g) PROGRAM INTEGRITY AUDIT.—On an annual 

23 basis for each of the first 5 years beginning one year after 

24 the establishment of the database in subsection (a)(1) and 

25 every 5 years thereafter, the Inspector General of the De-
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1 partment of Labor shall conduct an audit of the adminis2 tration of the Retirement Savings Lost and Found.’’. 

3 (3) CONFORMING AMENDMENT.—The table of 

4 contents for the Employee Retirement Income Secu5 rity Act of 1974 (29 U.S.C. 1001 et seq.) is amend6 ed by inserting after the item relating to section 522 

7 the following: 

‘‘Sec. 523.Retirement Savings Lost and Found.’’. 

8 SEC. 307. UPDATING DOLLAR LIMIT FOR MANDATORY DIS9 TRIBUTIONS. 

10 (a) IN GENERAL.—Section 203(e)(1) of the Em11 ployee Retirement Income Security Act of 1974 and sec12 tions 401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal 

13 Revenue Code of 1986 are each amended by striking 

14 ‘‘$5,000’’ and inserting ‘‘$7,000’’. 

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

16 this section shall apply to distributions made after Decem17 ber 31, 2022. 

18 SEC. 308. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 

19 RESOLUTION SYSTEM. 

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

21 the Internal Revenue Code of 1986 or regulations pre22 scribed by the Secretary of the Treasury or the Secretary’s 

23 delegate (referred to in this section as the ‘‘Secretary’’), 

24 any eligible inadvertent failure to comply with the rules 

25 applicable under section 401(a), 403(a), 403(b), 408(p), 
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1 or 408(k) of such Code may be self-corrected under the 

2 Employee Plans Compliance Resolution System (as de3 scribed in Revenue Procedure 2021–30, or any successor 

4 guidance, and hereafter in this section referred to as the 

5 ‘‘EPCRS’’), except to the extent that such failure was 

6 identified by the Secretary prior to any actions which dem7 onstrate a commitment to implement a self-correction. 

8 Revenue Procedure 2021–30 is deemed amended as of the 

9 date of the enactment of this Act to provide that the cor10 rection period under section 9.02 of such Revenue Proce11 dure (or any successor guidance) for an eligible inad12 vertent failure, except as otherwise provided under such 

13 Code or in regulations prescribed by the Secretary, is in14 definite and has no last day, other than with respect to 

15 failures identified by the Secretary prior to any self-correc16 tion as described in the preceding sentence. 

17 (b) LOAN ERRORS.—In the case of an eligible inad18 vertent failure relating to a loan from a plan to a partici19 pant— 

20 (1) such failure may be self-corrected under 

21 subsection (a) according to the rules of section 6.07 

22 of Revenue Procedure 2021–30 (or any successor 

23 guidance), including the provisions related to wheth24 er a deemed distribution must be reported on Form 

25 1099–R, and 
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1 (2) the Secretary of Labor shall treat any such 

2 failure which is so self-corrected under subsection 

3 (a) as meeting the requirements of the Voluntary Fi4 duciary Correction Program of the Department of 

5 Labor if, with respect to the violation of the fidu6 ciary standards of the Employee Retirement Income 

7 Security Act of 1974, there is a similar loan error 

8 eligible for correction under EPCRS and the loan 

9 error is corrected in such manner. 

10 (c) EPCRS FOR IRAS.—The Secretary shall expand 

11 the EPCRS to allow custodians of individual retirement 

12 plans (as defined in section 7701(a)(37) of the Internal 

13 Revenue Code of 1986) to address eligible inadvertent fail14 ures with respect to an individual retirement plan (as so 

15 defined), including (but not limited to)— 

16 (1) waivers of the excise tax which would other17 wise apply under section 4974 of the Internal Rev18 enue Code of 1986, 

19 (2) under the self-correction component of the 

20 EPCRS, waivers of the 60-day deadline for a roll21 over where the deadline is missed for reasons beyond 

22 the reasonable control of the account owner, and 

23 (3) rules permitting a nonspouse beneficiary to 

24 return distributions to an inherited individual retire25 ment plan described in section 408(d)(3)(C) of the 
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1 Internal Revenue Code of 1986 in a case where, due 

2 to an inadvertent error by a service provider, the 

3 beneficiary had reason to believe that the distribu4 tion could be rolled over without inclusion in income 

5 of any part of the distributed amount. 

6 (d) ADDITIONAL SAFE HARBORS.—The Secretary 

7 shall expand the EPCRS to provide additional safe harbor 

8 means of correcting eligible inadvertent failures described 

9 in subsection (a), including safe harbor means of calcu10 lating the earnings which must be restored to a plan in 

11 cases where plan assets have been depleted by reason of 

12 an eligible inadvertent failure. 

13 (e) ELIGIBLE INADVERTENT FAILURE.—For pur14 poses of this section— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the term ‘‘eligible inadvertent failure’’ 

17 means a failure that occurs despite the existence of 

18 practices and procedures which— 

19 (A) satisfy the standards set forth in sec20 tion 4.04 of Revenue Procedure 2021–30 (or 

21 any successor guidance), or 

22 (B) satisfy similar standards in the case of 

23 an individual retirement plan. 

24 (2) EXCEPTION.—The term ‘‘eligible inad25 vertent failure’’ shall not include any failure which 
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1 is egregious, relates to the diversion or misuse of 

2 plan assets, or is directly or indirectly related to an 

3 abusive tax avoidance transaction. 

4 (f) APPLICATION OF CERTAIN REQUIREMENTS FOR

5 CORRECTING ERRORS.—This section shall not apply to 

6 any failure unless the correction of such failure under this 

7 section is made in conformity with the general principles 

8 that apply to corrections of such failures under the Inter9 nal Revenue Code of 1986, including regulations or other 

10 guidance issued thereunder and including those principles 

11 and corrections set forth in Revenue Procedure 2021–30 

12 (or any successor guidance).’’ 

13 SEC. 309. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE14 QUIREMENT FOR GOVERNMENTAL SECTION 

15 457(b) PLANS. 

16 (a) IN GENERAL.—Section 457(b)(4) of the Internal 

17 Revenue Code of 1986 is amended to read as follows: 

18 ‘‘(4) which provides that compensation— 

19 ‘‘(A) in the case of an eligible employer de20 scribed in subsection (e)(1)(A), will be deferred 

21 only if an agreement providing for such deferral 

22 has been entered into before the compensation 

23 is currently available to the individual, and 

24 ‘‘(B) in any other case, will be deferred for 

25 any calendar month only if an agreement pro-
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1 viding for such deferral has been entered into 

2 before the beginning of such month,’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 310. ONE-TIME ELECTION FOR QUALIFIED CHARI7 TABLE DISTRIBUTION TO SPLIT-INTEREST 

8 ENTITY; INCREASE IN QUALIFIED CHARI9 TABLE DISTRIBUTION LIMITATION. 

10 (a) ONE-TIME ELECTION FOR QUALIFIED CHARI11 TABLE DISTRIBUTION TO SPLIT-INTEREST ENTITY.—Sec12 tion 408(d)(8) of the Internal Revenue Code of 1986 is 

13 amended by adding at the end the following new subpara14 graph: 

15 ‘‘(F) ONE-TIME ELECTION FOR QUALIFIED

16 CHARITABLE DISTRIBUTION TO SPLIT-INTEREST

17 ENTITY.— 

18 ‘‘(i) IN GENERAL.—A taxpayer may 

19 for a taxable year elect under this subpara20 graph to treat as meeting the requirement 

21 of subparagraph (B)(i) any distribution 

22 from an individual retirement account 

23 which is made directly by the trustee to a 

24 split-interest entity, but only if— 
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1 ‘‘(I) an election is not in effect 

2 under this subparagraph for a pre3 ceding taxable year, 

4 ‘‘(II) the aggregate amount of 

5 distributions of the taxpayer with re6 spect to which an election under this 

7 subparagraph is made does not exceed 

8 $50,000, and 

9 ‘‘(III) such distribution meets the 

10 requirements of clauses (iii) and (iv). 

11 ‘‘(ii) SPLIT-INTEREST ENTITY.—For 

12 purposes of this subparagraph, the term 

13 ‘split-interest entity’ means— 

14 ‘‘(I) a charitable remainder annu15 ity trust (as defined in section 

16 664(d)(1)), but only if such trust is 

17 funded exclusively by qualified chari18 table distributions, 

19 ‘‘(II) a charitable remainder 

20 unitrust (as defined in section 

21 664(d)(2)), but only if such unitrust 

22 is funded exclusively by qualified char23 itable distributions, or 

24 ‘‘(III) a charitable gift annuity 

25 (as defined in section 501(m)(5)), but 
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1 only if such annuity is funded exclu2 sively by qualified charitable distribu3 tions and commences fixed payments 

4 of 5 percent or greater not later than 

5 1 year from the date of funding. 

6 ‘‘(iii) CONTRIBUTIONS MUST BE OTH7 ERWISE DEDUCTIBLE.—A distribution 

8 meets the requirement of this clause only 

9 if— 

10 ‘‘(I) in the case of a distribution 

11 to a charitable remainder annuity 

12 trust or a charitable remainder uni13 trust, a deduction for the entire value 

14 of the remainder interest in the dis15 tribution for the benefit of a specified 

16 charitable organization would be al17 lowable under section 170 (determined 

18 without regard to subsection (b) 

19 thereof and this paragraph), and 

20 ‘‘(II) in the case of a charitable 

21 gift annuity, a deduction in an 

22 amount equal to the amount of the 

23 distribution reduced by the value of 

24 the annuity described in section 

25 501(m)(5)(B) would be allowable 
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1 under section 170 (determined with2 out regard to subsection (b) thereof 

3 and this paragraph). 

4 ‘‘(iv) LIMITATION ON INCOME INTER5 ESTS.—A distribution meets the require6 ments of this clause only if— 

7 ‘‘(I) no person holds an income 

8 interest in the split-interest entity 

9 other than the individual for whose 

10 benefit such account is maintained, 

11 the spouse of such individual, or both, 

12 and 

13 ‘‘(II) the income interest in the 

14 split-interest entity is nonassignable. 

15 ‘‘(v) SPECIAL RULES.— 

16 ‘‘(I) CHARITABLE REMAINDER

17 TRUSTS.—Notwithstanding section 

18 664(b), distributions made from a 

19 trust described in subclause (I) or (II) 

20 of clause (ii) shall be treated as ordi21 nary income in the hands of the bene22 ficiary to whom the annuity described 

23 in section 664(d)(1)(A) or the pay24 ment described in section 

25 664(d)(2)(A) is paid. 
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1 ‘‘(II) CHARITABLE GIFT ANNU2 ITIES.—Qualified charitable distribu3 tions made to fund a charitable gift 

4 annuity shall not be treated as an in5 vestment in the contract for purposes 

6 of section 72(c).’’. 

7 (b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 

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

9 adding at the end the following new subparagraph: 

10 ‘‘(G) INFLATION ADJUSTMENT.— 

11 ‘‘(i) IN GENERAL.—In the case of any 

12 taxable year beginning after 2022, each of 

13 the dollar amounts in subparagraphs (A) 

14 and (F) shall be increased by an amount 

15 equal to— 

16 ‘‘(I) such dollar amount, multi17 plied by 

18 ‘‘(II) the cost-of-living adjust19 ment determined under section 1(f)(3) 

20 for the calendar year in which the tax21 able year begins, determined by sub22 stituting ‘calendar year 2021’ for ‘cal23 endar year 2016’ in subparagraph 

24 (A)(ii) thereof. 
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1 ‘‘(ii) ROUNDING.—If any dollar 

2 amount increased under clause (i) is not a 

3 multiple of $1,000, such dollar amount 

4 shall be rounded to the nearest multiple of 

5 $1,000.’’. 

6 (c) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to distributions made in taxable 

8 years ending after the date of the enactment of this Act. 

9 SEC. 311. DISTRIBUTIONS TO FIREFIGHTERS. 

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

11 72(t)(10) of the Internal Revenue Code of 1986 is amend12 ed by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a dis13 tribution from a plan described in clause (iii), (iv), or (vi) 

14 of section 402(c)(8)(B) to an employee who provides fire15 fighting services’’. 

16 (b) CONFORMING AMENDMENT.—The heading of 

17 paragraph (10) of section 72(t) of such Code is amended 

18 by striking ‘‘IN GOVERNMENTAL PLANS’’ and inserting 

19 ‘‘AND PRIVATE SECTOR FIREFIGHTERS’’ 

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

21 this section shall apply to distributions made after Decem22 ber 31, 2022. 
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1 SEC. 312. EXCLUSION OF CERTAIN DISABILITY-RELATED 

2 FIRST RESPONDER RETIREMENT PAYMENTS. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting after section 139B the following new section: 

6 ‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE7 SPONDER RETIREMENT PAYMENTS. 

8 ‘‘(a) IN GENERAL.—In the case of an individual who 

9 receives qualified first responder retirement payments for 

10 any taxable year, gross income shall not include so much 

11 of such payments as do not exceed the annualized exclud12 able disability amount with respect to such individual. 

13 ‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT

14 PAYMENTS.—For purposes of this section, the term ‘quali15 fied first responder retirement payments’ means, with re16 spect to any taxable year, any pension or annuity which 

17 but for this section would be includible in gross income 

18 for such taxable year and which is received— 

19 ‘‘(1) from a plan described in clause (iii), (iv), 

20 (v), or (vi) of section 402(c)(8)(B), and 

21 ‘‘(2) in connection with such individual’s quali22 fied first responder service. 

23 ‘‘(c) ANNUALIZED EXCLUDABLE DISABILITY

24 AMOUNT.—For purposes of this section— 

25 ‘‘(1) IN GENERAL.—The term ‘annualized ex26 cludable disability amount’ means, with respect to 
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1 any individual, the service-connected excludable dis2 ability amounts which are properly attributable to 

3 the 12-month period immediately preceding the date 

4 on which such individual attains retirement age. 

5 ‘‘(2) SERVICE-CONNECTED EXCLUDABLE DIS6 ABILITY AMOUNT.—The term ‘service-connected ex7 cludable disability amount’ means periodic payments 

8 received by an individual which— 

9 ‘‘(A) are not includible in such individual’s 

10 gross income under section 104(a)(1), 

11 ‘‘(B) are received in connection with such 

12 individual’s qualified first responder service, 

13 and 

14 ‘‘(C) terminate when such individual at15 tains retirement age. 

16 ‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY17 MENTS.—In the case of an individual who only re18 ceives service-connected excludable disability 

19 amounts properly attributable to a portion of the 12- 

20 month period described in paragraph (1), such para21 graph shall be applied by multiplying such amounts 

22 by the ratio of 365 to the number of days in such 

23 period to which such amounts were properly attrib24 utable. 
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1 ‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 

2 purposes of this section, the term ‘qualified first responder 

3 service’ means service as a law enforcement officer, fire4 fighter, paramedic, or emergency medical technician.’’. 

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

6 for part III of subchapter B of chapter 1 of such Code 

7 is amended by inserting after the item relating to section 

8 139B the following new item: 

‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 

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

10 this section shall apply to amounts received with respect 

11 to taxable years beginning after December 31, 2027. 

12 SEC. 313. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM13 ITATIONS FOR EXCISE TAX ON EXCESS CON14 TRIBUTIONS AND CERTAIN ACCUMULATIONS. 

15 Section 6501(l) of the Internal Revenue Code of 1986 

16 is amended by adding at the end the following new para17 graph: 

18 ‘‘(4) INDIVIDUAL RETIREMENT PLANS.— 

19 ‘‘(A) IN GENERAL.—For purposes of any 

20 tax imposed by section 4973 or 4974 in connec21 tion with an individual retirement plan, the re22 turn referred to in this section shall be the in23 come tax return filed by the person on whom 

24 the tax under such section is imposed for the 
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1 year in which the act (or failure to act) giving 

2 rise to the liability for such tax occurred. 

3 ‘‘(B) RULE IN CASE OF INDIVIDUALS NOT

4 REQUIRED TO FILE RETURN.—In the case of a 

5 person who is not required to file an income tax 

6 return for such year— 

7 ‘‘(i) the return referred to in this sec8 tion shall be the income tax return that 

9 such person would have been required to 

10 file but for the fact that such person was 

11 not required to file such return, and 

12 ‘‘(ii) the 3-year period referred to in 

13 subsection (a) with respect to the return 

14 shall be deemed to begin on the date by 

15 which the return would have been required 

16 to be filed (excluding any extension there17 of).’’. 

18 SEC. 314. REQUIREMENT TO PROVIDE PAPER STATEMENTS 

19 IN CERTAIN CASES. 

20 (a) IN GENERAL.—Section 105(a)(2) of the Em21 ployee Retirement Income Security Act of 1974 (29 

22 U.S.C. 1025(a)(2)) is amended— 

23 (1) in subparagraph (A)(iv), by inserting ‘‘sub24 ject to subparagraph (E),’’ before ‘‘may be deliv25 ered’’; and 
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1 (2) by adding at the end the following: 

2 ‘‘(E) PROVISION OF PAPER STATE3 MENTS.—With respect to at least 1 pension 

4 benefit statement furnished for a calendar year 

5 with respect to an individual account plan 

6 under paragraph (1)(A), and with respect to at 

7 least 1 pension benefit statement furnished 

8 every 3 calendar years with respect to a defined 

9 benefit plan under paragraph (1)(B), such 

10 statement shall be furnished on paper in writ11 ten form except— 

12 ‘‘(i) in the case of a plan that fur13 nishes such statement in accordance with 

14 section 2520.104b-1(c) of title 29, Code of 

15 Federal Regulations; or 

16 ‘‘(ii) in the case of a plan that permits 

17 a participant or beneficiary to request that 

18 the statements referred to in the matter 

19 preceding clause (i) be furnished by elec20 tronic delivery, if the participant or bene21 ficiary requests that such statements be 

22 delivered electronically and the statements 

23 are so delivered.’’. 

24 (b) IMPLEMENTATION.— 
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1 (1) IN GENERAL.—The Secretary of Labor 

2 shall, not later than December 31, 2022, update sec3 tion 2520.104b-1(c) of title 29, Code of Federal 

4 Regulations, to provide that a plan may furnish the 

5 statements referred to in subparagraph (E) of sec6 tion 105(a)(2) by electronic delivery only if, in addi7 tion to meeting the other requirements under the 

8 regulations— 

9 (A) such plan furnishes each participant or 

10 beneficiary, including participants described in 

11 subparagraph (B), a one-time initial notice on 

12 paper in written form, prior to the electronic 

13 delivery of any pension benefit statement, of 

14 their right to request that all documents re15 quired to be disclosed under title I of the Em16 ployee Retirement Income Security Act of 1974 

17 be furnished on paper in written form; and 

18 (B) such plan furnishes each participant 

19 who is separated from service with at least 1 

20 pension benefit statement on paper in written 

21 form for each calendar year, unless, on election 

22 of the participant, the participant receives such 

23 statements electronically. 

24 (2) OTHER GUIDANCE.—In implementing the 

25 amendment made by subsection (a) with respect to 
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1 a plan that discloses required documents or state2 ments electronically, in accordance with applicable 

3 guidance governing electronic disclosure by the De4 partment of Labor (with the exception of section 

5 2520.104b-1(c) of title 29, Code of Federal Regula6 tions), the Secretary of Labor shall, not later than 

7 December 31, 2022, update such guidance to the ex8 tent necessary to ensure that— 

9 (A) a participant or beneficiary under such 

10 a plan is permitted the opportunity to request 

11 that any disclosure required to be delivered on 

12 paper under applicable guidance by the Depart13 ment of Labor shall be furnished by electronic 

14 delivery; 

15 (B) each paper statement furnished under 

16 such a plan pursuant to the amendment shall 

17 include— 

18 (i) an explanation of how to request 

19 that all such statements, and any other 

20 document required to be disclosed under 

21 title I of the Employee Retirement Income 

22 Security Act of 1974, be furnished by elec23 tronic delivery; and 

24 (ii) contact information for the plan 

25 sponsor, including a telephone number; 
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1 (C) the plan may not charge any fee to a 

2 participant or beneficiary for the delivery of any 

3 paper statements; 

4 (D) each paper pension benefit statement 

5 shall identify each plan document required to be 

6 disclosed and shall include information about 

7 how a participant or beneficiary may access 

8 each such document; 

9 (E) each document required to be disclosed 

10 that is furnished by electronic delivery under 

11 such a plan shall include an explanation of how 

12 to request that all such documents be furnished 

13 on paper in written form; and 

14 (F) a plan is permitted to furnish a dupli15 cate electronic statement in any case in which 

16 the plan furnishes a paper pension benefit 

17 statement. 

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

19 subsection (a) shall apply with respect to plan years begin20 ning after December 31, 2023. 
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1 SEC. 315. SEPARATE APPLICATION OF TOP HEAVY RULES 

2 TO DEFINED CONTRIBUTION PLANS COV3 ERING EXCLUDIBLE EMPLOYEES. 

4 (a) IN GENERAL.—Section 416(c)(2) of the Internal 

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

6 the following: 

7 ‘‘(C) SEPARATE APPLICATION TO EMPLOY8 EES NOT MEETING AGE AND SERVICE REQUIRE9 MENTS.—If employees not meeting the age or 

10 service requirements of section 410(a)(1) (with11 out regard to subparagraph (B) thereof) are 

12 covered under a plan of the employer which 

13 meets the requirements of subparagraphs (A) 

14 and (B) separately with respect to such employ15 ees, such employees may be excluded from con16 sideration in determining whether any plan of 

17 the employer meets the requirements of sub18 paragraphs (A) and (B).’’. 

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

20 subsection (a) shall apply to plan years beginning after 

21 the date of the enactment of this Act. 

22 SEC. 316. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 

23 DISTRIBUTION LIMITED TO 3 YEARS. 

24 (a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the 

25 Internal Revenue Code of 1986 is amended by striking 

26 ‘‘may make’’ and inserting ‘‘may, at any time during the 
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1 3-year period beginning on the day after the date on which 

2 such distribution was received, make’’. 

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

4 this section shall take effect as if included in the enact5 ment of section 113 of the Setting Every Community Up 

6 for Retirement Enhancement Act of 2019. 

7 SEC. 317. EMPLOYER MAY RELY ON EMPLOYEE CERTI8 FYING THAT DEEMED HARDSHIP DISTRIBU9 TION CONDITIONS ARE MET. 

10 (a) CASH OR DEFERRED ARRANGEMENTS.—Section 

11 401(k)(14) of the Internal Revenue Code of 1986 is 

12 amended by adding at the end the following new subpara13 graph: 

14 ‘‘(C) EMPLOYEE CERTIFICATION.—In de15 termining whether a distribution is upon the 

16 hardship of an employee, the administrator of 

17 the plan may rely on a certification by the em18 ployee that the distribution is on account of a 

19 financial need of a type that is deemed in regu20 lations prescribed by the Secretary to be an im21 mediate and heavy financial need and that such 

22 distribution is not in excess of the amount re23 quired to satisfy such financial need.’’. 

24 (b) 403(b) PLANS.— 
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1 (1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) 

2 of such Code is amended by adding at the end the 

3 following new subparagraph: 

4 ‘‘(D) EMPLOYEE CERTIFICATION.—In de5 termining whether a distribution is upon the fi6 nancial hardship of an employee, the adminis7 trator of the plan may rely on a certification by 

8 the employee that the distribution is on account 

9 of a financial need of a type that is deemed in 

10 regulations prescribed by the Secretary to be an 

11 immediate and heavy financial need and that 

12 such distribution is not in excess of the amount 

13 required to satisfy such financial need.’’. 

14 (2) ANNUITY CONTRACTS.—Section 403(b)(11) 

15 of such Code is amended by adding at the end the 

16 following: ‘‘In determining whether a distribution is 

17 upon hardship of an employee, the administrator of 

18 the plan may rely on a certification by the employee 

19 that the distribution is on account of a financial 

20 need of a type that is deemed in regulations pre21 scribed by the Secretary to be an immediate and 

22 heavy financial need and that such distribution is 

23 not in excess of the amount required to satisfy such 

24 financial need.’’. 
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1 (c) 457(b) PLAN.—Section 457(d) of such Code is 

2 amended by adding at the end the following new para3 graph: 

4 ‘‘(4) PARTICIPANT CERTIFICATION.—In deter5 mining whether a distribution to a participant is 

6 made when the participant is faced with an unfore7 seeable emergency, the administrator of a plan 

8 maintained by an eligible employer described in sub9 section (e)(1)(A) may rely on a certification by the 

10 participant that the distribution is made when the 

11 participant is faced with unforeseeable emergency of 

12 a type that is described in regulations prescribed by 

13 the Secretary as an unforeseeable emergency and 

14 that the distribution is not in excess of the amount 

15 reasonably necessary to satisfy the emergency 

16 need.’’. 

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

18 this section shall apply to plan years beginning after De19 cember 31, 2022. 

20 SEC. 318. PENALTY-FREE WITHDRAWALS FROM RETIRE21 MENT PLANS FOR INDIVIDUALS IN CASE OF 

22 DOMESTIC ABUSE. 

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

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

25 the following new subparagraph: 
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1 ‘‘(I) DISTRIBUTIONS FROM RETIREMENT

2 PLANS IN CASE OF DOMESTIC ABUSE.— 

3 ‘‘(i) IN GENERAL.—Any eligible dis4 tribution to a domestic abuse victim. 

5 ‘‘(ii) LIMITATION.—The aggregate 

6 amount which may be treated as an eligi7 ble distribution to a domestic abuse victim 

8 by any individual shall not exceed an 

9 amount equal to the lesser of— 

10 ‘‘(I) $10,000, or 

11 ‘‘(II) 50 percent of the present 

12 value of the nonforfeitable accrued 

13 benefit of the employee under the 

14 plan. 

15 ‘‘(iii) ELIGIBLE DISTRIBUTION TO A

16 DOMESTIC ABUSE VICTIM.—For purposes 

17 of this subparagraph— 

18 ‘‘(I) IN GENERAL.—A distribu19 tion shall be treated as an eligible dis20 tribution to a domestic abuse victim if 

21 such distribution is from an applicable 

22 eligible retirement plan to an indi23 vidual and made during the 1-year pe24 riod beginning on any date on which 

25 the individual is a victim of domestic 
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1 abuse by a spouse or domestic part2 ner. 

3 ‘‘(II) DOMESTIC ABUSE.—The 

4 term ‘domestic abuse’ means physical, 

5 psychological, sexual, emotional, or 

6 economic abuse, including efforts to 

7 control, isolate, humiliate, or intimi8 date the victim, or to undermine the 

9 victim’s ability to reason independ10 ently, including by means of abuse of 

11 the victim’s child or another family 

12 member living in the household. 

13 ‘‘(iv) TREATMENT OF PLAN DISTRIBU14 TIONS.— 

15 ‘‘(I) IN GENERAL.—If a distribu16 tion to an individual would (without 

17 regard to clause (ii)) be an eligible 

18 distribution to a domestic abuse vic19 tim , a plan shall not be treated as 

20 failing to meet any requirement of 

21 this title merely because the plan 

22 treats the distribution as an eligible 

23 distribution to a domestic abuse vic24 tim, unless the aggregate amount of 

25 such distributions from all plans 
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1 maintained by the employer (and any 

2 member of any controlled group which 

3 includes the employer) to such indi4 vidual exceeds the limitation under 

5 clause (ii). 

6 ‘‘(II) CONTROLLED GROUP.—For 

7 purposes of subclause (I), the term 

8 ‘controlled group’ means any group 

9 treated as a single employer under 

10 subsection (b), (c), (m), or (o) of sec11 tion 414. 

12 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

13 REPAID.— 

14 ‘‘(I) IN GENERAL.—Any indi15 vidual who receives a distribution de16 scribed in clause (i) may, at any time 

17 during the 3-year period beginning on 

18 the day after the date on which such 

19 distribution was received, make one or 

20 more contributions in an aggregate 

21 amount not to exceed the amount of 

22 such distribution to an applicable eli23 gible retirement plan of which such 

24 individual is a beneficiary and to 

25 which a rollover contribution of such 
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1 distribution could be made under sec2 tion 402(c), 403(a)(4), 403(b)(8), 

3 408(d)(3), or 457(e)(16), as the case 

4 may be. 

5 ‘‘(II) LIMITATION ON CONTRIBU6 TIONS TO APPLICABLE ELIGIBLE RE7 TIREMENT PLANS OTHER THAN

8 IRAs.—The aggregate amount of con9 tributions made by an individual 

10 under subclause (I) to any applicable 

11 eligible retirement plan which is not 

12 an individual retirement plan shall not 

13 exceed the aggregate amount of eligi14 ble distributions to a domestic abuse 

15 victim which are made from such plan 

16 to such individual. Subclause (I) shall 

17 not apply to contributions to any ap18 plicable eligible retirement plan which 

19 is not an individual retirement plan 

20 unless the individual is eligible to 

21 make contributions (other than those 

22 described in subclause (I)) to such ap23 plicable eligible retirement plan. 

24 ‘‘(III) TREATMENT OF REPAY25 MENTS OF DISTRIBUTIONS FROM AP-
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1 PLICABLE ELIGIBLE RETIREMENT

2 PLANS OTHER THAN IRAS.—If a con3 tribution is made under subclause (I) 

4 with respect to an eligible distribution 

5 to a domestic abuse victim from an 

6 applicable eligible retirement plan 

7 other than an individual retirement 

8 plan, then the taxpayer shall, to the 

9 extent of the amount of the contribu10 tion, be treated as having received 

11 such distribution in an eligible rollover 

12 distribution (as defined in section 

13 402(c)(4)) and as having transferred 

14 the amount to the applicable eligible 

15 retirement plan in a direct trustee to 

16 trustee transfer within 60 days of the 

17 distribution. 

18 ‘‘(IV) TREATMENT OF REPAY19 MENTS FOR DISTRIBUTIONS FROM

20 IRAS.—If a contribution is made 

21 under subclause (I) with respect to an 

22 eligible distribution to a domestic 

23 abuse victim from an individual retire24 ment plan, then, to the extent of the 

25 amount of the contribution, such dis-
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1 tribution shall be treated as a dis2 tribution described in section 

3 408(d)(3) and as having been trans4 ferred to the applicable eligible retire5 ment plan in a direct trustee to trust6 ee transfer within 60 days of the dis7 tribution. 

8 ‘‘(vi) DEFINITION AND SPECIAL

9 RULES.—For purposes of this subpara10 graph: 

11 ‘‘(I) APPLICABLE ELIGIBLE RE12 TIREMENT PLAN.—The term ‘applica13 ble eligible retirement plan’ means an 

14 eligible retirement plan (as defined in 

15 section 402(c)(8)(B)) other than a de16 fined benefit plan. 

17 ‘‘(II) EXEMPTION OF DISTRIBU18 TIONS FROM TRUSTEE TO TRUSTEE

19 TRANSFER AND WITHHOLDING

20 RULES.—For purposes of sections 

21 401(a)(31), 402(f), and 3405, an eli22 gible distribution to a domestic abuse 

23 victim shall not be treated as an eligi24 ble rollover distribution. 
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1 ‘‘(III) DISTRIBUTIONS TREATED

2 AS MEETING PLAN DISTRIBUTION RE3 QUIREMENTS; SELF-CERTIFICATION.— 

4 Any distribution which the employee 

5 or participant certifies as being an eli6 gible distribution to a domestic abuse 

7 victim shall be treated as meeting the 

8 requirements of sections 

9 401(k)(2)(B)(i), 403(b)(7)(A)(i), 

10 403(b)(11), and 457(d)(1)(A).’’. 

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

12 this section shall apply to distributions made after the 

13 date of the enactment of this Act. 

14 SEC. 319. REFORM OF FAMILY ATTRIBUTION RULES. 

15 (a) CONTROLLED GROUPS.—Section 414(b) of the 

16 Internal Revenue Code of 1986 is amended— 

17 (1) by striking ‘‘For purposes of’’ and inserting 

18 the following: 

19 ‘‘(1) IN GENERAL.—For purposes of’’, and 

20 (2) by adding at the end the following new 

21 paragraphs: 

22 ‘‘(2) SPECIAL RULES FOR APPLYING FAMILY

23 ATTRIBUTION.—For purposes of applying the attri24 bution rules under section 1563 with respect to 

25 paragraph (1), the following rules apply: 
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1 ‘‘(A) Community property laws shall be 

2 disregarded for purposes of determining owner3 ship. 

4 ‘‘(B) Except as provided by the Secretary, 

5 stock of an individual not attributed under sec6 tion 1563(e)(5) to such individual’s spouse shall 

7 not be attributed to such spouse by reason of 

8 section 1563(e)(6)(A). 

9 ‘‘(C) Except as provided by the Secretary, 

10 in the case of stock in different corporations 

11 that is attributed to a child under section 

12 1563(e)(6)(A) from each parent, and is not at13 tributed to such parents as spouses under sec14 tion 1563(e)(5), such attribution to the child 

15 shall not by itself result in such corporations 

16 being members of the same controlled group. 

17 ‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS

18 SATISFYING THIS SECTION.—If the application of 

19 paragraph (2) causes two or more entities to be a 

20 controlled group, or to no longer be in a controlled 

21 group, such change shall be treated as a transaction 

22 to which section 410(b)(6)(C) applies.’’. 

23 (b) AFFILIATED SERVICE GROUPS.—Section 

24 414(m)(6)(B) of such Code is amended— 
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1 (1) by striking ‘‘OWNERSHIP.—In determining’’ 

2 and inserting the following: ‘‘OWNERSHIP.— 

3 ‘‘(i) IN GENERAL.—In determining’’, 

4 and 

5 (2) by adding at the end the following new 

6 clauses: 

7 ‘‘(ii) SPECIAL RULES FOR APPLYING

8 FAMILY ATTRIBUTION.—For purposes of 

9 applying the attribution rules under section 

10 318 with respect to clause (i), the following 

11 rules apply: 

12 ‘‘(I) Community property laws 

13 shall be disregarded for purposes of 

14 determining ownership. 

15 ‘‘(II) Except as provided by the 

16 Secretary, stock of an individual not 

17 attributed under section 

18 318(a)(1)(A)(i) to such individual’s 

19 spouse shall not be attributed by rea20 son of section 318(a)(1)(A)(ii) to such 

21 spouse from a child who has not at22 tained the age of 21 years. 

23 ‘‘(III) Except as provided by the 

24 Secretary, in the case of stock in dif25 ferent corporations that is attributed 
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1 under section 318(a)(1)(A)(ii) to a 

2 child who has not attained the age of 

3 21 years from each parent, and is not 

4 attributed to such parents as spouses 

5 under section 318(a)(1)(A)(i), such 

6 attribution to the child shall not by 

7 itself result in such corporations being 

8 members of the same affiliated service 

9 group. 

10 ‘‘(iii) PLAN SHALL NOT FAIL TO BE

11 TREATED AS SATISFYING THIS SECTION.— 

12 If the application of clause (ii) causes two 

13 or more entities to be an affiliated service 

14 group, or to no longer be in an affiliated 

15 service group, such change shall be treated 

16 as a transaction to which section 

17 410(b)(6)(C) applies.’’. 

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

19 this section shall apply to plan years beginning on or after 

20 the date of the enactment of this Act. 
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1 SEC. 320. AMENDMENTS TO INCREASE BENEFIT ACCRUALS 

2 UNDER PLAN FOR PREVIOUS PLAN YEAR AL3 LOWED UNTIL EMPLOYER TAX RETURN DUE 

4 DATE. 

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

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

7 the following new paragraph: 

8 ‘‘(3) RETROACTIVE PLAN AMENDMENTS THAT

9 INCREASE BENEFIT ACCRUALS.—If— 

10 ‘‘(A) an employer amends a stock bonus, 

11 pension, profit-sharing, or annuity plan to in12 crease benefits accrued under the plan effective 

13 for the preceding plan year (other than increas14 ing the amount of matching contributions (as 

15 defined in subsection (m)(4)(A))), 

16 ‘‘(B) such amendment would not otherwise 

17 cause the plan to fail to meet any of the re18 quirements of this subchapter, and 

19 ‘‘(C) such amendment is adopted before 

20 the time prescribed by law for filing the return 

21 of the employer for a taxable year (including 

22 extensions thereof) during which such amend23 ment is effective, 

24 the employer may elect to treat such amendment as 

25 having been adopted as of the last day of the plan 

26 year in which the amendment is effective.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to plan years beginning after De3 cember 31, 2023. 

4 SEC. 321. RETROACTIVE FIRST YEAR ELECTIVE DEFER5 RALS FOR SOLE PROPRIETORS. 

6 (a) IN GENERAL.—Section 401(b)(2) of the Internal 

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

8 the following: ‘‘In the case of an individual who owns the 

9 entire interest in an unincorporated trade or business, and 

10 who is the only employee of such trade or business, any 

11 elective deferrals (as defined in section 402(g)(3)) under 

12 a qualified cash or deferred arrangement to which the pre13 ceding sentence applies, which are made by such individual 

14 before the time for filing the return of such individual for 

15 the taxable year (determined without regard to any exten16 sions) ending after or with the end of the plan’s first plan 

17 year, shall be treated as having been made before the end 

18 of such first plan year.’’. 

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

20 this section shall apply to plan years beginning after the 

21 date of the enactment of this Act. 
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1 SEC. 322. LIMITING CESSATION OF IRA TREATMENT TO 

2 PORTION OF ACCOUNT INVOLVED IN A PRO3 HIBITED TRANSACTION. 

4 (a) IN GENERAL.—Section 408(e)(2)(A) of the Inter5 nal Revenue Code of 1986 is amended by striking ‘‘such 

6 account ceases to be an individual retirement account’’ 

7 and inserting the following: ‘‘the amount involved (as de8 fined in section 4975(f)(4)) in such transaction shall be 

9 treated as distributed to the individual’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 408(e)(2)(B) of such Code is 

12 amended to read as follows: 

13 ‘‘(B) ACCOUNT TREATED AS DISTRIBUTING

14 POTION OF ASSETS USED IN PROHIBITED

15 TRANSACTION.—In any case in which a portion 

16 of an individual retirement account is treated as 

17 distributed under subparagraph (A) as of the 

18 first day of any taxable year, paragraph (1) of 

19 subsection (d) applies as if there were a dis20 tribution on such first day in an amount equal 

21 to the fair market value of such portion, deter22 mined as of the date on which the transaction 

23 prohibited by section 4975 occurs.’’. 

24 (A) by striking ‘‘ALL ITS ASSETS.—In any 

25 case’’ and all that follows through ‘‘by reason 

26 of subparagraph (A)’’ and inserting the fol-
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1 lowing: ‘‘PORTION OF ASSETS USED IN PROHIB2 ITED TRANSACTION.—In any case in which a 

3 portion of an individual retirement account is 

4 treated as distributed under subparagraph 

5 (A)’’, and 

6 (B) by striking ‘‘all assets in the account’’ 

7 and inserting ‘‘such portion’’. 

8 (2) Section 4975(c)(3) of such Code is amended 

9 by striking ‘‘the account ceases’’ and all that follows 

10 and inserting the following: ‘‘the portion of the ac11 count used in the transaction is treated as distrib12 uted under paragraph (2)(A) or (4) of section 

13 408(e).’’. 

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

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 SEC. 323. REVIEW OF PENSION RISK TRANSFER INTERPRE18 TIVE BULLETIN. 

19 Not later than 1 year after the date of enactment 

20 of this Act, the Secretary of Labor shall— 

21 (1) review section 2509.95–1 of title 29, Code 

22 of Federal Regulations (relating to the fiduciary 

23 standards under the Employee Retirement Income 

24 Security Act of 1974 when selecting an annuity pro25 vider for a defined benefit pension plan) to deter-
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1 mine whether amendments to such section are war2 ranted; and 

3 (2) report to Congress on the findings of such 

4 review, including an assessment of any risk to par5 ticipants. 

6 TITLE IV—TECHNICAL 

7 AMENDMENTS 

8 SEC. 401. AMENDMENTS RELATING TO SETTING EVERY 

9 COMMUNITY UP FOR RETIREMENT ENHANCE10 MENT ACT OF 2019. 

11 (a) TECHNICAL AMENDMENTS.— 

12 (1) AMENDMENTS RELATING TO SECTION

13 103.— 

14 (A) Section 401(k)(12)(G) of the Internal 

15 Revenue Code of 1986 is amended by striking 

16 ‘‘the requirements under subparagraph (A)(i)’’ 

17 and inserting ‘‘the contribution requirements 

18 under subparagraph (B) or (C)’’. 

19 (B) Section 401(k)(13)(D)(iv) of such 

20 Code is amended by striking ‘‘and (F)’’ and in21 serting ‘‘and (G)’’. 

22 (C) Section 401(m)(12) of such Code is 

23 amended by striking ‘‘and’’ at the end of sub24 paragraph (A), by redesignating subparagraph 

25 (B) as subparagraph (C), and by inserting after 
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1 subparagraph (A) (as so amended) the fol2 lowing new subparagraph: 

3 ‘‘(B) meets the notice requirements of sub4 section (k)(13)(E), and’’. 

5 (2) AMENDMENT RELATING TO SECTION 112.— 

6 Section 401(k)(15)(B)(i)(II) of such Code is amend7 ed by striking ‘‘subsection (m)(2)’’ and inserting 

8 ‘‘paragraphs (2), (11), and (12) of subsection (m)’’. 

9 (3) AMENDMENT RELATING TO SECTION 114.— 

10 Section 401(a)(9)(C)(iii) of such Code is amended 

11 by striking ‘‘employee to whom clause (i)(II) ap12 plies’’ and inserting ‘‘employee (other than an em13 ployee to whom clause (i)(II) does not apply by rea14 son of clause (ii))’’. 

15 (4) AMENDMENT RELATING TO SECTION 116.— 

16 Section 4973(b) of such Code is amended by adding 

17 at the end of the flush matter the following: ‘‘Such 

18 term shall not include any designated nondeductible 

19 contribution (as defined in subparagraph (C) of sec20 tion 408(o)(2)) which does not exceed the non21 deductible limit under subparagraph (B) thereof by 

22 reason of an election under section 408(o)(5).’’. 

23 (5) EFFECTIVE DATE.—The amendments made 

24 by this subsection shall take effect as if included in 

25 the section of the Setting Every Community Up for 
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1 Retirement Enhancement Act of 2019 to which the 

2 amendment relates. 

3 (b) CLERICAL AMENDMENTS.— 

4 (1) Section 408(o)(5)(A) of such Code is 

5 amended by striking ‘‘subsection (b)’’ and inserting 

6 ‘‘section 219(b)’’. 

7 (2) Section 72(t)(2)(H)(vi)(IV) of such Code is 

8 amended by striking ‘‘403(b)(7)(A)(ii)’’ and insert9 ing ‘‘ 403(b)(7)(A)(i)’’. 

10 TITLE V—ADMINISTRATIVE 

11 PROVISIONS 

12 SEC. 501. PROVISIONS RELATING TO PLAN AMENDMENTS. 

13 (a) IN GENERAL.—If this section applies to any re14 tirement plan or contract amendment— 

15 (1) such retirement plan or contract shall be 

16 treated as being operated in accordance with the 

17 terms of the plan during the period described in sub18 section (b)(2)(A); and 

19 (2) except as provided by the Secretary of the 

20 Treasury (or the Secretary’s delegate), such retire21 ment plan shall not fail to meet the requirements of 

22 section 411(d)(6) of the Internal Revenue Code of 

23 1986 and section 204(g) of the Employee Retire24 ment Income Security Act of 1974 by reason of such 

25 amendment. 
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1 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

2 (1) IN GENERAL.—This section shall apply to 

3 any amendment to any retirement plan or annuity 

4 contract which is made— 

5 (A) pursuant to any amendment made by 

6 this Act or pursuant to any regulation issued by 

7 the Secretary of the Treasury or the Secretary 

8 of Labor (or a delegate of either such Sec9 retary) under this Act; and 

10 (B) on or before the last day of the first 

11 plan year beginning on or after January 1, 

12 2024, or such later date as the Secretary of the 

13 Treasury may prescribe. 

14 In the case of a governmental plan (as defined in 

15 section 414(d) of the Internal Revenue Code of 

16 1986), or an applicable collectively bargained plan, 

17 this paragraph shall be applied by substituting 

18 ‘‘2026’’ for ‘‘2024’’. For purposes of the preceding 

19 sentence, the term ‘‘applicable collectively bargained 

20 plan’’ means a plan maintained pursuant to 1 or 

21 more collective bargaining agreements between em22 ployee representatives and 1 or more employers rati23 fied before the date of enactment of this Act. 

24 (2) CONDITIONS.—This section shall not apply 

25 to any amendment unless— 
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1 (A) during the period— 

2 (i) beginning on the date the legisla3 tive or regulatory amendment described in 

4 paragraph (1)(A) takes effect (or in the 

5 case of a plan or contract amendment not 

6 required by such legislative or regulatory 

7 amendment, the effective date specified by 

8 the plan); and 

9 (ii) ending on the date described in 

10 paragraph (1)(B) (as modified by the sec11 ond sentence of paragraph (1)) (or, if ear12 lier, the date the plan or contract amend13 ment is adopted), 

14 the plan or contract is operated as if such plan 

15 or contract amendment were in effect; and 

16 (B) such plan or contract amendment ap17 plies retroactively for such period. 

18 (c) COORDINATION WITH OTHER PROVISIONS RE19 LATING TO PLAN AMENDMENTS.— 

20 (1) SECURE ACT.—Section 601(b)(1) of the 

21 Setting Every Community Up for Retirement En22 hancement Act of 2019 is amended— 

23 (A) by striking ‘‘January 1, 2022’’ in sub24 paragraph (B) and inserting ‘‘January 1, 

25 2024’’, and 
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1 (B) by striking ‘‘substituting ‘2024’ for 

2 ‘2022’.’’ in the flush matter at the end and in3 serting ‘‘substituting ‘2026’ for ‘2024’.’’. 

4 (2) CARES ACT.— 

5 (A) SPECIAL RULES FOR USE OF RETIRE6 MENT FUNDS.—Section 2202(c)(2)(A) of the 

7 CARES Act is amended by striking ‘‘January 

8 1, 2022’’ in clause (ii) and inserting ‘‘January 

9 1, 2024’’. 

10 (B) TEMPORARY WAIVER OF REQUIRED

11 MINIMUM DISTRIBUTIONS RULES FOR CERTAIN

12 RETIREMENT PLANS AND ACCOUNTS.—Section 

13 2203(c)(2)(B)(i) of the CARES Act is amend14 ed— 

15 (i) by striking ‘‘January 1, 2022’’ in 

16 subclause (II) and inserting ‘‘January 1, 

17 2024’’, and 

18 (ii) by striking ‘‘substituting ‘2024’ 

19 for ‘2022’.’’ in the flush matter at the end 

20 and inserting ‘‘substituting ‘2026’ for 

21 ‘2024’.’’. 

22 (C) TAXPAYER CERTAINTY AND DISASTER

23 TAX RELIEF ACT OF 2020.—Section 

24 302(d)(2)(A) of the Taxpayer Certainty and 

25 Disaster Tax Relief Act of 2020 is amended by 
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1 striking ‘‘January 1, 2022’’ in clause (ii) and 

2 inserting ‘‘January 1, 2024’’. 

3 TITLE VI—REVENUE 

4 PROVISIONS 

5 SEC. 601. SIMPLE AND SEP ROTH IRAS. 

6 (a) IN GENERAL.—Section 408A of the Internal Rev7 enue Code of 1986 is amended by striking subsection (f). 

8 (b) RULES RELATING TO SIMPLIFIED EMPLOYEE

9 PENSIONS.— 

10 (1) CONTRIBUTIONS.—Section 402(h)(1) of 

11 such Code is amended by striking ‘‘and’’ at the end 

12 of subparagraph (A), by striking the period at the 

13 end of subparagraph (B) and inserting ‘‘, and’’, and 

14 by adding at the end the following new subpara15 graph: 

16 ‘‘(C) in the case of any contributions pur17 suant to a simplified employer pension which 

18 are made to an individual retirement plan des19 ignated as a Roth IRA, such contribution shall 

20 not be excludable from gross income.’’. 

21 (2) DISTRIBUTIONS.—Section 402(h)(3) of such 

22 Code is amended by inserting ‘‘, or section 408A(d) 

23 in the case of an individual retirement plan des24 ignated as a Roth IRA’’ before the period at the 

25 end. 
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1 (3) ELECTION REQUIRED.—Section 408(k) of 

2 such Code is amended by redesignating paragraphs 

3 (7), (8), and (9) as paragraphs (8), (9), and (10), 

4 respectively, and by inserting the after paragraph 

5 (6) the following new paragraph: 

6 ‘‘(7) ROTH CONTRIBUTION ELECTION.—An in7 dividual retirement plan which is designated as a 

8 Roth IRA shall not be treated as a simplified em9 ployee pension under this subsection unless the em10 ployee elects for such plan to be so treated (at such 

11 time and in such manner as the Secretary may pro12 vide).’’. 

13 (c) RULES RELATING TO SIMPLE RETIREMENT AC14 COUNTS.— 

15 (1) ELECTION REQUIRED.—Section 408(p) of 

16 such Code is amended by adding at the end the fol17 lowing new paragraph: 

18 ‘‘(11) ROTH CONTRIBUTION ELECTION.—An in19 dividual retirement plan which is designated as a 

20 Roth IRA shall not be treated as a simple retirement 

21 account under this subsection unless the employee 

22 elects for such plan to be so treated (at such time 

23 and in such manner as the Secretary may pro24 vide).’’. 
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1 (2) ROLLOVERS.—Section 408A(e) of such 

2 Code is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 

5 case of any payment or distribution out of a simple 

6 retirement account (as defined in section 408(p)) 

7 with respect to which an election has been made 

8 under section 408(p)(11) and to which 72(t)(6) ap9 plies, the term ‘qualified rollover contribution’ shall 

10 not include any payment or distribution paid into an 

11 account other than another simple retirement ac12 count (as so defined).’’. 

13 (d) COORDINATION WITH ROTH CONTRIBUTION LIM14 ITATION.—Section 408A(c) of such Code is amended by 

15 adding at the end the following new paragraph: 

16 ‘‘(7) COORDINATION WITH LIMITATION FOR

17 SIMPLE RETIREMENT PLANS AND SEPS.—In the 

18 case of an individual on whose behalf contributions 

19 are made to a simple retirement account or a sim20 plified employee pension, the amount described in 

21 paragraph (2)(A) shall be increased by an amount 

22 equal to the contributions made on the individual’s 

23 behalf to such account or pension for the taxable 

24 year, but only to the extent such contributions— 
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1 ‘‘(A) in the case of a simplified retirement 

2 account— 

3 ‘‘(i) do not exceed the sum of the dol4 lar amount in effect for the taxable year 

5 under section 408(p)(2)(A)(ii) and the em6 ployer contribution required under sub7 paragraph (A)(iii) or (B)(i), as the case 

8 may be, of section 408(p)(2), and 

9 ‘‘(ii) do not cause the elective defer10 rals (as defined in section 402(g)(3)) on 

11 behalf of such individual to exceed the lim12 itation under section 402(g)(1) (taking 

13 into account any additional elective defer14 rals permitted under section 414(v)), or 

15 ‘‘(B) in the case of a simplified employee 

16 pension, do not exceed the limitation in effect 

17 under section 408(j).’’. 

18 (e) CONFORMING AMENDMENT.—Section 

19 408A(d)(2)(B) of such Code is amended by inserting ‘‘, 

20 or employer in the case of a simple retirement account 

21 (as defined in section 408(p)) or simplified employee pen22 sion (as defined in section 408(k)),’’ after ‘‘individual’s 

23 spouse’’. 
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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2022. 

4 SEC. 602. HARDSHIP WITHDRAWAL RULES FOR 403(b) 

5 PLANS. 

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

7 Revenue Code of 1986, as amended by the preceding pro8 visions of this Act, is amended by adding at the end the 

9 following new paragraph: 

10 ‘‘(16) SPECIAL RULES RELATING TO HARDSHIP

11 WITHDRAWALS.—For purposes of paragraphs (7) 

12 and (11)— 

13 ‘‘(A) AMOUNTS WHICH MAY BE WITH14 DRAWN.—The following amounts may be dis15 tributed upon hardship of the employee: 

16 ‘‘(i) Contributions made pursuant to a 

17 salary reduction agreement (within the 

18 meaning of section 3121(a)(5)(D)). 

19 ‘‘(ii) Qualified nonelective contribu20 tions (as defined in section 401(m)(4)(C)). 

21 ‘‘(iii) Qualified matching contributions 

22 described in section 401(k)(3)(D)(ii)(I). 

23 ‘‘(iv) Earnings on any contributions 

24 described in clause (i), (ii), or (iii). 
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1 ‘‘(B) NO REQUIREMENT TO TAKE AVAIL2 ABLE LOAN.—A distribution shall not be treat3 ed as failing to be made upon the hardship of 

4 an employee solely because the employee does 

5 not take any available loan under the plan.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Section 403(b)(7)(A)(i)(V) of such Code is 

8 amended by striking ‘‘in the case of contributions 

9 made pursuant to a salary reduction agreement 

10 (within the meaning of section 3121(a)(5)(D))’’ and 

11 inserting ‘‘subject to the provisions of paragraph 

12 (16)’’. 

13 (2) Paragraph (11) of section 403(b) of such 

14 Code, as amended by the preceding provisions of this 

15 Act, is amended— 

16 (A) by striking ‘‘in’’ in subparagraph (B) 

17 and inserting ‘‘subject to the provisions of para18 graph (16), in’’, and 

19 (B) by striking the penultimate sentence. 

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

21 this section shall apply to plan years beginning after De22 cember 31, 2022. 
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1 SEC. 603. ELECTIVE DEFERRALS GENERALLY LIMITED TO 

2 REGULAR CONTRIBUTION LIMIT. 

3 (a) APPLICABLE EMPLOYER PLANS.—Section 

4 414(v)(1) of the Internal Revenue Code of 1986 is amend5 ed by adding at the end the following: ‘‘Except in the case 

6 of an applicable employer plan described in paragraph 

7 (6)(A)(iv), the preceding sentence shall only apply if con8 tributions are designated Roth contributions (as defined 

9 in section 402A(c)(1)).’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 402(g)(1) of such Code is amended 

12 by striking subparagraph (C). 

13 (2) Section 457(e)(18)(A)(ii) of such Code is 

14 amended by inserting ‘‘the lesser of any designated 

15 Roth contributions made by the participant to the 

16 plan or’’ before ‘‘the applicable dollar amount’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2022. 

20 SEC. 604. OPTIONAL TREATMENT OF EMPLOYER MATCHING 

21 CONTRIBUTIONS AS ROTH CONTRIBUTIONS. 

22 (a) IN GENERAL.—Section 402A(a) of the Internal 

23 Revenue Code of 1986 is amended by redesignating para24 graph (2) as paragraph (3), by striking ‘‘and’’ at the end 

25 of paragraph (1), and by inserting after paragraph (1) the 

26 following new paragraph: 
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1 ‘‘(2) any designated Roth contribution which is 

2 made by the employer to the program on the em3 ployee’s behalf, and on account of the employee’s 

4 contribution, elective deferral, or (subject to the re5 quirements of section 401(m)(13)) qualified student 

6 loan payment, shall be treated as a matching con7 tribution for purposes of this chapter, except that 

8 such contribution shall not be excludable from gross 

9 income, and’’. 

10 (b) MATCHING INCLUDED IN QUALIFIED ROTH CON11 TRIBUTION PROGRAM.—Section 402A(b)(1) of such Code 

12 is amended— 

13 (1) by inserting ‘‘, or to have made on the em14 ployee’s behalf,’’ after ‘‘elect to make’’, and 

15 (2) by inserting ‘‘, or of matching contributions 

16 which may otherwise be made on the employee’s be17 half,’’ after ‘‘otherwise eligible to make’’. 

18 (c) DESIGNATED ROTH MATCHING CONTRIBU19 TIONS.—Section 402A(c)(1) of such Code is amended by 

20 inserting ‘‘or matching contribution’’ after ‘‘elective defer21 ral’’. 

22 (d) MATCHING CONTRIBUTION DEFINED.—Section 

23 402A(e) of such Code is amended by adding at the end 

24 the following: 
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1 ‘‘(3) MATCHING CONTRIBUTION.—The term 

2 ‘matching contribution’ means— 

3 ‘‘(A) any matching contribution described 

4 in section 401(m)(4)(A), and 

5 ‘‘(B) any contribution to an eligible de6 ferred compensation plan (as defined in section 

7 457(b)) by an eligible employer described in 

8 section 457(e)(1)(A) on behalf of an employee 

9 and on account of such employee’s elective de10 ferral under such plan.’’. 

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

12 this section shall apply to contributions made after the 

13 date of the enactment of this Act. 

14 TITLE VII—BUDGETARY 

15 EFFECTS 

16 SEC. 701. DETERMINATION OF BUDGETARY EFFECTS. 

17 The budgetary effects of this Act, for the purpose of 

18 complying with the Statutory Pay-As-You-Go Act of 2010, 

19 shall be determined by reference to the latest statement 

20 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

21 Act, submitted for printing in the Congressional Record 

22 by the Chairman of the House Budget Committee, pro-
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1 vided that such statement has been submitted prior to the 

2 vote on passage. 

Passed the House of Representatives March 29, 

2022. 

Attest: 

Clerk. 

117TH CONGRESS 

2D SESSION H. R. 2954 

AN ACT 

To increase retirement savings, simplify and clarify 

retirement plan rules, and for other purposes.