Responsible Legislating Act

To advance responsible policies. 1. Short title This Act may be cited as the Responsible Legislating Act I 101. Livestock mandatory reporting extension (a) In general Section 260 of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1636i 2023 2024 (b) Conforming amendment Section 942 of the Livestock Mandatory Reporting Act of 1999 ( 7 U.S.C. 1635 Public Law 106–78 2023 2024 II 201. Education for separating members of the armed forces regarding registered apprenticeships Section 1144(b)(1) of title 10, United States Code, is amended by inserting (including apprenticeship programs registered under the Act of August 16, 1937 (50 Stat. 664; commonly referred to as the National Apprenticeship Act employment opportunities 202. Websites regarding apprenticeship programs (a) Website under the jurisdiction of secretary of labor The Assistant Secretary of Labor for Veterans’ Employment and Training, in coordination with the Secretary of Veterans Affairs, shall establish a user-friendly website (or update an existing website) that is available to the public on which veterans can find information about apprenticeship programs registered under the Act of August 16, 1937 (50 Stat. 664; commonly referred to as the National Apprenticeship Act (1) A description, including any cost to a veteran. (2) Contact information. (3) Whether the program has been endorsed by a veterans service organization or nonprofit organization that caters to veterans. (4) Whether the program prefers to hire veterans. (5) Each certification or degree an individual earns by completing the program. (b) Coordination with other website The Assistant Secretary shall update all information regarding programs for veterans listed on apprenticeship.gov (or any successor website) to include the information specified under subsection (a). III 301. Sense of congress It is the sense of Congress that— (1) it is in the best national and homeland security interests of the United States for Federal agencies to retain the specialized knowledge and experience of individuals who suffer an injury or illness while serving in a covered position (as defined under the amendments made by this Act); and (2) Federal agencies should ensure, to the greatest extent possible, that an individual who can no longer carry out the duties of a covered position, and is reappointed to a position in the civil service that is not a covered position, is reappointed within the same Federal agency, in the same geographic location, and at a level of pay commensurate to the position which the individual held immediately prior to such injury or illness. 302. Retirement for certain employees (a) CSRS Section 8336(c) of title 5, United States Code, is amended by adding at the end the following: (3) (A) In this paragraph— (i) the term affected individual (I) is performing service in a covered position; (II) while on duty, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or subsection (e), (m), or (n), as applicable; (III) because of the illness or injury described in subclause (II), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the agency in which the individual was serving when such individual incurred the illness or injury; and (IV) is appointed to a position in the civil service that— (aa) is not a covered position; and (bb) is within an agency that regularly appoints individuals to supervisory or administrative positions related to the activities of the former covered position of the individual; (ii) the term covered position (B) Unless an affected individual files an election described in subparagraph (E), creditable service by the affected individual in a position described in subparagraph (A)(i)(IV) shall be treated as creditable service in a covered position for purposes of this chapter and determining the amount to be deducted and withheld from the pay of the affected individual under section 8334. (C) Subparagraph (B) shall only apply if the affected employee transitions to a position described in subparagraph (A)(i)(IV) without a break in service exceeding 3 days. (D) The service of an affected individual shall no longer be eligible for treatment under subparagraph (B) if such service occurs after the individual— (i) is transferred to a supervisory or administrative position related to the activities of the former covered position of the individual; or (ii) meets the age and service requirements that would subject the individual to mandatory separation under section 8335 if such individual had remained in the former covered position. (E) In accordance with procedures established by the Director of the Office of Personnel Management, an affected individual may file an election to have any creditable service performed by the affected individual treated in accordance with this chapter without regard to subparagraph (B). (F) Nothing in this paragraph shall be construed to apply to such affected individual any other pay-related laws or regulations applicable to a covered position. . (b) FERS (1) In general Section 8412(d) of title 5, United States Code, is amended— (A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (B) by inserting (1) An employee (C) by adding at the end the following: (2) (A) In this paragraph— (i) the term affected individual (I) is performing service in a covered position; (II) while on duty, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or subsection (e), as applicable; (III) because of the illness or injury described in subclause (II), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the agency in which the individual was serving when such individual incurred the illness or injury; and (IV) is appointed to a position in the civil service that— (aa) is not a covered position; and (bb) is within an agency that regularly appoints individuals to supervisory or administrative positions related to the activities of the former covered position of the individual; (ii) the term covered position (B) Unless an affected individual files an election described in subparagraph (E), creditable service by the affected individual in a position described in subparagraph (A)(i)(IV) shall be treated as creditable service in a covered position for purposes of this chapter and determining the amount to be deducted and withheld from the pay of the affected individual under section 8422. (C) Subparagraph (B) shall only apply if the affected employee transitions to a position described in subparagraph (A)(i)(IV) without a break in service exceeding 3 days. (D) The service of an affected individual shall no longer be eligible for treatment under subparagraph (B) if such service occurs after the individual— (i) is transferred to a supervisory or administrative position related to the activities of the former covered position of the individual; or (ii) meets the age and service requirements that would subject the individual to mandatory separation under section 8425 if such individual had remained in the former covered position. (E) In accordance with procedures established by the Director of the Office of Personnel Management, an affected individual may file an election to have any creditable service performed by the affected individual treated in accordance with this chapter without regard to subparagraph (B). (F) Nothing in this paragraph shall be construed to apply to such affected individual any other pay-related laws or regulations applicable to a covered position. . (2) Technical and conforming amendments (A) Chapter 84 (i) in section 8414(b)(3), by inserting (1) subsection (d) (ii) in section 8415— (I) in subsection (e), in the matter preceding paragraph (1), by inserting (1) subsection (d) (II) in subsection (h)(2)(A), by striking (d)(2) (d)(1)(B) (iii) in section 8421(a)(1), by inserting (1) (d) (iv) in section 8421a(b)(4)(B)(ii), by inserting (1) section 8412(d) (v) in section 8425, by inserting (1) section 8412(d) (vi) in section 8462(c)(3)(B)(ii), by inserting (1) subsection (d) (B) Title VIII of the Foreign Service Act of 1980 ( 22 U.S.C. 4041 et seq. (i) in section 805(d)(5) ( 22 U.S.C. 4045(d)(5) (1) or 8412(d) (ii) in section 812(a)(2)(B) ( 22 U.S.C. 4052(a)(2)(B) (1) or 8412(d) (c) CIA employees Section 302 of the Central Intelligence Agency Retirement Act ( 50 U.S.C. 2152 (d) Employees disabled on duty (1) Definitions In this subsection— (A) the term affected employee chapter 84 (i) is performing service in a position designated under subsection (a); (ii) while on duty in the position designated under subsection (a), becomes ill or is injured as a direct result of the performance of such duties before the date on which the employee becomes entitled to an annuity under section 233 of this Act or section 8412(d)(1) of title 5, United States Code; (iii) because of the illness or injury described in clause (ii), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the Director; and (iv) is appointed to a position in the civil service that is not a covered position but is within the Agency; and (B) the term covered position (i) a law enforcement officer described in section 8331(20) or 8401(17) of title 5, United States Code; (ii) a customs and border protection officer described in section 8331(31) or 8401(36) of title 5, United States Code; (iii) a firefighter described in section 8331(21) or 8401(14) of title 5, United States Code; (iv) an air traffic controller described in section 8331(30) or 8401(35) of title 5, United States Code; (v) a nuclear materials courier described in section 8331(27) or 8401(33) of title 5, United States Code; (vi) a member of the United States Capitol Police; (vii) a member of the Supreme Court Police; (viii) an affected employee; or (ix) a special agent described in section 804(15) of the Foreign Service Act of 1980 ( 22 U.S.C. 4044(15) (2) Treatment of service after disability Unless an affected employee files an election described in paragraph (3), creditable service by the affected employee in a position described in paragraph (1)(A)(iv) shall be treated as creditable service in a covered position for purposes of this Act and chapter 84 (3) Break in service Paragraph (2) shall only apply if the affected employee transitions to a position described in paragraph (1)(A)(iv) without a break in service exceeding 3 days. (4) Limitation on treatment of service The service of an affected employee shall no longer be eligible for treatment under paragraph (2) if such service occurs after the employee is transferred to a supervisory or administrative position related to the activities of the former covered position of the employee. (5) Opt out An affected employee may file an election to have any creditable service performed by the affected employee treated in accordance with chapter 84 . (d) Foreign service retirement and disability system Section 806(a)(6) of the Foreign Service Act of 1980 ( 22 U.S.C. 4046(a)(6) (D) (i) In this subparagraph— (I) the term affected special agent (aa) is performing service as a special agent; (bb) while on duty as a special agent, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under section 811; (cc) because of the illness or injury described in item (bb), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the Secretary; and (dd) is appointed to a position in the Foreign Service that is not a covered position; and (II) the term covered position (aa) a law enforcement officer described in section 8331(20) or 8401(17) of title 5, United States Code; (bb) a customs and border protection officer described in section 8331(31) or 8401(36) of title 5, United States Code; (cc) a firefighter described in section 8331(21) or 8401(14) of title 5, United States Code; (dd) an air traffic controller described in section 8331(30) or 8401(35) of title 5, United States Code; (ee) a nuclear materials courier described in section 8331(27) or 8401(33) of title 5, United States Code; (ff) a member of the United States Capitol Police; (gg) a member of the Supreme Court Police; (hh) an employee of the Agency designated under section 302(a) of the Central Intelligence Agency Retirement Act ( 50 U.S.C. 2152(a) (ii) a special agent. (ii) Unless an affected special agent files an election described in clause (iv), creditable service by the affected special agent in a position described in clause (i)(I)(dd) shall be treated as creditable service as a special agent for purposes of this subchapter, including determining the amount to be deducted and withheld from the pay of the individual under section 805. (iii) Clause (ii) shall only apply if the special agent transitions to a position described in clause (i)(I)(dd) without a break in service exceeding 3 days. (iv) The service of an affected employee shall no longer be eligible for treatment under clause (ii) if such service occurs after the employee is transferred to a supervisory or administrative position related to the activities of the former covered position of the employee. (v) In accordance with procedures established by the Secretary, an affected special agent may file an election to have any creditable service performed by the affected special agent treated in accordance with this subchapter, without regard to clause (ii). . (e) Implementation (1) Office of personnel management Not later than 1 year after the date of enactment of this Act, the Director of the Office of Personnel Management shall promulgate regulations to carry out the amendments made by subsections (a) and (b). (2) CIA employees The Director of the Central Intelligence Agency shall promulgate regulations to carry out the amendment made by subsection (c). (3) Foreign service retirement and disability system The Secretary of State shall promulgate regulations to carry out the amendment made by subsection (d). (4) Agency certification The regulations promulgated to carry out the amendments made by this Act shall include a requirement that the head of the agency at which an affected employee or special agent (as the case may be) incurred the applicable illness or injury certifies that such illness or injury— (A) was incurred in the course of the employee’s or special agent’s duties; and (B) permanently precludes the employee or special agent from rendering useful and efficient service in the covered position but would not preclude the employee or special agent from continuing to serve in the Federal service. (5) Agency reappointment The regulations promulgated to carry out the amendments made by this Act shall ensure that, to the greatest extent possible, the head of each agency appoints affected employees or special agents to supervisory or administrative positions related to the activities of the former covered position of the employee or special agent. (6) Treatment of service The regulations promulgated to carry out the amendments made by this Act shall ensure that the creditable service of an affected employee or special agent (as the case may be) that is not in a covered position pursuant to an election made under such amendments shall be treated as the same type of service as the covered position in which the employee or agent suffered the qualifying illness or injury. (f) Effective date; applicability The amendments made by this Act— (1) shall take effect on the date of enactment of this Act; and (2) shall apply to an individual who suffers an illness or injury described in section 8336(c)(3)(A)(i)(II) or section 8412(d)(2)(A)(i)(II) of title 5, United States Code, as amended by this section, section 302(d)(1)(A)(ii) of the Central Intelligence Agency Retirement Act, as amended by this section, or section 806(a)(6)(D)(i)(I)(bb) of the Foreign Service Act of 1980, as amended by this section, on or after the date that is 2 years after the date of enactment of this Act. IV 401. Expanding automatic enrollment in retirement plans (a) In general Subpart B of part I of subchapter D of chapter 1 414A. Requirements related to automatic enrollment (a) In general Except as otherwise provided in this section— (1) an arrangement shall not be treated as a qualified cash or deferred arrangement described in section 401(k) unless such arrangement meets the automatic enrollment requirements of subsection (b), and (2) an annuity contract otherwise described in section 403(b)(1) which is purchased under a salary reduction agreement shall not be treated as described in such section unless such agreement meets the automatic enrollment requirements of subsection (b). (b) Automatic enrollment requirements (1) In general An arrangement or agreement meets the requirements of this subsection if such arrangement or agreement is an eligible automatic contribution arrangement (as defined in section 414(w)(3)) which meets the requirements of paragraphs (2) through (4). (2) Allowance of permissible withdrawals An eligible automatic contribution arrangement meets the requirements of this paragraph if such arrangement allows employees to make permissible withdrawals (as defined in section 414(w)(2)). (3) Minimum contribution percentage (A) In general An eligible automatic contribution arrangement meets the requirements of this paragraph if— (i) the uniform percentage of compensation contributed by the participant under such arrangement during the first year of participation is not less than 3 percent and not more than 10 percent (unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage), and (ii) effective for the first day of each plan year starting after each completed year of participation under such arrangement such uniform percentage is increased by 1 percentage point (to at least 10 percent, but not more than 15 percent) unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage. (B) Initial reduced ceiling for certain plans In the case of any eligible automatic contribution arrangement (other than an arrangement that meets the requirements of paragraph (12) or (13) of section 401(k)), for plan years ending before January 1, 2025, subparagraph (A)(ii) shall be applied by substituting 10 percent 15 percent (4) Investment requirements An eligible automatic contribution arrangement meets the requirements of this paragraph if amounts contributed pursuant to such arrangement, and for which no investment is elected by the participant, are invested in accordance with the requirements of section 2550.404c–5 of title 29, Code of Federal Regulations (or any successor regulations). (c) Exceptions For purposes of this section— (1) Simple plans Subsection (a) shall not apply to any simple plan (within the meaning of section 401(k)(11)). (2) Exception for plans or arrangements established before enactment of section (A) In general Subsection (a) shall not apply to— (i) any qualified cash or deferred arrangement established before the date of the enactment of this section, or (ii) any annuity contract purchased under a plan established before the date of the enactment of this section. (B) Post-enactment adoption of multiple employer plan Subparagraph (A) shall not apply in the case of an employer adopting after such date of enactment a plan maintained by more than one employer, and subsection (a) shall apply with respect to such employer as if such plan were a single plan. (3) Exception for governmental and church plans Subsection (a) shall not apply to any governmental plan (within the meaning of section 414(d)) or any church plan (within the meaning of section 414(e)). (4) Exception for new and small businesses (A) New business Subsection (a) shall not apply to any qualified cash or deferred arrangement, or any annuity contract purchased under a plan, while the employer maintaining such plan (and any predecessor employer) has been in existence for less than 3 years. (B) Small businesses Subsection (a) shall not apply to any qualified cash or deferred arrangement, or any annuity contract purchased under a plan, earlier than the date that is 1 year after the close of the first taxable year with respect to which the employer maintaining the plan normally employed more than 10 employees. (C) Treatment of multiple employer plans In the case of a plan maintained by more than 1 employer, subparagraphs (A) and (B) shall be applied separately with respect to each such employer, and all such employers to which subsection (a) applies (after the application of this paragraph) shall be treated as maintaining a separate plan for purposes of this section. . (b) Clerical amendment The table of sections for subpart B of part I of subchapter D of chapter 1 of such Code is amended by inserting after the item relating to section 414 the following new item: Sec. 414A. Requirements related to automatic enrollment. . (c) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2023. 402. Modification of credit for small employer pension plan startup costs (a) Increase in credit percentage for smaller employers Section 45E(e) (4) Increased credit for certain small employers In the case of an employer which would be an eligible employer under subsection (c) if section 408(p)(2)(C)(i) was applied by substituting 50 employees 100 employees 100 percent 50 percent . (b) Additional credit for employer contributions by certain small employers Section 45E of such Code, as amended by subsection (a), is amended by adding at the end the following new subsection: (f) Additional credit for employer contributions by certain eligible employers (1) In general In the case of an eligible employer, the credit allowed for the taxable year under subsection (a) (determined without regard to this subsection) shall be increased by an amount equal to the applicable percentage of employer contributions (other than any elective deferrals (as defined in section 402(g)(3)) by the employer to an eligible employer plan (other than a defined benefit plan (as defined in section 414(j))). (2) Limitations (A) Dollar limitation The amount determined under paragraph (1) (before the application of subparagraph (B)) with respect to any employee of the employer shall not exceed $1,000. (B) Credit phase-in In the case of any eligible employer which had for the preceding taxable year more than 50 employees, the amount determined under paragraph (1) (without regard to this subparagraph) shall be reduced by an amount equal to the product of— (i) the amount otherwise so determined under paragraph (1), multiplied by (ii) a percentage equal to 2 percentage points for each employee of the employer for the preceding taxable year in excess of 50 employees. (3) Applicable percentage For purposes of this section, the applicable percentage for the taxable year during which the eligible employer plan is established with respect to the eligible employer shall be 100 percent, and for taxable years thereafter 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% (4) Determination of eligible employer; number of employees For purposes of this subsection, whether an employer is an eligible employer and the number of employees of an employer shall be determined under the rules of subsection (c), except that paragraph (2) thereof shall only apply to the taxable year during which the eligible employer plan to which this section applies is established with respect to the eligible employer. . (c) Disallowance of deduction Section 45E(e)(2) of such Code is amended to read as follows: (2) Disallowance of deduction No deduction shall be allowed— (A) for that portion of the qualified startup costs paid or incurred for the taxable year which is equal to so much of the portion of the credit determined under subsection (a) as is properly allocable to such costs, and (B) for that portion of the employer contributions by the employer for the taxable year which is equal to so much of the credit increase determined under subsection (f) as is properly allocable to such contributions. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 403. Promotion of saver’s credit (a) In general The Secretary of the Treasury shall take such steps as the Secretary determines are necessary and appropriate to increase public awareness of the credit provided under section 25B (b) Report to congress (1) In general Not later than 90 days after the date of the enactment of this Act, the Secretary shall provide a report to Congress to summarize the anticipated promotion efforts of the Treasury under subsection (a). (2) Contents Such report shall include— (A) a description of plans for— (i) the development and distribution of digital and print materials, including the distribution of such materials to States for participants in State facilitated retirement savings programs; and (ii) the translation of such materials into the 10 most commonly spoken languages in the United States after English (as determined by reference to the most recent American Community Survey of the Bureau of the Census); and (B) such other information as the Secretary determines is necessary 404. Enhancement of saver’s credit (a) 50 percent credit rate Section 25B(a) the applicable percentage 50 percent (b) Adjusted gross income phaseouts Section 25B(b) of such Code is amended to read as follows: (b) Limitation For purposes of this section— (1) In general The amount of credit allowable under subsection (a) (determined without regard to this subsection) shall be reduced (but not below zero) by an amount which bears the same ratio to the credit otherwise so allowable as— (A) the excess (if any) of— (i) adjusted gross income of the taxpayer, over (ii) the threshold amount, bears to (B) the phaseout amount. (2) Threshold amount The term threshold amount (A) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $48,000, (B) in the case of a head of household, 75 percent of the amount in effect for the taxable year under subparagraph (A), and (C) in the case of any other individual, 50 percent of the amount in effect for the taxable year under subparagraph (A). (3) Phaseout amount The term phaseout amount (A) in the case of a joint return or a surviving spouse (as defined in 2(a)), $35,000, (B) in the case of a head of household (as defined in section 2(b)), 75 percent of the amount in effect for the taxable year under subparagraph (A), and (C) in the case of any other individual, 50 percent of the amount in effect for the taxable year under subparagraph (A). (4) Inflation adjustment (A) In general In the case of any taxable year beginning in a calendar year after 2026, the $48,000 dollar amount in paragraph (2) and the $35,000 in paragraph (3) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2022 calendar year 2016 (B) Rounding Any increase determined under subparagraph (A) that is not a multiple of $500 shall be rounded to the nearest multiple of $500. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026. 405. Enhancement of 403(b) plans (a) In general Section 403(b)(7)(A) if the amounts are to be invested in regulated investment company stock to be held in that custodial account if the amounts are to be held in that custodial account and invested in regulated investment company stock or a group trust intended to satisfy the requirements of Internal Revenue Service Revenue Ruling 81–100 (or any successor guidance) (b) Conforming amendment The heading of paragraph (7) of section 403(b) of such Code is amended by striking for regulated investment company stock (c) Effective date The amendments made by this section shall apply to amounts invested after December 31, 2022. 406. Increase in age for required beginning date for mandatory distributions (a) In general Section 401(a)(9)(C)(i)(I) age 72 the applicable age (b) Spouse beneficiaries; special rule for owners Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each amended by striking age 72 the applicable age (c) Applicable age Section 401(a)(9)(C) of such Code is amended by adding at the end the following new clause: (v) Applicable age (I) In the case of an individual who attains age 72 after December 31, 2022, and age 73 before January 1, 2030, the applicable age is 73. (II) In the case of an individual who attains age 73 after December 31, 2029, and age 74 before January 1, 2033, the applicable age is 74. (III) In the case of an individual who attains age 74 after December 31, 2032, the applicable age is 75. . (d) Conforming amendments The last sentence of section 408(b) of such Code is amended by striking age 72 the applicable age (determined under section 401(a)(9)(C)(v) for the calendar year in which such taxable year begins) (e) Effective date The amendments made by this section shall apply to distributions required to be made after December 31, 2022, with respect to individuals who attain age 72 after such date. 407. Indexing ira catch-up limit (a) In general Subparagraph (C) of section 219(b)(5) (iii) Indexing of catch-up limitation In the case of any taxable year beginning in a calendar year after 2023, the $1,000 amount under subparagraph (B)(ii) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2022 calendar year 2016 If any amount after adjustment under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023. 408. Higher catch-up limit to apply at age 62, 63, and 64 (a) In general (1) Plans other than simple plans Section 414(v)(2)(B)(i) ($10,000, in the case of an eligible participant who would attain age 62, but not age 65, before the close of the taxable year) (2) Simple plans Section 414(v)(2)(B)(ii) of such Code is amended by inserting the following before the period: ($5,000, in the case of an eligible participant who would attain age 62, but not age 65, before the close of the taxable year) (b) Cost-of-Living adjustments Subparagraph (C) of section 414(v)(2) of such Code is amended by adding at the end the following: In the case of a year beginning after December 31, 2023, the Secretary shall adjust annually the $10,000 amount in subparagraph (B)(i) and the $5,000 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2022. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023. 409. Pooled employer plans modification (a) In general Section 3(43)(B)(ii) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002(43)(B)(ii) (ii) designate a named fiduciary (other than an employer in the plan) to be responsible for collecting contributions to the plan and require such fiduciary to implement written contribution collection procedures that are reasonable, diligent, and systematic; . (b) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2022. 410. Multiple employer 403(b) plans (a) In general Section 403(b) (15) Multiple employer plans (A) In general Except in the case of a church plan, this subsection shall not be treated as failing to apply to an annuity contract solely by reason of such contract being purchased under a plan maintained by more than 1 employer. (B) Treatment of employers failing to meet requirements of plan (i) In general In the case of a plan maintained by more than 1 employer, this subsection shall not be treated as failing to apply to an annuity contract held under such plan merely because of one or more employers failing to meet the requirements of this subsection if such plan satisfies rules similar to the rules of section 413(e)(2) with respect to any such employer failure. (ii) Additional requirements in case of non-governmental plans A plan shall not be treated as meeting the requirements of this subparagraph unless the plan satisfies rules similar to the rules of subparagraph (A) or (B) of section 413(e)(1), except in the case of a multiple employer plan maintained solely by any of the following: A State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing. . (b) Annual registration for 403( b Section 6057 of such Code is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: (g) 403( b In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (15) thereof, such plan shall be treated as a single plan for purposes of this section. . (c) Annual information returns for 403( b Section 6058 of such Code is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: (f) 403( b In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (15) thereof, such plan shall be treated as a single plan for purposes of this section. . (d) Amendments to employee retirement income security act of 1974 (1) In general Section 3(43)(A) of the Employee Retirement Income Security Act of 1974 is amended— (A) in clause (ii), by striking section 501(a) of such Code or section 501(a) of such Code, a plan that consists of contracts described in section 403(b) of such Code, or (B) in the flush text at the end, by striking the plan. the plan, but such term shall include any program (other than a governmental plan) maintained for the benefit of the employees of more than 1 employer that consists of contracts described in section 403(b) of such Code and that meets the requirements of subparagraph (A) or (B) of section 413(e)(1) of such Code. (2) Conforming amendments Sections 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee Retirement Income Security Act of 1974 are each amended by striking section 401(a) of such Code or section 401(a) of such Code, a plan that consists of contracts described in section 403(b) of such Code, or (e) Regulations relating to employer failure To meet multiple employer plan requirements The Secretary of the Treasury (or the Secretary’s delegate) shall prescribe such regulations as may be necessary to clarify, in the case of plans to which section 403(b)(15) (f) Modification of model plan language, etc (1) Plan notifications The Secretary of the Treasury (or the Secretary’s delegate) shall modify the model plan language published under section 413(e)(5) (2) Model plans for multiple employer 403(b) non-governmental plans For plans to which section 403(b)(15)(A) (3) Educational outreach to employers exempt from tax The Secretary of the Treasury (or the Secretary’s delegate) shall provide education and outreach to increase awareness to employers described in section 501(c)(3) (g) No inference with respect to church plans Regarding any application of section 403(b) (h) Effective date (1) In general The amendments made by this section shall apply to plan years beginning after December 31, 2022. (2) Rule of construction Nothing in the amendments made by subsection (a) shall be construed as limiting the authority of the Secretary of the Treasury or the Secretary’s delegate (determined without regard to such amendment) to provide for the proper treatment of a failure to meet any requirement applicable under the Internal Revenue Code of 1986 with respect to one employer (and its employees) in the case of a plan to which section 403(b)(15) 411. Treatment of student loan payments as elective deferrals for purposes of matching contributions (a) In general Section 401(m)(4)(A) and , and (iii) subject to the requirements of paragraph (13), any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment. . (b) Qualified student loan payment Section 401(m)(4) of such Code is amended by adding at the end the following new subparagraph: (D) Qualified student loan payment The term qualified student loan payment (i) to the extent such payments in the aggregate for the year do not exceed an amount equal to— (I) the limitation applicable under section 402(g) for the year (or, if lesser, the employee’s compensation (as defined in section 415(c)(3)) for the year), reduced by (II) the elective deferrals made by the employee for such year, and (ii) if the employee certifies to the employer making the matching contribution under this paragraph that such payment has been made on such loan. For purposes of this subparagraph, the term qualified higher education expenses . (c) Matching contributions for qualified student loan payments Section 401(m) of such Code is amended by redesignating paragraph (13) as paragraph (14), and by inserting after paragraph (12) the following new paragraph: (13) Matching contributions for qualified student loan payments (A) In general For purposes of paragraph (4)(A)(iii), an employer contribution made to a defined contribution plan on account of a qualified student loan payment shall be treated as a matching contribution for purposes of this title if— (i) the plan provides matching contributions on account of elective deferrals at the same rate as contributions on account of qualified student loan payments, (ii) the plan provides matching contributions on account of qualified student loan payments only on behalf of employees otherwise eligible to receive matching contributions on account of elective deferrals, (iii) under the plan, all employees eligible to receive matching contributions on account of elective deferrals are eligible to receive matching contributions on account of qualified student loan payments, and (iv) the plan provides that matching contributions on account of qualified student loan payments vest in the same manner as matching contributions on account of elective deferrals. (B) Treatment for purposes of nondiscrimination rules, etc (i) Nondiscrimination rules For purposes of subparagraph (A)(iii), subsection (a)(4), and section 410(b), matching contributions described in paragraph (4)(A)(iii) shall not fail to be treated as available to an employee solely because such employee does not have debt incurred under a qualified education loan (as defined in section 221(d)(1)). (ii) Student loan payments not treated as plan contribution Except as provided in clause (iii), a qualified student loan payment shall not be treated as a contribution to a plan under this title. (iii) Matching contribution rules Solely for purposes of meeting the requirements of paragraph (11)(B) or (12) of this subsection, or paragraph (11)(B)(i)(II), (12)(B), or (13)(D) of subsection (k), a plan may treat a qualified student loan payment as an elective deferral or an elective contribution, whichever is applicable. (iv) Actual deferral percentage testing In determining whether a plan meets the requirements of subsection (k)(3)(A)(ii) for a plan year, the plan may apply the requirements of such subsection separately with respect to all employees who receive matching contributions described in paragraph (4)(A)(iii) for the plan year. (C) Employer may rely on employee certification The employer may rely on an employee certification of payment under paragraph (4)(D)(ii). . (d) Simple retirement accounts Section 408(p)(2) of such Code is amended by adding at the end the following new subparagraph: (F) Matching contributions for qualified student loan payments (i) In general Subject to the rules of clause (iii), an arrangement shall not fail to be treated as meeting the requirements of subparagraph (A)(iii) solely because under the arrangement, solely for purposes of such subparagraph, qualified student loan payments are treated as amounts elected by the employee under subparagraph (A)(i)(I) to the extent such payments do not exceed— (I) the applicable dollar amount under subparagraph (E) (after application of section 414(v)) for the year (or, if lesser, the employee’s compensation (as defined in section 415(c)(3)) for the year), reduced by (II) any other amounts elected by the employee under subparagraph (A)(i)(I) for the year. (ii) Qualified student loan payment For purposes of this subparagraph— (I) In general The term qualified student loan payment (II) Qualified higher education expenses The term qualified higher education expenses (iii) Applicable rules Clause (i) shall apply to an arrangement only if, under the arrangement— (I) matching contributions on account of qualified student loan payments are provided only on behalf of employees otherwise eligible to elect contributions under subparagraph (A)(i)(I), and (II) all employees otherwise eligible to participate in the arrangement are eligible to receive matching contributions on account of qualified student loan payments. . (e) 403( b Section 403(b)(12)(A) of such Code is amended by adding at the end the following: The fact that the employer offers matching contributions on account of qualified student loan payments as described in section 401(m)(13) shall not be taken into account in determining whether the arrangement satisfies the requirements of clause (ii) (and any regulation thereunder). (f) 457( b Section 457(b) of such Code is amended by adding at the end the following: A plan which is established and maintained by an employer which is described in subsection (e)(1)(A) shall not be treated as failing to meet the requirements of this subsection solely because the plan, or another plan maintained by the employer which meets the requirements of section 401(a) or 403(b), provides for matching contributions on account of qualified student loan payments as described in section 401(m)(13). (g) Regulatory authority The Secretary shall prescribe regulations for purposes of implementing the amendments made by this section, including regulations— (1) permitting a plan to make matching contributions for qualified student loan payments, as defined in sections 401(m)(4)(D) and 408(p)(2)(F) of the Internal Revenue Code of 1986, as added by this section, at a different frequency than matching contributions are otherwise made under the plan, provided that the frequency is not less than annually; (2) permitting employers to establish reasonable procedures to claim matching contributions for such qualified student loan payments under the plan, including an annual deadline (not earlier than 3 months after the close of each plan year) by which a claim must be made; and (3) promulgating model amendments which plans may adopt to implement matching contributions on such qualified student loan payments for purposes of sections 401(m), 408(p), 403(b), and 457(b) of the Internal Revenue Code of 1986. (h) Effective date The amendments made by this section shall apply to contributions made for plan years beginning after December 31, 2022. 412. Application of credit for small employer pension plan startup costs to employers which join an existing plan (a) In general Section 45E(d)(3)(A) effective effective with respect to the eligible employer (b) Effective date The amendment made by this section shall take effect as if included in the enactment of section 104 of the Setting Every Community Up for Retirement Enhancement Act of 2019. 413. Military spouse retirement plan eligibility credit for small employers (a) In general Subpart D of part IV of subchapter A of chapter 1 45U. Military spouse retirement plan eligibility credit for small employers (a) In general For purposes of section 38, in the case of any eligible small employer, the military spouse retirement plan eligibility credit determined under this section for any taxable year is an amount equal to the sum of— (1) $250 with respect to each military spouse who is an employee of such employer and who is eligible to participate in an eligible defined contribution plan of such employer at any time during such taxable year, plus (2) so much of the contributions made by such employer to all such plans with respect to such employee during such taxable year as do not exceed $250. (b) Limitation An individual shall only be taken into account as a military spouse under subsection (a) for the taxable year which includes the date on which such individual began participating in the eligible defined contribution plan of the employer and the 2 succeeding taxable years. (c) Eligible small employer For purposes of this section— (1) In general The term eligible small employer (2) Application of 2-year grace period A rule similar to the rule of section 408(p)(2)(C)(i)(II) shall apply for purposes of this section. (d) Military spouse For purposes of this section— (1) In general The term military spouse (2) Exclusion of highly compensated employees With respect to any employer, the term military spouse (e) Eligible defined contribution plan For purposes of this section, the term eligible defined contribution plan (1) military spouses employed by such employer are eligible to participate in such plan not later than the date which is 2 months after the date on which such individual begins employment with such employer, and (2) military spouses who are eligible to participate in such plan— (A) are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse would be eligible to receive under such plan after 2 years of service, and (B) immediately have a nonforfeitable right to the employee’s accrued benefit derived from employer contributions under such plan. (f) Aggregation rule All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one employer for purposes of this section. . (b) Credit allowed as part of general business credit Section 38(b) of such Code is amended by striking plus , plus (34) in the case of an eligible small employer (as defined in section 45U(c)), the military spouse retirement plan eligibility credit determined under section 45U(a). . (c) Specified credit for purposes of certified professional employer organizations Section 3511(d)(2) of such Code is amended by redesignating subparagraphs (F), (G), and (H) as subparagraphs (G), (H), and (I), respectively, and by inserting after subparagraph (E) the following new subparagraph: (F) section 45U (military spouse retirement plan eligibility credit), . (d) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45U. Military spouse retirement plan eligibility credit for small employers. . (e) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 414. Small immediate financial incentives for contributing to a plan (a) In general Subparagraph (A) of section 401(k)(4) (other than a de minimis financial incentive) any other benefit (b) Section 403(b) plans Subparagraph (A) of section 403(b)(12) of such Code, as amended by the preceding provisions of this Act, is amended by adding at the end the following: A plan shall not fail to satisfy clause (ii) solely by reason of offering a de minimis financial incentive to employees to elect to have the employer make contributions pursuant to a salary reduction agreement. (c) Exemption from prohibited transaction rules Subsection (d) of section 4975 of such Code is amended by striking or , or (24) the provision of a de minimis financial incentive described in section 401(k)(4)(A). . (d) Amendment of employee retirement income security act of 1974 Subsection (b) of section 408 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1108(b) (21) The provision of a de minimis financial incentive described in section 401(k)(4)(A) or section 403(b)(12)(A) . (e) Effective date The amendments made by this section shall apply with respect to plan years beginning after the date of enactment of this Act. 415. Safe harbor for corrections of employee elective deferral failures (a) In general Section 414 (aa) Correcting automatic contribution errors (1) In general Any plan or arrangement shall not fail to be treated as a plan described in sections 401(a), 403(b), 408, or 457(b), as applicable, solely by reason of a corrected error. (2) Corrected error defined For purposes of this subsection, the term corrected error (A) is corrected by the date that is 9½ months after the end of the plan year during which the error occurred, (B) is corrected in a manner that is favorable to the participant, and (C) is of a type which is so corrected for all similarly situated participants in a nondiscriminatory manner. Such correction may occur before or after the participant has terminated employment and may occur without regard to whether the error is identified by the Secretary. (3) Regulations and guidance for favorable correction methods The Secretary shall, by regulations or other guidance of general applicability, specify the correction methods that are in a manner favorable to the participant for purposes of paragraph (2)(B). . (b) Effective date The amendment made by this section shall apply with respect to any errors with respect to which the date referred to in section 414(aa) (as added by this section) is after the date of enactment of this Act. 416. Improving coverage for part-time workers (a) In general Section 202 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1052 (c) Special rule for certain part-Time employees (1) In general A pension plan that includes either a qualified cash or deferred arrangement (as defined in section 401(k) (A) the period permitted under subsection (a)(1) (determined without regard to subparagraph (B)(i) thereof); or (B) the first 24-month period— (i) consisting of 2 consecutive 12-month periods during each of which the employee has at least 500 hours of service; and (ii) by the close of which the employee has attained the age of 21. (2) Exception Paragraph (1)(B) shall not apply to any employee described in section 410(b)(3) (3) Coordination with other rules (A) In general In the case of employees who are eligible to participate in the arrangement or agreement solely by reason of paragraph (1)(B): (i) Exclusions An employer may elect to exclude such employees from the application of subsections (a)(4), (k)(3), (k)(12), (k)(13), and (m)(2) of section 401 (ii) Nondiscrimination rules Notwithstanding paragraph (1), section 401(k)(15)(B)(i)(I) of such Code shall apply. (iii) Time of participation The rules of subsection (a)(4) shall apply to such employees. (B) Top-heavy rules An employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph (1)(B) from the application of the vesting and benefit requirements under subsections (b) and (c) of section 416 (4) 12-month period For purposes of this subsection, 12-month periods shall be determined in the same manner as under the last sentence of subsection (a)(3)(A), except that 12-month periods beginning before January 1, 2021, shall not be taken into account. . (b) Vesting Section 203(b) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1053(a) (4) Part-time employees For purposes of determining whether an employee who is eligible to participate in a qualified cash or deferred arrangement or a salary reduction agreement under a plan solely by reason of section 202(c)(1)(B) has a nonforfeitable right to employer contributions— (A) except as provided in subparagraph (B), each 12-month period for which the employee has at least 500 hours of service shall be treated as a year of service; and (B) paragraph (3) shall be applied by substituting at least 500 hours of service more than 500 hours of service For purposes of this paragraph, 12-month periods shall be determined in the same manner as under the last sentence of section 202(a)(3)(A), except that 12-month periods beginning before January 1, 2021, shall not be taken into account. . (c) Reduction in period service requirement for qualified cash and deferred arrangements Section 401(k)(2)(D)(ii) 3 2 (d) Pre-2021 service Section 112(b) of the Setting Every Community Up for Retirement Enhancement Act of 2019 ( 26 U.S.C. 401 section 401(k)(2)(D)(ii) paragraphs (2)(D)(ii) and (15)(B)(iii) of section 401(k) (e) Effective dates (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning after December 31, 2022. (2) Subsection (d) The amendment made by subsection (d) shall take effect as if included in the enactment of section 112 of the Setting Every Community Up for Retirement Enhancement Act of 2019. 417. Deferral of tax for certain sales of employer stock to employee stock ownership plan sponsored by s corporation (a) In general Section 1042(c)(1)(A) domestic C corporation domestic corporation (b) 10 percent limitation on application of gain on sale of s corporation stock Section 1042 of such Code is amended by adding at the end the following new subsection: (h) Application of section to sale of stock in s corporation In the case of the sale of qualified securities of an S corporation, the election under subsection (a) may be made with respect to not more than 10 percent of the amount realized on such sale for purposes of determining the amount of gain not recognized and the extent to which (if at all) the amount realized on such sale exceeds the cost of qualified replacement property. The portion of adjusted basis that is properly allocable to the portion of the amount realized with respect to which the election is made under this subsection shall be taken into account for purposes of the preceding sentence. . (c) Effective date The amendments made by this section shall apply to sales after December 31, 2027. 418. Certain securities treated as publicly traded in case of employee stock ownership plans (a) In general Section 401(a)(35) (I) Esop rules relating to publicly traded securities In the case of an applicable defined contribution plan which is an employee stock ownership plan, an employer security shall be treated as described in subparagraph (G)(v) if— (i) the security is the subject of priced quotations by at least 4 dealers, published and made continuously available on an interdealer quotation system (as such term is used in section 13 of the Securities Exchange Act of 1934) which has made the request described in section 6(j) of such Act to be treated as an alternative trading system, (ii) the security is not a penny stock (as defined by section 3(a)(51) of such Act), (iii) the security is issued by a corporation which is not a shell company (as such term is used in section 4(d)(6) of the Securities Act of 1933), a blank check company (as defined in section 7(b)(3) of such Act), or subject to bankruptcy proceedings, (iv) the security has a public float (as such term is used in section 240.12b–2 of title 17, Code of Federal Regulations) which has a fair market value of at least $1,000,000 and constitutes at least 10 percent of the total shares issued and outstanding. (v) in the case of a security issued by a domestic corporation, the issuer publishes, not less frequently than annually, financial statements audited by an independent auditor registered with the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002, and (vi) in the case of a security issued by a foreign corporation, the security is represented by a depositary share (as defined under section 240.12b–2 of title 17, Code of Federal Regulations), or is issued by a foreign corporation incorporated in Canada and readily tradeable on an established securities market in Canada, and the issuer— (I) is subject to, and in compliance with, the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)), (II) is subject to, and in compliance with, the reporting requirements of section 230.257 of title 17, Code of Federal Regulations, or (III) is exempt from such requirements under section 240.12g3–2(b) of title 17, Code of Federal Regulations. . (b) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2027. 419. Remove required minimum distribution barriers for life annuities (a) In general Section 401(a)(9) (J) Certain increases in payments under a commercial annuity Nothing in this section shall prohibit a commercial annuity (within the meaning of section 3405(e)(6)) that is issued in connection with any eligible retirement plan (within the meaning of section 402(c)(8)(B), other than a defined benefit plan) from providing one or more of the following types of payments on or after the annuity starting date: (i) annuity payments that increase by a constant percentage, applied not less frequently than annually, at a rate that is less than 5 percent per year, (ii) a lump sum payment that— (I) results in a shortening of the payment period with respect to an annuity or a full or partial commutation of the future annuity payments, provided that such lump sum is determined using reasonable actuarial methods and assumptions, as determined in good faith by the issuer of the contract, or (II) accelerates the receipt of annuity payments that are scheduled to be received within the ensuing 12 months, regardless of whether such acceleration shortens the payment period with respect to the annuity, reduces the dollar amount of benefits to be paid under the contract, or results in a suspension of annuity payments during the period being accelerated, (iii) an amount which is in the nature of a dividend or similar distribution, provided that the issuer of the contract determines such amount based on a reasonable comparison of the actuarial factors assumed when calculating the initial annuity payments and the issuer’s experience with respect to those factors, or (iv) a final payment upon death that does not exceed the excess of the total amount of the consideration paid for the annuity payments, less the aggregate amount of prior distributions or payments from or under the contract. . (b) Effective date This section shall apply to calendar years ending after the date of the enactment of this Act. 420. Qualifying longevity annuity contracts (a) In general Not later than the date which is 1 year after the date of the enactment of this Act, the Secretary of the Treasury or the Secretary’s delegate (hereafter in this section referred to as the Secretary Longevity Annuity Contracts (1) Repeal 25-percent premium limit The Secretary shall amend Q&A–17(b)(3) of Treasury Regulation section 1.401(a)(9)–6 and Q&A–12(b)(3) of Treasury Regulation section 1.408–8 to eliminate the requirement that premiums for qualifying longevity annuity contracts be limited to a percentage of an individual’s account balance, and to make such corresponding changes to the regulations and related forms as are necessary to reflect the elimination of this requirement. (2) Facilitate joint and survivor benefits The Secretary shall amend Q&A–17(c) of Treasury Regulation section 1.401(a)(9)–6, and make such corresponding changes to the regulations and related forms as are necessary, to provide that, in the case of a qualifying longevity annuity contract which was purchased with joint and survivor annuity benefits for the individual and the individual’s spouse which were permissible under the regulations at the time the contract was originally purchased, a divorce occurring after the original purchase and before the annuity payments commence under the contract will not affect the permissibility of the joint and survivor annuity benefits or other benefits under the contract, or require any adjustment to the amount or duration of benefits payable under the contract, provided that any qualified domestic relations order (within the meaning of section 414(p) 29 U.S.C. 1056(d) (A) provides that the former spouse is entitled to the survivor benefits under the contract; (B) does not modify the treatment of the former spouse as the beneficiary under the contract who is entitled to the survivor benefits; or (C) does not modify the treatment of the former spouse as the measuring life for the survivor benefits under the contract. (3) Permit short free look period The Secretary shall amend Q&A–17(a)(4) of Treasury Regulation section 1.401(a)(9)–6 to ensure that such Q&A does not preclude a contract from including a provision under which an employee may rescind the purchase of the contract within a period not exceeding 90 days from the date of purchase. (b) Divorce or separation instrument For purposes of subsection (a)(2), the term divorce or separation instrument (1) a decree of divorce or separate maintenance or a written instrument incident to such a decree, (2) a written separation agreement, or (3) a decree (not described in paragraph (1)) requiring a spouse to make payments for the support or maintenance of the other spouse. (c) Effective dates, enforcement, and interpretations (1) Effective dates (A) Paragraph (1) of subsection (a) shall be effective with respect to contracts purchased or received in an exchange on or after the date of the enactment of this Act. (B) Paragraphs (2) and (3) of subsection (a) shall be effective with respect to contracts purchased or received in an exchange on or after July 2, 2014. (2) Enforcement and interpretations Prior to the date on which the Secretary issues final regulations pursuant to subsection (a)— (A) the Secretary (or delegate) shall administer and enforce the law in accordance with subsection (a) and the effective dates in paragraph (1) of this subsection; and (B) taxpayers may rely upon their reasonable good faith interpretations of subsection (a). (d) Regulatory successor provision Any reference to a regulation under this section shall be treated as including a reference to any successor regulation thereto. 421. Insurance-dedicated exchange-traded funds (a) In general Not later than the date which is 7 years after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate) shall amend the regulation issued by the Department of the Treasury relating to Income Tax; Diversification Requirements for Variable Annuity, Endowment, and Life Insurance Contracts section 817(d) (b) Designate certain authorized participants and market makers as eligible investors The Secretary of the Treasury (or the Secretary’s delegate) shall amend Treasury Regulation section 1.817–5(f)(3) to provide that satisfaction of the requirements in Treasury Regulation section 1.817–5(f)(2)(i) with respect to an exchange-traded fund shall not be prevented by reason of beneficial interests in such a fund being held by 1 or more authorized participants or market makers. (c) Define relevant terms In amending Treasury Regulation section 1.817–5(f)(3) in accordance with subsections (b) of this section, the Secretary of the Treasury (or the Secretary’s delegate) shall provide definitions consistent with the following: (1) Exchange-traded fund The term exchange-traded fund (A) that is registered with the Securities and Exchange Commission as an open-end investment company or a unit investment trust; (B) the shares of which can be purchased or redeemed directly from the fund only by an authorized participant; and (C) the shares of which are traded throughout the day on a national stock exchange at market prices that may or may not be the same as the net asset value of the shares. (2) Authorized participant The term authorized participant (A) purchasing the shares for its own investment purposes rather than for the exclusive purpose of creating and redeeming such shares on behalf of third parties; and (B) selling the shares to third parties who are not market makers or otherwise described in paragraphs (2) and (3) of Treasury Regulation section 1.817–5(f). (3) Market maker The term market maker (d) Effective date Subsections (b) and (c) shall apply to segregated asset account investments made on or after the date that is 7 years after the date of the enactment of this Act. 422. Recovery of retirement plan overpayments (a) Overpayments under ERISA Section 206 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1056 (h) Special rules applicable to benefit overpayments (1) General rule In the case of an inadvertent benefit overpayment by any pension plan, the responsible plan fiduciary shall not be considered to have failed to comply with the requirements of this title merely because such fiduciary determines, in the exercise of its fiduciary discretion, not to seek recovery of all or part of such overpayment from— (A) any participant or beneficiary, (B) any plan sponsor of, or contributing employer to— (i) an individual account plan, provided that the amount needed to prevent or restore any impermissible forfeiture from any participant’s or beneficiary’s account arising in connection with the overpayment is, separately from and independently of the overpayment, allocated to such account pursuant to the nonforfeitability requirements of section 203 (for example, out of the plan’s forfeiture account, additional employer contributions, or recoveries from those responsible for the overpayment), or (ii) a defined benefit pension plan subject to the funding rules in part 3 of this subtitle B, unless the responsible plan fiduciary determines, in the exercise of its fiduciary discretion, that failure to recover all or part of the overpayment faster than required under such funding rules would materially affect the plan’s ability to pay benefits due to other participants and beneficiaries, or (C) any fiduciary of the plan, other than a fiduciary (including a plan sponsor or contributing employer acting in a fiduciary capacity) whose breach of its fiduciary duties resulted in such overpayment, provided that if the plan has established prudent procedures to prevent and minimize overpayment of benefits and the relevant plan fiduciaries have followed such procedures, an inadvertent benefit overpayment will not give rise to a breach of fiduciary duty. (2) Reduction in future benefit payments and recovery from responsible party Paragraph (1) shall not fail to apply with respect to any inadvertent benefit overpayment merely because, after discovering such overpayment, the responsible plan fiduciary— (A) reduces future benefit payments to the correct amount provided for under the terms of the plan, or (B) seeks recovery from the person or persons responsible for the overpayment. (3) Employer funding obligations Nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under part 3 of this subtitle B or to prevent or restore an impermissible forfeiture in accordance with section 203. (4) Recoupment from participants and beneficiaries If the responsible plan fiduciary, in the exercise of its fiduciary discretion, decides to seek recoupment from a participant or beneficiary of all or part of an inadvertent benefit overpayment made by the plan to such participant or beneficiary, it may do so, subject to the following conditions: (A) No interest or other additional amounts (such as collection costs or fees) are sought on overpaid amounts for any period. (B) If the plan seeks to recoup past overpayments of a non-decreasing periodic benefit by reducing future benefit payments— (i) the reduction ceases after the plan has recovered the full dollar amount of the overpayment, (ii) the amount recouped each calendar year does not exceed 10 percent of the full dollar amount of the overpayment, and (iii) future benefit payments are not reduced to below 90 percent of the periodic amount otherwise payable under the terms of the plan. Alternatively, if the plan seeks to recoup past overpayments of a non-decreasing periodic benefit through one or more installment payments, the sum of such installment payments in any calendar year does not exceed the sum of the reductions that would be permitted in such year under the preceding sentence. (C) If the plan seeks to recoup past overpayments of a benefit other than a non-decreasing periodic benefit, the plan satisfies requirements developed by the Secretary for purposes of this subparagraph. (D) Efforts to recoup overpayments are— (i) not accompanied by threats of litigation, unless the responsible plan fiduciary reasonably believes it could prevail in a civil action brought in Federal or State court to recoup the overpayments, and (ii) not made through a collection agency or similar third party, unless the participant or beneficiary ignores or rejects efforts to recoup the overpayment following either a final judgment in Federal or State court or a settlement between the participant or beneficiary and the plan, in either case authorizing such recoupment. (E) Recoupment of past overpayments to a participant is not sought from any beneficiary of the participant, including a spouse, surviving spouse, former spouse, or other beneficiary. (F) Recoupment may not be sought if the first overpayment occurred more than 3 years before the participant or beneficiary is first notified in writing of the error. (G) A participant or beneficiary from whom recoupment is sought is entitled to contest all or part of the recoupment pursuant to the plan’s claims procedures. (H) In determining the amount of recoupment to seek, the responsible plan fiduciary may take into account the hardship that recoupment likely would impose on the participant or beneficiary. (5) Effect of culpability Subparagraphs (A) through (F) of paragraph (4) shall not apply to protect a participant or beneficiary who is culpable. For purposes of this paragraph, a participant or beneficiary is culpable if the individual bears responsibility for the overpayment (such as through misrepresentations or omissions that led to the overpayment), or if the individual knew, or had good reason to know under the circumstances, that the benefit payment or payments were materially in excess of the correct amount. Notwithstanding the preceding sentence, an individual is not culpable merely because the individual believed the benefit payment or payments were or might be in excess of the correct amount, if the individual raised that question with an authorized plan representative and was told the payment or payments were not in excess of the correct amount. With respect to a culpable participant or beneficiary, efforts to recoup overpayments shall not be made through threats of litigation, unless a lawyer for the plan could make the representations required under Rule 11 of the Federal Rules of Civil Procedure if the litigation were brought in Federal court. . (b) Overpayments under internal revenue code of 1986 (1) Qualification requirements Section 414 (bb) Special rules applicable to benefit overpayments (1) In general A plan shall not fail to be treated as described in clause (i), (ii), (iii), or (iv) of section 219(g)(5)(A) (and shall not fail to be treated as satisfying the requirements of section 401(a) or 403) merely because— (A) the plan fails to obtain payment from any participant, beneficiary, employer, plan sponsor, fiduciary, or other party on account of any inadvertent benefit overpayment made by the plan, or (B) the plan sponsor amends the plan to increase past or future benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments. (2) Reduction in future benefit payments and recovery from responsible party Paragraph (1) shall not fail to apply to a plan merely because, after discovering a benefit overpayment, such plan— (A) reduces future benefit payments to the correct amount provided for under the terms of the plan, or (B) seeks recovery from the person or persons responsible for such overpayment. (3) Employer funding obligations Nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under sections 412 and 430 or to prevent or restore an impermissible forfeiture in accordance with section 411. (4) Observance of benefit limitations Notwithstanding paragraph (1), a plan to which paragraph (1) applies shall observe any limitations imposed on it by section 401(a)(17) or 415. The plan may enforce such limitations using any method approved by the Secretary of the Treasury for recouping benefits previously paid or allocations previously made in excess of such limitations. (5) Coordination with other qualification requirements The Secretary of the Treasury may issue regulations or other guidance of general applicability specifying how benefit overpayments and their recoupment or non-recoupment from a participant or beneficiary shall be taken into account for purposes of satisfying any requirement applicable to a plan to which paragraph (1) applies. . (2) Rollovers Section 402(c) of such Code is amended by adding at the end the following new paragraph: (12) In the case of an inadvertent benefit overpayment from a plan to which section 414(bb)(1) applies that is transferred to an eligible retirement plan by or on behalf of a participant or beneficiary— (A) the portion of such overpayment with respect to which recoupment is not sought on behalf of the plan shall be treated as having been paid in an eligible rollover distribution if the payment would have been an eligible rollover distribution but for being an overpayment, and (B) the portion of such overpayment with respect to which recoupment is sought on behalf of the plan shall be permitted to be returned to such plan and in such case shall be treated as an eligible rollover distribution transferred to such plan by the participant or beneficiary who received such overpayment (and the plans making and receiving such transfer shall be treated as permitting such transfer). In any case in which recoupment is sought on behalf of the plan but is disputed by the participant or beneficiary who received such overpayment, such dispute shall be subject to the claims procedures of the plan that made such overpayment, such plan shall notify the plan receiving the rollover of such dispute, and the plan receiving the rollover shall retain such overpayment on behalf of the participant or beneficiary (and shall be entitled to treat such overpayment as plan assets) pending the outcome of such procedures. . (c) Effective date The amendments made by this section shall apply as of the date of the enactment of this Act. (d) Certain actions before date of enactment Plans, fiduciaries, employers, and plan sponsors are entitled to rely on— (1) a good faith interpretation of then existing administrative guidance for inadvertent benefit overpayment recoupments and recoveries that commenced before the date of enactment of this Act, and (2) determinations made before the date of enactment of this Act by the responsible plan fiduciary, in the exercise of its fiduciary discretion, not to seek recoupment or recovery of all or part of an inadvertent benefit overpayment. In the case of a benefit overpayment that occurred prior to the date of enactment of this Act, any installment payments by the participant or beneficiary to the plan or any reduction in periodic benefit payments to the participant or beneficiary, which were made in recoupment of such overpayment and which commenced prior to such date, may continue after such date. Nothing in this subsection shall relieve a fiduciary from responsibility for an overpayment that resulted from a breach of its fiduciary duties. 423. Reduction in excise tax on certain accumulations in qualified retirement plans (a) In general Section 4974(a) 50 percent 25 percent (b) Reduction in excise tax on failures To take required minimum distributions Section 4974 of such Code is amended by adding at the end the following new subsection: (e) Reduction of tax in certain cases (1) Reduction In the case of a taxpayer who— (A) corrects, during the correction window, a shortfall of distributions from an individual retirement plan which resulted in imposition of a tax under subsection (a), and (B) submits a return, during the correction window, reflecting such tax (as modified by this subsection), the first sentence of subsection (a) shall be applied by substituting 10 percent 25 percent (2) Correction window For purposes of this subsection, the term correction window (A) the date on which the Secretary initiates an audit, or otherwise demands payment, with respect to the shortfall of distributions, or (B) the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection (a) is imposed. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 424. Performance benchmarks for asset allocation funds (a) In general Not later than 1 year after the date of enactment of this Act, the Secretary of Labor shall provide that, in the case of a designated investment alternative that contains a mix of asset classes, the administrator of a plan may, but is not required to, use a benchmark that is a blend of different broad-based securities market indices if— (1) the blend is reasonably representative of the asset class holdings of the designated investment alternative; (2) for purposes of determining the blend’s returns for 1-, 5-, and 10-calendar-year periods (or for the life of the alternative, if shorter), the blend is modified at least once per year to reflect changes in the asset class holdings of the designated investment alternative; (3) the blend is furnished to participants and beneficiaries in a manner that is reasonably designed to be understandable; and (4) each securities market index that is used for an associated asset class would separately satisfy the requirements of such regulation for such asset class. (b) Study Not later than 3 years after the date of enactment of this Act, the Secretary of Labor shall deliver a report to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate and the Committees on Ways and Means and Education and Labor of the House of Representatives regarding the utilization, effectiveness, and participants’ understanding of the benchmarking requirements under this section. 425. Review and report to congress relating to reporting and disclosure requirements (a) Study As soon as practicable after the date of enactment of this Act, the Secretary of Labor, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation shall review the reporting and disclosure requirements as applicable to each such agency head, of— (1) the Employee Retirement Income Security Act of 1974 applicable to pension plans (as defined in section 3(2) of such Act ( 29 U.S.C. 1002(2) (2) the Internal Revenue Code of 1986 applicable to qualified retirement plans (as defined in section 4974(c) of such Code, without regard to paragraphs (4) and (5) of such section). (b) Report (1) In general Not later than 2 years after the date of enactment of this Act, the Secretary of Labor, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation, jointly, and after consultation with a balanced group of participant and employer representatives, shall with respect to plans referenced in subsection (a) report on the effectiveness of the applicable reporting and disclosure requirements and make such recommendations as may be appropriate to the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives and the Committee on Health, Education, Labor, and Pensions and the Committee on Finance of the Senate to consolidate, simplify, standardize, and improve such requirements so as to simplify reporting for such plans and ensure that plans can furnish and participants and beneficiaries timely receive and better understand the information they need to monitor their plans, plan for retirement, and obtain the benefits they have earned. (2) Analysis of effectiveness To assess the effectiveness of the applicable reporting and disclosure requirements, the report shall include an analysis, based on plan data, of how participants and beneficiaries are providing preferred contact information, the methods by which plan sponsors and plans are furnishing disclosures, and the rate at which participants and beneficiaries (grouped by key demographics) are receiving, accessing, understanding, and retaining disclosures. (3) Collection of information The agencies shall conduct appropriate surveys and data collection to obtain any needed information. 426. Eliminating unnecessary plan requirements related to unenrolled participants (a) Amendment of employee retirement income security act of 1974 (1) In general Part 1 of subtitle B of subchapter I of the Employee Retirement Income Security Act of 1974 is amended by redesignating section 111 as section 112 and by inserting after section 110 the following new section: 111. Eliminating unnecessary plan requirements related to unenrolled participants (a) In general Notwithstanding any other provision of this title, with respect to any individual account plan, no disclosure, notice, or other plan document (other than the notices and documents described in paragraphs (1) and (2)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives— (1) an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan; and (2) any document requested by such participant that the participant would be entitled to receive notwithstanding this section. (b) Unenrolled participant For purposes of this section, the term unenrolled participant (1) is eligible to participate in an individual account plan; (2) has received— (A) the summary plan description pursuant to section 104(b); and (B) any other notices related to eligibility under the plan required to be furnished under this title, or the Internal Revenue Code of 1986, in connection with such participant’s initial eligibility to participate in such plan; (3) is not participating in such plan; (4) does not have an account balance in the plan; and (5) satisfies such other criteria as the Secretary of Labor may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Treasury. For purposes of this section, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility. (c) Annual reminder notice For purposes of this section, the term annual reminder notice (1) is furnished in connection with the annual open season election period with respect to the plan or, if there is no such period, is furnished within a reasonable period prior to the beginning of each plan year; (2) notifies the unenrolled participant of— (A) the unenrolled participant’s eligibility to participate in the plan; and (B) the key benefits and rights under the plan, with a focus on employer contributions and vesting provisions; and (3) provides such information in a prominent manner calculated to be understood by the average participant. . (2) Clerical amendment The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 is amended by striking the item relating to section 111 and by inserting after the item relating to section 110 the following new items: Sec. 111. Eliminating unnecessary plan requirements related to unenrolled participants. Sec. 112. Repeal and effective date. . (b) Amendment of internal revenue code of 1986 Section 414 (cc) Eliminating unnecessary plan requirements related to unenrolled participants (1) In general Notwithstanding any other provision of this title, with respect to any defined contribution plan, no disclosure, notice, or other plan document (other than the notices and documents described in subparagraphs (A) and (B)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives— (A) an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan, and (B) any document requested by such participant that the participant would be entitled to receive notwithstanding this subsection. (2) Unenrolled participant For purposes of this subsection, the term unenrolled participant (A) is eligible to participate in a defined contribution plan, (B) has received— (i) the summary plan description pursuant to section 104(b) of the Employee Retirement Income Security Act of 1974, and (ii) any other notices related to eligibility under the plan and required to be furnished under this title, or the Employee Retirement Income Security Act of 1974, in connection with such participant’s initial eligibility to participate in such plan, (C) is not participating in such plan, (D) does not have an account balance in the plan, and (E) satisfies such other criteria as the Secretary of the Treasury may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Labor. For purposes of this subsection, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility. (3) Annual reminder notice For purposes of this subsection, the term annual reminder notice . (c) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2022. 427. Retirement savings lost and found (a) In general (1) Establishment of retirement savings lost and found Part 5 of title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1341 et seq. 523. Retirement savings lost and found (a) Establishment (1) In general Not later than 2 years after the date of the enactment of this section, the Secretary of Labor, in consultation with the Secretary of the Treasury, shall establish an online searchable database (to be managed by the Department of Labor in accordance with this section) to be known as the Retirement Savings Lost and Found (A) allow an individual to search for information that enables the individual to locate the administrator of any plan described in paragraph (2) with respect to which the individual is or was a participant or beneficiary, and provide contact information for the administrator of any such plan; (B) allow the Department of Labor to assist such an individual in locating any such plan of the individual; and (C) allow the Department of Labor to make any necessary changes to contact information on record for the administrator based on any changes to the plan due to merger or consolidation of the plan with any other plan, division of the plan into two or more plans, bankruptcy, termination, change in name of the plan, change in name or address of the administrator, or other causes. The Retirement Savings Lost and Found established under this paragraph shall include information reported under this section and other relevant information obtained by the Department of Labor. (2) Plans described A plan described in this paragraph is a plan to which the vesting standards of section 203 apply. (b) Administration The Retirement Savings Lost and Found established under subsection (a) shall provide individuals described in subsection (a)(1) only with the ability to search for information that enables the individual to locate the administrator and contact information for the administrator of any plan with respect to which the individual is or was a participant or beneficiary, sufficient to allow the individual to locate the individual’s plan in order to recover any benefit owing to the individual under the plan. (c) Safeguarding participant privacy and security In establishing the Retirement Savings Lost and Found under subsection (a), the Department of Labor shall take all necessary and proper precautions to ensure that individuals’ plan information maintained by the Retirement Savings Lost and Found is protected. (d) Definition of administrator For purposes of this section, the term administrator (e) Information collection from plans Effective with respect to plan years beginning after the second December 31 occurring after the date of the enactment of this subsection, the administrator of a plan to which the vesting standards of section 203 apply shall submit to the Department of Labor, at such time and in such form and manner as is prescribed in regulations— (1) the information described in paragraphs (1) through (4) of section 6057(b) (2) the information described in subparagraphs (A) and (B) of section 6057(a)(2) of such Code; (3) the name and taxpayer identifying number of each participant or former participant in the plan— (A) who, during the current plan year or any previous plan year, was reported under section 6057(a)(2)(C) of such Code, and with respect to whom the benefits described in clause (ii) thereof were fully paid during the plan year; (B) with respect to whom any amount was distributed under section 401(a)(31)(B) of such Code during the plan year; or (C) with respect to whom a deferred annuity contract was distributed during the plan year; (4) in the case of a participant or former participant to whom paragraph (3) applies— (A) in the case of a participant described in subparagraph (B) thereof, the name and address of the designated trustee or issuer described in section 401(a)(31)(B)(i) of such Code and the account number of the individual retirement plan to which the amount was distributed; and (B) in the case of a participant described in subparagraph (C) thereof, the name and address of the issuer of such annuity contract and the contract or certificate number; and (5) such other information as the Secretary of Labor may require. (f) Information collection from federal agencies On request, the Secretary of Labor may access and receive such information collected by other Federal agencies as may be necessary and appropriate to perform work related to the Retirement Savings Lost and Found. (g) Program integrity audit On an annual basis for each of the first 5 years beginning one year after the establishment of the database in subsection (a)(1) and every 5 years thereafter, the Inspector General of the Department of Labor shall conduct an audit of the administration of the Retirement Savings Lost and Found. . (3) Conforming amendment The table of contents for the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. Sec. 523.Retirement Savings Lost and Found. . 428. Updating dollar limit for mandatory distributions (a) In general Section 203(e)(1) of the Employee Retirement Income Security Act of 1974 and sections 401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal Revenue Code of 1986 are each amended by striking $5,000 $7,000 (b) Effective date The amendments made by this section shall apply to distributions made after December 31, 2022. 429. Expansion of employee plans compliance resolution system (a) In general Except as otherwise provided in the Internal Revenue Code of 1986 or regulations prescribed by the Secretary of the Treasury or the Secretary’s delegate (referred to in this section as the Secretary EPCRS (b) Loan errors In the case of an eligible inadvertent failure relating to a loan from a plan to a participant— (1) such failure may be self-corrected under subsection (a) according to the rules of section 6.07 of Revenue Procedure 2021–30 (or any successor guidance), including the provisions related to whether a deemed distribution must be reported on Form 1099–R; and (2) the Secretary of Labor shall treat any such failure which is so self-corrected under subsection (a) as meeting the requirements of the Voluntary Fiduciary Correction Program of the Department of Labor if, with respect to the violation of the fiduciary standards of the Employee Retirement Income Security Act of 1974, there is a similar loan error eligible for correction under EPCRS and the loan error is corrected in such manner. (c) EPCRS for IRAS The Secretary shall expand the EPCRS to allow custodians of individual retirement plans (as defined in section 7701(a)(37) (1) waivers of the excise tax which would otherwise apply under section 4974 (2) under the self-correction component of the EPCRS, waivers of the 60-day deadline for a rollover where the deadline is missed for reasons beyond the reasonable control of the account owner; and (3) rules permitting a nonspouse beneficiary to return distributions to an inherited individual retirement plan described in section 408(d)(3)(C) (d) Additional safe harbors The Secretary shall expand the EPCRS to provide additional safe harbor means of correcting eligible inadvertent failures described in subsection (a), including safe harbor means of calculating the earnings which must be restored to a plan in cases where plan assets have been depleted by reason of an eligible inadvertent failure. (e) Eligible inadvertent failure For purposes of this section— (1) In general Except as provided in paragraph (2), the term eligible inadvertent failure (A) satisfy the standards set forth in section 4.04 of Revenue Procedure 2021–30 (or any successor guidance); or (B) satisfy similar standards in the case of an individual retirement plan. (2) Exception The term eligible inadvertent failure (f) Application of certain requirements for correcting errors This section shall not apply to any failure unless the correction of such failure under this section is made in conformity with the general principles that apply to corrections of such failures under the Internal Revenue Code of 1986, including regulations or other guidance issued thereunder and including those principles and corrections set forth in Revenue Procedure 2021–30 (or any successor guidance). 430. Eliminate the first day of the month (a) In general Section 457(b)(4) (4) which provides that compensation— (A) in the case of an eligible employer described in subsection (e)(1)(A), will be deferred only if an agreement providing for such deferral has been entered into before the compensation is currently available to the individual, and (B) in any other case, will be deferred for any calendar month only if an agreement providing for such deferral has been entered into before the beginning of such month, . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 431. One-time election for qualified charitable distribution to split-interest entity; increase in qualified charitable distribution limitation (a) One-Time election for qualified charitable distribution to split-Interest entity Section 408(d)(8) (F) One-time election for qualified charitable distribution to split-interest entity (i) In general A taxpayer may for a taxable year elect under this subparagraph to treat as meeting the requirement of subparagraph (B)(i) any distribution from an individual retirement account which is made directly by the trustee to a split-interest entity, but only if— (I) an election is not in effect under this subparagraph for a preceding taxable year, (II) the aggregate amount of distributions of the taxpayer with respect to which an election under this subparagraph is made does not exceed $50,000, and (III) such distribution meets the requirements of clauses (iii) and (iv). (ii) Split-interest entity For purposes of this subparagraph, the term split-interest entity (I) a charitable remainder annuity trust (as defined in section 664(d)(1)), but only if such trust is funded exclusively by qualified charitable distributions, (II) a charitable remainder unitrust (as defined in section 664(d)(2)), but only if such unitrust is funded exclusively by qualified charitable distributions, or (III) a charitable gift annuity (as defined in section 501(m)(5)), but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of 5 percent or greater not later than 1 year from the date of funding. (iii) Contributions must be otherwise deductible A distribution meets the requirement of this clause only if— (I) in the case of a distribution to a charitable remainder annuity trust or a charitable remainder unitrust, a deduction for the entire value of the remainder interest in the distribution for the benefit of a specified charitable organization would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph), and (II) in the case of a charitable gift annuity, a deduction in an amount equal to the amount of the distribution reduced by the value of the annuity described in section 501(m)(5)(B) would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph). (iv) Limitation on income interests A distribution meets the requirements of this clause only if— (I) no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained, the spouse of such individual, or both, and (II) the income interest in the split-interest entity is nonassignable. (v) Special rules (I) Charitable remainder trusts Notwithstanding section 664(b), distributions made from a trust described in subclause (I) or (II) of clause (ii) shall be treated as ordinary income in the hands of the beneficiary to whom the annuity described in section 664(d)(1)(A) or the payment described in section 664(d)(2)(A) is paid. (II) Charitable gift annuities Qualified charitable distributions made to fund a charitable gift annuity shall not be treated as an investment in the contract for purposes of section 72(c). . (b) Inflation adjustment Section 408(d)(8) of such Code, as amended by subsection (a), is amended by adding at the end the following new subparagraph: (G) Inflation adjustment (i) In general In the case of any taxable year beginning after 2022, each of the dollar amounts in subparagraphs (A) and (F) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2021 calendar year 2016 (ii) Rounding If any dollar amount increased under clause (i) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000. . (c) Effective date The amendment made by this section shall apply to distributions made in taxable years ending after the date of the enactment of this Act. 432. Distributions to firefighters (a) In general Subparagraph (A) of section 72(t)(10) 414(d)) 414(d)) or a distribution from a plan described in clause (iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who provides firefighting services (b) Conforming amendment The heading of paragraph (10) of section 72(t) of such Code is amended by striking in governmental plans and private sector firefighters (c) Effective date The amendments made by this section shall apply to distributions made after December 31, 2022. 433. Exclusion of certain disability-related first responder retirement payments (a) In general Part III of subchapter B of chapter 1 139C. Certain disability-related first responder retirement payments (a) In general In the case of an individual who receives qualified first responder retirement payments for any taxable year, gross income shall not include so much of such payments as do not exceed the annualized excludable disability amount with respect to such individual. (b) Qualified first responder retirement payments For purposes of this section, the term qualified first responder retirement payments (1) from a plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B), and (2) in connection with such individual’s qualified first responder service. (c) Annualized excludable disability amount For purposes of this section— (1) In general The term annualized excludable disability amount (2) Service-connected excludable disability amount The term service-connected excludable disability amount (A) are not includible in such individual’s gross income under section 104(a)(1), (B) are received in connection with such individual’s qualified first responder service, and (C) terminate when such individual attains retirement age. (3) Special rule for partial-year payments In the case of an individual who only receives service-connected excludable disability amounts properly attributable to a portion of the 12-month period described in paragraph (1), such paragraph shall be applied by multiplying such amounts by the ratio of 365 to the number of days in such period to which such amounts were properly attributable. (d) Qualified first responder service For purposes of this section, the term qualified first responder service . (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139B the following new item: Sec. 139C. Certain disability-related first responder retirement payments. . (c) Effective date The amendments made by this section shall apply to amounts received with respect to taxable years beginning after December 31, 2027. 434. Individual retirement plan statute of limitations for excise tax on excess contributions and certain accumulations Section 6501(l) (4) Individual retirement plans (A) In general For purposes of any tax imposed by section 4973 or 4974 in connection with an individual retirement plan, the return referred to in this section shall be the income tax return filed by the person on whom the tax under such section is imposed for the year in which the act (or failure to act) giving rise to the liability for such tax occurred. (B) Rule in case of individuals not required to file return In the case of a person who is not required to file an income tax return for such year— (i) the return referred to in this section shall be the income tax return that such person would have been required to file but for the fact that such person was not required to file such return, and (ii) the 3-year period referred to in subsection (a) with respect to the return shall be deemed to begin on the date by which the return would have been required to be filed (excluding any extension thereof). . 435. Requirement to provide paper statements in certain cases (a) In general Section 105(a)(2) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1025(a)(2) (1) in subparagraph (A)(iv), by inserting subject to subparagraph (E), may be delivered (2) by adding at the end the following: (E) Provision of paper statements With respect to at least 1 pension benefit statement furnished for a calendar year with respect to an individual account plan under paragraph (1)(A), and with respect to at least 1 pension benefit statement furnished every 3 calendar years with respect to a defined benefit plan under paragraph (1)(B), such statement shall be furnished on paper in written form except— (i) in the case of a plan that furnishes such statement in accordance with section 2520.104b–1(c) of title 29, Code of Federal Regulations; or (ii) in the case of a plan that permits a participant or beneficiary to request that the statements referred to in the matter preceding clause (i) be furnished by electronic delivery, if the participant or beneficiary requests that such statements be delivered electronically and the statements are so delivered. . (b) Implementation (1) In general The Secretary of Labor shall, not later than December 31, 2022, update section 2520.104b–1(c) of title 29, Code of Federal Regulations, to provide that a plan may furnish the statements referred to in subparagraph (E) of section 105(a)(2) by electronic delivery only if, in addition to meeting the other requirements under the regulations— (A) such plan furnishes each participant or beneficiary, including participants described in subparagraph (B), a one-time initial notice on paper in written form, prior to the electronic delivery of any pension benefit statement, of their right to request that all documents required to be disclosed under title I of the Employee Retirement Income Security Act of 1974 be furnished on paper in written form; and (B) such plan furnishes each participant who is separated from service with at least 1 pension benefit statement on paper in written form for each calendar year, unless, on election of the participant, the participant receives such statements electronically. (2) Other guidance In implementing the amendment made by subsection (a) with respect to a plan that discloses required documents or statements electronically, in accordance with applicable guidance governing electronic disclosure by the Department of Labor (with the exception of section 2520.104b–1(c) of title 29, Code of Federal Regulations), the Secretary of Labor shall, not later than December 31, 2022, update such guidance to the extent necessary to ensure that— (A) a participant or beneficiary under such a plan is permitted the opportunity to request that any disclosure required to be delivered on paper under applicable guidance by the Department of Labor shall be furnished by electronic delivery; (B) each paper statement furnished under such a plan pursuant to the amendment shall include— (i) an explanation of how to request that all such statements, and any other document required to be disclosed under title I of the Employee Retirement Income Security Act of 1974, be furnished by electronic delivery; and (ii) contact information for the plan sponsor, including a telephone number; (C) the plan may not charge any fee to a participant or beneficiary for the delivery of any paper statements; (D) each paper pension benefit statement shall identify each plan document required to be disclosed and shall include information about how a participant or beneficiary may access each such document; (E) each document required to be disclosed that is furnished by electronic delivery under such a plan shall include an explanation of how to request that all such documents be furnished on paper in written form; and (F) a plan is permitted to furnish a duplicate electronic statement in any case in which the plan furnishes a paper pension benefit statement. (c) Effective date The amendment made by subsection (a) shall apply with respect to plan years beginning after December 31, 2023. 436. Separate application of top heavy rules to defined contribution plans covering excludible employees (a) In general Section 416(c)(2) (C) Separate application to employees not meeting age and service requirements If employees not meeting the age or service requirements of section 410(a)(1) (without regard to subparagraph (B) thereof) are covered under a plan of the employer which meets the requirements of subparagraphs (A) and (B) separately with respect to such employees, such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of subparagraphs (A) and (B). . (b) Effective date The amendment made by subsection (a) shall apply to plan years beginning after the date of the enactment of this Act. 437. Repayment of qualified birth or adoption distribution limited to 3 years (a) In general Section 72(t)(2)(H)(v)(I) may make may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make (b) Effective date The amendment made by this section shall take effect as if included in the enactment of section 113 of the Setting Every Community Up for Retirement Enhancement Act of 2019. 438. Employer may rely on employee certifying that deemed hardship distribution conditions are met (a) Cash or deferred arrangements Section 401(k)(14) (C) Employee certification In determining whether a distribution is upon the hardship of an employee, the administrator of the plan may rely on a certification by the employee that the distribution is on account of a financial need of a type that is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and that such distribution is not in excess of the amount required to satisfy such financial need. . (b) 403( b (1) Custodial accounts Section 403(b)(7) of such Code is amended by adding at the end the following new subparagraph: (D) Employee certification In determining whether a distribution is upon the financial hardship of an employee, the administrator of the plan may rely on a certification by the employee that the distribution is on account of a financial need of a type that is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and that such distribution is not in excess of the amount required to satisfy such financial need. . (2) Annuity contracts Section 403(b)(11) of such Code is amended by adding at the end the following: In determining whether a distribution is upon hardship of an employee, the administrator of the plan may rely on a certification by the employee that the distribution is on account of a financial need of a type that is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and that such distribution is not in excess of the amount required to satisfy such financial need. (c) 457(b) plan Section 457(d) of such Code is amended by adding at the end the following new paragraph: (4) Participant certification In determining whether a distribution to a participant is made when the participant is faced with an unforeseeable emergency, the administrator of a plan maintained by an eligible employer described in subsection (e)(1)(A) may rely on a certification by the participant that the distribution is made when the participant is faced with unforeseeable emergency of a type that is described in regulations prescribed by the Secretary as an unforeseeable emergency and that the distribution is not in excess of the amount reasonably necessary to satisfy the emergency need. . (d) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2022. 439. Penalty-free withdrawals from retirement plans for individuals in case of domestic abuse (a) In general Section 72(t)(2) (I) Distributions from retirement plans in case of domestic abuse (i) In general Any eligible distribution to a domestic abuse victim. (ii) Limitation The aggregate amount which may be treated as an eligible distribution to a domestic abuse victim by any individual shall not exceed an amount equal to the lesser of— (I) $10,000, or (II) 50 percent of the present value of the nonforfeitable accrued benefit of the employee under the plan. (iii) Eligible distribution to a domestic abuse victim For purposes of this subparagraph— (I) In general A distribution shall be treated as an eligible distribution to a domestic abuse victim if such distribution is from an applicable eligible retirement plan to an individual and made during the 1-year period beginning on any date on which the individual is a victim of domestic abuse by a spouse or domestic partner. (II) Domestic abuse The term domestic abuse (iv) Treatment of plan distributions (I) In general If a distribution to an individual would (without regard to clause (ii)) be an eligible distribution to a domestic abuse victim, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as an eligible distribution to a domestic abuse victim, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds the limitation under clause (ii). (II) Controlled group For purposes of subclause (I), the term controlled group (v) Amount distributed may be repaid (I) In general Any individual who receives a distribution described in clause (i) may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be. (II) Limitation on contributions to applicable eligible retirement plans other than iras The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of eligible distributions to a domestic abuse victim which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan. (III) Treatment of repayments of distributions from applicable eligible retirement plans other than iras If a contribution is made under subclause (I) with respect to an eligible distribution to a domestic abuse victim from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution. (IV) Treatment of repayments for distributions from iras If a contribution is made under subclause (I) with respect to an eligible distribution to a domestic abuse victim from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution. (vi) Definition and special rules For purposes of this subparagraph: (I) Applicable eligible retirement plan The term applicable eligible retirement plan (II) Exemption of distributions from trustee to trustee transfer and withholding rules For purposes of sections 401(a)(31), 402(f), and 3405, an eligible distribution to a domestic abuse victim shall not be treated as an eligible rollover distribution. (III) Distributions treated as meeting plan distribution requirements; self-certification Any distribution which the employee or participant certifies as being an eligible distribution to a domestic abuse victim shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A). . (b) Effective date The amendments made by this section shall apply to distributions made after the date of the enactment of this Act. 440. Reform of family attribution rules (a) Controlled groups Section 414(b) (1) by striking For purposes of (1) In general For purposes of , and (2) by adding at the end the following new paragraphs: (2) Special rules for applying family attribution For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply: (A) Community property laws shall be disregarded for purposes of determining ownership. (B) Except as provided by the Secretary, stock of an individual not attributed under section 1563(e)(5) to such individual’s spouse shall not be attributed to such spouse by reason of section 1563(e)(6)(A). (C) Except as provided by the Secretary, in the case of stock in different corporations that is attributed to a child under section 1563(e)(6)(A) from each parent, and is not attributed to such parents as spouses under section 1563(e)(5), such attribution to the child shall not by itself result in such corporations being members of the same controlled group. (3) Plan shall not fail to be treated as satisfying this section If the application of paragraph (2) causes two or more entities to be a controlled group, or to no longer be in a controlled group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies. . (b) Affiliated service groups Section 414(m)(6)(B) of such Code is amended— (1) by striking Ownership. Ownership (i) In general In determining ; and (2) by adding at the end the following new clauses: (ii) Special rules for applying family attribution For purposes of applying the attribution rules under section 318 with respect to clause (i), the following rules apply: (I) Community property laws shall be disregarded for purposes of determining ownership. (II) Except as provided by the Secretary, stock of an individual not attributed under section 318(a)(1)(A)(i) to such individual’s spouse shall not be attributed by reason of section 318(a)(1)(A)(ii) to such spouse from a child who has not attained the age of 21 years. (III) Except as provided by the Secretary, in the case of stock in different corporations that is attributed under section 318(a)(1)(A)(ii) to a child who has not attained the age of 21 years from each parent, and is not attributed to such parents as spouses under section 318(a)(1)(A)(i), such attribution to the child shall not by itself result in such corporations being members of the same affiliated service group. (iii) Plan shall not fail to be treated as satisfying this section If the application of clause (ii) causes two or more entities to be an affiliated service group, or to no longer be in an affiliated service group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies. . (c) Effective date The amendments made by this section shall apply to plan years beginning on or after the date of the enactment of this Act. 441. Amendments to increase benefit accruals under plan for previous plan year allowed until employer tax return due date (a) In general Section 401(b) (3) Retroactive plan amendments that increase benefit accruals If— (A) an employer amends a stock bonus, pension, profit-sharing, or annuity plan to increase benefits accrued under the plan effective for the preceding plan year (other than increasing the amount of matching contributions (as defined in subsection (m)(4)(A))), (B) such amendment would not otherwise cause the plan to fail to meet any of the requirements of this subchapter, and (C) such amendment is adopted before the time prescribed by law for filing the return of the employer for a taxable year (including extensions thereof) during which such amendment is effective, the employer may elect to treat such amendment as having been adopted as of the last day of the plan year in which the amendment is effective. . (b) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2023. 442. Retroactive first year elective deferrals for sole proprietors (a) In general Section 401(b)(2) In the case of an individual who owns the entire interest in an unincorporated trade or business, and who is the only employee of such trade or business, any elective deferrals (as defined in section 402(g)(3)) under a qualified cash or deferred arrangement to which the preceding sentence applies, which are made by such individual before the time for filing the return of such individual for the taxable year (determined without regard to any extensions) ending after or with the end of the plan’s first plan year, shall be treated as having been made before the end of such first plan year. (b) Effective date The amendment made by this section shall apply to plan years beginning after the date of the enactment of this Act. 443. Limiting cessation of ira treatment to portion of account involved in a prohibited transaction (a) In general Section 408(e)(2)(A) such account ceases to be an individual retirement account the amount involved (as defined in section 4975(f)(4)) in such transaction shall be treated as distributed to the individual (b) Conforming amendments (1) Section 408(e)(2)(B) of such Code is amended to read as follows: (B) Account treated as distributing potion of assets used in prohibited transaction In any case in which a portion of an individual retirement account is treated as distributed under subparagraph (A) as of the first day of any taxable year, paragraph (1) of subsection (d) applies as if there were a distribution on such first day in an amount equal to the fair market value of such portion, determined as of the date on which the transaction prohibited by section 4975 occurs. . (A) by striking all its assets. by reason of subparagraph (A) portion of assets used in prohibited transaction. (B) by striking all assets in the account such portion (2) Section 4975(c)(3) of such Code is amended by striking the account ceases the portion of the account used in the transaction is treated as distributed under paragraph (2)(A) or (4) of section 408(e). (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 444. Review of pension risk transfer interpretive bulletin Not later than 1 year after the date of enactment of this Act, the Secretary of Labor shall— (1) review section 2509.95–1 of title 29, Code of Federal Regulations (relating to the fiduciary standards under the Employee Retirement Income Security Act of 1974 when selecting an annuity provider for a defined benefit pension plan) to determine whether amendments to such section are warranted; and (2) report to Congress on the findings of such review, including an assessment of any risk to participants. 445. Amendments relating to setting every community up for retirement enhancement act of 2019 (a) Technical amendments (1) Amendments relating to section 103 (A) Section 401(k)(12)(G) the requirements under subparagraph (A)(i) the contribution requirements under subparagraph (B) or (C) (B) Section 401(k)(13)(D)(iv) of such Code is amended by striking and (F) and (G) (C) Section 401(m)(12) of such Code is amended by striking and (B) meets the notice requirements of subsection (k)(13)(E), and . (2) Amendment relating to section 112 Section 401(k)(15)(B)(i)(II) of such Code is amended by striking subsection (m)(2) paragraphs (2), (11), and (12) of subsection (m) (3) Amendment relating to section 114 Section 401(a)(9)(C)(iii) of such Code is amended by striking employee to whom clause (i)(II) applies employee (other than an employee to whom clause (i)(II) does not apply by reason of clause (ii)) (4) Amendment relating to section 116 Section 4973(b) of such Code is amended by adding at the end of the flush matter the following: Such term shall not include any designated nondeductible contribution (as defined in subparagraph (C) of section 408(o)(2)) which does not exceed the nondeductible limit under subparagraph (B) thereof by reason of an election under section 408(o)(5). (5) Effective date The amendments made by this subsection shall take effect as if included in the section of the Setting Every Community Up for Retirement Enhancement Act of 2019 to which the amendment relates. (b) Clerical amendments (1) Section 408(o)(5)(A) of such Code is amended by striking subsection (b) section 219(b) (2) Section 72(t)(2)(H)(vi)(IV) of such Code is amended by striking 403(b)(7)(A)(ii) 403(b)(7)(A)(i) 446. Provisions relating to plan amendments (a) In general If this section applies to any retirement plan or contract amendment— (1) such retirement plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (b)(2)(A); and (2) except as provided by the Secretary of the Treasury (or the Secretary’s delegate), such retirement plan shall not fail to meet the requirements of section 411(d)(6) (b) Amendments to which section applies (1) In general This section shall apply to any amendment to any retirement plan or annuity contract which is made— (A) pursuant to any amendment made by this Act or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor (or a delegate of either such Secretary) under this Act; and (B) on or before the last day of the first plan year beginning on or after January 1, 2024, or such later date as the Secretary of the Treasury may prescribe. In the case of a governmental plan (as defined in section 414(d) 2026 2024 applicable collectively bargained plan (2) Conditions This section shall not apply to any amendment unless— (A) during the period— (i) beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative or regulatory amendment, the effective date specified by the plan); and (ii) ending on the date described in paragraph (1)(B) (as modified by the second sentence of paragraph (1)) (or, if earlier, the date the plan or contract amendment is adopted), the plan or contract is operated as if such plan or contract amendment were in effect; and (B) such plan or contract amendment applies retroactively for such period. (c) Coordination with other provisions relating to plan amendments (1) Secure act Section 601(b)(1) of the Setting Every Community Up for Retirement Enhancement Act of 2019 is amended— (A) by striking January 1, 2022 January 1, 2024 (B) by striking substituting 2024 2022 substituting 2026 2024 (2) Cares act (A) Special rules for use of retirement funds Section 2202(c)(2)(A) of the CARES Act is amended by striking January 1, 2022 January 1, 2024 (B) Temporary waiver of required minimum distributions rules for certain retirement plans and accounts Section 2203(c)(2)(B)(i) of the CARES Act is amended— (i) by striking January 1, 2022 January 1, 2024 (ii) by striking substituting 2024 2022 substituting 2026 2024 (C) Taxpayer certainty and disaster tax relief act of 2020 Section 302(d)(2)(A) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 is amended by striking January 1, 2022 January 1, 2024 447. Simple and sep roth iras (a) In general Section 408A (b) Rules relating to simplified employee pensions (1) Contributions Section 402(h)(1) of such Code is amended by striking and , and (C) in the case of any contributions pursuant to a simplified employer pension which are made to an individual retirement plan designated as a Roth IRA, such contribution shall not be excludable from gross income. . (2) Distributions Section 402(h)(3) of such Code is amended by inserting , or section 408A(d) in the case of an individual retirement plan designated as a Roth IRA (3) Election required Section 408(k) of such Code is amended by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (10), respectively, and by inserting the after paragraph (6) the following new paragraph: (7) Roth contribution election An individual retirement plan which is designated as a Roth IRA shall not be treated as a simplified employee pension under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide). . (c) Rules relating to simple retirement accounts (1) Election required Section 408(p) of such Code is amended by adding at the end the following new paragraph: (11) Roth contribution election An individual retirement plan which is designated as a Roth IRA shall not be treated as a simple retirement account under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide). . (2) Rollovers Section 408A(e) of such Code is amended by adding at the end the following new paragraph: (3) Simple retirement accounts In the case of any payment or distribution out of a simple retirement account (as defined in section 408(p)) with respect to which an election has been made under section 408(p)(11) and to which 72(t)(6) applies, the term qualified rollover contribution . (d) Coordination with roth contribution limitation Section 408A(c) of such Code is amended by adding at the end the following new paragraph: (7) Coordination with limitation for simple retirement plans and seps In the case of an individual on whose behalf contributions are made to a simple retirement account or a simplified employee pension, the amount described in paragraph (2)(A) shall be increased by an amount equal to the contributions made on the individual’s behalf to such account or pension for the taxable year, but only to the extent such contributions— (A) in the case of a simplified retirement account— (i) do not exceed the sum of the dollar amount in effect for the taxable year under section 408(p)(2)(A)(ii) and the employer contribution required under subparagraph (A)(iii) or (B)(i), as the case may be, of section 408(p)(2), and (ii) do not cause the elective deferrals (as defined in section 402(g)(3)) on behalf of such individual to exceed the limitation under section 402(g)(1) (taking into account any additional elective deferrals permitted under section 414(v)), or (B) in the case of a simplified employee pension, do not exceed the limitation in effect under section 408(j). . (e) Conforming amendment Section 408A(d)(2)(B) of such Code is amended by inserting , or employer in the case of a simple retirement account (as defined in section 408(p)) or simplified employee pension (as defined in section 408(k)), individual’s spouse (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 448. Hardship withdrawal rules for 403(b) plans (a) In general Section 403(b) (16) Special rules relating to hardship withdrawals For purposes of paragraphs (7) and (11)— (A) Amounts which may be withdrawn The following amounts may be distributed upon hardship of the employee: (i) Contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)). (ii) Qualified nonelective contributions (as defined in section 401(m)(4)(C)). (iii) Qualified matching contributions described in section 401(k)(3)(D)(ii)(I). (iv) Earnings on any contributions described in clause (i), (ii), or (iii). (B) No requirement to take available loan A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan. . (b) Conforming amendments (1) Section 403(b)(7)(A)(i)(V) of such Code is amended by striking in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)) subject to the provisions of paragraph (16) (2) Paragraph (11) of section 403(b) of such Code, as amended by the preceding provisions of this Act, is amended— (A) by striking in subject to the provisions of paragraph (16), in (B) by striking the penultimate sentence. (c) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2022. 449. Elective deferrals generally limited to regular contribution limit (a) Applicable employer plans Section 414(v)(1) Except in the case of an applicable employer plan described in paragraph (6)(A)(iv), the preceding sentence shall only apply if contributions are designated Roth contributions (as defined in section 402A(c)(1)). (b) Conforming amendments (1) Section 402(g)(1) of such Code is amended by striking subparagraph (C). (2) Section 457(e)(18)(A)(ii) of such Code is amended by inserting the lesser of any designated Roth contributions made by the participant to the plan or the applicable dollar amount (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 450. Optional treatment of employer matching contributions as roth contributions (a) In general Section 402A(a) and (2) any designated Roth contribution which is made by the employer to the program on the employee’s behalf, and on account of the employee’s contribution, elective deferral, or (subject to the requirements of section 401(m)(13)) qualified student loan payment, shall be treated as a matching contribution for purposes of this chapter, except that such contribution shall not be excludable from gross income, and . (b) Matching included in qualified roth contribution program Section 402A(b)(1) of such Code is amended— (1) by inserting , or to have made on the employee’s behalf, elect to make (2) by inserting , or of matching contributions which may otherwise be made on the employee’s behalf, otherwise eligible to make (c) Designated roth matching contributions Section 402A(c)(1) of such Code is amended by inserting or matching contribution elective deferral (d) Matching contribution defined Section 402A(e) of such Code is amended by adding at the end the following: (3) Matching contribution The term matching contribution (A) any matching contribution described in section 401(m)(4)(A), and (B) any contribution to an eligible deferred compensation plan (as defined in section 457(b)) by an eligible employer described in section 457(e)(1)(A) on behalf of an employee and on account of such employee’s elective deferral under such plan. . (e) Effective date The amendments made by this section shall apply to contributions made after the date of the enactment of this Act. V 501. Boots to business program Section 32 of the Small Business Act ( 15 U.S.C. 657b (h) Boots to business program (1) Covered individual defined In this subsection, the term covered individual (A) a member of the Armed Forces, including the National Guard or Reserves; (B) an individual who is participating in the Transition Assistance Program established under section 1144 of title 10, United States Code; (C) an individual who— (i) served on active duty in any branch of the Armed Forces, including the National Guard or Reserves; and (ii) was discharged or released from such service under conditions other than dishonorable; and (D) a spouse or dependent of an individual described in subparagraph (A), (B), or (C). (2) Establishment During the period beginning on the date of enactment of this subsection and ending on September 30, 2028, the Administrator shall carry out a program to be known as the Boots to Business Program (3) Goals The goals of the Boots to Business Program are to— (A) provide assistance and in-depth training to covered individuals interested in business ownership; and (B) provide covered individuals with the tools, skills, and knowledge necessary to identify a business opportunity, draft a business plan, identify sources of capital, connect with local resources for small business concerns, and start up a small business concern. (4) Program components (A) In general The Boots to Business Program may include— (i) a presentation providing exposure to the considerations involved in self-employment and ownership of a small business concern; (ii) an online, self-study course focused on the basic skills of entrepreneurship, the language of business, and the considerations involved in self-employment and ownership of a small business concern; (iii) an in-person classroom instruction component providing an introduction to the foundations of self employment and ownership of a small business concern; and (iv) in-depth training delivered through online instruction, including an online course that leads to the creation of a business plan. (B) Collaboration The Administrator may— (i) collaborate with public and private entities to develop course curricula for the Boots to Business Program; and (ii) modify program components in coordination with entities participating in a Warriors in Transition program, as defined in section 738(e) of the National Defense Authorization Act for Fiscal Year 2013 ( 10 U.S.C. 1071 (C) Use of resource partners and district offices (i) In general The Administrator shall— (I) ensure that Veteran Business Outreach Centers regularly participate, on a nationwide basis, in the Boots to Business Program; and (II) to the maximum extent practicable, use district offices of the Administration and a variety of other resource partners and entities in administering the Boots to Business Program. (ii) Grant authority In carrying out clause (i), the Administrator may make grants, subject to the availability of appropriations in advance, to Veteran Business Outreach Centers, other resource partners, or other entities to carry out components of the Boots to Business Program. (D) Availability to department of defense and the department of labor The Administrator shall make available to the Secretary of Defense and the Secretary of Labor information regarding the Boots to Business Program, including all course materials and outreach materials related to the Boots to Business Program, for inclusion on the websites of the Department of Defense and the Department of Labor relating to the Transition Assistance Program, in the Transition Assistance Program manual, and in other relevant materials available for distribution from the Secretary of Defense and the Secretary of Labor. (E) Availability to department of veterans affairs In consultation with the Secretary of Veterans Affairs, the Administrator shall make available for distribution and display on the website of the Department of Veterans Affairs and at local facilities of the Department of Veterans Affairs outreach materials regarding the Boots to Business Program, which shall, at a minimum— (i) describe the Boots to Business Program and the services provided; and (ii) include eligibility requirements for participating in the Boots to Business Program. (F) Availability to other participating agencies The Administrator shall ensure information regarding the Boots to Business program, including all course materials and outreach materials related to the Boots to Business Program, is made available to other participating agencies in the Transition Assistance Program and upon request of other agencies. (5) Competitive bidding procedures The Administration shall use relevant competitive bidding procedures with respect to any contract or cooperative agreement executed by the Administration under the Boots to Business Program. (6) Publication of notice of funding opportunity Not later than 30 days before the deadline for submitting applications for any funding opportunity under the Boots to Business Program, the Administration shall publish a notice of the funding opportunity. (7) Report Not later than 180 days after the date of enactment of this subsection, and not less frequently than annually thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the performance and effectiveness of the Boots to Business Program, which— (A) may be included as part of another report submitted to such committees by the Administrator related to the Office of Veterans Business Development; and (B) shall summarize available information relating to— (i) grants awarded under paragraph (4)(C); (ii) the total cost of the Boots to Business Program; (iii) the number of program participants using each component of the Boots to Business Program; (iv) the completion rates for each component of the Boots to Business Program; (v) to the extent possible— (I) the demographics of program participants, to include gender, age, race, ethnicity, and relationship to military; (II) the number of program participants that connect with a district office of the Administration, a Veteran Business Outreach Center, or another resource partner of the Administration; (III) the number of program participants that start a small business concern; (IV) the results of the Boots to Business and Boots to Business Reboot course quality surveys conducted by the Office of Veterans Business Development before and after attending each of those courses, including a summary of any comments received from program participants; (V) the results of the Boots to Business Program outcome surveys conducted by the Office of Veterans Business Development, including a summary of any comments received from program participants; and (VI) the results of other germane participant satisfaction surveys; (C) an evaluation of the overall effectiveness of the Boots to Business Program based on each geographic region covered by the Administration during the most recent fiscal year; (D) an assessment of additional performance outcome measures for the Boots to Business Program, as identified by the Administrator; (E) any recommendations of the Administrator for improvement of the Boots to Business Program, which may include expansion of the types of individuals who are covered individuals; (F) an explanation of how the Boots to Business Program has been integrated with other transition programs and related resources of the Administration and other Federal agencies; and (G) any additional information the Administrator determines necessary. . VI 601. Increased punishment for human trafficking in school zones Section 1591 of title 18, United States Code, is amended— (1) by redesignating subsection (e) as subsection (f); and (2) by inserting after subsection (d) the following: (e) (1) Whoever violates subsection (a) in a school zone, or on, or within 1,000 feet of, a premises on which a school-sponsored activity is taking place, or on, or within 1,000 feet of a premises owned by an institution of higher education, shall, in addition to the punishment otherwise provided under this section, be imprisoned for not more than 5 years. (2) In this subsection: (A) The term school zone (B) The term school-sponsored activity (C) The terms State educational agency local educational agency (D) The term institution of higher education 20 U.S.C. 1001 . 602. Increased punishment for coercion and enticement in school zones Section 2422 of title 18, United States Code, is amended— (1) in subsection (b), by striking individual who has not attained the age of 18 years minor (2) by adding at the end the following: (c) (1) Whoever violates subsection (a) or (b) knowing, or having reasonable cause to believe, that the violation is committed against a minor who is enrolled in school and is, at the time of the violation, in a school zone or on, or within 1,000 feet of, a premises on which a school-sponsored activity is taking place, or against a person who is enrolled in an institution of higher education and is, at the time of the violation on or within 1,000 feet of a premises owned by the institution of higher education, shall, in addition to the punishment otherwise provided under this section, be imprisoned for not more than 5 years. (2) Paragraph (1) shall not apply in a case in which a minor’s presence on, or within 1,000 feet of, the premises on which a school-sponsored activity is taking place is not related to such school-sponsored activity, or the person’s presence on or within 1,000 feet of the premises owned by the institution of higher education is not related to their enrollment at such institution. (d) In this section: (1) The term minor (2) The term school (3) The term school zone (4) The term school-sponsored activity (5) The terms State educational agency local educational agency (6) The term institution of higher education 20 U.S.C. 1001 . VII 701. Establishment of commission (a) In general There is established the Commission to Study the Potential Creation of a National Museum of Asian Pacific American History and Culture (hereafter in this Act referred to as the Commission (b) Membership The Commission shall be composed of 8 members, of whom— (1) 2 members shall be appointed by the majority leader of the Senate; (2) 2 members shall be appointed by the Speaker of the House of Representatives; (3) 2 members shall be appointed by the minority leader of the Senate; and (4) 2 members shall be appointed by the minority leader of the House of Representatives. (c) Qualifications Members of the Commission shall be appointed to the Commission from among individuals, or representatives of institutions or entities, who possess— (1) (A) a demonstrated commitment to the research, study, or promotion of Asian Pacific American history, art, political or economic status, or culture; and (B) (i) expertise in museum administration; (ii) expertise in fundraising for nonprofit or cultural institutions; (iii) experience in the study and teaching of Asian Pacific American history; (iv) experience in studying the issue of the representation of Asian Pacific Americans in art, life, history, and culture at the Smithsonian Institution; or (v) extensive experience in public or elected service; (2) experience in the administration of, or the planning for, the establishment of, museums; or (3) experience in the planning, design, or construction of museum facilities. (d) Deadline for initial appointment The initial members of the Commission shall be appointed not later than the date that is 90 days after the date of enactment of this Act. (e) Vacancies A vacancy in the Commission— (1) shall not affect the powers of the Commission; and (2) shall be filled in the same manner as the original appointment was made. (f) Chairperson The Commission shall, by majority vote of all of the members, select 1 member of the Commission to serve as the Chairperson of the Commission. (g) Prohibition No employee of the Federal Government may serve as a member of the Commission. 702. Duties of the commission (a) Reports (1) Plan of action The Commission shall submit to the President and Congress a report containing the recommendations of the Commission with respect to a plan of action regarding the feasibility of establishing and maintaining a National Museum of Asian Pacific American History and Culture in Washington, DC, and its environs (hereafter in this Act referred to as the Museum (2) Report on issues The Commission shall submit to the President and Congress a report that addresses the following issues: (A) The availability and cost of collections to be acquired and housed in the Museum. (B) The impact of the Museum on existing Asian Pacific American history-related museums. (C) In consultation with the Smithsonian Institution, develop criteria for evaluating possible locations for the Museum in Washington, DC, and its environs. (D) The feasibility of the Museum becoming part of the Smithsonian Institution, taking into account the Museum’s potential impact on the Smithsonian’s existing facilities maintenance backlog, collections storage needs, and identified construction or renovation costs for new or existing museums. (E) The governance and organizational structure from which the Museum should operate. (F) Best practices for engaging Asian Pacific Americans in the development and design of the Museum. (G) The cost of constructing, operating, and maintaining the Museum. (3) Deadline The reports required under paragraphs (1) and (2) shall be submitted not later than the date that is 18 months after the date of the first meeting of the Commission. (b) Fundraising plan (1) In general The Commission shall develop a fundraising plan that will address the ability to support the establishment, operation, and maintenance of the Museum through contributions from the public. (2) Considerations In developing the fundraising plan under paragraph (1), the Commission shall consider issues relating to funding the operations and maintenance of the Museum in perpetuity without reliance on appropriations of Federal funds. (3) Independent review The Commission shall obtain an independent review of the viability of the plan developed under paragraph (1) and such review shall include an analysis as to whether the plan is able to achieve the level of resources necessary to fund the construction of the Museum and the operations and maintenance of the Museum in perpetuity without reliance on appropriations of Federal funds. (4) Submission The Commission shall submit the plan developed under paragraph (1) and the review conducted under paragraph (3) to the Committees on House Administration, Natural Resources, and Appropriations of the House of Representatives and the Committees on Rules and Administration, Energy and Natural Resources, and Appropriations of the Senate. (c) Legislation To carry out plan of action Based on the recommendations contained in the report submitted under paragraphs (1) and (2) of subsection (a), the Commission shall submit for consideration to the Committees on House Administration, Natural Resources, and Appropriations of the House of Representatives and the Committees on Rules and Administration, Energy and Natural Resources, and Appropriations of the Senate recommendations for a legislative plan of action on the feasibility of establishing and constructing the Museum. (d) National conference Not later than 18 months after the date on which the initial members of the Commission are appointed under section 2, the Commission may, in carrying out the duties of the Commission under this section, convene a national conference relating to the Museum, to be comprised of individuals committed to the advancement of the life, art, history, and culture of Asian Pacific Americans. 703. Administrative provisions (a) Compensation (1) In general A member of the Commission— (A) shall not be considered to be a Federal employee for any purpose by reason of service on the Commission; and (B) shall serve without pay. (2) Travel expenses A member of the Commission shall be allowed a per diem allowance for travel expenses, at rates consistent with those authorized under subchapter I of chapter 57 (3) Gifts, bequests, and devises The Commission may solicit, accept, use, and dispose of gifts, bequests, or devises of money, services, or real or personal property for the purpose of aiding or facilitating the work of the Commission. (4) Federal advisory committee act The Commission shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.). (b) Termination The Commission shall terminate on the date that is 30 days after the date on which the final versions of the reports required under section 3 are submitted. (c) Funding (1) In general The Commission shall be solely responsible for acceptance of contributions for, and payment of the expenses of, the Commission. (2) Prohibition No Federal funds may be obligated to carry out this Act. (d) Director and staff of commission (1) Director and staff (A) In general The Commission may employ and compensate an executive director and any other additional personnel that are necessary to enable the Commission to perform the duties of the Commission. (B) Rates of pay Rates of pay for persons employed under subparagraph (A) shall be consistent with the rates of pay allowed for employees of a temporary organization under section 3161 of title 5, United States Code. (2) Not federal employment Any individual employed under this section shall not be considered a Federal employee for the purpose of any law governing Federal employment. (3) Technical assistance (A) In general Subject to subparagraph (B), on request of the Commission, the head of a Federal agency may provide technical assistance to the Commission. (B) Prohibition No Federal employees may be detailed to the Commission. VIII 801. Selectusa defined In this Act, the term SelectUSA 802. Findings Congress makes the following findings: (1) Semiconductors underpin the United States and global economies, including manufacturing sectors. Semiconductors are also essential to the national security of the United States. (2) A shortage of semiconductors, brought about by the COVID–19 pandemic and other complex factors impacting the overall supply chain, has threatened the economic recovery of the United States and industries that employ millions of United States citizens. (3) Addressing current challenges and building resilience against future risks requires ensuring a secure and stable supply chain for semiconductors that will support the economic and national security needs of the United States and its allies. (4) The supply chain for semiconductors is complex and global. While the United States plays a leading role in certain segments of the semiconductor industry, securing the supply chain requires onshoring, reshoring, or diversifying vulnerable segments, such as for— (A) fabrication; (B) advanced packaging; and (C) materials and equipment used to manufacture semiconductor products. (5) The Federal Government can leverage foreign direct investment and private dollars to grow the domestic manufacturing and production capacity of the United States for vulnerable segments of the semiconductor supply chain. (6) The SelectUSA program of the Department of Commerce, in coordination with other Federal agencies and State-level economic development organizations, is positioned to boost foreign direct investment in domestic manufacturing and to help secure the semiconductor supply chain of the United States. 803. Coordination with state-level economic development organizations Not later than 180 days after the date of the enactment of this Act, the Executive Director of SelectUSA shall solicit comments from State-level economic development organizations— (1) to review— (A) what efforts the Federal Government can take to support increased foreign direct investment in any segment of semiconductor-related production; (B) what barriers to such investment may exist and how to amplify State efforts to attract such investment; (C) public opportunities those organizations have identified to attract foreign direct investment to help increase investment described in subparagraph (A); (D) resource gaps or other challenges that prevent those organizations from increasing such investment; and (2) to develop recommendations for— (A) how SelectUSA can increase such investment independently or through partnership with those organizations; and (B) working with countries that are allies or partners of the United States to ensure that foreign adversaries (as defined in section 8(c)(2) of the Secure and Trusted Communications Networks Act of 2019 ( 47 U.S.C. 1607(c)(2) 804. Report on increasing foreign direct investment in semiconductor-related manufacturing and production Not later than 2 years after the date of the enactment of this Act, the Executive Director of SelectUSA, in coordination with the Federal Interagency Investment Working Group established by Executive Order No. 13577 (76 Fed. Reg. 35,715; relating to establishment of the SelectUSA Initiative), shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes— (1) a review of the comments SelectUSA received from State-level economic development organizations under section 803; (2) a description of activities SelectUSA is engaged in to increase foreign direct investment in semiconductor-related manufacturing and production; and (3) an assessment of strategies SelectUSA may implement to achieve an increase in such investment and to help secure the United States supply chain for semiconductors, including by— (A) working with other relevant Federal agencies; and (B) working with State-level economic development organizations and implementing any strategies or recommendations SelectUSA received from those organizations. IX 901. Approval of certain equipment (a) In general Section 2008 of the Homeland Security Act of 2002 ( 6 U.S.C. 609 (1) in subsection (f)— (A) by striking If an applicant (1) Application requirement If an applicant ; and (B) by adding at the end the following new paragraphs: (2) Review process The Administrator shall implement a uniform process for reviewing applications that, in accordance with paragraph (1), contain explanations to use grants provided under section 2003 or 2004 to purchase equipment or systems that do not meet or exceed any applicable national voluntary consensus standards developed under section 647 of the Post-Katrina Emergency Management Reform Act of 2006 ( 6 U.S.C. 747 (3) Factors In carrying out the review process under paragraph (2), the Administrator shall consider the following: (A) Current or past use of proposed equipment or systems by Federal agencies or the Armed Forces. (B) The absence of a national voluntary consensus standard for such equipment or systems. (C) The existence of an international consensus standard for such equipment or systems, and whether such equipment or systems meets such standard. (D) The nature of the capability gap identified by the applicant and how such equipment or systems will address such gap. (E) The degree to which such equipment or systems will serve the needs of the applicant better than equipment or systems that meet or exceed existing consensus standards. (F) Any other factor determined appropriate by the Administrator. ; and (2) by adding at the end the following new subsection: (g) Review process The Administrator shall implement a uniform process for reviewing applications to use grants provided under section 2003 or 2004 to purchase equipment or systems not included on the Authorized Equipment List maintained by the Administrator. . (b) Inspector general report Not later than three years after the date of the enactment of this Act, the Inspector General of the Department of Homeland Security shall submit to the Committee on Homeland Security of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report assessing the implementation of the review process established under paragraph (2) of subsection (f) of section 2008 of the Homeland Security Act of 2002 (as added by subsection (a) of this section), including information on the following: (1) The number of requests to purchase equipment or systems that do not meet or exceed any applicable consensus standard evaluated under such review process. (2) The capability gaps identified by applicants and the number of such requests granted or denied. (3) The processing time for the review of such requests. X 1001. Findings Congress finds the following: (1) NASA uses enhanced use leasing to enter into agreements with private sector entities, State and local governments, academic institutions, and other Federal agencies for lease of non-excess, underutilized NASA properties and facilities. (2) NASA uses enhanced use leasing authority to support responsible management of its real property, including to improve the use of underutilized property for activities that are compatible with NASA’s mission and to reduce facility operating and maintenance costs. (3) In fiscal year 2019, under its enhanced use lease authority, NASA leased 65 real properties. (4) In fiscal year 2019, NASA’s use of enhanced use leasing resulted in the collection of $10,843,025.77 in net revenue. (5) In fiscal year 2019, NASA used a portion of its enhanced use leasing revenues for repairs of facility control systems such as lighting and heating, ventilation, and air conditioning. (6) NASA’s use of enhanced use leasing authority can contribute to reducing the rate of increase of the Agency’s overall deferred maintenance cost. 1002. Extension of authority to enter into leases of non-excess property of the national aeronautics and space administration Section 20145(g) of title 51, United States Code, is amended by striking December 31, 2021 December 31, 2031 XI 1101. Hearings (a) In general Each standing committee of the House of Representatives shall hold a hearing on the implementation of this Act within one year of enactment. (b) Exercise of rulemaking authority Subsection (a) is enacted— (1) as an exercise of rulemaking power of the House of Representatives, and, as such, shall be considered as part of the rules of the House, and such rules shall supersede any other rule of the House only to the extent that rule is inconsistent therewith; and (2) with full recognition of the constitutional right of either House to change such rules (so far as relating to the procedure in such House) at any time, in the same manner, and to the same extent as in the case of any other rule of the House. XII 1201. Code of official conduct In rule XXIII of the Rules of the House of Representatives, strike clause 21 and insert the following: 21. (a) Except as provided in paragraphs (b) and (c), a Member, Delegate, Resident Commissioner, officer, or employee of the House shall not knowingly and willfully disclose publicly the identity of, or personally identifiable information about, any individual who has reported allegations of possible wrongdoing, including retaliation, under processes and protections provided by the Civil Service Reform Act of 1978, the Whistleblower Protection Act of 1989, the Intelligence Community Whistleblower Protection Act of 1998, or any other Federal law that establishes the right for individuals to make protected disclosures to Congress. (b) The limitation in paragraph (a) shall not apply to any disclosure of an individual’s identity or personally identifiable information if— (1) the individual has provided express written consent prior to such disclosure; (2) the individual has already voluntarily and publicly disclosed their identity; or (3) the disclosure is by the chair of a committee after an affirmative vote by two-thirds of the members of the committee that such disclosure is in the public interest. (c) Nothing in this clause shall prevent— (1) an investigation of any allegation of wrongdoing disclosed by any individual; or (2) the public disclosure of substantive information shared by any individual that is not personally identifiable to that individual. (d) Disclosures made pursuant to paragraph (b)(3) shall be subject to appropriate safeguards, including that the individual be provided timely advance notice if possible before their identity or any personally identifiable information is disclosed prior to the vote described in paragraph (b)(3), unless such information would jeopardize the related investigations. When providing such notice to the individual the committee chair shall send the individual a written explanation of the reasons for the disclosure. . XIII 1301. Study on foreign ports (a) In general Not later than 90 days after the date of enactment of this Act, the Chairman of the Federal Maritime Commission shall seek to enter into an agreement with a federally funded research and development center to evaluate how foreign ownership of marine terminals at the 15 largest United States container ports affects or could affect United States economic security. (b) Contents In carrying out the study under subsection (a), the center selected under such subsection shall— (1) consider— (A) changes in ownership of the 15 largest United States container ports over the past 10 years as well as announced ownership changes from 2023 and 2024; (B) instances of ownership in individual marine terminals and cumulative ownership by Chinese or Russian entities or nationals; (C) instances of ownership in individual marine terminals and cumulative ownership by any foreign entity; (D) the amount of— (i) Port Infrastructure Development Grant funds since fiscal year 2018 that have gone to ports and marine terminals that are owned wholly or partially foreign owned; and (ii) Port Security Grant funds since fiscal year 2003 that have gone to ports and marine terminals that are owned wholly or partially foreign owned; and (E) where ownership exists, a detailed description of foreign operational control including both affirmative and negative control; and (2) offer recommendations on— (A) policies by ports and marine terminal operators to prevent excessive foreign ownership that could threaten United States economic security; (B) whether ownership affords the foreign owner access to operational technology and information unique to the United States and otherwise unavailable; and (C) whether foreign ownership has or could affect the supply chain and policies related to the prioritization of certain cargoes. (c) Report Not later than 1 year after the initiation of the evaluation under subsection (a), the Chairman of the Federal Maritime Commission shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives the results of such evaluation. XIV 1401. Determination of budgetary effects The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation XV 1501. Frequency of board of directors meetings Section 113 of the Federal Credit Union Act ( 12 U.S.C. 1761b (1) by striking monthly (2) in the matter preceding paragraph (1), by striking The board of directors (a) In general The board of directors ; (3) in subsection (a) (as so designated), by striking shall meet at least once a month and (4) by adding at the end the following: (b) Meetings The board of directors of a Federal credit union shall meet as follows: (1) With respect to a de novo Federal credit union, not less frequently than monthly during each of the first five years of the existence of such Federal credit union. (2) Not less than six times annually, with at least one meeting held during each fiscal quarter, with respect to a Federal credit union— (A) with composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and (B) with a capability of management rating under such composite rating of either 1 or 2. (3) Not less frequently than once a month, with respect to a Federal credit union— (A) with composite rating of either 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or (B) with a capability of management rating under such composite rating of either 3, 4, or 5. . XVI 1601. Appropriations The following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2024, and for other purposes, namely: Department of Health and Human Services Health resources and services administration rural health For an additional amount for the Telehealth Resource Center of the Federal Office of Rural Health Policy of the Office for the Advancement of Telehealth, to provide assistance with respect to technical, legal, regulatory service delivery or other related barriers to the development of telehealth technologies for skilled nursing facilities (as defined in section 1819 of the Social Security Act) and nursing facilities (as defined in section 1919 of such Act), $1,000,000 to remain available through September 30, 2025. Department of Agriculture Executive operations office of budget and program analysis For an additional amount for necessary expenses of the Office of Budget and Program Analysis, $1,000,000. Department of State Capital investment fund For an additional amount for necessary expenses of the Capital Investment Fund, as authorized, $1,000,000, to remain available until expended. Department of Defense Operation and maintenance operation and maintenance, army For an additional amount for expenses, not otherwise provided for, necessary for the operation and maintenance of the Army, as authorized by law, $1,000,000. Department of Homeland Security Departmental management, intelligence, situational awareness, and oversight management directorate operations and support For an additional amount for necessary expenses of the Management Directorate for operations and support, $1,000,000. Department of Energy Energy programs energy information administration For an additional amount for Department of Energy expenses necessary in carrying out the activities of the Energy Information Administration, $1,000,000, to remain available until expended.

Summary: Responsible Legislating Act This bill establishes or modifies various federal programs, including programs to increase participation in tax-exempt retirement plans, assist members of the Armed Forces, and increase penalties for human trafficking. Among other provisions, the bill extends through FY2024 livestock mandatory reporting requirements under the Livestock Mandatory Reporting Act of 1999; provides for apprenticeship training for members of the Armed Forces; makes various changes to tax-exempt pension plan provisions, including expanding automatic enrollment, increasing the tax credit for retirement savings contributions, and increasing the age for mandatory minimum distributions; establishes a Boots to Business Program to assist current and former members of the Armed Forces, including members of the National Guard and Reserves, interested in business ownership; increases criminal penalties for human trafficking and coercion and enticement in school zones; establishes the Commission to Study the Potential Creation of a National Museum of Asian Pacific American History and Culture; requires a report on increasing foreign direct investment in semiconductor-related manufacturing and production; and directs the Federal Maritime Commission, through a federally-funded research and development center, to evaluate the effect of foreign ownership of marine terminals at the 15 largest U.S. container ports on U.S. economic security. The bill appropriates funds in FY2024 for programs or divisions of the Departments of Health and Human Services, Agriculture, State, Defense, Homeland Security, and Energy.