retirement account under section 408(p)), any 
applicable annual addition to such plan in ex-
cess of the limitation under subsection (a) shall 
be treated for purposes of sections 408 and 
408A as a contribution for the taxable year in 
excess of the maximum amount allowable as a 
deduction under section 219 for the taxable 
year. 
‘‘(B) AFTER TAX CONTRIBUTIONS.—In the 
case of applicable annual additions in excess of 
the limitation under subsection (a)— 
‘‘(i) which are treated as designated 
nondeductible contributions under section 
408(o), rules similar to the rules of para-
graph (1)(B) shall apply, and 
‘‘(ii) 
to 
a 
Roth 
IRA, 
section 
408A(d)(2)(C) shall apply to such addi-
tions and to any net income allocable to 
such additions. 
For purposes of clause (ii), distributions from a 
Roth IRA shall be treated as first made from 
amounts described in clause (ii) and section 
408A(d)(2)(C) shall be applied in the same 
manner as if there were a distribution of a con-
tribution described in section 408(d)(4) (with-
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out regard to whether such distribution is time-
ly made). 
‘‘(3) ALLOCATION OF EXCESS APPLICABLE AN-
NUAL ADDITIONS.—If the applicable dollar amount 
for a taxable year exceeds the amount described in 
subsection (a)(2), the taxpayer may, in such form 
and manner as the Secretary may prescribe, allocate 
such excess to applicable annual additions to each 
applicable retirement plan in such manner as the 
taxpayer chooses. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) APPLICABLE ANNUAL ADDITION.— 
‘‘(A) IN GENERAL.—The term ‘applicable 
annual addition’ means any of the following 
made to or on behalf of an individual: 
‘‘(i) An annual addition (within the 
meaning of section 415(c)(2)). 
‘‘(ii) Any contribution to an individual 
retirement plan, including any employer or 
employee contribution to a simplified em-
ployee pension under section 408(k) or a 
simple retirement account under section 
408(p). 
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‘‘(iii) Any deferral under an eligible 
deferred compensation plan described in 
section 457(b) which is maintained by an 
eligible employer described in section 
457(e)(1)(A). 
‘‘(B) 
ROLLOVER
CONTRIBUTIONS
DIS-
REGARDED.—A rollover contribution under sec-
tion 402(c), 403(b)(8), 408(d)(3)(A)(ii), or 
457(e)(16) shall not be treated as an annual 
addition. 
‘‘(2) APPLICABLE DOLLAR AMOUNT.— 
‘‘(A) IN GENERAL.—The term ‘applicable 
dollar amount’ means $5,000,000. 
‘‘(B) ADJUSTMENT
FOR
INFLATION.—In 
the case of any taxable year beginning after 
2017, the $5,000,000 amount under subpara-
graph (A) shall be increased by an amount 
equal to the product of— 
‘‘(i) such amount, and 
‘‘(ii) the cost-of-living adjustment 
under section 1(f)(3) for the calendar year 
in which such taxable year begins, deter-
mined by substituting ‘calendar year 2016’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
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‘‘(C) ROUNDING.—If any amount as ad-
justed under subparagraph (B) is not a mul-
tiple of $1,000, such amount shall be rounded 
to the next lowest multiple of $1,000. 
‘‘(3) APPLICABLE
RETIREMENT
PLAN.—The 
term ‘applicable retirement plan’ means— 
‘‘(A) a defined contribution plan to which 
section 401(a) or 403(a) applies, 
‘‘(B) an annuity contract under section 
403(b), 
‘‘(C) an eligible deferred compensation 
plan described in section 457(b) which is main-
tained by an eligible employer described in sec-
tion 457(e)(1)(A), or 
‘‘(D) an individual retirement plan. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations and guidance as are necessary or appro-
priate to carry out the purposes of this section, including 
regulations or guidance that provide for the application 
of this section and section 4974(e) in the case of plans 
with a valuation date other than the last day of a calendar 
year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The table of contents for subpart A of 
part I of subchapter D of chapter 1 of such 
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Code is amended by adding after the item relat-
ing to section 409A the following new item: 
‘‘Sec. 409B. Contribution limit on certain retirement plans with large account 
balances.’’. 
(B) Section 402(g) of such Code is amend-
ed by adding at the end the following new para-
graph: 
‘‘(9) AGGREGATE LIMITATION.—For additional 
limitation on contributions to certain plans with 
large account balances, see section 409B.’’. 
(C) Section 403(b)(1) of such Code is 
amended by adding at the end the following 
new sentence: ‘‘For additional limitation on 
contributions to certain plans with large ac-
count balances, see section 409B.’’. 
(D) Section 408(r) of such Code is amend-
ed by adding at the end the following new para-
graph: 
‘‘(3) For additional limitation on contributions 
to certain plans with large account balances, see sec-
tion 409B.’’. 
(E) Section 457(c) of such Code is amend-
ed by adding at the end the following new sen-
tence: ‘‘For additional limitation on contribu-
tions to certain plans with large account bal-
ances, see section 409B.’’. 
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(b) EXCISE TAX ON EXCESS ANNUAL ADDITIONS.— 
(1) IN
GENERAL.—Subsection (a) of section 
4973 of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘or’’ at the end of para-
graph (5), 
(B) by inserting ‘‘or’’ after the comma at 
the end of paragraph (6), and 
(C) by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) an applicable retirement plan (within the 
meaning of section 409B(c)(3)),’’. 
(2) EXCESS
CONTRIBUTIONS
TO
APPLICABLE 
RETIREMENT PLANS.—Section 4973 of such Code is 
amended by adding at the end the following new 
subsection: 
‘‘(i) EXCESS CONTRIBUTIONS TO APPLICABLE RE-
TIREMENT PLANS.—For purposes of this section, in the 
case of applicable retirement plans (within the meaning 
of section 409B(c)(3)), the term ‘excess contributions’ 
with respect to any taxable year means the sum of— 
‘‘(1) the excess of the applicable annual addi-
tions (within the meaning of section 409B(c)(1)) to 
such plans over the limitation under section 409B(a) 
for such taxable year, and 
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‘‘(2) the lesser of— 
‘‘(A) the amount determined under this 
subsection for the preceding taxable year, re-
duced by the aggregate distributions from such 
plans for the taxable year (including distribu-
tions required under section 4974(e)) to the ex-
tent not contributed in a rollover contribution 
to another eligible retirement plan in accord-
ance with section 402(c), 403(b)(8), 457(e)(16), 
408(d)(3), or 408A(d)(3), or 
‘‘(B) the amount (if any) by which the 
amount determined under section 409B(a)(2) 
for the taxable year exceeds the applicable dol-
lar amount under section 409B(c)(2) for the 
taxable year.’’. 
(3) CONFORMING
AMENDMENTS.—Subsection 
(a) of section 4973 of such Code is amended— 
(A) by striking ‘‘accounts or annuities’’ 
and inserting ‘‘accounts, annuities, or plans’’, 
and 
(B) by striking ‘‘account or annuity’’ and 
inserting ‘‘account, annuity, or plan’’. 
(c) INCREASE IN MINIMUM REQUIRED DISTRIBU-
TIONS.— 
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(1) IN GENERAL.—Section 4974 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following: 
‘‘(e) INCREASE IN MINIMUM REQUIRED DISTRIBU-
TIONS FOR PAYEES WITH LARGE AGGREGATE ACCOUNT 
BALANCES.— 
‘‘(1) IN GENERAL.—If this subsection applies to 
a payee for any taxable year— 
‘‘(A) all qualified retirement plans and eli-
gible deferred compensation plans of the payee 
which are applicable retirement plans taken into 
account in computing the excess described in 
paragraph (2)(A) shall be treated as 1 plan 
solely for purposes of applying this section to 
the increase in minimum required distributions 
for the taxable year described in subparagraph 
(B), and 
‘‘(B) the minimum required distributions 
under this section for all plans treated as 1 
plan under subparagraph (A) with respect to 
such payee for the taxable year shall be in-
creased by the excess (if any) of— 
‘‘(i) the excess described in paragraph 
(2)(A), over 
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‘‘(ii) the sum of the minimum re-
quired distributions (determined without 
regard to this subsection) for all such 
plans. 
‘‘(2) 
APPLICATION.—This 
subsection 
shall 
apply to a payee for a taxable year— 
‘‘(A) if the aggregate balances to the credit 
of the payee (whether as a participant, owner, 
or beneficiary) in all applicable retirement plans 
(determined as of the close of the calendar year 
preceding the calendar year in which the tax-
able year begins) exceed the applicable dollar 
amount for the calendar year in which the tax-
able year begins, and 
‘‘(B) without regard to whether amounts 
with respect to the payee are otherwise required 
to be distributed under section 401(a)(9), 
403(b)(10), 408(a)(6), 408(b)(3), or 457(d)(2). 
‘‘(3) COORDINATION AND ALLOCATION.— 
‘‘(A) MINIMUM
DISTRIBUTION
REQUIRE-
MENTS.—If this subsection applies to a payee 
for any taxable year— 
‘‘(i) this section shall apply first to 
minimum required distributions deter-
mined without regard to this subsection 
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and then to any increase in minimum re-
quired distributions by reason of this sub-
section, and 
‘‘(ii) nothing in this subsection shall 
be construed to affect the amount of any 
minimum required distribution determined 
without regard to this subsection or the 
plan or plans from which it is required to 
be distributed from. 
‘‘(B) ALLOCATION OF INCREASE IN MIN-
IMUM
REQUIRED
DISTRIBUTIONS.—The tax-
payer may, in such form and manner as the 
Secretary may prescribe, allocate any increase 
in minimum required distributions by reason of 
this subsection to applicable retirement plans 
treated as 1 plan under subparagraph (A) in 
such manner as the taxpayer chooses. 
‘‘(4) TREATMENT OF ROTH IRAS.— 
‘‘(A) IN GENERAL.—Notwithstanding sec-
tion 408A(c)(5)— 
‘‘(i) the aggregate balance to the cred-
it of a payee of any Roth IRA shall be 
taken into account for purposes of this 
subsection, and 
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‘‘(ii) distributions from a Roth IRA 
may be taken into account in determining 
whether the required increase in minimum 
required distributions by reason of this 
subsection has been satisfied. 
‘‘(B) INCLUSION IN INCOME OF DISTRIB-
UTED EARNINGS.—If any distribution from a 
Roth IRA is taken into account under subpara-
graph (A)(ii), then, notwithstanding section 
408A(d)(5), the portion of such distribution 
which is properly allocable to net income on 
contributions to the Roth IRA shall not be 
treated as a qualified distribution and shall be 
included in gross income of the payee. 
‘‘(5) RATABLE INCLUSION FOR FIRST YEAR OF 
INCREASE.—If the first taxable year of a taxpayer 
for which there is a required increase in minimum 
required distributions by reason of this subsection 
begins before January 1, 2019, any amount required 
to be included in gross income by reason of such in-
crease shall be included in income ratably over the 
6-taxable-year period (or such shorter period as the 
taxpayer may elect) beginning with such first taxable 
year. 
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‘‘(6) DEFINITIONS.—For purposes of this sub-
section, any term used in this subsection which is 
also used in section 409B shall have the same mean-
ing as when such term is used in such section.’’. 
(2) EXCEPTION FROM 10 PERCENT ADDITIONAL 
TAX ON EARLY DISTRIBUTIONS.—Section 72(t)(2) of 
such Code is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(H) DISTRIBUTIONS
OF
EXCESS
BAL-
ANCES.—Distributions from applicable retire-
ment plans (within the meaning of section 
409B) to the extent such distributions during 
the taxable year do not exceed the amount (if 
any) by which— 
‘‘(i) the amount determined under 
section 409B(a)(2) for the taxable year, 
exceeds 
‘‘(ii) the applicable dollar amount 
under section 409B(c)(2) for the preceding 
taxable year.’’. 
(d) REPORTING REQUIREMENTS.—Section 6047 of 
the Internal Revenue Code of 1986 is amended by redesig-
nating subsection (g) as subsection (h) and by inserting 
after subsection (f) the following: 
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‘‘(g) REPORTING RELATING TO AGGREGATE CON-
TRIBUTION AND BALANCE LIMITS ON CERTAIN RETIRE-
MENT PLANS.—The Secretary shall require the plan ad-
ministrator or trustee of an applicable retirement plan (as 
defined in section 409B) to make such returns and reports 
to the Secretary and participants and beneficiaries as are 
necessary to apply the aggregate limits on contributions 
imposed by section 409B and the increases in minimum 
required distributions required by section 4974(e). If the 
account balance of a plan as of the close of a calendar 
year is not otherwise required under this title to be re-
ported to a participant, a beneficiary, or the Secretary, 
such requirements shall include a requirement that the 
plan administrator or trustee shall notify the participant, 
the beneficiary, or the Secretary of such account balance 
at such time and in such manner as the Secretary may 
prescribe.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after the date of the enactment of this Act. 
(2) PLAN
REQUIREMENTS.—The amendments 
made by subsection (d) shall apply to years begin-
ning after the date of the enactment of this Act. 
Æ 
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