(v) in subparagraph (J)(i)— 
(I) by striking ‘‘the participant’’ 
each place it appears and inserting ‘‘a 
participant’’, 
(II) in the matter preceding sub-
clause (I), by inserting ‘‘referred to in 
subsection (e)(3)(B)’’ after ‘‘invest-
ment advice’’, and 
(III) in subclause (II), by strik-
ing ‘‘section 408(b)(4)’’ and inserting 
‘‘subsection (d)(4)’’. 
(3) 
AMENDMENT
TO
2006
ACT.—Section 
601(b)(4) of the 2006 Act is amended by striking 
‘‘section 4975(c)(3)(B)’’ and inserting ‘‘section 
4975(e)(3)(B)’’. 
(b) AMENDMENTS RELATED TO SECTION 611.— 
(1) 
AMENDMENT
TO
ERISA.—Section 
408(b)(18)(C) of ERISA is amended by striking ‘‘or 
less’’. 
(2) AMENDMENTS
TO
1986
CODE.—Section 
4975(d) of the 1986 Code is amended— 
(A) in the matter preceding subparagraph 
(A) of paragraph (18)— 
(i) by striking ‘‘party in interest’’ and 
inserting ‘‘disqualified person’’, and
(ii) by striking ‘‘subsection (e)(3)(B)’’ 
and inserting ‘‘subsection (e)(3)’’, 
(B) in paragraphs (19), (20), and (21), by 
striking ‘‘party in interest’’ each place it ap-
pears and inserting ‘‘disqualified person’’, and 
(C) by striking ‘‘or less’’ in paragraph 
(21)(C). 
(c) AMENDMENTS RELATED TO SECTION 612.—Sec-
tion 4975(f)(11)(B)(i) of the 1986 Code is amended by— 
(1) inserting ‘‘of the Employee Retirement In-
come 
Security 
Act 
of 
1974’’ 
after 
‘‘section 
407(d)(1)’’, and 
(2) inserting ‘‘of such Act’’ after ‘‘section 
407(d)(2)’’. 
(d) AMENDMENTS RELATED TO SECTION 624.—Sec-
tion 404(c)(5) of ERISA is amended by striking ‘‘partici-
pant’’ each place it appears and inserting ‘‘participant or 
beneficiary’’. 
SEC. 8. AMENDMENTS RELATED TO TITLE VII. 
(a) AMENDMENTS TO ERISA.— 
(1) Section 203(f)(1)(B) of ERISA is amended 
to read as follows: 
‘‘(B) the requirements of section 204(c) or 
205(g), or the requirements of subsection (e),
with respect to accrued benefits derived from 
employer contributions,’’. 
(2) Section 204(b)(5) of ERISA is amended— 
(A) by striking ‘‘clause’’ in subparagraph 
(A)(iii) and inserting ‘‘subparagraph’’, and 
(B) by inserting ‘‘otherwise’’ before ‘‘allow-
able’’ in subparagraph (C). 
(3) Subclause (II) of section 204(b)(5)(B)(i) of 
ERISA is amended to read as follows: 
‘‘(II) PRESERVATION
OF
CAP-
ITAL.—An applicable defined benefit 
plan shall be treated as failing to 
meet the requirements of paragraph 
(1)(H) unless the plan provides that 
an interest credit (or equivalent 
amount) of less than zero shall in no 
event result in the account balance or 
similar amount being less than the ag-
gregate amount of contributions cred-
ited to the account.’’. 
(b) AMENDMENTS TO 1986 CODE.— 
(1) Section 411(b)(5) of the 1986 Code is 
amended— 
(A) by striking ‘‘clause’’ in subparagraph 
(A)(iii) and inserting ‘‘subparagraph’’, and
(B) by inserting ‘‘otherwise’’ before ‘‘allow-
able’’ in subparagraph (C). 
(2) Section 411(a)(13)(A) of the 1986 Code is 
amended— 
(A) by striking ‘‘paragraph (2)’’ in clause 
(i) and inserting ‘‘subparagraph (B)’’, 
(B) by striking clause (ii) and inserting the 
following new clause: 
‘‘(ii) the requirements of subsection 
(a)(11) or (c), or the requirements of sec-
tion 417(e), with respect to accrued bene-
fits derived from employer contributions,’’, 
and 
(C) by striking ‘‘paragraph (3)’’ in the 
matter following clause (ii) and inserting ‘‘sub-
paragraph (C)’’. 
(3) Subclause (II) of section 411(b)(5)(B)(i) of 
the 1986 Code is amended to read as follows: 
‘‘(II) PRESERVATION
OF
CAP-
ITAL.—An applicable defined benefit 
plan shall be treated as failing to 
meet the requirements of paragraph 
(1)(H) unless the plan provides that 
an interest credit (or equivalent 
amount) of less than zero shall in no
event result in the account balance or 
similar amount being less than the ag-
gregate amount of contributions cred-
ited to the account.’’. 
(c) AMENDMENTS TO 2006 ACT.— 
(1) Section 701(d)(2) of the 2006 Act is 
amended 
by 
striking 
‘‘204(g)’’ 
and 
inserting 
‘‘205(g)’’. 
(2) Section 701(e) of the 2006 Act is amend-
ed— 
(A) by inserting ‘‘on or’’ after ‘‘period’’ in 
paragraph (3), 
(B) in paragraph (4)— 
(i) by inserting ‘‘the earlier of’’ after 
‘‘before’’ in the matter preceding subpara-
graph (A), and 
(ii) by striking ‘‘earlier’’ and inserting 
‘‘later’’ in subparagraph (A), 
(C) by inserting ‘‘on or’’ before ‘‘after’’ 
each place it appears in paragraph (5), and 
(D) by adding at the end the following new 
paragraph: 
‘‘(6) SPECIAL
RULE
FOR
VESTING
REQUIRE-
MENTS.—The requirements of section 203(f)(2) of 
the Employee Retirement Income Security Act of
1974 and section 411(a)(13)(B) of the Internal Rev-
enue Code of 1986 (as added by this Act)— 
‘‘(A) shall not apply to a participant who 
does not have an hour of service after the effec-
tive date of such requirements (as otherwise de-
termined under this subsection); and 
‘‘(B) in the case of a plan other than a 
plan described in paragraph (3) or (4), shall 
apply to plan years ending on or after June 29, 
2005.’’. 
SEC. 9. AMENDMENTS RELATED TO TITLE VIII. 
(a) AMENDMENTS RELATED TO SECTION 801.— 
(1) Section 404(o) of the 1986 Code is amend-
ed— 
(A) by striking ‘‘430(g)(2)’’ in paragraph 
(2)(A)(ii) and inserting ‘‘430(g)(3)’’, and 
(B) by striking ‘‘412(f)(4)’’ in paragraph 
(4)(B) and inserting ‘‘412(d)(3)’’. 
(2) Section 404(a)(7)(A) of the 1986 Code is 
amended— 
(A) by striking the next to last sentence, 
and 
(B) by striking ‘‘the plan’s funding short-
fall determined under section 430’’ in the last 
sentence and inserting ‘‘the excess (if any) of
the plan’s funding target (as defined in section 
430(d)(1)) over the value of the plan’s assets 
(as determined under section 430(g)(3))’’. 
(b) AMENDMENT RELATED TO SECTION 802.—Sec-
tion 404(a)(1)(D)(i) of the 1986 Code is amended by 
striking ‘‘431(c)(6)(C)’’ and inserting ‘‘431(c)(6)(D)’’. 
(c) AMENDMENT RELATED
TO SECTION 803.— 
Clause (iii) of section 404(a)(7)(C) of the 1986 Code is 
amended to read as follows: 
‘‘(iii) LIMITATION.—In the case of 
employer contributions to 1 or more de-
fined contribution plans— 
‘‘(I) if such contributions do not 
exceed 6 percent of the compensation 
otherwise paid or accrued during the 
taxable year to the beneficiaries under 
such plans, this paragraph shall not 
apply to such contributions or to em-
ployer contributions to the defined 
benefit plans to which this paragraph 
would otherwise apply by reason of 
contributions to the defined contribu-
tion plans, and 
‘‘(II) if such contributions exceed 
6 percent of such compensation, this
paragraph shall be applied by only 
taking into account such contributions 
to the extent of such excess. 
For purposes of this clause, amounts car-
ried over from preceding taxable years 
under subparagraph (B) shall be treated 
as employer contributions to 1 or more de-
fined contributions plans to the extent at-
tributable to employer contributions to 
such plans in such preceding taxable 
years.’’. 
(d) AMENDMENTS RELATED TO SECTION 824.— 
(1) Section 408A(c)(3)(B) of the 1986 Code, as 
in effect after the amendments made by section 
824(b)(1) of the 2006 Act, is amended— 
(A) by striking the second ‘‘an’’ before ‘‘el-
igible’’, 
(B) by striking ‘‘other than a Roth IRA’’, 
and 
(C) by adding at the end the following new 
flush sentence: 
‘‘This subparagraph shall not apply to a quali-
fied rollover contribution from a Roth IRA or 
to a qualified rollover contribution from a des-