IB 
Union Calendar No. 42 
116TH CONGRESS 
1ST SESSION H. R. 1994 
[Report No. 116–65, Part I] 
To amend the Internal Revenue Code of 1986 to encourage retirement 
savings, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2019 
Mr. NEAL (for himself, Mr. BRADY, Mr. KIND, and Mr. KELLY of Pennsyl-
vania) introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Education and 
Labor, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
MAY 16, 2019 
Additional sponsors: Mr. LUETKEMEYER, Mr. COURTNEY, Mrs. WAGNER, Mr. 
EVANS, Mr. BUDD, Mr. SCHNEIDER, Mr. PASCRELL, Mr. PANETTA, Mr. 
STAUBER, Mrs. AXNE, Mrs. TRAHAN, Mrs. MURPHY, Mr. BEYER, Mr. 
LARSON of Connecticut, Ms. SA´NCHEZ, Mr. BLUMENAUER, Mr. THOMP-
SON of California, Mr. FITZPATRICK, Mrs. WALORSKI, Mr. HARDER of 
California, Mr. HORSFORD, Mr. HUDSON, Mr. VELA, Mr. SUOZZI, Mr. 
GROTHMAN, Mrs. FLETCHER, Mr. COLE, Mr. KING of New York, Mr. 
RESCHENTHALER, Mr. KENNEDY, Mr. BISHOP of Georgia, Mr. AMODEI, 
Ms. TORRES SMALL of New Mexico, Mr. KILDEE, Mr. BILIRAKIS, Mr. 
VAN DREW, Mr. GOODEN, Mr. LOEBSACK, Ms. GABBARD, Mr. KILMER, 
Mr. PERLMUTTER, Mr. ESTES, Mr. KIM, Mr. JOHN W. ROSE of Ten-
nessee, Mr. SOTO, Mr. GOTTHEIMER, Ms. KENDRA S. HORN of Okla-
homa, Mr. WATKINS, Ms. SPANBERGER, Mr. PERRY, Ms. FINKENAUER, 
Ms. SCHRIER, Mr. CLEAVER, Mr. MCCAUL, and Mr. MARSHALL 
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MAY 16, 2019 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
MAY 16, 2019 
Committee on Education and Labor discharged; committed to the Committee 
of the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on March 29, 2019] 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
retirement savings, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Set-
ting Every Community Up for Retirement Enhancement 
Act of 2019’’. 
(b) TABLE OF CONTENTS.—The table of contents of this 
Act is as follows: 
Sec. 1. Short title, etc. 
TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 
Sec. 101. Multiple employer plans; pooled employer plans. 
Sec. 102. Increase in 10 percent cap for automatic enrollment safe harbor after 
1st plan year. 
Sec. 103. Rules relating to election of safe harbor 401(k) status. 
Sec. 104. Increase in credit limitation for small employer pension plan startup 
costs. 
Sec. 105. Small employer automatic enrollment credit. 
Sec. 106. Certain taxable non-tuition fellowship and stipend payments treated as 
compensation for IRA purposes. 
Sec. 107. Repeal of maximum age for traditional IRA contributions. 
Sec. 108. Qualified employer plans prohibited from making loans through credit 
cards and other similar arrangements. 
Sec. 109. Portability of lifetime income options. 
Sec. 110. Treatment of custodial accounts on termination of section 403(b) plans. 
Sec. 111. Clarification of retirement income account rules relating to church-con-
trolled organizations. 
Sec. 112. Qualified cash or deferred arrangements must allow long-term employ-
ees working more than 500 but less than 1,000 hours per year 
to participate. 
Sec. 113. Penalty-free withdrawals from retirement plans for individuals in case 
of birth of child or adoption. 
Sec. 114. Increase in age for required beginning date for mandatory distributions. 
Sec. 115. Special rules for minimum funding standards for community news-
paper plans. 
Sec. 116. Treating excluded difficulty of care payments as compensation for deter-
mining retirement contribution limitations. 
TITLE II—ADMINISTRATIVE IMPROVEMENTS 
Sec. 201. Plan adopted by filing due date for year may be treated as in effect 
as of close of year. 
Sec. 202. Combined annual report for group of plans. 
Sec. 203. Disclosure regarding lifetime income. 
Sec. 204. Fiduciary safe harbor for selection of lifetime income provider. 
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Sec. 205. Modification of nondiscrimination rules to protect older, longer service 
participants. 
Sec. 206. Modification of PBGC premiums for CSEC plans. 
TITLE III—OTHER BENEFITS 
Sec. 301. Benefits provided to volunteer firefighters and emergency medical re-
sponders. 
Sec. 302. Expansion of section 529 plans. 
TITLE IV—REVENUE PROVISIONS 
Sec. 401. Modification of required distribution rules for designated beneficiaries. 
Sec. 402. Increase in penalty for failure to file. 
Sec. 403. Increased penalties for failure to file retirement plan returns. 
Sec. 404. Increase information sharing to administer excise taxes. 
TITLE I—EXPANDING AND PRE-
SERVING RETIREMENT SAV-
INGS 
SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER 
PLANS. 
(a) QUALIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Section 413 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(e) APPLICATION OF QUALIFICATION REQUIREMENTS 
FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH POOLED 
PLAN PROVIDERS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if a defined contribution plan to which 
subsection (c) applies— 
‘‘(A) is maintained by employers which 
have a common interest other than having adopt-
ed the plan, or 
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‘‘(B) in the case of a plan not described in 
subparagraph (A), has a pooled plan provider, 
then the plan shall not be treated as failing to meet 
the requirements under this title applicable to a plan 
described in section 401(a) or to a plan that consists 
of individual retirement accounts described in section 
408 (including by reason of subsection (c) thereof), 
whichever is applicable, merely because one or more 
employers of employees covered by the plan fail to 
take such actions as are required of such employers 
for the plan to meet such requirements. 
‘‘(2) LIMITATIONS.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any plan unless the terms of the 
plan provide that in the case of any employer in 
the plan failing to take the actions described in 
paragraph (1)— 
‘‘(i) the assets of the plan attributable 
to employees of such employer (or bene-
ficiaries of such employees) will be trans-
ferred to a plan maintained only by such 
employer (or its successor), to an eligible re-
tirement 
plan 
as 
defined 
in 
section 
402(c)(8)(B) for each individual whose ac-
count is transferred, or to any other ar-
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rangement that the Secretary determines is 
appropriate, unless the Secretary deter-
mines it is in the best interests of the em-
ployees of such employer (and the bene-
ficiaries of such employees) to retain the as-
sets in the plan, and 
‘‘(ii) such employer (and not the plan 
with respect to which the failure occurred or 
any other employer in such plan) shall, ex-
cept to the extent provided by the Secretary, 
be liable for any liabilities with respect to 
such plan attributable to employees of such 
employer (or beneficiaries of such employ-
ees). 
‘‘(B) FAILURES
BY
POOLED
PLAN
PRO-
VIDERS.—If the pooled plan provider of a plan 
described in paragraph (1)(B) does not perform 
substantially all of the administrative duties 
which are required of the provider under para-
graph (3)(A)(i) for any plan year, the Secretary 
may provide that the determination as to wheth-
er the plan meets the requirements under this 
title applicable to a plan described in section 
401(a) or to a plan that consists of individual 
retirement accounts described in section 408 (in-
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cluding by reason of subsection (c) thereof), 
whichever is applicable, shall be made in the 
same manner as would be made without regard 
to paragraph (1). 
‘‘(3) POOLED PLAN PROVIDER.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘pooled plan provider’ 
means, with respect to any plan, a person who— 
‘‘(i) is designated by the terms of the 
plan as a named fiduciary (within the 
meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of 
1974), as the plan administrator, and as 
the person responsible to perform all admin-
istrative duties (including conducting prop-
er testing with respect to the plan and the 
employees of each employer in the plan) 
which are reasonably necessary to ensure 
that— 
‘‘(I) the plan meets any require-
ment applicable under the Employee 
Retirement Income Security Act of 
1974 or this title to a plan described in 
section 401(a) or to a plan that con-
sists of individual retirement accounts 
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described in section 408 (including by 
reason of subsection (c) thereof), which-
ever is applicable, and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
such person determines are necessary 
for the plan to meet the requirements 
described in subclause (I), including 
providing to such person any disclo-
sures or other information which the 
Secretary may require or which such 
person otherwise determines are nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments, 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides such 
other information to the Secretary as the 
Secretary may require, before beginning op-
erations as a pooled plan provider, 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary (within 
the meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of 
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1974), and the plan administrator, with re-
spect to the plan, and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who are 
fiduciaries of, the plan are bonded in ac-
cordance with section 412 of the Employee 
Retirement Income Security Act of 1974. 
‘‘(B) AUDITS, EXAMINATIONS
AND
INVES-
TIGATIONS.—The Secretary may perform audits, 
examinations, and investigations of pooled plan 
providers as may be necessary to enforce and 
carry out the purposes of this subsection. 
‘‘(C) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a per-
son meets the requirements of this paragraph to 
be a pooled plan provider with respect to any 
plan, all persons who perform services for the 
plan and who are treated as a single employer 
under subsection (b), (c), (m), or (o) of section 
414 shall be treated as one person. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the adminis-
trative duties of the pooled plan provider de-
scribed in subparagraph (A)(i), each employer in 
a plan which has a pooled plan provider shall 
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be treated as the plan sponsor with respect to the 
portion of the plan attributable to employees of 
such employer (or beneficiaries of such employ-
ees). 
‘‘(4) GUIDANCE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
issue such guidance as the Secretary determines 
appropriate to carry out this subsection, includ-
ing guidance— 
‘‘(i) to identify the administrative du-
ties and other actions required to be per-
formed by a pooled plan provider under this 
subsection, 
‘‘(ii) which describes the procedures to 
be taken to terminate a plan which fails to 
meet the requirements to be a plan described 
in paragraph (1), including the proper 
treatment of, and actions needed to be taken 
by, any employer in the plan and the assets 
and liabilities of the plan attributable to 
employees of such employer (or beneficiaries 
of such employees), and 
‘‘(iii) identifying appropriate cases to 
which the rules of paragraph (2)(A) will 
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apply to employers in the plan failing to 
take the actions described in paragraph (1). 
The Secretary shall take into account under 
clause (iii) whether the failure of an employer or 
pooled plan provider to provide any disclosures 
or other information, or to take any other action, 
necessary to administer a plan or to allow a 
plan to meet requirements applicable to the plan 
under section 401(a) or 408, whichever is appli-
cable, has continued over a period of time that 
demonstrates a lack of commitment to compli-
ance. 
‘‘(B) GOOD FAITH COMPLIANCE WITH LAW 
BEFORE
GUIDANCE.—An employer or pooled 
plan provider shall not be treated as failing to 
meet a requirement of guidance issued by the 
Secretary under this paragraph if, before the 
issuance of such guidance, the employer or pooled 
plan provider complies in good faith with a rea-
sonable interpretation of the provisions of this 
subsection to which such guidance relates. 
‘‘(5) MODEL PLAN.—The Secretary shall publish 
model plan language which meets the requirements of 
this subsection and of paragraphs (43) and (44) of 
section 3 of the Employee Retirement Income Security 
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Act of 1974 and which may be adopted in order for 
a plan to be treated as a plan described in paragraph 
(1)(B).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
413(c)(2) of such Code is amended by striking ‘‘sec-
tion 401(a)’’ and inserting ‘‘sections 401(a) and 
408(c)’’. 
(3) TECHNICAL AMENDMENT.—Section 408(c) of 
such Code is amended by inserting after paragraph 
(2) the following new paragraph: 
‘‘(3) There is a separate accounting for any in-
terest of an employee or member (or spouse of an em-
ployee or member) in a Roth IRA.’’. 
(b) NO COMMON INTEREST REQUIRED FOR POOLED 
EMPLOYER PLANS.—Section 3(2) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(2)) is 
amended by adding at the end the following: 
‘‘(C) A pooled employer plan shall be treat-
ed as— 
‘‘(i) a single employee pension benefit 
plan or single pension plan; and 
‘‘(ii) a plan to which section 210(a) 
applies.’’. 
(c) POOLED EMPLOYER PLAN AND PROVIDER DE-
FINED.— 
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(1) IN GENERAL.—Section 3 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1002) is amended by adding at the end the following: 
‘‘(43) POOLED EMPLOYER PLAN.— 
‘‘(A) IN GENERAL.—The term ‘pooled em-
ployer plan’ means a plan— 
‘‘(i) which is an individual account 
plan established or maintained for the pur-
pose of providing benefits to the employees 
of 2 or more employers; 
‘‘(ii) which is a plan described in sec-
tion 401(a) of the Internal Revenue Code of 
1986 which includes a trust exempt from 
tax under section 501(a) of such Code or a 
plan that consists of individual retirement 
accounts described in section 408 of such 
Code (including by reason of subsection (c) 
thereof); and 
‘‘(iii) the terms of which meet the re-
quirements of subparagraph (B). 
Such term shall not include a plan maintained 
by employers which have a common interest 
other than having adopted the plan. 
‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 
The requirements of this subparagraph are met 
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with respect to any plan if the terms of the 
plan— 
‘‘(i) designate a pooled plan provider 
and provide that the pooled plan provider is 
a named fiduciary of the plan; 
‘‘(ii) designate one or more trustees 
meeting 
the 
requirements 
of 
section 
408(a)(2) of the Internal Revenue Code of 
1986 (other than an employer in the plan) 
to be responsible for collecting contributions 
to, and holding the assets of, the plan and 
require such trustees to implement written 
contribution collection procedures that are 
reasonable, diligent, and systematic; 
‘‘(iii) provide that each employer in 
the plan retains fiduciary responsibility 
for— 
‘‘(I) the selection and monitoring 
in accordance with section 404(a) of 
the person designated as the pooled 
plan provider and any other person 
who, in addition to the pooled plan 
provider, is designated as a named fi-
duciary of the plan; and 
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‘‘(II) to the extent not otherwise 
delegated to another fiduciary by the 
pooled plan provider and subject to the 
provisions of section 404(c), the invest-
ment and management of the portion 
of the plan’s assets attributable to the 
employees of the employer (or bene-
ficiaries of such employees); 
‘‘(iv) provide that employers in the 
plan, and participants and beneficiaries, 
are not subject to unreasonable restrictions, 
fees, or penalties with regard to ceasing 
participation, receipt of distributions, or 
otherwise transferring assets of the plan in 
accordance with section 208 or paragraph 
(44)(C)(i)(II); 
‘‘(v) require— 
‘‘(I) the pooled plan provider to 
provide to employers in the plan any 
disclosures or other information which 
the Secretary may require, including 
any disclosures or other information to 
facilitate the selection or any moni-
toring of the pooled plan provider by 
employers in the plan; and 
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‘‘(II) each employer in the plan to 
take such actions as the Secretary or 
the pooled plan provider determines 
are necessary to administer the plan or 
for the plan to meet any requirement 
applicable under this Act or the Inter-
nal Revenue Code of 1986 to a plan de-
scribed in section 401(a) of such Code 
or to a plan that consists of individual 
retirement accounts described in sec-
tion 408 of such Code (including by 
reason of subsection (c) thereof), which-
ever is applicable, including providing 
any disclosures or other information 
which the Secretary may require or 
which the pooled plan provider other-
wise determines are necessary to ad-
minister the plan or to allow the plan 
to meet such requirements; and 
‘‘(vi) provide that any disclosure or 
other information required to be provided 
under clause (v) may be provided in elec-
tronic form and will be designed to ensure 
only reasonable costs are imposed on pooled 
plan providers and employers in the plan. 
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‘‘(C) EXCEPTIONS.—The term ‘pooled em-
ployer plan’ does not include— 
‘‘(i) a multiemployer plan; or 
‘‘(ii) a plan established before the date 
of the enactment of the Setting Every Com-
munity Up for Retirement Enhancement 
Act of 2019 unless the plan administrator 
elects that the plan will be treated as a 
pooled employer plan and the plan meets 
the requirements of this title applicable to a 
pooled employer plan established on or after 
such date. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the adminis-
trative duties of the pooled plan provider de-
scribed in paragraph (44)(A)(i), each employer 
in a pooled employer plan shall be treated as the 
plan sponsor with respect to the portion of the 
plan attributable to employees of such employer 
(or beneficiaries of such employees). 
‘‘(44) POOLED PLAN PROVIDER.— 
‘‘(A) IN GENERAL.—The term ‘pooled plan 
provider’ means a person who— 
‘‘(i) is designated by the terms of a 
pooled employer plan as a named fiduciary, 
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as the plan administrator, and as the per-
son responsible for the performance of all 
administrative duties (including conducting 
proper testing with respect to the plan and 
the employees of each employer in the plan) 
which are reasonably necessary to ensure 
that— 
‘‘(I) the plan meets any require-
ment applicable under this Act or the 
Internal Revenue Code of 1986 to a 
plan described in section 401(a) of 
such Code or to a plan that consists of 
individual retirement accounts de-
scribed in section 408 of such Code (in-
cluding by reason of subsection (c) 
thereof), whichever is applicable; and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
pooled plan provider determines are 
necessary for the plan to meet the re-
quirements described in subclause (I), 
including providing the disclosures and 
information described in paragraph 
(43)(B)(v)(II); 
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‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides to 
the Secretary such other information as the 
Secretary may require, before beginning op-
erations as a pooled plan provider; 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary, and the 
plan administrator, with respect to the 
pooled employer plan; and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who are 
fiduciaries of, the pooled employer plan are 
bonded in accordance with section 412. 
‘‘(B) AUDITS, EXAMINATIONS
AND
INVES-
TIGATIONS.—The Secretary may perform audits, 
examinations, and investigations of pooled plan 
providers as may be necessary to enforce and 
carry out the purposes of this paragraph and 
paragraph (43). 
‘‘(C) GUIDANCE.—The Secretary shall issue 
such guidance as the Secretary determines ap-
propriate to carry out this paragraph and para-
graph (43), including guidance— 
‘‘(i) to identify the administrative du-
ties and other actions required to be per-
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formed by a pooled plan provider under ei-
ther such paragraph; and 
‘‘(ii) which requires in appropriate 
cases that if an employer in the plan fails 
to take the actions required under subpara-
graph (A)(i)(II)— 
‘‘(I) the assets of the plan attrib-
utable to employees of such employer 
(or beneficiaries of such employees) are 
transferred to a plan maintained only 
by such employer (or its successor), to 
an eligible retirement plan as defined 
in section 402(c)(8)(B) of the Internal 
Revenue Code of 1986 for each indi-
vidual whose account is transferred, or 
to any other arrangement that the Sec-
retary determines is appropriate in 
such guidance; and 
‘‘(II) such employer (and not the 
plan with respect to which the failure 
occurred or any other employer in such 
plan) shall, except to the extent pro-
vided in such guidance, be liable for 
any liabilities with respect to such 
plan attributable to employees of such 
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employer (or beneficiaries of such em-
ployees). 
The Secretary shall take into account under 
clause (ii) whether the failure of an em-
ployer or pooled plan provider to provide 
any disclosures or other information, or to 
take any other action, necessary to admin-
ister a plan or to allow a plan to meet re-
quirements 
described 
in 
subparagraph 
(A)(i)(II) has continued over a period of 
time that demonstrates a lack of commit-
ment to compliance. The Secretary may 
waive the requirements of subclause (ii)(I) 
in appropriate circumstances if the Sec-
retary determines it is in the best interests 
of the employees of the employer referred to 
in such clause (and the beneficiaries of such 
employees) to retain the assets in the plan 
with respect to which the employer’s failure 
occurred. 
‘‘(D) GOOD FAITH COMPLIANCE WITH LAW 
BEFORE
GUIDANCE.—An employer or pooled 
plan provider shall not be treated as failing to 
meet a requirement of guidance issued by the 
Secretary under subparagraph (C) if, before the 
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issuance of such guidance, the employer or pooled 
plan provider complies in good faith with a rea-
sonable interpretation of the provisions of this 
paragraph, or paragraph (43), to which such 
guidance relates. 
‘‘(E) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a per-
son meets the requirements of this paragraph to 
be a pooled plan provider with respect to any 
plan, all persons who perform services for the 
plan and who are treated as a single employer 
under subsection (b), (c), (m), or (o) of section 
414 of the Internal Revenue Code of 1986 shall 
be treated as one person.’’. 
(2) BONDING REQUIREMENTS FOR POOLED EM-
PLOYER PLANS.—The last sentence of section 412(a) 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1112(a)) is amended by inserting 
‘‘or in the case of a pooled employer plan (as defined 
in section 3(43))’’ after ‘‘section 407(d)(1))’’. 
(3) 
CONFORMING
AND
TECHNICAL
AMEND-
MENTS.—Section 3 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1002) is 
amended— 
(A) in paragraph (16)(B)— 
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(i) by striking ‘‘or’’ at the end of clause 
(ii); and 
(ii) by striking the period at the end 
and inserting ‘‘, or (iv) in the case of a 
pooled employer plan, the pooled plan pro-
vider.’’; and 
(B) by striking the second paragraph (41). 
(d) POOLED EMPLOYER AND MULTIPLE EMPLOYER 
PLAN REPORTING.— 
(1) ADDITIONAL INFORMATION.—Section 103 of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1023) is amended— 
(A) in subsection (a)(1)(B), by striking 
‘‘applicable subsections (d), (e), and (f)’’ and in-
serting ‘‘applicable subsections (d), (e), (f), and 
(g)’’; and 
(B) by amending subsection (g) to read as 
follows: 
‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO 
POOLED EMPLOYER AND MULTIPLE EMPLOYER PLANS.— 
An annual report under this section for a plan year shall 
include— 
‘‘(1) with respect to any plan to which section 
210(a) applies (including a pooled employer plan), a 
list of employers in the plan and a good faith esti-
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mate of the percentage of total contributions made by 
such employers during the plan year and the aggre-
gate account balances attributable to each employer in 
the plan (determined as the sum of the account bal-
ances of the employees of such employer (and the 
beneficiaries of such employees)); and 
‘‘(2) with respect to a pooled employer plan, the 
identifying information for the person designated 
under the terms of the plan as the pooled plan pro-
vider.’’. 
(2) SIMPLIFIED
ANNUAL
REPORTS.—Section 
104(a) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1024(a)) is amended by strik-
ing paragraph (2)(A) and inserting the following: 
‘‘(2)(A) With respect to annual reports required to be 
filed with the Secretary under this part, the Secretary may 
by regulation prescribe simplified annual reports for any 
pension plan that— 
‘‘(i) covers fewer than 100 participants; or 
‘‘(ii) is a plan described in section 210(a) that 
covers fewer than 1,000 participants, but only if no 
single employer in the plan has 100 or more partici-
pants covered by the plan.’’. 
(e) EFFECTIVE DATE.— 
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(1) IN
GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2020. 
(2) RULE OF CONSTRUCTION.—Nothing in the 
amendments made by subsection (a) shall be con-
strued 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 
a multiple employer plan. 
SEC. 102. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC 
ENROLLMENT SAFE HARBOR AFTER 1ST PLAN 
YEAR. 
(a) IN GENERAL.—Section 401(k)(13)(C)(iii) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘does 
not exceed 10 percent’’ and inserting ‘‘does not exceed 15 
percent (10 percent during the period described in subclause 
(I))’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2019. 
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SEC. 103. RULES RELATING TO ELECTION OF SAFE HARBOR 
401(k) STATUS. 
(a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE TO 
MATCHING CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
401(k)(12) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘if such arrangement’’ and all 
that follows and inserting ‘‘if such arrangement— 
‘‘(i) meets the contribution require-
ments of subparagraph (B) and the notice 
requirements of subparagraph (D), or 
‘‘(ii) meets the contribution require-
ments of subparagraph (C).’’. 
(2) 
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENTS.—Subparagraph (B) of section 401(k)(13) of 
such Code is amended by striking ‘‘means’’ and all 
that follows and inserting ‘‘means a cash or deferred 
arrangement— 
‘‘(i) which is described in subpara-
graph (D)(i)(I) and meets the applicable re-
quirements of subparagraphs (C) through 
(E), or 
‘‘(ii) which is described in subpara-
graph (D)(i)(II) and meets the applicable 
requirements of subparagraphs (C) and 
(D).’’. 
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(b) 
NONELECTIVE
CONTRIBUTIONS.—Section 
401(k)(12) of the Internal Revenue Code of 1986 is amended 
by redesignating subparagraph (F) as subparagraph (G), 
and by inserting after subparagraph (E) the following new 
subparagraph: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR EM-
PLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a plan may be amended after 
the beginning of a plan year to provide that 
the requirements of subparagraph (C) shall 
apply to the arrangement for the plan year, 
but only if the amendment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION
WHERE
PLAN
PRO-
VIDED
FOR
MATCHING
CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of subpara-
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graph (B) or paragraph (13)(D)(i)(I) ap-
plied to the plan year. 
‘‘(iii) 4-PERCENT
CONTRIBUTION
RE-
QUIREMENT.—Clause (i)(II) shall not apply 
to an arrangement unless the amount of the 
contributions described in subparagraph (C) 
which the employer is required to make 
under the arrangement for the plan year 
with respect to any employee is an amount 
equal to at least 4 percent of the employee’s 
compensation.’’. 
(c) AUTOMATIC
CONTRIBUTION
ARRANGEMENTS.— 
Section 401(k)(13) of the Internal Revenue Code of 1986 
is amended by adding at the end the following : 
‘‘(F) TIMING OF PLAN AMENDMENT FOR EM-
PLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a plan may be amended after 
the beginning of a plan year to provide that 
the requirements of subparagraph (D)(i)(II) 
shall apply to the arrangement for the plan 
year, but only if the amendment is adopt-
ed— 
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‘‘(I) at any time before the 30th 
day before the close of the plan year, or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION
WHERE
PLAN
PRO-
VIDED
FOR
MATCHING
CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of subpara-
graph (D)(i)(I) or paragraph (12)(B) ap-
plied to the plan year. 
‘‘(iii) 4-PERCENT
CONTRIBUTION
RE-
QUIREMENT.—Clause (i)(II) shall not apply 
to an arrangement unless the amount of the 
contributions described in subparagraph 
(D)(i)(II) which the employer is required to 
make under the arrangement for the plan 
year with respect to any employee is an 
amount equal to at least 4 percent of the 
employee’s compensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2019. 
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SEC. 104. INCREASE IN CREDIT LIMITATION FOR SMALL EM-
PLOYER PENSION PLAN STARTUP COSTS. 
(a) IN GENERAL.—Paragraph (1) of section 45E(b) of 
the Internal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(1) for the first credit year and each of the 2 
taxable years immediately following the first credit 
year, the greater of— 
‘‘(A) $500, or 
‘‘(B) the lesser of— 
‘‘(i) $250 for each employee of the eli-
gible employer who is not a highly com-
pensated employee (as defined in section 
414(q)) and who is eligible to participate in 
the eligible employer plan maintained by 
the eligible employer, or 
‘‘(ii) $5,000, and’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 105. SMALL EMPLOYER AUTOMATIC ENROLLMENT 
CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of subchapter 
A of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section: 
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‘‘SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT 
SAVINGS OPTIONS PROVIDED BY SMALL EM-
PLOYERS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in the 
case of an eligible employer, the retirement auto-enrollment 
credit determined under this section for any taxable year 
is an amount equal to— 
‘‘(1) $500 for any taxable year occurring during 
the credit period, and 
‘‘(2) zero for any other taxable year. 
‘‘(b) CREDIT PERIOD.—For purposes of subsection 
(a)— 
‘‘(1) IN GENERAL.—The credit period with re-
spect to any eligible employer is the 3-taxable-year 
period beginning with the first taxable year for which 
the employer includes an eligible automatic contribu-
tion arrangement (as defined in section 414(w)(3)) in 
a qualified employer plan (as defined in section 
4972(d)) sponsored by the employer. 
‘‘(2) MAINTENANCE OF ARRANGEMENT.—No tax-
able year with respect to an employer shall be treated 
as occurring within the credit period unless the ar-
rangement described in paragraph (1) is included in 
the plan for such year. 
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‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this sec-
tion, the term ‘eligible employer’ has the meaning given 
such term in section 408(p)(2)(C)(i).’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘plus’’ at the 
end of paragraph (31), by striking the period at the end 
of paragraph (32) and inserting ‘‘, plus’’, and by adding 
at the end the following new paragraph: 
‘‘(33) in the case of an eligible employer (as de-
fined in section 45T(c)), the retirement auto-enroll-
ment credit determined under section 45T(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
subpart D of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting 
after the item relating to section 45S the following new 
item: 
‘‘Sec. 45T. Auto-enrollment option for retirement savings options provided by 
small employers.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
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SEC. 106. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 
AND STIPEND PAYMENTS TREATED AS COM-
PENSATION FOR IRA PURPOSES. 
(a) IN GENERAL.—Paragraph (1) of section 219(f) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: ‘‘The term ‘compensation’ shall in-
clude any amount which is included in the individual’s 
gross income and paid to the individual to aid the indi-
vidual in the pursuit of graduate or postdoctoral study.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 107. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
CONTRIBUTIONS. 
(a) IN GENERAL.—Paragraph (1) of section 219(d) of 
the Internal Revenue Code of 1986 is repealed. 
(b) CONFORMING AMENDMENT.—Subsection (c) of sec-
tion 408A of the Internal Revenue Code of 1986 is amended 
by striking paragraph (4) and by redesignating paragraphs 
(5), (6), and (7) as paragraphs (4), (5), and (6), respec-
tively. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contributions made for taxable years 
beginning after December 31, 2019. 
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SEC. 108. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 
MAKING LOANS THROUGH CREDIT CARDS 
AND OTHER SIMILAR ARRANGEMENTS. 
(a) IN GENERAL.—Paragraph (2) of section 72(p) of 
the Internal Revenue Code of 1986 is amended by redesig-
nating subparagraph (D) as subparagraph (E) and by in-
serting after subparagraph (C) the following new subpara-
graph: 
‘‘(D) PROHIBITION
OF
LOANS
THROUGH 
CREDIT CARDS AND OTHER SIMILAR ARRANGE-
MENTS.—Subparagraph (A) shall not apply to 
any loan which is made through the use of any 
credit card or any other similar arrangement.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to loans made after the date of the 
enactment of this Act. 
SEC. 109. PORTABILITY OF LIFETIME INCOME OPTIONS. 
(a) IN GENERAL.—Subsection (a) of section 401 of the 
Internal Revenue Code of 1986 is amended by inserting 
after paragraph (37) the following new paragraph: 
‘‘(38) PORTABILITY OF LIFETIME INCOME.— 
‘‘(A) IN GENERAL.—Except as may be oth-
erwise provided by regulations, a trust forming 
part of a defined contribution plan shall not be 
treated as failing to constitute a qualified trust 
under this section solely by reason of allowing— 
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‘‘(i) qualified distributions of a life-
time income investment, or 
‘‘(ii) distributions of a lifetime income 
investment in the form of a qualified plan 
distribution annuity contract, 
on or after the date that is 90 days prior to the 
date on which such lifetime income investment is 
no longer authorized to be held as an investment 
option under the plan. 
‘‘(B) DEFINITIONS.—For purposes of this 
subsection— 
‘‘(i) the term ‘qualified distribution’ 
means a direct trustee-to-trustee transfer de-
scribed in paragraph (31)(A) to an eligible 
retirement plan (as defined in section 
402(c)(8)(B)), 
‘‘(ii) the term ‘lifetime income invest-
ment’ means an investment option which is 
designed to provide an employee with elec-
tion rights— 
‘‘(I) which are not uniformly 
available with respect to other invest-
ment options under the plan, and 
‘‘(II) which are to a lifetime in-
come feature available through a con-
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tract or other arrangement offered 
under the plan (or under another eligi-
ble retirement plan (as so defined), if 
paid by means of a direct trustee-to- 
trustee transfer described in paragraph 
(31)(A) to such other eligible retire-
ment plan), 
‘‘(iii) the term ‘lifetime income feature’ 
means— 
‘‘(I) a feature which guarantees a 
minimum level of income annually (or 
more frequently) for at least the re-
mainder of the life of the employee or 
the joint lives of the employee and the 
employee’s designated beneficiary, or 
‘‘(II) an annuity payable on be-
half of the employee under which pay-
ments are made in substantially equal 
periodic payments (not less frequently 
than annually) over the life of the em-
ployee or the joint lives of the employee 
and the employee’s designated bene-
ficiary, and 
‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
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contract purchased for a participant and 
distributed to the participant by a plan or 
contract described in subparagraph (B) of 
section 402(c)(8) (without regard to clauses 
(i) and (ii) thereof).’’. 
(b) CASH OR DEFERRED ARRANGEMENT.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
401(k)(2)(B) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of subclause 
(IV), by striking ‘‘and’’ at the end of subclause (V) 
and inserting ‘‘or’’, and by adding at the end the fol-
lowing new subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect to 
amounts invested in a lifetime income 
investment (as defined in subsection 
(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the arrangement, and’’. 
(2) 
DISTRIBUTION
REQUIREMENT.—Subpara-
graph (B) of section 401(k)(2) of such Code, as 
amended by paragraph (1), is amended by striking 
‘‘and’’ at the end of clause (i), by striking the semi-
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colon at the end of clause (ii) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(iii) except as may be otherwise pro-
vided by regulations, in the case of amounts 
described in clause (i)(VI), will be distrib-
uted only in the form of a qualified dis-
tribution 
(as 
defined 
in 
subsection 
(a)(38)(B)(i)) or a qualified plan distribu-
tion annuity contract (as defined in sub-
section (a)(38)(B)(iv)),’’. 
(c) SECTION 403(b) PLANS.— 
(1) ANNUITY
CONTRACTS.—Paragraph (11) of 
section 403(b) of the Internal Revenue Code of 1986 
is amended by striking ‘‘or’’ at the end of subpara-
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, or’’, and by inserting 
after subparagraph (C) the following new subpara-
graph: 
‘‘(D) except as may be otherwise provided 
by regulations, with respect to amounts invested 
in a lifetime income investment (as defined in 
section 401(a)(38)(B)(ii))— 
‘‘(i) on or after the date that is 90 
days prior to the date that such lifetime in-
come investment may no longer be held as 
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an investment option under the contract, 
and 
‘‘(ii) in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(2) CUSTODIAL ACCOUNTS.—Subparagraph (A) 
of section 403(b)(7) of such Code is amended by strik-
ing ‘‘if—’’ and all that follows and inserting ‘‘if the 
amounts are to be invested in regulated investment 
company stock to be held in that custodial account, 
and under the custodial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
such amount is a distribution to which sec-
tion 72(t)(2)(G) applies) before— 
‘‘(I) the employee dies, 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment, 
‘‘(IV) the employee becomes dis-
abled (within the meaning of section 
72(m)(7)), 
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‘‘(V) in the case of contributions 
made pursuant to a salary reduction 
agreement (within the meaning of sec-
tion 3121(a)(5)(D)), the employee en-
counters financial hardship, or 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect to 
amounts invested in a lifetime income 
investment (as defined in section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the contract, and 
‘‘(ii) in the case of amounts described 
in clause (i)(VI), such amounts will be dis-
tributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
457(d)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of clause (ii), by 
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inserting ‘‘or’’ at the end of clause (iii), and by add-
ing after clause (iii) the following: 
‘‘(iv) except as may be otherwise pro-
vided by regulations, in the case of a plan 
maintained by an employer described in 
subsection 
(e)(1)(A), 
with 
respect 
to 
amounts invested in a lifetime income in-
vestment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 days 
prior to the date that such lifetime income 
investment may no longer be held as an in-
vestment option under the plan,’’. 
(2) DISTRIBUTION
REQUIREMENT.—Paragraph 
(1) of section 457(d) of such Code is amended by 
striking ‘‘and’’ at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) 
and inserting ‘‘, and’’, and by inserting after sub-
paragraph (C) the following new subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, in the case of amounts described 
in subparagraph (A)(iv), such amounts will be 
distributed only in the form of a qualified dis-
tribution (as defined in section 401(a)(38)(B)(i)) 
or a qualified plan distribution annuity contract 
(as defined in section 401(a)(38)(B)(iv)).’’. 
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(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2019. 
SEC. 110. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
Not later than six months after the date of enactment 
of this Act, the Secretary of the Treasury shall issue guid-
ance to provide that, if an employer terminates the plan 
under which amounts are contributed to a custodial account 
under subparagraph (A) of section 403(b)(7), the plan ad-
ministrator or custodian may distribute an individual cus-
todial account in kind to a participant or beneficiary of 
the plan and the distributed custodial account shall be 
maintained by the custodian on a tax-deferred basis as a 
section 403(b)(7) custodial account, similar to the treatment 
of fully-paid individual annuity contracts under Revenue 
Ruling 2011–7, until amounts are actually paid to the par-
ticipant or beneficiary. The guidance shall provide further 
(i) that the section 403(b)(7) status of the distributed custo-
dial account is generally maintained if the custodial ac-
count thereafter adheres to the requirements of section 
403(b) that are in effect at the time of the distribution of 
the account and (ii) that a custodial account would not be 
considered distributed to the participant or beneficiary if 
the employer has any material retained rights under the 
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account (but the employer would not be treated as retaining 
material rights simply because the custodial account was 
originally opened under a group contract). Such guidance 
shall be retroactively effective for taxable years beginning 
after December 31, 2008. 
SEC. 111. CLARIFICATION OF RETIREMENT INCOME AC-
COUNT RULES RELATING TO CHURCH-CON-
TROLLED ORGANIZATIONS. 
(a) IN
GENERAL.—Subparagraph (B) of section 
403(b)(9) of the Internal Revenue Code of 1986 is amended 
by inserting ‘‘(including an employee described in section 
414(e)(3)(B))’’ after ‘‘employee described in paragraph 
(1)’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to years beginning before, on, or after 
the date of the enactment of this Act. 
SEC. 112. QUALIFIED CASH OR DEFERRED ARRANGEMENTS 
MUST ALLOW LONG-TERM EMPLOYEES WORK-
ING MORE THAN 500 BUT LESS THAN 1,000 
HOURS PER YEAR TO PARTICIPATE. 
(a) PARTICIPATION REQUIREMENT.— 
(1) IN GENERAL.—Section 401(k)(2)(D) of the 
Internal Revenue Code of 1986 is amended to read as 
follows: 
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‘‘(D) which does not require, as a condition 
of participation in the arrangement, that an em-
ployee complete a period of service with the em-
ployer (or employers) maintaining the plan ex-
tending beyond the close of the earlier of— 
‘‘(i) the period permitted under section 
410(a)(1) (determined without regard to 
subparagraph (B)(i) thereof), or 
‘‘(ii) subject to the provisions of para-
graph (15), the first period of 3 consecutive 
12-month periods during each of which the 
employee has at least 500 hours of service.’’. 
(2) SPECIAL
RULES.—Section 401(k) of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(15) SPECIAL RULES FOR PARTICIPATION RE-
QUIREMENT FOR LONG-TERM, PART-TIME WORKERS.— 
For purposes of paragraph (2)(D)(ii)— 
‘‘(A) AGE REQUIREMENT MUST BE MET.— 
Paragraph (2)(D)(ii) shall not apply to an em-
ployee unless the employee has met the require-
ment of section 410(a)(1)(A)(i) by the close of the 
last of the 12-month periods described in such 
paragraph. 
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‘‘(B) NONDISCRIMINATION AND TOP-HEAVY 
RULES NOT TO APPLY.— 
‘‘(i) NONDISCRIMINATION
RULES.—In 
the case of employees who are eligible to 
participate in the arrangement solely by 
reason of paragraph (2)(D)(ii)— 
‘‘(I) notwithstanding subsection 
(a)(4), an employer shall not be re-
quired to make nonelective or matching 
contributions on behalf of such employ-
ees even if such contributions are made 
on behalf of other employees eligible to 
participate in the arrangement, and 
‘‘(II) an employer may elect to ex-
clude such employees from the applica-
tion of subsection (a)(4), paragraphs 
(3), (12), and (13), subsection (m)(2), 
and section 410(b). 
‘‘(ii) TOP-HEAVY
RULES.—An em-
ployer may elect to exclude all employees 
who are eligible to participate in a plan 
maintained by the employer solely by rea-
son of paragraph (2)(D)(ii) from the appli-
cation of the vesting and benefit require-
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ments under subsections (b) and (c) of sec-
tion 416. 
‘‘(iii) VESTING.—For purposes of de-
termining whether an employee described in 
clause (i) has a nonforfeitable right to em-
ployer contributions (other than contribu-
tions described in paragraph (3)(D)(i)) 
under the arrangement, each 12-month pe-
riod for which the employee has at least 500 
hours of service shall be treated as a year of 
service. 
‘‘(iv) EMPLOYEES WHO BECOME FULL- 
TIME
EMPLOYEES.—This 
subparagraph 
shall cease to apply to any employee as of 
the first plan year beginning after the plan 
year in which the employee meets the re-
quirements of section 410(a)(1)(A)(ii) with-
out regard to paragraph (2)(D)(ii). 
‘‘(C) EXCEPTION
FOR
EMPLOYEES
UNDER 
COLLECTIVELY BARGAINED PLANS, ETC.—Para-
graph (2)(D)(ii) shall not apply to employees de-
scribed in section 410(b)(3). 
‘‘(D) SPECIAL RULES.— 
‘‘(i) TIME
OF
PARTICIPATION.—The 
rules of section 410(a)(4) shall apply to an 
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employee eligible to participate in an ar-
rangement solely by reason of paragraph 
(2)(D)(ii). 
‘‘(ii) 12-MONTH
PERIODS.—12-month 
periods shall be determined in the same 
manner as under the last sentence of section 
410(a)(3)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 
2020, 
except 
that, 
for 
purposes 
of 
section 
401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 (as 
added by such amendments), 12-month periods beginning 
before January 1, 2021, shall not be taken into account. 
SEC. 113. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
BIRTH OF CHILD OR ADOPTION. 
(a) IN GENERAL.—Section 72(t)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(H) DISTRIBUTIONS
FROM
RETIREMENT 
PLANS IN CASE OF BIRTH OF CHILD OR ADOP-
TION.— 
‘‘(i) IN GENERAL.—Any qualified birth 
or adoption distribution. 
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‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as qualified 
birth or adoption distributions by any indi-
vidual with respect to any birth or adoption 
shall not exceed $5,000. 
‘‘(iii) QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION.—For purposes of this sub-
paragraph— 
‘‘(I) 
IN
GENERAL.—The 
term 
‘qualified birth or adoption distribu-
tion’ means any distribution from an 
applicable eligible retirement plan to 
an individual if made during the 1- 
year period beginning on the date on 
which a child of the individual is born 
or on which the legal adoption by the 
individual of an eligible adoptee is fi-
nalized. 
‘‘(II) ELIGIBLE
ADOPTEE.—The 
term ‘eligible adoptee’ means any indi-
vidual (other than a child of the tax-
payer’s spouse) who has not attained 
age 18 or is physically or mentally in-
capable of self-support. 
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‘‘(iv) TREATMENT OF PLAN DISTRIBU-
TIONS.— 
‘‘(I) IN GENERAL.—If a distribu-
tion to an individual would (without 
regard to clause (ii)) be a qualified 
birth or adoption distribution, a plan 
shall not be treated as failing to meet 
any requirement of this title merely be-
cause the plan treats the distribution 
as a qualified birth or adoption dis-
tribution, 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 indi-
vidual exceeds $5,000. 
‘‘(II) CONTROLLED
GROUP.—For 
purposes of subclause (I), the term 
‘controlled group’ means any group 
treated as a single employer under sub-
section (b), (c), (m), or (o) of section 
414. 
‘‘(v) AMOUNT
DISTRIBUTED
MAY
BE 
REPAID.— 
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‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a qualified birth or 
adoption distribution may make one or 
more contributions in an aggregate 
amount not to exceed the amount of 
such distribution to an applicable eli-
gible retirement plan of which such in-
dividual is a beneficiary and to which 
a rollover contribution of such dis-
tribution 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 CONTRIBU-
TIONS
TO
APPLICABLE
ELIGIBLE
RE-
TIREMENT PLANS OTHER THAN IRAS.— 
The aggregate amount of contributions 
made by an individual under sub-
clause (I) to any applicable eligible re-
tirement plan which is not an indi-
vidual retirement plan shall not exceed 
the aggregate amount of qualified birth 
or adoption distributions which are 
made from such plan to such indi-
vidual. Subclause (I) shall not apply 
to contributions to any applicable eli-
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gible retirement plan which is not an 
individual retirement plan unless the 
individual is eligible to make contribu-
tions (other than those described in 
subclause (I)) to such applicable eligi-
ble retirement plan. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS
OF
DISTRIBUTIONS
FROM
AP-
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAs.—If a con-
tribution is made under subclause (I) 
with respect to a qualified birth or 
adoption distribution from an applica-
ble 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 de-
fined in section 402(c)(4)) and as hav-
ing transferred the amount to the ap-
plicable eligible retirement plan in a 
direct trustee to trustee transfer within 
60 days of the distribution. 
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‘‘(IV) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—If a contribution is made under 
subclause (I) with respect to a quali-
fied birth or adoption distribution 
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 re-
tirement plan in a direct trustee to 
trustee transfer within 60 days of the 
distribution. 
‘‘(vi) 
DEFINITION
AND
SPECIAL 
RULES.—For purposes of this subpara-
graph— 
‘‘(I) APPLICABLE
ELIGIBLE
RE-
TIREMENT PLAN.—The term ‘applica-
ble eligible retirement plan’ means an 
eligible retirement plan (as defined in 
section 402(c)(8)(B)) other than a de-
fined benefit plan. 
‘‘(II) EXEMPTION
OF
DISTRIBU-
TIONS
FROM
TRUSTEE
TO
TRUSTEE 
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TRANSFER
AND
WITHHOLDING 
RULES.—For 
purposes 
of 
sections 
401(a)(31), 402(f), and 3405, a quali-
fied birth or adoption distribution 
shall not be treated as an eligible roll-
over distribution. 
‘‘(III) TAXPAYER MUST INCLUDE 
TIN.—A distribution shall not be treat-
ed as a qualified birth or adoption dis-
tribution with respect to any child or 
eligible adoptee unless the taxpayer in-
cludes the name, age, and TIN of such 
child or eligible adoptee on the tax-
payer’s return of tax for the taxable 
year. 
‘‘(IV) DISTRIBUTIONS
TREATED 
AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—Any qualified birth or 
adoption distribution shall be treated 
as meeting the requirements of sections 
401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 
403(b)(11), and 457(d)(1)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after December 31, 
2019. 
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SEC. 114. INCREASE IN AGE FOR REQUIRED BEGINNING 
DATE FOR MANDATORY DISTRIBUTIONS. 
(a) IN GENERAL.—Section 401(a)(9)(C)(i)(I) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘age 
701⁄2’’ and inserting ‘‘age 72’’. 
(b) SPOUSE BENEFICIARIES; SPECIAL RULE
FOR 
OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec-
tion 401(a)(9) of such Code are each amended by striking 
‘‘age 701⁄2’’ and inserting ‘‘age 72’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The last sentence of section 408(b) of such 
Code is amended by striking ‘‘age 701⁄2’’ and insert-
ing ‘‘age 72’’. 
(2) Section 457(d)(1)(A)(i) of such Code is 
amended by striking ‘‘age 701⁄2’’ and inserting ‘‘age 
72’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions required to be made 
after December 31, 2019, with respect to individuals who 
attain age 701⁄2 after such date. 
SEC. 115. SPECIAL RULES FOR MINIMUM FUNDING STAND-
ARDS FOR COMMUNITY NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Section 430 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
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‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after De-
cember 31, 2017, may elect to have the alternative 
standards described in paragraph (3) apply to such 
plan, and any plan sponsored by any member of the 
same controlled group. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary. Such election, once 
made with respect to a plan year, shall apply to all 
subsequent plan years unless revoked with the consent 
of the Secretary. 
‘‘(3) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third 
segment rates in effect for any month for 
purposes of this section shall be 8 percent. 
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‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the U.S. Treasury obligation 
yield curve for the day that is the valuation 
date of such plan for such plan year. 
‘‘(iii) U.S. 
TREASURY
OBLIGATION 
YIELD CURVE.—For purposes of this sub-
section, the term ‘U.S. Treasury obligation 
yield curve’ means, with respect to any day, 
a yield curve which shall be prescribed by 
the Secretary for such day on interest-bear-
ing obligations of the United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
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stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply. 
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‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained by an employer which, 
as of December 31, 2017— 
‘‘(i) publishes and distributes daily, ei-
ther electronically or in printed form, 1 or 
more community newspapers in a single 
State, 
‘‘(ii) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, 
‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons residing 
primarily in the State in which the 
community newspaper is published, 
‘‘(II) for not less than 30 years by 
individuals who are members of the 
same family, 
‘‘(III) by a trust created or orga-
nized in the State in which the com-
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munity newspaper is published, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), 
‘‘(IV) by an entity which is de-
scribed in section 501(c)(3) and exempt 
from taxation under section 501(a), 
which is organized and operated in the 
State in which the community news-
paper is published, and the primary 
purpose of which is to benefit commu-
nities in such State, or 
‘‘(V) by a combination of persons 
described in subclause (I), (III), or 
(IV), and 
‘‘(iv) does not control, directly or indi-
rectly, any newspaper in any other State. 
‘‘(B) COMMUNITY
NEWSPAPER.—The term 
‘community newspaper’ means a newspaper 
which primarily serves a metropolitan statistical 
area, as determined by the Office of Management 
and Budget, with a population of not less than 
100,000. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
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direct or cause the direction and management of 
such person (including the power to elect a ma-
jority of the members of the board of directors of 
such person) through the ownership of voting se-
curities. 
‘‘(5) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 as of the date of 
the enactment of this subsection.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Section 303 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1083) is 
amended by adding at the end the following new subsection: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after De-
cember 31, 2017, may elect to have the alternative 
standards described in paragraph (3) apply to such 
plan, and any plan sponsored by any member of the 
same controlled group. 
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‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary of the Treasury. Such 
election, once made with respect to a plan year, shall 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury. 
‘‘(3) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third 
segment rates in effect for any month for 
purposes of this section shall be 8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the U.S. Treasury obligation 
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yield curve for the day that is the valuation 
date of such plan for such plan year. 
‘‘(iii) U.S. 
TREASURY
OBLIGATION 
YIELD CURVE.—For purposes of this sub-
section, the term ‘U.S. Treasury obligation 
yield curve’ means, with respect to any day, 
a yield curve which shall be prescribed by 
the Secretary of the Treasury for such day 
on interest-bearing obligations of the United 
States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
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fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained by an employer which, 
as of December 31, 2017— 
‘‘(i) publishes and distributes daily, ei-
ther electronically or in printed form— 
‘‘(I) a community newspaper, or 
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‘‘(II) 1 or more community news-
papers in the same State, 
‘‘(ii) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, 
‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons residing 
primarily in the State in which the 
community newspaper is published, 
‘‘(II) for not less than 30 years by 
individuals who are members of the 
same family, 
‘‘(III) by a trust created or orga-
nized in the State in which the com-
munity newspaper is published, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), 
‘‘(IV) by an entity which is de-
scribed in section 501(c)(3) of the In-
ternal Revenue Code of 1986 and ex-
empt from taxation under section 
501(a) of such Code, which is orga-
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nized and operated in the State in 
which the community newspaper is 
published, and the primary purpose of 
which is to benefit communities in 
such State, or 
‘‘(V) by a combination of persons 
described in subclause (I), (III), or 
(IV), and 
‘‘(iv) does not control, directly or indi-
rectly, any newspaper in any other State. 
‘‘(B) COMMUNITY
NEWSPAPER.—The term 
‘community newspaper’ means a newspaper 
which primarily serves a metropolitan statistical 
area, as determined by the Office of Management 
and Budget, with a population of not less than 
100,000. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
direct or cause the direction and management of 
such person (including the power to elect a ma-
jority of the members of the board of directors of 
such person) through the ownership of voting se-
curities. 
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‘‘(5) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 of the Internal Rev-
enue Code of 1986 as of the date of the enactment of 
this subsection. 
‘‘(6) EFFECT
ON
PREMIUM
RATE
CALCULA-
TION.—Notwithstanding any other provision of law 
or any regulation issued by the Pension Benefit 
Guaranty Corporation, in the case of a community 
newspaper plan which elects the application of the al-
ternative standards described in paragraph (3), the 
additional premium under section 4006(a)(3)(E) 
shall be determined as if such election had not been 
made.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years ending after December 31, 
2017. 
SEC. 116. TREATING EXCLUDED DIFFICULTY OF CARE PAY-
MENTS 
AS 
COMPENSATION 
FOR 
DETER-
MINING RETIREMENT CONTRIBUTION LIMI-
TATIONS. 
(a) INDIVIDUAL RETIREMENT ACCOUNTS.— 
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(1) IN GENERAL.—Section 408(o) of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(5) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS EXCLUDED FROM GROSS INCOME.—In the 
case of an individual who for a taxable year excludes 
from gross income under section 131 a qualified foster 
care payment which is a difficulty of care payment, 
if— 
‘‘(A) the deductible amount in effect for the 
taxable year under subsection (b), exceeds 
‘‘(B) the amount of compensation includible 
in the individual’s gross income for the taxable 
year, 
the individual may elect to increase the nondeductible 
limit under paragraph (2) for the taxable year by an 
amount equal to the lesser of such excess or the 
amount so excluded.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to contributions after 
the date of the enactment of this Act. 
(b) DEFINED CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Section 415(c) of such Code is 
amended by adding at the end the following new 
paragraph: 
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‘‘(8) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS EXCLUDED FROM GROSS INCOME.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(B), in the case of an individual who 
for a taxable year excludes from gross income 
under section 131 a qualified foster care pay-
ment which is a difficulty of care payment, the 
participant’s compensation, or earned income, as 
the case may be, shall be increased by the 
amount so excluded. 
‘‘(B) CONTRIBUTIONS ALLOCABLE TO DIF-
FICULTY
OF
CARE
PAYMENTS
TREATED
AS 
AFTER-TAX.—Any contribution by the partici-
pant which is allowable due to such increase— 
‘‘(i) shall be treated for purposes of this 
title as investment in the contract, and 
‘‘(ii) shall not cause a plan (and any 
arrangement which is part of such plan) to 
be treated as failing to meet any require-
ments of this chapter solely by reason of al-
lowing any such contributions.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to plan years beginning 
after December 31, 2015. 
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TITLE II—ADMINISTRATIVE 
IMPROVEMENTS 
SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 
MAY BE TREATED AS IN EFFECT AS OF CLOSE 
OF YEAR. 
(a) IN GENERAL.—Subsection (b) of section 401 of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘RETROACTIVE CHANGES
IN 
PLAN.—A stock bonus’’ and inserting ‘‘PLAN AMEND-
MENTS.— 
‘‘(1) 
CERTAIN
RETROACTIVE
CHANGES
IN 
PLAN.—A stock bonus’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) ADOPTION OF PLAN.—If an employer adopts 
a stock bonus, pension, profit-sharing, or annuity 
plan after the close of a taxable year but before the 
time prescribed by law for filing the return of the em-
ployer for the taxable year (including extensions 
thereof), the employer may elect to treat the plan as 
having been adopted as of the last day of the taxable 
year.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plans adopted for taxable years begin-
ning after December 31, 2019. 
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SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF 
PLANS. 
(a) IN GENERAL.—The Secretary of the Treasury and 
the Secretary of Labor shall, in cooperation, modify the re-
turns required under section 6058 of the Internal Revenue 
Code of 1986 and the reports required by section 104 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1024) so that all members of a group of plans de-
scribed in subsection (c) may file a single aggregated an-
nual return or report satisfying the requirements of both 
such sections. 
(b) ADMINISTRATIVE REQUIREMENTS.—In developing 
the consolidated return or report under subsection (a), the 
Secretary of the Treasury and the Secretary of Labor may 
require such return or report to include any information 
regarding each plan in the group as such Secretaries deter-
mine is necessary or appropriate for the enforcement and 
administration of the Internal Revenue Code of 1986 and 
the Employee Retirement Income Security Act of 1974. 
(c) PLANS DESCRIBED.—A group of plans is described 
in this subsection if all plans in the group— 
(1) are individual account plans or defined con-
tribution plans (as defined in section 3(34) of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(34)) or in section 414(i) of the Inter-
nal Revenue Code of 1986); 
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(2) have— 
(A) the same trustee (as described in section 
403(a) of such Act (29 U.S.C. 1103(a))); 
(B) the same one or more named fiduciaries 
(as described in section 402(a) of such Act (29 
U.S.C. 1102(a))); 
(C) the same administrator (as defined in 
section 3(16)(A) of such Act (29 U.S.C. 
1002(16)(A))) and plan administrator (as de-
fined in section 414(g) of the Internal Revenue 
Code of 1986); and 
(D) plan years beginning on the same date; 
and 
(3) provide the same investments or investment 
options to participants and beneficiaries. 
A plan not subject to title I of the Employee Retirement 
Income Security Act of 1974 shall be treated as meeting 
the requirements of paragraph (2) as part of a group of 
plans if the same person that performs each of the functions 
described in such paragraph, as applicable, for all other 
plans in such group performs each of such functions for such 
plan. 
(d) CLARIFICATION RELATING TO ELECTRONIC FILING 
OF RETURNS FOR DEFERRED COMPENSATION PLANS.— 
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(1) IN GENERAL.—Section 6011(e) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(6) APPLICATION OF NUMERICAL LIMITATION TO 
RETURNS
RELATING
TO
DEFERRED
COMPENSATION 
PLANS.—For purposes of applying the numerical lim-
itation under paragraph (2)(A) to any return re-
quired under section 6058, information regarding 
each plan for which information is provided on such 
return shall be treated as a separate return.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
paragraph (1) shall apply to returns required to be 
filed with respect to plan years beginning after De-
cember 31, 2019. 
(e) EFFECTIVE DATE.—The modification required by 
subsection (a) shall be implemented not later than January 
1, 2022, and shall apply to returns and reports for plan 
years beginning after December 31, 2021. 
SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME. 
(a) IN
GENERAL.—Subparagraph (B) of section 
105(a)(2) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1025(a)(2)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking ‘‘diversification.’’ 
and inserting ‘‘diversification, and’’; and 
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(3) by inserting at the end the following: 
‘‘(iii) the lifetime income disclosure de-
scribed in subparagraph (D)(i). 
In the case of pension benefit statements de-
scribed in clause (i) of paragraph (1)(A), a life-
time income disclosure under clause (iii) of this 
subparagraph shall be required to be included in 
only one pension benefit statement during any 
one 12-month period.’’. 
(b) LIFETIME INCOME.—Paragraph (2) of section 
105(a) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1025(a)) is amended by adding at the end 
the following new subparagraph: 
‘‘(D) LIFETIME INCOME DISCLOSURE.— 
‘‘(i) IN GENERAL.— 
‘‘(I) DISCLOSURE.—A lifetime in-
come disclosure shall set forth the life-
time income stream equivalent of the 
total benefits accrued with respect to 
the participant or beneficiary. 
‘‘(II) LIFETIME INCOME STREAM 
EQUIVALENT OF THE TOTAL BENEFITS 
ACCRUED.—For purposes of this sub-
paragraph, the term ‘lifetime income 
stream equivalent of the total benefits 
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accrued’ means the amount of monthly 
payments the participant or bene-
ficiary would receive if the total ac-
crued benefits of such participant or 
beneficiary were used to provide life-
time income streams described in sub-
clause (III), based on assumptions 
specified in rules prescribed by the Sec-
retary. 
‘‘(III) 
LIFETIME
INCOME 
STREAMS.—The 
lifetime 
income 
streams described in this subclause are 
a qualified joint and survivor annuity 
(as defined in section 205(d)), based on 
assumptions specified in rules pre-
scribed by the Secretary, including the 
assumption that the participant or 
beneficiary has a spouse of equal age, 
and a single life annuity. Such lifetime 
income streams may have a term cer-
tain or other features to the extent per-
mitted under rules prescribed by the 
Secretary. 
‘‘(ii) MODEL DISCLOSURE.—Not later 
than 1 year after the date of the enactment 
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of the Setting Every Community Up for Re-
tirement Enhancement Act of 2019, the Sec-
retary shall issue a model lifetime income 
disclosure, written in a manner so as to be 
understood by the average plan participant, 
which— 
‘‘(I) explains that the lifetime in-
come stream equivalent is only pro-
vided as an illustration; 
‘‘(II) explains that the actual 
payments under the lifetime income 
stream described in clause (i)(III) 
which may be purchased with the total 
benefits accrued will depend on numer-
ous factors and may vary substantially 
from the lifetime income stream equiv-
alent in the disclosures; 
‘‘(III) explains the assumptions 
upon which the lifetime income stream 
equivalent was determined; and 
‘‘(IV) provides such other similar 
explanations as the Secretary considers 
appropriate. 
‘‘(iii) ASSUMPTIONS AND RULES.—Not 
later than 1 year after the date of the enact-
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ment of the Setting Every Community Up 
for Retirement Enhancement Act of 2019, 
the Secretary shall— 
‘‘(I) prescribe assumptions which 
administrators of individual account 
plans may use in converting total ac-
crued benefits into lifetime income 
stream equivalents for purposes of this 
subparagraph; and 
‘‘(II) issue interim final rules 
under clause (i). 
In prescribing assumptions under subclause 
(I), the Secretary may prescribe a single set 
of specific assumptions (in which case the 
Secretary may issue tables or factors which 
facilitate such conversions), or ranges of 
permissible assumptions. To the extent that 
an accrued benefit is or may be invested in 
a lifetime income stream described in clause 
(i)(III), the assumptions prescribed under 
subclause (I) shall, to the extent appro-
priate, permit administrators of individual 
account plans to use the amounts payable 
under such lifetime income stream as a life-
time income stream equivalent. 
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‘‘(iv) LIMITATION
ON
LIABILITY.—No 
plan fiduciary, plan sponsor, or other per-
son shall have any liability under this title 
solely by reason of the provision of lifetime 
income stream equivalents which are de-
rived in accordance with the assumptions 
and rules described in clause (iii) and 
which include the explanations contained in 
the model lifetime income disclosure de-
scribed in clause (ii). This clause shall 
apply without regard to whether the provi-
sion of such lifetime income stream equiva-
lent is required by subparagraph (B)(iii). 
‘‘(v) EFFECTIVE
DATE.—The require-
ment in subparagraph (B)(iii) shall apply 
to pension benefit statements furnished more 
than 12 months after the latest of the 
issuance by the Secretary of— 
‘‘(I) interim final rules under 
clause (i); 
‘‘(II) the model disclosure under 
clause (ii); or 
‘‘(III) 
the 
assumptions 
under 
clause (iii).’’. 
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SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 
LIFETIME INCOME PROVIDER. 
Section 404 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1104) is amended by adding 
at the end the following: 
‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 
‘‘(1) IN GENERAL.—With respect to the selection 
of an insurer for a guaranteed retirement income con-
tract, the requirements of subsection (a)(1)(B) will be 
deemed to be satisfied if a fiduciary— 
‘‘(A) engages in an objective, thorough, and 
analytical search for the purpose of identifying 
insurers from which to purchase such contracts; 
‘‘(B) with respect to each insurer identified 
under subparagraph (A)— 
‘‘(i) considers the financial capability 
of such insurer to satisfy its obligations 
under the guaranteed retirement income 
contract; and 
‘‘(ii) considers the cost (including fees 
and commissions) of the guaranteed retire-
ment income contract offered by the insurer 
in relation to the benefits and product fea-
tures of the contract and administrative 
services to be provided under such contract; 
and 
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‘‘(C) on the basis of such consideration, con-
cludes that— 
‘‘(i) at the time of the selection, the in-
surer is financially capable of satisfying its 
obligations under the guaranteed retirement 
income contract; and 
‘‘(ii) the relative cost of the selected 
guaranteed retirement income contract as 
described in subparagraph (B)(ii) is reason-
able. 
‘‘(2) FINANCIAL CAPABILITY OF THE INSURER.— 
A fiduciary will be deemed to satisfy the requirements 
of paragraphs (1)(B)(i) and (1)(C)(i) if— 
‘‘(A) the fiduciary obtains written represen-
tations from the insurer that— 
‘‘(i) the insurer is licensed to offer 
guaranteed retirement income contracts; 
‘‘(ii) the insurer, at the time of selec-
tion and for each of the immediately pre-
ceding 7 plan years— 
‘‘(I) operates under a certificate of 
authority from the insurance commis-
sioner of its domiciliary State which 
has not been revoked or suspended; 
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‘‘(II) has filed audited financial 
statements in accordance with the laws 
of its domiciliary State under applica-
ble statutory accounting principles; 
‘‘(III) maintains (and has main-
tained) reserves which satisfies all the 
statutory requirements of all States 
where the insurer does business; and 
‘‘(IV) is not operating under an 
order of supervision, rehabilitation, or 
liquidation; 
‘‘(iii) the insurer undergoes, at least 
every 5 years, a financial examination 
(within the meaning of the law of its domi-
ciliary State) by the insurance commis-
sioner of the domiciliary State (or rep-
resentative, designee, or other party ap-
proved by such commissioner); and 
‘‘(iv) the insurer will notify the fidu-
ciary of any change in circumstances occur-
ring after the provision of the representa-
tions in clauses (i), (ii), and (iii) which 
would preclude the insurer from making 
such representations at the time of issuance 
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of the guaranteed retirement income con-
tract; and 
‘‘(B) after receiving such representations 
and as of the time of selection, the fiduciary has 
not received any notice described in subpara-
graph (A)(iv) and is in possession of no other in-
formation which would cause the fiduciary to 
question the representations provided. 
‘‘(3) NO
REQUIREMENT
TO
SELECT
LOWEST 
COST.—Nothing in this subsection shall be construed 
to require a fiduciary to select the lowest cost con-
tract. A fiduciary may consider the value of a con-
tract, including features and benefits of the contract 
and attributes of the insurer (including, without limi-
tation, the insurer’s financial strength) in conjunc-
tion with the cost of the contract. 
‘‘(4) TIME OF SELECTION.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the time of selection is— 
‘‘(i) the time that the insurer and the 
contract are selected for distribution of ben-
efits to a specific participant or beneficiary; 
or 
‘‘(ii) if the fiduciary periodically re-
views the continuing appropriateness of the 
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conclusion described in paragraph (1)(C) 
with respect to a selected insurer, taking 
into account the considerations described in 
such paragraph, the time that the insurer 
and the contract are selected to provide ben-
efits at future dates to participants or bene-
ficiaries under the plan. 
Nothing in the preceding sentence shall be con-
strued to require the fiduciary to review the ap-
propriateness of a selection after the purchase of 
a contract for a participant or beneficiary. 
‘‘(B) PERIODIC REVIEW.—A fiduciary will 
be deemed to have conducted the periodic review 
described in subparagraph (A)(ii) if the fidu-
ciary obtains the written representations de-
scribed in clauses (i), (ii), and (iii) of paragraph 
(2)(A) from the insurer on an annual basis, un-
less the fiduciary receives any notice described in 
paragraph (2)(A)(iv) or otherwise becomes aware 
of facts that would cause the fiduciary to ques-
tion such representations. 
‘‘(5) LIMITED
LIABILITY.—A fiduciary which 
satisfies the requirements of this subsection shall not 
be liable following the distribution of any benefit, or 
the investment by or on behalf of a participant or 
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beneficiary pursuant to the selected guaranteed retire-
ment income contract, for any losses that may result 
to the participant or beneficiary due to an insurer’s 
inability to satisfy its financial obligations under the 
terms of such contract. 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) INSURER.—The term ‘insurer’ means 
an insurance company, insurance service, or in-
surance organization, including affiliates of such 
companies. 
‘‘(B) GUARANTEED
RETIREMENT
INCOME 
CONTRACT.—The term ‘guaranteed retirement in-
come contract’ means an annuity contract for a 
fixed term or a contract (or provision or feature 
thereof) which provides guaranteed benefits an-
nually (or more frequently) for at least the re-
mainder of the life of the participant or the joint 
lives of the participant and the participant’s 
designated beneficiary as part of an individual 
account plan.’’. 
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SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 of the Internal Revenue 
Code of 1986 is amended— 
(1) by redesignating subsection (o) as subsection 
(p); and 
(2) by inserting after subsection (n) the following 
new subsection: 
‘‘(o) SPECIAL RULES FOR APPLYING NONDISCRIMINA-
TION RULES TO PROTECT OLDER, LONGER SERVICE AND 
GRANDFATHERED PARTICIPANTS .— 
‘‘(1) TESTING OF DEFINED BENEFIT PLANS WITH 
CLOSED CLASSES OF PARTICIPANTS.— 
‘‘(A) BENEFITS, RIGHTS, OR
FEATURES 
PROVIDED TO CLOSED CLASSES.—A defined ben-
efit plan which provides benefits, rights, or fea-
tures to a closed class of participants shall not 
fail to satisfy the requirements of subsection 
(a)(4) by reason of the composition of such closed 
class or the benefits, rights, or features provided 
to such closed class, if— 
‘‘(i) for the plan year as of which the 
class closes and the 2 succeeding plan years, 
such benefits, rights, and features satisfy the 
requirements of subsection (a)(4) (without 
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regard to this subparagraph but taking into 
account the rules of subparagraph (I)), 
‘‘(ii) after the date as of which the 
class was closed, any plan amendment 
which modifies the closed class or the bene-
fits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iii) the class was closed before April 
5, 2017, or the plan is described in sub-
paragraph (C). 
‘‘(B) AGGREGATE TESTING WITH DEFINED 
CONTRIBUTION PLANS PERMITTED ON A BENE-
FITS BASIS.— 
‘‘(i) IN GENERAL.—For purposes of de-
termining compliance with subsection (a)(4) 
and section 410(b), a defined benefit plan 
described in clause (iii) may be aggregated 
and tested on a benefits basis with 1 or 
more defined contribution plans, including 
with the portion of 1 or more defined con-
tribution plans which— 
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‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contributions 
or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a tax 
credit employee stock ownership plan 
(within the meaning of section 409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—For purposes of clause 
(i), if a defined benefit plan is aggregated 
with a portion of a defined contribution 
plan providing matching contributions— 
‘‘(I) such defined benefit plan 
must also be aggregated with any por-
tion of such defined contribution plan 
which provides elective deferrals de-
scribed in subparagraph (A) or (C) of 
section 402(g)(3), and 
‘‘(II) such matching contributions 
shall be treated in the same manner as 
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nonelective contributions, including for 
purposes of applying the rules of sub-
section (l). 
‘‘(iii) PLANS
DESCRIBED.—A defined 
benefit plan is described in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
‘‘(II) for the plan year as of which 
the class closes and the 2 succeeding 
plan years, the plan satisfies the re-
quirements of section 410(b) and sub-
section (a)(4) (without regard to this 
subparagraph but taking into account 
the rules of subparagraph (I)), 
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ment which modifies the closed class or 
the benefits provided to such closed 
class does not discriminate signifi-
cantly in favor of highly compensated 
employees, and 
‘‘(IV) the class was closed before 
April 5, 2017, or the plan is described 
in subparagraph (C). 
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‘‘(C) PLANS
DESCRIBED.—A plan is de-
scribed in this subparagraph if, taking into ac-
count any predecessor plan— 
‘‘(i) such plan has been in effect for at 
least 5 years as of the date the class is 
closed, and 
‘‘(ii) during the 5-year period pre-
ceding the date the class is closed, there has 
not been a substantial increase in the cov-
erage or value of the benefits, rights, or fea-
tures described in subparagraph (A) or in 
the coverage or benefits under the plan de-
scribed in subparagraph (B)(iii) (whichever 
is applicable). 
‘‘(D) DETERMINATION OF SUBSTANTIAL IN-
CREASE
FOR
BENEFITS, 
RIGHTS, 
AND
FEA-
TURES.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (A)(iii), a plan shall 
be treated as having had a substantial increase 
in coverage or value of the benefits, rights, or fea-
tures described in subparagraph (A) during the 
applicable 5-year period only if, during such pe-
riod— 
‘‘(i) the number of participants covered 
by such benefits, rights, or features on the 
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date such period ends is more than 50 per-
cent greater than the number of such par-
ticipants on the first day of the plan year 
in which such period began, or 
‘‘(ii) such benefits, rights, and features 
have been modified by 1 or more plan 
amendments in such a way that, as of the 
date the class is closed, the value of such 
benefits, rights, and features to the closed 
class as a whole is substantially greater 
than the value as of the first day of such 5- 
year period, solely as a result of such 
amendments. 
‘‘(E) DETERMINATION OF SUBSTANTIAL IN-
CREASE FOR AGGREGATE TESTING ON BENEFITS 
BASIS.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (B)(iii)(IV), a plan 
shall be treated as having had a substantial in-
crease in coverage or benefits during the applica-
ble 5-year period only if, during such period— 
‘‘(i) the number of participants benefit-
ting under the plan on the date such period 
ends is more than 50 percent greater than 
the number of such participants on the first 
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day of the plan year in which such period 
began, or 
‘‘(ii) the average benefit provided to 
such participants on the date such period 
ends is more than 50 percent greater than 
the average benefit provided on the first day 
of the plan year in which such period 
began. 
‘‘(F) 
CERTAIN
EMPLOYEES
DIS-
REGARDED.—For purposes of subparagraphs (D) 
and (E), any increase in coverage or value or in 
coverage or benefits, whichever is applicable, 
which is attributable to such coverage and value 
or coverage and benefits provided to employees— 
‘‘(i) who became participants as a re-
sult of a merger, acquisition, or similar 
event which occurred during the 7-year pe-
riod preceding the date the class is closed, or 
‘‘(ii) who became participants by rea-
son of a merger of the plan with another 
plan which had been in effect for at least 5 
years as of the date of the merger, 
shall be disregarded, except that clause (ii) shall 
apply for purposes of subparagraph (D) only if, 
under the merger, the benefits, rights, or features 
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under 1 plan are conformed to the benefits, 
rights, or features of the other plan prospectively. 
‘‘(G) RULES RELATING TO AVERAGE BEN-
EFIT.—For purposes of subparagraph (E)— 
‘‘(i) the average benefit provided to 
participants under the plan will be treated 
as having remained the same between the 2 
dates described in subparagraph (E)(ii) if 
the benefit formula applicable to such par-
ticipants has not changed between such 
dates, and 
‘‘(ii) if the benefit formula applicable 
to 1 or more participants under the plan 
has changed between such 2 dates, then the 
average benefit under the plan shall be con-
sidered to have increased by more than 50 
percent only if— 
‘‘(I) the total amount determined 
under section 430(b)(1)(A)(i) for all 
participants benefitting under the plan 
for the plan year in which the 5-year 
period described in subparagraph (E) 
ends, exceeds 
‘‘(II) the total amount determined 
under section 430(b)(1)(A)(i) for all 
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kjohnson on DSK79L0C42 with BILLS
such participants for such plan year, 
by using the benefit formula in effect 
for each such participant for the first 
plan year in such 5-year period, 
by more than 50 percent. In the case of a 
CSEC plan (as defined in section 414(y)), 
the normal cost of the plan (as determined 
under section 433(j)(1)(B)) shall be used in 
lieu of the amount determined under section 
430(b)(1)(A)(i). 
‘‘(H) TREATMENT
AS
SINGLE
PLAN.—For 
purposes of subparagraphs (E) and (G), a plan 
described in section 413(c) shall be treated as a 
single plan rather than as separate plans main-
tained by each employer in the plan. 
‘‘(I) SPECIAL RULES.—For purposes of sub-
paragraphs (A)(i) and (B)(iii)(II), the following 
rules shall apply: 
‘‘(i) In applying section 410(b)(6)(C), 
the closing of the class of participants shall 
not be treated as a significant change in 
coverage under section 410(b)(6)(C)(i)(II). 
‘‘(ii) 2 or more plans shall not fail to 
be eligible to be aggregated and treated as 
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a single plan solely by reason of having dif-
ferent plan years. 
‘‘(iii) Changes in the employee popu-
lation shall be disregarded to the extent at-
tributable to individuals who become em-
ployees or cease to be employees, after the 
date the class is closed, by reason of a merg-
er, acquisition, divestiture, or similar event. 
‘‘(iv) Aggregation and all other testing 
methodologies otherwise applicable under 
subsection (a)(4) and section 410(b) may be 
taken into account. 
The rule of clause (ii) shall also apply for pur-
poses of determining whether plans to which sub-
paragraph (B)(i) applies may be aggregated and 
treated as 1 plan for purposes of determining 
whether such plans meet the requirements of sub-
section (a)(4) and section 410(b). 
‘‘(J) SPUN-OFF
PLANS.—For purposes of 
this paragraph, if a portion of a defined benefit 
plan described in subparagraph (A) or (B)(iii) 
is spun off to another employer and the spun-off 
plan continues to satisfy the requirements of— 
‘‘(i) 
subparagraph 
(A)(i) 
or 
(B)(iii)(II), whichever is applicable, if the 
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original plan was still within the 3-year pe-
riod described in such subparagraph at the 
time of the spin off, and 
‘‘(ii) 
subparagraph 
(A)(ii) 
or 
(B)(iii)(III), whichever is applicable, 
the treatment under subparagraph (A) or (B) of 
the spun-off plan shall continue with respect to 
such other employer. 
‘‘(2) 
TESTING
OF
DEFINED
CONTRIBUTION 
PLANS.— 
‘‘(A) TESTING ON A BENEFITS BASIS.—A 
defined contribution plan shall be permitted to 
be tested on a benefits basis if— 
‘‘(i) such defined contribution plan 
provides make-whole contributions to a 
closed class of participants whose accruals 
under a defined benefit plan have been re-
duced or eliminated, 
‘‘(ii) for the plan year of the defined 
contribution plan as of which the class eli-
gible to receive such make-whole contribu-
tions closes and the 2 succeeding plan years, 
such closed class of participants satisfies the 
requirements of section 410(b)(2)(A)(i) (de-
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kjohnson on DSK79L0C42 with BILLS
termined by applying the rules of para-
graph (1)(I)), 
‘‘(iii) after the date as of which the 
class was closed, any plan amendment to 
the defined contribution plan which modi-
fies the closed class or the allocations, bene-
fits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iv) the class was closed before April 
5, 2017, or the defined benefit plan under 
clause (i) is described in paragraph (1)(C) 
(as applied for purposes of paragraph 
(1)(B)(iii)(IV)). 
‘‘(B) AGGREGATION WITH PLANS INCLUDING 
MATCHING CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—With respect to 1 
or more defined contribution plans de-
scribed in subparagraph (A), for purposes of 
determining compliance with subsection 
(a)(4) and section 410(b), the portion of 
such plans which provides make-whole con-
tributions or other nonelective contributions 
may be aggregated and tested on a benefits 
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kjohnson on DSK79L0C42 with BILLS
basis with the portion of 1 or more other de-
fined contribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contributions 
or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a tax 
credit employee stock ownership plan 
(within the meaning of section 409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—Rules similar to the rules 
of paragraph (1)(B)(ii) shall apply for pur-
poses of clause (i). 
‘‘(C) SPECIAL
RULES
FOR
TESTING
DE-
FINED
CONTRIBUTION
PLAN
FEATURES
PRO-
VIDING MATCHING CONTRIBUTIONS TO CERTAIN 
OLDER, LONGER SERVICE PARTICIPANTS.—In the 
case of a defined contribution plan which pro-
vides benefits, rights, or features to a closed class 
of participants whose accruals under a defined 
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benefit plan have been reduced or eliminated, the 
plan shall not fail to satisfy the requirements of 
subsection (a)(4) solely by reason of the composi-
tion of the closed class or the benefits, rights, or 
features provided to such closed class if the de-
fined contribution plan and defined benefit plan 
otherwise meet the requirements of subparagraph 
(A) but for the fact that the make-whole con-
tributions under the defined contribution plan 
are made in whole or in part through matching 
contributions. 
‘‘(D) SPUN-OFF
PLANS.—For purposes of 
this paragraph, if a portion of a defined con-
tribution plan described in subparagraph (A) or 
(C) is spun off to another employer, the treat-
ment under subparagraph (A) or (C) of the 
spun-off plan shall continue with respect to the 
other employer if such plan continues to comply 
with the requirements of clauses (ii) (if the origi-
nal plan was still within the 3-year period de-
scribed in such clause at the time of the spin off) 
and (iii) of subparagraph (A), as determined for 
purposes of subparagraph (A) or (C), whichever 
is applicable. 
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‘‘(3) DEFINITIONS
AND
SPECIAL
RULE.—For 
purposes of this subsection— 
‘‘(A) MAKE-WHOLE
CONTRIBUTIONS.—Ex-
cept as otherwise provided in paragraph (2)(C), 
the term ‘make-whole contributions’ means non-
elective allocations for each employee in the class 
which are reasonably calculated, in a consistent 
manner, to replace some or all of the retirement 
benefits which the employee would have received 
under the defined benefit plan and any other 
plan or qualified cash or deferred arrangement 
under subsection (k)(2) if no change had been 
made to such defined benefit plan and such other 
plan or arrangement. For purposes of the pre-
ceding sentence, consistency shall not be required 
with respect to employees who were subject to dif-
ferent benefit formulas under the defined benefit 
plan. 
‘‘(B) REFERENCES
TO
CLOSED
CLASS
OF 
PARTICIPANTS.—References to a closed class of 
participants and similar references to a closed 
class shall include arrangements under which 1 
or more classes of participants are closed, except 
that 1 or more classes of participants closed on 
different dates shall not be aggregated for pur-
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kjohnson on DSK79L0C42 with BILLS
poses of determining the date any such class was 
closed. 
‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 
The term ‘highly compensated employee’ has the 
meaning given such term in section 414(q).’’. 
(b) PARTICIPATION REQUIREMENTS.—Paragraph (26) 
of section 401(a) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(I) PROTECTED PARTICIPANTS.— 
‘‘(i) IN
GENERAL.—A plan shall be 
deemed to satisfy the requirements of sub-
paragraph (A) if— 
‘‘(I) the plan is amended— 
‘‘(aa) to cease all benefit ac-
cruals, or 
‘‘(bb) to provide future ben-
efit accruals only to a closed class 
of participants, 
‘‘(II) the plan satisfies subpara-
graph (A) (without regard to this sub-
paragraph) as of the effective date of 
the amendment, and 
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kjohnson on DSK79L0C42 with BILLS
100 
‘‘(III) the amendment was adopt-
ed before April 5, 2017, or the plan is 
described in clause (ii). 
‘‘(ii) PLANS
DESCRIBED.—A plan is 
described in this clause if the plan would be 
described in subsection (o)(1)(C), as applied 
for purposes of subsection (o)(1)(B)(iii)(IV) 
and by treating the effective date of the 
amendment as the date the class was closed 
for purposes of subsection (o)(1)(C). 
‘‘(iii) SPECIAL RULES.—For purposes 
of clause (i)(II), in applying section 
410(b)(6)(C), the amendments described in 
clause (i) shall not be treated as a signifi-
cant change in coverage under section 
410(b)(6)(C)(i)(II). 
‘‘(iv) SPUN-OFF PLANS.—For purposes 
of this subparagraph, if a portion of a plan 
described in clause (i) is spun off to another 
employer, the treatment under clause (i) of 
the spun-off plan shall continue with respect 
to the other employer.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
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101 
take effect on the date of the enactment of this Act, 
without regard to whether any plan modifications re-
ferred to in such amendments are adopted or effective 
before, on, or after such date of enactment. 
(2) SPECIAL RULES.— 
(A) ELECTION OF EARLIER APPLICATION.— 
At the election of the plan sponsor, the amend-
ments made by this section shall apply to plan 
years beginning after December 31, 2013. 
(B) CLOSED CLASSES OF PARTICIPANTS.— 
For 
purposes 
of 
paragraphs 
(1)(A)(iii), 
(1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 
of the Internal Revenue Code of 1986 (as added 
by this section), a closed class of participants 
shall be treated as being closed before April 5, 
2017, if the plan sponsor’s intention to create 
such closed class is reflected in formal written 
documents and communicated to participants be-
fore such date. 
(C) 
CERTAIN
POST-ENACTMENT
PLAN 
AMENDMENTS.—A plan shall not be treated as 
failing to be eligible for the application of section 
401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 
such Code (as added by this section) to such plan 
solely because in the case of— 
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102 
(i) such section 401(o)(1)(A), the plan 
was amended before the date of the enact-
ment of this Act to eliminate 1 or more ben-
efits, rights, or features, and is further 
amended after such date of enactment to 
provide such previously eliminated benefits, 
rights, or features to a closed class of par-
ticipants, or 
(ii) such section 401(o)(1)(B)(iii) or 
section 401(a)(26), the plan was amended 
before the date of the enactment of this Act 
to cease all benefit accruals, and is further 
amended after such date of enactment to 
provide benefit accruals to a closed class of 
participants. 
Any such section shall only apply if the plan 
otherwise meets the requirements of such section 
and in applying such section, the date the class 
of participants is closed shall be the effective date 
of the later amendment. 
SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC 
PLANS. 
(a) FLAT RATE PREMIUM.—Subparagraph (A) of sec-
tion 4006(a)(3) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1306(a)(3)) is amended— 
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103 
(1) in clause (i), by striking ‘‘plan,’’ and insert-
ing ‘‘plan other than a CSEC plan (as defined in sec-
tion 210(f)(1))’’; 
(2) in clause (v), by striking ‘‘or’’ at the end; 
(3) in clause (vi), by striking the period at the 
end and inserting ‘‘, or’’; and 
(4) by adding at the end the following new 
clause: 
‘‘(vii) in the case of a CSEC plan (as 
defined in section 210(f)(1)), for plan years 
beginning after December 31, 2018, for each 
individual who is a participant in such 
plan during the plan year an amount equal 
to the sum of— 
‘‘(I) the additional premium (if 
any) determined under subparagraph 
(E), and 
‘‘(II) $19.’’. 
(b) VARIABLE RATE PREMIUM.— 
(1) UNFUNDED VESTED BENEFITS.— 
(A) IN
GENERAL.—Subparagraph (E) of 
section 4006(a)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)) is amended by adding at the end the 
following new clause: 
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kjohnson on DSK79L0C42 with BILLS
104 
‘‘(v) For purposes of clause (ii), in the case 
of a CSEC plan (as defined in section 210(f)(1)), 
the term ‘unfunded vested benefits’ means, for 
plan years beginning after December 31, 2018, 
the excess (if any) of— 
‘‘(I) the funding liability of the plan as 
determined under section 306(j)(5)(C) for 
the plan year by only taking into account 
vested benefits, over 
‘‘(II) the fair market value of plan as-
sets for the plan year which are held by the 
plan on the valuation date.’’. 
(B) 
CONFORMING
AMENDMENT.—Clause 
(iii) of section 4006(a)(3)(E) of such Act (29 
U.S.C. 1306(a)(3)(E)) is amended by striking 
‘‘For purposes’’ and inserting ‘‘Except as pro-
vided in clause (v), for purposes’’. 
(2) APPLICABLE DOLLAR AMOUNT.— 
(A) IN GENERAL.—Paragraph (8) of section 
4006(a) of such Act (29 U.S.C. 1306(a)) is 
amended by adding at the end the following new 
subparagraph: 
‘‘(E) CSEC PLANS.—In the case of a CSEC 
plan (as defined in section 210(f)(1)), the appli-
cable dollar amount shall be $9.’’. 
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105 
(B) CONFORMING
AMENDMENT.—Subpara-
graph (A) of section 4006(a)(8) of such Act (29 
U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 
and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 
TITLE III—OTHER BENEFITS 
SEC. 301. BENEFITS PROVIDED TO VOLUNTEER FIRE-
FIGHTERS AND EMERGENCY MEDICAL RE-
SPONDERS. 
(a) INCREASE IN DOLLAR LIMITATION ON QUALIFIED 
PAYMENTS.—Subparagraph (B) of section 139B(c)(2) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘$30’’ and inserting ‘‘$50’’. 
(b) EXTENSION.—Section 139B(d) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘beginning after 
December 31, 2010.’’ and inserting ‘‘beginning— 
‘‘(1) after December 31, 2010, and before Janu-
ary 1, 2020, or 
‘‘(2) after December 31, 2020.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 302. EXPANSION OF SECTION 529 PLANS. 
(a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSOCI-
ATED WITH REGISTERED APPRENTICESHIP PROGRAMS.— 
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106 
Section 529(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph: 
‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSOCI-
ATED
WITH
REGISTERED
APPRENTICESHIP
PRO-
GRAMS.—Any reference in this subsection to the term 
‘qualified higher education expense’ shall include a 
reference to expenses for fees, books, supplies, and 
equipment required for the participation of a des-
ignated beneficiary in an apprenticeship program 
registered and certified with the Secretary of Labor 
under section 1 of the National Apprenticeship Act 
(29 U.S.C. 50).’’ 
(b) DISTRIBUTIONS FOR CERTAIN HOMESCHOOLING 
EXPENSES.—Section 529(c)(7) of such Code is amended by 
striking ‘‘include a reference to’’ and all that follows and 
inserting: ‘‘include a reference to— 
‘‘(A) expenses for tuition in connection with 
enrollment or attendance of a designated bene-
ficiary at an elementary or secondary public, 
private, or religious school, and 
‘‘(B) expenses, with respect to a designated 
beneficiary, for— 
‘‘(i) curriculum and curricular mate-
rials, 
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107 
‘‘(ii) books or other instructional mate-
rials, 
‘‘(iii) online educational materials, 
‘‘(iv) tuition for tutoring or edu-
cational classes outside of the home (but 
only if the tutor or class instructor is not 
related (within the meaning of section 
152(d)(2)) to the student), 
‘‘(v) dual enrollment in an institution 
of higher education, and 
‘‘(vi) educational therapies for students 
with disabilities, 
in connection with a homeschool (whether treated 
as a homeschool or a private school for purposes 
of applicable State law).’’. 
(c) DISTRIBUTIONS FOR QUALIFIED EDUCATION LOAN 
REPAYMENTS.— 
(1) IN GENERAL.—Section 529(c) of such Code, 
as amended by subsection (a), is amended by adding 
at the end the following new paragraph: 
‘‘(9) TREATMENT
OF
QUALIFIED
EDUCATION 
LOAN REPAYMENTS.— 
‘‘(A) IN GENERAL.—Any reference in this 
subsection to the term ‘qualified higher education 
expense’ shall include a reference to amounts 
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108 
paid as principal or interest on any qualified 
education loan (as defined in section 221(d)) of 
the designated beneficiary or a sibling of the des-
ignated beneficiary. 
‘‘(B) LIMITATION.—The amount of distribu-
tions treated as a qualified higher education ex-
pense under this paragraph with respect to the 
loans of any individual shall not exceed $10,000 
(reduced by the amount of distributions so treat-
ed for all prior taxable years). 
‘‘(C) SPECIAL RULES FOR SIBLINGS OF THE 
DESIGNATED BENEFICIARY.— 
‘‘(i) 
SEPARATE
ACCOUNTING.—For 
purposes of subparagraph (B) and sub-
section (d), amounts treated as a qualified 
higher education expense with respect to the 
loans of a sibling of the designated bene-
ficiary shall be taken into account with re-
spect to such sibling and not with respect to 
such designated beneficiary. 
‘‘(ii) SIBLING DEFINED.—For purposes 
of this paragraph, the term ‘sibling’ means 
an individual who bears a relationship to 
the designated beneficiary which is de-
scribed in section 152(d)(2)(B).’’. 
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109 
(2) COORDINATION WITH DEDUCTION FOR STU-
DENT
LOAN
INTEREST.—Section 221(e)(1) of such 
Code is amended by adding at the end the following: 
‘‘The deduction otherwise allowable under subsection 
(a) (prior to the application of subsection (b)) to the 
taxpayer for any taxable year shall be reduced (but 
not below zero) by so much of the distributions treated 
as a qualified higher education expense under section 
529(c)(9) with respect to loans of the taxpayer as 
would be includible in gross income under section 
529(c)(3)(A) for such taxable year but for such treat-
ment.’’. 
(d) DISTRIBUTIONS FOR CERTAIN ELEMENTARY AND 
SECONDARY SCHOOL EXPENSES
IN ADDITION
TO TUI-
TION.—Section 529(c)(7)(A) of such Code, as amended by 
subsection (b), is amended to read as follows: 
‘‘(A) 
expenses 
described 
in 
section 
530(b)(3)(A)(i) in connection with enrollment or 
attendance of a designated beneficiary at an ele-
mentary or secondary public, private, or reli-
gious school, and’’. 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2018. 
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110 
TITLE IV—REVENUE 
PROVISIONS 
SEC. 401. MODIFICATION OF REQUIRED DISTRIBUTION 
RULES FOR DESIGNATED BENEFICIARIES. 
(a) MODIFICATION
OF RULES WHERE EMPLOYEE 
DIES BEFORE ENTIRE DISTRIBUTION.— 
(1) IN GENERAL.—Section 401(a)(9) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new subparagraph 
‘‘(H) SPECIAL
RULES
FOR
CERTAIN
DE-
FINED CONTRIBUTION PLANS.—In the case of a 
defined contribution plan, if an employee dies 
before the distribution of the employee’s entire 
interest— 
‘‘(i) IN GENERAL.—Except in the case 
of a beneficiary who is not a designated 
beneficiary, subparagraph (B)(ii)— 
‘‘(I) shall be applied by sub-
stituting ‘10 years’ for ‘5 years’, and 
‘‘(II) shall apply whether or not 
distributions of the employee’s interests 
have begun in accordance with sub-
paragraph (A). 
‘‘(ii) EXCEPTION ONLY FOR ELIGIBLE 
DESIGNATED
BENEFICIARIES.—Subpara-
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111 
graph (B)(iii) shall apply only in the case 
of an eligible designated beneficiary. 
‘‘(iii) RULES UPON DEATH OF ELIGI-
BLE DESIGNATED BENEFICIARY.—If an eli-
gible designated beneficiary dies before the 
portion of the employee’s interest to which 
this subparagraph applies is entirely dis-
tributed, the exception under clause (iii) 
shall not apply to any beneficiary of such 
eligible designated beneficiary and the re-
mainder of such portion shall be distributed 
within 10 years after the death of such eli-
gible designated beneficiary. 
‘‘(iv) APPLICATION
TO
ELIGIBLE
RE-
TIREMENT PLANS.—For purposes of apply-
ing the provisions of this subparagraph in 
determining the amounts required to be dis-
tributed pursuant to this paragraph, all eli-
gible retirement plans (as defined in section 
402(c)(8)(B)) other than a defined benefit 
plan shall be treated as a defined contribu-
tion plan.’’. 
(2) DEFINITION OF ELIGIBLE DESIGNATED BENE-
FICIARY.—Section 401(a)(9)(E) of such Code is 
amended to read as follows: 
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112 
‘‘(E) DEFINITIONS
AND
RULES
RELATING 
TO DESIGNATED BENEFICIARY.—For purposes of 
this paragraph— 
‘‘(i) DESIGNATED
BENEFICIARY.—The 
term ‘designated beneficiary’ means any in-
dividual designated as a beneficiary by the 
employee. 
‘‘(ii) ELIGIBLE
DESIGNATED
BENE-
FICIARY.—The term ‘eligible designated ben-
eficiary’ means, with respect to any em-
ployee, any designated beneficiary who is— 
‘‘(I) the surviving spouse of the 
employee, 
‘‘(II) subject to clause (iii), a 
child of the employee who has not 
reached majority (within the meaning 
of subparagraph (F)), 
‘‘(III) disabled (within the mean-
ing of section 72(m)(7)), 
‘‘(IV) a chronically ill individual 
(within 
the 
meaning 
of 
section 
7702B(c)(2), except that the require-
ments of subparagraph (A)(i) thereof 
shall only be treated as met if there is 
a certification that, as of such date, the 
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113 
period of inability described in such 
subparagraph with respect to the indi-
vidual is an indefinite one which is 
reasonably expected to be lengthy in 
nature), or 
‘‘(V) an individual not described 
in any of the preceding subclauses who 
is not more than 10 years younger 
than the employee. 
‘‘(iii) 
SPECIAL
RULE
FOR
CHIL-
DREN.—Subject to subparagraph (F), an 
individual described in clause (ii)(II) shall 
cease to be an eligible designated beneficiary 
as of the date the individual reaches major-
ity and any remainder of the portion of the 
individual’s interest to which subparagraph 
(H)(ii) applies shall be distributed within 
10 years after such date. 
‘‘(iv) TIME
FOR
DETERMINATION
OF 
ELIGIBLE DESIGNATED BENEFICIARY.—The 
determination of whether a designated bene-
ficiary is an eligible designated beneficiary 
shall be made as of the date of death of the 
employee.’’. 
(3) EFFECTIVE DATES.— 
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114 
(A) IN GENERAL.—Except as provided in 
this paragraph and paragraphs (4) and (5), the 
amendments made by this subsection shall apply 
to distributions with respect to employees who 
die after December 31, 2019. 
(B) COLLECTIVE BARGAINING EXCEPTION.— 
In the case of a plan maintained pursuant to 1 
or more collective bargaining agreements between 
employee representatives and 1 or more employ-
ers ratified before the date of enactment of this 
Act, the amendments made by this subsection 
shall apply to distributions with respect to em-
ployees who die in calendar years beginning 
after the earlier of— 
(i) the later of— 
(I) the date on which the last of 
such collective bargaining agreements 
terminates (determined without regard 
to any extension thereof agreed to on or 
after the date of the enactment of this 
Act), or 
(II) December 31, 2019, or 
(ii) December 31, 2021. 
For purposes of clause (i)(I), any plan amend-
ment made pursuant to a collective bargaining 
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115 
agreement relating to the plan which amends the 
plan solely to conform to any requirement added 
by this section shall not be treated as a termi-
nation of such collective bargaining agreement. 
(C) GOVERNMENTAL PLANS.—In the case of 
a governmental plan (as defined in section 
414(d) of the Internal Revenue Code of 1986), 
subparagraph (A) shall be applied by sub-
stituting ‘‘December 31, 2021’’ for ‘‘December 31, 
2019’’. 
(4) EXCEPTION FOR CERTAIN EXISTING ANNUITY 
CONTRACTS.— 
(A) IN GENERAL.—The amendments made 
by this subsection shall not apply to a qualified 
annuity which is a binding annuity contract in 
effect on the date of enactment of this Act and 
at all times thereafter. 
(B) QUALIFIED ANNUITY.—For purposes of 
this paragraph, the term ‘‘qualified annuity’’ 
means, with respect to an employee, an annu-
ity— 
(i) which is a commercial annuity (as 
defined in section 3405(e)(6) of the Internal 
Revenue Code of 1986); 
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116 
(ii) under which the annuity payments 
are made over the life of the employee or 
over the joint lives of such employee and a 
designated beneficiary (or over a period not 
extending beyond the life expectancy of such 
employee or the joint life expectancy of such 
employee and a designated beneficiary) in 
accordance with the regulations described in 
section 401(a)(9)(A)(ii) of such Code (as in 
effect before such amendments) and which 
meets the other requirements of section 
401(a)(9) of such Code (as so in effect) with 
respect to such payments; and 
(iii) with respect to which— 
(I) annuity payments to the em-
ployee have begun before the date of en-
actment of this Act, and the employee 
has made an irrevocable election before 
such date as to the method and amount 
of the annuity payments to the em-
ployee or any designated beneficiaries; 
or 
(II) if subclause (I) does not 
apply, the employee has made an ir-
revocable election before the date of en-
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117 
actment of this Act as to the method 
and amount of the annuity payments 
to the employee or any designated 
beneficiaries. 
(5) EXCEPTION FOR CERTAIN BENEFICIARIES.— 
(A) IN GENERAL.—If an employee dies be-
fore the effective date, then, in applying the 
amendments made by this subsection to such em-
ployee’s designated beneficiary who dies after 
such date— 
(i) such amendments shall apply to 
any beneficiary of such designated bene-
ficiary; and 
(ii) the designated beneficiary shall be 
treated as an eligible designated beneficiary 
for 
purposes 
of 
applying 
section 
401(a)(9)(H)(ii) of the Internal Revenue 
Code of 1986 (as in effect after such amend-
ments). 
(B) EFFECTIVE DATE.—For purposes of this 
paragraph, the term ‘‘effective date’’ means the 
first day of the first calendar year to which the 
amendments made by this subsection apply to a 
plan with respect to employees dying on or after 
such date. 
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118 
(b) PROVISIONS RELATING TO PLAN AMENDMENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any plan amendment— 
(A) such plan shall be treated as being oper-
ated in accordance with the terms of the plan 
during the period described in paragraph 
(2)(B)(i); and 
(B) except as provided by the Secretary of 
the Treasury, such plan shall not fail to meet the 
requirements of section 411(d)(6) of the Internal 
Revenue Code of 1986 and section 204(g) of the 
Employee Retirement Income Security Act of 
1974 by reason of such amendment. 
(2) AMENDMENTS
TO
WHICH
SUBSECTION
AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or which 
is made— 
(i) pursuant to any amendment made 
by this section or pursuant to any regula-
tion issued by the Secretary of the Treasury 
under this section or such amendments; and 
(ii) on or before the last day of the first 
plan year beginning after December 31, 
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119 
2021, or such later date as the Secretary of 
the Treasury may prescribe. 
In the case of a governmental or collectively bar-
gained plan to which subparagraph (B) or (C) 
of subsection (a)(4) applies, clause (ii) shall be 
applied by substituting the date which is 2 years 
after the date otherwise applied under such 
clause. 
(B) CONDITIONS.—This subsection shall not 
apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date the leg-
islative or regulatory amendment de-
scribed in paragraph (1)(A) takes effect 
(or in the case of a plan amendment 
not required by such legislative or reg-
ulatory amendment, the effective date 
specified by the plan); and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan amendment is adopt-
ed), 
the plan is operated as if such plan amend-
ment were in effect; and 
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(ii) such plan amendment applies 
retroactively for such period. 
SEC. 402. INCREASE IN PENALTY FOR FAILURE TO FILE. 
(a) IN GENERAL.—The second sentence of subsection 
(a) of section 6651 of the Internal Revenue Code of 1986 
is amended by striking ‘‘$205’’ and inserting ‘‘$400’’. 
(b) INFLATION ADJUSTMENT.—Section 6651(j)(1) of 
such Code is amended by striking ‘‘$205’’ and inserting 
‘‘$400’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to returns the due date for which (in-
cluding extensions) is after December 31, 2019. 
SEC. 403. INCREASED PENALTIES FOR FAILURE TO FILE RE-
TIREMENT PLAN RETURNS. 
(a) IN GENERAL.—Subsection (e) of section 6652 of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$25’’ and inserting ‘‘$105’’; and 
(2) 
by 
striking 
‘‘$15,000’’ 
and 
inserting 
‘‘$50,000’’. 
(b) ANNUAL REGISTRATION STATEMENT AND NOTIFI-
CATION OF CHANGES.—Subsection (d) of section 6652 of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$1’’ both places it appears in 
paragraphs (1) and (2) and inserting ‘‘$2’’; 
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121 
(2) by striking ‘‘$5,000’’ in paragraph (1) and 
inserting ‘‘$10,000’’; and 
(3) by striking ‘‘$1,000’’ in paragraph (2) and 
inserting ‘‘$5,000’’. 
(c) FAILURE TO PROVIDE NOTICE.—Subsection (h) of 
section 6652 of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘$10’’ and inserting ‘‘$100’’; and 
(2) 
by 
striking 
‘‘$5,000’’ 
and 
inserting 
‘‘$50,000’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to returns, statements, and notifications 
required to be filed, and notices required to be provided, 
after December 31, 2019. 
SEC. 404. INCREASE INFORMATION SHARING TO ADMIN-
ISTER EXCISE TAXES. 
(a) IN GENERAL.—Section 6103(o) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(3) TAXES
IMPOSED
BY
SECTION 4481.—Re-
turns and return information with respect to taxes 
imposed by section 4481 shall be open to inspection 
by or disclosure to officers and employees of United 
States Customs and Border Protection of the Depart-
ment of Homeland Security whose official duties re-
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122 
quire such inspection or disclosure for purposes of ad-
ministering such section.’’. 
(b) CONFORMING AMENDMENTS.—Paragraph (4) of 
section 6103(p) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or (o)(1)(A)’’ each place it appears 
and inserting ‘‘, (o)(1)(A), or (o)(3)’’. 
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Union Calendar No. 42 
116TH CONGRESS 
1ST SESSION 
H. R. 1994 
[Report No. 116–65, Part I] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
encourage retirement savings, and for other pur-
poses. 
MAY 16, 2019 
Reported from the Committee on Ways and Means with 
an amendment 
MAY 16, 2019 
Committee on Education and Labor discharged; com-
mitted to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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