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quarter with respect to a hypothetical 
$10,000 investment in the option. 
‘‘(F) ANNUAL
COMPLIANCE
FOR
SMALL 
PLANS.—A plan that has fewer than 100 partici-
pants and beneficiaries as of the first day of the 
plan year may provide the explanation described 
in subparagraph (C) on an annual rather than 
a quarterly basis.’’. 
(c) 
ASSISTANCE
FROM
THE
DEPARTMENT
OF 
LABOR.—Section 105 of such Act (29 U.S.C. 1025) is 
amended by adding at the end the following new sub-
sections: 
‘‘(d) ASSISTANCE TO SMALL EMPLOYERS.—The Sec-
retary shall make available to employers with 100 or fewer 
employees— 
‘‘(1) educational and compliance materials de-
signed to assist such employers in selecting and moni-
toring service providers for individual account plans 
which permit a participant or beneficiary to exercise 
control over the assets in the account of the partici-
pant or beneficiary, investment options under such 
plans, and charges relating to such options, and 
‘‘(2) services designed to assist such employers in 
finding and understanding affordable investment op-
tions for such plans and in comparing the investment
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performance of, and charges for, such options on an 
ongoing basis against appropriate benchmarks or 
other appropriate measures. 
‘‘(e) ASSISTANCE TO PLAN SPONSORS AND PLAN PAR-
TICIPANTS AND BENEFICIARIES.—The Secretary shall pro-
vide plan administrators and plan sponsors of individual 
account plans and participants and beneficiaries under 
such plans assistance with any questions or problems re-
garding compliance with the requirements of subparagraphs 
(B)(ii)(IV) and (C) of subsection (a)(2) and section 112.’’. 
(d) ENFORCEMENT.— 
(1) PENALTIES.—Section 502 of such Act (29 
U.S.C. 1132) is amended— 
(A) in subsection (a)(6), by striking ‘‘under 
paragraph (2)’’ and all that follows through 
‘‘subsection (c)’’ and inserting ‘‘under paragraph 
(2), (4), (5), (6), (7), (8), (9), (10), (11), or (12) 
of subsection (c)’’; and 
(B) in subsection (c), by redesignating the 
second paragraph (10) as paragraph (13), and 
by inserting after the first paragraph (10) the 
following new paragraphs: 
‘‘(11)(A) In the case of any failure by a service pro-
vider (as defined in section 111(f)(1)) to provide a state-
ment in violation of section 111, the service provider may
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•HR 4213 EAH1S 
be assessed by the Secretary a civil penalty of up to $1,000 
for each day in the noncompliance period. 
‘‘(B) For purposes of subparagraph (A), the non-
compliance period with respect to the failure to provide any 
statement is the period beginning on the date that such 
statement was required to be provided and ending on the 
date that such statement is provided or the failure is other-
wise corrected. 
‘‘(C)(i) The total amount of a penalty assessed under 
this paragraph on any service provider with respect to any 
individual account plan for any plan year shall not exceed 
an amount equal to the lesser of— 
‘‘(I) 10 percent of the assets of the plan, deter-
mined as of the first day of such plan year, or 
‘‘(II) $1,000,000. 
‘‘(ii) No penalty shall be imposed by subparagraph (A) 
on any failure if— 
‘‘(I) the service provider subject to liability for 
the penalty under subparagraph (A) exercised reason-
able diligence to meet the requirement with respect to 
which the failure relates, and 
‘‘(II) such service provider provides the informa-
tion required under section 111 during the 30-day pe-
riod beginning on the date such person knew, or exer-
191 
•HR 4213 EAH1S 
cising reasonable diligence would have known, that 
such failure existed. 
‘‘(iii) In the case of a failure which is due to reasonable 
cause and not to willful neglect, the Secretary may waive 
part or all of the penalty under subparagraph (A) to the 
extent that the payment of such penalty would be excessive 
or otherwise inequitable relative to the failure involved. 
‘‘(D) The penalty imposed under this paragraph with 
respect to any failure shall be reduced by the amount of 
any tax imposed on such person with respect to such failure 
under section 4980J of the Internal Revenue Code of 1986. 
‘‘(12)(A) Any plan administrator with respect to a 
plan who fails or refuses to provide a notice, explanation, 
or statement to participants and beneficiaries in accord-
ance with subparagraphs (B)(ii)(IV) and (C) of section 
105(a)(2) and section 112 may be assessed by the Secretary 
a civil penalty of up to $110 for each day in the noncompli-
ance period. 
‘‘(B) For purposes of subparagraph (A), the non-
compliance period with respect to the failure to provide any 
notice, explanation, or statement referred to in subpara-
graph (B)(ii)(IV) or (C) of section 105(a)(2) or section 112 
with respect to any participant or beneficiary is the period 
beginning on the date that such notice, explanation, or 
statement was required to be provided and ending on the
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•HR 4213 EAH1S 
date that such notice, explanation, or statement is provided 
or the failure is otherwise corrected. 
‘‘(C)(i) The total amount of penalty assessed under this 
paragraph with respect to any plan for any plan year shall 
not exceed an amount equal to the lesser of— 
‘‘(I) 10 percent of the assets of the plan, deter-
mined as of the first day of such plan year, or 
‘‘(II) $500,000. 
‘‘(ii) No penalty shall be imposed under subparagraph 
(A) on any failure to meet the requirements of subpara-
graphs (B)(ii)(IV) and (C) of section 105(a)(2) and section 
112 if— 
‘‘(I) any person subject to liability for the pen-
alty under subparagraph (A) exercised reasonable 
diligence to meet such requirements, and 
‘‘(II) such person provides the notice, expla-
nation, or statement to which the failure relates dur-
ing the 30-day period beginning on the date such per-
son knew, or exercising reasonable diligence would 
have known, that such failure existed. 
‘‘(iii) In the case of a failure which is due to reasonable 
cause and not to willful neglect, the Secretary shall waive 
part or all of the penalty under subparagraph (A) to the 
extent that the payment of such penalty would be excessive 
or otherwise inequitable relative to the failure involved.
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•HR 4213 EAH1S 
‘‘(iv) The penalty imposed under this paragraph with 
respect to any failure shall be reduced by the amount of 
any tax imposed on such person with respect to such failure 
under section 4980K of the Internal Revenue Code of 
1986.’’. 
(2) ENFORCEMENT COORDINATION AND REVIEW 
BY
THE
DEPARTMENT
OF
LABOR.—Section 502 of 
such Act (29 U.S.C. 1132) is amended by adding at 
the end the following new subsection: 
‘‘(n) ENFORCEMENT COORDINATION OF CERTAIN DIS-
CLOSURE REQUIREMENTS RELATING TO INDIVIDUAL AC-
COUNT PLANS
AND REVIEW
BY
THE DEPARTMENT
OF 
LABOR.— 
‘‘(1) NOTIFICATION
AND
ACTION
RELATING
TO 
SERVICE PROVIDERS.—The Secretary shall notify the 
applicable regulatory authority in any case in which 
the Secretary determines that a service provider is en-
gaged in a pattern or practice that precludes compli-
ance by plan administrators with subparagraphs 
(B)(ii)(IV) and (C) of section 105(a)(2) and section 
112. The Secretary shall, in consultation with the ap-
plicable authority, take such timely enforcement ac-
tion under this title as is necessary to assure that 
such pattern or practice ceases and desists and assess 
any appropriate penalties.
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•HR 4213 EAH1S 
‘‘(2) ANNUAL AUDIT OF REPRESENTATIVE SAM-
PLING
OF
INDIVIDUAL
ACCOUNT
PLANS.—The Sec-
retary shall annually audit a representative sampling 
of individual account plans covered by this title to de-
termine compliance with the requirements of subpara-
graphs (B)(ii)(IV) and (C) of section 105(a)(2), sec-
tion 111, and section 112. The Secretary shall annu-
ally report the results of such audit and any related 
recommendations of the Secretary to the Committee 
on Education and Labor of the House of Representa-
tives and the Committee on Health, Education, 
Labor, and Pensions of the Senate.’’. 
(e) REVIEW AND REPORT TO THE CONGRESS BY SEC-
RETARY OF LABOR RELATING TO REPORTING AND DISCLO-
SURE REQUIREMENTS.— 
(1) STUDY.—As soon as practicable after the 
date of the enactment of this Act, the Secretary of 
Labor shall review the reporting and disclosure re-
quirements of part 1 of subtitle B of title I of the Em-
ployee Retirement Income Security Act of 1974 and 
related provisions of the Pension Protection Act of 
2006. 
(2) REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the Secretary of 
Labor, in consultation with the Secretary of the
195 
•HR 4213 EAH1S 
Treasury, shall make such recommendations as the 
Secretary of Labor considers appropriate to the ap-
propriate committees of the Congress to consolidate, 
simplify, standardize, and improve the applicable re-
porting and disclosure requirements so as to simplify 
reporting for employee pension benefit plans and en-
sure that needed understandable information is pro-
vided to participants and beneficiaries of such plans. 
SEC. 323. AMENDMENTS TO THE INTERNAL REVENUE CODE 
OF 1986. 
(a) IN GENERAL.—Chapter 43 of the Internal Revenue 
Code of 1986 (relating to qualified pension, etc. plans) is 
amended by adding at the end the following new sections: 
‘‘SEC. 4980J. FAILURE TO PROVIDE NOTICE OF PLAN FEE IN-
FORMATION TO PLAN ADMINISTRATORS. 
‘‘(a) IMPOSITION OF TAX.— 
‘‘(1) IN GENERAL.—There is hereby imposed a 
tax on each failure of a service provider to meet the 
requirements of paragraph (2) with respect to any 
applicable defined contribution plan. 
‘‘(2) FAILURES
DESCRIBED.—The failures de-
scribed in this paragraph are— 
‘‘(A) any failure to provide an initial state-
ment described in subsection (d),
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•HR 4213 EAH1S 
‘‘(B) any failure to provide an annual 
statement described in subsection (e), and 
‘‘(C) any failure to provide a material 
change statement described in subsection (f). 
‘‘(b) AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The amount of the tax im-
posed by subsection (a) on any failure shall be $1,000 
for each day in the noncompliance period. 
‘‘(2) NONCOMPLIANCE PERIOD.—For purposes of 
paragraph (1), the noncompliance period with respect 
to the failure to provide any statement is the period 
beginning on the date that such statement was re-
quired to be provided and ending on the date that 
such statement is provided or the failure is otherwise 
corrected. 
‘‘(c) LIMITATIONS.— 
‘‘(1) 
AGGREGATE
LIMITATION.—The 
total 
amount of tax imposed by this section on any service 
provider with respect to any applicable defined con-
tribution plan for any plan year shall not exceed an 
amount equal to the lesser of— 
‘‘(A) 10 percent of the assets of the plan, de-
termined as of the first day of such plan year, 
or 
‘‘(B) $1,000,000.
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•HR 4213 EAH1S 
‘‘(2) TAX
NOT
TO
APPLY
TO
FAILURES
COR-
RECTED WITHIN 30 DAYS.—No tax shall be imposed 
by subsection (a) on any failure if— 
‘‘(A) the service provider subject to liability 
for the tax under subsection (a) exercised reason-
able diligence to meet the requirement with re-
spect to which the failure relates, and 
‘‘(B) such service provider provides the in-
formation required under subsection (a) during 
the 30-day period beginning on the date such 
person knew, or exercising reasonable diligence 
would have known, that such failure existed. 
‘‘(3) WAIVER BY SECRETARY.—In the case of a 
failure which is due to reasonable cause and not to 
willful neglect, the Secretary may waive part or all 
of the tax imposed by subsection (a) to the extent that 
the payment of such tax would be excessive or other-
wise inequitable relative to the failure involved. 
‘‘(d) INITIAL STATEMENT OF SERVICES PROVIDED AND 
REVENUES RECEIVED.— 
‘‘(1) IN
GENERAL.—Before entering into any 
contract or arrangement to provide services to an ap-
plicable defined contribution plan, the service pro-
vider shall provide to the plan administrator a single 
written statement which includes, with respect to the
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•HR 4213 EAH1S 
first plan year covered under such contract or ar-
rangement, the following: 
‘‘(A) A detailed description of the services 
which will be provided to the plan by the service 
provider, the amount of total expected annual 
revenue with respect to such services, the manner 
in which such revenue will be collected, and the 
extent to which such revenue varies between spe-
cific investment options. 
‘‘(B)(i) In the case of a service provider who 
is providing recordkeeping services with respect 
to any investment option, such information as is 
necessary for the plan administrator to satisfy 
the requirements of paragraphs (1), (2) and (4) 
of section 4980K(e) with respect to such option, 
including specifying the method used by the serv-
ice provider in disclosing or estimating expenses 
under subparagraphs (A)(iv) and (C) of such 
paragraph (2). 
‘‘(ii) To the extent provided in regulations 
issued by the Secretary of Labor, clause (i) shall 
not apply in the case of a service provider de-
scribed in such clause if the service provider re-
ceives a written notification from the plan ad-
ministrator that the information described in
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•HR 4213 EAH1S 
such clause in connection with the investment 
option is provided by another service provider 
pursuant to a contract or arrangement to pro-
vide services to the plan. 
‘‘(C) A statement indicating— 
‘‘(i) the identity of any investment op-
tions offered under the plan with respect to 
which the service provider provides substan-
tial investment, trustee, custodial, or ad-
ministrative services, and 
‘‘(ii) in the case of any investment op-
tion, whether the service provider expects to 
receive any component of total expected an-
nual 
revenue 
described 
in 
paragraph 
(2)(A)(ii)(II) with respect to such option 
and the amount of any such component. 
‘‘(D) The portion of total expected annual 
revenue which is properly allocable to each of the 
following: 
‘‘(i) Administration and recordkeeping. 
‘‘(ii) Investment management. 
‘‘(iii) Other services or amounts not 
described in clause (i) or (ii). 
‘‘(2) DEFINITION OF TOTAL EXPECTED ANNUAL 
REVENUE.—For purposes of this section—
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•HR 4213 EAH1S 
‘‘(A) IN GENERAL.—The term ‘total expected 
annual revenue’ means, with respect to any plan 
year— 
‘‘(i) any amount expected to be re-
ceived during such plan year from the plan 
(including amounts paid from participant 
accounts), any participant or beneficiary, 
or any plan sponsor in connection with the 
contract or arrangement referred to in 
paragraph (1), and 
‘‘(ii) any amount not taken into ac-
count under clause (i) which is expected to 
be received during such plan year by the 
service provider in connection with— 
‘‘(I) plan administration, record-
keeping, consulting, management, or 
investment or other service activities 
undertaken by the service provider 
with respect to the plan, or 
‘‘(II) plan administration, record-
keeping, consulting, management, or 
investment or other service activities 
undertaken by any other person with 
respect to the plan.
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•HR 4213 EAH1S 
‘‘(B) EXPRESSED AS DOLLAR AMOUNT OR 
PERCENTAGE
OF
ASSETS.—Total expected an-
nual revenue and any amount indicated under 
paragraph (1)(C)(ii) may be expressed as a dol-
lar amount or as a percentage of assets (or a 
combination thereof), as appropriate. To the ex-
tent that total expected annual revenue is ex-
pressed as a percentage of assets, such percentage 
shall be properly allocated among clauses (i), 
(ii), and (iii) of paragraph (1)(D). 
‘‘(C) PROVISION
OF
FEE
SCHEDULE
FOR 
CERTAIN
PARTICIPANT
INITIATED
TRANS-
ACTIONS.—In the case of amounts expected to be 
received from participants or beneficiaries under 
the plan (or from the account of a participant 
or beneficiary) as a fee or charge in connection 
with a transaction initiated by the participant 
(other than loads, commissions, brokerage fees, 
and other investment related transactions)— 
‘‘(i) such amounts shall not be taken 
into account in determining total expected 
annual revenue, and 
‘‘(ii) the service provider shall provide 
to the plan administrator, as part of the 
statement referred to in paragraph (1), a fee
202 
•HR 4213 EAH1S 
schedule which describes each such fee or 
charge, the amount thereof, and the manner 
in which such amount is collected. 
‘‘(D) ESTIMATIONS.—In determining under 
this subsection any amount which is expected to 
be received by the service provider, the service 
provider shall provide a reasonable estimate of 
such amount and shall indicate in the statement 
referred to in paragraph (1) whether such 
amount disclosed is an estimate. Any such esti-
mate shall be based on reasonable assumptions 
specified in such statement. 
‘‘(3) ALLOCATION
RULES.—The Secretary of 
Labor shall provide rules for defining total expected 
annual revenue and for the appropriate and con-
sistent allocation of total expected annual revenue 
among clauses (i), (ii), and (iii) of paragraph (1)(D), 
except that the entire amount of such revenue shall be 
allocated among such clauses and no amount may be 
taken into account under more than one clause. 
‘‘(4) DISCLOSURE OF DIFFERENT PRICING OF IN-
VESTMENT OPTIONS.—In the case of investment op-
tions with more than one share class or price level, 
the Secretary of Labor shall prescribe regulations for 
the disclosure of the different share classes or price
203 
•HR 4213 EAH1S 
levels available as part of the statement in paragraph 
(1). Such regulations shall provide guidance with re-
spect to the disclosure of the basis for qualifying for 
such share classes or price levels, which may include 
amounts invested, number of participants, or other 
factors. 
‘‘(5) DISCLOSURE OF INVESTMENT TRANSACTION 
COSTS.—To the extent provided in regulations issued 
by the Secretary of Labor, a service provider shall 
separately disclose the transaction costs (including 
sales commissions) for each investment option for the 
preceding year or the plan’s allocable share of such 
costs for the preceding year. 
‘‘(e) ANNUAL STATEMENTS.—With respect to each plan 
year after the plan year covered by the statement described 
in subsection (d), the service provider shall provide the plan 
administrator a single written statement which includes the 
information described in subsection (d) with respect to such 
subsequent plan year. 
‘‘(f) MATERIAL CHANGE STATEMENTS.—In the case of 
any event or other change during a plan year which causes 
the information included in any statement described in sub-
section (d) or (e) with respect to such plan year to become 
materially incorrect, the service provider shall provide the 
plan administrator a written statement providing the cor-
204 
•HR 4213 EAH1S 
rected information not later than 30 days after the service 
provider knows, or exercising reasonable diligence would 
have known, of such event or other change. 
‘‘(g) TIME AND MANNER OF PROVIDING STATEMENT 
AND OTHER MATERIALS.—The statement referred to in sub-
sections (d)(1) and (e) shall be made at such time and in 
such manner as the Secretary of Labor may provide. Other 
materials required to be provided under this section shall 
be provided in such manner as such Secretary may provide. 
All information included in such statements and other ma-
terials shall be presented in a manner which is easily un-
derstood by the typical plan administrator. 
‘‘(h) EXCEPTION FOR SMALL SERVICE PROVIDERS.— 
The requirements of this section shall not apply with respect 
to any contract or arrangement for services provided with 
respect to an individual account plan for any plan year 
if— 
‘‘(1) the total annual revenue expected by the 
service provider to be received with respect to the plan 
for such plan year is less than $5,000, and 
‘‘(2) the service provider provides a written 
statement to the plan administrator that the total an-
nual revenue expected by the service provider to be re-
ceived with respect to the plan is less than $5,000.
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•HR 4213 EAH1S 
Service providers who expect to receive de minimis annual 
revenue from the plan need not provide the written state-
ment described in paragraph (2). The Secretary of Labor 
may by regulation or other guidance adjust the dollar 
amount specified in this subsection. 
‘‘(i) DEFINITIONS.—For purposes of this section— 
‘‘(1) SERVICE PROVIDER.— 
‘‘(A) IN GENERAL.—The term ‘service pro-
vider’ includes any person providing adminis-
tration, recordkeeping, consulting, investment 
management services, or investment advice to an 
applicable defined contribution plan under a 
contract or arrangement. 
‘‘(B) CONTROLLED
GROUPS
TREATED
AS 
ONE
SERVICE
PROVIDER.—All persons which 
would be treated as a single employer under sub-
section (b) or (c) of section 414 if section 
1563(a)(1) were applied— 
‘‘(i) except as provided by subpara-
graph (B), by substituting ‘more than 50 
percent’ for ‘at least 80 percent’ each place 
it appears therein, or 
‘‘(ii) 
for 
purposes 
of 
subsection 
(d)(1)(C)(i), by substituting ‘at least 20
206 
•HR 4213 EAH1S 
percent’ for ‘at least 80 percent’ each place 
it appears therein, 
shall be treated as one person for purposes of this 
section. 
‘‘(2) 
APPLICABLE
DEFINED
CONTRIBUTION 
PLAN.—The term ‘applicable defined contribution 
plan’ means any defined contribution plan described 
in clauses (iii) through (vi) of section 402(c)(8)(B). 
‘‘(3) PLAN ADMINISTRATOR.—The term ‘plan ad-
ministrator’ has the meaning given such term by sec-
tion 414(g). 
‘‘SEC. 4980K. FAILURE TO PROVIDE NOTICE TO PARTICI-
PANTS OF PLAN FEE INFORMATION. 
‘‘(a) IMPOSITION OF TAX.— 
‘‘(1) IN GENERAL.—There is hereby imposed a 
tax on each failure of a plan administrator of an ap-
plicable defined contribution plan to meet the require-
ments of paragraph (2) with respect to any partici-
pant or beneficiary. 
‘‘(2) FAILURES
DESCRIBED.—The failures de-
scribed in this paragraph are— 
‘‘(A) any failure to provide an advance no-
tice of available investment options described in 
subsection (e)(1),
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•HR 4213 EAH1S 
‘‘(B) any failure to provide an account ex-
planation described in subsection (e)(2), 
‘‘(C) any failure to provide a service pro-
vider statement referred to in subsection (e)(3), 
and 
‘‘(D) any failure to provide a notice of ma-
terial change described in subsection (e)(4). 
‘‘(b) AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The amount of the tax im-
posed by subsection (a) on any failure with respect to 
any participant or beneficiary shall be $100 for each 
day in the noncompliance period. 
‘‘(2) NONCOMPLIANCE PERIOD.—For purposes of 
paragraph (1), the noncompliance period with respect 
to the failure to provide any notice, explanation, or 
statement referred to in subsection (a)(2) with respect 
to any participant or beneficiary is the period begin-
ning on the date that such notice, explanation, or 
statement was required to be provided and ending on 
the date that such notice, explanation, or statement is 
provided or the failure is otherwise corrected. 
‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— 
‘‘(1) 
AGGREGATE
LIMITATION.—The 
total 
amount of tax imposed by this section with respect to
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•HR 4213 EAH1S 
any plan for any plan year shall not exceed an 
amount equal to the lesser of— 
‘‘(A) 10 percent of the assets of the plan, de-
termined as of the first day of such plan year, 
or 
‘‘(B) $500,000. 
‘‘(2) TAX
NOT
TO
APPLY
TO
FAILURES
COR-
RECTED WITHIN 30 DAYS.—No tax shall be imposed 
by subsection (a) on any failure if— 
‘‘(A) any person subject to liability for the 
tax under subsection (a) exercised reasonable 
diligence to meet the requirements of subsection 
(e), and 
‘‘(B) such person provides the notice, expla-
nation, or statement to which the failure relates 
during the 30-day period beginning on the date 
such person knew, or exercising reasonable dili-
gence would have known, that such failure ex-
isted. 
‘‘(3) WAIVER BY SECRETARY.—In the case of a 
failure which is due to reasonable cause and not to 
willful neglect, the Secretary shall waive part or all 
of the tax imposed by subsection (a) to the extent that 
the payment of such tax would be excessive or other-
wise inequitable relative to the failure involved.
209 
•HR 4213 EAH1S 
‘‘(d) LIABILITY FOR TAX.—The plan administrator 
shall be liable for the tax imposed by subsection (a). 
‘‘(e) DISCLOSURES
TO PARTICIPANTS
AND BENE-
FICIARIES.— 
‘‘(1) ADVANCE
NOTICE
OF
AVAILABLE
INVEST-
MENT OPTIONS.— 
‘‘(A) IN GENERAL.—The plan administrator 
of an applicable defined contribution plan shall 
provide to the participant or beneficiary notice 
of the investment options available under the 
plan before— 
‘‘(i) the earliest date provided for 
under the plan for the participant’s initial 
investment of any contribution made on be-
half of such participant, and 
‘‘(ii) the effective date of any change in 
the list of investment options available 
under the plan, unless such advance notice 
is impracticable, and in such case, as soon 
as is practicable. 
‘‘(B) INFORMATION INCLUDED IN NOTICE.— 
The notice required under subparagraph (A) 
shall— 
‘‘(i) set forth, with respect to each 
available investment option—
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•HR 4213 EAH1S 
‘‘(I) the name of the option, 
‘‘(II) a general description of the 
option’s 
investment 
objectives 
and 
principal investment strategies, prin-
cipal risk and return characteristics, 
and the name of the option’s invest-
ment manager, 
‘‘(III) whether the investment op-
tion is designed to be a comprehensive, 
stand-alone investment for retirement 
that provides varying degrees of long- 
term appreciation and capital preser-
vation through a mix of equity and 
fixed income exposures, 
‘‘(IV) the extent to which the in-
vestment option is actively managed or 
passively managed in relation to an 
index and the difference between active 
management and passive management, 
‘‘(V) where, and the manner in 
which, additional plan-specific, option- 
specific, and generally available invest-
ment information may be obtained, 
and
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•HR 4213 EAH1S 
‘‘(VI) a statement explaining that 
investment options should not be evalu-
ated solely on the basis of the charges 
for each option but should also be 
based on consideration of other key fac-
tors, including the risk level of the op-
tion, the investment objectives of the 
option, historical returns of the option, 
and the participant’s personal invest-
ment objectives, 
‘‘(ii) include a statement of the right 
under paragraph (3) of participants and 
beneficiaries to request, and a description of 
how participant or beneficiary may request, 
a copy of the statements received by the 
plan administrator under section 4980J 
with respect to the plan, and 
‘‘(iii) include the plan fee comparison 
chart described in subparagraph (C). 
‘‘(C) PLAN FEE COMPARISON CHART.— 
‘‘(i) IN GENERAL.— 
‘‘(I) IN
GENERAL.—The notice 
provided under this paragraph shall 
include a plan fee comparison chart 
consisting of a comparison of the serv-
212 
•HR 4213 EAH1S 
ice and investment charges that will or 
could be assessed against the account of 
the participant or beneficiary with re-
spect to the plan year. 
‘‘(II) EXPRESSED
AS
DOLLAR 
AMOUNT OR FORMULA.—For purposes 
of this subparagraph, such charges 
shall be provided in the form of a dol-
lar amount or as a formula (such as a 
percentage of assets), as appropriate. 
‘‘(ii) CATEGORIZATION OF CHARGES.— 
The plan fee comparison chart shall provide 
information in relation to the following cat-
egories of charges that will or could be as-
sessed against the account of the participant 
or beneficiary: 
‘‘(I) ASSET-BASED CHARGES SPE-
CIFIC TO INVESTMENT.—Charges that 
vary depending on the investment op-
tions selected by the participant or 
beneficiary, including the annual oper-
ating expenses of the investment option 
and 
investment-specific 
asset-based 
charges (such as loads, commissions, 
brokerage fees, exchange fees, redemp-
213 
•HR 4213 EAH1S 
tion fees, and surrender charges). Ex-
cept as provided by the Secretary of 
Labor in regulations under this sec-
tion, the information relating to such 
charges shall include a statement not-
ing any charges for 1 or more invest-
ment options which pay for services 
other than investment management. 
‘‘(II) RECURRING
ASSET-BASED 
CHARGES
NOT
SPECIFIC
TO
INVEST-
MENT.—Charges that are assessed as a 
percentage of the total assets in the ac-
count of the participant or beneficiary, 
regardless of the investment option se-
lected. 
‘‘(III) 
ADMINISTRATIVE
AND 
TRANSACTION-BASED
CHARGES.—Ad-
ministration 
and 
transaction-based 
charges, including fees charged to par-
ticipants to cover plan administration, 
compliance, and recordkeeping costs, 
plan loan origination fees, possible re-
demption fees, and possible surrender 
charges, that are not assessed as a per-
centage of the total assets in the ac-
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count and are either automatically de-
ducted each year or result from certain 
transactions engaged in by the partici-
pant or beneficiary. 
‘‘(IV) 
OTHER
CHARGES.—Any 
other charges which may be deducted 
from participants’ or beneficiaries’ ac-
counts and which are not described in 
subclauses (I), (II), and (III). 
‘‘(iii) FEES
AND
HISTORICAL
RE-
TURNS.—The plan fee comparison chart 
shall include— 
‘‘(I) the historical returns, net of 
fees and expenses, for the previous 
year, 5 years, and 10 years (or for the 
period since inception, if shorter) with 
respect to such investment option, and 
‘‘(II) the historical returns of an 
appropriate benchmark, index, or other 
point of comparison for each such pe-
riod. 
‘‘(D) MODEL
NOTICES.—The Secretary of 
Labor shall prescribe one or more model notices 
that may be used for purposes of satisfying the
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requirements of this paragraph, including model 
plan fee comparison charts. 
‘‘(E) ESTIMATIONS.—For purposes of pro-
viding the notice required under this paragraph, 
the plan administrator may provide a reasonable 
and representative estimate for any charges or 
percentages disclosed under subparagraph (B) or 
(C) and shall indicate whether the amount of 
any such charges or percentages disclosed is an 
estimate. 
‘‘(2) QUARTERLY BENEFIT STATEMENT.— 
‘‘(A) REQUIREMENTS.—The plan adminis-
trator shall provide to each participant and ben-
eficiary, at least once each calendar quarter, an 
explanation describing the investment options in 
which the participant’s or beneficiary’s account 
is invested as of the last day of the preceding 
quarter. Such explanation shall provide, to the 
extent applicable, the following for the preceding 
quarter: 
‘‘(i) As of the last day of the quarter, 
a statement of the different asset classes that 
the participant’s or beneficiary’s account is 
invested in and the percentage of the ac-
count allocated to each asset class.
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‘‘(ii) A statement of the starting and 
ending balance of the participant’s or bene-
ficiary’s account for such quarter. 
‘‘(iii) A statement of the total contribu-
tions made to the participant’s or bene-
ficiary’s account during the quarter and a 
separate statement of— 
‘‘(I) the amount of such contribu-
tions, and the total amount of any re-
storative payments, which were made 
by the employer during the quarter, 
and 
‘‘(II) the amount of such contribu-
tions which were made by the em-
ployee. 
‘‘(iv) A statement of the total fees and 
expenses which were directly deducted from 
the participant’s or beneficiary’s account 
during the quarter and an itemization of 
such fees and expenses. 
‘‘(v) A statement of the net returns for 
the year to date, expressed as a percentage, 
and a statement as to whether the net re-
turns include amounts described in clause 
(iv).
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‘‘(vi) With respect to each investment 
option in which the participant or bene-
ficiary was invested as of the last day of the 
quarter, the following: 
‘‘(I) A statement of the percentage 
of the participant’s or beneficiary’s ac-
count that is invested in such option as 
of the last day of such quarter. 
‘‘(II) A statement of the starting 
and ending balance of the participant’s 
or beneficiary’s account that is in-
vested in such option for such quarter. 
‘‘(III) A statement of the annual 
operating expenses of the investment 
option. 
‘‘(IV) A statement of whether the 
disclosure described in clause (iv) in-
cludes the annual operating expenses of 
the investment options of the partici-
pant or beneficiary. 
‘‘(vii) The statement described in para-
graph (1)(B)(i)(VI). 
‘‘(viii) A statement regarding how a 
participant or beneficiary may access the
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information required to be disclosed under 
paragraph (1). 
‘‘(B) MODEL
EXPLANATIONS.—The Sec-
retary of Labor shall prescribe one or more 
model explanations that may be used for pur-
poses of satisfying the requirements of this para-
graph. 
‘‘(C) DETERMINATION OF EXPENSES.—For 
purposes of subparagraph (A)(vi)(III)— 
‘‘(i) Expenses may be expressed as a 
dollar amount or as a percentage of assets 
(or a combination thereof). 
‘‘(ii) The plan administrator may pro-
vide disclosure of the expenses for the quar-
ter or may provide a reasonable and rep-
resentative estimate of such expenses and 
shall indicate any such estimate as being an 
estimate. Any such estimate shall be based 
on reasonable assumptions stated together 
with such estimate. 
‘‘(iii) To the extent that estimated ex-
penses are expressed as a percentage of as-
sets, the disclosure shall also include one of 
the following, stated in dollar amounts:
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•HR 4213 EAH1S 
‘‘(I) an estimate of the expenses 
for the quarter based on the amount 
invested in the option; or 
‘‘(II) an example describing the 
expenses that would apply during the 
quarter with respect to a hypothetical 
$10,000 investment in the option. 
‘‘(3) DISCLOSURE OF SERVICE PROVIDER STATE-
MENTS.—The plan administrator shall provide to any 
participant or beneficiary a copy of any statement re-
ceived pursuant to section 4980J within 30 days after 
receipt of a request for such a statement. 
‘‘(4) NOTICE
OF
MATERIAL
CHANGES.—In the 
case of any event or other change which causes the in-
formation included in any notice described in para-
graph (1) to become materially incorrect, the plan ad-
ministrator shall provide participants and bene-
ficiaries a written statement providing the corrected 
information not later than 30 days after the plan ad-
ministrator knows, or exercising reasonable diligence 
would have known, of such event or other change. 
‘‘(5) TIME AND MANNER OF PROVIDING NOTICES 
AND DISCLOSURES.— 
‘‘(A) IN GENERAL.—The notices described in 
paragraph (1) shall be provided at such times
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•HR 4213 EAH1S 
and in such manner as the Secretary of Labor 
may provide. Other notices and materials re-
quired to be provided under this subsection shall 
be provided in such manner as such Secretary 
may provide. 
‘‘(B) MANNER OF PRESENTATION.— 
‘‘(i) IN GENERAL.—All information in-
cluded in such notices or explanations shall 
be presented in a manner which is easily 
understood by the typical participant. 
‘‘(ii) GENERIC
EXAMPLE
OF
OPER-
ATING
EXPENSES
OF
INVESTMENT
OP-
TIONS.—The information described in para-
graphs (1)(C)(ii)(I) shall include a generic 
example describing the charges that would 
apply during an annual period with respect 
to a $10,000 investment in the investment 
option. 
‘‘(C) ANNUAL
COMPLIANCE
FOR
SMALL 
PLANS.—A plan that has fewer than 100 partici-
pants and beneficiaries as of the first day of the 
plan year may provide the explanation described 
in paragraph (2) on an annual rather than a 
quarterly basis. 
‘‘(f) DEFINITIONS.—
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‘‘(1) 
APPLICABLE
DEFINED
CONTRIBUTION 
PLAN.—The term ‘applicable defined contribution 
plan’ means the portion of any defined contribution 
plan which— 
‘‘(A) permits a participant or beneficiary to 
exercise control over assets in his or her account, 
and 
‘‘(B) is described in clauses (iii) through 
(vi) of section 402(c)(8)(B). 
‘‘(2) PLAN ADMINISTRATOR.—The term ‘plan ad-
ministrator’ has the meaning given such term by sec-
tion 414(g). 
‘‘(g) REGULATIONS.—The Secretary of Labor shall 
prescribe such regulations or other guidance as may be nec-
essary or appropriate to carry out the purposes of this sec-
tion, including regulations or other guidance which— 
‘‘(1) provide a later deadline for providing the 
notice of investment menu changes described in sub-
section (e)(4) in appropriate circumstances, and 
‘‘(2) provide guidelines, and a safe harbor, for 
the selection of an appropriate benchmark, index, or 
other point of comparison for an investment option 
under subsection (e)(1)(C)(iii)(II).’’.
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•HR 4213 EAH1S 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 43 of such Code is amended by adding at the end 
the following new items: 
‘‘Sec. 4980J. Failure to provide notice of plan fee information to plan adminis-
trators. 
‘‘Sec. 4980K. Failure to provide notice to participants of plan fee information.’’. 
SEC. 324. REGULATORY AUTHORITY AND COORDINATION. 
(a) REGULATORY
AUTHORITY.—The Secretary of 
Labor shall prescribe regulations or other guidance to the 
extent the Secretary determines necessary or appropriate to 
carry out the purposes of sections 105, 111, and 112 of the 
Employee Retirement Income Security Act of 1974 and sec-
tions 4980J and 4980K of the Internal Revenue Code of 
1986, including regulations or other guidance which— 
(1) provide safe harbor and simplified methods 
for making the allocations described in subsection 
(a)(1)(D) of such section 111 and subsection (d)(1)(D) 
of such section 4980J; and 
(2) provide special rules for the application of 
such sections to— 
(A) investments with a guaranteed rate of 
return; 
(B) investments with an insurance compo-
nent; and 
(C) employer sponsored retirement plans 
funded through an individual retirement ac-
count.
223 
•HR 4213 EAH1S 
(3) address notices with respect to investments 
provided through participant directed brokerage trad-
ing; 
(4) address the disclosure of information that is 
not proprietary to the service provider; and 
(5) provide rules to allow service providers to 
consolidate information to satisfy the requirements of 
such sections with respect to all such service pro-
viders. 
(b) 
CERTAIN
ELECTRONIC
DISCLOSURES
PER-
MITTED.—Any disclosure required under section 112 of the 
Employee Retirement Income Security Act of 1974 or sec-
tion 4980K of the Internal Revenue Code of 1986 may be 
provided through an electronic medium under such rules 
as shall be prescribed under such section by the Secretary 
of Labor not later than 1 year after the date of the enact-
ment of this Act. Such rules shall be similar to those appli-
cable under the Internal Revenue Code of 1986 with respect 
to notices to participants in pension plans. Such Secretary 
shall regularly modify such rules as appropriate to take 
into account new developments, including new forms of elec-
tronic media, and to fairly take into consideration the in-
terests of plan sponsors, service providers, and participants. 
The rules prescribed by such Secretary pursuant to this sub-
section shall provide for a method for the typical partici-
224 
•HR 4213 EAH1S 
pant or beneficiary to obtain without undue burden any 
such disclosure in writing on paper in lieu of receipt 
through an electronic medium. 
SEC. 325. EFFECTIVE DATE OF SUBTITLE. 
(a) IN GENERAL.—The amendments made by this sub-
title shall apply to plan years beginning after December 
31, 2011. 
(b) APPLICATION
OF SERVICE PROVIDER DISCLO-
SURES TO EXISTING CONTRACTS AND ARRANGEMENTS.— 
For purposes of section 111 of the Employee Retirement In-
come Security Act of 1974 and section 4980J of the Internal 
Revenue Code of 1986, any contract or arrangement to pro-
vide services to a plan which is in effect on January 1, 
2012, shall be treated as a new contract or arrangement 
entered into on such date. 
(c) SPECIAL RULE
FOR COMPLIANCE WITH SUB-
TITLE.—Until 12 months after final regulations are issued 
by the Secretary of Labor pursuant to the amendments 
made by this subtitle, a service provider or plan adminis-
trator shall be treated as having complied with such amend-
ments if such service provider or plan administrator com-
plies with a reasonable good faith interpretation of such 
amendments.
225 
•HR 4213 EAH1S 
TITLE IV—REVENUE OFFSETS 
Subtitle A—Foreign Provisions 
SEC. 401. RULES TO PREVENT SPLITTING FOREIGN TAX 
CREDITS FROM THE INCOME TO WHICH THEY 
RELATE. 
(a) IN GENERAL.—Subpart A of part III of subchapter 
N of chapter 1 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 909. SUSPENSION OF TAXES AND CREDITS UNTIL RE-
LATED INCOME TAKEN INTO ACCOUNT. 
‘‘(a) IN GENERAL.—If there is a foreign tax credit 
splitting event with respect to a foreign income tax paid 
or accrued by the taxpayer, such tax shall not be taken into 
account for purposes of this title before the taxable year in 
which the related income is taken into account under this 
chapter by the taxpayer. 
‘‘(b) SPECIAL RULES WITH RESPECT TO SECTION 902 
CORPORATIONS.—If there is a foreign tax credit splitting 
event with respect to a foreign income tax paid or accrued 
by a section 902 corporation, such tax shall not be taken 
into account— 
‘‘(1) for purposes of section 902 or 960, or 
‘‘(2) for purposes of determining earnings and 
profits under section 964(a),
226 
•HR 4213 EAH1S 
before the taxable year in which the related income is taken 
into account under this chapter by such section 902 cor-
poration or a domestic corporation which meets the owner-
ship requirements of subsection (a) or (b) of section 902 
with respect to such section 902 corporation. 
‘‘(c) SPECIAL RULES.—For purposes of this section— 
‘‘(1) APPLICATION TO PARTNERSHIPS, ETC.—In 
the case of a partnership, subsections (a) and (b) shall 
be applied at the partner level. Except as otherwise 
provided by the Secretary, a rule similar to the rule 
of the preceding sentence shall apply in the case of 
any S corporation or trust. 
‘‘(2) TREATMENT
OF
FOREIGN
TAXES
AFTER 
SUSPENSION.—In the case of any foreign income tax 
not taken into account by reason of subsection (a) or 
(b), except as otherwise provided by the Secretary, 
such tax shall be so taken into account in the taxable 
year referred to in such subsection (other than for 
purposes of section 986(a)) as a foreign income tax 
paid or accrued in such taxable year. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) FOREIGN TAX CREDIT SPLITTING EVENT.— 
There is a foreign tax credit splitting event with re-
spect to a foreign income tax if the related income is
227 
•HR 4213 EAH1S 
(or will be) taken into account under this chapter by 
a covered person. 
‘‘(2) FOREIGN INCOME TAX.—The term ‘foreign 
income tax’ means any income, war profits, or excess 
profits tax paid or accrued to any foreign country or 
to any possession of the United States. 
‘‘(3) RELATED INCOME.—The term ‘related in-
come’ means, with respect to any portion of any for-
eign income tax, the income (or, as appropriate, earn-
ings and profits) to which such portion of foreign in-
come tax relates. 
‘‘(4) COVERED PERSON.—The term ‘covered per-
son’ means, with respect to any person who pays or 
accrues a foreign income tax (hereafter in this para-
graph referred to as the ‘payor’)— 
‘‘(A) any entity in which the payor holds, 
directly or indirectly, at least a 10 percent own-
ership interest (determined by vote or value), 
‘‘(B) any person which holds, directly or in-
directly, at least a 10 percent ownership interest 
(determined by vote or value) in the payor, 
‘‘(C) any person which bears a relationship 
to the payor described in section 267(b) or 
707(b), and
228 
•HR 4213 EAH1S 
‘‘(D) any other person specified by the Sec-
retary for purposes of this paragraph. 
‘‘(5) SECTION 902 CORPORATION.—The term ‘sec-
tion 902 corporation’ means any foreign corporation 
with respect to which one or more domestic corpora-
tions meets the ownership requirements of subsection 
(a) or (b) of section 902. 
‘‘(e) REGULATIONS.—The Secretary may issue such 
regulations or other guidance as is necessary or appropriate 
to carry out the purposes of this section, including regula-
tions or other guidance which provides— 
‘‘(1) appropriate exceptions from the provisions 
of this section, and 
‘‘(2) for the proper application of this section 
with respect to hybrid instruments.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
subpart A of part III of subchapter N of chapter 1 is 
amended by adding at the end the following new item: 
‘‘Sec. 909. Suspension of taxes and credits until related income taken into ac-
count.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to— 
(1) foreign income taxes (as defined in section 
909(d) of the Internal Revenue Code of 1986, as 
added by this section) paid or accrued after May 20, 
2010; and
229 
•HR 4213 EAH1S 
(2) foreign income taxes (as so defined) paid or 
accrued by a section 902 corporation (as so defined) 
on or before such date (and not deemed paid under 
section 902(a) or 960 of such Code on or before such 
date), but only for purposes of applying sections 902 
and 960 with respect to periods after such date. 
Section 909(b)(2) of the Internal Revenue Code of 1986, as 
added by this section, shall not apply to foreign income 
taxes described in paragraph (2). 
SEC. 402. DENIAL OF FOREIGN TAX CREDIT WITH RESPECT 
TO 
FOREIGN 
INCOME 
NOT 
SUBJECT 
TO 
UNITED STATES TAXATION BY REASON OF 
COVERED ASSET ACQUISITIONS. 
(a) IN GENERAL.—Section 901 is amended by redesig-
nating subsection (m) as subsection (n) and by inserting 
after subsection (l) the following new subsection: 
‘‘(m) DENIAL OF FOREIGN TAX CREDIT WITH RE-
SPECT TO FOREIGN INCOME NOT SUBJECT TO UNITED 
STATES TAXATION BY REASON OF COVERED ASSET ACQUI-
SITIONS.— 
‘‘(1) IN GENERAL.—In the case of a covered asset 
acquisition, the disqualified portion of any foreign in-
come tax determined with respect to the income or 
gain attributable to the relevant foreign assets—
230 
•HR 4213 EAH1S 
‘‘(A) shall not be taken into account in de-
termining the credit allowed under subsection 
(a), and 
‘‘(B) in the case of a foreign income tax 
paid by a section 902 corporation (as defined in 
section 909(d)(5)), shall not be taken into ac-
count for purposes of section 902 or 960. 
‘‘(2) COVERED
ASSET
ACQUISITION.—For pur-
poses of this section, the term ‘covered asset acquisi-
tion’ means— 
‘‘(A) a qualified stock purchase (as defined 
in section 338(d)(3)) to which section 338(a) ap-
plies, 
‘‘(B) any transaction which— 
‘‘(i) is treated as an acquisition of as-
sets for purposes of this chapter, and 
‘‘(ii) is treated as the acquisition of 
stock of a corporation (or is disregarded) for 
purposes of the foreign income taxes of the 
relevant jurisdiction, 
‘‘(C) any acquisition of an interest in a 
partnership which has an election in effect under 
section 754, and 
‘‘(D) to the extent provided by the Sec-
retary, any other similar transaction.
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•HR 4213 EAH1S 
‘‘(3) DISQUALIFIED PORTION.—For purposes of 
this section— 
‘‘(A) IN GENERAL.—The term ‘disqualified 
portion’ means, with respect to any covered asset 
acquisition, for any taxable year, the ratio (ex-
pressed as a percentage) of— 
‘‘(i) the aggregate basis differences (but 
not below zero) allocable to such taxable 
year under subparagraph (B) with respect 
to all relevant foreign assets, divided by 
‘‘(ii) the income on which the foreign 
income tax referred to in paragraph (1) is 
determined (or, if the taxpayer fails to sub-
stantiate such income to the satisfaction of 
the Secretary, such income shall be deter-
mined by dividing the amount of such for-
eign income tax by the highest marginal tax 
rate applicable to such income in the rel-
evant jurisdiction). 
‘‘(B) ALLOCATION OF BASIS DIFFERENCE.— 
For purposes of subparagraph (A)(i)— 
‘‘(i) IN GENERAL.—The basis difference 
with respect to any relevant foreign asset 
shall be allocated to taxable years using the
232 
•HR 4213 EAH1S 
applicable cost recovery method under this 
chapter. 
‘‘(ii) SPECIAL RULE FOR DISPOSITION 
OF ASSETS.—Except as otherwise provided 
by the Secretary, in the case of the disposi-
tion of any relevant foreign asset— 
‘‘(I) the basis difference allocated 
to the taxable year which includes the 
date of such disposition shall be the ex-
cess of the basis difference with respect 
to such asset over the aggregate basis 
difference with respect to such asset 
which has been allocated under clause 
(i) to all prior taxable years, and 
‘‘(II) no basis difference with re-
spect to such asset shall be allocated 
under clause (i) to any taxable year 
thereafter. 
‘‘(C) BASIS DIFFERENCE.— 
‘‘(i) IN GENERAL.—The term ‘basis dif-
ference’ means, with respect to any relevant 
foreign asset, the excess of— 
‘‘(I) the adjusted basis of such 
asset immediately after the covered 
asset acquisition, over
233 
•HR 4213 EAH1S 
‘‘(II) the adjusted basis of such 
asset immediately before the covered 
asset acquisition. 
‘‘(ii) BUILT-IN LOSS ASSETS.—In the 
case of a relevant foreign asset with respect 
to which the amount described in clause 
(i)(II) exceeds the amount described in 
clause (i)(I), such excess shall be taken into 
account under this subsection as a basis dif-
ference of a negative amount. 
‘‘(iii) SPECIAL RULE FOR SECTION 338 
ELECTIONS.—In the case of a covered asset 
acquisition described in paragraph (2)(A), 
the covered asset acquisition shall be treated 
for purposes of this subparagraph as occur-
ring at the close of the acquisition date (as 
defined in section 338(h)(2)). 
‘‘(4) RELEVANT FOREIGN ASSETS.—For purposes 
of this section, the term ‘relevant foreign asset’ means, 
with respect to any covered asset acquisition, any 
asset (including any goodwill, going concern value, or 
other intangible) with respect to such acquisition if 
income, deduction, gain, or loss attributable to such 
asset is taken into account in determining the foreign 
income tax referred to in paragraph (1).
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•HR 4213 EAH1S 
‘‘(5) FOREIGN
INCOME
TAX.—For purposes of 
this section, the term ‘foreign income tax’ means any 
income, war profits, or excess profits tax paid or ac-
crued to any foreign country or to any possession of 
the United States. 
‘‘(6) TAXES ALLOWED AS A DEDUCTION, ETC.— 
Sections 275 and 78 shall not apply to any tax which 
is not allowable as a credit under subsection (a) by 
reason of this subsection. 
‘‘(7) REGULATIONS.—The Secretary may issue 
such regulations or other guidance as is necessary or 
appropriate to carry out the purposes of this sub-
section, including to exempt from the application of 
this subsection certain covered asset acquisitions, and 
relevant foreign assets with respect to which the basis 
difference is de minimis.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to covered asset acquisitions (as defined in sec-
tion 901(m)(2) of the Internal Revenue Code of 1986, 
as added by this section) after— 
(A) May 20, 2010, if the transferor and the 
transferee are related; and
235 
•HR 4213 EAH1S 
(B) the date of the enactment of this Act in 
any other case. 
(2) TRANSITION RULE.—The amendments made 
by this section shall not apply to any covered asset 
acquisition (as so defined) with respect to which the 
transferor and the transferee are not related if such 
acquisition is— 
(A) made pursuant to a written agreement 
which was binding on May 20, 2010, and at all 
times thereafter, 
(B) described in a ruling request submitted 
to the Internal Revenue Service on or before such 
date; or 
(C) described on or before such date in a 
public announcement or in a filing with the Se-
curities and Exchange Commission. 
(3) RELATED PERSONS.—For purposes of this 
subsection, a person shall be treated as related to an-
other person if the relationship between such persons 
is described in section 267 or 707(b) of the Internal 
Revenue Code of 1986.
400 
•HR 4213 EAH1S 
(2) PAYMENT OF AMOUNTS.—U.S. Customs and 
Border Protection shall make payments described in 
paragraph (1) to eligible manufacturers not later 
than 30 days after such transfer of amounts from the 
general fund of the Treasury of the United States to 
the Wool Apparel Manufacturers Trust Fund. The 
Secretary of Commerce shall promptly provide grants 
described in paragraph (1) to eligible manufacturers 
after such transfer of amounts from the general fund 
of the Treasury of the United States to the Wool Ap-
parel Manufacturers Trust Fund. 
(c) RULE OF CONSTRUCTION.—The amendment made 
by subsection (a) shall not be construed to affect the avail-
ability of amounts transferred to the Wool Apparel Manu-
facturers Trust Fund before the date of the enactment of 
this Act. 
SEC. 618. DEPARTMENT OF COMMERCE STUDY. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary of Commerce shall report to Con-
gress detailing— 
(1) the pattern of job loss in the New England, 
Mid-Atlantic, and Midwest States over the past 20 
years; 
(2) the role of the off-shoring of manufacturing 
jobs in overall job loss in the regions; and