which the failure occurred or any 
other participating employer in 
such plan) shall, except to the ex-
tent provided in such guidance, 
be liable for any liabilities with 
respect to such plan attributable 
to employees of the participating 
employer. 
The Secretary shall take into account 
under subclause (II) whether the failure of 
an employer or pooled plan provider to 
provide any disclosures or other informa-
tion, or to take any other action, necessary 
to administer a plan or to allow a plan to 
meet requirements described in subpara-
graph (A)(i)(II) has continued over a pe-
riod of time that clearly demonstrates a 
lack of commitment to compliance. The 
Secretary may waive the requirements of 
subclause (II)(aa) in appropriate cir-
cumstances if the Secretary determines it 
is in the best interests of the employees of 
the participating employer described in 
such clause to retain the assets in the plan 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
with respect to which the employer’s fail-
ure occurred. 
‘‘(ii) PROSPECTIVE
APPLICATION.— 
Any guidance issued by the Secretary 
under this subparagraph shall not apply to 
any action or failure occurring before the 
issuance of such guidance. 
‘‘(D) AGGREGATION RULES.—For purposes 
of this paragraph— 
‘‘(i) IN
GENERAL.—In determining 
whether a person meets the requirements 
of this paragraph to be a pooled plan pro-
vider with respect to any plan, all persons 
who are members of the same controlled 
group and who perform services for the 
plan shall be treated as one person. 
‘‘(ii) MEMBERS OF COMMON GROUP.— 
Persons shall be treated as members of the 
same controlled group if such persons are 
treated as a single employer under sub-
section (c) or (d) of section 210.’’. 
(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 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘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)— 
(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) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to years beginning after De-
cember 31, 2021. 
(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 re-
quirement applicable under the Internal Revenue 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
Code of 1986 with respect to one employer (and its 
employees) in a multiple employer plan. 
SEC. 102. POOLED EMPLOYER AND MULTIPLE EMPLOYER 
PLAN REPORTING. 
(a) ADDITIONAL INFORMATION.—Section 103 of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1023) is amended— 
(1) in subsection (a)(1)(B), by striking ‘‘appli-
cable subsections (d), (e), and (f)’’ and inserting 
‘‘applicable subsections (d), (e), (f), and (g)’’; and 
(2) by amending subsection (g) to read as fol-
lows: 
‘‘(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 participating employers and a good faith esti-
mate of the percentage of total contributions made 
by such participating employers during the plan 
year; and 
‘‘(2) with respect to a pooled employer plan, the 
identifying information for the person designated 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
under the terms of the plan as the pooled plan pro-
vider.’’. 
(b) SIMPLIFIED ANNUAL REPORTS.—Section 104(a) 
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1024(a)) is amended by striking 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 an-
nual 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 participating employer has 100 
or more participants covered by the plan.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to annual reports for plan years 
beginning after December 31, 2021. 
SEC. 103. REMOVAL OF 10 PERCENT CAP FROM AUTOMATIC 
ENROLLMENT 
SAFE 
HARBOR 
AFTER 
1ST 
PLAN YEAR. 
(a) 
IN
GENERAL.—Clause 
(iii) 
of 
section 
401(k)(13)(C) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘, does not exceed 10 percent, and 
is at least’’ and inserting ‘‘and is’’. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
(b) CONFORMING AMENDMENTS.— 
(1) Subclause (I) of section 401(k)(13)(C)(iii) 
of the Internal Revenue Code of 1986 is amended by 
striking ‘‘3 percent’’ and inserting ‘‘at least 3 per-
cent, but not greater than 10 percent,’’. 
(2) Subclause (II) of section 401(k)(13)(C)(iii) 
of such Code is amended by striking ‘‘4 percent’’ 
and inserting ‘‘at least 4 percent’’. 
(3) Subclause (III) of section 401(k)(13)(C)(iii) 
of such Code is amended by striking ‘‘5 percent’’ 
and inserting ‘‘at least 5 percent’’. 
(4) Subclause (IV) of section 401(k)(13)(C)(iii) 
of such Code is amended by striking ‘‘6 percent’’ 
and inserting ‘‘at least 6 percent’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2018. 
SEC. 104. 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— 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
subparagraph (C) which the employer is 
required to make under the arrangement 
for the plan year with respect to any em-
ployee 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 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a plan may be amend-
ed after the beginning of a plan year to 
provide that the requirements of subpara-
graph (D)(i)(II) shall apply to the arrange-
ment 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. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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 sub-
paragraph (D)(i)(I) or paragraph (12)(B) 
applied 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 em-
ployer is required to make under the ar-
rangement for the plan year with respect 
to any employee is an amount equal to at 
least 4 percent of the employee’s com-
pensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2018. 
SEC. 105. INCREASE IN CREDIT LIMITATION FOR SMALL 
EMPLOYER 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: 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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 
December 31, 2018. 
SEC. 106. SMALL EMPLOYER AUTOMATIC ENROLLMENT 
CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘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-en-
rollment credit determined under this section for any tax-
able 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 
contribution 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 
taxable year with respect to an employer shall be 
treated as occurring within the credit period unless 
the arrangement described in paragraph (1) is in-
cluded in the plan for such year. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 
section, 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 
Revenue 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 add-
ing 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 in-
serting after the item relating to section 45R 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 
December 31, 2018. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
SEC. 107. 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 add-
ing at the end the following: ‘‘The term ‘compensation’ 
shall include any amount paid to an individual to aid the 
individual in the pursuit of graduate or postdoctoral 
study.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
SEC. 108. 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 
section 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), respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made for taxable 
years beginning after December 31, 2018. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
SEC. 109. EXPANSION OF IRA OWNERSHIP OF S CORPORA-
TION BANK STOCK. 
(a) IN GENERAL.—Section 1361(c)(2)(A)(vi) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘, 
but only to the extent of the stock held by such trust in 
such bank or company as of the date of the enactment 
of this clause’’. 
(b) SALE OF STOCK IN IRA RELATING TO S COR-
PORATION
ELECTION
EXEMPT
FROM
PROHIBITED 
TRANSACTION RULES.—Section 4975(d)(16) of the Inter-
nal Revenue Code of 1986 is amended by striking sub-
paragraph (B) and by redesignating subparagraphs (C), 
(D), (E), and (F) as subparagraphs (B), (C), (D) and (E), 
respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2018. 
SEC. 110. 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: 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(D) PROHIBITION
OF
LOANS
THROUGH 
CREDIT CARDS AND OTHER SIMILAR ARRANGE-
MENTS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), subparagraph (A) shall 
not apply to any loan which is made 
through the use of any credit card or any 
other similar arrangement. 
‘‘(ii) EXCEPTION FOR EXISTING CRED-
IT
CARD
SYSTEMS.—Clause (i) shall not 
apply to any loan to the extent such loan 
is provided through an electronic card sys-
tem which, as of September 21, 2016, was 
available for use to provide loans under 
qualified employer plans. 
‘‘(iii) DISALLOWED TRANSACTIONS.— 
If any card through which a loan is pro-
vided under the exception of clause (ii) is 
used for any transaction— 
‘‘(I) in an amount equal to or 
less than $1,000, or 
‘‘(II) with or on the premises of 
any establishment described in clause 
(i), 
(ii), 
or 
(iii) 
of 
section 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
408(a)(12)(A) of the Social Security 
Act, 
the amount of such transaction shall be 
treated as having been received by the in-
dividual as a distribution in accordance 
with subparagraph (A) of paragraph (1). 
‘‘(iv) 
COST-OF-LIVING
ADJUST-
MENT.—In the case of any loan made dur-
ing a plan year beginning after December 
31, 2019, the $1,000 amount under clause 
(iii)(I) shall be increased by an amount 
equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the 
plan year begins, determined by sub-
stituting ‘calendar year 2018’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
Any 
increase 
determined 
under the preceding sentence shall be 
rounded to the next lowest multiple of 
$50.’’. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to plan years beginning after 
December 31, 2018. 
(c) STUDY.—The Comptroller General of the United 
States shall, not later than the date which is 1 year after 
the date of the enactment of this Act— 
(1) study the impact of loans from qualified 
employer plans (as defined in section 72(p)(4)(A) of 
the Internal Revenue Code of 1986) provided 
through credit cards and similar arrangements on 
the use of retirement savings for purposes other 
than funding retirement; and 
(2) report the results of such study to the Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representa-
tives. 
If the study under paragraph (1) determines that such 
loans, after implementation of the restrictions imposed by 
the amendment made by subsection (a), result in greater 
usage of retirement savings for purposes other than fund-
ing retirement than loans made by other means, the report 
under paragraph (2) shall include recommendations to re-
duce such result. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
SEC. 111. PORTABILITY OF LIFETIME INCOME OPTIONS. 
(a) IN GENERAL.—Subsection (a) of section 401 of 
the Internal Revenue Code of 1986 is amended by insert-
ing 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— 
‘‘(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 invest-
ment option under the plan. 
‘‘(B) DEFINITIONS.—For purposes of this 
subsection— 
‘‘(i) the term ‘qualified distribution’ 
means a direct trustee-to-trustee transfer 
described in paragraph (31)(A) to an eligi-
ble retirement plan (as defined in section 
402(c)(8)(B)), 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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-
tract or other arrangement offered 
under the plan (or under another eli-
gible retirement plan (as so defined), 
if paid by means of a direct trustee- 
to-trustee transfer described in para-
graph (31)(A) to such other eligible 
retirement plan), 
‘‘(iii) the term ‘lifetime income fea-
ture’ 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 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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 em-
ployee and the employee’s designated 
beneficiary, and 
‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
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 in-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
come investment (as defined in sub-
section (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 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-
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 
distributed only in the form of a qualified 
distribution (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-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
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 
income investment may no longer be held 
as an investment option under the con-
tract, 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 
striking ‘‘if—’’ and all that follows and inserting ‘‘if 
the amounts are to be invested in regulated invest-
ment company stock to be held in that custodial ac-
count, and under the custodial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
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)), 
‘‘(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 in-
come 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 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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 inserting ‘‘or’’ at the end of clause (iii), and by 
adding 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 investment option under the plan,’’. 
(2) DISTRIBUTION REQUIREMENT.—Paragraph 
(1) of section 457(d) of such Code is amended by 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
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 distribu-
tion annuity contract (as defined in section 
401(a)(38)(B)(iv)).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2018. 
SEC. 112. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
(a) IN GENERAL.—Section 403(b)(7) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(D) TREATMENT
OF
CUSTODIAL
AC-
COUNT UPON PLAN TERMINATION.— 
‘‘(i) IN GENERAL.—If— 
‘‘(I) an employer terminates the 
plan under which amounts are con-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
tributed to a custodial account under 
subparagraph (A), and 
‘‘(II) the person holding the as-
sets of the account has demonstrated 
to the satisfaction of the Secretary 
under section 408(a)(2) that the per-
son is qualified to be a trustee of an 
individual retirement plan, 
then, as of the date of the termination, the 
custodial account shall be deemed to be an 
individual retirement plan for purposes of 
this title. 
‘‘(ii) TREATMENT AS ROTH IRA.—Any 
custodial account treated as an individual 
retirement plan under clause (i) shall be 
treated as a Roth IRA only if the custodial 
account was a designated Roth account.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan terminations occurring 
after December 31, 2018. 
SEC. 113. 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 amend-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
ed by inserting ‘‘(including an employee described in sec-
tion 414(e)(3)(B))’’ after ‘‘employee described in para-
graph (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. 
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 
AMENDMENTS.— 
‘‘(1) CERTAIN
RETROACTIVE
CHANGES
IN 
PLAN.—A stock bonus’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) ADOPTION
OF
PLAN.—If an employer 
adopts a stock bonus, pension, profit-sharing, or an-
nuity plan after the close of a taxable year but be-
fore the time prescribed by law for filing the return 
of the employer for the taxable year (including ex-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
tensions 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 
beginning after December 31, 2018. 
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 returns 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 described in subsection (c) may file a single aggre-
gated annual return or report satisfying the requirements 
of both such sections. 
(b) ADMINISTRATIVE
REQUIREMENTS.—In devel-
oping 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 Sec-
retaries determine is necessary or appropriate for the en-
forcement and administration of the Internal Revenue 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
Code of 1986 and the Employee Retirement Income Secu-
rity Act of 1974. 
(c) PLANS DESCRIBED.—A group of plans is de-
scribed 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 In-
ternal Revenue Code of 1986); 
(2) have— 
(A) the same trustee (as described in sec-
tion 403(a) of such Act (29 U.S.C. 1103(a))); 
(B) the same one or more named fidu-
ciaries (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. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
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 func-
tions 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 FIL-
ING
OF
RETURNS
FOR
DEFERRED
COMPENSATION 
PLANS.— 
(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 COMPENSA-
TION PLANS.—For purposes of applying the numer-
ical limitation under paragraph (2)(A) to any return 
required 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 
December 31, 2018. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
(e) EFFECTIVE DATE.—The modification required by 
subsection (a) shall be implemented not later than Janu-
ary 1, 2021, and shall apply to returns and reports for 
plan years beginning after December 31, 2020. 
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 
(3) by inserting at the end the following: 
‘‘(iii) the lifetime income disclosure 
described 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.— 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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
BENE-
FITS ACCRUED.—For purposes of this 
subparagraph, the term ‘lifetime in-
come stream equivalent of the total 
benefits accrued’ means the amount of 
monthly payments the participant or 
beneficiary would receive if the total 
accrued 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 
Secretary. 
‘‘(III) 
LIFETIME
INCOME 
STREAMS.—The 
lifetime 
income 
streams described in this subclause 
are a qualified joint and survivor an-
nuity (as defined in section 205(d)), 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
based on assumptions specified in 
rules prescribed by the Secretary, in-
cluding the assumption that the par-
ticipant or beneficiary has a spouse of 
equal age, and a single life annuity. 
Such lifetime income streams may 
have a term certain or other features 
to the extent permitted under rules 
prescribed by the Secretary. 
‘‘(ii) MODEL DISCLOSURE.—Not later 
than 1 year after the date of the enact-
ment of the Retirement Enhancement and 
Savings Act of 2019, the Secretary 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 
numerous factors and may vary sub-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
stantially from the lifetime income 
stream equivalent 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 con-
siders appropriate. 
‘‘(iii) ASSUMPTIONS
AND
RULES.— 
Not later than 1 year after the date of the 
enactment of the Retirement Enhancement 
and Savings 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 sub-
clause (I), the Secretary may prescribe a 
single set of specific assumptions (in which 
case the Secretary may issue tables or fac-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
tors 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 de-
scribed in clause (i)(III), the assumptions 
prescribed under subclause (I) shall, to the 
extent appropriate, permit administrators 
of individual account plans to use the 
amounts payable under such lifetime in-
come stream as a lifetime income stream 
equivalent. 
‘‘(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). 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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).’’. 
SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 
LIFETIME INCOME PROVIDER. 
Section 404 of the Employee Retirement Income Se-
curity 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 selec-
tion of an insurer for a guaranteed retirement in-
come contract, the requirements of subsection 
(a)(1)(B) will be deemed to be satisfied if a fidu-
ciary— 
‘‘(A) engages in an objective, thorough, 
and analytical search for the purpose of identi-
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS
fying insurers from which to purchase such con-
tracts; 
‘‘(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 in-
surer in relation to the benefits and prod-
uct features of the contract and adminis-
trative services to be provided under such 
contract; and 
‘‘(C) on the basis of such consideration, 
concludes that— 
‘‘(i) at the time of the selection, the 
insurer is financially capable of satisfying 
its obligations under the guaranteed retire-
ment income contract; and 
‘‘(ii) the relative cost of the selected 
guaranteed retirement income contract as 
described in subparagraph (B)(ii) is rea-
sonable. 
VerDate Sep 11 2014 
01:39 Feb 16, 2019
Jkt 089200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H1007.IH
H1007
pamtmann on DSKBFK8HB2PROD with BILLS