I 
114TH CONGRESS 
2D SESSION 
H. R. 5761 
To amend the Internal Revenue Code of 1986 to permit penalty-free in- 
service retirement distributions for employees serving as mentors. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2016 
Mr. BERA (for himself and Mr. REED) introduced the following bill; which was 
referred to the Committee on Ways and Means, and in addition to the 
Committee on Education and the Workforce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to permit 
penalty-free in-service retirement distributions for em-
ployees serving as mentors. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Train the Future Act’’. 
SEC. 2. ENCOURAGING MENTORS TO TRAIN THE FUTURE. 
(a) EARLY DISTRIBUTIONS FROM QUALIFIED RE-
TIREMENT PLANS.—Section 72(t)(2) of the Internal Rev-
enue Code of 1986 is amended— 
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(1) in subparagraph (A)— 
(A) by striking ‘‘or’’ at the end of clause 
(vii); 
(B) by striking the period at the end of 
clause (viii) and inserting ‘‘, or’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(ix) made to an employee who is 
serving as a mentor.’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(H) DISTRIBUTIONS TO MENTORS.—For 
purposes of this paragraph, the term ‘mentor’ 
means an individual who— 
‘‘(i) has attained 55 years of age, 
‘‘(ii) is not separated from their em-
ployment with a company, corporation, or 
institution of higher education, 
‘‘(iii) in accordance with such require-
ments and standards as the Secretary de-
termines to be necessary, has substantially 
reduced their hours of employment with 
their employer, with the individual to be 
engaged in mentoring activities described 
in clause (iv) for not less than 20 percent 
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of the hours of employment after such re-
duction, and 
‘‘(iv) is responsible for the training 
and education of employees or students in 
an area of expertise for which the indi-
vidual has a professional credential, certifi-
cate, or degree.’’. 
(b) DISTRIBUTIONS
DURING
WORKING
RETIRE-
MENT.—Paragraph (36) of section 401(a) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(36) DISTRIBUTIONS
DURING
WORKING
RE-
TIREMENT.— 
‘‘(A) IN GENERAL.—A trust forming part 
of a pension plan shall not be treated as failing 
to constitute a qualified trust under this section 
solely because the plan provides that a distribu-
tion may be made from such trust to an em-
ployee who— 
‘‘(i) has attained age 62 and who is 
not separated from employment at the 
time of such distribution, or 
‘‘(ii) subject to subparagraph (B), is 
serving as a mentor (as such term is de-
fined in section 72(t)(2)(H)). 
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‘‘(B) LIMITATION ON DISTRIBUTIONS TO 
MENTORS.—For 
purposes 
of 
subparagraph 
(A)(ii), the amount of the distribution made to 
an employee who is serving as a mentor shall 
not be greater than the amount equal to the 
product obtained by multiplying— 
‘‘(i) the amount of the distribution 
that would have been payable to the em-
ployee if such employee had separated 
from employment instead of reducing their 
hours of employment with their employer 
and engaging in mentoring activities, in ac-
cordance with clauses (iii) and (iv) of sec-
tion 72(t)(2)(H), by 
‘‘(ii) the percentage equal to the 
quotient obtained by dividing— 
‘‘(I) the sum of— 
‘‘(aa) the number of hours 
per pay period by which the em-
ployee’s hours of employment are 
reduced, and 
‘‘(bb) the number of hours 
of employment that such em-
ployee is engaging in mentoring 
activities, by 
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‘‘(II) the total number of hours 
per pay period worked by the em-
ployee before such reduction in hours 
of employment.’’. 
(c) ERISA.—Subparagraph (A) of section 3(2) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(2)) is amended by striking the period at the 
end and inserting the following: ‘‘, or solely because such 
distribution is made to an employee who is serving as a 
mentor (as such term is defined in section 72(t)(2)(H) of 
the Internal Revenue Code of 1986).’’. 
(d) APPLICATION.—The amendments made by this 
section shall apply to distributions made in taxable years 
beginning after December 31, 2015. 
Æ 
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