‘‘(B) For purposes of this paragraph, the term ‘eligi-
ble small multiple employer plan’ means, with respect to 
any plan year— 
‘‘(i) a qualified multiple employer plan, as de-
fined in section 3(2)(C)(ii), or 
‘‘(ii) any other plan described in section 413(c) 
of the Internal Revenue Code of 1986 that satisfies 
the requirements of clause (v) of section 3(2)(C).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after December 
31, 2015. 
SEC. 4. SECURE DEFERRAL ARRANGEMENTS. 
(a) IN GENERAL.—Subsection (k) of section 401 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(14) ALTERNATIVE METHOD FOR SECURE DE-
FERRAL ARRANGEMENTS TO MEET NONDISCRIMINA-
TION REQUIREMENTS.— 
‘‘(A) IN GENERAL.—A secure deferral ar-
rangement shall be treated as meeting the re-
quirements of paragraph (3)(A)(ii). 
‘‘(B) 
SECURE
DEFERRAL
ARRANGE-
MENT.—For purposes of this paragraph, the 
term ‘secure deferral arrangement’ means any 
cash or deferred arrangement which meets the 
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requirements of subparagraphs (C), (D), and 
(E) of paragraph (13), except as modified by 
this paragraph. 
‘‘(C) QUALIFIED PERCENTAGE.—For pur-
poses of this paragraph, with respect to any 
employee, 
the 
term 
‘qualified 
percentage’ 
means, in lieu of the meaning given such term 
in paragraph (13)(C)(iii), any percentage deter-
mined under the arrangement if such percent-
age is applied uniformly and is— 
‘‘(i) at least 6 percent, but not greater 
than 10 percent, during the period ending 
on the last day of the first plan year which 
begins after the date on which the first 
elective contribution described in para-
graph (13)(C)(i) is made with respect to 
such employee, 
‘‘(ii) at least 8 percent during the 
first plan year following the plan year de-
scribed in clause (i), and 
‘‘(iii) at least 10 percent during any 
subsequent plan year. 
‘‘(D) MATCHING CONTRIBUTIONS.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, an arrangement shall be 
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treated as having met the requirements of 
paragraph (13)(D)(i) if and only if the em-
ployer makes matching contributions on 
behalf of each employee who is not a highly 
compensated employee in an amount equal 
to the sum of— 
‘‘(I) 100 percent of the elective 
contributions of the employee to the 
extent that such contributions do not 
exceed 1 percent of compensation, 
‘‘(II) 50 percent of so much of 
such contributions as exceed 1 percent 
but do not exceed 6 percent of com-
pensation, plus 
‘‘(III) 25 percent of so much of 
such contributions as exceed 6 percent 
but do not exceed 10 percent of com-
pensation. 
‘‘(ii) APPLICATION
OF
RULES
FOR 
MATCHING CONTRIBUTIONS.—The rules of 
clause (ii) of paragraph (12)(B) and 
clauses (iii) and (iv) of paragraph (13)(D) 
shall apply for purposes of clause (i) but 
the rule of clause (iii) of paragraph 
(12)(B) shall not apply for such purposes. 
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The rate of matching contribution for each 
incremental deferral must be at least as 
high as the rate specified in clause (i), and 
may be higher, so long as such rate does 
not increase as an employee’s rate of elec-
tive contributions increases.’’. 
(b) MATCHING CONTRIBUTIONS
AND EMPLOYEE 
CONTRIBUTIONS.—Subsection (m) of section 401 of the 
Internal Revenue Code of 1986 is amended by redesig-
nating paragraph (13) as paragraph (14) and by inserting 
after paragraph (12) the following new paragraph: 
‘‘(13) ALTERNATIVE METHOD FOR SECURE DE-
FERRAL
ARRANGEMENTS.—A defined contribution 
plan shall be treated as meeting the requirements of 
paragraph (2) with respect to matching contribu-
tions and employee contributions if the plan— 
‘‘(A) is a secure deferral arrangement (as 
defined in subsection (k)(14)), 
‘‘(B) meets the requirements of clauses (ii) 
and (iii) of paragraph (11)(B), and 
‘‘(C) provides that matching contributions 
on behalf of any employee may not be made 
with respect to an employee’s contributions or 
elective deferrals in excess of 10 percent of the 
employee’s compensation.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2015. 
SEC. 5. CREDIT FOR EMPLOYERS WITH RESPECT TO MODI-
FIED SAFE HARBOR REQUIREMENTS. 
(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: 
‘‘SEC. 45S. CREDIT FOR SMALL EMPLOYERS WITH RESPECT 
TO MODIFIED SAFE HARBOR REQUIREMENTS 
FOR AUTOMATIC CONTRIBUTION ARRANGE-
MENTS. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of a small employer, the safe harbor adoption 
credit determined under this section for any taxable year 
is the amount equal to the total of the employer’s match-
ing contributions under section 401(k)(14)(D) during the 
taxable year on behalf of employees who are not highly 
compensated employees, subject to the limitations of sub-
section (b). 
‘‘(b) LIMITATIONS.— 
‘‘(1) LIMITATION
WITH
RESPECT
TO
COM-
PENSATION.—The credit determined under sub-
section (a) with respect to contributions made on be-
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emcdonald on DSK67QTVN1PROD with BILLS
half of an employee who is not a highly compensated 
employee shall not exceed 2 percent of the com-
pensation of such employee for the taxable year. 
‘‘(2) LIMITATION WITH RESPECT TO YEARS OF 
PARTICIPATION.—Credit shall be determined under 
subsection (a) with respect to contributions made on 
behalf of an employee who is not a highly com-
pensated employee only during the first 5 years such 
employee participates in the qualified automatic con-
tribution arrangement. 
‘‘(c) DEFINITIONS.— 
‘‘(1) IN GENERAL.—Any term used in this sec-
tion which is also used in section 401(k)(14) shall 
have the same meaning as when used in such sec-
tion. 
‘‘(2) SMALL EMPLOYER.—The term ‘small em-
ployer’ means an eligible employer (as defined in 
section 408(p)(2)(C)(i)). 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowable under this title for any contribution with 
respect to which a credit is allowed under this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 is amended— 
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(1) by striking ‘‘plus’’ at the end of paragraph 
(35), 
(2) by striking the period at the end of para-
graph (36) and inserting ‘‘, plus’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(37) the safe harbor adoption credit deter-
mined under section 45S.’’. 
(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 add-
ing after the item relating to section 45R the following 
new item: 
‘‘Sec. 45S. Credit for small employers with respect to modified safe harbor re-
quirements for automatic contribution arrangements.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years that include any 
portion of a plan year beginning after December 31, 2015. 
SEC. 6. MODIFICATION OF REGULATIONS. 
The Secretary of the Treasury shall promulgate regu-
lations or other guidance that— 
(1) simplify and clarify the rules regarding the 
timing of participant notices required under section 
401(k)(13)(E) of the Internal Revenue Code of 
1986, with specific application to— 
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(A) plans that allow employees to be eligi-
ble for participation immediately upon begin-
ning employment, and 
(B) employers with multiple payroll and 
administrative systems, and 
(2) simplify and clarify the automatic escalation 
rules 
under 
sections 
401(k)(13)(C)(iii) 
and 
401(k)(14)(C) of the Internal Revenue Code of 1986 
in the context of employers with multiple payroll and 
administrative systems. 
Such regulations or guidance shall address the particular 
case of employees within the same plan who are subject 
to different notice timing and different percentage require-
ments, and provide assistance for plan sponsors in man-
aging such cases. 
SEC. 7. OPPORTUNITY TO CLAIM THE SAVER’S CREDIT ON 
FORM 1040EZ. 
The Secretary of the Treasury shall modify the forms 
for the return of tax of individuals in order to allow indi-
viduals claiming the credit under section 25B of the Inter-
nal Revenue Code of 1986 to file (and claim such credit 
on) Form 1040EZ. 
Æ 
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