I 
115TH CONGRESS 
2D SESSION 
H. R. 5282 
To amend the Internal Revenue Code of 1986 to encourage retirement 
savings, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 14, 2018 
Mr. KELLY of Pennsylvania (for himself, Mr. KIND, Mr. BISHOP of Michigan, 
Mr. LARSON of Connecticut, Mr. MEEHAN, Mr. PASCRELL, Mr. HOLD-
ING, Ms. SA´NCHEZ, Mr. RICE of South Carolina, Ms. BLUNT ROCH-
ESTER, Mrs. WALORSKI, Mr. POCAN, Mr. SESSIONS, Ms. ADAMS, Mr. 
GIBBS, and Ms. VELA´ZQUEZ) introduced the following bill; which was re-
ferred 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 encourage 
retirement savings, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Retirement Enhancement and Savings Act of 2018’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
Sec. 1. Short title, etc. 
TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 
Sec. 101. Multiple employer plans. 
Sec. 102. Pooled employer and multiple employer plan reporting. 
Sec. 103. Removal of 10 percent cap from automatic enrollment safe harbor 
after 1st plan year. 
Sec. 104. Rules relating to election of safe harbor 401(k) status. 
Sec. 105. Increase in credit limitation for small employer pension plan startup 
costs. 
Sec. 106. Small employer automatic enrollment credit. 
Sec. 107. Certain taxable non-tuition fellowship and stipend payments treated 
as compensation for IRA purposes. 
Sec. 108. Repeal of maximum age for traditional IRA contributions. 
Sec. 109. Expansion of IRA ownership of S corporation bank stock. 
Sec. 110. Qualified employer plans prohibited from making loans through credit 
cards and other similar arrangements. 
Sec. 111. Portability of lifetime income options. 
Sec. 112. Treatment of custodial accounts on termination of section 403(b) 
plans. 
Sec. 113. Clarification of retirement income account rules relating to church- 
controlled organizations. 
TITLE II—ADMINISTRATIVE IMPROVEMENTS 
Sec. 201. Plan adopted by filing due date for year may be treated as in effect 
as of close of year. 
Sec. 202. Combined annual report for group of plans. 
Sec. 203. Disclosure regarding lifetime income. 
Sec. 204. Fiduciary safe harbor for selection of lifetime income provider. 
Sec. 205. Modification of nondiscrimination rules to protect older, longer serv-
ice participants. 
Sec. 206. Modification of PBGC premiums for CSEC plans. 
TITLE III—BENEFITS RELATING TO UNITED STATES TAX COURT 
Sec. 301. Thrift Savings Plan contributions for judges in the Federal Employ-
ees Retirement System. 
Sec. 302. Change in vesting period for survivor annuities and waiver of vesting 
period in the event of assassination. 
Sec. 303. Coordination of retirement and survivor annuity with the Federal 
Employees Retirement System. 
Sec. 304. Limit on teaching compensation of retired judges. 
Sec. 305. General provisions relating to magistrate judges of the Tax Court. 
Sec. 306. Life insurance for magistrate judges of the Tax Court age 65 or 
older. 
Sec. 307. Retirement and annuity program. 
Sec. 308. Provisions for recall. 
TITLE IV—OTHER BENEFITS 
Sec. 401. Benefits provided to volunteer firefighters and emergency medical re-
sponders. 
TITLE V—REVENUE PROVISIONS 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
Sec. 501. Modifications of required distribution rules for pension plans. 
Sec. 502. Increase in penalty for failure to file. 
Sec. 503. Increased penalties for failure to file retirement plan returns. 
Sec. 504. Increase information sharing to administer excise taxes. 
Sec. 505. Pension variable rate premium payment acceleration. 
TITLE I—EXPANDING AND PRE-
SERVING RETIREMENT SAV-
INGS 
SEC. 101. MULTIPLE EMPLOYER PLANS. 
(a) QUALIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Section 413 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(e) APPLICATION
OF QUALIFICATION REQUIRE-
MENTS FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH 
POOLED PLAN PROVIDERS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if a defined contribution plan to which 
subsection (c) applies— 
‘‘(A) is sponsored by employers all of 
which have both a common interest other than 
having adopted the plan and control of the 
plan, or 
‘‘(B) in the case of a plan not described in 
subparagraph (A), has a pooled plan provider, 
then the plan shall not be treated as failing to meet 
the requirements under this title applicable to a plan 
described in section 401(a) or to a plan that consists 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
of individual retirement accounts described in sec-
tion 408 (including by reason of subsection (c) 
thereof), whichever is applicable, merely because one 
or more employers of employees covered by the plan 
fail to take such actions as are required of such em-
ployers for the plan to meet such requirements. 
‘‘(2) LIMITATIONS.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any plan unless the terms of the 
plan provide that in cases of employers failing 
to take the actions described in paragraph 
(1)— 
‘‘(i) the assets of the plan attributable 
to employees of the employer will be trans-
ferred to a plan maintained only by the 
employer (or its successor), to an eligible 
retirement plan as defined in section 
402(c)(8)(B) for each individual whose ac-
count is transferred, or to any other ar-
rangement that the Secretary determines is 
appropriate, unless the Secretary deter-
mines it is in the best interests of such em-
ployees to retain the assets in the plan, 
and 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(ii) the employer described in clause 
(i) (and not the plan with respect to which 
the failure occurred or any other partici-
pating employer in such plan) shall, except 
to the extent provided by the Secretary, be 
liable for any liabilities with respect to 
such plan attributable to employees of the 
employer. 
‘‘(B) FAILURES
BY
POOLED
PLAN
PRO-
VIDERS.—If the pooled plan provider of a plan 
described in paragraph (1)(B) does not perform 
substantially all of the administrative duties 
which are required of the provider under para-
graph (3)(A)(i) for any plan year, the Sec-
retary, in the Secretary’s own discretion, may 
provide that the determination as to whether 
the plan meets the requirements under this title 
applicable to a plan described in section 401(a) 
or to a plan that consists of individual retire-
ment accounts described in section 408 (includ-
ing by reason of subsection (c) thereof), which-
ever is applicable, shall be made in the same 
manner as would be made without regard to 
paragraph (1). 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(3) POOLED PLAN PROVIDER.—For purposes 
of this subsection— 
‘‘(A) IN GENERAL.—The term ‘pooled plan 
provider’ means, with respect to any plan, a 
person who— 
‘‘(i) is designated by the terms of the 
plan as a named fiduciary (within the 
meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of 
1974), as the plan administrator, and as 
the person responsible to perform all ad-
ministrative duties (including conducting 
proper testing with respect to the plan and 
employees of each participating employer) 
which are reasonably necessary to ensure 
that— 
‘‘(I) the plan meets any require-
ment applicable under the Employee 
Retirement Income Security Act of 
1974 or this title to a plan described 
in section 401(a) or to a plan that 
consists of individual retirement ac-
counts described in section 408 (in-
cluding by reason of subsection (c) 
thereof), whichever is applicable, and 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(II) each participating employer 
takes such actions as the Secretary or 
such person determines are necessary 
for the plan to meet the requirements 
described in subclause (I), including 
providing to such person any disclo-
sures or other information which the 
Secretary may require or which such 
person otherwise determines is nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments, 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides such 
other information to the Secretary as the 
Secretary may require, before beginning 
operations as a pooled plan provider, 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary (within 
the meaning of section 402(a)(2) of the 
Employee Retirement Income Security Act 
of 1974), and the plan administrator, with 
respect to the plan, and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
are fiduciaries of, the plan are bonded in 
accordance with section 412 of the Em-
ployee Retirement Income Security Act of 
1974. 
‘‘(B) AUDITS, EXAMINATIONS AND INVES-
TIGATIONS.—The Secretary may perform au-
dits, examinations, and investigations of pooled 
plan providers as may be necessary to enforce 
and carry out the purposes of this subsection. 
‘‘(4) GUIDANCE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
issue such guidance as the Secretary determines 
appropriate to carry out this subsection, includ-
ing guidance— 
‘‘(i) to identify the administrative du-
ties and other actions required to be per-
formed by a pooled plan provider under 
this subsection, 
‘‘(ii) which describes the procedures to 
be taken to terminate a plan which fails to 
meet the requirements to be a plan de-
scribed in paragraph (1), including the 
proper treatment of, and actions needed to 
be taken by, any participating employer of 
the plan and the assets and liabilities of 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
the plan with respect to employees of that 
employer, and 
‘‘(iii) identifying appropriate cases to 
which the rules of paragraph (2)(A) will 
apply to employers failing to take the ac-
tions described in paragraph (1). 
The Secretary shall take into account under 
clause (iii) whether the failure of an employer 
or pooled plan provider to provide any disclo-
sures or other information, or to take any other 
action, necessary to administer a plan or to 
allow a plan to meet requirements applicable to 
the plan under section 401(a) or 408, whichever 
is applicable, has continued over a period of 
time that clearly demonstrates a lack of com-
mitment to compliance. 
‘‘(B) PROSPECTIVE
APPLICATION.—Any 
guidance issued by the Secretary under this 
paragraph shall not apply to any action or fail-
ure occurring before the issuance of such guid-
ance. 
‘‘(5) MODEL
PLAN.—The Secretary shall, in 
consultation with the Secretary of Labor when ap-
propriate, publish model plan language which meets 
the requirements of this subsection and of para-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
graphs (43) and (44) of section 3 of the Employee 
Retirement Income Security Act of 1974 and which 
may be adopted in order for a plan to be treated as 
a plan described in paragraph (1)(B).’’. 
(2) CONFORMING AMENDMENT.—Paragraph (3) 
of section 413(b) of such Code is amended by strik-
ing ‘‘section 401(a)’’ and inserting ‘‘sections 401(a) 
and 408(c)’’. 
(3) TECHNICAL AMENDMENT.—Subsection (c) 
of section 408 of such Code is amended by inserting 
after paragraph (2) the following new paragraph: 
‘‘(3) There is a separate accounting for any in-
terest of an employee or member (or spouse of an 
employee or member) in a Roth IRA.’’. 
(b) NO COMMON INTEREST REQUIRED FOR POOLED 
EMPLOYER PLANS.—Section 3(2) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 
is amended by adding at the end the following: 
‘‘(C) A pooled employer plan shall be treat-
ed as— 
‘‘(i) a single employee pension benefit 
plan or single pension plan; and 
‘‘(ii) a plan to which section 210(a) 
applies.’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(c) POOLED EMPLOYER PLAN AND PROVIDER DE-
FINED.— 
(1) IN GENERAL.—Section 3 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1002) is amended by adding at the end the fol-
lowing: 
‘‘(43) POOLED EMPLOYER PLAN.— 
‘‘(A) IN GENERAL.—The term ‘pooled em-
ployer plan’ means a plan— 
‘‘(i) which is an individual account 
plan established or maintained for the pur-
pose of providing benefits to the employees 
of 2 or more employers; 
‘‘(ii) which is a plan described in sec-
tion 401(a) of the Internal Revenue Code 
of 1986 which includes a trust exempt 
from tax under section 501(a) of such 
Code or a plan that consists of individual 
retirement accounts described in section 
408 of such Code (including by reason of 
subsection (c) thereof); and 
‘‘(iii) the terms of which meet the re-
quirements of subparagraph (B). 
Such term shall not include a plan with respect 
to which all of the participating employers have 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
both a common interest other than having 
adopted the plan and control of the plan. 
‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 
The requirements of this subparagraph are met 
with respect to any plan if the terms of the 
plan— 
‘‘(i) designate a pooled plan provider 
and provide that the pooled plan provider 
is a named fiduciary of the plan; 
‘‘(ii) designate one or more trustees 
meeting 
the 
requirements 
of 
section 
408(a)(2) of the Internal Revenue Code of 
1986 (other than a participating employer) 
to be responsible for collecting contribu-
tions to, and holding the assets of, the 
plan and require such trustees to imple-
ment written contribution collection proce-
dures that are reasonable, diligent, and 
systematic; 
‘‘(iii) provide that each participating 
employer retains fiduciary responsibility 
for— 
‘‘(I) the selection and monitoring 
in accordance with section 404(a) of 
the person designated as the pooled 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
plan provider and any other person 
who, in addition to the pooled plan 
provider, is designated as a named fi-
duciary of the plan; and 
‘‘(II) to the extent not otherwise 
delegated to another fiduciary by the 
pooled plan provider and subject to 
the provisions of section 404(c), the 
investment and management of that 
portion of the plan’s assets attrib-
utable to the employees of that par-
ticipating employer; 
‘‘(iv) provide that a participating em-
ployer, or a participant or beneficiary, is 
not subject to unreasonable restrictions, 
fees, or penalties with regard to ceasing 
participation, receipt of distributions, or 
otherwise transferring assets of the plan in 
accordance with section 208 or paragraph 
(44)(C)(i)(II); 
‘‘(v) require— 
‘‘(I) the pooled plan provider to 
provide to participating employers any 
disclosures or other information which 
the Secretary may require, including 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
any disclosures or other information 
to facilitate the selection or any moni-
toring of the pooled plan provider by 
participating employers; and 
‘‘(II) each participating employer 
to take such actions as the Secretary 
or the pooled plan provider determines 
are necessary to administer the plan 
or for the plan to meet any require-
ment applicable under this Act or the 
Internal Revenue Code of 1986 to a 
plan described in section 401(a) of 
such Code or to a plan that consists 
of individual retirement accounts de-
scribed in section 408 of such Code 
(including by reason of subsection (c) 
thereof), whichever is applicable, in-
cluding providing any disclosures or 
other information which the Secretary 
may require or which the pooled plan 
provider otherwise determines is nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments; and 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(vi) provide that any disclosure or 
other information required to be provided 
under clause (v) may be provided in elec-
tronic form and will be designed to ensure 
only reasonable costs are imposed on 
pooled plan providers and participating 
employers. 
‘‘(C) EXCEPTIONS.—The term ‘pooled em-
ployer plan’ does not include— 
‘‘(i) a multiemployer plan; or 
‘‘(ii) a plan established before the 
date of the enactment of the Retirement 
Enhancement and Savings Act of 2018, 
unless the plan administrator elects that 
the plan will be treated as a pooled em-
ployer plan and the plan meets the require-
ments of this title applicable to a pooled 
employer plan established on or after such 
date. 
‘‘(44) POOLED PLAN PROVIDER.— 
‘‘(A) IN GENERAL.—The term ‘pooled plan 
provider’ means a person who— 
‘‘(i) is designated by the terms of a 
pooled employer plan as a named fiduciary, 
as the plan administrator, and as the per-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
son responsible for the performance of all 
administrative duties (including conducting 
proper testing with respect to the plan and 
employees of each participating employer) 
which are reasonably necessary to ensure 
that— 
‘‘(I) the plan meets any require-
ment applicable under this Act or the 
Internal Revenue Code of 1986 to a 
plan described in section 401(a) of 
such Code or to a plan that consists 
of individual retirement accounts de-
scribed in section 408 of such Code 
(including by reason of subsection (c) 
thereof), whichever is applicable; and 
‘‘(II) each participating employer 
takes such actions as the Secretary or 
pooled plan provider determines are 
necessary for the plan to meet the re-
quirements described in subclause (I), 
including providing the disclosures 
and information described in para-
graph (43)(B)(v)(II); 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides to 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
the Secretary such other information as 
the Secretary may require, before begin-
ning operations as a pooled plan provider; 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary, and the 
plan administrator, with respect to the 
pooled employer plan; and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who 
are fiduciaries of, the pooled employer plan 
are bonded in accordance with section 412. 
‘‘(B) AUDITS, EXAMINATIONS AND INVES-
TIGATIONS.—The Secretary may perform au-
dits, examinations, and investigations of pooled 
plan providers as may be necessary to enforce 
and carry out the purposes of this paragraph 
and paragraph (43). 
‘‘(C) GUIDANCE.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall issue such guidance as the Secretary 
determines appropriate to carry out this 
paragraph and paragraph (43), including 
guidance— 
‘‘(I) to identify the administra-
tive duties and other actions required 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
to be performed by a pooled plan pro-
vider under either such paragraph; 
and 
‘‘(II) which requires in appro-
priate cases that if a participating 
employer fails to take the actions re-
quired 
under 
subparagraph 
(A)(i)(II)— 
‘‘(aa) the assets of the plan 
attributable to employees of the 
participating employer are trans-
ferred to a plan maintained only 
by the participating employer (or 
its successor), to an eligible re-
tirement plan as defined in sec-
tion 402(c)(8)(B) of the Internal 
Revenue Code of 1986 for each 
individual 
whose 
account 
is 
transferred, or to any other ar-
rangement that the Secretary de-
termines is appropriate in such 
guidance; and 
‘‘(bb) the participating em-
ployer described in item (aa) 
(and not the plan with respect to 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(i) meets the contribution require-
ments of subparagraph (B) and the notice 
requirements of subparagraph (D), or 
‘‘(ii) meets the contribution require-
ments of subparagraph (C).’’. 
(2) 
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENTS.—Subparagraph (B) of section 401(k)(13) of 
such Code is amended by striking ‘‘means’’ and all 
that follows and inserting ‘‘means a cash or deferred 
arrangement— 
‘‘(A) which is described in subparagraph 
(D)(i)(I) and meets the applicable requirements 
of subparagraphs (C) through (E), or 
‘‘(B) which is described in subparagraph 
(D)(i)(II) and meets the applicable require-
ments of subparagraphs (C) and (D).’’. 
(b) 
NONELECTIVE
CONTRIBUTIONS.—Section 
401(k)(12) of the Internal Revenue Code of 1986 is 
amended by redesignating subparagraph (F) as subpara-
graph (G), and by inserting after subparagraph (E) the 
following new subparagraph: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(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 (C) shall apply to the arrangement 
for the plan year, but only if the amend-
ment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, 
or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION WHERE PLAN PRO-
VIDED FOR MATCHING CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of sub-
paragraph (B) or paragraph (13)(D)(i)(I) 
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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘SEC. 45S. 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 (35), by striking the period at the 
end of paragraph (36) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(37) in the case of an eligible employer (as de-
fined in section 45S(c)), the retirement auto-enroll-
ment credit determined under section 45S(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. 45S. 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 the 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD 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, 
as amended by section 110(a), is amended by strik-
ing ‘‘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 following new 
subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
to amounts invested in a lifetime in-
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-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, or’’, and by inserting 
after subparagraph (C) the following new subpara-
graph: 
‘‘(D) except as may be otherwise provided 
by regulations, with respect to amounts invested 
in a lifetime income investment (as defined in 
section 401(a)(38)(B)(ii))— 
‘‘(i) on or after the date that is 90 
days prior to the date that such lifetime 
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— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
such amount is a distribution to which sec-
tion 72(t)(2)(G) applies) before— 
‘‘(I) the employee dies, 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment, 
‘‘(IV) the employee becomes dis-
abled (within the meaning of section 
72(m)(7)), 
‘‘(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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
be held as an investment option under 
the contract, and 
‘‘(ii) in the case of amounts described 
in clause (i)(VI), such amounts will be dis-
tributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
457(d)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of clause (ii), 
by 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,’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(2) DISTRIBUTION REQUIREMENT.—Paragraph 
(1) of section 457(d) of such Code is amended by 
striking ‘‘and’’ at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) 
and inserting ‘‘, and’’, and by inserting after sub-
paragraph (C) the following new subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, in the case of amounts described 
in subparagraph (A)(iv), such amounts will be 
distributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan 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— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(I) an employer terminates the 
plan under which amounts are con-
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. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
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-
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: 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(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-
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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
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 
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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(D) plan years beginning on the same 
date; and 
(3) provide the same investments or investment 
options to participants and beneficiaries. 
A plan not subject to title I of the Employee Retirement 
Income Security Act of 1974 shall be treated as meeting 
the requirements of paragraph (2) as part of a group of 
plans if the same person that performs each of the 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: 
‘‘(5) 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.’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(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. 
(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.’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(b) LIFETIME INCOME.—Paragraph (2) of section 
105(a) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1025(a)) is amended by adding at the 
end the following new subparagraph: 
‘‘(D) LIFETIME INCOME DISCLOSURE.— 
‘‘(i) IN GENERAL.— 
‘‘(I) DISCLOSURE.—A lifetime in-
come disclosure shall set forth the life-
time income stream equivalent of the 
total benefits accrued with respect to 
the participant or beneficiary. 
‘‘(II) LIFETIME INCOME STREAM 
EQUIVALENT
OF
THE
TOTAL
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. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(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)), 
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 2018, 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; 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(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-
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 2018, 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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(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-
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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
the model lifetime income disclosure de-
scribed in clause (ii). This clause shall 
apply without regard to whether the provi-
sion of such lifetime income stream equiva-
lent is required by subparagraph (B)(iii). 
‘‘(v) EFFECTIVE DATE.—The require-
ment in subparagraph (B)(iii) shall apply 
to pension benefit statements furnished 
more than 12 months after the latest of 
the issuance by the Secretary of— 
‘‘(I) interim final rules under 
clause (i); 
‘‘(II) the model disclosure under 
clause (ii); or 
‘‘(III) the assumptions under 
clause (iii).’’. 
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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(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-
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 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(ii) the relative cost of the selected 
guaranteed retirement income contract as 
described in subparagraph (B)(ii) is rea-
sonable. 
‘‘(2) FINANCIAL
CAPABILITY
OF
THE
IN-
SURER.—A fiduciary will be deemed to satisfy the 
requirements of paragraphs (1)(B)(i) and (1)(C)(i) 
if— 
‘‘(A) the fiduciary obtains written rep-
resentations from the insurer that— 
‘‘(i) the insurer is licensed to offer 
guaranteed retirement income contracts; 
‘‘(ii) the insurer, at the time of selec-
tion and for each of the immediately pre-
ceding 7 plan years— 
‘‘(I) operates under a certificate 
of authority from the insurance com-
missioner of its domiciliary State 
which has not been revoked or sus-
pended; 
‘‘(II) has filed audited financial 
statements in accordance with the 
laws of its domiciliary State under ap-
plicable statutory accounting prin-
ciples; 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(III) maintains (and has main-
tained) reserves which satisfies all the 
statutory requirements of all States 
where the insurer does business; and 
‘‘(IV) is not operating under an 
order of supervision, rehabilitation, or 
liquidation; 
‘‘(iii) the insurer undergoes, at least 
every 5 years, a financial examination 
(within the meaning of the law of its domi-
ciliary State) by the insurance commis-
sioner of the domiciliary State (or rep-
resentative, designee, or other party ap-
proved by such commissioner); and 
‘‘(iv) the insurer will notify the fidu-
ciary of any change in circumstances oc-
curring after the provision of the represen-
tations in clauses (i), (ii), and (iii) which 
would preclude the insurer from making 
such representations at the time of 
issuance of the guaranteed retirement in-
come contract; and 
‘‘(B) after receiving such representations 
and as of the time of selection, the fiduciary 
has not received any notice described in sub-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
paragraph (A)(iv) and is in possession of no 
other information which would cause the fidu-
ciary to question the representations provided. 
‘‘(3) NO
REQUIREMENT
TO
SELECT
LOWEST 
COST.—Nothing in this subsection shall be construed 
to require a fiduciary to select the lowest cost con-
tract. A fiduciary may consider the value of a con-
tract, including features and benefits of the contract 
and attributes of the insurer (including, without lim-
itation, the insurer’s financial strength) in conjunc-
tion with the cost of the contract. 
‘‘(4) TIME OF SELECTION.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the time of selection is— 
‘‘(i) the time that the insurer and the 
contract are selected for distribution of 
benefits to a specific participant or bene-
ficiary; or 
‘‘(ii) if the fiduciary periodically re-
views the continuing appropriateness of the 
conclusion described in paragraph (1)(C) 
with respect to a selected insurer, taking 
into account the considerations described 
in such paragraph, the time that the in-
surer and the contract are selected to pro-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
vide benefits at future dates to participants 
or beneficiaries under the plan. 
Nothing in the preceding sentence shall be con-
strued to require the fiduciary to review the ap-
propriateness of a selection after the purchase 
of a contract for a participant or beneficiary. 
‘‘(B) PERIODIC REVIEW.—A fiduciary will 
be deemed to have conducted the periodic re-
view described in subparagraph (A)(ii) if the fi-
duciary obtains the written representations de-
scribed in clauses (i), (ii), and (iii) of paragraph 
(2)(A) from the insurer on an annual basis, un-
less the fiduciary receives any notice described 
in paragraph (2)(A)(iv) or otherwise becomes 
aware of facts that would cause the fiduciary to 
question such representations. 
‘‘(5) LIMITED
LIABILITY.—A fiduciary which 
satisfies the requirements of this subsection shall not 
be liable following the distribution of any benefit, or 
the investment by or on behalf of a participant or 
beneficiary pursuant to the selected guaranteed re-
tirement income contract, for any losses that may 
result to the participant or beneficiary due to an in-
surer’s inability to satisfy its financial obligations 
under the terms of such contract. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) INSURER.—The term ‘insurer’ means 
an insurance company, insurance service, or in-
surance organization, including affiliates of 
such companies. 
‘‘(B) GUARANTEED RETIREMENT INCOME 
CONTRACT.—The term ‘guaranteed retirement 
income contract’ means an annuity contract for 
a fixed term or a contract (or provision or fea-
ture thereof) which provides guaranteed bene-
fits annually (or more frequently) for at least 
the remainder of the life of the participant or 
the joint lives of the participant and the partici-
pant’s designated beneficiary as part of an indi-
vidual account plan.’’. 
SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by redesignating subsection (o) as sub-
section (p); and 
(2) by inserting after subsection (n) the fol-
lowing new subsection: 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(o) 
SPECIAL
RULES
FOR
APPLYING
NON-
DISCRIMINATION RULES TO PROTECT OLDER, LONGER 
SERVICE AND GRANDFATHERED PARTICIPANTS.— 
‘‘(1) TESTING
OF
DEFINED
BENEFIT
PLANS 
WITH CLOSED CLASSES OF PARTICIPANTS.— 
‘‘(A) BENEFITS, RIGHTS, OR
FEATURES 
PROVIDED
TO
CLOSED
CLASSES.—A defined 
benefit plan which provides benefits, rights, or 
features to a closed class of participants shall 
not fail to satisfy the requirements of sub-
section (a)(4) by reason of the composition of 
such closed class or the benefits, rights, or fea-
tures provided to such closed class, if— 
‘‘(i) for the plan year as of which the 
class closes and the 2 succeeding plan 
years, such benefits, rights, and features 
satisfy the requirements of subsection 
(a)(4) (without regard to this subpara-
graph but taking into account the rules of 
subparagraph (I)), 
‘‘(ii) after the date as of which the 
class was closed, any plan amendment 
which modifies the closed class or the ben-
efits, rights, and features provided to such 
closed class does not discriminate signifi-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
cantly in favor of highly compensated em-
ployees, and 
‘‘(iii) the class was closed before Sep-
tember 21, 2016, or the plan is described 
in subparagraph (C). 
‘‘(B) AGGREGATE TESTING WITH DEFINED 
CONTRIBUTION PLANS PERMITTED ON A BENE-
FITS BASIS.— 
‘‘(i) IN
GENERAL.—For purposes of 
determining compliance with subsection 
(a)(4) and section 410(b), a defined benefit 
plan described in clause (iii) may be aggre-
gated and tested on a benefits basis with 
1 or more defined contribution plans, in-
cluding with the portion of 1 or more de-
fined contribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contribu-
tions or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
meaning of section 4975(e)(7)) or a 
tax credit employee stock ownership 
plan (within the meaning of section 
409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—For purposes of clause 
(i), if a defined benefit plan is aggregated 
with a portion of a defined contribution 
plan providing matching contributions— 
‘‘(I) such defined benefit plan 
must also be aggregated with any por-
tion of such defined contribution plan 
which provides elective deferrals de-
scribed in subparagraph (A) or (C) of 
section 402(g)(3), and 
‘‘(II) such matching contribu-
tions shall be treated in the same 
manner as nonelective contributions, 
including for purposes of applying the 
rules of subsection (l). 
‘‘(iii) PLANS DESCRIBED.—A defined 
benefit plan is described in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(II) for the plan year as of 
which the class closes and the 2 suc-
ceeding plan years, the plan satisfies 
the requirements of section 410(b) 
and subsection (a)(4) (without regard 
to this subparagraph but taking into 
account the rules of subparagraph 
(I)), 
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ment which modifies the closed class 
or the benefits provided to such closed 
class does not discriminate signifi-
cantly in favor of highly compensated 
employees, and 
‘‘(IV) the class was closed before 
September 21, 2016, or the plan is 
described in subparagraph (C). 
‘‘(C) PLANS DESCRIBED.—A plan is de-
scribed in this subparagraph if, taking into ac-
count any predecessor plan— 
‘‘(i) such plan has been in effect for 
at least 5 years as of the date the class is 
closed, and 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(ii) during the 5-year period pre-
ceding the date the class is closed, there 
has not been a substantial increase in the 
coverage or value of the benefits, rights, or 
features described in subparagraph (A) or 
in the coverage or benefits under the plan 
described in subparagraph (B)(iii) (which-
ever is applicable). 
‘‘(D) DETERMINATION
OF
SUBSTANTIAL 
INCREASE FOR BENEFITS, RIGHTS, AND FEA-
TURES.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (A)(iii), a plan shall 
be treated as having had a substantial increase 
in coverage or value of the benefits, rights, or 
features described in subparagraph (A) during 
the applicable 5-year period only if, during such 
period— 
‘‘(i) the number of participants cov-
ered by such benefits, rights, or features 
on the date such period ends is more than 
50 percent greater than the number of 
such participants on the first day of the 
plan year in which such period began, or 
‘‘(ii) such benefits, rights, and fea-
tures have been modified by 1 or more 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
plan amendments in such a way that, as of 
the date the class is closed, the value of 
such benefits, rights, and features to the 
closed class as a whole is substantially 
greater than the value as of the first day 
of such 5-year period, solely as a result of 
such amendments. 
‘‘(E) DETERMINATION
OF
SUBSTANTIAL 
INCREASE FOR AGGREGATE TESTING ON BENE-
FITS BASIS.—In applying subparagraph (C)(ii) 
for purposes of subparagraph (B)(iii)(IV), a 
plan shall be treated as having had a substan-
tial increase in coverage or benefits during the 
applicable 5-year period only if, during such pe-
riod— 
‘‘(i) the number of participants bene-
fiting under the plan on the date such pe-
riod ends is more than 50 percent greater 
than the number of such participants on 
the first day of the plan year in which such 
period began, or 
‘‘(ii) the average benefit provided to 
such participants on the date such period 
ends is more than 50 percent greater than 
the average benefit provided on the first 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
day of the plan year in which such period 
began. 
‘‘(F) 
CERTAIN
EMPLOYEES
DIS-
REGARDED.—For purposes of subparagraphs 
(D) and (E), any increase in coverage or value 
or in coverage or benefits, whichever is applica-
ble, which is attributable to such coverage and 
value or coverage and benefits provided to em-
ployees— 
‘‘(i) who became participants as a re-
sult of a merger, acquisition, or similar 
event which occurred during the 7-year pe-
riod preceding the date the class is closed, 
or 
‘‘(ii) who became participants by rea-
son of a merger of the plan with another 
plan which had been in effect for at least 
5 years as of the date of the merger, 
shall be disregarded, except that clause (ii) 
shall apply for purposes of subparagraph (D) 
only if, under the merger, the benefits, rights, 
or features under 1 plan are conformed to the 
benefits, rights, or features of the other plan 
prospectively. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(G) RULES RELATING TO AVERAGE BEN-
EFIT.—For purposes of subparagraph (E)— 
‘‘(i) the average benefit provided to 
participants under the plan will be treated 
as having remained the same between the 
2 dates described in subparagraph (E)(ii) 
if the benefit formula applicable to such 
participants has not changed between such 
dates, and 
‘‘(ii) if the benefit formula applicable 
to 1 or more participants under the plan 
has changed between such 2 dates, then 
the average benefit under the plan shall be 
considered to have increased by more than 
50 percent only if— 
‘‘(I) the total amount determined 
under section 430(b)(1)(A)(i) for all 
participants benefiting under the plan 
for the plan year in which the 5-year 
period described in subparagraph (E) 
ends, exceeds 
‘‘(II) the total amount deter-
mined under section 430(b)(1)(A)(i) 
for all such participants for such plan 
year, by using the benefit formula in 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
effect for each such participant for 
the first plan year in such 5-year pe-
riod, 
by more than 50 percent. In the case of a 
CSEC plan (as defined in section 414(y)), 
the normal cost of the plan (as determined 
under section 433(j)(1)(B)) shall be used 
in lieu of the amount determined under 
section 430(b)(1)(A)(i). 
‘‘(H) TREATMENT AS SINGLE PLAN.—For 
purposes of subparagraphs (E) and (G), a plan 
described in section 413(c) shall be treated as 
a single plan rather than as separate plans 
maintained by each participating employer. 
‘‘(I) SPECIAL
RULES.—For purposes of 
subparagraphs (A)(i) and (B)(iii)(II), the fol-
lowing rules shall apply: 
‘‘(i) In applying section 410(b)(6)(C), 
the closing of the class of participants shall 
not be treated as a significant change in 
coverage under section 410(b)(6)(C)(i)(II). 
‘‘(ii) Two or more plans shall not fail 
to be eligible to be aggregated and treated 
as a single plan solely by reason of having 
different plan years. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(iii) Changes in the employee popu-
lation shall be disregarded to the extent at-
tributable to individuals who become em-
ployees or cease to be employees, after the 
date the class is closed, by reason of a 
merger, acquisition, divestiture, or similar 
event. 
‘‘(iv) Aggregation and all other testing 
methodologies otherwise applicable under 
subsection (a)(4) and section 410(b) may 
be taken into account. 
The rule of clause (ii) shall also apply for pur-
poses of determining whether plans to which 
subparagraph (B)(i) applies may be aggregated 
and treated as 1 plan for purposes of deter-
mining whether such plans meet the require-
ments of subsection (a)(4) and section 410(b). 
‘‘(J) SPUN-OFF PLANS.—For purposes of 
this paragraph, if a portion of a defined benefit 
plan described in subparagraph (A) or (B)(iii) 
is spun off to another employer and the spun- 
off plan continues to satisfy the requirements 
of— 
‘‘(i) 
subparagraph 
(A)(i) 
or 
(B)(iii)(II), whichever is applicable, if the 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
original plan was still within the 3-year pe-
riod described in such subparagraph at the 
time of the spin off, and 
‘‘(ii) 
subparagraph 
(A)(ii) 
or 
(B)(iii)(III), whichever is applicable, 
the treatment under subparagraph (A) or (B) 
of the spun-off plan shall continue with respect 
to such other employer. 
‘‘(2) TESTING
OF
DEFINED
CONTRIBUTION 
PLANS.— 
‘‘(A) TESTING ON A BENEFITS BASIS.—A 
defined contribution plan shall be permitted to 
be tested on a benefits basis if— 
‘‘(i) such defined contribution plan 
provides make-whole contributions to a 
closed class of participants whose accruals 
under a defined benefit plan have been re-
duced or eliminated, 
‘‘(ii) for the plan year of the defined 
contribution plan as of which the class eli-
gible to receive such make-whole contribu-
tions closes and the 2 succeeding plan 
years, such closed class of participants sat-
isfies 
the 
requirements 
of 
section 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
410(b)(2)(A)(i) (determined by applying 
the rules of paragraph (1)(I)), 
‘‘(iii) after the date as of which the 
class was closed, any plan amendment to 
the defined contribution plan which modi-
fies the closed class or the allocations, ben-
efits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iv) the class was closed before Sep-
tember 21, 2016, or the defined benefit 
plan under clause (i) is described in para-
graph (1)(C) (as applied for purposes of 
paragraph (1)(B)(iii)(IV)). 
‘‘(B) AGGREGATION WITH PLANS INCLUD-
ING MATCHING CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—With respect to 1 
or more defined contribution plans de-
scribed in subparagraph (A), for purposes 
of determining compliance with subsection 
(a)(4) and section 410(b), the portion of 
such plans which provides make-whole con-
tributions or other nonelective contribu-
tions may be aggregated and tested on a 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
benefits basis with the portion of 1 or 
more other defined contribution plans 
which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contribu-
tions or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a 
tax credit employee stock ownership 
plan (within the meaning of section 
409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—Rules similar to the 
rules of paragraph (1)(B)(ii) shall apply 
for purposes of clause (i). 
‘‘(C) SPECIAL
RULES
FOR
TESTING
DE-
FINED
CONTRIBUTION
PLAN
FEATURES
PRO-
VIDING MATCHING CONTRIBUTIONS TO CERTAIN 
OLDER, LONGER
SERVICE
PARTICIPANTS.—In 
the case of a defined contribution plan which 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
provides benefits, rights, or features to a closed 
class of participants whose accruals under a de-
fined benefit plan have been reduced or elimi-
nated, the plan shall not fail to satisfy the re-
quirements of subsection (a)(4) solely by reason 
of the composition of the closed class or the 
benefits, rights, or features provided to such 
closed class if the defined contribution plan and 
defined benefit plan otherwise meet the require-
ments of subparagraph (A) but for the fact that 
the make-whole contributions under the defined 
contribution plan are made in whole or in part 
through matching contributions. 
‘‘(D) SPUN-OFF PLANS.—For purposes of 
this paragraph, if a portion of a defined con-
tribution plan described in subparagraph (A) or 
(C) is spun off to another employer, the treat-
ment under subparagraph (A) or (C) of the 
spun-off plan shall continue with respect to the 
other employer if such plan continues to comply 
with the requirements of clauses (ii) (if the 
original plan was still within the 3-year period 
described in such clause at the time of the spin 
off) and (iii) of subparagraph (A), as deter-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
mined for purposes of subparagraph (A) or (C), 
whichever is applicable. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex-
cept as otherwise provided in paragraph (2)(C), 
the term ‘make-whole contributions’ means non-
elective allocations for each employee in the 
class which are reasonably calculated, in a con-
sistent manner, to replace some or all of the re-
tirement benefits which the employee would 
have received under the defined benefit plan 
and any other plan or qualified cash or deferred 
arrangement under subsection (k)(2) if no 
change had been made to such defined benefit 
plan and such other plan or arrangement. For 
purposes of the preceding sentence, consistency 
shall not be required with respect to employees 
who were subject to different benefit formulas 
under the defined benefit plan. 
‘‘(B) REFERENCES TO CLOSED CLASS OF 
PARTICIPANTS.—References to a closed class of 
participants and similar references to a closed 
class shall include arrangements under which 1 
or more classes of participants are closed, ex-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
cept that 1 or more classes of participants 
closed on different dates shall not be aggre-
gated for purposes of determining the date any 
such class was closed. 
‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 
The term ‘highly compensated employee’ has 
the meaning given such term in section 
414(q).’’. 
(b) 
PARTICIPATION
REQUIREMENTS.—Paragraph 
(26) of section 401(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subparagraph: 
‘‘(I) PROTECTED PARTICIPANTS.— 
‘‘(i) IN
GENERAL.—A plan shall be 
deemed to satisfy the requirements of sub-
paragraph (A) if— 
‘‘(I) the plan is amended— 
‘‘(aa) to cease all benefit ac-
cruals, or 
‘‘(bb) to provide future ben-
efit accruals only to a closed 
class of participants, 
‘‘(II) the plan satisfies subpara-
graph (A) (without regard to this sub-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
paragraph) as of the effective date of 
the amendment, and 
‘‘(III) the amendment was adopt-
ed before September 21, 2016, or the 
plan is described in clause (ii). 
‘‘(ii) PLANS DESCRIBED.—A plan is 
described in this clause if the plan would 
be described in subsection (o)(1)(C), as ap-
plied 
for 
purposes 
of 
subsection 
(o)(1)(B)(iii)(IV) and by treating the effec-
tive date of the amendment as the date the 
class was closed for purposes of subsection 
(o)(1)(C). 
‘‘(iii) SPECIAL RULES.—For purposes 
of clause (i)(II), in applying section 
410(b)(6)(C), the amendments described in 
clause (i) shall not be treated as a signifi-
cant change in coverage under section 
410(b)(6)(C)(i)(II). 
‘‘(iv) SPUN-OFF
PLANS.—For pur-
poses of this subparagraph, if a portion of 
a plan described in clause (i) is spun off to 
another employer, the treatment under 
clause (i) of the spun-off plan shall con-
tinue with respect to the other employer.’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall take effect on the date of the enactment of this 
Act, without regard to whether any plan modifica-
tions referred to in such amendments are adopted or 
effective before, on, or after such date of enactment. 
(2) SPECIAL RULES.— 
(A) ELECTION
OF
EARLIER
APPLICA-
TION.—At the election of the plan sponsor, the 
amendments made by this section shall apply to 
plan years beginning after December 31, 2013. 
(B) CLOSED CLASSES OF PARTICIPANTS.— 
For 
purposes 
of 
paragraphs 
(1)(A)(iii), 
(1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 
of the Internal Revenue Code of 1986 (as added 
by this section), a closed class of participants 
shall be treated as being closed before Sep-
tember 21, 2016, if the plan sponsor’s intention 
to create such closed class is reflected in formal 
written documents and communicated to par-
ticipants before such date. 
(C) 
CERTAIN
POST-ENACTMENT
PLAN 
AMENDMENTS.—A plan shall not be treated as 
failing to be eligible for the application of sec-
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
tion 
401(o)(1)(A), 
401(o)(1)(B)(iii), 
or 
401(a)(26) of such Code (as added by this sec-
tion) to such plan solely because in the case 
of— 
(i) such section 401(o)(1)(A), the plan 
was amended before the date of the enact-
ment of this Act to eliminate 1 or more 
benefits, rights, or features, and is further 
amended after such date of enactment to 
provide such previously eliminated benefits, 
rights, or features to a closed class of par-
ticipants, or 
(ii) such section 401(o)(1)(B)(iii) or 
section 401(a)(26), the plan was amended 
before the date of the enactment of this 
Act to cease all benefit accruals, and is 
further amended after such date of enact-
ment to provide benefit accruals to a closed 
class of participants. 
Any such section shall only apply if the plan 
otherwise meets the requirements of such sec-
tion and in applying such section, the date the 
class of participants is closed shall be the effec-
tive date of the later amendment. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC 
PLANS. 
(a) FLAT RATE PREMIUM.—Subparagraph (A) of 
section 4006(a)(3) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amend-
ed— 
(1) in clause (i), by striking ‘‘plan,’’ and insert-
ing ‘‘plan other than a CSEC plan (as defined in 
section 210(f)(1))’’; 
(2) in clause (v), by striking ‘‘or’’ at the end; 
(3) in clause (vi), by striking the period at the 
end and inserting ‘‘, or’’; and 
(4) by adding at the end the following new 
clause: 
‘‘(vii) in the case of a CSEC plan (as 
defined in section 210(f)(1)), for plan 
years beginning after December 31, 2017, 
for each individual who is a participant in 
such plan during the plan year an amount 
equal to the sum of— 
‘‘(I) the additional premium (if 
any) determined under subparagraph 
(E), and 
‘‘(II) $19.’’. 
(b) VARIABLE RATE PREMIUM.— 
(1) UNFUNDED VESTED BENEFITS.— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(A) IN
GENERAL.—Subparagraph (E) of 
section 4006(a)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)) is amended by adding at the end 
the following new clause: 
‘‘(v) For purposes of clause (ii), in the 
case of a CSEC plan (as defined in section 
210(f)(1)), the term ‘unfunded vested ben-
efits’ means, for plan years beginning after 
December 31, 2017, the excess (if any) 
of— 
‘‘(I) the funding liability of the 
plan as determined under section 
306(j)(5)(C) for the plan year by only 
taking into account vested benefits, 
over 
‘‘(II) the fair market value of 
plan assets for the plan year which 
are held by the plan on the valuation 
date.’’. 
(B) CONFORMING
AMENDMENT.—Clause 
(iii) of section 4006(a)(3)(E) of such Act (29 
U.S.C. 1306(a)(3)(E)) is amended by striking 
‘‘For purposes’’ and inserting ‘‘Except as pro-
vided in clause (v), for purposes’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(2) APPLICABLE DOLLAR AMOUNT.— 
(A) IN GENERAL.—Paragraph (8) of sec-
tion 4006(a) of such Act (29 U.S.C. 1306(a)) 
is amended by adding at the end the following 
new subparagraph: 
‘‘(E) CSEC PLANS.—In the case of a 
CSEC plan (as defined in section 210(f)(1)), 
the applicable dollar amount shall be $9.’’. 
(B) CONFORMING AMENDMENT.—Subpara-
graph (A) of section 4006(a)(8) of such Act (29 
U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 
and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 
TITLE III—BENEFITS RELATING 
TO UNITED STATES TAX COURT 
SEC. 301. THRIFT SAVINGS PLAN CONTRIBUTIONS FOR 
JUDGES IN THE FEDERAL EMPLOYEES RE-
TIREMENT SYSTEM. 
(a) IN GENERAL.—Subsection (j)(3)(B) of section 
7447 of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(B) CONTRIBUTIONS
FOR
BENEFIT
OF 
JUDGE.—No 
contributions 
under 
section 
8432(c) of title 5, United States Code, shall be 
made for the benefit of a judge who has filed 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
an election to receive retired pay under sub-
section (e).’’. 
(b) OFFSET.—Paragraph (3) of section 7447(j) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(F) OFFSET.—In the case of a judge who 
receives a distribution from the Thrift Savings 
Plan and who later receives retired pay under 
subsection (d), the retired pay shall be offset by 
an amount equal to the amount of the distribu-
tion which represents the Government’s con-
tribution to the individual’s Thrift Savings Ac-
count during years of service as a full-time judi-
cial officer under the Federal Employees Retire-
ment System, without regard to earnings attrib-
utable to such amount. Where such an offset 
would exceed 50 percent of the retired pay to 
be received in the first year, the offset may be 
divided equally over the first 2 years in which 
the individual receives the annuity.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to basic pay earned while serving 
as a judge of the United States Tax Court on or after 
the date of the enactment of this Act. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
SEC. 302. CHANGE IN VESTING PERIOD FOR SURVIVOR AN-
NUITIES AND WAIVER OF VESTING PERIOD IN 
THE EVENT OF ASSASSINATION. 
(a) ELIGIBILITY IN CASE OF DEATH BY ASSASSINA-
TION.—Subsection (h) of section 7448 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘(h) ENTITLEMENT TO ANNUITY.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ANNUITY TO SURVIVING SPOUSE.—If 
a judge or magistrate judge of the Tax Court 
described in paragraph (2) is survived by a sur-
viving spouse but not by a dependent child, 
there shall be paid to such surviving spouse an 
annuity beginning with the day of the death of 
the judge or magistrate judge of the Tax Court 
or following the surviving spouse’s attainment 
of age 50, whichever is the later, in an amount 
computed as provided in subsection (m). 
‘‘(B) ANNUITY TO SURVIVING SPOUSE AND 
CHILD.—If a judge or magistrate judge of the 
Tax Court described in paragraph (2) is sur-
vived by a surviving spouse and dependent child 
or children, there shall be paid to such sur-
viving spouse an annuity, beginning on the day 
of the death of the judge or magistrate judge 
of the Tax Court, in an amount computed as 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
provided in subsection (m), and there shall also 
be paid to or on behalf of each such child an 
immediate annuity equal to the lesser of— 
‘‘(i) 10 percent of the average annual 
salary of such judge or magistrate judge of 
the Tax Court (determined in accordance 
with subsection (m)), or 
‘‘(ii) 20 percent of such average an-
nual salary, divided by the number of such 
children. 
‘‘(C) ANNUITY TO SURVIVING DEPENDENT 
CHILDREN.—If a judge or magistrate judge of 
the Tax Court described in paragraph (2) 
leaves no surviving spouse but leaves a sur-
viving dependent child or children, there shall 
be paid to or on behalf of each such child an 
immediate annuity equal to the lesser of— 
‘‘(i) 20 percent of the average annual 
salary of such judge or magistrate judge of 
the Tax Court (determined in accordance 
with subsection (m)), or 
‘‘(ii) 40 percent of such average an-
nual salary divided by the number of such 
children. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(2) COVERED JUDGES.—Paragraph (1) applies 
to any judge or magistrate judge of the Tax Court 
electing under subsection (b)— 
‘‘(A) who dies while a judge or magistrate 
judge of the Tax Court after having rendered at 
least 18 months of civilian service computed as 
prescribed in subsection (n), for the last 18 
months of which the salary deductions provided 
for by subsection (c)(1) or the deposits required 
by subsection (d) have actually been made or 
the salary deductions required by the civil serv-
ice retirement laws have actually been made, or 
‘‘(B) who dies by assassination after hav-
ing rendered less than 18 months of civilian 
service computed as prescribed in subsection (n) 
if, for the period of such service, the salary de-
ductions provided for by subsection (c)(1) or 
the deposits required by subsection (d) have ac-
tually been made. 
‘‘(3) TERMINATION OF ANNUITY.— 
‘‘(A) SURVIVING
SPOUSE.—The annuity 
payable to a surviving spouse under this sub-
section shall be terminable upon such surviving 
spouse’s death or such surviving spouse’s re-
marriage before attaining age 55. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(B) SURVIVING
CHILD.—Any annuity 
payable to a child under this subsection shall be 
terminable upon the earliest of— 
‘‘(i) the child attainment of age 18, 
‘‘(ii) the child’s marriage, or 
‘‘(iii) the child’s death, 
except that if such child is incapable of self-sup-
port by reason of mental or physical disability 
the child’s annuity shall be terminable only 
upon death, marriage, or recovery from such 
disability. 
‘‘(C) DEPENDENT
CHILD
AFTER
DEATH 
OF SURVIVING SPOUSE.—In case of the death of 
a surviving spouse of a judge or magistrate 
judge of the Tax Court leaving a dependent 
child or children of the judge or magistrate 
judge of the Tax Court surviving such spouse, 
the annuity of such child or children shall be 
recomputed and paid as provided in paragraph 
(1)(C). 
‘‘(D) RECOMPUTATION WITH RESPECT TO 
OTHER DEPENDENT CHILDREN.—In any case 
in which the annuity of a dependent child is 
terminated under this subsection, the annuities 
of any remaining dependent child or children 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
based upon the service of the same judge or 
magistrate judge of the Tax Court shall be re-
computed and paid as though the child whose 
annuity was so terminated had not survived 
such judge. 
‘‘(E) SPECIAL
RULE
FOR
ASSASSINATED 
JUDGES.—In the case of a survivor of a judge 
or magistrate judge of the Tax Court described 
in paragraph (2)(B), there shall be deducted 
from the annuities otherwise payable under this 
section an amount equal to the amount of sal-
ary deductions that would have been made if 
such deductions had been made for 18 months 
prior to the death of the judge or magistrate 
judge of the Tax Court.’’. 
(b) 
DEFINITION
OF
ASSASSINATION.—Section 
7448(a) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new paragraph: 
‘‘(10) The terms ‘assassinated’ and ‘assassina-
tion’ mean the killing of a judge or magistrate judge 
of the Tax Court that is motivated by the perform-
ance by the judge or magistrate judge of the Tax 
Court of his or her official duties.’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(c) DETERMINATION
OF
ASSASSINATION.—Sub-
section (i) of section 7448 of the Internal Revenue Code 
of 1986 is amended— 
(1) by striking ‘‘OF DEPENDENCY AND DIS-
ABILITY.—Questions’’ and inserting ‘‘BY
CHIEF 
JUDGE.— 
‘‘(1) DEPENDENCY
AND
DISABILITY.—Ques-
tions’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) ASSASSINATION.—The chief judge shall 
determine whether the killing of a judge or mag-
istrate judge of the Tax Court was an assassination, 
subject to review only by the Tax Court. The head 
of any Federal agency that investigates the killing of 
a judge or magistrate judge of the Tax Court shall 
provide to the chief judge any information that 
would assist the chief judge in making such a deter-
mination.’’. 
(d) COMPUTATION OF ANNUITIES.—Subsection (m) 
of section 7448 of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘ANNUITIES.—The annuity’’ 
and inserting ‘‘ANNUITIES.— 
‘‘(1) IN GENERAL.—The annuity’’; 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(2) by striking ‘‘the sum of (1) 1.5 percent’’ 
and inserting ‘‘the sum of— 
‘‘(A) 1.5 percent’’; 
(3) by striking ‘‘and (2) three-fourths of 1 per-
cent’’ and inserting ‘‘and 
‘‘(B) three-fourths of 1 percent’’; 
(4) by striking ‘‘prior allowable service, except 
that’’ and inserting ‘‘prior allowable service, 
‘‘except that’’; and 
(5) by adding at the end the following new 
paragraph: 
‘‘(2) ASSASSINATED JUDGES AND MAGISTRATE 
JUDGES
OF
THE
TAX
COURT.—In the case of a 
judge or magistrate judge of the Tax Court who is 
assassinated and who has served less than 18 
months, the annuity of the surviving spouse of such 
judge or magistrate judge of the Tax Court shall be 
based upon the average annual salary received by 
such judge or magistrate judge of the Tax Court for 
judicial service.’’. 
(e) OTHER BENEFITS.—Section 7448 of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subsection: 
‘‘(u) OTHER BENEFITS
IN CASE
OF ASSASSINA-
TION.—In the case of a judge or magistrate judge of the 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
Tax Court who is assassinated, an annuity shall be paid 
under this section notwithstanding a survivor’s eligibility 
for or receipt of benefits under chapter 81 of title 5, 
United States Code, except that the annuity for which a 
surviving spouse is eligible under this section shall be re-
duced to the extent that the total benefits paid under this 
section and chapter 81 of that title for any year would 
exceed the current salary for that year of the office of the 
judge or magistrate judge of the Tax Court.’’. 
SEC. 303. COORDINATION OF RETIREMENT AND SURVIVOR 
ANNUITY WITH THE FEDERAL EMPLOYEES 
RETIREMENT SYSTEM. 
(a) RETIREMENT.—Section 7447 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘section 8331(8)’’ in subsection 
(g)(2)(C) and inserting ‘‘sections 8331(8) and 
8401(19)’’; and 
(2) by striking ‘‘Civil Service Commission’’ both 
places it appears in subsection (i)(2) and inserting 
‘‘Office of Personnel Management’’. 
(b) ANNUITIES TO SURVIVING SPOUSES AND DE-
PENDENT CHILDREN.—Section 7448 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘section 8332’’ in subsection (d) 
and inserting ‘‘sections 8332 and 8411’’; and 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(2) by striking ‘‘section 8332’’ in subsection (n) 
and inserting ‘‘sections 8332 and 8411’’. 
SEC. 304. LIMIT ON TEACHING COMPENSATION OF RE-
TIRED JUDGES. 
(a) IN GENERAL.—Section 7447 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(k) 
TEACHING
COMPENSATION
OF
RETIRED 
JUDGES.—For purposes of the limitation under section 
501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 
App.), any compensation for teaching approved under sec-
tion 502(a)(5) of such Act shall not be treated as outside 
earned income when received by a judge of the United 
States Tax Court who has retired under subsection (b) 
for teaching performed during any calendar year for which 
such a judge has met the requirements of subsection (c), 
as certified by the chief judge.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to any individual serving as a re-
tired judge of the United States Tax Court on or after 
the date of the enactment of this Act. 
SEC. 305. GENERAL PROVISIONS RELATING TO MAG-
ISTRATE JUDGES OF THE TAX COURT. 
(a) TITLE OF SPECIAL TRIAL JUDGE CHANGED TO 
MAGISTRATE JUDGE OF THE TAX COURT.—The heading 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
of section 7443A of the Internal Revenue Code of 1986 
is amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 
inserting 
‘‘MAGISTRATE
JUDGES
OF
THE
TAX 
COURT’’. 
(b) APPOINTMENT, TENURE, AND REMOVAL.—Sub-
section (a) of section 7443A of the Internal Revenue Code 
of 1986 is amended to read as follows: 
‘‘(a) APPOINTMENT, TENURE, AND REMOVAL.— 
‘‘(1) APPOINTMENT.—The chief judge may, 
from time to time, appoint and reappoint magistrate 
judges of the Tax Court for a term of 8 years. The 
magistrate judges of the Tax Court shall proceed 
under such rules as may be promulgated by the Tax 
Court. 
‘‘(2) REMOVAL.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), removal of a magistrate 
judge of the Tax Court during the term for 
which such magistrate judge is appointed shall 
be only for incompetency, misconduct, neglect 
of duty, or physical or mental disability. Re-
moval shall not occur unless a majority of all 
the judges of the Tax Court concur in the order 
of removal. Before any order of removal shall 
be entered, a full specification of the charges 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
shall be furnished to the magistrate judge of 
the Tax Court, and such magistrate judge shall 
be accorded by the judges of the Tax Court an 
opportunity to be heard on the charges. 
‘‘(B) TERMINATION OF OFFICE.—The of-
fice of a magistrate judge of the Tax Court 
shall be terminated if the judges of the Tax 
Court determine that the services performed by 
such magistrate judge of the Tax Court are no 
longer needed.’’. 
(c) SALARY.—Subsection (d) of section 7443A of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(d) SALARY.—Each magistrate judge of the Tax 
Court shall receive salary— 
‘‘(1) at a rate equal to 92 percent of the rate 
for judges of the Tax Court, and 
‘‘(2) in the same installments as such judges.’’. 
(d) EXEMPTION FROM FEDERAL LEAVE PROVI-
SIONS.—Section 7443A of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subsection: 
‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI-
SIONS.— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
‘‘(1) IN GENERAL.—A magistrate judge of the 
Tax Court shall be exempt from the provisions of 
subchapter I of chapter 63 of title 5, United States 
Code. 
‘‘(2) TREATMENT OF UNUSED LEAVE.— 
‘‘(A) AFTER
SERVICE
AS
MAGISTRATE 
JUDGE OF THE TAX COURT.—If an individual 
who is exempted under paragraph (1) from the 
subchapter referred to in such paragraph was 
previously subject to such subchapter and, with-
out a break in service, again becomes subject to 
such subchapter on completion of the individ-
ual’s service as a magistrate judge of the Tax 
Court, the unused annual leave and sick leave 
standing to the individual’s credit at the time 
such individual became a magistrate judge of 
the Tax Court is deemed to have remained to 
the individual’s credit. 
‘‘(B) COMPUTATION
OF
ANNUITY.—In 
computing an annuity under section 8339 or 
8415 of title 5, United States Code, the total 
service of an individual specified in subpara-
graph (A) who retires on an immediate annuity 
or dies leaving a survivor or survivors entitled 
to an annuity includes, without regard to the 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
limitations imposed by subsection (f) of section 
8339 of such title 5, the days of unused sick 
leave standing to the individual’s credit at the 
time such individual became a magistrate judge 
of the Tax Court, except that such days will not 
be counted in determining average pay or annu-
ity eligibility. 
‘‘(C) LUMP SUM PAYMENT.—Any accumu-
lated and current accrued annual leave or vaca-
tion balances credited to a magistrate judge of 
the Tax Court as of the date of the enactment 
of this subsection shall be paid in a lump sum 
at the time of separation from service pursuant 
to the provisions and restrictions set forth in 
section 5551 of such title 5 and related provi-
sions referred to in such section.’’. 
(e) CONTEMPT AUTHORITY.—Section 7443A of the 
Internal Revenue Code of 1986, as amended by this sec-
tion, is amended by adding at the end the following new 
subsection: 
‘‘(g) INCIDENTAL POWERS.—A magistrate judge of 
the Tax Court appointed under this section shall have the 
power to punish for contempt of the authority of the Tax 
Court as provided in section 7456(c), except the sentence 
imposed by such a magistrate judge of the Tax Court for 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
any contempt shall not exceed the penalties for a Class 
C misdemeanor as set forth in sections 3571(b)(6) and 
3581(b)(8) of title 18, United States Code. This sub-
section shall not be construed to limit the authority of a 
magistrate judge of the Tax Court to order sanctions 
under any other statute or any rule of the Tax Court pre-
scribed pursuant to section 7453.’’. 
(f) CONFORMING AMENDMENTS.— 
(1) The heading of subsection (b) of section 
7443A of the Internal Revenue Code of 1986 is 
amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 
inserting ‘‘MAGISTRATE
JUDGES
OF
THE
TAX 
COURT’’. 
(2) Subsection (b) of section 7443A of such 
Code is amended by striking ‘‘special trial judges of 
the court’’ and inserting ‘‘magistrate judges of the 
Tax Court’’. 
(3) Subsection (c) of section 7443A of such 
Code is amended by striking ‘‘special trial judge’’ 
and inserting ‘‘magistrate judge of the Tax Court’’. 
(4) Subsection (e) of section 7443A of such 
Code is amended by striking ‘‘special trial judges’’ 
and inserting ‘‘magistrate judges of the Tax Court’’. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
(5) The item relating to section 7443A in the 
table of sections for part I of subchapter C of chap-
ter 76 of such Code is amended to read as follows: 
‘‘Sec. 7443A. Magistrate judges of the Tax Court.’’. 
(6) The heading of section 7448 of such Code 
is amended by striking ‘‘SPECIAL TRIAL JUDGES’’ 
and inserting ‘‘MAGISTRATE
JUDGES
OF
THE 
TAX COURT’’. 
(7) Section 7448 of such Code is amended— 
(A) by striking ‘‘special trial judge’s’’ each 
place it appears in subsections (a)(6), (c)(1), 
(d), and (m)(1) and inserting ‘‘magistrate judge 
of the Tax Court’s’’; and 
(B) by striking ‘‘special trial judge’’ each 
place it appears other than in subsection (n) 
and inserting ‘‘magistrate judge of the Tax 
Court’’. 
(8) Subsection (n) of section 7448 of such Code 
is amended to read as follows: 
‘‘(n) INCLUDIBLE SERVICE.—Subject to the provi-
sions of subsection (d), the years of service of a judge or 
magistrate judge of the Tax Court which are allowable as 
the basis for calculating the amount of the annuity of such 
judge or magistrate judge’s surviving spouse shall include 
the judge or magistrate judge’s years of service— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
100 
‘‘(1) as a judge or magistrate judge of the Tax 
Court, a special trial judge of the Tax Court, or a 
judge of the Tax Court of the United States, 
‘‘(2) pursuant to any appointment under sec-
tion 7443A, 
‘‘(3) as a Senator, Representative, Delegate, or 
Resident Commissioner in Congress, 
‘‘(4) as a member of the Armed Forces of the 
United States (not including any service for which 
credit is allowed for purposes of retirement or re-
tired pay under any other provision of law), and 
‘‘(5) in any other civilian service within the pur-
view of section 8332 of title 5, United States Code. 
For purposes of paragraph (4), not more than 5 years of 
service shall be taken into account.’’. 
(9) The item relating to section 7448 in the 
table of sections for part I of subchapter C of chap-
ter 76 of such Code is amended to read as follows: 
‘‘Sec. 7448. Annuities to surviving spouses and dependent children of judges 
and magistrate judges of the Tax Court.’’. 
(10) Subsection (a) of section 7456 of such 
Code is amended— 
(A) by striking ‘‘special trial judge’’ each 
place it appears and inserting ‘‘magistrate 
judge’’; and 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
101 
(B) by striking ‘‘(or by the clerk’’ and in-
serting ‘‘of the Tax Court (or by the clerk’’. 
(11) Subsection (a) of section 7466 of such 
Code is amended by striking ‘‘special trial judge’’ 
and inserting ‘‘magistrate judge’’. 
(12) Section 7470A of such Code is amended 
by striking ‘‘special trial judges’’ both places it ap-
pears in subsections (a) and (b) and inserting ‘‘mag-
istrate judges’’. 
(13) Subparagraph (A) of section 7471(a)(2) of 
such Code is amended by striking ‘‘special trial 
judges’’ and inserting ‘‘magistrate judges’’. 
(14) Subsection (c) of section 7471 of such 
Code is amended— 
(A) by striking ‘‘SPECIAL TRIAL JUDGES’’ 
in the heading and inserting ‘‘MAGISTRATE 
JUDGES OF THE TAX COURT’’; and 
(B) by striking ‘‘special trial judges’’ and 
inserting ‘‘magistrate judges’’. 
(g) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to individuals serving as spe-
cial trial judges of the United States Tax Court on 
or after the day before the date of enactment of this 
Act. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
102 
(2) APPOINTMENT
SAVINGS
PROVISION.—Any 
individual serving as a special trial judge of the 
United States Tax Court as of the day before the 
date of the enactment of this Act shall be considered 
to have been appointed as a magistrate judge of the 
Tax Court under section 7443A of the Internal Rev-
enue Code of 1986 on such date of enactment, and 
service as a special trial judge of the Tax Court be-
fore such date of enactment shall be considered to 
be service as a magistrate judge of the Tax Court 
for purposes of any provision of law relating to 
length of service. 
SEC. 306. LIFE INSURANCE FOR MAGISTRATE JUDGES OF 
THE TAX COURT AGE 65 OR OLDER. 
Section 7472 of the Internal Revenue Code of 1986 
is amended by striking ‘‘its judges’’ in the second sentence 
and inserting ‘‘the judges and magistrate judges of the 
Tax Court’’. 
SEC. 307. RETIREMENT AND ANNUITY PROGRAM. 
(a) RETIREMENT AND ANNUITY PROGRAM.—Part I 
of subchapter C of chapter 76 of the Internal Revenue 
Code of 1986 is amended by inserting after section 7443A 
the following new section: 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
103 
‘‘SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF 
THE TAX COURT. 
‘‘(a) RETIREMENT.— 
‘‘(1) IN GENERAL.—Each magistrate judge of 
the Tax Court who makes an election under this sec-
tion shall receive an annuity at the same rate and 
in the same manner as magistrate judges of the dis-
trict courts of the United States pursuant to section 
377 of title 28, United States Code. 
‘‘(2) RULES OF APPLICATION.—For purposes of 
subsection (a), section 377 of title 28, United States 
Code, shall be applied with the following modifica-
tions: 
‘‘(A) By substituting— 
‘‘(i) ‘magistrate judge of the Tax 
Court’ for ‘judicial official’, ‘judicial offi-
cer’, and ‘magistrate judge’ each place 
such terms appear, 
‘‘(ii) ‘magistrate judge of the Tax 
Court’s’ for ‘magistrate judge’s’ each place 
it appears, 
‘‘(iii) ‘chief judge of the Tax Court’ 
for ‘Administrative Office of the United 
States Courts’, ‘Director of the Adminis-
trative Office of the United States Courts’, 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
105 
‘‘(b) 1-YEAR FORFEITURE FOR FAILURE TO PER-
FORM JUDICIAL DUTIES.—Subject to subparagraph (B) 
of section 377(m)(1) of title 28, United States Code, any 
magistrate judge of the Tax Court who retires under this 
section and who fails to perform judicial duties required 
of such individual by section 7443C shall forfeit all rights 
to an annuity under this section for a 1-year period which 
begins on the 1st day on which such individual fails to 
perform such duties. 
‘‘(c) TAX COURT JUDICIAL OFFICERS’ RETIREMENT 
FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund which 
shall be known as the ‘Tax Court Judicial Officers’ 
Retirement Fund’. The Fund is appropriated for the 
payment of annuities, refunds, and other payments 
under this section. 
‘‘(2) INVESTMENT
OF
FUND.—The Secretary 
shall invest, in interest-bearing securities of the 
United States, such currently available portions of 
the Tax Court Judicial Officers’ Retirement Fund as 
are not immediately required for payments from the 
Fund. The income derived from these investments 
constitutes a part of the Fund. 
‘‘(3) UNFUNDED LIABILITY.— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
106 
‘‘(A) IN
GENERAL.—Not later than the 
close of each fiscal year, there shall be depos-
ited in the Tax Court Judicial Officers’ Retire-
ment Fund amounts required to reduce to zero 
the unfunded liability, if any, of such Fund. 
‘‘(B) UNFUNDED
LIABILITY.—For pur-
poses of subparagraph (A), the term ‘unfunded 
liability’ means the amount estimated by the 
Secretary to be equal to the excess (as of the 
close of the fiscal year involved) of— 
‘‘(i) the present value of all benefits 
payable from the Tax Court Judicial Offi-
cers’ Retirement Fund, over 
‘‘(ii) the sum of— 
‘‘(I) the present value of future 
deductions to be withheld under this 
section from the basic pay of mag-
istrate judges of the Tax Court, plus 
‘‘(II) the balance in such Fund 
as of the close of such fiscal year. 
‘‘(d) PARTICIPATION IN THRIFT SAVINGS PLAN.— 
‘‘(1) ELECTION
TO
CONTRIBUTE.—A mag-
istrate judge of the Tax Court may elect to con-
tribute out of such individual’s basic pay to the 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
107 
Thrift Savings Fund established by section 8437 of 
title 5, United States Code. 
‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.— 
Except as otherwise provided in this subsection, the 
provisions of subchapters III and VII of chapter 84 
of such title 5 shall apply with respect to a mag-
istrate judge of the Tax Court who makes an elec-
tion under paragraph (1). 
‘‘(3) SPECIAL RULES.— 
‘‘(A) 
AMOUNT
CONTRIBUTED.—The 
amount contributed by a magistrate judge of 
the Tax Court to the Thrift Savings Plan in 
any pay period shall not exceed the maximum 
percentage of such magistrate judge’s basic pay 
for such period as allowable under section 
8440f of such title 5. 
‘‘(B) CONTRIBUTIONS
FOR
BENEFIT
OF 
MAGISTRATE JUDGE OF THE TAX COURT.—No 
contributions under section 8432(c) of such 
title 5 shall be made for the benefit of a mag-
istrate judge of the Tax Court who has filed an 
election to receive an annuity under this sec-
tion. 
‘‘(C) APPLICABILITY OF RULES RELATING 
TO ANNUITY OF A CHILD.—Section 8433(b) of 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
108 
such title 5 applies with respect to a magistrate 
judge of the Tax Court who makes an election 
under paragraph (1) and who— 
‘‘(i) retires entitled to an immediate 
annuity under this section (including a dis-
ability annuity under this section), 
‘‘(ii) retires before attaining age 65 
but is entitled, upon attaining age 65, to 
an annuity under this section, or 
‘‘(iii) retires before becoming entitled 
to an immediate annuity, or an annuity 
upon attaining age 65, under this section. 
‘‘(D) RETIREMENT AS SEPARATION FROM 
SERVICE.—With respect to a magistrate judge 
of the Tax Court to whom this subsection ap-
plies, retirement under this section is a separa-
tion from service for purposes of subchapters 
III and VII of chapter 84 of such title 5. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘retirement’ and ‘retire’ include 
removal from office under section 7443A(a)(2) on 
the sole ground of mental or physical disability. 
‘‘(5) OFFSET.—In the case of a magistrate 
judge of the Tax Court who receives a distribution 
from the Thrift Savings Plan and who later receives 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
109 
an annuity under this section, the annuity shall be 
offset by an amount equal to the amount which rep-
resents the Government’s contribution to the individ-
ual’s Thrift Savings Account during years of service 
as a full-time judicial officer under the Federal Em-
ployees Retirement System, without regard to earn-
ings attributable to such amount. Where such an 
offset would exceed 50 percent of the annuity to be 
received in the first year, the offset may be divided 
equally over the first 2 years in which the individual 
receives the annuity. 
‘‘(6) EXCEPTION.—Notwithstanding clauses (i) 
and (ii) of paragraph (3)(C), if any magistrate judge 
of the Tax Court retires under circumstances mak-
ing such magistrate judge of the Tax Court eligible 
to make an election under subsection (b) of section 
8433 of such title 5, and the nonforfeitable account 
balance of such magistrate judge of the Tax Court 
is less than an amount which the Executive Director 
of the Office of Personnel Management prescribes by 
regulation, the Executive Director shall pay the non-
forfeitable account balance to the participant in a 
single payment. 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
110 
‘‘(e) COORDINATION WITH TITLE 5.—A magistrate 
judge of the Tax Court who elects to receive an annuity 
under this section— 
‘‘(1) shall not be subject to deductions and con-
tributions otherwise required by section 8334(a) of 
title 5 United States Code, 
‘‘(2) shall be excluded from the application of 
chapter 84 (other than subchapters III and VII) of 
such title 5, and 
‘‘(3) is entitled to a lump-sum credit under sec-
tion 8342(a) or 8424 of such title 5, as the case 
may be.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 3121(b)(5)(E) of the Internal Rev-
enue Code of 1986 is amended by inserting ‘‘or 
magistrate judge’’ before ‘‘of the United States Tax 
Court’’. 
(2) Section 210(a)(5)(E) of the Social Security 
Act (42 U.S.C. 410(a)(5)(E)) is amended by insert-
ing ‘‘or a magistrate judge of the Tax Court who 
files an election under section 7443B(a) of the Inter-
nal Revenue Code of 1986’’ after ‘‘of the United 
States Tax Court’’. 
(3) Section 7448(b)(2) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
111 
‘‘(2) MAGISTRATE
JUDGES
OF
THE
TAX 
COURT.—Any magistrate judge of the Tax Court 
may by written election filed with the chief judge 
bring himself or herself within the purview of this 
section. Such election shall be filed while such indi-
vidual is a magistrate judge of the Tax Court.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part I of subchapter C of chapter 76 of the Internal 
Revenue Code of 1986 is amended by inserting after the 
item relating to section 7443A the following new item: 
‘‘Sec. 7443B. Retirement for magistrate judges of the Tax Court.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 308. PROVISIONS FOR RECALL. 
(a) IN GENERAL.—Part I of subchapter C of chapter 
76 of the Internal Revenue Code of 1986, as amended by 
section 307, is amended by inserting after section 7443B 
the following new section: 
‘‘SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX 
COURT. 
‘‘(a) RECALLING OF RETIRED MAGISTRATE JUDGES 
OF THE TAX COURT.—Any individual who has retired 
pursuant to section 7443B or the applicable provisions of 
title 5 or 28, United States Code, upon reaching the age 
and service requirements established under such titles 5 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
112 
and 28, may be called upon by the chief judge to perform 
such judicial duties with the Tax Court as may be re-
quested of such individual for a period or periods specified 
by the chief judge, except that in the case of any such 
individual— 
‘‘(1) the aggregate of such periods in any 1 cal-
endar year shall not (without the consent of such in-
dividual) exceed 90 calendar days, and 
‘‘(2) such individual shall be relieved of per-
forming such duties during any period in which ill-
ness or disability precludes the performance of such 
duties. 
Any act, or failure to act, by an individual performing ju-
dicial duties pursuant to this subsection shall have the 
same force and effect as if it were the act (or failure to 
act) of a magistrate judge of the Tax Court. 
‘‘(b) COMPENSATION.—For the year in which a pe-
riod of recall occurs, the magistrate judge of the Tax 
Court shall receive, in addition to the annuity provided 
under the provisions of section 7443B, an amount equal 
to the difference between that annuity and the current sal-
ary of the office to which the magistrate judge of the Tax 
Court is recalled (and allowances for travel and other ex-
penses of the magistrate judge of the Tax Court). The 
annuity for years after the year in which a period of recall 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00112
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
113 
occurs of the magistrate judge of the Tax Court who com-
pletes such a period of service, who is not recalled in a 
subsequent year, and who retired under section 7443B, 
shall be equal to the salary in effect at the end of the 
year in which the period of recall occurred for the office 
from which such magistrate judge of the Tax Court re-
tired. 
‘‘(c) RULEMAKING AUTHORITY.—The provisions of 
this section shall be implemented under such rules and 
regulations as may be promulgated by the Tax Court.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part I of subchapter C of chapter 76 of the Internal 
Revenue Code of 1986, as amended by section 307, is 
amended by inserting after the item relating to section 
7443B the following new item: 
‘‘Sec. 7443C. Recall of magistrate judges of the Tax Court.’’. 
TITLE IV—OTHER BENEFITS 
SEC. 401. BENEFITS PROVIDED TO VOLUNTEER FIRE-
FIGHTERS AND EMERGENCY MEDICAL RE-
SPONDERS. 
(a) INCREASE IN DOLLAR LIMITATION ON QUALI-
FIED
PAYMENTS.—Subparagraph 
(B) 
of 
section 
139B(c)(2) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$30’’ and inserting ‘‘$50’’. 
(b) EXTENSION.—Subsection (d) of section 139B of 
the Internal Revenue Code of 1986 is amended by striking 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00113
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
114 
‘‘beginning after December 31, 2010.’’ and inserting ‘‘be-
ginning— 
‘‘(1) after December 31, 2010, and before Jan-
uary 1, 2019, or 
‘‘(2) after December 31, 2019.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
TITLE V—REVENUE PROVISIONS 
SEC. 501. MODIFICATIONS OF REQUIRED DISTRIBUTION 
RULES FOR PENSION PLANS. 
(a) MODIFICATION OF RULES WHERE EMPLOYEE 
DIES BEFORE ENTIRE DISTRIBUTION.— 
(1) IN GENERAL.—Section 401(a)(9) of the In-
ternal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(H) SPECIAL RULES FOR CERTAIN DE-
FINED CONTRIBUTION PLANS.— 
‘‘(i) IN GENERAL.—In the case of dis-
tributions from a defined contribution 
plan, a trust forming part of such plan 
shall not constitute a qualified trust under 
this section unless the plan provides that, 
if— 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00114
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
115 
‘‘(I) an employee dies before the 
distribution of the employee’s interest 
(whether or not such distribution has 
begun in accordance with subpara-
graph (A)), and 
‘‘(II) the aggregate account bal-
ances to the credit of the employee 
under all defined contribution plans, 
determined as of the date of the em-
ployee’s death, exceeds $450,000, 
so much of the entire interest of the em-
ployee as exceeds the dollar amount in sub-
clause (II) will be distributed within 5 
years after the death of such employee. 
‘‘(ii) ALLOCATION OF LIMITATION.—If 
an employee has an account under more 
than 1 defined contribution plan, the 
$450,000 amount under clause (i)(II) shall 
be allocated among all such plans, as pro-
vided in regulations prescribed by the Sec-
retary, for purposes of applying clause (i). 
‘‘(iii) TREATMENT
OF
REMAINING 
AMOUNT.—The portion of the employee’s 
interest distributed under clause (i) shall 
not be taken into account for purposes of 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00115
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS
116 
determining the rapidity or the method of 
distribution of any portion of the interest 
of the employee to which clause (i) does 
not apply. 
‘‘(iv) MULTIPLE BENEFICIARIES.—In 
the case of an employee who has more 
than 1 beneficiary, the amount of the por-
tion required to be distributed under clause 
(i) which shall be treated as payable to (or 
for the benefit of) such beneficiary is the 
amount which bears the same ratio to the 
total amount of such portion as— 
‘‘(I) the portion of the employee’s 
entire interest (determined as of the 
date of the employee’s death) which is 
payable to (or for the benefit of) such 
beneficiary, bears to 
‘‘(II) the amount of the employ-
ee’s entire interest (so determined). 
‘‘(v) EXCEPTION FOR ELIGIBLE DES-
IGNATED BENEFICIARIES.—If— 
‘‘(I) any portion of the employ-
ee’s interest is payable to (or for the 
benefit of) an eligible designated bene-
ficiary, 
VerDate Sep 11 2014 
22:13 Mar 16, 2018
Jkt 079200
PO 00000
Frm 00116
Fmt 6652
Sfmt 6201
E:\BILLS\H5282.IH
H5282
srobinson on DSK3G9T082PROD with BILLS