SEC. 108. MULTIPLE EMPLOYER 403(b) PLANS. 
(a) IN GENERAL.—Section 403(b) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(15) MULTIPLE EMPLOYER PLANS.— 
‘‘(A) IN GENERAL.—Except in the case of a 
church plan, this subsection shall not be treated 
as failing to apply to an annuity contract solely 
by reason of such contract being purchased under 
a plan maintained by more than 1 employer. 
‘‘(B) TREATMENT OF EMPLOYERS FAILING 
TO MEET REQUIREMENTS OF PLAN.— 
‘‘(i) IN GENERAL.—In the case of a 
plan maintained by more than 1 employer, 
this subsection shall not be treated as fail-
ing to apply to an annuity contract held 
under such plan merely because of one or 
more employers failing to meet the require-
ments of this subsection if such plan satis-
fies rules similar to the rules of section 
413(e)(2) with respect to any such employer 
failure. 
‘‘(ii) ADDITIONAL
REQUIREMENTS
IN 
CASE
OF
NON-GOVERNMENTAL
PLANS.—A 
plan shall not be treated as meeting the re-
quirements of this subparagraph unless the 
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plan meets the requirements of subpara-
graph (A) or (B) of section 413(e)(1), except 
in the case of a multiple employer plan 
maintained solely by any of the following: 
A State, a political subdivision of a State, 
or an agency or instrumentality of any one 
or more of the foregoing.’’. 
(b) ANNUAL REGISTRATION
FOR 403(b) MULTIPLE 
EMPLOYER PLAN.—Section 6057 of such Code is amended 
by redesignating subsection (g) as subsection (h) and by in-
serting after subsection (f) the following new subsection: 
‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS TREATED AS 
ONE PLAN.—In the case of annuity contracts to which this 
section applies and to which section 403(b) applies by rea-
son of the plan under which such contracts are purchased 
meeting the requirements of paragraph (15) thereof, such 
plan shall be treated as a single plan for purposes of this 
section.’’. 
(c) ANNUAL INFORMATION RETURNS FOR 403(b) MUL-
TIPLE EMPLOYER PLAN.—Section 6058 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(f) as subsection (g) and by inserting after subsection (e) 
the following new subsection: 
‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS TREATED AS 
ONE PLAN.—In the case of annuity contracts to which this 
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section applies and to which section 403(b) applies by rea-
son of the plan under which such contracts are purchased 
meeting the requirements of paragraph (15) thereof, such 
plan shall be treated as a single plan for purposes of this 
section.’’. 
(d) AMENDMENTS
TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) TREATED AS POOLED EMPLOYER PLAN.— 
(A) IN GENERAL.—Section 3(43)(A) of the 
Employee Retirement Income Security Act of 
1974 is amended— 
(i) in clause (ii), by striking ‘‘section 
501(a) of such Code or’’ and inserting 
‘‘501(a) of such Code, a plan that consists 
of contracts described in section 403(b) of 
such Code, or’’; and 
(ii) in the flush text at the end, by 
striking ‘‘the plan.’’ and inserting ‘‘the 
plan, but such term shall include any pro-
gram (other than a governmental plan) 
maintained for the benefit of the employees 
of more than 1 employer that consists of 
contracts described in section 403(b) of such 
Code and that meets the requirements of 
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subparagraph 
(A) 
or 
(B) 
of 
section 
413(e)(1) of such Code.’’. 
(B) CONFORMING
AMENDMENTS.—Sections 
3(43)(B)(v)(II) and 3(44)(A)(i)(I) of such Act 
are each amended by striking ‘‘section 401(a) of 
such Code or’’ and inserting ‘‘401(a) of such 
Code, a plan that consists of contracts described 
in section 403(b) of such Code, or’’. 
(2) FIDUCIARIES.—Section 3(43)(B)(ii) of such 
Act is amended— 
(A) by striking ‘‘trustees meeting the re-
quirements of section 408(a)(2) of the Internal 
Revenue Code of 1986’’ and inserting ‘‘trustees 
(or other fiduciaries in the case of a plan that 
consists of contracts described in section 403(b) 
of the Internal Revenue Code of 1986) meeting 
the requirements of section 408(a)(2) of such 
Code’’, and 
(B) by striking ‘‘holding’’ and inserting 
‘‘holding (or causing to be held under the terms 
of a plan consisting of such contracts)’’. 
(e) REGULATIONS
RELATING
TO
PLAN
TERMI-
NATION.—The Secretary of the Treasury (or the Secretary’s 
designee) shall prescribe such regulations as may be nec-
essary to clarify the treatment of a plan termination by 
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an employer in the case of plans to which section 403(b)(15) 
of such Code applies. 
(f) MODIFICATION
OF
MODEL
PLAN
LANGUAGE. 
ETC.— 
(1) PLAN NOTIFICATIONS.—The Secretary of the 
Treasury (or the Secretary’s designee) shall modify 
the model plan language published under section 
413(e)(5) of the Internal Revenue Code of 1986 to in-
clude language which notifies participating employers 
described in section 501(c)(3), and which are exempt 
from tax under section 501(a), that the plan is subject 
to the Employee Retirement Income Security Act of 
1974 and that such employer is a plan sponsor with 
respect to its employees participating in the multiple 
employer plan and, as such, has certain fiduciary du-
ties with respect to the plan and to its employees. 
(2) MODEL
PLANS
FOR
MULTIPLE
EMPLOYER 
403(b) NON-GOVERNMENTAL
PLANS.—For plans to 
which section 403(b)(15)(A) of the Internal Revenue 
Code of 1986 applies (other than a plan maintained 
for its employees by a State, a political subdivision 
of a State, or an agency or instrumentality of any 
one or more of the foregoing) the Secretary shall pub-
lish model plan language similar to model plan lan-
guage published under section 413(e)(5) of such Code. 
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(3) EDUCATIONAL OUTREACH TO EMPLOYERS EX-
EMPT FROM TAX.—The Secretary shall provide edu-
cation and outreach to increase awareness to employ-
ers described in section 501(c)(3), and which are ex-
empt from tax under section 501(a), that multiple 
employer plans are subject to the Employee Retire-
ment Income Security Act of 1974 and that such em-
ployer is a plan sponsor with respect to its employees 
participating in the multiple employer plan and, as 
such, has certain fiduciary duties with respect to the 
plan and to its employees. 
(g) NO INFERENCE WITH RESPECT
TO CHURCH 
PLANS.—Regarding any application of section 403(b) of the 
Internal Revenue Code of 1986 to an annuity contract pur-
chased under a church plan (as defined in section 414(e) 
of such Code) maintained by more than 1 employer, or to 
any application of rules similar to section 413(e) of such 
Code to such a plan, no inference shall be made from section 
403(b)(15)(A) of such Code (as added by this Act) not ap-
plying to such plans. 
(h) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2021. 
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(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 requirement 
applicable under such Code with respect to one em-
ployer (and its employees) in the case of a plan to 
which section 403(b)(15) applies. 
SEC. 109. TREATMENT OF STUDENT LOAN PAYMENTS AS 
ELECTIVE DEFERRALS FOR PURPOSES OF 
MATCHING CONTRIBUTIONS. 
(a) IN GENERAL.—Section 401(m)(4)(A) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and’’ 
at the end of clause (i), by striking the period at the end 
of clause (ii) and inserting ‘‘, and’’, and by adding at the 
end the following new clause: 
‘‘(iii) subject to the requirements of 
paragraph (13), any employer contribution 
made to a defined contribution plan on be-
half of an employee on account of a quali-
fied student loan payment.’’. 
(b) QUALIFIED STUDENT LOAN PAYMENT.—Section 
401(m)(4) of such Code is amended by adding at the end 
the following new subparagraph: 
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‘‘(D) QUALIFIED
STUDENT
LOAN
PAY-
MENT.—The term ‘qualified student loan pay-
ment’ means a payment made by an employee in 
repayment of a qualified education loan (as de-
fined section 221(d)(1)) incurred by the employee 
to pay qualified higher education expenses, but 
only— 
‘‘(i) to the extent such payments in the 
aggregate for the year do not exceed an 
amount equal to— 
‘‘(I) the limitation applicable 
under section 402(g) for the year (or, if 
lesser, the employee’s compensation (as 
defined in section 415(c)(3)) for the 
year), reduced by 
‘‘(II) the elective deferrals made 
by the employee for such year, and 
‘‘(ii) if the employee certifies to the em-
ployer making the matching contribution 
under this paragraph that such payment 
has been made on such loan. 
For purposes of this subparagraph, the term 
‘qualified higher education expenses’ means the 
cost of attendance (as defined in section 472 of 
the Higher Education Act of 1965, as in effect on 
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the day before the date of the enactment of the 
Taxpayer Relief Act of 1997) at an eligible edu-
cational institution (as defined in section 
221(d)(2)).’’. 
(c) MATCHING CONTRIBUTIONS FOR QUALIFIED STU-
DENT LOAN PAYMENTS.—Section 401(m) of such Code is 
amended by redesignating paragraph (13) as paragraph 
(14), and by inserting after paragraph (12) the following 
new paragraph: 
‘‘(13) MATCHING
CONTRIBUTIONS
FOR
QUALI-
FIED STUDENT LOAN PAYMENTS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (4)(A)(iii), an employer contribution 
made to a defined contribution plan on account 
of a qualified student loan payment shall be 
treated as a matching contribution for purposes 
of this title if— 
‘‘(i) the plan provides matching con-
tributions on account of elective deferrals at 
the same rate as contributions on account of 
qualified student loan payments, 
‘‘(ii) the plan provides matching con-
tributions on account of qualified student 
loan payments only on behalf of employees 
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otherwise eligible to receive matching con-
tributions on account of elective deferrals, 
‘‘(iii) under the plan, all employees eli-
gible to receive matching contributions on 
account of elective deferrals are eligible to 
receive matching contributions on account 
of qualified student loan payments, and 
‘‘(iv) the plan provides that matching 
contributions on account of qualified stu-
dent loan payments vest in the same man-
ner as matching contributions on account of 
elective deferrals. 
‘‘(B) TREATMENT FOR PURPOSES OF NON-
DISCRIMINATION RULES, ETC.— 
‘‘(i) NONDISCRIMINATION RULES.—For 
purposes of subparagraph (A)(iii), sub-
section (a)(4), and section 410(b), matching 
contributions 
described 
in 
paragraph 
(4)(A)(iii) shall not fail to be treated as 
available to an employee solely because such 
employee does not have debt incurred under 
a qualified education loan (as defined in 
section 221(d)(1)). 
‘‘(ii) STUDENT
LOAN
PAYMENTS
NOT 
TREATED AS PLAN CONTRIBUTION.—Except 
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as provided in clause (iii), a qualified stu-
dent loan payment shall not be treated as a 
contribution to a plan under this title. 
‘‘(iii) 
MATCHING
CONTRIBUTION 
RULES.—Solely for purposes of meeting the 
requirements of paragraph (11)(B) or (12) 
of 
this 
subsection, 
or 
paragraph 
(11)(B)(i)(II), (12)(B), or (13)(D) of sub-
section (k), a plan may treat a qualified 
student loan payment as an elective deferral 
or an elective contribution, whichever is ap-
plicable. 
‘‘(iv) ACTUAL DEFERRAL PERCENTAGE 
TESTING.—In determining whether a plan 
meets 
the 
requirements 
of 
subsection 
(k)(3)(A)(ii) for a plan year, the plan may 
apply the requirements of such subsection 
separately with respect to all employees who 
receive matching contributions described in 
paragraph (4)(A)(iii) for the plan year. 
‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE 
CERTIFICATION.—The employer may rely on an 
employee certification of payment under para-
graph (4)(D)(ii).’’. 
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(d) 
SIMPLE
RETIREMENT
ACCOUNTS.—Section 
408(p)(2) of such Code is amended by adding at the end 
the following new subparagraph: 
‘‘(F) 
MATCHING
CONTRIBUTIONS
FOR 
QUALIFIED STUDENT LOAN PAYMENTS.— 
‘‘(i) IN GENERAL.—Subject to the rules 
of clause (iii), an arrangement shall not fail 
to be treated as meeting the requirements of 
subparagraph (A)(iii) solely because under 
the arrangement, solely for purposes of such 
subparagraph, qualified student loan pay-
ments are treated as amounts elected by the 
employee under subparagraph (A)(i)(I) to 
the extent such payments do not exceed— 
‘‘(I) the applicable dollar amount 
under subparagraph (E) (after appli-
cation of section 414(v)) for the year 
(or, if lesser, the employee’s compensa-
tion (as defined in section 415(c)(3)) 
for the year), reduced by 
‘‘(II) any other amounts elected 
by the employee under subparagraph 
(A)(i)(I) for the year. 
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‘‘(ii) QUALIFIED STUDENT LOAN PAY-
MENT.—For purposes of this subpara-
graph— 
‘‘(I) 
IN
GENERAL.—The 
term 
‘qualified student loan payment’ means 
a payment made by an employee in re-
payment of a qualified education loan 
(as defined in section 221(d)(1)) in-
curred by the employee to pay quali-
fied higher education expenses, but 
only if the employee certifies to the em-
ployer making the matching contribu-
tion that such payment has been made 
on such a loan. 
‘‘(II) QUALIFIED
HIGHER
EDU-
CATION EXPENSES.—The term ‘quali-
fied higher education expenses’ has the 
same meaning as when used in section 
401(m)(4)(D). 
‘‘(iii) APPLICABLE RULES.—Clause (i) 
shall apply to an arrangement only if, 
under the arrangement— 
‘‘(I) matching contributions on 
account of qualified student loan pay-
ments are provided only on behalf of 
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employees otherwise eligible to elect 
contributions 
under 
subparagraph 
(A)(i)(I), and 
‘‘(II) all employees otherwise eligi-
ble to participate in the arrangement 
are eligible to receive matching con-
tributions on account of qualified stu-
dent loan payments.’’. 
(e) 403(b) PLANS.—Section 403(b)(12)(A) of such Code 
is amended by adding at the end the following: ‘‘The fact 
that the employer offers matching contributions on account 
of qualified student loan payments as described in section 
401(m)(13) shall not be taken into account in determining 
whether the arrangement satisfies the requirements of clause 
(ii) (and any regulation thereunder).’’. 
(f) 457(b) PLANS.—Section 457(b) of such Code is 
amended by adding at the end the following: ‘‘A plan which 
is established and maintained by an employer which is de-
scribed in subsection (e)(1)(A) shall not be treated as failing 
to meet the requirements of this subsection solely because 
the plan, or another plan maintained by the employer 
which meets the requirements of section 401(a) or 403(b), 
provides for matching contributions on account of qualified 
student loan payments as described in section 401(m)(13).’’. 
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(g) REGULATORY AUTHORITY.—The Secretary shall 
prescribe regulations for purposes of implementing the 
amendments made by this section, including regulations— 
(1) permitting a plan to make matching con-
tributions for qualified student loan payments, as de-
fined in sections 401(m)(4)(D) and 408(p)(2)(F) of 
the Internal Revenue Code of 1986, as added by this 
section, at a different frequency than matching con-
tributions are otherwise made under the plan, pro-
vided that the frequency is not less than annually; 
(2) permitting employers to establish reasonable 
procedures to claim matching contributions for such 
qualified student loan payments under the plan, in-
cluding an annual deadline (not earlier than 3 
months after the close of each plan year) by which a 
claim must be made; and 
(3) promulgating model amendments which 
plans may adopt to implement matching contribu-
tions on such qualified student loan payments for 
purposes of sections 401(m), 408(p), 403(b), and 
457(b) of the Internal Revenue Code of 1986. 
(h) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contributions made for plan years 
beginning after December 31, 2021. 
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SEC. 110. APPLICATION OF CREDIT FOR SMALL EMPLOYER 
PENSION PLAN STARTUP COSTS TO EMPLOY-
ERS WHICH JOIN AN EXISTING PLAN. 
(a) IN GENERAL.—Section 45E(d)(3)(A) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘effective’’ 
and inserting ‘‘effective with respect to the eligible em-
ployer’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to eligible employer plans which become 
effective with respect to the eligible employer after the date 
of the enactment of this Act. 
SEC. 111. MILITARY SPOUSE RETIREMENT PLAN ELIGI-
BILITY CREDIT FOR SMALL EMPLOYERS. 
(a) IN GENERAL.—Subpart D of part IV of subchapter 
A of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section: 
‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGI-
BILITY CREDIT FOR SMALL EMPLOYERS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in the 
case of any eligible small employer, the military spouse re-
tirement plan eligibility credit determined under this sec-
tion for any taxable year is an amount equal to the sum 
of— 
‘‘(1) $250 with respect to each military spouse 
who is an employee of such employer and who is eli-
gible to participate in an eligible defined contribution 
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plan of such employer at any time during such tax-
able year, plus 
‘‘(2) so much of the contributions made by such 
employer to all such plans with respect to such em-
ployee during such taxable year as do not exceed 
$250. 
‘‘(b) LIMITATION.—An individual shall only be taken 
into account as a military spouse under subsection (a) for 
the taxable year which includes the date on which such indi-
vidual began participating in the eligible defined contribu-
tion plan of the employer and the 2 succeeding taxable 
years. 
‘‘(c) ELIGIBLE SMALL EMPLOYER.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘eligible small em-
ployer’ means an eligible employer (as defined in sec-
tion 408(p)(2)(C)(i)(I)). 
‘‘(2) APPLICATION OF 2-YEAR GRACE PERIOD.— 
A 
rule 
similar 
to 
the 
rule 
of 
section 
408(p)(2)(C)(i)(II) shall apply for purposes of this 
section. 
‘‘(d) MILITARY SPOUSE.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘military spouse’ 
means, with respect to any employer, any individual 
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who is married (within the meaning of section 7703 
as of the first date that the employee is employed by 
the employer) to an individual who is a member of 
the uniformed services (as defined section 101(a)(5) of 
title 10, United States Code). For purposes of this sec-
tion, an employer may rely on an employee’s certifi-
cation that such employee’s spouse is a member of the 
uniformed services if such certification provides the 
name, rank, and service branch of such spouse. 
‘‘(2) EXCLUSION OF HIGHLY COMPENSATED EM-
PLOYEES.—With respect to any employer, the term 
‘military spouse’ shall not include any individual if 
such individual is a highly compensated employee of 
such employer (within the meaning of section 414(q)). 
‘‘(e) ELIGIBLE DEFINED CONTRIBUTION PLAN.—For 
purposes of this section, the term ‘eligible defined contribu-
tion plan’ means, with respect to any eligible small em-
ployer, any defined contribution plan (as defined in section 
414(i)) of such employer if, under the terms of such plan— 
‘‘(1) military spouses employed by such employer 
are eligible to participate in such plan not later than 
the date which is 2 months after the date on which 
such individual begins employment with such em-
ployer, and 
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‘‘(2) military spouses who are eligible to partici-
pate in such plan— 
‘‘(A) are immediately eligible to receive an 
amount of employer contributions under such 
plan which is not less the amount of such con-
tributions that a similarly situated participant 
who is not a military spouse would be eligible to 
receive under such plan after 2 years of service, 
and 
‘‘(B) immediately have a nonforfeitable 
right to the employee’s accrued benefit derived 
from employer contributions under such plan. 
‘‘(f) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (b), (c), (m) or (o) of sec-
tion 414 shall be treated as one employer for purposes of 
this section.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (32), by striking 
the period at the end of paragraph (33) and inserting ‘‘, 
plus’’, and by adding at the end the following new para-
graph: 
‘‘(34) in the case of an eligible small employer 
(as defined in section 45U(c)), the military spouse re-
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tirement plan eligibility credit determined under sec-
tion 45U(a).’’. 
(c) SPECIFIED CREDIT FOR PURPOSES OF CERTIFIED 
PROFESSIONAL ORGANIZATIONS.—Section 3511(d)(2) of 
such Code is amended by redesignating subparagraphs (F), 
(G), and (H) as subparagraphs (G), (H), and (I), respec-
tively, and by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(F) section 45U (military spouse retire-
ment plan eligibility credit),’’. 
(d) CLERICAL AMENDMENT.—The table of sections for 
subpart D of part IV of subchapter A of chapter 1 of such 
Code is amended by adding at the end the following new 
item: 
‘‘Sec. 45U. Military spouse retirement plan eligibility credit for small employ-
ers.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 112. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 
CONTRIBUTING TO A PLAN. 
(a) IN
GENERAL.—Subparagraph (A) of section 
401(k)(4) of the Internal Revenue Code of 1986 is amended 
by inserting ‘‘(other than a de minimis financial incen-
tive)’’ after ‘‘any other benefit’’. 
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(b) SECTION 403(b) PLANS.—Subparagraph (A) of sec-
tion 403(b)(12) of such Code, as amended by the preceding 
provisions of this Act, is further amended by adding at the 
end the following: ‘‘A plan shall not fail to satisfy clause 
(ii) solely by reason of offering a de minimis financial in-
centive to employees to elect to have the employer make con-
tributions pursuant to a salary reduction agreement.’’. 
(c) EXEMPTION FROM PROHIBITED TRANSACTION 
RULES.—Subsection (d) of section 4975 of such Code is 
amended by striking ‘‘or’’ at the end of paragraph (22), 
by striking the period at the end of paragraph (23) and 
inserting ‘‘, or’’, and by adding at the end the following 
new paragraph: 
‘‘(24) the provision of a de minimis financial in-
centive 
described 
in 
section 
401(k)(4)(A) 
or 
403(b)(12)(A).’’. 
(d) AMENDMENT OF EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Subsection (b) of section 408 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1108(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(21) The provision of a de minimis financial 
incentive 
described 
in 
section 
401(k)(4)(A) 
or 
403(b)(12)(A) of the Internal Revenue Code of 1986.’’. 
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(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to plan years beginning 
after the date of enactment of this Act. 
SEC. 113. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 
ELECTIVE DEFERRAL FAILURES. 
(a) IN GENERAL.—Section 414 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following 
new subsection: 
‘‘(aa) CORRECTING AUTOMATIC CONTRIBUTION ER-
RORS.— 
‘‘(1) IN GENERAL.—Any plan or arrangement 
shall not fail to be treated as a plan described in sec-
tions 401(a), 403(b), 408, or 457(b), as applicable, 
solely by reason of a corrected error. 
‘‘(2) CORRECTED
ERROR
DEFINED.—For pur-
poses of this subsection, the term ‘corrected error’ 
means a reasonable administrative error in imple-
menting an automatic enrollment or automatic esca-
lation feature in accordance with the terms of an eli-
gible automatic contribution arrangement (as defined 
under subsection (w)(3)), provided that such imple-
mentation error— 
‘‘(A) is corrected by the date that is 91⁄2 
months after the end of the plan year during 
which the failure occurred, 
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‘‘(B) is corrected in a manner that is favor-
able to the participant, and 
‘‘(C) is of a type which is so corrected for 
all similarly situated participants in a non-
discriminatory manner. 
Such correction may occur before or after the partici-
pant has terminated employment and may occur 
without regard to whether the error is identified by 
the Secretary. 
‘‘(3) REGULATIONS AND GUIDANCE FOR FAVOR-
ABLE CORRECTION METHODS.—The Secretary shall, 
by regulations or other guidance of general applica-
bility, specify the correction methods that are in a 
manner favorable to the participant for purposes of 
paragraph (2)(B).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply with respect to any errors with respect 
to which the date referred to in section 414(aa) (as added 
by this section) is after the date of enactment of this Act. 
SEC. 114. ONE-YEAR REDUCTION IN PERIOD OF SERVICE 
REQUIREMENT FOR LONG-TERM, PART-TIME 
WORKERS. 
(a) IN GENERAL.—Section 401(k)(2)(D)(ii) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘3’’ 
and inserting ‘‘2’’. 
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(b) CLARIFICATION OF PRIOR SERVICE FOR PURPOSES 
OF VESTING RULES.—Section 112(b) of the Setting Every 
Community Up for Retirement Enhancement Act of 2019 
is amended by striking ‘‘section 401(k)(2)(D)(ii)’’ and in-
serting ‘‘paragraphs (2)(D)(ii) and (15)(B)(iii) of section 
401(k)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the enactment of 
section 112 of the Setting Every Community Up for Retire-
ment Enhancement Act of 2019. 
SEC. 115. FINDINGS RELATING TO S CORPORATION ESOPs. 
Congress finds the following: 
(1) On January 1, 1998, nearly 25 years after 
the Employee Retirement Income Security Act of 
1974 was enacted and the employee stock ownership 
plan (hereafter in this section referred to as an 
‘‘ESOP’’) was created, employees were first permitted 
to be owners of subchapter S corporations pursuant to 
the Small Business Job Protection Act of 1996 (Pub-
lic Law 104–188). 
(2) With the passage of the Taxpayer Relief Act 
of 1997 (Public Law 105–34), Congress designed in-
centives to encourage businesses to become ESOP- 
owned S corporations. 
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(3) Since that time, several thousand companies 
have become ESOP-owned S corporations, creating an 
ownership interest for several million Americans in 
companies in every State in the country, in indus-
tries ranging from heavy manufacturing to construc-
tion and contracting to services. 
(4) Every United States worker who is an em-
ployee-owner of an S corporation company through 
an ESOP has a valuable qualified retirement savings 
account. 
(5) Recent studies have shown that employees of 
ESOP-owned S corporations enjoy greater job sta-
bility, wages and benefits than employees of com-
parable companies; and ESOP companies are better 
able to weather economic downturns. 
(6) Studies also show that employee-owners of S 
corporation ESOP companies have amassed meaning-
ful retirement savings through their ESOP accounts 
that will give them the means to retire with dignity. 
(7) It is the goal of Congress to preserve and fos-
ter employee ownership of S corporations through 
ESOPs. 
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TITLE II—PRESERVATION OF 
INCOME 
SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION 
BARRIERS FOR LIFE ANNUITIES. 
(a) IN GENERAL.—Section 401(a)(9) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(J) CERTAIN
INCREASES
IN
PAYMENTS 
UNDER
A
COMMERCIAL
ANNUITY.—Nothing in 
this section shall prohibit a commercial annuity 
(within the meaning of section 3405(e)(6)) that 
is issued in connection with any eligible retire-
ment plan (within the meaning of section 
402(c)(8)(B), other than a defined benefit plan) 
from providing one or more of the following 
types of payments on or after the annuity start-
ing date: 
‘‘(i) annuity payments that increase 
by a constant percentage, applied not less 
frequently than annually, at a rate that is 
less than 5 percent per year, 
‘‘(ii) a lump sum payment that— 
‘‘(I) results in a shortening of the 
payment period with respect to an an-
nuity or a full or partial commutation 
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of the future annuity payments, pro-
vided that such lump sum is deter-
mined 
using 
reasonable 
actuarial 
methods and assumptions, as deter-
mined in good faith by the issuer of the 
contract, or 
‘‘(II) accelerates the receipt of an-
nuity payments that are scheduled to 
be received within the ensuing 12 
months, regardless of whether such ac-
celeration shortens the payment period 
with respect to the annuity, reduces the 
dollar amount of benefits to be paid 
under the contract, or results in a sus-
pension of annuity payments during 
the period being accelerated, 
‘‘(iii) an amount which is in the na-
ture of a dividend or similar distribution, 
provided that the issuer of the contract de-
termines such amount based on a reasonable 
comparison of the actuarial factors assumed 
when calculating the initial annuity pay-
ments and the issuer’s experience with re-
spect to those factors, or 
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‘‘(iv) a final payment upon death that 
does not exceed the excess of the total 
amount of the consideration paid for the 
annuity 
payments, 
less 
the 
aggregate 
amount of prior distributions or payments 
from or under the contract.’’. 
(b) REGULATIONS AND ENFORCEMENT.— 
(1) REGULATIONS.—By the date that is one year 
after the date of enactment of this Act, the Secretary 
of the Treasury shall amend the regulation issued by 
the Department of the Treasury relating to ‘‘Required 
Distributions from Retirement Plans,’’ 69 Fed. Reg. 
33288 (June 15, 2004), and make any corresponding 
amendments to other regulations, in order to— 
(A) conform such regulations to subsection 
(a), including by eliminating the types of pay-
ments described in subsection (a) from the scope 
of the requirement in Q&A–14(c) of Treasury 
Regulation section 1.401(a)(9)–6 that the total 
future expected payments must exceed the total 
value being annuitized; 
(B) amend Q&A–14(c) of Treasury Regula-
tion section 1.401(a)(9)–6 to provide that a com-
mercial annuity that provides an initial pay-
ment that is at least equal to the initial payment 
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that would be required from an individual ac-
count pursuant to Treasury Regulation section 
1.401(a)(9)–5 will be deemed to satisfy the re-
quirement in Q&A–14(c) of Treasury Regulation 
section 1.401(a)(9)–6 that the total future ex-
pected payments must exceed the total value 
being annuitized; and 
(C) amend Q&A–14(e)(3) of Treasury Regu-
lation section 1.401(a)(9)–6 to provide that the 
total future expected payments under a commer-
cial annuity are determined using the tables or 
other actuarial assumptions that the issuer of the 
contract actually uses in pricing the premiums 
and benefits with respect to the contract, pro-
vided that such tables or other actuarial assump-
tions are reasonable. 
(2) ENFORCEMENT.—As of the date of enactment 
of this Act, the Secretary of the Treasury shall ad-
minister and enforce the law in accordance with sub-
sections (a) and (b). 
(c) EFFECTIVE DATE.—This section shall take effect 
on the date of the enactment of this Act. 
SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 
(a) IN GENERAL.—Not later than the date which is 
1 year after the date of the enactment of this Act, the Sec-
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retary of the Treasury or the Secretary’s delegate (hereafter 
in this section referred to as the ‘‘Secretary’’) shall amend 
the regulation issued by the Department of the Treasury 
relating to ‘‘Longevity Annuity Contracts’’ (79 Fed. Reg. 
37633 (July 2, 2014)), as follows: 
(1) REPEAL 25-PERCENT PREMIUM LIMIT.—The 
Secretary shall amend Q&A–17(b)(3) of Treasury 
Regulation section 1.401(a)(9)–6 and Q&A–12(b)(3) 
of Treasury Regulation section 1.408–8 to eliminate 
the requirement that premiums for qualifying lon-
gevity annuity contracts be limited to a percentage of 
an individual’s account balance, and to make such 
corresponding changes to the regulations and related 
forms as are necessary to reflect the elimination of 
this requirement. 
(2) FACILITATE
JOINT
AND
SURVIVOR
BENE-
FITS.—The Secretary shall amend Q&A–17(c) of 
Treasury Regulation section 1.401(a)(9)–6, and make 
such corresponding changes to the regulations and re-
lated forms as are necessary, to provide that, in the 
case of a qualifying longevity annuity contract which 
was purchased with joint and survivor annuity bene-
fits for the individual and the individual’s spouse 
which were permissible under the regulations at the 
time the contract was originally purchased, a divorce 
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occurring after the original purchase and before the 
annuity payments commence under the contract will 
not affect the permissibility of the joint and survivor 
annuity benefits or other benefits under the contract, 
or require any adjustment to the amount or duration 
of benefits payable under the contract, provided that 
any qualified domestic relations order (within the 
meaning of section 414(p) of the Internal Revenue 
Code of 1986) or any divorce or separation instru-
ment (as defined in subsection (b))— 
(A) provides that the former spouse is enti-
tled to the survivor benefits under the contract; 
(B) does not modify the treatment of the 
former spouse as the beneficiary under the con-
tract who is entitled to the survivor benefits; or 
(C) does not modify the treatment of the 
former spouse as the measuring life for the sur-
vivor benefits under the contract. 
(3) PERMIT SHORT FREE LOOK PERIOD.—The 
Secretary shall amend Q&A–17(a)(4) of Treasury 
Regulation section 1.401(a)(9)–6 to ensure that such 
Q&A does not preclude a contract from including a 
provision under which an employee may rescind the 
purchase of the contract within a period not exceeding 
90 days from the date of purchase. 
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(b) DIVORCE OR SEPARATION INSTRUMENT.—For pur-
poses of subsection (a)(2), the term ‘‘divorce or separation 
instrument’’ means— 
(1) a decree of divorce or separate maintenance 
or a written instrument incident to such a decree, 
(2) a written separation agreement, or 
(3) a decree (not described in paragraph (1)) re-
quiring a spouse to make payments for the support or 
maintenance of the other spouse. 
(c) EFFECTIVE DATES, ENFORCEMENT, AND INTER-
PRETATIONS.— 
(1) EFFECTIVE DATES.— 
(A) Paragraph (1) of subsection (a) shall be 
effective with respect to contracts purchased or 
received in an exchange on or after the date of 
the enactment of this Act. 
(B) Paragraphs (2) and (3) of subsection 
(a) shall be effective with respect to contracts 
purchased or received in an exchange on or after 
July 2, 2014. 
(2) ENFORCEMENT
AND
INTERPRETATIONS.— 
Prior to the date on which the Secretary issues final 
regulations pursuant to subsection (a)— 
(A) the Secretary (or delegate) shall admin-
ister and enforce the law in accordance with sub-
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section (a) and the effective dates in paragraph 
(1) of this subsection; and 
(B) taxpayers may rely upon their reason-
able good faith interpretations of subsection (a). 
SEC. 
203. 
INSURANCE-DEDICATED 
EXCHANGE-TRADED 
FUNDS. 
(a) IN GENERAL.—Not later than the date which is 
7 years after the date of the enactment of this Act, the Sec-
retary of the Treasury (or the Secretary’s delegate) shall 
amend the regulation issued by the Department of the 
Treasury relating to ‘‘Income Tax; Diversification Require-
ments for Variable Annuity, Endowment, and Life Insur-
ance Contracts’’, 54 Fed. Reg. 8728 (March 2, 1989), and 
make any necessary corresponding amendments to other 
regulations, in order to facilitate the use of exchange-traded 
funds as investment options under variable contracts within 
the meaning of section 817(d) of the Internal Revenue Code 
of 1986, in accordance with subsections (b) and (c) of this 
section. 
(b) DESIGNATE CERTAIN AUTHORIZED PARTICIPANTS 
AND MARKET MAKERS AS ELIGIBLE INVESTORS.—The Sec-
retary of the Treasury (or the Secretary’s delegate) shall 
amend Treas. Reg. section 1.817–5(f)(3) to provide that sat-
isfaction of the requirements in Treas. Reg. section 1.817– 
5(f)(2)(i) with respect to an exchange-traded fund shall not 
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be prevented by reason of beneficial interests in such a fund 
being held by 1 or more authorized participants or market 
makers. 
(c) DEFINE RELEVANT TERMS.—In amending Treas. 
Reg. section 1.817–5(f)(3) in accordance with subsections 
(b) of this section, the Secretary of the Treasury (or the 
Secretary’s delegate) shall provide definitions consistent 
with the following: 
(1) EXCHANGE-TRADED FUND.—The term ‘‘ex-
change-traded fund’’ means a regulated investment 
company, partnership, or trust— 
(A) that is registered with the Securities 
and Exchange Commission as an open-end in-
vestment company or a unit investment trust; 
(B) the shares of which can be purchased or 
redeemed directly from the fund only by an au-
thorized participant; and 
(C) the shares of which are traded through-
out the day on a national stock exchange at mar-
ket prices that may or may not be the same as 
the net asset value of the shares. 
(2) AUTHORIZED PARTICIPANT.—The term ‘‘au-
thorized participant’’ means a financial institution 
that is a member or participant of a clearing agency 
registered under section 17A(b) of the Securities Ex-
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change Act of 1934 that enters into a contractual re-
lationship with an exchange-traded fund pursuant to 
which the financial institution is permitted to pur-
chase and redeem shares directly from the fund and 
to sell such shares to third parties, but only if the 
contractual arrangement or applicable law precludes 
the financial institution from— 
(A) purchasing the shares for its own in-
vestment purposes rather than for the exclusive 
purpose of creating and redeeming such shares 
on behalf of third parties; and 
(B) selling the shares to third parties who 
are not market makers or otherwise described in 
Treas. Reg. section 1.817–5(f) (1) and (3). 
(3) MARKET MAKER.—The term ‘‘market maker’’ 
means a financial institution that is a registered 
broker or dealer under section 15(b) of the Securities 
Exchange Act of 1934 that maintains liquidity for an 
exchange-traded fund on a national stock exchange by 
being always ready to buy and sell shares of such 
fund on the market, but only if the financial institu-
tion is contractually or legally precluded from selling 
or buying such shares to or from persons who are not 
authorized participants or otherwise described in 
Treas. Reg. section 1.817–5(f) (2) and (3). 
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(d) EFFECTIVE DATE.—Subsections (b) and (c) shall 
apply to segregated asset account investments made on or 
after the date that is 7 years after the date of the enactment 
of this Act. 
TITLE III—SIMPLIFICATION AND 
CLARIFICATION OF RETIRE-
MENT PLAN RULES 
SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAY-
MENTS. 
(a) OVERPAYMENTS
UNDER
INTERNAL
REVENUE 
CODE OF 1986.— 
(1) 
QUALIFICATION
REQUIREMENTS.—Section 
414 of the Internal Revenue Code of 1986, as amend-
ed by the preceding provisions of this Act, is further 
amended by adding at the end the following new sub-
section: 
‘‘(bb) SPECIAL
RULES
APPLICABLE
TO
BENEFIT 
OVERPAYMENTS.— 
‘‘(1) IN GENERAL.—A plan shall not fail to be 
treated as described in clause (i), (ii), (iii), or (iv) of 
section 219(g)(5)(A) (and shall not fail to be treated 
as satisfying the requirements of section 401(a) or 
403) merely because— 
‘‘(A) the plan fails to obtain payment from 
any participant, beneficiary, employer, plan 
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sponsor, fiduciary, or other party on account of 
any inadvertent benefit overpayment made by 
the plan, or 
‘‘(B) the plan sponsor amends the plan to 
increase past or future benefit payments to af-
fected participants and beneficiaries in order to 
adjust for prior inadvertent benefit overpay-
ments. 
‘‘(2) REDUCTION IN FUTURE BENEFIT PAYMENTS 
AND RECOVERY FROM RESPONSIBLE PARTY.—Para-
graph (1) shall not fail to apply to a plan merely be-
cause, after discovering a benefit overpayment, such 
plan— 
‘‘(A) reduces future benefit payments to the 
correct amount provided for under the terms of 
the plan, or 
‘‘(B) seeks recovery from the person or per-
sons responsible for such overpayment. 
‘‘(3) EMPLOYER FUNDING OBLIGATIONS.—Noth-
ing in this subsection shall relieve an employer of any 
obligation imposed on it to make contributions to a 
plan to meet the minimum funding standards under 
sections 412 and 430 or to prevent or restore an im-
permissible forfeiture in accordance with section 411. 
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‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS.— 
Notwithstanding paragraph (1), a plan to which 
paragraph (1) applies shall observe any limitations 
imposed on it by section 401(a)(17) or 415. The plan 
may enforce such limitations using any method ap-
proved by the Secretary for recouping benefits pre-
viously paid or allocations previously made in excess 
of such limitations. 
‘‘(5) COORDINATION WITH OTHER QUALIFICATION 
REQUIREMENTS.—The Secretary may issue regula-
tions or other guidance of general applicability speci-
fying how benefit overpayments and their recoupment 
or non-recoupment from a participant or beneficiary 
shall be taken into account for purposes of satisfying 
any requirement applicable to a plan to which para-
graph (1) applies.’’. 
(2) ROLLOVERS.—Section 402(c) of such Code is 
amended by adding at the end the following new 
paragraph: 
‘‘(12) In the case of an inadvertent benefit over-
payment from a plan to which section 414(bb)(1) ap-
plies which is transferred to an eligible retirement 
plan by or on behalf of a participant or beneficiary— 
‘‘(A) the portion of such overpayment with 
respect to which recoupment is not sought on be-
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half of the plan shall be treated as having been 
paid in an eligible rollover distribution if the 
payment would have been an eligible rollover 
distribution but for being an overpayment, and 
‘‘(B) the portion of such overpayment with 
respect to which recoupment is sought on behalf 
of the plan shall be permitted to be returned to 
such plan and in such case shall be treated as 
an eligible rollover distribution transferred to 
such plan by the participant or beneficiary who 
received such overpayment (and the plans mak-
ing and receiving such transfer shall be treated 
as permitting such transfer). 
In any case in which recoupment is sought on behalf 
of the plan but is disputed by the participant or bene-
ficiary who received such overpayment, such dispute 
shall be subject to the claims and appeals procedures 
of the plan that made such overpayment, such plan 
shall notify the plan receiving the rollover of such dis-
pute, and the plan receiving the rollover shall retain 
such overpayment on behalf of the participant or ben-
eficiary (and shall be entitled to treat such overpay-
ment as plan assets) pending the outcome of such pro-
cedures.’’. 
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(b) OVERPAYMENTS UNDER ERISA.—Section 206 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1056) is amended by adding at the end the following 
new subsection: 
‘‘(h) SPECIAL RULES APPLICABLE TO BENEFIT OVER-
PAYMENTS.— 
‘‘(1) GENERAL RULE.—In the case of an inad-
vertent benefit overpayment by any pension plan, the 
responsible plan fiduciary shall not be considered to 
have failed to comply with the requirements of this 
title merely because such fiduciary determines, in the 
exercise of its fiduciary discretion, not to seek recov-
ery of all or part of such overpayment from— 
‘‘(A) any participant or beneficiary, 
‘‘(B) any plan sponsor of, or contributing 
employer to— 
‘‘(i) an individual account plan, pro-
vided that the amount needed to prevent or 
restore any impermissible forfeiture from 
any participant’s or beneficiary’s account 
arising in connection with the overpayment 
is, separately from and independently of the 
overpayment, allocated to such account pur-
suant to the nonforfeitability requirements 
of section 203 (for example, out of the plan’s 
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forfeiture account, additional employer con-
tributions, or recoveries from those respon-
sible for the overpayment), or 
‘‘(ii) a defined benefit pension plan 
subject to the funding rules in part 3 of this 
subtitle B, unless the responsible plan fidu-
ciary determines, in the exercise of its fidu-
ciary discretion, that failure to recover all 
or part of the overpayment faster than re-
quired under such funding rules would ma-
terially affect the plan’s ability to pay bene-
fits due to other participants and bene-
ficiaries, or 
‘‘(C) any fiduciary of the plan, other than 
a fiduciary (including a plan sponsor or contrib-
uting employer acting in a fiduciary capacity) 
whose breach of its fiduciary duties resulted in 
such overpayment, provided that if the plan has 
established prudent procedures to prevent and 
minimize overpayment of benefits and the rel-
evant plan fiduciaries have followed such proce-
dures, an inadvertent benefit overpayment will 
not give rise to a breach of fiduciary duty. 
‘‘(2) REDUCTION IN FUTURE BENEFIT PAYMENTS 
AND RECOVERY FROM RESPONSIBLE PARTY.—Para-
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graph (1) shall not fail to apply with respect to any 
inadvertent benefit overpayment merely because, after 
discovering such overpayment, the responsible plan fi-
duciary— 
‘‘(A) reduces future benefit payments to the 
correct amount provided for under the terms of 
the plan, or 
‘‘(B) seeks recovery from the person or per-
sons responsible for the overpayment. 
‘‘(3) EMPLOYER FUNDING OBLIGATIONS.—Noth-
ing in this subsection shall relieve an employer of any 
obligation imposed on it to make contributions to a 
plan to meet the minimum funding standards under 
part 3 of this subtitle B or to prevent or restore an 
impermissible forfeiture in accordance with section 
203. 
‘‘(4) RECOUPMENT
FROM
PARTICIPANTS
AND 
BENEFICIARIES.—If the responsible plan fiduciary, in 
the exercise of its fiduciary discretion, decides to seek 
recoupment from a participant or beneficiary of all 
or part of an inadvertent benefit overpayment made 
by the plan to such participant or beneficiary, it may 
do so, subject to the following conditions: 
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‘‘(A) No interest or other additional 
amounts (such as collection costs or fees) are 
sought on overpaid amounts. 
‘‘(B) If the plan seeks to recoup past over-
payments of a non-decreasing periodic benefit by 
reducing future benefit payments— 
‘‘(i) the reduction ceases after the plan 
has recovered the full dollar amount of the 
overpayment, 
‘‘(ii) the amount recouped each cal-
endar year does not exceed 10 percent of the 
full dollar amount of the overpayment, and 
‘‘(iii) future benefit payments are not 
reduced to below 90 percent of the periodic 
amount otherwise payable under the terms 
of the plan. 
Alternatively, if the plan seeks to recoup past 
overpayments of a non-decreasing periodic ben-
efit through one or more installment payments, 
the sum of such installment payments in any 
calendar year does not exceed the sum of the re-
ductions that would be permitted in such year 
under the preceding sentence. 
‘‘(C) If the plan seeks to recoup past over-
payments of a benefit other than a non-decreas-
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ing periodic benefit, the plan satisfies require-
ments developed by the Secretary of the Treasury 
for purposes of this subparagraph. 
‘‘(D) Efforts to recoup overpayments are not 
made through a collection agency or similar 
third party and such efforts are not accompanied 
by threats of litigation, unless the responsible 
plan fiduciary reasonably believes it could pre-
vail in a civil action brought in Federal or State 
court to recoup the overpayments. 
‘‘(E) Recoupment of past overpayments to a 
participant is not sought from any beneficiary of 
the participant, including a spouse, surviving 
spouse, former spouse, or other beneficiary. 
‘‘(F) Recoupment may not be sought if the 
first overpayment occurred more than 3 years be-
fore the participant or beneficiary is first noti-
fied in writing of the error. 
‘‘(G) A participant or beneficiary from 
whom recoupment is sought is entitled to contest 
all or part of the recoupment pursuant to the 
plan’s claims and appeals procedures. 
‘‘(H) 
In 
determining 
the 
amount 
of 
recoupment to seek, the responsible plan fidu-
ciary may take into account the hardship that 
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recoupment likely would impose on the partici-
pant or beneficiary. 
‘‘(5) EFFECT OF CULPABILITY.—Subparagraphs 
(A) through (F) of paragraph (4) shall not apply to 
protect a participant or beneficiary who is culpable. 
For purposes of this paragraph, a participant or ben-
eficiary is culpable if the individual bears responsi-
bility for the overpayment (such as through misrepre-
sentations or omissions that led to the overpayment), 
or if the individual knew, or had good reason to know 
under the circumstances, that the benefit payment or 
payments were materially in excess of the correct 
amount. Notwithstanding the preceding sentence, an 
individual is not culpable merely because the indi-
vidual believed the benefit payment or payments were 
or might be in excess of the correct amount, if the in-
dividual raised that question with an authorized plan 
representative and was told the payment or payments 
were not in excess of the correct amount. With respect 
to a culpable participant or beneficiary, efforts to re-
coup overpayments shall not be made through threats 
of litigation, unless a lawyer for the plan could make 
the representations required under Rule 11 of the Fed-
eral Rules of Civil Procedure if the litigation were 
brought in Federal court.’’. 
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(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply as of the date of the enactment of this 
Act. 
(d) CERTAIN ACTIONS BEFORE DATE
OF ENACT-
MENT.—Plans, fiduciaries, employers, and plan sponsors 
are entitled to rely on— 
(1) a good faith interpretation of then existing 
administrative guidance for inadvertent benefit over-
payment recoupments and recoveries that commenced 
before the date of enactment of this Act, and 
(2) determinations made before such date of en-
actment by the responsible plan fiduciary, in the exer-
cise of its fiduciary discretion, not to seek recoupment 
or recovery of all or part of an inadvertent benefit 
overpayment. 
In the case of a benefit overpayment that occurred prior 
to the date of enactment of this Act, any installment pay-
ments by the participant or beneficiary to the plan or any 
reduction in periodic benefit payments to the participant 
or beneficiary, which were made in recoupment of such 
overpayment and which commenced prior to such date, may 
continue after such date. Nothing in this subsection shall 
relieve a fiduciary from responsibility for an overpayment 
that resulted from a breach of its fiduciary duties. 
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SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMU-
LATIONS IN QUALIFIED RETIREMENT PLANS. 
(a) IN GENERAL.—Section 4974(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘50 percent’’ 
and inserting ‘‘25 percent’’. 
(b) REDUCTION IN EXCISE TAX ON FAILURES TO TAKE 
REQUIRED MINIMUM DISTRIBUTIONS.—Section 4974 of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(e) REDUCTION OF TAX IN CERTAIN CASES.— 
‘‘(1) REDUCTION.—In the case of a taxpayer 
who— 
‘‘(A) corrects, during the correction window, 
a shortfall of distributions from an individual 
retirement plan which resulted in imposition of 
a tax under subsection (a), and 
‘‘(B) submits a return, during the correc-
tion window, reflecting such tax (as modified by 
this subsection), 
the first sentence of subsection (a) shall be applied by 
substituting ‘10 percent’ for ‘25 percent’. 
‘‘(2) CORRECTION
WINDOW.—For purposes of 
this subsection, the term ‘correction window’ means 
the period of time beginning on the date on which the 
tax under subsection (a) is imposed with respect to a 
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shortfall of distributions from an individual retire-
ment plan, and ending on the earlier of— 
‘‘(A) the date on which the Secretary initi-
ates an audit, or otherwise demands payment, 
with respect to the shortfall of distributions, or 
‘‘(B) the last day of the second taxable year 
that begins after the end of the taxable year in 
which the tax under subsection (a) is imposed.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2021. 
SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLO-
CATION FUNDS. 
(a) IN GENERAL.—Not later than 6 months after the 
date of the enactment of this Act, the Secretary of Labor 
(or the Secretary’s delegate) shall modify the regulations 
under section 404 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1104) to provide that, in the 
case of a designated investment alternative which contains 
a mix of asset classes, a plan administrator may, but is 
not required to, use a benchmark which is a blend of dif-
ferent broad-based securities market indices if— 
(1) the blend is reasonably representative of the 
asset class holdings of the designated investment alter-
native; 
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(2) for purposes of determining the blend’s re-
turns for 1-, 5-, and 10-calendar-year periods (or for 
the life of the alternative, if shorter), the blend is 
modified at least once per year to reflect changes in 
the asset class holdings of the designated investment 
alternative; 
(3) the blend is furnished to participants and 
beneficiaries in a manner that is reasonably designed 
to be understandable and helpful; and 
(4) each securities market index which is used 
for an associated asset class would separately satisfy 
the requirements of such regulations for such asset 
class. 
(b) STUDY.—Not later than December 31, 2022, the 
Secretary of Labor (or the Secretary’s delegate) shall deliver 
a report to the Committees on Ways and Means and Edu-
cation and Labor of the House of Representatives and the 
Committees on Finance and Health, Education, Labor, and 
Pensions of the Senate regarding the effectiveness of the 
benchmarking requirements under section 2550.404a–5 of 
title 29, Code of Federal Regulations. 
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SEC. 304. REVIEW AND REPORT TO THE CONGRESS RELAT-
ING TO REPORTING AND DISCLOSURE RE-
QUIREMENTS. 
(a) STUDY.—As soon as practicable after the date of 
the enactment of this Act, the Secretary of Labor, the Sec-
retary of the Treasury, and the Pension Benefit Guaranty 
Corporation shall review the reporting and disclosure re-
quirements of— 
(1) title I of the Employee Retirement Income 
Security Act of 1974 applicable to pension plans (as 
defined in section 3(2) of such Act); and 
(2) the Internal Revenue Code of 1986 applicable 
to qualified retirement plans (as defined in section 
4974(c) of such Code without regard to paragraphs 
(4) and (5) thereof). 
(b) REPORT.—Not later than 18 months after the date 
of the enactment of this Act, the Secretary of Labor, the 
Secretary of the Treasury, and the Pension Benefit Guar-
anty Corporation, jointly, and after consultation with a 
balanced group of participant and employer representa-
tives, shall with respect to plans referenced in subsection 
(a) report on the effectiveness of the applicable reporting 
and disclosure requirements and make such recommenda-
tions as may be appropriate to the appropriate committees 
of the Congress to consolidate, simplify, standardize, and 
improve such requirements so as to simplify reporting for 
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such plans and ensure that plans can simply furnish and 
participants and beneficiaries timely receive and better un-
derstand the information they need to monitor their plans, 
plan for retirement, and obtain the benefits they have 
earned. Such report shall assess the extent to which retire-
ment plans are retaining disclosures, work records, and 
plan documents that are needed to ensure accurate calcula-
tion of future benefits. To assess the effectiveness of the ap-
plicable reporting and disclosure requirements, the report 
shall include an analysis, based on plan data, of how par-
ticipants and beneficiaries are providing preferred contact 
information, the methods by which plan sponsors and plans 
are furnishing disclosures, and the rate at which partici-
pants and beneficiaries (grouped by key demographics) are 
receiving, accessing, and retaining disclosures. The agencies 
shall conduct appropriate surveys and data collection to ob-
tain any needed information. 
SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICI-
PANTS. 
(a) AMENDMENT OF INTERNAL REVENUE CODE OF 
1986.—Section 414 of the Internal Revenue Code of 1986, 
as amended by the preceding provisions of this Act, is fur-
ther amended by adding at the end the following new sub-
section: 
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‘‘(cc) ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICIPANTS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, with respect to any defined 
contribution plan, no disclosure, notice, or other plan 
document (other than the notices and documents de-
scribed in subparagraphs (A) and (B)) shall be re-
quired to be furnished under this title to any 
unenrolled participant if the unenrolled participant 
receives— 
‘‘(A) an annual reminder notice (in paper 
format, or in any electronic format consented to 
by the participant) of such participant’s eligi-
bility to participate in such plan and any appli-
cable election deadlines under the plan, and 
‘‘(B) any document requested by such par-
ticipant which the participant would be entitled 
to receive without regard to this subsection. 
‘‘(2) UNENROLLED PARTICIPANT.—For purposes 
of this subsection, the term ‘unenrolled participant’ 
means an employee who— 
‘‘(A) is eligible to participate in a defined 
contribution plan, 
‘‘(B) has received all required notices, dis-
closures, and other plan documents required to be 
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furnished under this title and the summary plan 
description as provided in section 104(b) of the 
Employee Retirement Income Security Act of 
1974 in connection with such participant’s ini-
tial eligibility to participate in such plan, 
‘‘(C) is not participating in such plan, and 
‘‘(D) does not have a balance in the plan. 
For purposes of this subsection, any eligibility to par-
ticipate in the plan following any period for which 
such employee was not eligible to participate shall be 
treated as initial eligibility. 
‘‘(3) ANNUAL REMINDER NOTICE.—For purposes 
of this subsection, the term ‘annual reminder notice’ 
means the notice described in section 111(c) of the 
Employee Retirement Income Security Act of 1974.’’. 
(b) AMENDMENT OF EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Part 1 of subtitle B of sub-
chapter I of the Employee Retirement Income Secu-
rity Act of 1974 is amended by redesignating section 
111 as section 112 and by inserting after section 110 
the following new section: 
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‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICI-
PANTS. 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this title, with respect to any individual account 
plan, no disclosure, notice, or other plan document (other 
than the notices and documents described in paragraphs (1) 
and (2)) shall be required to be furnished under this title 
to any unenrolled participant if the unenrolled participant 
receives— 
‘‘(1) an annual reminder notice of such partici-
pant’s eligibility to participate in such plan and any 
applicable election deadlines under the plan; and 
‘‘(2) any document requested by such participant 
which the participant would be entitled to receive 
without regard to this section. 
‘‘(b) UNENROLLED PARTICIPANT.—For purposes of 
this section, the term ‘unenrolled participant’ means an em-
ployee who— 
‘‘(1) is eligible to participate in an individual 
account plan; 
‘‘(2) has received all required notices, disclosures, 
and other plan documents, including the summary 
plan description, required to be furnished under this 
title in connection with such participant’s initial eli-
gibility to participate in such plan; 
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‘‘(3) is not participating in such plan; and 
‘‘(4) does not have a balance in the plan. 
For purposes of this section, any eligibility to participate 
in the plan following any period for which such employee 
was not eligible to participate shall be treated as initial 
eligibility. 
‘‘(c) ANNUAL REMINDER NOTICE.—For purposes of 
this section, the term ‘annual reminder notice’ means a no-
tice provided in accordance with section 2520.104b–1 of 
title 29, Code of Federal Regulations (or any successor regu-
lation), which— 
‘‘(1) is furnished in connection with the annual 
open season election period with respect to the plan 
or, if there is no such period, is furnished within a 
reasonable period prior to the beginning of each plan 
year; 
‘‘(2) notifies the unenrolled participant of— 
‘‘(A) the unenrolled participant’s eligibility 
to participate in the plan; and 
‘‘(B) the key benefits under the plan and the 
key rights and features under the plan affecting 
such benefits; and 
‘‘(3) provides such information in a prominent 
manner calculated to be understood by the average 
participant.’’. 
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(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of the Employee Retirement Income 
Security Act of 1974 is amended by striking the item 
relating to section 111 and by inserting after the item 
relating to section 110 the following new items: 
‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled par-
ticipants. 
‘‘Sec. 112. Repeal and effective date.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2021. 
SEC. 306. RETIREMENT SAVINGS LOST AND FOUND. 
(a) RETIREMENT SAVINGS LOST AND FOUND.— 
(1) ESTABLISHMENT.— 
(A) IN GENERAL.—Not later than 3 years 
after the date of the enactment of this Act, the 
Secretary of Labor, the Secretary of the Treas-
ury, and the Secretary of Commerce, in coopera-
tion, shall establish an online searchable data-
base (to be managed by the Pension Benefit 
Guaranty Corporation in accordance with sec-
tion 4051 of the Employee Retirement Income 
Security Act of 1974) to be known as the ‘‘Re-
tirement Savings Lost and Found’’. The Retire-
ment Savings Lost and Found shall— 
(i) allow an individual to search for 
information that enables the individual to 
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locate the plan administrator of any plans 
with respect to which the individual is or 
was a participant or beneficiary, and to 
provide contact information for the plan 
administrator of any plan described in sub-
paragraph (B); 
(ii) allow the corporation to assist such 
an individual in locating any plan of the 
individual; and 
(iii) allow the corporation to make any 
necessary changes to contact information on 
record for the plan administrator based on 
any changes to the plan due to merger or 
consolidation of the plan with any other 
plan, division of the plan into two or more 
plans, bankruptcy, termination, change in 
name of the plan, change in name or ad-
dress of the plan administrator, or other 
causes. 
The Retirement Savings Lost and Found estab-
lished under this paragraph shall include infor-
mation reported under section 4051 of the Em-
ployee Retirement Income Security Act of 1974 
and other relevant information obtained by the 
Pension Benefit Guaranty Corporation. 
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(B) PLANS DESCRIBED.—A plan described 
in this subparagraph is a plan to which the vest-
ing standards of section 203 of part 2 of subtitle 
B of title I of the Employee Retirement Income 
Security Act of 1974 apply. 
(2) ADMINISTRATION.—The Retirement Savings 
Lost and Found established under paragraph (1) 
shall provide individuals described in paragraph 
(1)(A) only with the ability to view contact informa-
tion for the plan administrator of any plan with re-
spect to which the individual is or was a participant 
or beneficiary, sufficient to allow the individual to lo-
cate the individual’s plan in order to recover any 
benefit owing to the individual under the plan. 
(3) SAFEGUARDING PARTICIPANT PRIVACY AND 
SECURITY.—In establishing the Retirement Savings 
Lost and Found under paragraph (1), the Pension 
Benefit Guaranty Corporation, in consultation with 
the Secretary of Labor, the Secretary of Treasury, 
and the Secretary of Commerce, shall take all nec-
essary and proper precautions to ensure that individ-
uals’ plan information maintained by the Retirement 
Savings Lost and Found is protected and that per-
sons other than the individual cannot fraudulently 
claim the benefits to which any individual is entitled, 
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and to allow any individual to opt out of inclusion 
in the Retirement Savings Lost and Found at the 
election of the individual. 
(b) OFFICE OF THE RETIREMENT SAVINGS LOST AND 
FOUND.— 
(1) IN GENERAL.—Subtitle C of title IV of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1341 et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 4051. OFFICE OF THE RETIREMENT SAVINGS LOST 
AND FOUND. 
‘‘(a) ESTABLISHMENT; RESPONSIBILITIES
OF
OF-
FICE.— 
‘‘(1) IN GENERAL.—Not later than 2 years after 
the date of the enactment of this section, the Secretary 
of Labor, the Secretary of Treasury, and the Sec-
retary of Commerce shall establish within the cor-
poration an Office of the Retirement Savings Lost 
and Found (in this section referred to as the ‘Office’). 
‘‘(2) RESPONSIBILITIES OF OFFICE.— 
‘‘(A) IN GENERAL.—The Office shall— 
‘‘(i) carry out subsection (b) of this sec-
tion; 
‘‘(ii) maintain the Retirement Savings 
Lost and Found established under section 
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306(a) of the Securing a Strong Retirement 
Act of 2021; and 
‘‘(iii) perform an annual audit of plan 
information contained in the Retirement 
Savings Lost and Found and ensure that 
such information is current and accurate. 
‘‘(B) OPTION TO CONTRACT.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the date of enactment of this sec-
tion, the corporation shall conduct an anal-
ysis of the cost effectiveness of contracting 
with a third party to carry out the respon-
sibilities under subparagraph (A)(iii) and, 
upon a determination that such contracting 
would be more cost effective than carrying 
out such responsibilities within the Office, 
the corporation may enter into such con-
tracts as merited by such analysis. 
‘‘(ii) REPORT.—The corporation shall 
report on the results of the analysis under 
clause (i) to the Committees on Finance and 
Health, Education, Labor, and Pensions of 
the Senate and the Committees on Ways 
and Means and Education and Labor of the 
House of Representatives. 
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‘‘(b) CERTAIN NON-RESPONSIVE PARTICIPANTS ENTI-
TLED TO SMALL BENEFITS.— 
‘‘(1) GENERAL RULE.— 
‘‘(A) TRANSFER TO THE OFFICE OF THE 
RETIREMENT SAVINGS LOST AND FOUND.—The 
administrator of a plan that is not terminated 
and to which section 401(a)(31)(B) of the Inter-
nal Revenue Code of 1986 applies shall transfer 
to the Office the amount required to be trans-
ferred under section 401(a)(31)(B)(iv) of such 
Code for a non-responsive participant. 
‘‘(B) INFORMATION AND PAYMENT TO THE 
OFFICE.—Upon making a transfer under sub-
paragraph (A), the plan administrator shall pro-
vide such information and certifications as the 
Office shall specify, including with respect to the 
transferred amount and the non-responsive par-
ticipant. 
‘‘(C) INFORMATION REQUIREMENTS AFTER 
TRANSFER.—In the event that, after a transfer is 
made under subparagraph (A), the relevant non- 
responsive participant contacts the plan admin-
istrator or the plan administrator discovers in-
formation that may assist the Office in locating 
the non-responsive participant, the plan admin-
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istrator shall notify and provide such informa-
tion as the Office shall specify to the Office. 
‘‘(D) SEARCH AND PAYMENT BY THE OF-
FICE
FOLLOWING
TRANSFER.—The Office shall 
periodically, and upon receiving information de-
scribed in subparagraph (C), conduct a search 
for the non-responsive participant for whom the 
Office has received a transfer under subpara-
graph (A). Upon location of a non-responsive 
participant who claims benefits, the Office shall 
make a single payment to the non-responsive 
participant in an amount equal to the sum of— 
‘‘(i) the amount transferred to the Of-
fice under subparagraph (A) for such par-
ticipant; and 
‘‘(ii) the return on the investment at-
tributable to such amount under section 
4005(j)(3). 
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘non-responsive participant’ means a 
participant or beneficiary of a plan described in 
paragraph (1)(A)— 
‘‘(A) who is entitled to a benefit subject to 
a 
mandatory 
transfer 
under 
section 
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401(a)(31)(B)(iii) of the Internal Revenue Code 
of 1986; and 
‘‘(B) for whom the plan has satisfied the 
conditions in section 401(a)(31)(B)(iv) of such 
Code. 
‘‘(3) REGULATORY AUTHORITY.—The Office shall 
prescribe such regulations as are necessary to carry 
out the purposes of this section, including rules relat-
ing to the amount payable to the Office and the 
amount to be paid by the Office. 
‘‘(c) INFORMATION COLLECTION.—Within such period 
after the end of a plan year as the Office may by regulations 
prescribe, the administrator of a plan to which the vesting 
standards of section 203 apply shall submit the following 
information, and such other information as the corporation 
may require, to the corporation in such form as the corpora-
tion may require: 
‘‘(1) The information described in paragraphs 
(1) through (4) of section 6057(b) of the Internal Rev-
enue Code of 1986. 
‘‘(2) The information described in subparagraphs 
(A), (B), (E), and (F) of section 6057(a)(2) of the In-
ternal Revenue Code of 1986. 
‘‘(d) EFFECTIVE DATE.—The requirements of sub-
sections (b) and (c) shall apply with respect to plan years 
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beginning after the second December 31 occurring after the 
date of the enactment of this section. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated such sums as may be nec-
essary to carry out this section.’’. 
(2) ESTABLISHMENT
OF
FUND
FOR
TRANS-
FERRED ASSETS.—Section 4005 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1305) is amended by adding at the end the following: 
‘‘(j)(1) A ninth fund shall be established for the pay-
ment of benefits under section 4051(b)(1)(D). 
‘‘(2) Such fund shall be credited with the appro-
priate— 
‘‘(A) amounts transferred to the Office of the Re-
tirement Savings Lost and Found under section 
4051(b)(1)(A); and 
‘‘(B) earnings on investments of the fund or on 
assets credited to the fund. 
‘‘(3) Whenever the corporation determines that the 
moneys of any fund are in excess of current needs, it may 
request the investment of such amounts as it determines ad-
visable by the Secretary of the Treasury in obligations 
issued or guaranteed by the United States.’’. 
(3) CONFORMING
AMENDMENT.—The table of 
contents for the Employee Retirement Income Secu-
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rity Act of 1974 (29 U.S.C. 1001 et seq.) is amended 
by inserting after the matter relating to section 4050 
the following: 
‘‘Sec. 4051. Certain non-responsive participants entitled to small benefits.’’. 
(c) MANDATORY TRANSFERS OF ROLLOVER DISTRIBU-
TIONS.— 
(1) INVESTMENT OPTIONS.— 
(A) IN
GENERAL.—Subparagraph (B) of 
section 404(c)(3) of the Employee Retirement In-
come 
Security 
Act 
of 
1974 
(29 
U.S.C. 
1104(c)(3)) is amended by striking the period at 
the end and inserting ‘‘, and, to the extent the 
Secretary provides in guidance or regulations 
issued after the enactment of the Securing a 
Strong Retirement Act of 2021, is made to— 
‘‘(i) a target date or life cycle fund 
held under such account; 
‘‘(ii) 
as 
described 
in 
section 
2550.404a–2 of title 29, Code of Federal 
Regulations, an investment product held 
under such account designed to preserve 
principal and provide a reasonable rate of 
return; 
‘‘(iii) the Office of the Retirement Sav-
ings Lost and Found in accordance with 
section 401(a)(31)(B)(iv) of the Internal 
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Revenue 
Code 
of 
1986 
and 
section 
306(c)(2)(A)(ii) of the Securing a Strong 
Retirement Act of 2020; or 
‘‘(iv) such other option as the Sec-
retary may so provide.’’. 
(B) REGULATIONS.—Not later than 270 
days after the date of the enactment of this Act, 
the Secretary of Labor shall promulgate regula-
tions identifying the target date or life cycle 
funds, or specifying the characteristics of such a 
fund, that will be deemed to meet the require-
ments of section 404(c)(3)(B)(i) of the Employee 
Retirement Income Security Act of 1974 (29 
U.S.C. 1104(c)(3)(B)), as amended by subpara-
graph (A). 
(2) EXPANSION OF CAP; AUTHORITY TO TRANS-
FER LESSER AMOUNTS.— 
(A) CAP.—Sections 401(a)(31)(B)(ii) and 
411(a)(11)(A) of the Internal Revenue Code of 
1986 and section 203(e)(1) of the Employee Re-
tirement Income Security Act of 1974 are each 
amended by striking ‘‘$5,000’’ and inserting 
‘‘$6,000’’. 
(B) DISTRIBUTION OF LARGER AMOUNTS TO 
INDIVIDUAL RETIREMENT PLANS ONLY.—Section 
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401(a)(31)(B)(i) of such Code is amended by 
adding at the end the following: ‘‘The Office of 
the Retirement Savings Lost and Found estab-
lished by section 306 of the Securing a Strong 
Retirement Act shall not be treated as a trustee 
or issuer that is eligible to receive such distribu-
tions.’’. 
(C) 
LESSER
AMOUNTS.—Section 
401(a)(31)(B) of such Code is amended by add-
ing at the end the following new clauses: 
‘‘(iii) 
TREATMENT
OF
LESSER 
AMOUNTS.—In the case of a trust which is 
part of an eligible plan, such trust shall not 
be a qualified trust under this section unless 
such plan provides that, if a participant in 
the plan separates from the service covered 
by the plan and the nonforfeitable accrued 
benefit described in clause (ii) is not in ex-
cess of $1,000, the plan administrator shall 
(either separately or as part of the notice 
under section 402(f)) notify the participant 
that the participant is entitled to such ben-
efit or attempt to pay the benefit directly to 
the participant. 
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‘‘(iv) TRANSFERS TO RETIREMENT SAV-
INGS LOST AND FOUND.—If, after a plan 
administrator takes the action required 
under clause (iii), the participant does 
not— 
‘‘(I) within 6 months of the notifi-
cation under such clause, make an elec-
tion under subparagraph (A) or elect 
to receive a distribution of the benefit 
directly, or 
‘‘(II) accept any direct payment 
made under such clause within 6 
months of the attempted payment, 
the plan administrator shall transfer the 
amount of such benefit to the Office of the 
Retirement Savings Lost and Found in ac-
cordance with section 4051(b) of the Em-
ployee Retirement Income Security Act of 
1974. 
‘‘(v) INCOME
TAX
TREATMENT
OF 
TRANSFERS TO RETIREMENT SAVINGS LOST 
AND FOUND.—For purposes of determining 
the income tax treatment of transfers to the 
Office of the Retirement Savings Lost and 
Found under clause (iv)— 
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‘‘(I) such a transfer shall be treat-
ed as a transfer to an individual re-
tirement plan under clause (i), and 
‘‘(II) the distribution of such 
amounts by the Office of the Retire-
ment Savings Lost and Found shall be 
treated as a distribution from an indi-
vidual retirement plan.’’. 
(D) EFFECTIVE
DATE.—The amendments 
made by this paragraph shall apply to vested 
benefits with respect to participants who sepa-
rate from service connected to the plan in plan 
years beginning after the second December 31 oc-
curring after the date of the enactment of this 
Act. 
(d) BETTER REPORTING
FOR MANDATORY TRANS-
FERS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
6057(a) of the Internal Revenue Code of 1986 is 
amended— 
(A) in subparagraph (C)— 
(i) by striking ‘‘during such plan 
year’’ in clause (i) and inserting ‘‘during 
the plan year immediately preceding such 
plan year’’; 
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(ii) by adding ‘‘and’’ at the end of 
clause (i); and 
(iii) by striking clause (iii); 
(B) by redesignating subparagraph (E) as 
subparagraph (G); 
(C) by striking ‘‘and’’ at the end of sub-
paragraph (D); and 
(D) by inserting after subparagraph (D) the 
following new subparagraphs: 
‘‘(E) the name and taxpayer identifying 
number of each participant or former partici-
pant in the plan— 
‘‘(i) who, during the current plan year 
or any previous plan year, was reported 
under subparagraph (C), and with respect 
to whom the benefits described in subpara-
graph (C)(ii) were fully paid during the 
plan year, 
‘‘(ii) with respect to whom any amount 
was distributed under section 401(a)(31)(B) 
during the plan year, or 
‘‘(iii) with respect to whom a deferred 
annuity contract was distributed during the 
plan year, 
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‘‘(F) in the case of a participant or former 
participant to whom subparagraph (E) ap-
plies— 
‘‘(i) in the case of a participant de-
scribed in clause (ii) thereof, the name and 
address of the designated trustee or issuer 
described in section 401(a)(31)(B)(i) and 
the account number of the individual retire-
ment plan to which the amount was distrib-
uted, and 
‘‘(ii) in the case of a participant de-
scribed in clause (iii) thereof, the name and 
address of the issuer of such annuity con-
tract and the contract or certificate number, 
and’’. 
(2) RULES RELATING TO DIRECT TRUSTEE-TO- 
TRUSTEE TRANSFERS.— 
(A) IN GENERAL.—Paragraph (6) of section 
402(e) of such Code is amended— 
(i) by striking ‘‘TRANSFERS.—Any’’ 
and inserting ‘‘TRANSFERS.— 
‘‘(A) IN GENERAL.—Any’’; and 
(ii) by adding at the end the following 
new subparagraph: 
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‘‘(B) NOTIFICATION OF TRUSTEE.—In the 
case 
of 
a 
distribution 
under 
section 
401(a)(31)(B), the plan administrator shall no-
tify the designated trustee or issuer described in 
clause (i) thereof that the transfer is a manda-
tory distribution required by such section.’’. 
(B) PENALTY.—Subsection (i) of section 
6652 of such Code is amended— 
(i) by striking ‘‘TO RECIPIENTS’’ in the 
heading and inserting ‘‘OR NOTIFICATION’’; 
(ii) by striking ‘‘402(f),’’ and inserting 
‘‘402(f) or a notification as required by sec-
tion 402(e)(6)(B),’’; and 
(iii) by striking ‘‘such written expla-
nation’’ and inserting ‘‘such written expla-
nation or notification’’. 
(C) REPORTS.—Subsection (i) of section 
408 of such Code is amended— 
(i) by redesignating subparagraphs (A) 
and (B) of paragraph (2) as clauses (i) and 
(ii), respectively, and by moving such 
clauses 2 ems to the right; 
(ii) by redesignating paragraphs (1) 
and (2) as subparagraphs (A) and (B), re-
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spectively, and by moving such subpara-
graphs 2 ems to the right; 
(iii) by striking ‘‘as the Secretary pre-
scribes’’ in subparagraph (B)(ii), as so re-
designated, and all that follows through ‘‘a 
simple retirement account’’ and inserting 
‘‘as the Secretary prescribes. 
‘‘(3) SIMPLE
RETIREMENT
ACCOUNTS.—In the 
case of a simple retirement account’’; 
(iv) 
by 
striking 
‘‘REPORTS.—The 
trustee of’’ and inserting ‘‘REPORTS.— 
‘‘(1) IN GENERAL.—The trustee of’’; 
(v) by striking ‘‘under paragraph (2)’’ 
in paragraph (3), as designated by clause 
(iii), and inserting ‘‘under paragraph 
(1)(B)’’; and 
(vi) by inserting after paragraph 
(1)(B)(ii), as redesignated by the preceding 
clauses, the following new paragraph: 
‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 
of an account, contract, or annuity to which a trans-
fer under section 401(a)(31)(B) is made (including a 
transfer from the individual retirement plan to which 
the original transfer under such section was made to 
another individual retirement plan), the report re-
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quired by this subsection for the year of the transfer 
and any year in which the information previously re-
ported in subparagraph (B) changes shall— 
‘‘(A) identify such transfer as a mandatory 
distribution required by such section, 
‘‘(B) include the name, address, and tax-
payer identifying number of the trustee or issuer 
of the individual retirement plan to which the 
amount is transferred, and 
‘‘(C) be filed with the Pension Benefit 
Guaranty Corporation as well as with the Sec-
retary.’’. 
(3) NOTIFICATION OF PARTICIPANTS UPON SEPA-
RATION.—Subsection (e) of section 6057 of such Code 
is amended by inserting ‘‘, and, with respect to any 
benefit 
of 
the 
individual 
subject 
to 
section 
401(a)(31)(B), a notice of availability of, and the 
contact information for, the Retirement Savings Lost 
and Found established under section 306(a)(1) of the 
Securing a Strong Retirement Act of 2021’’ before the 
period at the end of the second sentence. 
(4) EFFECTIVE DATE.—The amendments made 
by this paragraph shall apply to distributions made 
in, and returns and reports relating to, years begin-
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ning after the second December 31 occurring after the 
date of the enactment of this Act. 
(e) REQUIREMENT OF ELECTRONIC FILING.— 
(1) IN
GENERAL.—Paragraph (2) of section 
6011(e) of the Internal Revenue Code of 1986 is 
amended— 
(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively, and 
by moving such clauses 2 ems to the right; 
(B) by striking ‘‘REGULATIONS.—In pre-
scribing’’ and inserting ‘‘REGULATIONS.— 
‘‘(A) IN GENERAL.—In prescribing’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(B) EXCEPTIONS.—Notwithstanding sub-
paragraph (A), the Secretary shall require re-
turns or reports required under— 
‘‘(i) sections 6057, 6058, and 6059, 
and 
‘‘(ii) sections 408(i), 6041, and 6047 to 
the extent such return or report relates to 
the tax treatment of a distribution from a 
plan, account, contract, or annuity, 
to be filed on magnetic media, but only with re-
spect to persons who are required to file at least 
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50 returns during the calendar year which in-
cludes the first day of the plan year to which 
such returns or reports relate.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this paragraph shall apply to returns and reports 
relating to years beginning after the second December 
31 occurring after the date of the enactment of this 
Act. 
(f) RULEMAKING TO CLARIFY FIDUCIARY DUTIES.— 
(1) REQUEST
FOR
INFORMATION.—Not later 
than 1 year after the date of enactment of this Act, 
the Secretary of Labor, in consultation with the Sec-
retary of the Treasury, shall issue a request for infor-
mation relating to the rulemaking described in para-
graph (2). 
(2) ISSUANCE OF FINAL RULE.—Not later than 3 
years after such date, the Secretary of Labor, in con-
sultation with the Secretary of the Treasury, shall 
issue a final rule that defines the following: 
(A) The steps a plan sponsor must take to 
locate a deferred vested participant in order to 
meet its fiduciary duty under section 404 of the 
Employee Retirement Income Security Act of 
1974 with respect to locating that participant. 
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(B) The ongoing practices and procedures a 
plan sponsor must institute in order to meet 
such fiduciary duty with respect to maintaining 
up-to-date contact information on deferred vested 
participants. 
SEC. 307. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 
RESOLUTION SYSTEM. 
(a) IN GENERAL.—Except as otherwise provided in the 
Internal Revenue Code of 1986 or regulations prescribed by 
the Secretary of the Treasury or the Secretary’s delegate (re-
ferred to in this section as the ‘‘Secretary’’), any eligible 
inadvertent failure to comply with the rules applicable 
under section 401(a), 403(a), 403(b), 408(p), or 408(k) of 
such Code may be self-corrected under the Employee Plans 
Compliance Resolution System (as described in Revenue 
Procedure 2019–19 or any successor guidance and hereafter 
in this section referred to as the ‘‘EPCRS’’), except to the 
extent that such failure was identified by the Secretary 
prior to any actions which demonstrate a commitment to 
implement a self-correction. Revenue Procedure 2019–19 is 
deemed amended as of the date of the enactment of this Act 
to provide that the correction period under section 9.02 of 
such Revenue Procedure (or any successor guidance) for an 
eligible inadvertent failure, except as otherwise provided 
under such Code or in regulations prescribed by the Sec-
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100 
retary, is indefinite and has no last day, other than with 
respect to failures identified by the Secretary prior to any 
self-correction as described in the preceding sentence. 
(b) LOAN ERRORS.—In the case of an eligible inad-
vertent failure relating to a loan from a plan to a partici-
pant— 
(1) such failure may be self-corrected under sub-
section (a) according to the rules of section 6.07 of 
Revenue Procedure 2019–19 (or any successor guid-
ance), including the provisions related to whether a 
deemed distribution must be reported on Form 1099– 
R, and 
(2) the Secretary of Labor shall treat any such 
failure which is so self-corrected under subsection (a) 
as meeting the requirements of the Voluntary Fidu-
ciary Correction Program of the Department of Labor 
if, with respect to the violation of the fiduciary stand-
ards of the Employee Retirement Income Security Act 
of 1974, there is a similar loan error eligible for cor-
rection under EPCRS and the loan error is corrected 
in such manner. 
(c) EPCRS FOR IRAS.—The Secretary shall expand 
the EPCRS to allow custodians of individual retirement 
plans (as defined in section 7701(a)(37) of the Internal 
Revenue Code of 1986) to address eligible inadvertent fail-
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101 
ures with respect to an individual retirement plan (as so 
defined), including (but not limited to)— 
(1) waivers of the excise tax which would other-
wise apply under section 4974 of the Internal Rev-
enue Code of 1986, 
(2) under the self-correction component of the 
EPCRS, waivers of the 60-day deadline for a rollover 
where the deadline is missed for reasons beyond the 
reasonable control of the account owner, and 
(3) rules permitting a nonspouse beneficiary to 
return distributions to an inherited individual retire-
ment plan described in section 408(d)(3)(C) of the In-
ternal Revenue Code of 1986 in a case where, due to 
an inadvertent error by a service provider, the bene-
ficiary had reason to believe that the distribution 
could be rolled over without inclusion in income of 
any part of the distributed amount. 
(d) ADDITIONAL SAFE HARBORS.—The Secretary shall 
expand the EPCRS to provide additional safe harbor means 
of correcting eligible inadvertent failures described in sub-
section (a), including safe harbor means of calculating the 
earnings which must be restored to a plan in cases where 
plan assets have been depleted by reason of an eligible inad-
vertent failure. 
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102 
(e) ELIGIBLE INADVERTENT FAILURE.—For purposes 
of this section— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘‘eligible inadvertent failure’’ 
means a failure that occurs despite the existence of 
practices and procedures which— 
(A) satisfy the standards set forth in section 
4.04 of Revenue Procedure 2019–19 (or any suc-
cessor guidance), or 
(B) satisfy similar standards in the case of 
an individual retirement plan. 
(2) EXCEPTION.—The term ‘‘eligible inadvertent 
failure’’ shall not include any failure which is egre-
gious, relates to the diversion or misuse of plan assets, 
or is directly or indirectly related to an abusive tax 
avoidance transaction. 
(f) APPLICATION OF CERTAIN REQUIREMENTS FOR 
CORRECTING ERRORS.—This section shall not apply to any 
failure unless the correction of such failure under this sec-
tion is made in conformity with the general principles that 
apply to corrections of such failures under the Internal Rev-
enue Code of 1986, including regulations or other guidance 
issued thereunder and including those principles and cor-
rections set forth in Revenue Procedure 2019–19 (or any 
successor guidance).’’ 
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103 
SEC. 308. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE-
QUIREMENT FOR GOVERNMENTAL SECTION 
457(B) PLANS. 
(a) IN GENERAL.—Paragraph (4) of section 457(b) of 
the Internal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(4) which provides that compensation— 
‘‘(A) in the case of an eligible employer de-
scribed in subsection (e)(1)(A), will be deferred 
only if an agreement providing for such deferral 
has been entered into before the compensation is 
currently available to the individual, and 
‘‘(B) in any other case, will be deferred for 
any calendar month only if an agreement pro-
viding for such deferral has been entered into be-
fore the beginning of such month,’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 309. ONE-TIME ELECTION FOR QUALIFIED CHARI-
TABLE DISTRIBUTION TO SPLIT-INTEREST 
ENTITY; INCREASE IN QUALIFIED CHARI-
TABLE DISTRIBUTION LIMITATION. 
(a) ONE-TIME ELECTION FOR QUALIFIED CHARITABLE 
DISTRIBUTION
TO
SPLIT-INTEREST
ENTITY.—Section 
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104 
408(d)(8) of such Code is amended by adding at the end 
the following new subparagraph: 
‘‘(F) ONE-TIME ELECTION FOR QUALIFIED 
CHARITABLE DISTRIBUTION TO SPLIT-INTEREST 
ENTITY.— 
‘‘(i) IN
GENERAL.—A taxpayer may 
for a taxable year elect under this subpara-
graph to treat as meeting the requirement of 
subparagraph (B)(i) any distribution from 
an individual retirement account which is 
made directly by the trustee to a split-inter-
est entity, but only if— 
‘‘(I) an election is not in effect 
under this subparagraph for a pre-
ceding taxable year, 
‘‘(II) the aggregate amount of dis-
tributions of the taxpayer with respect 
to which an election under this sub-
paragraph is made does not exceed 
$50,000, and 
‘‘(III) such distribution meets the 
requirements of clauses (iii) and (iv). 
‘‘(ii) SPLIT-INTEREST
ENTITY.—For 
purposes of this subparagraph, the term 
‘split-interest entity’ means— 
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105 
‘‘(I) a charitable remainder annu-
ity 
trust 
(as 
defined 
in 
section 
664(d)(1)), but only if such trust is 
funded exclusively by qualified chari-
table distributions, 
‘‘(II) 
a 
charitable 
remainder 
unitrust 
(as 
defined 
in 
section 
664(d)(2)), but only if such unitrust is 
funded exclusively by qualified chari-
table distributions, or 
‘‘(III) a charitable gift annuity 
(as defined in section 501(m)(5)), but 
only if such annuity is funded exclu-
sively by qualified charitable distribu-
tions and commences fixed payments of 
5 percent or greater not later than 1 
year from the date of funding. 
‘‘(iii) CONTRIBUTIONS MUST BE OTH-
ERWISE
DEDUCTIBLE.—A 
distribution 
meets the requirement of this clause only 
if— 
‘‘(I) in the case of a distribution 
to a charitable remainder annuity 
trust or a charitable remainder uni-
trust, a deduction for the entire value 
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106 
of the remainder interest in the dis-
tribution for the benefit of a specified 
charitable organization would be al-
lowable under section 170 (determined 
without regard to subsection (b) thereof 
and this paragraph), and 
‘‘(II) in the case of a charitable 
gift annuity, a deduction in an 
amount equal to the amount of the dis-
tribution reduced by the value of the 
annuity 
described 
in 
section 
501(m)(5)(B) would be allowable under 
section 170 (determined without regard 
to subsection (b) thereof and this para-
graph). 
‘‘(iv) LIMITATION ON INCOME INTER-
ESTS.—A distribution meets the require-
ments of this clause only if— 
‘‘(I) no person holds an income 
interest in the split-interest entity 
other than the individual for whose 
benefit such account is maintained, the 
spouse of such individual, or both, and 
‘‘(II) the income interest in the 
split-interest entity is nonassignable. 
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107 
‘‘(v) SPECIAL RULES.— 
‘‘(I) 
CHARITABLE
REMAINDER 
TRUSTS.—Notwithstanding 
section 
664(b), distributions made from a trust 
described in subclause (I) or (II) of 
clause (ii) shall be treated as ordinary 
income in the hands of the beneficiary 
to whom the annuity described in sec-
tion 664(d)(1)(A) or the payment de-
scribed in section 664(d)(2)(A) is paid. 
‘‘(II) CHARITABLE
GIFT
ANNU-
ITIES.—Qualified charitable distribu-
tions made to fund a charitable gift 
annuity shall not be treated as an in-
vestment in the contract for purposes of 
section 72(c).’’. 
(b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 
such Code, as amended by subsection (a), is amended by 
adding at the end the following new subparagraph: 
‘‘(G) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
taxable year beginning after 2021, each of 
the dollar amounts in subparagraphs (A) 
and (F) shall be increased by an amount 
equal to— 
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108 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjustment 
determined under section 1(f)(3) for 
the calendar year in which the taxable 
year begins, determined by substituting 
‘calendar year 2020’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
‘‘(ii) 
ROUNDING.—If 
any 
dollar 
amount increased under clause (i) is not a 
multiple of $1,000, such dollar amount shall 
be rounded to the nearest multiple of 
$1,000.’’. 
(c) EFFECTIVE DATE.—The amendment made by this 
section shall apply to distributions made in taxable years 
ending after the date of the enactment of this Act. 
SEC. 310. DISTRIBUTIONS TO FIREFIGHTERS. 
(a) IN
GENERAL.—Subparagraph (A) of section 
72(t)(10) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a distribu-
tion from a plan described in clause (iii), (iv), or (vi) of 
section 402(c)(8)(B) to an employee who provides fire-
fighting services’’. 
(b) CONFORMING AMENDMENT.—The heading of para-
graph (10) of section 72(t) of such Code is amended— 
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109 
(1) by striking ‘‘QUALIFIED’’, and 
(2) by striking ‘‘IN GOVERNMENTAL PLANS’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after December 31, 
2021. 
SEC. 311. EXCLUSION OF CERTAIN DISABILITY-RELATED 
FIRST RESPONDER RETIREMENT PAYMENTS. 
(a) IN GENERAL.—Part III of subchapter B of chapter 
1 of the Internal Revenue Code of 1986 is amended by in-
serting after section 139B the following new section: 
‘‘SEC. 
139C. 
CERTAIN 
DISABILITY-RELATED 
FIRST 
RE-
SPONDER RETIREMENT PAYMENTS. 
‘‘(a) IN GENERAL.—In the case of an individual who 
receives qualified first responder retirement payments for 
any taxable year, gross income shall not include so much 
of such payments as do not exceed the annualized excludable 
disability amount with respect to such individual. 
‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT 
PAYMENTS.—For purposes of this section, the term ‘quali-
fied first responder retirement payments’ means, with re-
spect to any taxable year, any pension or annuity which 
but for this section would be includible in gross income for 
such taxable year and which is received— 
‘‘(1) from a plan described in clause (iii), (iv), 
(v), or (vi) of section 402(c)(8)(B), and 
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110 
‘‘(2) in connection with such individual’s quali-
fied first responder service. 
‘‘(c) 
ANNUALIZED
EXCLUDABLE
DISABILITY 
AMOUNT.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘annualized exclud-
able disability amount’ means, with respect to any 
individual, the service-connected excludable disability 
amounts which are properly attributable to the 12- 
month period immediately preceding the date on 
which such individual attains retirement age. 
‘‘(2) SERVICE-CONNECTED
EXCLUDABLE
DIS-
ABILITY
AMOUNT.—The term ‘service-connected ex-
cludable disability amount’ means periodic payments 
received by an individual which— 
‘‘(A) are not includible in such individual’s 
gross income under section 104(a)(1), 
‘‘(B) are received in connection with such 
individual’s qualified first responder service, and 
‘‘(C) terminate when such individual at-
tains retirement age. 
‘‘(3) SPECIAL
RULE
FOR
PARTIAL-YEAR
PAY-
MENTS.—In the case of an individual who only re-
ceives service-connected excludable disability amounts 
properly attributable to a portion of the 12-month pe-
riod described in paragraph (1), such paragraph shall 
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111 
be applied by multiplying such amounts by the ratio 
of 365 to the number of days in such period to which 
such amounts were properly attributable. 
‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 
purposes of this section, the term ‘qualified first responder 
service’ means service as a law enforcement officer, fire-
fighter, paramedic, or emergency medical technician.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
part III of subchapter B of chapter 1 of such Code is amend-
ed by inserting after the item relating to section 139B the 
following new item: 
‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to amounts received with respect to tax-
able years beginning after December 31, 2026. 
SEC. 312. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM-
ITATIONS FOR EXCISE TAX ON EXCESS CON-
TRIBUTIONS AND CERTAIN ACCUMULATIONS. 
Section 6501(l) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graph: 
‘‘(4) INDIVIDUAL RETIREMENT PLANS.— 
‘‘(A) IN
GENERAL.—For purposes of any 
tax imposed by section 4973 or 4974 in connec-
tion with an individual retirement plan, the re-
turn referred to in this section shall be the in-
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112 
come tax return filed by the person on whom the 
tax under such section is imposed for the year in 
which the act (or failure to act) giving rise to the 
liability for such tax occurred. 
‘‘(B) RULE IN CASE OF INDIVIDUALS NOT 
REQUIRED TO FILE RETURN.—In the case of a 
person who is not required to file an income tax 
return for such year— 
‘‘(i) the return referred to in this sec-
tion shall be the income tax return that 
such person would have been required to file 
but for the fact that such person was not re-
quired to file such return, and 
‘‘(ii) the 3-year period referred to in 
subsection (a) with respect to the return 
shall be deemed to begin on the date by 
which the return would have been required 
to be filed (excluding any extension there-
of).’’. 
SEC. 313. REQUIREMENT TO PROVIDE PAPER STATEMENTS 
IN CERTAIN CASES. 
(a) IN GENERAL.—Section 105(a)(2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1025(a)(2)) is amended— 
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113 
(1) in subparagraph (A)(iv), by inserting ‘‘sub-
ject to subparagraph (E),’’ before ‘‘may be delivered’’; 
and 
(2) by adding at the end the following: 
‘‘(E) PROVISION OF PAPER STATEMENTS.— 
With respect to at least 1 pension benefit state-
ment furnished for a calendar year with respect 
to an individual account plan under paragraph 
(1)(A), and with respect to at least 1 pension 
benefit statement furnished every 3 calendar 
years with respect to a defined benefit plan 
under paragraph (1)(B), such statement shall be 
furnished on paper in written form except— 
‘‘(i) in the case of a plan that furnishes 
such statement in accordance with section 
2520.104b-1(c) of title 29, Code of Federal 
Regulations; or 
‘‘(ii) in the case of a plan that permits 
a participant or beneficiary to request that 
the statements referred to in the matter pre-
ceding clause (i) be furnished by electronic 
delivery, if the participant or beneficiary 
requests that such statements be delivered 
electronically and the statements are so de-
livered.’’. 
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114 
(b) IMPLEMENTATION.— 
(1) IN GENERAL.—The Secretary of Labor shall, 
not later than December 31, 2021, update section 
2520.104b-1(c) of title 29, Code of Federal Regula-
tions, to provide that a plan may furnish the state-
ments referred to in subparagraph (E) of section 
105(a)(2) by electronic delivery only if, in addition to 
meeting the other requirements under the regula-
tions— 
(A) such plan furnishes each participant or 
beneficiary, including participants described in 
subparagraph (B), a one-time initial notice on 
paper in written form, prior to the electronic de-
livery of any pension benefit statement, of their 
right to request that all documents required to be 
disclosed under title I of the Employee Retire-
ment Income Security Act of 1974 be furnished 
on paper in written form; and 
(B) such plan furnishes each participant 
who is separated from service with at least 1 
pension benefit statement on paper in written 
form for each calendar year, unless, on election 
of the participant, the participant receives such 
statements electronically. 
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115 
(2) OTHER
GUIDANCE.—In implementing the 
amendment made by subsection (a) with respect to a 
plan that discloses required documents or statements 
electronically, in accordance with applicable guidance 
governing electronic disclosure by the Department of 
Labor (with the exception of section 2520.104b-1(c) of 
title 29, Code of Federal Regulations), the Secretary 
of Labor shall, not later than December 31, 2021, up-
date such guidance to the extent necessary to ensure 
that— 
(A) a participant or beneficiary under such 
a plan is permitted the opportunity to request 
that any disclosure required to be delivered on 
paper under applicable guidance by the Depart-
ment of Labor shall be furnished by electronic 
delivery; 
(B) each paper statement furnished under 
such a plan pursuant to the amendment shall in-
clude— 
(i) an explanation of how to request 
that all such statements, and any other doc-
ument required to be disclosed under title I 
of the Employee Retirement Income Secu-
rity Act of 1974, be furnished by electronic 
delivery; and 
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116 
(ii) contact information for the plan 
sponsor, including a telephone number; 
(C) the plan may not charge any fee to a 
participant or beneficiary for the delivery of any 
paper statements; 
(D) each paper pension benefit statement 
shall identify each plan document required to be 
disclosed and shall include information about 
how a participant or beneficiary may access 
each such document; 
(E) each document required to be disclosed 
that is furnished by electronic delivery under 
such a plan shall include an explanation of how 
to request that all such documents be furnished 
on paper in written form; and 
(F) a plan is permitted to furnish a dupli-
cate electronic statement in any case in which 
the plan furnishes a paper pension benefit state-
ment. 
(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to plan years beginning 
after December 31, 2022. 
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117 
SEC. 314. SEPARATE APPLICATION OF TOP HEAVY RULES 
TO DEFINED CONTRIBUTION PLANS COV-
ERING EXCLUDIBLE EMPLOYEES. 
(a) IN GENERAL.—Section 416(c)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(C) SEPARATE APPLICATION TO EMPLOY-
EES NOT MEETING AGE AND SERVICE REQUIRE-
MENTS.—If employees not meeting the age or 
service requirements of section 410(a)(1) (with-
out regard to subparagraph (B) thereof) are cov-
ered under a plan of the employer which meets 
the requirements of subparagraphs (A) and (B) 
separately with respect to such employees, such 
employees may be excluded from consideration in 
determining whether any plan of the employer 
meets the requirements of subparagraphs (A) and 
(B).’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to plan years beginning after the 
date of the enactment of this Act. 
SEC. 315. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION LIMITED TO 3 YEARS. 
(a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘may 
make’’ and inserting ‘‘may, at any time during the 3-year 
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118 
period beginning on the day after the date on which such 
distribution was received, make’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in the enactment of 
section 113 of the Setting Every Community Up for Retire-
ment Enhancement Act of 2019. 
SEC. 316. EMPLOYER MAY RELY ON EMPLOYEE CERTIFYING 
THAT 
DEEMED 
HARDSHIP 
DISTRIBUTION 
CONDITIONS ARE MET. 
(a) CASH OR DEFERRED ARRANGEMENTS.—Section 
401(k)(14) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new subparagraph: 
‘‘(C) EMPLOYEE CERTIFICATION.—In deter-
mining whether a distribution is upon the hard-
ship of an employee, the administrator of the 
plan may rely on a certification by the employee 
that the distribution is on account of a financial 
need of a type that is deemed in regulations pre-
scribed by the Secretary to be an immediate and 
heavy financial need and that such distribution 
is not in excess of the amount required to satisfy 
such financial need.’’. 
(b) 403(b) PLANS.— 
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119 
(1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) of 
such Code is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(D) EMPLOYEE CERTIFICATION.—In deter-
mining whether a distribution is upon the finan-
cial hardship of an employee, the administrator 
of the plan may rely on a certification by the 
employee that the distribution is on account of 
a financial need of a type that is deemed in reg-
ulations prescribed by the Secretary to be an im-
mediate and heavy financial need and that such 
distribution is not in excess of the amount re-
quired to satisfy such financial need.’’. 
(2) ANNUITY CONTRACTS.—Section 403(b)(11) of 
such Code is amended by adding at the end the fol-
lowing: ‘‘In determining whether a distribution is 
upon hardship of an employee, the administrator of 
the plan may rely on a certification by the employee 
that the distribution is on account of a financial need 
of a type that is deemed in regulations prescribed by 
the Secretary to be an immediate and heavy financial 
need and that such distribution is not in excess of the 
amount required to satisfy such financial need.’’. 
(c) 457(b) PLAN.—Section 457(d) of such Code is 
amended by adding at the end the following new paragraph: 
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120 
‘‘(4) PARTICIPANT
CERTIFICATION.—In deter-
mining whether a distribution of a participant is 
made when the participant is faced with an unfore-
seeable emergency, the administrator of a plan main-
tained by an eligible employer described in subsection 
(e)(1)(A) may rely on a certification by the partici-
pant that the distribution is made when the partici-
pant is faced with unforeseeable emergency of a type 
that is specifically described in regulations prescribed 
by the Secretary as an unforeseeable emergency and 
that the distribution is not in excess of the amount 
reasonably necessary to satisfy the emergency need.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2021. 
SEC. 317. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
DOMESTIC ABUSE. 
(a) IN GENERAL.—Section 72(t)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(I) DISTRIBUTIONS
FROM
RETIREMENT 
PLAN IN CASE OF DOMESTIC ABUSE.— 
‘‘(i) IN
GENERAL.—Any eligible dis-
tribution to a domestic abuse victim. 
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121 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as an eligible 
distribution to a domestic abuse victim by 
any individual shall not exceed an amount 
equal to the lesser of— 
‘‘(I) $10,000, or 
‘‘(II) 50 percent of the present 
value of the nonforfeitable accrued ben-
efit of the employee under the plan. 
‘‘(iii) ELIGIBLE
DISTRIBUTION
TO
A 
DOMESTIC ABUSE VICTIM.—For purposes of 
this subparagraph— 
‘‘(I) IN GENERAL.—A distribution 
shall be treated as an eligible distribu-
tion to a domestic abuse victim if such 
distribution is from an applicable eli-
gible retirement plan to an individual 
and made during the 1-year period be-
ginning on any date on which the in-
dividual is a victim of domestic abuse 
by a spouse or domestic partner. 
‘‘(II) 
DOMESTIC
ABUSE.—The 
term ‘domestic abuse’ means physical, 
psychological, sexual, emotional, or 
economic abuse, including efforts to 
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122 
control, isolate, humiliate, or intimi-
date the victim, or to undermine the 
victim’s ability to reason independ-
ently, including by means of abuse of 
the victim’s child or another family 
member living in the household. 
‘‘(iv) TREATMENT OF PLAN DISTRIBU-
TIONS.— 
‘‘(I) IN GENERAL.—If a distribu-
tion to an individual would (without 
regard to clause (ii)) be an eligible dis-
tribution to a domestic abuse victim , 
a plan shall not be treated as failing 
to meet any requirement of this title 
merely because the plan treats the dis-
tribution as an eligible distribution to 
a domestic abuse victim, unless the ag-
gregate amount of such distributions 
from all plans maintained by the em-
ployer (and any member of any con-
trolled group which includes the em-
ployer) to such individual exceeds the 
limitation under clause (ii). 
‘‘(II) CONTROLLED
GROUP.—For 
purposes of subclause (I), the term 
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123 
‘controlled group’ means any group 
treated as a single employer under sub-
section (b), (c), (m), or (o) of section 
414. 
‘‘(v) AMOUNT
DISTRIBUTED
MAY
BE 
REPAID.— 
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a distribution de-
scribed in clause (i) may, at any time 
during the 3-year period beginning on 
the day after the date on which such 
distribution was received, make one or 
more contributions in an aggregate 
amount not to exceed the amount of 
such distribution to an applicable eli-
gible retirement plan of which such in-
dividual is a beneficiary and to which 
a rollover contribution of such dis-
tribution could be made under section 
402(c), 403(a)(4), 403(b)(8), 408(d)(3), 
or 457(e)(16), as the case may be. 
‘‘(II) LIMITATION ON CONTRIBU-
TIONS
TO
APPLICABLE
ELIGIBLE
RE-
TIREMENT
PLANS
OTHER
THAN 
IRAs.—The aggregate amount of con-
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124 
tributions made by an individual 
under subclause (I) to any applicable 
eligible retirement plan which is not 
an individual retirement plan shall 
not exceed the aggregate amount of eli-
gible distributions to a domestic abuse 
victim which are made from such plan 
to such individual. Subclause (I) shall 
not apply to contributions to any ap-
plicable eligible retirement plan which 
is not an individual retirement plan 
unless the individual is eligible to 
make contributions (other than those 
described in subclause (I)) to such ap-
plicable eligible retirement plan. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS
OF
DISTRIBUTIONS
FROM
AP-
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAS.—If a con-
tribution is made under subclause (I) 
with respect to an eligible distribution 
to a domestic abuse victim from an ap-
plicable eligible retirement plan other 
than an individual retirement plan, 
then the taxpayer shall, to the extent of 
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125 
the amount of the contribution, be 
treated as having received such dis-
tribution in an eligible rollover dis-
tribution 
(as 
defined 
in 
section 
402(c)(4)) and as having transferred 
the amount to the applicable eligible 
retirement plan in a direct trustee to 
trustee transfer within 60 days of the 
distribution. 
‘‘(IV) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—If a contribution is made under 
subclause (I) with respect to an eligible 
distribution to a domestic abuse victim 
from an individual retirement plan, 
then, to the extent of the amount of the 
contribution, such distribution shall be 
treated as a distribution described in 
section 408(d)(3) and as having been 
transferred to the applicable eligible re-
tirement plan in a direct trustee to 
trustee transfer within 60 days of the 
distribution. 
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126 
‘‘(vi) 
DEFINITION
AND
SPECIAL 
RULES.—For purposes of this subpara-
graph: 
‘‘(I) APPLICABLE
ELIGIBLE
RE-
TIREMENT PLAN.—The term ‘applica-
ble eligible retirement plan’ means an 
eligible retirement plan (as defined in 
section 402(c)(8)(B)) other than a de-
fined benefit plan. 
‘‘(II) EXEMPTION
OF
DISTRIBU-
TIONS
FROM
TRUSTEE
TO
TRUSTEE 
TRANSFER
AND
WITHHOLDING 
RULES.—For 
purposes 
of 
sections 
401(a)(31), 402(f), and 3405, an eligi-
ble distribution to a domestic abuse 
victim shall not be treated as an eligi-
ble rollover distribution. 
‘‘(III) DISTRIBUTIONS
TREATED 
AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS; 
SELF-CERTIFICATION.— 
Any distribution which the employee 
or participant certifies as being an eli-
gible distribution to a domestic abuse 
victim shall be treated as meeting the 
requirements 
of 
sections 
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127 
401(k)(2)(B)(i), 
403(b)(7)(A)(i), 
403(b)(11), and 457(d)(1)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after the date of 
the enactment of this Act. 
SEC. 318. REFORM OF FAMILY ATTRIBUTION RULE. 
(a) IN GENERAL.—Section 414 of the Internal Revenue 
Code of 1986 is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘For purposes of’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—For purposes of’’, and 
(B) by adding at the end the following new 
paragraphs: 
‘‘(2) SPECIAL RULES FOR APPLYING FAMILY AT-
TRIBUTION.—For purposes of applying the attribu-
tion rules under section 1563 with respect to para-
graph (1), the following rules apply: 
‘‘(A) Community property laws shall be dis-
regarded for purposes of determining ownership. 
‘‘(B) Except as provided by the Secretary, 
stock of an individual not attributed under sec-
tion 1563(e)(5) to such individual’s spouse shall 
not be attributed to such spouse by reason of sec-
tion 1563(e)(6)(A). 
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128 
‘‘(C) Except as provided by the Secretary, 
in the case of stock in different corporations that 
is 
attributed 
to 
a 
child 
under 
section 
1563(e)(6)(A) from each parent, and is not at-
tributed to such parents as spouses under section 
1563(e)(5), such attribution to the child shall not 
by itself result in such corporations being mem-
bers of the same controlled group. 
‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS 
SATISFYING THIS SECTION.—If application of para-
graph (2) causes two or more entities to be a con-
trolled group, or an affiliated service group, or to no 
longer be in a controlled group or an affiliated service 
group, such change shall be treated as a transaction 
to which section 410(b)(6)(C) applies.’’, and 
(2) in subsection (m)(6)(B), by striking ‘‘apply’’ 
and inserting ‘‘apply, except that community prop-
erty laws shall be disregarded for purposes of deter-
mining ownership’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning on or after the 
date of the enactment of this section. 
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129 
SEC. 319. AMENDMENTS TO INCREASE BENEFIT ACCRUALS 
UNDER PLAN FOR PREVIOUS PLAN YEAR AL-
LOWED UNTIL EMPLOYER TAX RETURN DUE 
DATE. 
(a) IN GENERAL.—Section 401(b) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(3) RETROACTIVE PLAN AMENDMENTS THAT IN-
CREASE BENEFIT ACCRUALS.—If— 
‘‘(A) an employer amends a stock bonus, 
pension, profit-sharing, or annuity plan to in-
crease benefits accrued under the plan effective 
for the preceding plan year (other than increas-
ing the amount of matching contributions (as de-
fined in subsection (m)(4)(A))), 
‘‘(B) such amendment would not otherwise 
cause the plan to fail to meet any of the require-
ments of this subchapter, and 
‘‘(C) such amendment is adopted before the 
time prescribed by law for filing the return of 
the employer for a taxable year (including exten-
sions thereof) during which such amendment is 
effective, 
the employer may elect to treat such amendment as 
having been adopted as of the last day of the plan 
year in which the amendment is effective.’’. 
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130 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2022. 
SEC. 320. RETROACTIVE FIRST YEAR ELECTIVE DEFERRALS 
FOR SOLE PROPRIETORS. 
(a) IN GENERAL.—Section 401(b)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: ‘‘In the case of an individual who owns the 
entire interest in an unincorporated trade or business, and 
who is the only employee of such trade or business, any 
elective deferrals (as defined in section 402(g)(3)) under a 
qualified cash or deferred arrangement to which the pre-
ceding sentence applies, which are made by such individual 
before the time for filing the return of such individual for 
the taxable year (determined without regard to any exten-
sions) ending after or with the end of the plan’s first year, 
shall be treated as having been made before the end of such 
first plan year.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to plan years beginning after the date 
of the enactment of this Act. 
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131 
SEC. 321. LIMITING CESSATION OF IRA TREATMENT TO 
PORTION OF ACCOUNT INVOLVED IN A PRO-
HIBITED TRANSACTION. 
(a) IN GENERAL.—Section 408(e)(2)(A) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘such account 
ceases to be an individual retirement account’’ and insert-
ing the following: ‘‘the portion of such account which is used 
in such transaction shall be treated as distributed to the 
individual’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 408(e)(2)(B) of such Code is amend-
ed— 
(A) by striking ‘‘ALL ITS ASSETS.—In any 
case’’ and all that follows through ‘‘by reason of 
subparagraph (A)’’ and inserting the following: 
‘‘PORTION
OF
ASSETS
USED
IN
PROHIBITED 
TRANSACTION.—In any case in which a portion 
of an individual retirement account is treated as 
distributed under subparagraph (A)’’, and 
(B) by striking ‘‘all assets in the account’’ 
and inserting ‘‘such portion’’. 
(2) Section 4975(c)(3) of such Code is amended 
by striking ‘‘the account ceases’’ and all that follows 
and inserting the following: ‘‘the portion of the ac-
count used in the transaction is treated as distributed 
under paragraph (2)(A) or (4) of section 408(e).’’. 
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132 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
TITLE IV—TECHNICAL 
AMENDMENTS 
SEC. 401. AMENDMENTS RELATING TO SETTING EVERY 
COMMUNITY UP FOR RETIREMENT ENHANCE-
MENT ACT OF 2019. 
(a) TECHNICAL AMENDMENTS.— 
(1) AMENDMENT RELATING TO SECTION 114.— 
Section 401(a)(9)(C)(iii) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘employee to 
whom clause (i)(II) applies’’ and inserting ‘‘employee 
(other than an employee to whom clause (i)(II) does 
not apply by reason of clause (ii))’’. 
(2) AMENDMENT RELATING TO SECTION 116.— 
Section 4973(b) of the Internal Revenue Code of 1986 
is amended by adding at the end of the flush matter 
the following: ‘‘Such term shall not include any des-
ignated nondeductible contribution (as defined in sub-
paragraph (C) of section 408(o)(2)) which does not 
exceed the nondeductible limit under subparagraph 
(B) thereof by reason of an election under section 
408(o)(5).’’. 
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133 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall take effect as if included in sec-
tion of the Setting Every Community Up for Retire-
ment Enhancement Act of 2019 to which the amend-
ment relates. 
(b) 
CLERICAL
AMENDMENT.—Section 
72(t)(2)(H)(vi)(IV) of the Internal Revenue Code of 1986 
is amended by striking ‘‘403(b)(7)(A)(ii)’’ and inserting ‘‘ 
403(b)(7)(A)(i)’’. 
TITLE V—ADMINISTRATIVE 
PROVISIONS 
SEC. 501. PROVISIONS RELATING TO PLAN AMENDMENTS. 
(a) IN GENERAL.—If this section applies to any retire-
ment plan or contract amendment— 
(1) such retirement plan or contract shall be 
treated as being operated in accordance with the 
terms of the plan during the period described in sub-
section (b)(2)(A); and 
(2) except as provided by the Secretary of the 
Treasury (or the Secretary’s delegate), such retirement 
plan shall not fail to meet the requirements of section 
411(d)(6) of the Internal Revenue Code of 1986 and 
section 204(g) of the Employee Retirement Income Se-
curity Act of 1974 by reason of such amendment. 
(b) AMENDMENTS TO WHICH SECTION APPLIES.— 
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134 
(1) IN GENERAL.—This section shall apply to 
any amendment to any retirement plan or annuity 
contract which is made— 
(A) pursuant to any amendment made by 
this Act or pursuant to any regulation issued by 
the Secretary of the Treasury or the Secretary of 
Labor (or a delegate of either such Secretary) 
under this Act; and 
(B) on or before the last day of the first 
plan year beginning on or after January 1, 
2023, or such later date as the Secretary of the 
Treasury may prescribe. 
In the case of a governmental plan (as defined in sec-
tion 414(d) of the Internal Revenue Code of 1986), 
this paragraph shall be applied by substituting 
‘‘2025’’ for ‘‘2023’’. 
(2) CONDITIONS.—This section shall not apply to 
any amendment unless— 
(A) during the period— 
(i) beginning on the date the legislative 
or regulatory amendment described in para-
graph (1)(A) takes effect (or in the case of 
a plan or contract amendment not required 
by such legislative or regulatory amend-
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135 
ment, the effective date specified by the 
plan); and 
(ii) ending on the date described in 
paragraph (1)(B) (as modified by the sec-
ond sentence of paragraph (1)) (or, if ear-
lier, the date the plan or contract amend-
ment is adopted), 
the plan or contract is operated as if such plan 
or contract amendment were in effect; and 
(B) such plan or contract amendment ap-
plies retroactively for such period. 
(c) COORDINATION WITH OTHER PROVISIONS RELAT-
ING TO PLAN AMENDMENTS.— 
(1) SECURE ACT.—Section 601(b)(1) of the Set-
ting Every Community Up for Retirement Enhance-
ment Act of 2019 is amended— 
(A) by striking ‘‘January 1, 2022’’ in sub-
paragraph (B) and inserting ‘‘January 1, 
2023’’, and 
(B) by striking ‘‘substituting ‘2024’ for 
‘2022’.’’ in the flush matter at the end and in-
serting ‘‘substituting ‘2025’ for ‘2023’.’’. 
(2) CARES ACT.— 
(A) SPECIAL RULES FOR USE OF RETIRE-
MENT
FUNDS.—Section 2202(c)(2)(A) of the 
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136 
CARES Act is amended by striking ‘‘January 1, 
2022’’ in clause (ii) and inserting ‘‘January 1, 
2023’’. 
(B) TEMPORARY WAIVER OF REQUIRED MIN-
IMUM DISTRIBUTIONS RULES FOR CERTAIN RE-
TIREMENT
PLANS
AND
ACCOUNTS.—Section 
2203(c)(2)(B)(i) of the CARES Act is amend-
ed— 
(i) by striking ‘‘January 1, 2022’’ in 
subclause (II) and inserting ‘‘January 1, 
2023’’, and 
(ii) by striking ‘‘substituting ‘2024’ for 
‘2022’.’’ in the flush matter at the end and 
inserting ‘‘substituting ‘2025’ for ‘2023’.’’. 
(C) TAXPAYER
CERTAINTY
AND
DISASTER 
TAX RELIEF ACT OF 2020.—Section 302(d)(2)(A) 
of the Taxpayer Certainty and Disaster Tax Re-
lief Act of 2020 is amended by striking ‘‘Janu-
ary 1, 2022’’ in clause (ii) and inserting ‘‘Janu-
ary 1, 2023’’. 
TITLE VI—REVENUE 
PROVISIONS 
SEC. 601. SIMPLE AND SEP ROTH IRAS. 
(a) IN GENERAL.—Section 408A of the Internal Rev-
enue Code of 1986 is amended by striking subsection (f). 
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137 
(b) RULES RELATING TO SIMPLIFIED EMPLOYEE PEN-
SIONS.— 
(1) CONTRIBUTIONS.—Section 402(h)(1) of such 
Code is amended by striking ‘‘and’’ at the end of sub-
paragraph (A), by striking the period at the end of 
subparagraph (B) and inserting ‘‘, and’’, and by add-
ing at the end the following new subparagraph: 
‘‘(C) in the case of any contributions pursu-
ant to a simplified employer pension which are 
made to an individual retirement plan des-
ignated as a Roth IRA, such contribution shall 
not be excludable from gross income.’’. 
(2) DISTRIBUTIONS.—Section 402(h)(3) of such 
Code is amended by inserting ‘‘, or section 408A(d) 
in the case of an individual retirement plan des-
ignated as a Roth IRA’’ before the period at the end. 
(3) ELECTION
REQUIRED.—Section 408(k) of 
such Code is amended by redesignating paragraphs 
(7), (8), and (9) as paragraphs (8), (9), and (10), re-
spectively, and by inserting the after paragraph (6) 
the following new paragraph: 
‘‘(7) ROTH CONTRIBUTION ELECTION.—An indi-
vidual retirement plan which is designated as a Roth 
IRA shall not be treated as a simplified employee 
pension under this subsection unless the employee 
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138 
elects for such plan to be so treated (at such time and 
in such manner as the Secretary may provide).’’. 
(c) RULES RELATING TO SIMPLE RETIREMENT AC-
COUNTS.— 
(1) ELECTION
REQUIRED.—Section 408(p) of 
such Code is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(11) ROTH CONTRIBUTION ELECTION.—An in-
dividual retirement plan which is designated as a 
Roth IRA shall not be treated as a simple retirement 
account under this subsection unless the employee 
elects for such plan to be so treated (at such time and 
in such manner as the Secretary may provide).’’. 
(2) ROLLOVERS.—Section 408A(e) of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(3) SIMPLE
RETIREMENT
ACCOUNTS.—In the 
case of any payment or distribution out of a simple 
retirement account (as defined in section 408(p)) with 
respect to which an election has been made under sec-
tion 408(p)(11) and to which 72(t)(6) applies, the 
term ‘qualified rollover contribution’ shall not include 
any payment or distribution paid into an account 
other than another simple retirement account (as so 
defined).’’. 
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139 
(d) COORDINATION WITH ROTH CONTRIBUTION LIMI-
TATION.—Section 408A(c) of such Code is amended by add-
ing at the end the following new paragraph: 
‘‘(7) COORDINATION WITH LIMITATION FOR SIM-
PLE RETIREMENT PLANS AND SEPS.—In the case of 
an individual on whose behalf contributions are made 
to a simple retirement account or a simplified em-
ployee pension, the amount described in paragraph 
(2)(A) shall be increased by an amount equal to the 
contributions made on the individual’s behalf to such 
account or pension for the taxable year, but only to 
the extent such contributions— 
‘‘(A) in the case of a simplified retirement 
account— 
‘‘(i) do not exceed the sum of the dollar 
amount in effect for the taxable year under 
section 408(p)(2)(A)(ii) and the employer 
contribution required under subparagraph 
(A)(iii) or (B)(i), as the case may be, of sec-
tion 408(p)(2), and 
‘‘(ii) do not cause the elective deferrals 
(as defined in section 402(g)(3)) on behalf 
of such individual to exceed the limitation 
under section 402(g)(1) (taking into account 
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140 
any additional elective deferrals permitted 
under section 414(v)), or 
‘‘(B) in the case of a simplified employee 
pension, do not exceed the limitation in effect 
under section 408(j).’’. 
(e) 
CONFORMING
AMENDMENT.—Section 
408A(d)(2)(B) of such Code is amended by inserting ‘‘, or 
employer in the case of a simple retirement account (as de-
fined in section 408(p)) or simplified employee pension (as 
defined in section 408(k)),’’ after ‘‘individual’s spouse’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2021. 
SEC. 602. HARDSHIP WITHDRAWAL RULES FOR 403(b) 
PLANS. 
(a) IN GENERAL.—Section 403(b) of the Internal Rev-
enue Code of 1986, as amended by the preceding provisions 
of this Act, is amended by adding at the end the following 
new paragraph: 
‘‘(16) SPECIAL RULES RELATING TO HARDSHIP 
WITHDRAWALS.—For purposes of paragraphs (7) and 
(11)— 
‘‘(A) AMOUNTS
WHICH
MAY
BE
WITH-
DRAWN.—The following amounts may be distrib-
uted upon hardship of the employee: 
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141 
‘‘(i) Contributions made pursuant to a 
salary reduction agreement (within the 
meaning of section 3121(a)(5)(D)). 
‘‘(ii) Qualified nonelective contribu-
tions (as defined in section 401(m)(4)(C)). 
‘‘(iii) Qualified matching contributions 
described in section 401(k)(3)(D)(ii)(I). 
‘‘(iv) Earnings on any contributions 
described in clause (i), (ii), or (iii). 
‘‘(B) NO
REQUIREMENT
TO
TAKE
AVAIL-
ABLE LOAN.—A distribution shall not be treated 
as failing to be made upon the hardship of an 
employee solely because the employee does not 
take any available loan under the plan.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 403(b)(7)(A)(i)(V) of such Code is 
amended by striking ‘‘in the case of contributions 
made pursuant to a salary reduction agreement 
(within the meaning of section 3121(a)(5)(D))’’ and 
inserting ‘‘subject to the provisions of paragraph 
(16)’’. 
(2) Paragraph (11) of section 403(b) of such 
Code, as amended by the preceding provisions of this 
Act, is amended— 
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142 
(A) by striking ‘‘in’’ in subparagraph (B) 
and inserting ‘‘subject to the provisions of para-
graph (16), in’’, and 
(B) by striking the penultimate sentence. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2021. 
SEC. 603. ELECTIVE DEFERRALS GENERALLY LIMITED TO 
REGULAR CONTRIBUTION LIMIT. 
(a) 
APPLICABLE
EMPLOYER
PLANS.—Section 
414(v)(1) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following: ‘‘Except in the case of 
an applicable employer plan described in paragraph 
(6)(iv), the preceding sentence shall only apply if contribu-
tions are designated Roth contributions (as defined in sec-
tion 402A(c)(1)).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 402(g)(1) of such Code is amended by 
striking subparagraph (C). 
(2) Section 457(e)(18)(A)(ii) of such Code is 
amended by inserting ‘‘the lesser of any designated 
Roth contributions made by the participant to the 
plan or’’ before ‘‘the applicable dollar amount’’. 
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