I
105TH CONGRESS
2D SESSION
H. R. 4823
To amend the Internal Revenue Code of 1986 to provide for retirement
savings for the 21st century.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 13, 1998
Mr. KOLBE (for himself and Mr. STENHOLM) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Education and the Workforce, for a period to
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To amend the Internal Revenue Code of 1986 to provide
for retirement savings for the 21st century.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE;
TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘21st Century Retirement Savings Act’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS.—
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I—NEW EMPLOYER PENSION PLANS MUST BE 401(k)
PLANS AND NOT 403(b) OR 457 PLANS
Sec. 101. New employer pension plans must be 401(k) plans and not 403(b)
or 457 plans.
TITLE II—SAFE ANNUITIES AND TRUSTS
Sec. 201. Safe annuities and trusts.
TITLE III—ENHANCED PORTABILITY OF RETIREMENT PLANS
Sec. 301. Rollovers allowed among various types of plans.
Sec. 302. Rollovers of IRAs into workplace retirement plans.
Sec. 303. Rollovers of after-tax contributions.
Sec. 304. Rationalize the restrictions on distributions from defined contribution
plans.
Sec. 305. Transferee defined contribution plan need not have same distribution
options as transferor defined contribution plan.
Sec. 306. Allowance of employers to disregard rollovers for purposes of cash-
out amounts.
Sec. 307. Purchase of service credit in governmental defined benefit plans.
TITLE IV—CREDIT FOR PENSION PLAN STARTUP COSTS OF
SMALL EMPLOYERS
Sec. 401. Credit for pension plan startup costs of small employers.
TITLE V—MISCELLANEOUS IMPROVEMENTS TO PENSION PLANS
Sec. 501. IRA catch-up contributions.
Sec. 502. Repeal of 25 percent limitation on defined contribution plans.
Sec. 503. Faster vesting of employer matching contributions.
Sec. 504. Periodic pension benefits statements.
Sec. 505. Failure of pension plans to meet requirements.
Sec. 506. Assignment and alienation.
TITLE I—NEW EMPLOYER PEN-
SION PLANS MUST BE 401(k)
PLANS AND NOT 403(b) OR 457
PLANS
SEC. 101. NEW EMPLOYER PENSION PLANS MUST BE 401(k)
PLANS AND NOT 403(b) OR 457 PLANS.
(a) 401(k) PLANS.—Paragraph (4) of section 401(k)
(relating to other requirements for cash or deferred ar-
rangements) is amended by striking subparagraph (B)
and redesignating subparagraph (C) as subparagraph (B).
(b) 403(b) PLANS.—Subsection (b) of section 403
(relating to taxability of beneficiary under annuity pur-
chased by section 501(c)(3) organization or public school)
is amended by adding at the end the following new para-
graph:
‘‘(13) TERMINATION.—Paragraph (1) shall not
apply to an annuity plan, contract, or other arrange-
ment entered into after December 31, 1998.’’.
(c) 457 PLANS.—Section 457 (relating to deferred
compensation plans of State and local governments and
tax-exempt organizations) is amended by adding at the
end the following new subsection:
‘‘(g) TERMINATION.—Subsection (a) shall not apply
to any plan or other arrangement entered into after De-
cember 31, 1998.’’.