(B) DISTRIBUTION OF LARGER AMOUNTS 
TO
INDIVIDUAL
RETIREMENT
PLANS
ONLY.— 
Section 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 established by section 4051 of the 
Employee Retirement Income Security Act of 
1974 shall not be treated as a trustee or issuer 
that is eligible to receive such distributions.’’. 
(C) LESSER AMOUNTS.— 
(i) AMENDMENT OF INTERNAL REV-
ENUE
CODE
OF
1986.—Section 
401(a)(31)(B) of such Code is amended by 
adding 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 (as defined in 
clause (ii)) to which the vesting standards 
of section 203 of the Employee Retirement 
Income Security Act of 1974 apply, 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 
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nonforfeitable accrued benefit described in 
clause (ii) is not in excess of $1,000 (in-
cluding in any case in which payment of 
such a benefit is attempted but not accept-
ed by the participant or beneficiary within 
6 months of such payment attempt)— 
‘‘(I) the plan administrator may, 
after conducting a diligent search as 
provided in clause (vi) and notifying 
the participant (either separately or 
as part of the notice under section 
402(f) of such Code) that the partici-
pant is entitled to such benefit, or at-
tempting to pay the benefit directly to 
the participant, transfer such amount 
to the Office in accordance with 
clause (iv); and 
‘‘(II) the plan administrator shall 
not charge against the benefit any ad-
ministrative or other fee for such 
transfer. 
‘‘(iv) TRANSFERS
TO
RETIREMENT 
SAVINGS
LOST
AND
FOUND.—If, after a 
plan administrator takes the actions re-
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quired under clause (iii)(I), the participant 
does not— 
‘‘(I) not later than 3 years after 
the notification under such paragraph, 
make an election under subparagraph 
(A) or elect to receive a distribution of 
the benefit directly, or 
‘‘(II) accept any payment made 
under such clause within 3 years of 
the attempted payment, 
the plan administrator may transfer the 
amount of such benefit to the Office of the 
Retirement Savings Lost and Found in ac-
cordance with section 4052(b) of the Em-
ployee Retirement Income Security Act of 
1974. 
‘‘(v) INCOME
TAX
TREATMENT
OF 
TRANSFERS TO AND DISTRIBUTIONS FROM 
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) or of transfers to 
an employee benefit plan or individual re-
tirement account— 
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‘‘(I) such a transfer shall be 
treated as a transfer to an individual 
retirement 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 in accord-
ance with section 4050(a) of the Em-
ployee Retirement Income Security 
Act of 1974 from an individual retire-
ment plan. 
‘‘(vi) DILIGENT
SEARCH.—For pur-
poses of clause (iii), a diligent search re-
quires taking all of the following steps, 
consistent with guidance issued by the Sec-
retary of Labor, in consultation with the 
Secretary of the Treasury, not later than 
18 months after the date of enactment of 
this clause: 
‘‘(I) A search for alternate con-
tact information (address, telephone, 
or email) in the possession of the 
plan, any related plan, or the plan 
sponsor. 
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pamtmann on DSKBC07HB2PROD with BILLS
‘‘(II) Use of free online search 
engines, public record databases, pub-
licly available directories, or obitu-
aries. 
‘‘(III) Use of a commercial loca-
tor service, a credit reporting agency 
or a proprietary internet search tool 
for locating individuals. 
‘‘(IV) The mailing of a contact 
letter sent by United States Postal 
Service via certified mail to the last 
known address and to any other alter-
nate address found.’’. 
(ii) AMENDMENT OF EMPLOYEE RE-
TIREMENT
INCOME
SECURITY
ACT
OF 
1974.—Section 404 of the Employee Re-
tirement Income Security Act of 1974 (29 
U.S.C. 1104) is amended by adding at the 
end the following new subsection: 
‘‘(f) SAFE HARBOR WITH RESPECT TO TRANSFER-
RING ACCOUNT BALANCE OF MISSING PARTICIPANTS.— 
‘‘(1) IN GENERAL.—With respect to the trans-
fer requirements of section 401(a)(31)(B) of the In-
ternal Revenue Code of 1986, the requirements of 
subsection (a)(1)(B) with respect to the adminis-
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pamtmann on DSKBC07HB2PROD with BILLS
trator will be deemed to be satisfied in the case of 
a participant— 
‘‘(A) who separates from the service cov-
ered by the plan, and 
‘‘(B) the nonforfeitable accrued benefit of 
whom (as described in section 401(a)(31)(B)(ii) 
of such Code) is not in excess of $1,000, 
if the administrator adopts practices and procedures 
with respect to maintaining up-to-date contact infor-
mation on participants and fulfills the requirements 
of paragraphs (2), (3), and (4). 
‘‘(2) NOTIFICATION.—The requirements of this 
paragraph are satisfied if the administrator conducts 
a diligent search as provided in paragraph (4) and 
notifies the participant (either separately or as part 
of the notice under section 402(f) of such Code) that 
the participant is entitled to such benefit, or at-
tempts to pay the benefit directly to the participant. 
‘‘(3) TRANSFERS
TO
RETIREMENT
SAVINGS 
LOST AND FOUND.—If, after an administrator takes 
the actions required under paragraph (2), the partic-
ipant does not— 
‘‘(A) not later than 3 years after the notifi-
cation under such paragraph, make an election 
under section 401(a)(31)(A) of such Code or 
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pamtmann on DSKBC07HB2PROD with BILLS
elect to receive a distribution of the benefit di-
rectly, or 
‘‘(B) accept any payment made under such 
paragraph within 3 years of the attempted pay-
ment, 
the administrator may transfer the amount of such 
benefit to the Office of the Retirement Savings Lost 
and Found in accordance with section 4052(b). 
‘‘(4) DILIGENT
SEARCH.—For purposes of 
paragraph (2), a diligent search requires taking all 
of the following steps, consistent with guidance 
issued by the Secretary of Labor, in consultation 
with the Secretary of the Treasury, not later than 
18 months after the date of enactment of this 
clause: 
‘‘(A) A search for alternate contact infor-
mation (address, telephone, or email) in the 
possession of the plan, any related plan, or the 
plan sponsor. 
‘‘(B) Use of free online search engines, 
public record databases, publicly available direc-
tories, or obituaries. 
‘‘(C) Use of a commercial locator service, 
a credit reporting agency or a proprietary inter-
net search tool for locating individuals. 
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pamtmann on DSKBC07HB2PROD with BILLS
‘‘(D) The mailing of a contact letter sent 
by United States Postal Service via certified 
mail to the last known address and to any other 
alternate address found. 
An administrator of a plan that takes all of the 
steps described in the preceding subparagraphs and 
that adopts practices and procedures with respect to 
maintaining up-to-date contact information on par-
ticipants shall be deemed to meet its fiduciary duty 
under section 404 with respect to locating a non-re-
sponsive 
participant 
(as 
defined 
in 
section 
4052(b)(2)).’’. 
(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 1 year after the finalization of 
the regulations issued pursuant to section 
4052(b)(2). 
(c) 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)— 
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pamtmann on DSKBC07HB2PROD with BILLS
(i) by striking ‘‘during such plan 
year’’ in clause (i) and inserting ‘‘during 
the plan year immediately preceding such 
plan year’’; 
(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 
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pamtmann on DSKBC07HB2PROD with BILLS
‘‘(iii) with respect to whom a deferred 
annuity contract was distributed during 
the plan year, 
‘‘(F) in the case of a participant or former 
participant to whom subparagraph (E) applies 
(and to the extent provided in regulations de-
signed to protect privacy to be issued by the 
Secretary of Labor)— 
‘‘(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 re-
tirement plan to which the amount was 
distributed, and 
‘‘(ii) in the case of a participant de-
scribed in clause (iii) thereof, the name 
and address of the issuer of such annuity 
contract and the contract or certificate 
number, and’’. 
(2) RULES RELATING TO DIRECT TRUSTEE-TO- 
TRUSTEE TRANSFERS.— 
(A) IN GENERAL.—Paragraph (6) of sec-
tion 402(e) of such Code is amended— 
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pamtmann on DSKBC07HB2PROD with BILLS
(i) by striking ‘‘TRANSFERS.—Any’’ 
and inserting ‘‘TRANSFERS.— 
‘‘(A) IN GENERAL.—Any’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(B) NOTIFICATION OF TRUSTEE.—In the 
case 
of 
a 
distribution 
under 
section 
401(a)(31)(B), the administrator shall notify 
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 NOTIFICA-
TION’’; 
(ii) by striking ‘‘402(f),’’ and insert-
ing ‘‘402(f) or a notification as required by 
section 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— 
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pamtmann on DSKBC07HB2PROD with BILLS
(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-
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 redesignated by clause 
(iii), and inserting ‘‘under paragraph 
(1)(B)’’; and 
(vi) by inserting after paragraph 
(1)(B)(ii), as redesignated by the pre-
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ceding clauses, the following new para-
graph: 
‘‘(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 re-
port required by this subsection for the year of the 
transfer and any year in which the information pre-
viously reported 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 Secretary of 
Labor.’’. 
(3) NOTIFICATION OF PARTICIPANTS UPON SEP-
ARATION.—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 
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contact information for, the Retirement Savings 
Lost and Found established under section 4051 of 
the Employee Retirement Income Security Act of 
1974’’ 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-
ning after the second December 31 occurring after 
the date of the enactment of this Act. 
(d) 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: 
‘‘(C) EXCEPTIONS.—Notwithstanding sub-
paragraph (A), the Secretary shall require re-
turns or reports required under— 
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‘‘(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 50 returns during the calendar year which 
includes 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 Decem-
ber 31 occurring after the date of the enactment of 
this Act. 
Æ 
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