124 
SEC. 436. 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 
covered under a plan of the employer which 
meets the requirements of subparagraphs (A) 
and (B) separately with respect to such employ-
ees, such employees may be excluded from con-
sideration in determining whether any plan of 
the employer meets the requirements of sub-
paragraphs (A) and (B).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to plan years beginning after 
the date of the enactment of this Act. 
SEC. 437. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION LIMITED TO 3 YEARS. 
(a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘may make’’ and inserting ‘‘may, at any time during the 
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125 
3-year 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 enact-
ment of section 113 of the Setting Every Community Up 
for Retirement Enhancement Act of 2019. 
SEC. 438. EMPLOYER MAY RELY ON EMPLOYEE CERTI-
FYING THAT DEEMED HARDSHIP DISTRIBU-
TION 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 subpara-
graph: 
‘‘(C) EMPLOYEE CERTIFICATION.—In de-
termining whether a distribution is upon the 
hardship of an employee, the administrator of 
the plan may rely on a certification by the em-
ployee that the distribution is on account of a 
financial need of a type that is deemed in regu-
lations 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.’’. 
(b) 403(b) PLANS.— 
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126 
(1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) 
of such Code is amended by adding at the end the 
following new subparagraph: 
‘‘(D) EMPLOYEE CERTIFICATION.—In de-
termining whether a distribution is upon the fi-
nancial hardship of an employee, the adminis-
trator 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.’’. 
(2) ANNUITY CONTRACTS.—Section 403(b)(11) 
of such Code is amended by adding at the end the 
following: ‘‘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 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.’’. 
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127 
(c) 457(B) PLAN.—Section 457(d) of such Code is 
amended by adding at the end the following new para-
graph: 
‘‘(4) PARTICIPANT CERTIFICATION.—In deter-
mining whether a distribution to a participant is 
made when the participant is faced with an unfore-
seeable emergency, the administrator of a plan 
maintained by an eligible employer described in sub-
section (e)(1)(A) may rely on a certification by the 
participant that the distribution is made when the 
participant is faced with unforeseeable emergency of 
a type that is 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 De-
cember 31, 2024. 
SEC. 439. 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: 
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‘‘(I) DISTRIBUTIONS
FROM
RETIREMENT 
PLANS IN CASE OF DOMESTIC ABUSE.— 
‘‘(i) IN GENERAL.—Any eligible dis-
tribution to a domestic abuse victim. 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as an eligi-
ble 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 
benefit of the employee under the 
plan. 
‘‘(iii) ELIGIBLE DISTRIBUTION TO A 
DOMESTIC
ABUSE
VICTIM.—For purposes 
of this subparagraph— 
‘‘(I) IN
GENERAL.—A distribu-
tion shall be treated as an eligible dis-
tribution to a domestic abuse victim if 
such distribution is from an applicable 
eligible retirement plan to an indi-
vidual and made during the 1-year pe-
riod beginning on any date on which 
the individual is a victim of domestic 
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129 
abuse by a spouse or domestic part-
ner. 
‘‘(II) DOMESTIC
ABUSE.—The 
term ‘domestic abuse’ means physical, 
psychological, sexual, emotional, or 
economic abuse, including efforts to 
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 
distribution to a domestic abuse vic-
tim, a plan shall not be treated as 
failing to meet any requirement of 
this title merely because the plan 
treats the distribution as an eligible 
distribution to a domestic abuse vic-
tim, unless the aggregate amount of 
such distributions from all plans 
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130 
maintained by the employer (and any 
member of any controlled group which 
includes the employer) to such indi-
vidual exceeds the limitation under 
clause (ii). 
‘‘(II) CONTROLLED GROUP.—For 
purposes of subclause (I), the term 
‘controlled group’ means any group 
treated as a single employer under 
subsection (b), (c), (m), or (o) of sec-
tion 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 
individual is a beneficiary and to 
which a rollover contribution of such 
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131 
distribution could be made under sec-
tion 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-
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 eligi-
ble 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-
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132 
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 
applicable eligible retirement plan 
other than an individual retirement 
plan, then the taxpayer shall, to the 
extent of the amount of the contribu-
tion, be treated as having received 
such distribution in an eligible rollover 
distribution (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 retire-
ment plan, then, to the extent of the 
amount of the contribution, such dis-
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133 
tribution shall be treated as a dis-
tribution 
described 
in 
section 
408(d)(3) and as having been trans-
ferred to the applicable eligible retire-
ment plan in a direct trustee to trust-
ee transfer within 60 days of the dis-
tribution. 
‘‘(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 eli-
gible distribution to a domestic abuse 
victim shall not be treated as an eligi-
ble rollover distribution. 
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134 
‘‘(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 
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. 440. REFORM OF FAMILY ATTRIBUTION RULES. 
(a) CONTROLLED GROUPS.—Section 414(b) of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—For purposes of’’, and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(2) SPECIAL
RULES
FOR
APPLYING
FAMILY 
ATTRIBUTION.—For purposes of applying the attri-
bution rules under section 1563 with respect to 
paragraph (1), the following rules apply: 
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135 
‘‘(A) Community property laws shall be 
disregarded for purposes of determining owner-
ship. 
‘‘(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 
section 1563(e)(6)(A). 
‘‘(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 sec-
tion 1563(e)(5), such attribution to the child 
shall not by itself result in such corporations 
being members of the same controlled group. 
‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS 
SATISFYING
THIS
SECTION.—If the application of 
paragraph (2) causes two or more entities to be a 
controlled group, or to no longer be in a controlled 
group, such change shall be treated as a transaction 
to which section 410(b)(6)(C) applies.’’. 
(b) 
AFFILIATED
SERVICE
GROUPS.—Section 
414(m)(6)(B) of such Code is amended— 
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