SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keep Student Loans 
Affordable Act of 2013’’. 
SEC. 2. INTEREST RATE EXTENSION. 
Section 455(b)(7)(D) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(b)(7)(D)) is amended— 
(1) in the matter preceding clause (i), by strik-
ing ‘‘and before July 1, 2013,’’ and inserting ‘‘and 
before July 1, 2014,’’; and 
(2) in clause (v), by striking ‘‘and before July 
1, 2013,’’ and inserting ‘‘and before July 1, 2014,’’. 
SEC. 3. MODIFICATIONS OF REQUIRED DISTRIBUTION 
RULES FOR PENSION PLANS. 
(a) IN GENERAL.—Section 401(a)(9)(B) of the Inter-
nal Revenue Code of 1986 is amended to read as follows: 
‘‘(B) REQUIRED
DISTRIBUTIONS
WHERE 
EMPLOYEE DIES BEFORE ENTIRE INTEREST IS 
DISTRIBUTED.— 
‘‘(i) 5-YEAR GENERAL RULE.—A trust 
shall not constitute a qualified trust under 
this section unless the plan provides that, 
if an employee dies before the distribution 
of the employee’s interest (whether or not 
such distribution has begun in accordance 
with subparagraph (A)), the entire interest 
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of the employee will be distributed within 
5 years after the death of such employee. 
‘‘(ii) EXCEPTION FOR ELIGIBLE DES-
IGNATED BENEFICIARIES.—If— 
‘‘(I) any portion of the employ-
ee’s interest is payable to (or for the 
benefit of) an eligible designated bene-
ficiary, 
‘‘(II) such portion will be distrib-
uted (in accordance with regulations) 
over the life of such eligible des-
ignated beneficiary (or over a period 
not extending beyond the life expect-
ancy of such beneficiary), and 
‘‘(III) such distributions begin 
not later than 1 year after the date of 
the employee’s death or such later 
date as the Secretary may by regula-
tions prescribe, 
then, for purposes of clause (i) and except 
as provided in clause (iv) or subparagraph 
(E)(iii), the portion referred to in sub-
clause (I) shall be treated as distributed on 
the date on which such distributions begin. 
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‘‘(iii) SPECIAL RULE FOR SURVIVING 
SPOUSE
OF
EMPLOYEE.—If the eligible 
designated beneficiary referred to in clause 
(ii)(I) is the surviving spouse of the em-
ployee— 
‘‘(I) the date on which the dis-
tributions are required to begin under 
clause (ii)(III) shall not be earlier 
than the date on which the employee 
would have attained age 701⁄2, and 
‘‘(II) if the surviving spouse dies 
before the distributions to such spouse 
begin, this subparagraph shall be ap-
plied as if the surviving spouse were 
the employee. 
‘‘(iv) RULES UPON DEATH OF ELIGI-
BLE DESIGNATED BENEFICIARY.—If an el-
igible designated beneficiary dies before the 
portion of an employee’s interest described 
in clause (ii) is entirely distributed, clause 
(ii) shall not apply to any beneficiary of 
such eligible designated beneficiary and the 
remainder of such portion shall be distrib-
uted within 5 years after the death of such 
beneficiary.’’. 
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(b) DEFINITION OF ELIGIBLE DESIGNATED BENE-
FICIARY.—Section 401(a)(9)(E) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(E) DEFINITIONS AND RULES RELATING 
TO DESIGNATED BENEFICIARY.—For purposes 
of this paragraph— 
‘‘(i) DESIGNATED BENEFICIARY.—The 
term ‘designated beneficiary’ means any 
individual designated as a beneficiary by 
the employee. 
‘‘(ii) ELIGIBLE
DESIGNATED
BENE-
FICIARY.—The term ‘eligible designated 
beneficiary’ means, with respect to any em-
ployee, any designated beneficiary who, as 
of the date of death of the employee, is— 
‘‘(I) the surviving spouse of the 
employee, 
‘‘(II) subject to clause (iii), a 
child of the employee who has not 
reached majority (within the meaning 
of subparagraph (F)), 
‘‘(III) disabled (within the mean-
ing of section 72(m)(7)), 
‘‘(IV) a chronically ill individual 
(within 
the 
meaning 
of 
section 
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7702B(c)(2), except that the require-
ments of subparagraph (A)(i) thereof 
shall only be treated as met if there is 
a certification that, as of such date, 
the period of inability described in 
such subparagraph with respect to the 
individual is an indefinite one that is 
reasonably expected to be lengthy in 
nature), or 
‘‘(V) an individual not described 
in any of the preceding subparagraphs 
who is not more than 10 years young-
er than the employee. 
‘‘(iii) 
SPECIAL
RULE
FOR
CHIL-
DREN.—Subject to subparagraph (F), an 
individual described in clause (ii)(II) shall 
cease to be an eligible designated bene-
ficiary as of the date the individual reaches 
majority and the requirement of subpara-
graph (B)(i) shall not be treated as met 
with respect to any remaining portion of 
an employee’s interest payable to the indi-
vidual unless such portion is distributed 
within 5 years after such date.’’. 
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(c) 
REQUIRED
BEGINNING
DATE.—Section 
401(a)(9)(C) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new clause: 
‘‘(v) EMPLOYEES
BECOMING
5-PER-
CENT
OWNERS
AFTER
AGE
701⁄2.—If an 
employee becomes a 5-percent owner (as 
defined in section 416) with respect to a 
plan year ending in a calendar year after 
the calendar year in which the employee 
attains age 701⁄2, then clause (i)(II) shall 
be applied by substituting the calendar 
year in which the employee became such 
an owner for the calendar year in which 
the employee retires.’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in this 
subsection, the amendments made by this section 
shall apply to distributions with respect to employees 
who die after December 31, 2013. 
(2) REQUIRED BEGINNING DATE.— 
(A) IN GENERAL.—The amendment made 
by subsection (c) shall apply to employees be-
coming a 5-percent owner with respect to plan 
years ending in calendar years beginning before, 
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such Code (as in effect after the amendments 
made by this section). 
(4) EXCEPTION FOR CERTAIN EXISTING ANNU-
ITY CONTRACTS.— 
(A) IN GENERAL.—The amendments made 
by this section shall not apply to a qualified an-
nuity which is a binding annuity contract in ef-
fect on the date of the enactment of this Act 
and at all times thereafter. 
(B) QUALIFIED ANNUITY CONTRACT.—For 
purposes of this paragraph, the term ‘‘qualified 
annuity’’ means, with respect to an employee, 
an annuity— 
(i) which is a commercial annuity (as 
defined in section 3405(e)(6) of such 
Code) or payable by a defined benefit plan, 
(ii) under which the annuity payments 
are substantially equal periodic payments 
(not less frequently than annually) over the 
lives of such employee and a designated 
beneficiary (or over a period not extending 
beyond the life expectancy of such em-
ployee or the life expectancy of such em-
ployee and a designated beneficiary) in ac-
cordance with the regulations described in 
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section 401(a)(9)(A)(ii) of such Code (as 
in effect before such amendments) and 
which meets the other requirements of this 
section 401(a)(9) of such Code (as so in 
effect) with respect to such payments, and 
(iii) with respect to which— 
(I) annuity payments to the em-
ployee have begun before January 1, 
2014, and the employee has made an 
irrevocable election before such date 
as to the method and amount of the 
annuity payments to the employee or 
any designated beneficiaries, or 
(II) if subclause (I) does not 
apply, the employee has made an ir-
revocable election before the date of 
the enactment of this Act as to the 
method and amount of the annuity 
payments to the employee or any des-
ignated beneficiaries. 
Æ 
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