sentence: ‘‘In accordance with rules prescribed by the Sec-
retary, the preceding sentence shall not apply to any dis-
tribution if—
‘‘(A) the portion of the distribution which
would be so includible is reported by the trust-
ee, and
‘‘(B) the eligible retirement plan to which
it is paid agrees to report such amount in any
subsequent distribution.’’
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 401(a)(31) is
amended by adding at the end the following new
sentence: ‘‘In accordance with rules prescribed by
the Secretary, the preceding sentence shall not apply
to any distribution if—
‘‘(i) the portion of the distribution
which would be so includible is reported by
the trustee, and
‘‘(ii) the eligible retirement plan to
which it is paid agrees to report such
amount in any subsequent distribution.’’
(2) Subparagraph (B) of section 408(d)(3) is
amended—
(A) by striking ‘‘LIMITATION.—’’ in the
heading and inserting ‘‘LIMITATIONS.—’’, and
(B) by adding at the end the following: ‘‘In
addition, this paragraph does not apply unless
rules similar to the rules of section 402(c)(2)
are satisfied, except that the rollover contribu-
tion may exceed the amount includible in in-
come to the extent the rollover contribution con-
sists of nondeductible contributions described in
subsection (o).’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions made after Decem-
ber 31, 1998.
SEC. 5. FASTER VESTING OF EMPLOYER MATCHING CON-
TRIBUTIONS.
(a) AMENDMENTS TO 1986 CODE.—Subsection (a) of
section 411 (relating to minimum vesting standards) is
amended—
(1) in paragraph (2), by striking ‘‘A plan’’ and
inserting ‘‘Except as provided in paragraph (12), a
plan’’, and
(2) by adding at the end the following:
‘‘(12) FASTER VESTING FOR MATCHING CON-
TRIBUTIONS.—In the case of matching contributions
(as defined in section 401(m)(4)(A)), paragraph (2)
shall be applied—
‘‘(A) by substituting ‘3 years’ for ‘5 years’
in subparagraph (A), and
‘‘(B) by substituting the following table for
the table contained in subparagraph (B):
The nonforfeitable
‘‘Years of service:
percentage is:
2 ...............................................................................................
3 ...............................................................................................
4 ...............................................................................................
5 ...............................................................................................
6 ...............................................................................................
100.’’
(b) AMENDMENTS TO ERISA.—Section 203(a) of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1053(a)) is amended—
(1) in paragraph (2), by striking ‘‘A plan’’ and
inserting ‘‘Except as provided in paragraph (4), a
plan’’, and
(2) by adding at the end the following:
‘‘(4) FASTER
VESTING
FOR
MATCHING
CON-
TRIBUTIONS.—In the case of matching contributions
(as defined in section 401(m)(4)(A) of the Internal
Revenue Code of 1986), paragraph (2) shall be ap-
plied—
‘‘(A) by substituting ‘3 years’ for ‘5 years’
in subparagraph (A), and
‘‘(B) by substituting the following table for
the table contained in subparagraph (B):
The nonforfeitable
‘‘Years of service:
percentage is:
2 ...............................................................................................
3 ...............................................................................................
The nonforfeitable
‘‘Years of service:
percentage is:
4 ...............................................................................................
5 ...............................................................................................
6 ...............................................................................................
100.’’
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to contributions for plan years beginning
after December 31, 1998.
(2) COLLECTIVE BARGAINING AGREEMENTS.—
In the case of a plan maintained pursuant to 1 or
more collective bargaining agreements between em-
ployee representatives and 1 or more employers rati-
fied by the date of enactment of this Act, the
amendments made by this section shall not apply to
contributions on behalf of employees covered by any
such agreement for plan years beginning before the
earlier of—
(A) the later of—
(i) the date on which the last of such
collective bargaining agreements termi-
nates (determined without regard to any
extension thereof on or after such date of
enactment), or
(ii) January 1, 1999, or
(B) January 1, 2003.
(3) PARTICIPATION
REQUIRED.—The amend-
ments made by this section shall not apply to any
employee who does not have 1 hour of service in any
plan year to which the amendments made by this
section apply.
SEC. 6. EXTENSION OF MISSING PARTICIPANTS PROGRAM.
(a) IN GENERAL.—Section 4050 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1350)
is amended by redesignating subsection (c) as subsection
(e) and by inserting after subsection (b) the following new
subsections:
‘‘(c) MULTIEMPLOYER
PLANS.—The corporation
shall prescribe rules similar to the rules in subsection (a)
for multiemployer plans covered by this title that termi-
nate under section 4041A.
‘‘(d) PLANS NOT OTHERWISE SUBJECT TO TITLE.—
‘‘(1) TRANSFER TO CORPORATION.—The plan
administrator of a plan described in paragraph (4)
may elect to transfer a missing participant’s benefits
to the corporation upon termination of the plan.
‘‘(2) INFORMATION TO THE CORPORATION.—To
the extent provided in regulations, the plan adminis-
trator of a plan described in paragraph (4) shall,
upon termination of the plan, provide the corpora-
tion information with respect to benefits of a miss-
ing participant if the plan transfers such benefits—
‘‘(A) to the corporation, or
‘‘(B) to an entity other than the corpora-
tion or a plan described in paragraph (4)(B)(ii).
‘‘(3) PAYMENT BY THE CORPORATION.—If ben-
efits of a missing participant were transferred to the
corporation under paragraph (1), the corporation
shall, upon location of the participant or beneficiary,
pay to the participant or beneficiary the amount
transferred (or the appropriate survivor benefit) ei-
ther—
‘‘(A) in a single sum (plus interest), or
‘‘(B) in such other form as is specified in
regulations of the corporation.
‘‘(4) PLANS DESCRIBED.—A plan is described
in this paragraph if—
‘‘(A) the plan is a pension plan (within the
meaning of section 3(2))—
‘‘(i) to which the provisions of this
section do not apply (without regard to
this subsection), and
‘‘(ii) which is not a plan described in
paragraphs (2) through (11) of section
4021(b), and
‘‘(B) at the time the assets are to be dis-
tributed upon termination, the plan—
‘‘(i) has missing participants, and
‘‘(ii) has not provided for the transfer
of assets to pay the benefits of all missing
participants to another pension plan (with-
in the meaning of section 3(2)).
‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.—
Subsections (a)(1) and (a)(3) shall not apply to a
plan described in paragraph (4).’’.
(b) CONFORMING AMENDMENT.—Section 206(f) of
the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1056(f)) is amended by striking ‘‘the plan shall
provide that’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions made after final
regulations implementing subsections (c) and (d) of sec-
tion 4050 of the Employee Retirement Income Security
Act of 1974 (as added by subsection (a)), respectively, are
prescribed.
SEC. 7. EXTENSION OF 60-DAY ROLLOVER PERIOD IN THE
CASE OF PRESIDENTIALLY-DECLARED DISAS-
TERS AND SERVICE IN COMBAT ZONE.
(a) IN GENERAL.—Paragraph (1) of section 7508(a)
(relating to time postponed for performing certain acts)
is amended by striking ‘‘and’’ at the end of subparagraph
(J), by redesignating subparagraph (K) as subparagraph
(L), and by inserting after subparagraph (J) the following
new subparagraph:
‘‘(K) Rollover of any distribution within
the 60-day period specified in section 402(c)(3)
or 408(d)(3)(A); and’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to distributions made after Decem-
ber 31, 1998.
SEC. 8. RATIONALIZE THE RESTRICTIONS ON DISTRIBU-
TIONS 
FROM 
DEFINED 
CONTRIBUTION
PLANS.
(a) DISTRIBUTIONS
PERMITTED
ON
SEVERANCE
FROM EMPLOYMENT.—
(1) 401(k) PLANS.—Section 401(k)(2)(B)(i)(I)
(relating to qualified cash or deferred arrangements)
is amended by striking ‘‘separation from service’’
and inserting ‘‘severance from employment’’.
(2) 403(b) CONTRACTS.—
(A) Clause (ii) of section 403(b)(7)(A) is
amended by striking ‘‘separates from service’’
and inserting ‘‘severs from employment’’.
(B) Paragraph (11) of section 403(b) is
amended—
(i) by striking ‘‘SEPARATION
FROM
SERVICE’’ in the heading and inserting
‘‘SEVERANCE FROM EMPLOYMENT’’, and
(ii) by striking ‘‘separates from serv-
ice’’ and inserting ‘‘severs from employ-
ment’’.
(3) 
457 
PLANS.—Clause 
(ii) 
of 
section
457(d)(1)(A) is amended by striking ‘‘is separated
from service’’ and inserting ‘‘has a severance from
employment’’.
(b) BUSINESS SALE REQUIREMENTS DELETED.—
(1) IN GENERAL.—Section 401(k)(2)(B)(i)(II)
(relating to qualified cash or deferred arrangements)
is amended by striking ‘‘an event’’ and inserting ‘‘a
plan termination’’.
(2) 
CONFORMING
AMENDMENTS.—Section
401(k)(10) is amended—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) IN GENERAL.—A plan termination is
described in this paragraph if the termination
of the plan does not involve the establishment
or maintenance of another defined contribution
plan (other than an employee stock ownership
plan as defined in section 4975(e)(7)).’’,
(B) in subparagraph (B)—
(i) by striking ‘‘An event’’ and insert-
ing ‘‘A termination’’, and
(ii) by striking ‘‘the event’’ and insert-
ing ‘‘the termination’’,
(C) by striking subparagraph (C), and
(D) by striking ‘‘OR DISPOSITION OF AS-
SETS OR SUBSIDIARY’’ in the heading.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions after December 31,
1998.
SEC. 9. TRANSFEREE DEFINED CONTRIBUTION PLAN NEED
NOT HAVE SAME DISTRIBUTION OPTIONS AS
TRANSFEROR 
DEFINED 
CONTRIBUTION
PLAN.
(a) IN GENERAL.—Section 411(d)(6) (relating to ac-
crued benefit not to be decreased by amendment) is
amended by adding at the end the following new subpara-
graph:
‘‘(D) PLAN TRANSFERS.—A defined con-
tribution plan (in this subparagraph referred to
as the ‘transferee plan’) shall not be treated as
failing to meet the requirements of this para-
graph merely because the transferee plan does
not provide some or all of the forms of distribu-