I 
116TH CONGRESS 
1ST SESSION H. R. 1994 
To amend the Internal Revenue Code of 1986 to encourage retirement 
savings, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2019 
Mr. NEAL (for himself, Mr. BRADY, Mr. KIND, and Mr. KELLY of Pennsyl-
vania) introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Education and 
Labor, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
retirement savings, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Setting Every Community Up for Retirement Enhance-
ment Act of 2019’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
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Sec. 1. Short title, etc. 
TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 
Sec. 101. Increase in 10 percent cap for automatic enrollment safe harbor after 
1st plan year. 
Sec. 102. Rules relating to election of safe harbor 401(k) status. 
Sec. 103. Increase in credit limitation for small employer pension plan startup 
costs. 
Sec. 104. Small employer automatic enrollment credit. 
Sec. 105. Certain taxable non-tuition fellowship and stipend payments treated 
as compensation for IRA purposes. 
Sec. 106. Repeal of maximum age for traditional IRA contributions. 
Sec. 107. Qualified employer plans prohibited from making loans through credit 
cards and other similar arrangements. 
Sec. 108. Portability of lifetime income options. 
Sec. 109. Treatment of custodial accounts on termination of section 403(b) 
plans. 
Sec. 110. Clarification of retirement income account rules relating to church- 
controlled organizations. 
Sec. 111. Qualified cash or deferred arrangements must allow long-term em-
ployees working more than 500 but less than 1,000 hours per 
year to participate. 
Sec. 112. Penalty-free withdrawals from retirement plans for individuals in case 
of birth of child or adoption. 
Sec. 113. Increase in age for required beginning date for mandatory distribu-
tions. 
Sec. 114. Special rules for minimum funding standards for community news-
paper plans. 
Sec. 115. Treating excluded difficulty of care payments as compensation for de-
termining retirement contribution limitations. 
TITLE II—ADMINISTRATIVE IMPROVEMENTS 
Sec. 201. Plan adopted by filing due date for year may be treated as in effect 
as of close of year. 
Sec. 202. Combined annual report for group of plans. 
Sec. 203. Disclosure regarding lifetime income. 
Sec. 204. Fiduciary safe harbor for selection of lifetime income provider. 
Sec. 205. Modification of nondiscrimination rules to protect older, longer serv-
ice participants. 
TITLE III—OTHER BENEFITS 
Sec. 301. Benefits provided to volunteer firefighters and emergency medical re-
sponders. 
Sec. 302. Expansion of section 529 plans. 
TITLE IV—REVENUE PROVISIONS 
Sec. 401. Modifications of required distribution rules for designated bene-
ficiaries. 
Sec. 402. Increase in penalty for failure to file. 
Sec. 403. Increased penalties for failure to file retirement plan returns. 
Sec. 404. Increase information sharing to administer excise taxes. 
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TITLE I—EXPANDING AND PRE-
SERVING RETIREMENT SAV-
INGS 
SEC. 101. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC 
ENROLLMENT 
SAFE 
HARBOR 
AFTER 
1ST 
PLAN YEAR. 
(a) IN GENERAL.—Section 401(k)(13)(C)(iii) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘does not exceed 10 percent’’ and inserting ‘‘does not ex-
ceed 15 percent (10 percent during the period described 
in subclause (I))’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2019. 
SEC. 102. RULES RELATING TO ELECTION OF SAFE HARBOR 
401(k) STATUS. 
(a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE 
TO MATCHING CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
401(k)(12) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘if such arrangement’’ and all 
that follows and inserting ‘‘if such arrangement— 
‘‘(i) meets the contribution require-
ments of subparagraph (B) and the notice 
requirements of subparagraph (D), or 
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‘‘(ii) meets the contribution require-
ments of subparagraph (C).’’. 
(2) 
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENTS.—Subparagraph (B) of section 401(k)(13) of 
such Code is amended by striking ‘‘means’’ and all 
that follows and inserting ‘‘means a cash or deferred 
arrangement— 
‘‘(A) which is described in subparagraph 
(D)(i)(I) and meets the applicable requirements 
of subparagraphs (C) through (E), or 
‘‘(B) which is described in subparagraph 
(D)(i)(II) and meets the applicable require-
ments of subparagraphs (C) and (D).’’. 
(b) 
NONELECTIVE
CONTRIBUTIONS.—Section 
401(k)(12) of the Internal Revenue Code of 1986 is 
amended by redesignating subparagraph (F) as subpara-
graph (G), and by inserting after subparagraph (E) the 
following new subparagraph: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a plan may be amend-
ed after the beginning of a plan year to 
provide that the requirements of subpara-
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graph (C) shall apply to the arrangement 
for the plan year, but only if the amend-
ment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, 
or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION WHERE PLAN PRO-
VIDED FOR MATCHING CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of sub-
paragraph (B) or paragraph (13)(D)(i)(I) 
applied to the plan year. 
‘‘(iii) 4-PERCENT CONTRIBUTION RE-
QUIREMENT.—Clause 
(i)(II) 
shall 
not 
apply to an arrangement unless the 
amount of the contributions described in 
subparagraph (C) which the employer is 
required to make under the arrangement 
for the plan year with respect to any em-
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ployee is an amount equal to at least 4 
percent of the employee’s compensation.’’. 
(c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 
Section 401(k)(13) of the Internal Revenue Code of 1986 
is amended by adding at the end the following: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a plan may be amend-
ed after the beginning of a plan year to 
provide that the requirements of subpara-
graph (D)(i)(II) shall apply to the arrange-
ment for the plan year, but only if the 
amendment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, 
or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION WHERE PLAN PRO-
VIDED FOR MATCHING CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
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if the plan provided at any time during the 
plan year that the requirements of sub-
paragraph (D)(i)(I) or paragraph (12)(B) 
applied to the plan year. 
‘‘(iii) 4-PERCENT CONTRIBUTION RE-
QUIREMENT.—Clause 
(i)(II) 
shall 
not 
apply to an arrangement unless the 
amount of the contributions described in 
subparagraph (D)(i)(II) which the em-
ployer is required to make under the ar-
rangement for the plan year with respect 
to any employee is an amount equal to at 
least 4 percent of the employee’s com-
pensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2019. 
SEC. 103. INCREASE IN CREDIT LIMITATION FOR SMALL 
EMPLOYER PENSION PLAN STARTUP COSTS. 
(a) IN GENERAL.—Paragraph (1) of section 45E(b) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) for the first credit year and each of the 2 
taxable years immediately following the first credit 
year, the greater of— 
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‘‘(A) $500, or 
‘‘(B) the lesser of— 
‘‘(i) $250 for each employee of the eli-
gible employer who is not a highly com-
pensated employee (as defined in section 
414(q)) and who is eligible to participate 
in the eligible employer plan maintained by 
the eligible employer, or 
‘‘(ii) $5,000, and’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 104. SMALL EMPLOYER AUTOMATIC ENROLLMENT 
CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT 
SAVINGS OPTIONS PROVIDED BY SMALL EM-
PLOYERS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible employer, the retirement auto-en-
rollment credit determined under this section for any tax-
able year is an amount equal to— 
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‘‘(1) $500 for any taxable year occurring during 
the credit period, and 
‘‘(2) zero for any other taxable year. 
‘‘(b) CREDIT PERIOD.—For purposes of subsection 
(a)— 
‘‘(1) IN GENERAL.—The credit period with re-
spect to any eligible employer is the 3-taxable-year 
period beginning with the first taxable year for 
which the employer includes an eligible automatic 
contribution arrangement (as defined in section 
414(w)(3)) in a qualified employer plan (as defined 
in section 4972(d)) sponsored by the employer. 
‘‘(2) MAINTENANCE
OF
ARRANGEMENT.—No 
taxable year with respect to an employer shall be 
treated as occurring within the credit period unless 
the arrangement described in paragraph (1) is in-
cluded in the plan for such year. 
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 
section, the term ‘eligible employer’ has the meaning given 
such term in section 408(p)(2)(C)(i).’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘plus’’ at 
the end of paragraph (31), by striking the period at the 
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end of paragraph (32) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(33) in the case of an eligible employer (as de-
fined in section 45T(c)), the retirement auto-enroll-
ment credit determined under section 45T(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 45S the following 
new item: 
‘‘Sec. 45T. Auto-enrollment option for retirement savings options provided by 
small employers.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 105. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 
AND STIPEND PAYMENTS TREATED AS COM-
PENSATION FOR IRA PURPOSES. 
(a) IN GENERAL.—Paragraph (1) of section 219(f) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following: ‘‘The term ‘compensation’ 
shall include any amount which is included in the individ-
ual’s gross income and paid to the individual to aid the 
individual in the pursuit of graduate or postdoctoral 
study.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 106. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
CONTRIBUTIONS. 
(a) IN GENERAL.—Paragraph (1) of section 219(d) 
of the Internal Revenue Code of 1986 is repealed. 
(b) CONFORMING AMENDMENT.—Subsection (c) of 
section 408A of the Internal Revenue Code of 1986 is 
amended by striking paragraph (4) and by redesignating 
paragraphs (5), (6), and (7) as paragraphs (4), (5), and 
(6), respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made for taxable 
years beginning after December 31, 2019. 
SEC. 107. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 
MAKING LOANS THROUGH CREDIT CARDS 
AND OTHER SIMILAR ARRANGEMENTS. 
(a) IN GENERAL.—Paragraph (2) of section 72(p) of 
the Internal Revenue Code of 1986 is amended by redesig-
nating subparagraph (D) as subparagraph (E) and by in-
serting after subparagraph (C) the following new subpara-
graph: 
‘‘(D) PROHIBITION
OF
LOANS
THROUGH 
CREDIT CARDS AND OTHER SIMILAR ARRANGE-
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MENTS.—Subparagraph (A) shall not apply to 
any loan which is made through the use of any 
credit card or any other similar arrangement.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to loans made after the date 
of the enactment of this Act. 
SEC. 108. PORTABILITY OF LIFETIME INCOME OPTIONS. 
(a) IN GENERAL.—Subsection (a) of section 401 of 
the Internal Revenue Code of 1986 is amended by insert-
ing after paragraph (37) the following new paragraph: 
‘‘(38) PORTABILITY OF LIFETIME INCOME.— 
‘‘(A) IN GENERAL.—Except as may be oth-
erwise provided by regulations, a trust forming 
part of a defined contribution plan shall not be 
treated as failing to constitute a qualified trust 
under this section solely by reason of allowing— 
‘‘(i) qualified distributions of a life-
time income investment, or 
‘‘(ii) distributions of a lifetime income 
investment in the form of a qualified plan 
distribution annuity contract, 
on or after the date that is 90 days prior to the 
date on which such lifetime income investment 
is no longer authorized to be held as an invest-
ment option under the plan. 
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‘‘(I) a feature which guarantees a 
minimum level of income annually (or 
more frequently) for at least the re-
mainder of the life of the employee or 
the joint lives of the employee and the 
employee’s designated beneficiary, or 
‘‘(II) an annuity payable on be-
half of the employee under which pay-
ments are made in substantially equal 
periodic payments (not less frequently 
than annually) over the life of the em-
ployee or the joint lives of the em-
ployee and the employee’s designated 
beneficiary, and 
‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
contract purchased for a participant and 
distributed to the participant by a plan or 
contract described in subparagraph (B) of 
section 
402(c)(8) 
(without 
regard 
to 
clauses (i) and (ii) thereof).’’. 
(b) CASH OR DEFERRED ARRANGEMENT.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
401(k)(2)(B) of the Internal Revenue Code of 1986 
is amended by striking ‘‘or’’ at the end of subclause 
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(IV), by striking ‘‘and’’ at the end of subclause (V) 
and inserting ‘‘or’’, and by adding at the end the fol-
lowing new subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect 
to amounts invested in a lifetime in-
come investment (as defined in sub-
section (a)(38)(B)(ii)), the date that 
is 90 days prior to the date that such 
lifetime income investment may no 
longer be held as an investment option 
under the arrangement, and’’. 
(2) DISTRIBUTION
REQUIREMENT.—Subpara-
graph (B) of section 401(k)(2) of such Code, as 
amended by paragraph (1), is amended by striking 
‘‘and’’ at the end of clause (i), by striking the semi-
colon at the end of clause (ii) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(iii) except as may be otherwise pro-
vided by regulations, in the case of 
amounts described in clause (i)(VI), will be 
distributed only in the form of a qualified 
distribution (as defined in subsection 
(a)(38)(B)(i)) or a qualified plan distribu-
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tion annuity contract (as defined in sub-
section (a)(38)(B)(iv)),’’. 
(c) SECTION 403(b) PLANS.— 
(1) ANNUITY CONTRACTS.—Paragraph (11) of 
section 403(b) of the Internal Revenue Code of 1986 
is amended by striking ‘‘or’’ at the end of subpara-
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, or’’, and by inserting 
after subparagraph (C) the following new subpara-
graph: 
‘‘(D) except as may be otherwise provided 
by regulations, with respect to amounts invested 
in a lifetime income investment (as defined in 
section 401(a)(38)(B)(ii))— 
‘‘(i) on or after the date that is 90 
days prior to the date that such lifetime 
income investment may no longer be held 
as an investment option under the con-
tract, and 
‘‘(ii) in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
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(2) CUSTODIAL ACCOUNTS.—Subparagraph (A) 
of section 403(b)(7) of such Code is amended by 
striking ‘‘if—’’ and all that follows and inserting ‘‘if 
the amounts are to be invested in regulated invest-
ment company stock to be held in that custodial ac-
count, and under the custodial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
such amount is a distribution to which sec-
tion 72(t)(2)(G) applies) before— 
‘‘(I) the employee dies, 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment, 
‘‘(IV) the employee becomes dis-
abled (within the meaning of section 
72(m)(7)), 
‘‘(V) in the case of contributions 
made pursuant to a salary reduction 
agreement (within the meaning of sec-
tion 3121(a)(5)(D)), the employee en-
counters financial hardship, or 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect 
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to amounts invested in a lifetime in-
come investment (as defined in section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the contract, and 
‘‘(ii) in the case of amounts described 
in clause (i)(VI), such amounts will be dis-
tributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
457(d)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of clause (ii), 
by inserting ‘‘or’’ at the end of clause (iii), and by 
adding after clause (iii) the following: 
‘‘(iv) except as may be otherwise pro-
vided by regulations, in the case of a plan 
maintained by an employer described in 
subsection 
(e)(1)(A), 
with 
respect 
to 
amounts invested in a lifetime income in-
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vestment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such lifetime 
income investment may no longer be held 
as an investment option under the plan,’’. 
(2) DISTRIBUTION REQUIREMENT.—Paragraph 
(1) of section 457(d) of such Code is amended by 
striking ‘‘and’’ at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) 
and inserting ‘‘, and’’, and by inserting after sub-
paragraph (C) the following new subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, in the case of amounts described 
in subparagraph (A)(iv), such amounts will be 
distributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan distribu-
tion annuity contract (as defined in section 
401(a)(38)(B)(iv)).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2019. 
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SEC. 109. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
Not later than six months after the date of enactment 
of this Act, the Secretary of the Treasury shall issue guid-
ance to provide that, if an employer terminates the plan 
under which amounts are contributed to a custodial ac-
count under subparagraph (A) of section 403(b)(7), the 
plan administrator or custodian may distribute an indi-
vidual custodial account in kind to a participant or bene-
ficiary of the plan and the distributed custodial account 
shall be maintained by the custodian on a tax-deferred 
basis as a section 403(b)(7) custodial account, similar to 
the treatment of fully-paid individual annuity contracts 
under Revenue Ruling 2011–7, until amounts are actually 
paid to the participant or beneficiary. The guidance shall 
provide further (i) that the section 403(b)(7) status of the 
distributed custodial account is generally maintained if the 
custodial account thereafter adheres to the requirements 
of section 403(b) that are in effect at the time of the dis-
tribution of the account and (ii) that a custodial account 
would not be considered distributed to the participant or 
beneficiary if the employer has any material retained 
rights under the account (but the employer would not be 
treated as retaining material rights simply because the 
custodial account was originally opened under a group 
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contract). Such guidance shall be retroactively effective for 
taxable years beginning after December 31, 2008. 
SEC. 110. CLARIFICATION OF RETIREMENT INCOME AC-
COUNT RULES RELATING TO CHURCH-CON-
TROLLED ORGANIZATIONS. 
(a) IN GENERAL.—Subparagraph (B) of section 
403(b)(9) of the Internal Revenue Code of 1986 is amend-
ed by inserting ‘‘(including an employee described in sec-
tion 414(e)(3)(B))’’ after ‘‘employee described in para-
graph (1)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to years beginning before, on, or 
after the date of the enactment of this Act. 
SEC. 111. QUALIFIED CASH OR DEFERRED ARRANGEMENTS 
MUST 
ALLOW 
LONG-TERM 
EMPLOYEES 
WORKING MORE THAN 500 BUT LESS THAN 
1,000 HOURS PER YEAR TO PARTICIPATE. 
(a) PARTICIPATION REQUIREMENT.— 
(1) IN GENERAL.—Section 401(k)(2)(D) of the 
Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(D) which does not require, as a condi-
tion of participation in the arrangement, that 
an employee complete a period of service with 
the employer (or employers) maintaining the 
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plan extending beyond the close of the earlier 
of— 
‘‘(i) the period permitted under sec-
tion 410(a)(1) (determined without regard 
to subparagraph (B)(i) thereof), or 
‘‘(ii) subject to the provisions of para-
graph (15), the first period of 3 consecu-
tive 12-month periods during each of which 
the employee has at least 500 hours of 
service.’’. 
(2) SPECIAL RULES.—Section 401(k) of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(15) SPECIAL RULES FOR PARTICIPATION RE-
QUIREMENT
FOR
LONG-TERM, PART-TIME
WORK-
ERS.—For purposes of paragraph (2)(D)(ii)— 
‘‘(A) AGE REQUIREMENT MUST BE MET.— 
Paragraph (2)(D)(ii) shall not apply to an em-
ployee unless the employee has met the require-
ment of section 410(a)(1)(A)(i) by the close of 
the last of the 12-month periods described in 
such paragraph. 
‘‘(B) 
NONDISCRIMINATION
AND
TOP- 
HEAVY RULES NOT TO APPLY.— 
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‘‘(i) NONDISCRIMINATION RULES.—In 
the case of employees who are eligible to 
participate in the arrangement solely by 
reason of paragraph (2)(D)(ii)— 
‘‘(I) notwithstanding subsection 
(a)(4), an employer shall not be re-
quired to make nonelective or match-
ing contributions on behalf of such 
employees even if such contributions 
are made on behalf of other employees 
eligible to participate in the arrange-
ment, and 
‘‘(II) an employer may elect to 
exclude such employees from the ap-
plication of subsection (a)(4), para-
graphs (3), (12), and (13), subsection 
(m)(2), and section 410(b). 
‘‘(ii) TOP-HEAVY
RULES.—An em-
ployer may elect to exclude all employees 
who are eligible to participate in a plan 
maintained by the employer solely by rea-
son of paragraph (2)(D)(ii) from the appli-
cation of the vesting and benefit require-
ments under subsections (b) and (c) of sec-
tion 416. 
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‘‘(iii) VESTING.—For purposes of de-
termining whether an employee described 
in clause (i) has a nonforfeitable right to 
employer contributions (other than con-
tributions 
described 
in 
paragraph 
(3)(D)(i)) under the arrangement, each 
12-month period for which the employee 
has at least 500 hours of service shall be 
treated as a year of service. 
‘‘(iv) 
EMPLOYEES
WHO
BECOME 
FULL-TIME
EMPLOYEES.—This subpara-
graph shall cease to apply to any employee 
as of the first plan year beginning after 
the plan year in which the employee meets 
the 
requirements 
of 
section 
410(a)(1)(A)(ii) without regard to para-
graph (2)(D)(ii). 
‘‘(C) EXCEPTION FOR EMPLOYEES UNDER 
COLLECTIVELY BARGAINED PLANS, ETC.—Para-
graph (2)(D)(ii) shall not apply to employees 
described in section 410(b)(3). 
‘‘(D) SPECIAL RULES.— 
‘‘(i) TIME
OF
PARTICIPATION.—The 
rules of section 410(a)(4) shall apply to an 
employee eligible to participate in an ar-
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rangement solely by reason of paragraph 
(2)(D)(ii). 
‘‘(ii) 12-MONTH PERIODS.—12-month 
periods shall be determined in the same 
manner as under the last sentence of sec-
tion 410(a)(3)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2020, except that, for purposes of section 
401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 (as 
added by such amendments), 12-month periods beginning 
before January 1, 2021, shall not be taken into account. 
SEC. 112. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
BIRTH OF CHILD OR ADOPTION. 
(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: 
‘‘(H) DISTRIBUTIONS FROM RETIREMENT 
PLANS IN CASE OF BIRTH OF CHILD OR ADOP-
TION.— 
‘‘(i) 
IN
GENERAL.—Any 
qualified 
birth or adoption distribution. 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as qualified 
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birth or adoption distributions by any indi-
vidual with respect to any birth or adop-
tion shall not exceed $5,000. 
‘‘(iii) QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION.—For purposes of this sub-
paragraph— 
‘‘(I) IN
GENERAL.—The term 
‘qualified birth or adoption distribu-
tion’ means any distribution from an 
applicable eligible retirement plan to 
an individual if made during the 1- 
year period beginning on the date on 
which a child of the individual is born 
or on which the legal adoption by the 
individual of an eligible adoptee is fi-
nalized. 
‘‘(II) ELIGIBLE
ADOPTEE.—The 
term ‘eligible adoptee’ means any indi-
vidual (other than a child of the tax-
payer’s spouse) who has not attained 
age 18 or is physically or mentally in-
capable of self-support. 
‘‘(iv) TREATMENT OF PLAN DISTRIBU-
TIONS.— 
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‘‘(I) IN GENERAL.—If a distribu-
tion to an individual would (without 
regard to clause (ii)) be a qualified 
birth or adoption distribution, a plan 
shall not be treated as failing to meet 
any requirement of this title merely 
because the plan treats the distribu-
tion as a qualified birth or adoption 
distribution, unless the aggregate 
amount of such distributions from all 
plans maintained by the employer 
(and any member of any controlled 
group which includes the employer) to 
such individual exceeds $5,000. 
‘‘(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 qualified birth 
or adoption distribution may make 
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one or more contributions in an ag-
gregate amount not to exceed the 
amount of such distribution to an ap-
plicable eligible retirement plan of 
which such individual is a beneficiary 
and to which a rollover contribution of 
such distribution could be made under 
section 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 quali-
fied birth or adoption distributions 
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 
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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-
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAS.—If a con-
tribution is made under subclause (I) 
with respect to a qualified birth or 
adoption distribution from an applica-
ble eligible retirement plan other than 
an individual retirement plan, then 
the taxpayer shall, to the extent of the 
amount of the contribution, be treated 
as having received such distribution in 
an eligible rollover distribution (as de-
fined in section 402(c)(4)) and as 
having transferred the amount to the 
applicable eligible retirement plan in a 
direct trustee to trustee transfer with-
in 60 days of the distribution. 
‘‘(IV) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—If a contribution is made 
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under subclause (I) with respect to a 
qualified birth or adoption distribution 
from an individual retirement plan, 
then, to the extent of the amount of 
the contribution, such distribution 
shall be treated as a distribution de-
scribed in section 408(d)(3) and as 
having been transferred to the appli-
cable eligible retirement plan in a di-
rect trustee to trustee transfer within 
60 days of the distribution. 
‘‘(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, a quali-
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fied birth or adoption distribution 
shall not be treated as an eligible roll-
over distribution. 
‘‘(III) TAXPAYER MUST INCLUDE 
TIN.—A distribution shall not be 
treated as a qualified birth or adop-
tion distribution with respect to any 
child or eligible adoptee unless the 
taxpayer includes the name, age, and 
TIN of such child or eligible adoptee 
on the taxpayer’s return of tax for the 
taxable year. 
‘‘(IV) DISTRIBUTIONS
TREATED 
AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—Any qualified birth or 
adoption distribution shall be treated 
as meeting the requirements of sec-
tions 
401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 
403(b)(11), 
and 
457(d)(1)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2019. 
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SEC. 113. INCREASE IN AGE FOR REQUIRED BEGINNING 
DATE FOR MANDATORY DISTRIBUTIONS. 
(a) IN GENERAL.—Section 401(a)(9)(C)(i)(I) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘age 701⁄2’’ and inserting ‘‘age 72’’. 
(b) SPOUSE BENEFICIARIES; SPECIAL RULE
FOR 
OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec-
tion 401(a)(9) of such Code are each amended by striking 
‘‘age 701⁄2’’ and inserting ‘‘age 72’’. 
(c) 
ACTUARIAL
ADJUSTMENT.—Section 
401(a)(9)(C)(iii) of such Code is amended by striking 
‘‘age 701⁄2’’ each place it appears and inserting ‘‘age 72’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The last sentence of section 408(b) of such 
Code is amended by striking ‘‘age 701⁄2’’ and insert-
ing ‘‘age 72’’. 
(2) Section 457(d)(1)(A)(i) of such Code is 
amended by striking ‘‘age 701⁄2’’ and inserting ‘‘age 
72’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions required to be 
made after December 31, 2019, with respect to individuals 
who attain age 701⁄2 after such date. 
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SEC. 114. SPECIAL RULES FOR MINIMUM FUNDING STAND-
ARDS FOR COMMUNITY NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Section 430 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
December 31, 2017, may elect to have the alter-
native standards described in paragraph (3) apply to 
such plan, and any plan sponsored by any member 
of the same controlled group. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary. Such election, once 
made with respect to a plan year, shall apply to all 
subsequent plan years unless revoked with the con-
sent of the Secretary. 
‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
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‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as pro-
vided in clause (ii), the first, second, and 
third segment rates in effect for any 
month for purposes of this section shall be 
8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for pur-
poses of determining the funding target 
and normal cost of a plan for any plan 
year, the present value of any benefits ac-
crued or earned under the plan for a plan 
year with respect to which an election 
under paragraph (1) is in effect shall be 
determined on the basis of the U.S. Treas-
ury obligation yield curve for the day that 
is the valuation date of such plan for such 
plan year. 
‘‘(iii) U.S. 
TREASURY
OBLIGATION 
YIELD CURVE.—For purposes of this sub-
section, the term ‘U.S. Treasury obligation 
yield curve’ means, with respect to any 
day, a yield curve which shall be prescribed 
by the Secretary for such day on interest- 
bearing obligations of the United States. 
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‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) 
for all plan years preceding the first plan 
year to which the election under paragraph 
(1) applies (and all shortfall amortization 
installments determined with respect to 
such bases) shall be reduced to zero under 
rules similar to the rules of subsection 
(c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding 
shortfall of such plan for such plan year 
(determined using the interest rates as 
modified under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 
30-YEAR
PERIOD.—Subpara-
graphs (A) and (B) of subsection (c)(2) 
shall be applied by substituting ‘30-plan- 
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year’ for ‘7-plan-year’ each place it ap-
pears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION FROM AT-RISK TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained by an employer which, 
as of December 31, 2017— 
‘‘(i) publishes and distributes daily, ei-
ther electronically or in printed form, 1 or 
more community newspapers in a single 
State, 
‘‘(ii) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, 
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‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons resid-
ing primarily in the State in which 
the community newspaper is pub-
lished, 
‘‘(II) for not less than 30 years 
by individuals who are members of the 
same family, 
‘‘(III) by a trust created or orga-
nized in the State in which the com-
munity newspaper is published, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), 
‘‘(IV) by an entity which is de-
scribed in section 501(c)(3) and ex-
empt from taxation under section 
501(a), which is organized and oper-
ated in the State in which the commu-
nity newspaper is published, and the 
primary purpose of which is to benefit 
communities in such State, or 
‘‘(V) by a combination of persons 
described in subclause (I), (III), or 
(IV), and 
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‘‘(iv) does not control, directly or indi-
rectly, any newspaper in any other State. 
‘‘(B) COMMUNITY NEWSPAPER.—The term 
‘community newspaper’ means a newspaper 
which primarily serves a metropolitan statistical 
area, as determined by the Office of Manage-
ment and Budget, with a population of not less 
than 100,000. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other 
person possesses, directly or indirectly, the 
power to direct or cause the direction and man-
agement of such person (including the power to 
elect a majority of the members of the board of 
directors of such person) through the ownership 
of voting securities. 
‘‘(5) CONTROLLED
GROUP.—For purposes of 
this subsection, the term ‘controlled group’ means all 
persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 as of the 
date of the enactment of this subsection.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Section 303 of the Em-
ployee Retirement Income Security Act of 1974 (29 
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pamtmann on DSKBFK8HB2PROD with BILLS
U.S.C. 1083) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
December 31, 2017, may elect to have the alter-
native standards described in paragraph (3) apply to 
such plan, and any plan sponsored by any member 
of the same controlled group. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary of the Treasury. Such 
election, once made with respect to a plan year, shall 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury. 
‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as pro-
vided in clause (ii), the first, second, and 
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third segment rates in effect for any 
month for purposes of this section shall be 
8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for pur-
poses of determining the funding target 
and normal cost of a plan for any plan 
year, the present value of any benefits ac-
crued or earned under the plan for a plan 
year with respect to which an election 
under paragraph (1) is in effect shall be 
determined on the basis of the U.S. Treas-
ury obligation yield curve for the day that 
is the valuation date of such plan for such 
plan year. 
‘‘(iii) U.S. 
TREASURY
OBLIGATION 
YIELD CURVE.—For purposes of this sub-
section, the term ‘U.S. Treasury obligation 
yield curve’ means, with respect to any 
day, a yield curve which shall be prescribed 
by the Secretary of the Treasury for such 
day on interest-bearing obligations of the 
United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
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‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) 
for all plan years preceding the first plan 
year to which the election under paragraph 
(1) applies (and all shortfall amortization 
installments determined with respect to 
such bases) shall be reduced to zero under 
rules similar to the rules of subsection 
(c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding 
shortfall of such plan for such plan year 
(determined using the interest rates as 
modified under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 
30-YEAR
PERIOD.—Subpara-
graphs (A) and (B) of subsection (c)(2) 
shall be applied by substituting ‘30-plan- 
year’ for ‘7-plan-year’ each place it ap-
pears. 
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‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION FROM AT-RISK TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained by an employer which, 
as of December 31, 2017— 
‘‘(i) publishes and distributes daily, ei-
ther electronically or in printed form— 
‘‘(I) a community newspaper, or 
‘‘(II) 1 or more community news-
papers in the same State, 
‘‘(ii) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, 
‘‘(iii) is controlled, directly or indi-
rectly— 
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‘‘(I) by 1 or more persons resid-
ing primarily in the State in which 
the community newspaper is pub-
lished, 
‘‘(II) for not less than 30 years 
by individuals who are members of the 
same family, 
‘‘(III) by a trust created or orga-
nized in the State in which the com-
munity newspaper is published, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), 
‘‘(IV) by an entity which is de-
scribed in section 501(c)(3) of the In-
ternal Revenue Code of 1986 and ex-
empt from taxation under section 
501(a) of such Code, which is orga-
nized and operated in the State in 
which the community newspaper is 
published, and the primary purpose of 
which is to benefit communities in 
such State, or 
‘‘(V) by a combination of persons 
described in subclause (I), (III), or 
(IV), and 
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‘‘(iv) does not control, directly or indi-
rectly, any newspaper in any other State. 
‘‘(B) COMMUNITY NEWSPAPER.—The term 
‘community newspaper’ means a newspaper 
which primarily serves a metropolitan statistical 
area, as determined by the Office of Manage-
ment and Budget, with a population of not less 
than 100,000. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other 
person possesses, directly or indirectly, the 
power to direct or cause the direction and man-
agement of such person (including the power to 
elect a majority of the members of the board of 
directors of such person) through the ownership 
of voting securities. 
‘‘(5) CONTROLLED
GROUP.—For purposes of 
this subsection, the term ‘controlled group’ means all 
persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 of the In-
ternal Revenue Code of 1986 as of the date of the 
enactment of this subsection. 
‘‘(6) EFFECT
ON
PREMIUM
RATE
CALCULA-
TION.—Notwithstanding any other provision of law 
or any regulation issued by the Pension Benefit 
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Guaranty Corporation, in the case of a community 
newspaper plan which elects the application of the 
alternative standards described in paragraph (3), the 
additional premium under section 4006(a)(3)(E) 
shall be determined as if such election had not been 
made.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years ending after Decem-
ber 31, 2017. 
SEC. 115. TREATING EXCLUDED DIFFICULTY OF CARE PAY-
MENTS 
AS 
COMPENSATION 
FOR 
DETER-
MINING RETIREMENT CONTRIBUTION LIMI-
TATIONS. 
(a) INDIVIDUAL RETIREMENT ACCOUNTS.— 
(1) IN GENERAL.—Section 408(o) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(5) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS
EXCLUDED
FROM
GROSS
INCOME.—In 
the case of an individual who for a taxable year ex-
cludes from gross income under section 131 a quali-
fied foster care payment which is a difficulty of care 
payment, if— 
‘‘(A) the deductible amount in effect for 
the taxable year under subsection (b), exceeds 
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‘‘(B) the amount of compensation includ-
ible in the individual’s gross income for the tax-
able year, 
the individual may elect to increase the nondeduct-
ible limit under paragraph (2) for the taxable year 
by an amount equal to the lesser of such excess or 
the amount so excluded.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to contributions after 
the date of the enactment of this Act. 
(b) DEFINED CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Section 415(c) of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(8) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS EXCLUDED FROM GROSS INCOME.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(B), in the case of an individual who 
for a taxable year excludes from gross income 
under section 131 a qualified foster care pay-
ment which is a difficulty of care payment, the 
participant’s compensation, or earned income, 
as the case may be, shall be increased by the 
amount so excluded. 
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‘‘(B) CONTRIBUTIONS ALLOCABLE TO DIF-
FICULTY
OF
CARE
PAYMENTS
TREATED
AS 
AFTER-TAX.—Any contribution by the partici-
pant which is allowable due to such increase— 
‘‘(i) shall be treated for purposes of 
this title as investment in the contract, and 
‘‘(ii) shall not cause a plan (and any 
arrangement which is part of such plan) to 
be treated as failing to meet any require-
ments of this chapter solely by reason of 
allowing any such contributions.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to plan years begin-
ning after December 31, 2015. 
TITLE II—ADMINISTRATIVE 
IMPROVEMENTS 
SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 
MAY BE TREATED AS IN EFFECT AS OF CLOSE 
OF YEAR. 
(a) IN GENERAL.—Subsection (b) of section 401 of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘RETROACTIVE CHANGES
IN 
PLAN.—A stock bonus’’ and inserting ‘‘PLAN 
AMENDMENTS.— 
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‘‘(1) CERTAIN
RETROACTIVE
CHANGES
IN 
PLAN.—A stock bonus’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) ADOPTION
OF
PLAN.—If an employer 
adopts a stock bonus, pension, profit-sharing, or an-
nuity plan after the close of a taxable year but be-
fore the time prescribed by law for filing the return 
of the employer for the taxable year (including ex-
tensions thereof), the employer may elect to treat 
the plan as having been adopted as of the last day 
of the taxable year.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plans adopted for taxable years 
beginning after December 31, 2019. 
SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF 
PLANS. 
(a) IN GENERAL.—The Secretary of the Treasury 
and the Secretary of Labor shall, in cooperation, modify 
the returns required under section 6058 of the Internal 
Revenue Code of 1986 and the reports required by section 
104 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1024) so that all members of a group 
of plans described in subsection (c) may file a single aggre-
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gated annual return or report satisfying the requirements 
of both such sections. 
(b) ADMINISTRATIVE
REQUIREMENTS.—In devel-
oping the consolidated return or report under subsection 
(a), the Secretary of the Treasury and the Secretary of 
Labor may require such return or report to include any 
information regarding each plan in the group as such Sec-
retaries determine is necessary or appropriate for the en-
forcement and administration of the Internal Revenue 
Code of 1986 and the Employee Retirement Income Secu-
rity Act of 1974. 
(c) PLANS DESCRIBED.—A group of plans is de-
scribed in this subsection if all plans in the group— 
(1) are individual account plans or defined con-
tribution plans (as defined in section 3(34) of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(34)) or in section 414(i) of the In-
ternal Revenue Code of 1986); 
(2) have— 
(A) the same trustee (as described in sec-
tion 403(a) of such Act (29 U.S.C. 1103(a))); 
(B) the same one or more named fidu-
ciaries (as described in section 402(a) of such 
Act (29 U.S.C. 1102(a))); 
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(C) the same administrator (as defined in 
section 3(16)(A) of such Act (29 U.S.C. 
1002(16)(A))) and plan administrator (as de-
fined in section 414(g) of the Internal Revenue 
Code of 1986); and 
(D) plan years beginning on the same 
date; and 
(3) provide the same investments or investment 
options to participants and beneficiaries. 
A plan not subject to title I of the Employee Retirement 
Income Security Act of 1974 shall be treated as meeting 
the requirements of paragraph (2) as part of a group of 
plans if the same person that performs each of the func-
tions described in such paragraph, as applicable, for all 
other plans in such group performs each of such functions 
for such plan. 
(d) CLARIFICATION RELATING TO ELECTRONIC FIL-
ING
OF
RETURNS
FOR
DEFERRED
COMPENSATION 
PLANS.— 
(1) IN GENERAL.—Section 6011(e) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(6) APPLICATION OF NUMERICAL LIMITATION 
TO RETURNS RELATING TO DEFERRED COMPENSA-
TION PLANS.—For purposes of applying the numer-
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ical limitation under paragraph (2)(A) to any return 
required under section 6058, information regarding 
each plan for which information is provided on such 
return shall be treated as a separate return.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to returns required to 
be filed with respect to plan years beginning after 
December 31, 2019. 
(e) EFFECTIVE DATE.—The modification required by 
subsection (a) shall be implemented not later than Janu-
ary 1, 2022, and shall apply to returns and reports for 
plan years beginning after December 31, 2021. 
SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME. 
(a) IN GENERAL.—Subparagraph (B) of section 
105(a)(2) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1025(a)(2)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking ‘‘diversification.’’ 
and inserting ‘‘diversification, and’’; and 
(3) by inserting at the end the following: 
‘‘(iii) the lifetime income disclosure 
described in subparagraph (D)(i). 
In the case of pension benefit statements de-
scribed in clause (i) of paragraph (1)(A), a life-
time income disclosure under clause (iii) of this 
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subparagraph shall be required to be included 
in only one pension benefit statement during 
any one 12-month period.’’. 
(b) LIFETIME INCOME.—Paragraph (2) of section 
105(a) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1025(a)) is amended by adding at the 
end the following new subparagraph: 
‘‘(D) LIFETIME INCOME DISCLOSURE.— 
‘‘(i) IN GENERAL.— 
‘‘(I) DISCLOSURE.—A lifetime in-
come disclosure shall set forth the life-
time income stream equivalent of the 
total benefits accrued with respect to 
the participant or beneficiary. 
‘‘(II) LIFETIME INCOME STREAM 
EQUIVALENT
OF
THE
TOTAL
BENE-
FITS ACCRUED.—For purposes of this 
subparagraph, the term ‘lifetime in-
come stream equivalent of the total 
benefits accrued’ means the amount of 
monthly payments the participant or 
beneficiary would receive if the total 
accrued benefits of such participant or 
beneficiary were used to provide life-
time income streams described in sub-
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clause (III), based on assumptions 
specified in rules prescribed by the 
Secretary. 
‘‘(III) 
LIFETIME
INCOME 
STREAMS.—The 
lifetime 
income 
streams described in this subclause 
are a qualified joint and survivor an-
nuity (as defined in section 205(d)), 
based on assumptions specified in 
rules prescribed by the Secretary, in-
cluding the assumption that the par-
ticipant or beneficiary has a spouse of 
equal age, and a single life annuity. 
Such lifetime income streams may 
have a term certain or other features 
to the extent permitted under rules 
prescribed by the Secretary. 
‘‘(ii) MODEL DISCLOSURE.—Not later 
than 1 year after the date of the enact-
ment of the Setting Every Community Up 
for Retirement Enhancement Act of 2019, 
the Secretary shall issue a model lifetime 
income disclosure, written in a manner so 
as to be understood by the average plan 
participant, which— 
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‘‘(I) explains that the lifetime in-
come stream equivalent is only pro-
vided as an illustration; 
‘‘(II) explains that the actual 
payments under the lifetime income 
stream described in clause (i)(III) 
which may be purchased with the 
total benefits accrued will depend on 
numerous factors and may vary sub-
stantially from the lifetime income 
stream equivalent in the disclosures; 
‘‘(III) explains the assumptions 
upon which the lifetime income stream 
equivalent was determined; and 
‘‘(IV) provides such other similar 
explanations as the Secretary con-
siders appropriate. 
‘‘(iii) ASSUMPTIONS
AND
RULES.— 
Not later than 1 year after the date of the 
enactment of the Setting Every Commu-
nity Up for Retirement Enhancement Act 
of 2019, the Secretary shall— 
‘‘(I) prescribe assumptions which 
administrators of individual account 
plans may use in converting total ac-
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crued benefits into lifetime income 
stream equivalents for purposes of 
this subparagraph; and 
‘‘(II) issue interim final rules 
under clause (i). 
In prescribing assumptions under sub-
clause (I), the Secretary may prescribe a 
single set of specific assumptions (in which 
case the Secretary may issue tables or fac-
tors which facilitate such conversions), or 
ranges of permissible assumptions. To the 
extent that an accrued benefit is or may be 
invested in a lifetime income stream de-
scribed in clause (i)(III), the assumptions 
prescribed under subclause (I) shall, to the 
extent appropriate, permit administrators 
of individual account plans to use the 
amounts payable under such lifetime in-
come stream as a lifetime income stream 
equivalent. 
‘‘(iv) LIMITATION ON LIABILITY.—No 
plan fiduciary, plan sponsor, or other per-
son shall have any liability under this title 
solely by reason of the provision of lifetime 
income stream equivalents which are de-
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rived in accordance with the assumptions 
and rules described in clause (iii) and 
which include the explanations contained in 
the model lifetime income disclosure de-
scribed in clause (ii). This clause shall 
apply without regard to whether the provi-
sion of such lifetime income stream equiva-
lent is required by subparagraph (B)(iii). 
‘‘(v) EFFECTIVE DATE.—The require-
ment in subparagraph (B)(iii) shall apply 
to pension benefit statements furnished 
more than 12 months after the latest of 
the issuance by the Secretary of— 
‘‘(I) interim final rules under 
clause (i); 
‘‘(II) the model disclosure under 
clause (ii); or 
‘‘(III) the assumptions under 
clause (iii).’’. 
SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 
LIFETIME INCOME PROVIDER. 
Section 404 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1104) is amended by adding 
at the end the following: 
‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 
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‘‘(1) IN GENERAL.—With respect to the selec-
tion of an insurer for a guaranteed retirement in-
come contract, the requirements of subsection 
(a)(1)(B) will be deemed to be satisfied if a fidu-
ciary— 
‘‘(A) engages in an objective, thorough, 
and analytical search for the purpose of identi-
fying insurers from which to purchase such con-
tracts; 
‘‘(B) with respect to each insurer identified 
under subparagraph (A)— 
‘‘(i) considers the financial capability 
of such insurer to satisfy its obligations 
under the guaranteed retirement income 
contract; and 
‘‘(ii) considers the cost (including fees 
and commissions) of the guaranteed retire-
ment income contract offered by the in-
surer in relation to the benefits and prod-
uct features of the contract and adminis-
trative services to be provided under such 
contract; and 
‘‘(C) on the basis of such consideration, 
concludes that— 
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‘‘(i) at the time of the selection, the 
insurer is financially capable of satisfying 
its obligations under the guaranteed retire-
ment income contract; and 
‘‘(ii) the relative cost of the selected 
guaranteed retirement income contract as 
described in subparagraph (B)(ii) is rea-
sonable. 
‘‘(2) FINANCIAL
CAPABILITY
OF
THE
IN-
SURER.—A fiduciary will be deemed to satisfy the 
requirements of paragraphs (1)(B)(i) and (1)(C)(i) 
if— 
‘‘(A) the fiduciary obtains written rep-
resentations from the insurer that— 
‘‘(i) the insurer is licensed to offer 
guaranteed retirement income contracts; 
‘‘(ii) the insurer, at the time of selec-
tion and for each of the immediately pre-
ceding 7 plan years— 
‘‘(I) operates under a certificate 
of authority from the insurance com-
missioner of its domiciliary State 
which has not been revoked or sus-
pended; 
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‘‘(II) has filed audited financial 
statements in accordance with the 
laws of its domiciliary State under ap-
plicable statutory accounting prin-
ciples; 
‘‘(III) maintains (and has main-
tained) reserves which satisfies all the 
statutory requirements of all States 
where the insurer does business; and 
‘‘(IV) is not operating under an 
order of supervision, rehabilitation, or 
liquidation; 
‘‘(iii) the insurer undergoes, at least 
every 5 years, a financial examination 
(within the meaning of the law of its domi-
ciliary State) by the insurance commis-
sioner of the domiciliary State (or rep-
resentative, designee, or other party ap-
proved by such commissioner); and 
‘‘(iv) the insurer will notify the fidu-
ciary of any change in circumstances oc-
curring after the provision of the represen-
tations in clauses (i), (ii), and (iii) which 
would preclude the insurer from making 
such representations at the time of 
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issuance of the guaranteed retirement in-
come contract; and 
‘‘(B) after receiving such representations 
and as of the time of selection, the fiduciary 
has not received any notice described in sub-
paragraph (A)(iv) and is in possession of no 
other information which would cause the fidu-
ciary to question the representations provided. 
‘‘(3) NO
REQUIREMENT
TO
SELECT
LOWEST 
COST.—Nothing in this subsection shall be construed 
to require a fiduciary to select the lowest cost con-
tract. A fiduciary may consider the value of a con-
tract, including features and benefits of the contract 
and attributes of the insurer (including, without lim-
itation, the insurer’s financial strength) in conjunc-
tion with the cost of the contract. 
‘‘(4) TIME OF SELECTION.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the time of selection is— 
‘‘(i) the time that the insurer and the 
contract are selected for distribution of 
benefits to a specific participant or bene-
ficiary; or 
‘‘(ii) if the fiduciary periodically re-
views the continuing appropriateness of the 
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conclusion described in paragraph (1)(C) 
with respect to a selected insurer, taking 
into account the considerations described 
in such paragraph, the time that the in-
surer and the contract are selected to pro-
vide benefits at future dates to participants 
or beneficiaries under the plan. 
Nothing in the preceding sentence shall be con-
strued to require the fiduciary to review the ap-
propriateness of a selection after the purchase 
of a contract for a participant or beneficiary. 
‘‘(B) PERIODIC REVIEW.—A fiduciary will 
be deemed to have conducted the periodic re-
view described in subparagraph (A)(ii) if the fi-
duciary obtains the written representations de-
scribed in clauses (i), (ii), and (iii) of paragraph 
(2)(A) from the insurer on an annual basis, un-
less the fiduciary receives any notice described 
in paragraph (2)(A)(iv) or otherwise becomes 
aware of facts that would cause the fiduciary to 
question such representations. 
‘‘(5) LIMITED
LIABILITY.—A fiduciary which 
satisfies the requirements of this subsection shall not 
be liable following the distribution of any benefit, or 
the investment by or on behalf of a participant or 
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beneficiary pursuant to the selected guaranteed re-
tirement income contract, for any losses that may 
result to the participant or beneficiary due to an in-
surer’s inability to satisfy its financial obligations 
under the terms of such contract. 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) INSURER.—The term ‘insurer’ means 
an insurance company, insurance service, or in-
surance organization, including affiliates of 
such companies. 
‘‘(B) GUARANTEED RETIREMENT INCOME 
CONTRACT.—The term ‘guaranteed retirement 
income contract’ means an annuity contract for 
a fixed term or a contract (or provision or fea-
ture thereof) which provides guaranteed bene-
fits annually (or more frequently) for at least 
the remainder of the life of the participant or 
the joint lives of the participant and the partici-
pant’s designated beneficiary as part of an indi-
vidual account plan.’’. 
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SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by redesignating subsection (o) as sub-
section (p); and 
(2) by inserting after subsection (n) the fol-
lowing new subsection: 
‘‘(o) 
SPECIAL
RULES
FOR
APPLYING
NON-
DISCRIMINATION RULES TO PROTECT OLDER, LONGER 
SERVICE AND GRANDFATHERED PARTICIPANTS.— 
‘‘(1) TESTING
OF
DEFINED
BENEFIT
PLANS 
WITH CLOSED CLASSES OF PARTICIPANTS.— 
‘‘(A) BENEFITS, RIGHTS, OR
FEATURES 
PROVIDED
TO
CLOSED
CLASSES.—A defined 
benefit plan which provides benefits, rights, or 
features to a closed class of participants shall 
not fail to satisfy the requirements of sub-
section (a)(4) by reason of the composition of 
such closed class or the benefits, rights, or fea-
tures provided to such closed class, if— 
‘‘(i) for the plan year as of which the 
class closes and the 2 succeeding plan 
years, such benefits, rights, and features 
satisfy the requirements of subsection 
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(a)(4) (without regard to this subpara-
graph but taking into account the rules of 
subparagraph (I)), 
‘‘(ii) after the date as of which the 
class was closed, any plan amendment 
which modifies the closed class or the ben-
efits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iii) the class was closed before April 
5, 2017, or the plan is described in sub-
paragraph (C). 
‘‘(B) AGGREGATE TESTING WITH DEFINED 
CONTRIBUTION PLANS PERMITTED ON A BENE-
FITS BASIS.— 
‘‘(i) IN
GENERAL.—For purposes of 
determining compliance with subsection 
(a)(4) and section 410(b), a defined benefit 
plan described in clause (iii) may be aggre-
gated and tested on a benefits basis with 
1 or more defined contribution plans, in-
cluding with the portion of 1 or more de-
fined contribution plans which— 
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‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contribu-
tions or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a 
tax credit employee stock ownership 
plan (within the meaning of section 
409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—For purposes of clause 
(i), if a defined benefit plan is aggregated 
with a portion of a defined contribution 
plan providing matching contributions— 
‘‘(I) such defined benefit plan 
must also be aggregated with any por-
tion of such defined contribution plan 
which provides elective deferrals de-
scribed in subparagraph (A) or (C) of 
section 402(g)(3), and 
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‘‘(II) such matching contribu-
tions shall be treated in the same 
manner as nonelective contributions, 
including for purposes of applying the 
rules of subsection (l). 
‘‘(iii) PLANS DESCRIBED.—A defined 
benefit plan is described in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
‘‘(II) for the plan year as of 
which the class closes and the 2 suc-
ceeding plan years, the plan satisfies 
the requirements of section 410(b) 
and subsection (a)(4) (without regard 
to this subparagraph but taking into 
account the rules of subparagraph 
(I)), 
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ment which modifies the closed class 
or the benefits provided to such closed 
class does not discriminate signifi-
cantly in favor of highly compensated 
employees, and 
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‘‘(IV) the class was closed before 
April 5, 2017, or the plan is described 
in subparagraph (C). 
‘‘(C) PLANS DESCRIBED.—A plan is de-
scribed in this subparagraph if, taking into ac-
count any predecessor plan— 
‘‘(i) such plan has been in effect for 
at least 5 years as of the date the class is 
closed, and 
‘‘(ii) during the 5-year period pre-
ceding the date the class is closed, there 
has not been a substantial increase in the 
coverage or value of the benefits, rights, or 
features described in subparagraph (A) or 
in the coverage or benefits under the plan 
described in subparagraph (B)(iii) (which-
ever is applicable). 
‘‘(D) DETERMINATION
OF
SUBSTANTIAL 
INCREASE FOR BENEFITS, RIGHTS, AND FEA-
TURES.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (A)(iii), a plan shall 
be treated as having had a substantial increase 
in coverage or value of the benefits, rights, or 
features described in subparagraph (A) during 
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the applicable 5-year period only if, during such 
period— 
‘‘(i) the number of participants cov-
ered by such benefits, rights, or features 
on the date such period ends is more than 
50 percent greater than the number of 
such participants on the first day of the 
plan year in which such period began, or 
‘‘(ii) such benefits, rights, and fea-
tures have been modified by 1 or more 
plan amendments in such a way that, as of 
the date the class is closed, the value of 
such benefits, rights, and features to the 
closed class as a whole is substantially 
greater than the value as of the first day 
of such 5-year period, solely as a result of 
such amendments. 
‘‘(E) DETERMINATION
OF
SUBSTANTIAL 
INCREASE FOR AGGREGATE TESTING ON BENE-
FITS BASIS.—In applying subparagraph (C)(ii) 
for purposes of subparagraph (B)(iii)(IV), a 
plan shall be treated as having had a substan-
tial increase in coverage or benefits during the 
applicable 5-year period only if, during such pe-
riod— 
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‘‘(i) the number of participants bene-
fitting under the plan on the date such pe-
riod ends is more than 50 percent greater 
than the number of such participants on 
the first day of the plan year in which such 
period began, or 
‘‘(ii) the average benefit provided to 
such participants on the date such period 
ends is more than 50 percent greater than 
the average benefit provided on the first 
day of the plan year in which such period 
began. 
‘‘(F) 
CERTAIN
EMPLOYEES
DIS-
REGARDED.—For purposes of subparagraphs 
(D) and (E), any increase in coverage or value 
or in coverage or benefits, whichever is applica-
ble, which is attributable to such coverage and 
value or coverage and benefits provided to em-
ployees— 
‘‘(i) who became participants as a re-
sult of a merger, acquisition, or similar 
event which occurred during the 7-year pe-
riod preceding the date the class is closed, 
or 
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‘‘(ii) who became participants by rea-
son of a merger of the plan with another 
plan which had been in effect for at least 
5 years as of the date of the merger, 
shall be disregarded, except that clause (ii) 
shall apply for purposes of subparagraph (D) 
only if, under the merger, the benefits, rights, 
or features under 1 plan are conformed to the 
benefits, rights, or features of the other plan 
prospectively. 
‘‘(G) RULES RELATING TO AVERAGE BEN-
EFIT.—For purposes of subparagraph (E)— 
‘‘(i) the average benefit provided to 
participants under the plan will be treated 
as having remained the same between the 
2 dates described in subparagraph (E)(ii) 
if the benefit formula applicable to such 
participants has not changed between such 
dates, and 
‘‘(ii) if the benefit formula applicable 
to 1 or more participants under the plan 
has changed between such 2 dates, then 
the average benefit under the plan shall be 
considered to have increased by more than 
50 percent only if— 
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‘‘(I) SPECIAL
RULES.—For purposes of 
subparagraphs (A)(i) and (B)(iii)(II), the fol-
lowing rules shall apply: 
‘‘(i) In applying section 410(b)(6)(C), 
the closing of the class of participants shall 
not be treated as a significant change in 
coverage under section 410(b)(6)(C)(i)(II). 
‘‘(ii) Two or more plans shall not fail 
to be eligible to be aggregated and treated 
as a single plan solely by reason of having 
different plan years. 
‘‘(iii) Changes in the employee popu-
lation shall be disregarded to the extent at-
tributable to individuals who become em-
ployees or cease to be employees, after the 
date the class is closed, by reason of a 
merger, acquisition, divestiture, or similar 
event. 
‘‘(iv) Aggregation and all other testing 
methodologies otherwise applicable under 
subsection (a)(4) and section 410(b) may 
be taken into account. 
The rule of clause (ii) shall also apply for pur-
poses of determining whether plans to which 
subparagraph (B)(i) applies may be aggregated 
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and treated as 1 plan for purposes of deter-
mining whether such plans meet the require-
ments of subsection (a)(4) and section 410(b). 
‘‘(J) SPUN-OFF PLANS.—For purposes of 
this paragraph, if a portion of a defined benefit 
plan described in subparagraph (A) or (B)(iii) 
is spun off to another employer and the spun- 
off plan continues to satisfy the requirements 
of— 
‘‘(i) 
subparagraph 
(A)(i) 
or 
(B)(iii)(II), whichever is applicable, if the 
original plan was still within the 3-year pe-
riod described in such subparagraph at the 
time of the spin off, and 
‘‘(ii) 
subparagraph 
(A)(ii) 
or 
(B)(iii)(III), whichever is applicable, 
the treatment under subparagraph (A) or (B) 
of the spun-off plan shall continue with respect 
to such other employer. 
‘‘(2) TESTING
OF
DEFINED
CONTRIBUTION 
PLANS.— 
‘‘(A) TESTING ON A BENEFITS BASIS.—A 
defined contribution plan shall be permitted to 
be tested on a benefits basis if— 
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‘‘(i) such defined contribution plan 
provides make-whole contributions to a 
closed class of participants whose accruals 
under a defined benefit plan have been re-
duced or eliminated, 
‘‘(ii) for the plan year of the defined 
contribution plan as of which the class eli-
gible to receive such make-whole contribu-
tions closes and the 2 succeeding plan 
years, such closed class of participants sat-
isfies 
the 
requirements 
of 
section 
410(b)(2)(A)(i) (determined by applying 
the rules of paragraph (1)(I)), 
‘‘(iii) after the date as of which the 
class was closed, any plan amendment to 
the defined contribution plan which modi-
fies the closed class or the allocations, ben-
efits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iv) the class was closed before April 
5, 2017, or the defined benefit plan under 
clause (i) is described in paragraph (1)(C) 
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(as applied for purposes of paragraph 
(1)(B)(iii)(IV)). 
‘‘(B) AGGREGATION WITH PLANS INCLUD-
ING MATCHING CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—With respect to 1 
or more defined contribution plans de-
scribed in subparagraph (A), for purposes 
of determining compliance with subsection 
(a)(4) and section 410(b), the portion of 
such plans which provides make-whole con-
tributions or other nonelective contribu-
tions may be aggregated and tested on a 
benefits basis with the portion of 1 or 
more other defined contribution plans 
which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contribu-
tions or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a 
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tax credit employee stock ownership 
plan (within the meaning of section 
409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—Rules similar to the 
rules of paragraph (1)(B)(ii) shall apply 
for purposes of clause (i). 
‘‘(C) SPECIAL
RULES
FOR
TESTING
DE-
FINED
CONTRIBUTION
PLAN
FEATURES
PRO-
VIDING MATCHING CONTRIBUTIONS TO CERTAIN 
OLDER, LONGER
SERVICE
PARTICIPANTS.—In 
the case of a defined contribution plan which 
provides benefits, rights, or features to a closed 
class of participants whose accruals under a de-
fined benefit plan have been reduced or elimi-
nated, the plan shall not fail to satisfy the re-
quirements of subsection (a)(4) solely by reason 
of the composition of the closed class or the 
benefits, rights, or features provided to such 
closed class if the defined contribution plan and 
defined benefit plan otherwise meet the require-
ments of subparagraph (A) but for the fact that 
the make-whole contributions under the defined 
contribution plan are made in whole or in part 
through matching contributions. 
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‘‘(D) SPUN-OFF PLANS.—For purposes of 
this paragraph, if a portion of a defined con-
tribution plan described in subparagraph (A) or 
(C) is spun off to another employer, the treat-
ment under subparagraph (A) or (C) of the 
spun-off plan shall continue with respect to the 
other employer if such plan continues to comply 
with the requirements of clauses (ii) (if the 
original plan was still within the 3-year period 
described in such clause at the time of the spin 
off) and (iii) of subparagraph (A), as deter-
mined for purposes of subparagraph (A) or (C), 
whichever is applicable. 
‘‘(3) DEFINITIONS
AND
SPECIAL
RULE.—For 
purposes of this subsection— 
‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex-
cept as otherwise provided in paragraph (2)(C), 
the term ‘make-whole contributions’ means non-
elective allocations for each employee in the 
class which are reasonably calculated, in a con-
sistent manner, to replace some or all of the re-
tirement benefits which the employee would 
have received under the defined benefit plan 
and any other plan or qualified cash or deferred 
arrangement under subsection (k)(2) if no 
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change had been made to such defined benefit 
plan and such other plan or arrangement. For 
purposes of the preceding sentence, consistency 
shall not be required with respect to employees 
who were subject to different benefit formulas 
under the defined benefit plan. 
‘‘(B) REFERENCES TO CLOSED CLASS OF 
PARTICIPANTS.—References to a closed class of 
participants and similar references to a closed 
class shall include arrangements under which 1 
or more classes of participants are closed, ex-
cept that 1 or more classes of participants 
closed on different dates shall not be aggre-
gated for purposes of determining the date any 
such class was closed. 
‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 
The term ‘highly compensated employee’ has 
the meaning given such term in section 
414(q).’’. 
(b) 
PARTICIPATION
REQUIREMENTS.—Paragraph 
(26) of section 401(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subparagraph: 
‘‘(I) PROTECTED PARTICIPANTS.— 
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‘‘(i) IN
GENERAL.—A plan shall be 
deemed to satisfy the requirements of sub-
paragraph (A) if— 
‘‘(I) the plan is amended— 
‘‘(aa) to cease all benefit ac-
cruals, or 
‘‘(bb) to provide future ben-
efit accruals only to a closed 
class of participants, 
‘‘(II) the plan satisfies subpara-
graph (A) (without regard to this sub-
paragraph) as of the effective date of 
the amendment, and 
‘‘(III) the amendment was adopt-
ed before April 5, 2017, or the plan is 
described in clause (ii). 
‘‘(ii) PLANS DESCRIBED.—A plan is 
described in this clause if the plan would 
be described in subsection (o)(1)(C), as ap-
plied 
for 
purposes 
of 
subsection 
(o)(1)(B)(iii)(IV) and by treating the effec-
tive date of the amendment as the date the 
class was closed for purposes of subsection 
(o)(1)(C). 
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‘‘(iii) SPECIAL RULES.—For purposes 
of clause (i)(II), in applying section 
410(b)(6)(C), the amendments described in 
clause (i) shall not be treated as a signifi-
cant change in coverage under section 
410(b)(6)(C)(i)(II). 
‘‘(iv) SPUN-OFF
PLANS.—For pur-
poses of this subparagraph, if a portion of 
a plan described in clause (i) is spun off to 
another employer, the treatment under 
clause (i) of the spun-off plan shall con-
tinue with respect to the other employer.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall take effect on the date of the enactment of this 
Act, without regard to whether any plan modifica-
tions referred to in such amendments are adopted or 
effective before, on, or after such date of enactment. 
(2) SPECIAL RULES.— 
(A) ELECTION
OF
EARLIER
APPLICA-
TION.—At the election of the plan sponsor, the 
amendments made by this section shall apply to 
plan years beginning after December 31, 2013. 
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(B) CLOSED CLASSES OF PARTICIPANTS.— 
For 
purposes 
of 
paragraphs 
(1)(A)(iii), 
(1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 
of the Internal Revenue Code of 1986 (as added 
by this section), a closed class of participants 
shall be treated as being closed before April 5, 
2017, if the plan sponsor’s intention to create 
such closed class is reflected in formal written 
documents and communicated to participants 
before such date. 
(C) 
CERTAIN
POST-ENACTMENT
PLAN 
AMENDMENTS.—A plan shall not be treated as 
failing to be eligible for the application of sec-
tion 
401(o)(1)(A), 
401(o)(1)(B)(iii), 
or 
401(a)(26) of such Code (as added by this sec-
tion) to such plan solely because in the case 
of— 
(i) such section 401(o)(1)(A), the plan 
was amended before the date of the enact-
ment of this Act to eliminate 1 or more 
benefits, rights, or features, and is further 
amended after such date of enactment to 
provide such previously eliminated benefits, 
rights, or features to a closed class of par-
ticipants, or 
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(ii) such section 401(o)(1)(B)(iii) or 
section 401(a)(26), the plan was amended 
before the date of the enactment of this 
Act to cease all benefit accruals, and is 
further amended after such date of enact-
ment to provide benefit accruals to a closed 
class of participants. 
Any such section shall only apply if the plan 
otherwise meets the requirements of such sec-
tion and in applying such section, the date the 
class of participants is closed shall be the effec-
tive date of the later amendment. 
TITLE III—OTHER BENEFITS 
SEC. 301. BENEFITS PROVIDED TO VOLUNTEER FIRE-
FIGHTERS AND EMERGENCY MEDICAL RE-
SPONDERS. 
(a) INCREASE IN DOLLAR LIMITATION ON QUALI-
FIED
PAYMENTS.—Subparagraph 
(B) 
of 
section 
139B(c)(2) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$30’’ and inserting ‘‘$50’’. 
(b) EXTENSION.—Section 139B(d) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘beginning 
after December 31, 2010.’’ and inserting ‘‘beginning— 
‘‘(1) after December 31, 2010, and before Jan-
uary 1, 2020, or 
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‘‘(2) after December 31, 2020.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 302. EXPANSION OF SECTION 529 PLANS. 
(a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSO-
CIATED
WITH
REGISTERED
APPRENTICESHIP
PRO-
GRAMS.—Section 529(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
paragraph: 
‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSO-
CIATED
WITH
REGISTERED
APPRENTICESHIP
PRO-
GRAMS.—Any reference in this subsection to the 
term ‘qualified higher education expense’ shall in-
clude a reference to expenses for fees, books, sup-
plies, and equipment required for the participation 
of a designated beneficiary in an apprenticeship pro-
gram registered and certified with the Secretary of 
Labor under section 1 of the National Apprentice-
ship Act (29 U.S.C. 50).’’. 
(b) DISTRIBUTIONS FOR CERTAIN HOMESCHOOLING 
EXPENSES.—Section 529(c)(7) of such Code is amended 
by striking ‘‘include a reference to’’ and all that follows 
and inserting: ‘‘include a reference to— 
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‘‘(A) expenses for tuition in connection 
with enrollment or attendance of a designated 
beneficiary at an elementary or secondary pub-
lic, private, or religious school, and 
‘‘(B) expenses, with respect to a des-
ignated beneficiary, for— 
‘‘(i) curriculum and curricular mate-
rials, 
‘‘(ii) books or other instructional ma-
terials, 
‘‘(iii) online educational materials, 
‘‘(iv) tuition for tutoring or edu-
cational classes outside of the home (but 
only if the tutor or class instructor is not 
related (within the meaning of section 
152(d)(2)) to the student), 
‘‘(v) dual enrollment in an institution 
of higher education, and 
‘‘(vi) educational therapies for stu-
dents with disabilities, 
in connection with a homeschool (whether treat-
ed as a homeschool or a private school for pur-
poses of applicable State law).’’. 
(c) DISTRIBUTIONS
FOR QUALIFIED EDUCATION 
LOAN REPAYMENTS.— 
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(1) IN GENERAL.—Section 529(c) of such Code, 
as amended by subsection (a), is amended by adding 
at the end the following new paragraph: 
‘‘(9) TREATMENT
OF
QUALIFIED
EDUCATION 
LOAN REPAYMENTS.— 
‘‘(A) IN GENERAL.—Any reference in this 
subsection to the term ‘qualified higher edu-
cation expense’ shall include a reference to 
amounts paid as principal or interest on any 
qualified education loan (as defined in section 
221(d)) of the designated beneficiary or a sib-
ling of the designated beneficiary. 
‘‘(B) LIMITATION.—The amount of dis-
tributions treated as a qualified higher edu-
cation expense under this paragraph with re-
spect to the loans of any individual shall not ex-
ceed $10,000 (reduced by the amount of dis-
tributions so treated for all prior taxable years). 
‘‘(C) SPECIAL
RULES
FOR
SIBLINGS
OF 
THE DESIGNATED BENEFICIARY.— 
‘‘(i) SEPARATE
ACCOUNTING.—For 
purposes of subparagraph (B) and sub-
section (d), amounts treated as a qualified 
higher education expense with respect to 
the loans of a sibling of the designated 
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beneficiary shall be taken into account 
with respect to such sibling and not with 
respect to such designated beneficiary. 
‘‘(ii) SIBLING
DEFINED.—For pur-
poses of this paragraph, the term ‘sibling’ 
means an individual who bears a relation-
ship to the designated beneficiary which is 
described in section 152(d)(2)(B).’’. 
(2) COORDINATION WITH DEDUCTION FOR STU-
DENT LOAN INTEREST.—Section 221(e)(1) of such 
Code is amended by adding at the end the following: 
‘‘The deduction otherwise allowable under subsection 
(a) (prior to the application of subsection (b)) to the 
taxpayer for any taxable year shall be reduced (but 
not below zero) by so much of the distributions 
treated as a qualified higher education expense 
under section 529(c)(9) with respect to loans of the 
taxpayer as would be includible in gross income 
under section 529(c)(3)(A) for such taxable year but 
for such treatment.’’. 
(d) DISTRIBUTIONS FOR CERTAIN ELEMENTARY AND 
SECONDARY SCHOOL EXPENSES IN ADDITION TO TUI-
TION.—Section 529(c)(7)(A) of such Code, as amended by 
subsection (b), is amended to read as follows: 
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‘‘(A) 
expenses 
described 
in 
section 
530(b)(3)(A)(i) in connection with enrollment 
or attendance of a designated beneficiary at an 
elementary or secondary public, private, or reli-
gious school, and’’. 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2018. 
TITLE IV—REVENUE 
PROVISIONS 
SEC. 401. MODIFICATIONS OF REQUIRED DISTRIBUTION 
RULES FOR DESIGNATED BENEFICIARIES. 
(a) MODIFICATION OF RULES WHERE EMPLOYEE 
DIES BEFORE ENTIRE DISTRIBUTION.— 
(1) IN GENERAL.—Section 401(a)(9) of the In-
ternal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(H) SPECIAL RULES FOR CERTAIN DE-
FINED CONTRIBUTION PLANS.—In the case of a 
defined contribution plan, if an employee dies 
before the distribution of the employee’s entire 
interest— 
‘‘(i) IN GENERAL.—Except in the case 
of a beneficiary who is not a designated 
beneficiary, subparagraph (B)(ii)— 
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‘‘(I) shall be applied by sub-
stituting ‘10 years’ for ‘5 years’, and 
‘‘(II) shall apply whether or not 
distributions of the employee’s inter-
ests have begun in accordance with 
subparagraph (A). 
‘‘(ii) EXCEPTION ONLY FOR ELIGIBLE 
DESIGNATED
BENEFICIARIES.—Subpara-
graph (B)(iii) shall apply only in the case 
of an eligible designated beneficiary. 
‘‘(iii) RULES UPON DEATH OF ELIGI-
BLE DESIGNATED BENEFICIARY.—If an el-
igible designated beneficiary dies before the 
portion of the employee’s interest to which 
this subparagraph applies is entirely dis-
tributed, the exception under clause (iii) 
shall not apply to any beneficiary of such 
eligible designated beneficiary and the re-
mainder of such portion shall be distrib-
uted within 10 years after the death of 
such eligible designated beneficiary. 
‘‘(iv) APPLICATION TO ELIGIBLE RE-
TIREMENT PLANS.—For purposes of apply-
ing the provisions of this subparagraph in 
determining the amounts required to be 
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distributed pursuant to this paragraph, all 
eligible retirement plans (as defined in sec-
tion 402(c)(8)(B)) other than a defined 
benefit plan shall be treated as a defined 
contribution plan.’’. 
(2) DEFINITION
OF
ELIGIBLE
DESIGNATED 
BENEFICIARY.—Section 401(a)(9)(E) of such Code 
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 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)), 
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‘‘(III) disabled (within the mean-
ing of section 72(m)(7)), 
‘‘(IV) a chronically ill individual 
(within 
the 
meaning 
of 
section 
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 which is 
reasonably expected to be lengthy in 
nature), or 
‘‘(V) an individual not described 
in any of the preceding subclauses 
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 any remainder of the portion 
of the individual’s interest to which sub-
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paragraph (H)(ii) applies shall be distrib-
uted within 10 years after such date. 
‘‘(iv) TIME FOR DETERMINATION OF 
ELIGIBLE
DESIGNATED
BENEFICIARY.— 
The determination of whether a designated 
beneficiary is an eligible designated bene-
ficiary shall be made as of the date of 
death of the employee.’’. 
(3) EFFECTIVE DATES.— 
(A) IN GENERAL.—Except as provided in 
this paragraph and paragraphs (4) and (5), the 
amendments made by this subsection shall 
apply to distributions with respect to employees 
who die after December 31, 2019. 
(B) 
COLLECTIVE
BARGAINING
EXCEP-
TION.—In the case of a plan maintained pursu-
ant to 1 or more collective bargaining agree-
ments between employee representatives and 1 
or more employers ratified before the date of 
enactment of this Act, the amendments made 
by this subsection shall apply to distributions 
with respect to employees who die in calendar 
years beginning after the earlier of— 
(i) the later of— 
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(I) the date on which the last of 
such collective bargaining agreements 
terminates (determined without re-
gard to any extension thereof agreed 
to on or after the date of the enact-
ment of this Act), or 
(II) December 31, 2019, or 
(ii) December 31, 2021. 
For purposes of clause (i)(I), any plan amend-
ment made pursuant to a collective bargaining 
agreement relating to the plan which amends 
the plan solely to conform to any requirement 
added by this section shall not be treated as a 
termination of such collective bargaining agree-
ment. 
(C) GOVERNMENTAL PLANS.—In the case 
of a governmental plan (as defined in section 
414(d) of the Internal Revenue Code of 1986), 
subparagraph (A) shall be applied by sub-
stituting ‘‘December 31, 2021’’ for ‘‘December 
31, 2019’’. 
(4) EXCEPTION FOR CERTAIN EXISTING ANNU-
ITY CONTRACTS.— 
(A) IN GENERAL.—The amendments made 
by this subsection shall not apply to a qualified 
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annuity which is a binding annuity contract in 
effect on the date of enactment of this Act and 
at all times thereafter. 
(B) QUALIFIED
ANNUITY.—For purposes 
of this paragraph, the term ‘‘qualified annuity’’ 
means, with respect to an employee, an annu-
ity— 
(i) which is a commercial annuity (as 
defined in section 3405(e)(6) of the Inter-
nal Revenue Code of 1986); 
(ii) under which the annuity payments 
are made over the life of the employee or 
over the joint lives of such employee and a 
designated beneficiary (or over a period 
not extending beyond the life expectancy of 
such employee or the joint life expectancy 
of such employee and a designated bene-
ficiary) in accordance with the regulations 
described in section 401(a)(9)(A)(ii) of 
such Code (as in effect before such amend-
ments) and which meets the other require-
ments of section 401(a)(9) of such Code 
(as so in effect) with respect to such pay-
ments; and 
(iii) with respect to which— 
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(I) annuity payments to the em-
ployee have begun before the date of 
enactment of this Act, and the em-
ployee has made an irrevocable elec-
tion 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 
enactment of this Act as to the meth-
od and amount of the annuity pay-
ments to the employee or any des-
ignated beneficiaries. 
(5) 
EXCEPTION
FOR
CERTAIN
BENE-
FICIARIES.— 
(A) IN GENERAL.—If an employee dies be-
fore the effective date, then, in applying the 
amendments made by this subsection to such 
employee’s designated beneficiary who dies after 
such date— 
(i) such amendments shall apply to 
any beneficiary of such designated bene-
ficiary; and 
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(ii) the designated beneficiary shall be 
treated as an eligible designated bene-
ficiary for purposes of applying section 
401(a)(9)(H)(ii) of the Internal Revenue 
Code of 1986 (as in effect after such 
amendments). 
(B) EFFECTIVE DATE.—For purposes of 
this paragraph, the term ‘‘effective date’’ means 
the first day of the first calendar year to which 
the amendments made by this subsection apply 
to a plan with respect to employees dying on or 
after such date. 
(b) PROVISIONS
RELATING
TO
PLAN
AMEND-
MENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any plan amendment— 
(A) such plan shall be treated as being op-
erated in accordance with the terms of the plan 
during the period described in paragraph 
(2)(B)(i); and 
(B) except as provided by the Secretary of 
the Treasury, such plan shall not fail to meet 
the requirements of section 411(d)(6) of the In-
ternal Revenue Code of 1986 and section 
204(g) of the Employee Retirement Income Se-
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curity Act of 1974 by reason of such amend-
ment. 
(2) AMENDMENTS TO WHICH SUBSECTION AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or which 
is made— 
(i) pursuant to any amendment made 
by this section or pursuant to any regula-
tion issued by the Secretary of the Treas-
ury under this section or such amend-
ments; and 
(ii) on or before the last day of the 
first plan year beginning after December 
31, 2021, or such later date as the Sec-
retary of the Treasury may prescribe. 
In the case of a governmental or collectively 
bargained plan to which subparagraph (B) or 
(C) of subsection (a)(4) applies, clause (ii) shall 
be applied by substituting the date which is 2 
years after the date otherwise applied under 
such clause. 
(B) CONDITIONS.—This subsection shall 
not apply to any amendment unless— 
(i) during the period— 
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(I) beginning on the date the leg-
islative or regulatory amendment de-
scribed in paragraph (1)(A) takes ef-
fect (or in the case of a plan amend-
ment not required by such legislative 
or regulatory amendment, the effec-
tive date specified by the plan); and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan amendment is 
adopted), 
the plan is operated as if such plan amend-
ment were in effect; and 
(ii) such plan amendment applies 
retroactively for such period. 
SEC. 402. INCREASE IN PENALTY FOR FAILURE TO FILE. 
(a) IN GENERAL.—The second sentence of subsection 
(a) of section 6651 of the Internal Revenue Code of 1986 
is amended by striking ‘‘$205’’ and inserting ‘‘$400’’. 
(b) INFLATION ADJUSTMENT.—Section 6651(j)(1) of 
such Code is amended by striking ‘‘$205’’ and inserting 
‘‘$400’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to returns the due date for which 
(including extensions) is after December 31, 2019. 
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SEC. 403. INCREASED PENALTIES FOR FAILURE TO FILE 
RETIREMENT PLAN RETURNS. 
(a) IN GENERAL.—Subsection (e) of section 6652 of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$25’’ and inserting ‘‘$105’’; 
and 
(2) by striking ‘‘$15,000’’ and inserting 
‘‘$50,000’’. 
(b) ANNUAL REGISTRATION STATEMENT AND NOTI-
FICATION OF CHANGES.—Subsection (d) of section 6652 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$1’’ both places it appears in 
paragraphs (1) and (2) and inserting ‘‘$2’’; 
(2) by striking ‘‘$5,000’’ in paragraph (1) and 
inserting ‘‘$10,000’’; and 
(3) by striking ‘‘$1,000’’ in paragraph (2) and 
inserting ‘‘$5,000’’. 
(c) FAILURE TO PROVIDE NOTICE.—Subsection (h) 
of section 6652 of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘$10’’ and inserting ‘‘$100’’; 
and 
(2) 
by 
striking 
‘‘$5,000’’ 
and 
inserting 
‘‘$50,000’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to returns, statements, and no-
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tifications required to be filed, and notices required to be 
provided, after December 31, 2019. 
SEC. 404. INCREASE INFORMATION SHARING TO ADMIN-
ISTER EXCISE TAXES. 
(a) IN GENERAL.—Section 6103(o) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(3) TAXES IMPOSED BY SECTION 4481.—Re-
turns and return information with respect to taxes 
imposed by section 4481 shall be open to inspection 
by or disclosure to officers and employees of United 
States Customs and Border Protection of the De-
partment of Homeland Security whose official duties 
require such inspection or disclosure for purposes of 
administering such section.’’. 
(b) CONFORMING AMENDMENTS.—Paragraph (4) of 
section 6103(p) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or (o)(1)(A)’’ each place it appears 
and inserting ‘‘, (o)(1)(A), or (o)(3)’’. 
Æ 
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