‘‘(9) DEFINITIONS
AND
SPECIAL
RULE.—The
definitions and special rule applicable under sub-
section (b)(7) shall apply for purposes of this sub-
section.
‘‘(d) SPECIAL RULES FOR SAFE ANNUITIES AND
TRUSTS.—
‘‘(1) CERTAIN
REQUIREMENTS
TREATED
AS
MET.—For purposes of section 401(a), a SAFE an-
nuity and a SAFE trust shall be treated as meeting
the requirements of the following provisions:
‘‘(A) Section 401(a)(4) (relating to non-
discrimination rules).
‘‘(B) Section 401(a)(26) (relating to min-
imum participation).
‘‘(C) Section 410 (relating to minimum
participation and coverage requirements).
‘‘(D) Section 411(b) (relating to accrued
benefit requirements).
‘‘(E) Paragraphs (6) and (7) of section
412(c) (relating to full funding limitation).
‘‘(F) Section 415 (relating to limitations
on benefits and contributions under qualified
plans).
‘‘(G) Section 416 (relating to special rules
for top-heavy plans).
‘‘(2) CONTRIBUTIONS
NOT
TAKEN
INTO
AC-
COUNT IN APPLYING LIMITS TO OTHER PLANS.—
Contributions to a SAFE annuity or a SAFE trust
shall not be taken into account in applying sections
404 and 415 to other plans maintained by the em-
ployer.
‘‘(3) COORDINATION
WITH
MAXIMUM
LIMITA-
TION UNDER SUBSECTION (a).—In the case of any
SAFE annuity or SAFE trust, subsections (a)(1)
and (b) of section 408 shall be applied by sub-
stituting ‘the dollar amount in effect under section
408B(b)(5)(C)’ for ‘$2,000’ each place it appears in
such subsections.
‘‘(e) ROLLOVER CONTRIBUTION.—For purposes of
this section, the term ‘rollover contribution’ means any
rollover contribution under section 402(c), 403(a)(4),
403(b)(8), 408(d)(3), or 457(e)(16).’’
(b) DEDUCTION LIMITS NOT TO APPLY TO EM-
PLOYER CONTRIBUTIONS.—
(1) IN GENERAL.—Section 404 (relating to de-
ductions for contributions of an employer to pension,
etc., plans), as amended by section 204(c), is amend-
ed by adding at the end the following new sub-
section:
‘‘(o) SPECIAL RULES FOR SAFE ANNUITIES AND
TRUSTS.—
‘‘(1) IN GENERAL.—Employer contributions to
a SAFE annuity or SAFE trust shall be treated as
if they are made to a plan subject to the require-
ments of this section.
‘‘(2) TIMING.—
‘‘(A) 
DEDUCTION.—Contributions 
de-
scribed in paragraph (1) shall be deductible in
the taxable year of the employer with or within
which the calendar year for which the contribu-
tions were made ends.
‘‘(B) CONTRIBUTIONS
AFTER
END
OF
YEAR.—For purposes of this subsection, con-
tributions shall be treated as made for a taxable
year if they are made on account of the taxable
year and are made not later than the time pre-
scribed by law for filing the return for the tax-
able year (including extensions thereof).’’
(2) COORDINATION
WITH
DEDUCTION
UNDER
SECTION 219.—Section 219(b) (relating to maximum
amount of deduction) is amended by adding at the
end the following new paragraph:
‘‘(5) SPECIAL RULE FOR SAFE ANNUITIES.—
This section shall not apply with respect to any
amount contributed to a SAFE annuity established
under section 408A(B).’’
(c) CONTRIBUTIONS AND DISTRIBUTIONS.—Section
402 (relating to taxability of beneficiary of employees’
trust) is amended by adding at the end the following new
subsection:
‘‘(l) TREATMENT OF SAFE ANNUITIES.—Rules simi-
lar to the rules of paragraphs (1) and (3) of subsection
(h) shall apply to contributions and distributions with re-
spect to a SAFE annuities under section 408B.’’
(d) 
INCREASED
PENALTY
ON
EARLY
WITH-
DRAWALS.—Section 72(t) (relating to additional tax on
early distributions) is amended by adding at the end the
following new paragraph:
‘‘(9) SPECIAL RULES FOR SAFE ANNUITIES AND
TRUSTS.—In the case of any amount received from
a SAFE annuity or a SAFE trust (within the mean-
ing of section 408B), paragraph (1) shall be applied
by substituting ‘20 percent’ for ‘10 percent’.’’
(e) SIMPLIFIED EMPLOYER REPORTS.—
(1) SAFE ANNUITIES.—Section 408(l) (relating
to simplified employer reports) is amended by add-
ing at the end the following new paragraph:
‘‘(3) SAFE ANNUITIES.—
‘‘(A) SIMPLIFIED REPORT.—The employer
maintaining any SAFE annuity (within the
meaning of section 408B) shall file a simplified
annual return with the Secretary containing
only the information described in subparagraph
(B).
‘‘(B) CONTENTS.—The return required by
subparagraph (A) shall set forth—
‘‘(i) the name and address of the em-
ployer,
‘‘(ii) the date the plan was adopted,
‘‘(iii) the number of employees of the
employer,
‘‘(iv) the number of such employees
who are eligible to participate in the plan,
‘‘(v) the total amount contributed by
the employer to each such annuity for such
year and the minimum amount required
under section 408B to be so contributed,
‘‘(vi) the percentage elected under sec-
tion 408B(b)(5)(B), and
‘‘(vii) the number of employees with
respect to whom contributions are required
to be made for such year under section
408B(b)(5)(D).