(1) IN GENERAL.—Section 404 of such Code
(relating to deductions for contributions of an em-
ployer to pension, etc., plans) is amended by adding
at the end the following new subsection:
‘‘(n) 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.—
(A) Section 219(b) of such Code (relating
to maximum amount of deduction) is amended
by adding at the end the following new para-
graph:
‘‘(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).’’
(B) Section 219(g)(5)(A) of such Code
(defining active participant) is amended by
striking ‘‘or’’ at the end of clause (v) and by
adding at the end the following new clause:
‘‘(vii) any SAFE annuity (within the
meaning of section 408A), or’’.
(c) CONTRIBUTIONS AND DISTRIBUTIONS.—
(1) Section 402 of such Code (relating to tax-
ability 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 408A.’’
(2) Section 408(d)(3) of such Code is amended
by adding at the end the following new subpara-
graph:
‘‘(H) SAFE ANNUITIES.—This paragraph
shall not apply to any amount paid or distrib-
uted out of a SAFE annuity (as defined in sec-
tion 408A) unless it is paid in a trustee-to-
trustee transfer into another SAFE annuity.’’
(d) INCREASED PENALTY
ON EARLY WITHDRAW-
ALS.—Section 72(t) of such Code (relating to additional
tax on early distributions) is amended by adding at the
end the following new paragraph:
‘‘(7) 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 408A), paragraph (1) shall be applied
by substituting ‘20 percent’ for ‘10 percent’.’’
(e) SIMPLIFIED EMPLOYER REPORTS.—
(1) SAFE ANNUITIES.—Section 408(l) of such
Code (relating to simplified employer reports) is
amended by adding at the end the following new
paragraph:
‘‘(3) SAFE ANNUITIES.—
‘‘(A) SIMPLIFIED REPORT.—The employer
maintaining any SAFE annuity (within the
meaning of section 408A) 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 408A to be so contributed,
‘‘(vi) the percentage elected under sec-
tion 408A(b)(5)(B), and
‘‘(vii) the number of employees with
respect to whom contributions are required
to be made for such year under section
408A(b)(5)(D).
‘‘(C) REPORTING BY ISSUER OF SAFE AN-
NUITY.—
‘‘(i) IN GENERAL.—The issuer of each
SAFE annuity shall provide to the owner
of the annuity for each year a statement
setting forth as of the close of such year—
‘‘(I) the benefits guaranteed at
age 65 under the annuity, and
‘‘(II) the cash surrender value of
the annuity.
‘‘(ii) SUMMARY
DESCRIPTION.—The
issuer of any SAFE annuity shall provide
to the employer maintaining the annuity
for each year a description containing the
following information:
‘‘(I) The name and address of
the employer and the issuer.
‘‘(II) The requirements for eligi-
bility for participation.
‘‘(III) The benefits provided with
respect to the annuity.
‘‘(IV) The procedures for, and ef-
fects of, withdrawals (including roll-
overs) from the annuity.
‘‘(D) TIME
AND
MANNER
OF
REPORT-
ING.—Any return, report, or statement required
under this paragraph shall be made in such
form and at such time as the Secretary shall
prescribe.’’