122 
a plan that discloses required documents or state-
ments electronically, in accordance with applicable 
guidance governing electronic disclosure by the De-
partment of Labor (with the exception of section 
2520.104b–1(c) of title 29, Code of Federal Regula-
tions), the Secretary of Labor shall, not later than 
December 31, 2024, update such guidance to the ex-
tent necessary to ensure that— 
(A) a participant or beneficiary under such 
a plan is permitted the opportunity to request 
that any disclosure required to be delivered on 
paper under applicable guidance by the Depart-
ment of Labor shall be furnished by electronic 
delivery; 
(B) each paper statement furnished under 
such a plan pursuant to the amendment shall 
include— 
(i) an explanation of how to request 
that all such statements, and any other 
document required to be disclosed under 
title I of the Employee Retirement Income 
Security Act of 1974, be furnished by elec-
tronic delivery; and 
(ii) contact information for the plan 
sponsor, including a telephone number; 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00122
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
123 
(C) the plan may not charge any fee to a 
participant or beneficiary for the delivery of any 
paper statements; 
(D) each paper pension benefit statement 
shall identify each plan document required to be 
disclosed and shall include information about 
how a participant or beneficiary may access 
each such document; 
(E) each document required to be disclosed 
that is furnished by electronic delivery under 
such a plan shall include an explanation of how 
to request that all such documents be furnished 
on paper in written form; and 
(F) a plan is permitted to furnish a dupli-
cate electronic statement in any case in which 
the plan furnishes a paper pension benefit 
statement. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to plan years begin-
ning after December 31, 2025. 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00123
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
124 
SEC. 436. SEPARATE APPLICATION OF TOP HEAVY RULES 
TO DEFINED CONTRIBUTION PLANS COV-
ERING EXCLUDIBLE EMPLOYEES. 
(a) IN GENERAL.—Section 416(c)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(C) SEPARATE APPLICATION TO EMPLOY-
EES NOT MEETING AGE AND SERVICE REQUIRE-
MENTS.—If employees not meeting the age or 
service requirements of section 410(a)(1) (with-
out regard to subparagraph (B) thereof) are 
covered under a plan of the employer which 
meets the requirements of subparagraphs (A) 
and (B) separately with respect to such employ-
ees, such employees may be excluded from con-
sideration in determining whether any plan of 
the employer meets the requirements of sub-
paragraphs (A) and (B).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to plan years beginning after 
the date of the enactment of this Act. 
SEC. 437. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION LIMITED TO 3 YEARS. 
(a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘may make’’ and inserting ‘‘may, at any time during the 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00124
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
125 
3-year period beginning on the day after the date on which 
such distribution was received, make’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the enact-
ment of section 113 of the Setting Every Community Up 
for Retirement Enhancement Act of 2019. 
SEC. 438. EMPLOYER MAY RELY ON EMPLOYEE CERTI-
FYING THAT DEEMED HARDSHIP DISTRIBU-
TION CONDITIONS ARE MET. 
(a) CASH OR DEFERRED ARRANGEMENTS.—Section 
401(k)(14) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) EMPLOYEE CERTIFICATION.—In de-
termining whether a distribution is upon the 
hardship of an employee, the administrator of 
the plan may rely on a certification by the em-
ployee that the distribution is on account of a 
financial need of a type that is deemed in regu-
lations prescribed by the Secretary to be an im-
mediate and heavy financial need and that such 
distribution is not in excess of the amount re-
quired to satisfy such financial need.’’. 
(b) 403(b) PLANS.— 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00125
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
126 
(1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) 
of such Code is amended by adding at the end the 
following new subparagraph: 
‘‘(D) EMPLOYEE CERTIFICATION.—In de-
termining whether a distribution is upon the fi-
nancial hardship of an employee, the adminis-
trator of the plan may rely on a certification by 
the employee that the distribution is on account 
of a financial need of a type that is deemed in 
regulations prescribed by the Secretary to be an 
immediate and heavy financial need and that 
such distribution is not in excess of the amount 
required to satisfy such financial need.’’. 
(2) ANNUITY CONTRACTS.—Section 403(b)(11) 
of such Code is amended by adding at the end the 
following: ‘‘In determining whether a distribution is 
upon hardship of an employee, the administrator of 
the plan may rely on a certification by the employee 
that the distribution is on account of a financial 
need of a type that is deemed in regulations pre-
scribed by the Secretary to be an immediate and 
heavy financial need and that such distribution is 
not in excess of the amount required to satisfy such 
financial need.’’. 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00126
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
127 
(c) 457(B) PLAN.—Section 457(d) of such Code is 
amended by adding at the end the following new para-
graph: 
‘‘(4) PARTICIPANT CERTIFICATION.—In deter-
mining whether a distribution to a participant is 
made when the participant is faced with an unfore-
seeable emergency, the administrator of a plan 
maintained by an eligible employer described in sub-
section (e)(1)(A) may rely on a certification by the 
participant that the distribution is made when the 
participant is faced with unforeseeable emergency of 
a type that is described in regulations prescribed by 
the Secretary as an unforeseeable emergency and 
that the distribution is not in excess of the amount 
reasonably necessary to satisfy the emergency 
need.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2024. 
SEC. 439. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
DOMESTIC ABUSE. 
(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: 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00127
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
128 
‘‘(I) DISTRIBUTIONS
FROM
RETIREMENT 
PLANS IN CASE OF DOMESTIC ABUSE.— 
‘‘(i) IN GENERAL.—Any eligible dis-
tribution to a domestic abuse victim. 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as an eligi-
ble distribution to a domestic abuse victim 
by any individual shall not exceed an 
amount equal to the lesser of— 
‘‘(I) $10,000, or 
‘‘(II) 50 percent of the present 
value of the nonforfeitable accrued 
benefit of the employee under the 
plan. 
‘‘(iii) ELIGIBLE DISTRIBUTION TO A 
DOMESTIC
ABUSE
VICTIM.—For purposes 
of this subparagraph— 
‘‘(I) IN
GENERAL.—A distribu-
tion shall be treated as an eligible dis-
tribution to a domestic abuse victim if 
such distribution is from an applicable 
eligible retirement plan to an indi-
vidual and made during the 1-year pe-
riod beginning on any date on which 
the individual is a victim of domestic 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00128
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
129 
abuse by a spouse or domestic part-
ner. 
‘‘(II) DOMESTIC
ABUSE.—The 
term ‘domestic abuse’ means physical, 
psychological, sexual, emotional, or 
economic abuse, including efforts to 
control, isolate, humiliate, or intimi-
date the victim, or to undermine the 
victim’s ability to reason independ-
ently, including by means of abuse of 
the victim’s child or another family 
member living in the household. 
‘‘(iv) TREATMENT OF PLAN DISTRIBU-
TIONS.— 
‘‘(I) IN GENERAL.—If a distribu-
tion to an individual would (without 
regard to clause (ii)) be an eligible 
distribution to a domestic abuse vic-
tim, a plan shall not be treated as 
failing to meet any requirement of 
this title merely because the plan 
treats the distribution as an eligible 
distribution to a domestic abuse vic-
tim, unless the aggregate amount of 
such distributions from all plans 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00129
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
130 
maintained by the employer (and any 
member of any controlled group which 
includes the employer) to such indi-
vidual exceeds the limitation under 
clause (ii). 
‘‘(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 distribution de-
scribed in clause (i) may, at any time 
during the 3-year period beginning on 
the day after the date on which such 
distribution was received, make one or 
more contributions in an aggregate 
amount not to exceed the amount of 
such distribution to an applicable eli-
gible retirement plan of which such 
individual is a beneficiary and to 
which a rollover contribution of such 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00130
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
131 
distribution could be made under sec-
tion 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 eligi-
ble distributions to a domestic abuse 
victim 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 
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-
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00131
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
132 
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAS.—If a con-
tribution is made under subclause (I) 
with respect to an eligible distribution 
to a domestic abuse victim from an 
applicable eligible retirement plan 
other than an individual retirement 
plan, then the taxpayer shall, to the 
extent of the amount of the contribu-
tion, be treated as having received 
such distribution in an eligible rollover 
distribution (as defined in section 
402(c)(4)) and as having transferred 
the amount to the applicable eligible 
retirement plan in a direct trustee to 
trustee transfer within 60 days of the 
distribution. 
‘‘(IV) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—If a contribution is made 
under subclause (I) with respect to an 
eligible distribution to a domestic 
abuse victim from an individual retire-
ment plan, then, to the extent of the 
amount of the contribution, such dis-
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00132
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS
133 
tribution shall be treated as a dis-
tribution 
described 
in 
section 
408(d)(3) and as having been trans-
ferred to the applicable eligible retire-
ment plan in a direct trustee to trust-
ee transfer within 60 days of the dis-
tribution. 
‘‘(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, an eli-
gible distribution to a domestic abuse 
victim shall not be treated as an eligi-
ble rollover distribution. 
VerDate Sep 11 2014 
01:40 Feb 03, 2026
Jkt 069200
PO 00000
Frm 00133
Fmt 6652
Sfmt 6201
E:\BILLS\H7315.IH
H7315
ssavage on LAPJG3WLY3PROD with BILLS