by inserting after paragraph (17) the following new para-
graph: 
‘‘(18) any deduction allowed under section 404 
by reason of section 404(a)(8)(C) (other than any 
deduction allowed for elective deferrals (as defined in 
section 402(g)(3)) shall be allowed, except that the 
amount of such deduction shall be determined with-
out regard to this paragraph.’’. 
(b) CONFORMING AMENDMENT.—Clause (v) of sec-
tion 401(c)(2)(A) of such Code is amended by inserting 
‘‘for elective deferrals (as defined in section 402(g)(3))’’ 
after ‘‘to the taxpayer’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 4. ADJUSTED FUNDING TARGET ATTAINMENT PER-
CENTAGE DETERMINED WITHOUT REGARD 
TO REDUCTION FOR CREDIT BALANCES FOR 
FUNDING-BASED LIMITS UNDER SINGLE EM-
PLOYER PLANS. 
(a) AMENDMENT OF 1986 CODE.—Paragraph (2) of 
section 436(j) of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking the period at the end and insert-
ing ‘‘, and’’, 
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(2) by striking ‘‘under paragraph (1) by in-
creasing’’ and inserting the following: ‘‘under para-
graph (1)— 
‘‘(A) by increasing’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) without regard to the reduction under 
section 430(f)(4)(B).’’. 
(b) AMENDMENT OF ERISA.—Section 206(g)(9)(B) 
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1056(g)(9)(B)) is amended— 
(1) by striking the period at the end and insert-
ing ‘‘, and’’, 
(2) by striking ‘‘under subparagraph (A) by in-
creasing’’ and inserting the following: ‘‘under sub-
paragraph (A)— 
‘‘(i) by increasing’’, and 
(3) by adding at the end the following new 
clause: 
‘‘(ii) without regard to the reduction 
under section 303(f)(4)(B).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2011. 
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SEC. 5. REPEAL OF TAX ON NONDEDUCTIBLE CONTRIBU-
TIONS TO QUALIFIED EMPLOYER PLANS. 
Effective for taxable years beginning after December 
31, 2011, section 4972 is repealed. 
SEC. 6. INTERIM AMENDMENTS TO QUALIFIED PLANS. 
The Secretary of the Treasury shall, not later than 
2 years after the date of the enactment of this Act, revise 
the administrative rules governing interim amendments of 
qualified plans to provide greater flexibility and reduce 
plan sponsor burden, while taking into account the need 
for plan terms to reflect the benefits to which participants 
are entitled. 
SEC. 7. GRANDFATHERING OF PLANS WITH NORMAL RE-
TIREMENT AGE BASED ON EARLIER OF AT-
TAINMENT OF SPECIFIC AGE OR COMPLE-
TION OF 30 OR MORE YEARS OF BENEFIT AC-
CRUAL SERVICE. 
(a) AMENDMENT OF 1986 CODE.— 
(1) IN GENERAL.—Section 411 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(f) SPECIAL RULE FOR DETERMINING NORMAL RE-
TIREMENT AGE FOR CERTAIN EXISTING DEFINED BEN-
EFIT PLANS.— 
‘‘(1) IN GENERAL.—An applicable trust shall 
not fail to be treated as a qualified trust under sec-
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tion 401(a) of the Internal Revenue Code of 1986, 
and shall not be treated as failing to have a uniform 
normal retirement age for purposes of this sub-
chapter, solely because the plan of which it is a part 
has a normal retirement age described in paragraph 
(2)(A). 
‘‘(2) APPLICABLE TRUST.—For purposes of this 
subsection— 
‘‘(A) IN GENERAL.—The term ‘applicable 
trust’ means a trust forming a part of a plan 
that on December 5, 2011, has a normal retire-
ment age which is the earlier of— 
‘‘(i) the attainment of an age which is 
not earlier than age 60 but not later than 
65, or 
‘‘(ii) the completion of 30 or more 
years of benefit accrual service. 
‘‘(B) LIMITED APPLICATION OF SPECIFIED 
NORMAL
RETIREMENT
AGE
PERMITTED.—A 
trust shall not fail to be treated as an applica-
ble trust solely because, as of such date, a nor-
mal retirement age described in subparagraph 
(A) only applies to certain participants or cer-
tain employers participating in the plan of 
which such trust is a part. 
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