quirements of subsection (d). The Secretary, in the Sec-
retary’s discretion, may prescribe that the confirmation 
shall be obtained on an annual or less frequent basis, and 
may use for this purpose the annual report or quarterly 
report for employment taxes, or such other means as the 
Secretary may deem advisable. 
‘‘(d) REQUIREMENT TO PROVIDE EMPLOYEE ACCESS 
TO AUTOMATIC IRA ARRANGEMENTS.—The requirements 
of this subsection are met if the employer meets the re-
quirements of section 408B.’’. 
(g) WAIVER OF EARLY WITHDRAWAL PENALTY FOR 
CERTAIN DISTRIBUTIONS FOLLOWING INITIAL ELECTION 
TO PARTICIPATE IN AUTOMATIC IRA ARRANGEMENT.— 
Subsection (t) of section 72 of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(11) 
DISTRIBUTION
FOLLOWING
INITIAL 
ELECTION TO PARTICIPATE IN AUTOMATIC IRA AR-
RANGEMENT.—Paragraph (1) shall not apply in the 
case of a distribution to a qualifying employee made 
not later than 90 days after the initial election 
under section 408B(d)(1)(B)(ii).’’. 
(h) BANKRUPTCY.—Section 522 of title 11, United 
States Code, is amended— 
(1) in subsection (d)(12) by inserting ‘‘408B,’’ 
after ‘‘408A,’’, and 
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(2) in subsection (n) by inserting ‘‘, or in an 
automatic IRA arrangement described in section 
408B,’’. 
(i) AUTOMATIC IRA ADVISORY GROUP.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of 
the Treasury and the Secretary of Labor shall joint-
ly establish an Automatic IRA Advisory Group (in 
this subsection referred to as the ‘‘Advisory 
Group’’). The purpose of the Advisory Group shall 
be to make recommendations regarding the auto-
matic IRA investment options described in section 
408B(d)(5) of the Internal Revenue Code of 1986 
and the website described in section 408B(h)(3) of 
such Code, including, with respect to automatic IRA 
arrangements, the disclosure of information regard-
ing fees and expenses, the use of low-cost investment 
options, the appropriate use of electronic methods to 
provide notice and disclosure, and such other related 
matters as may be determined by the Secretaries. 
(2) MEMBERSHIP.—The Advisory Group shall 
consist of not more than 15 members and shall be 
composed of— 
(A) such persons as the Secretaries of the 
Treasury and Labor may consider appropriate 
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to provide expertise regarding investments for 
retirement, including providers of individual re-
tirement accounts and individual retirement an-
nuities described in section 408 or 408A of 
such Code, and 
(B) one or more representatives of the De-
partment of Labor and of the Department of 
the Treasury. 
(3) COMPENSATION.—The members of the Ad-
visory Group shall serve without compensation. 
(4) ADMINISTRATIVE
SUPPORT.—The Depart-
ment of the Treasury and the Department of Labor 
shall jointly provide appropriate administrative sup-
port to the Advisory Group, including technical as-
sistance. The Advisory Group may use the services 
and facilities of such Departments, with or without 
reimbursement, as jointly determined by such De-
partments. 
(5) REPORT BY ADVISORY GROUP.—Not later 
than 12 months after the date of the enactment of 
this Act, the Advisory Group shall submit to the 
Secretary of Labor and the Secretary of the Treas-
ury a report containing its recommendations. The 
Secretaries may request that the Advisory Group 
submit subsequent reports. 
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(j) CONFORMING AMENDMENTS.— 
(1) The table of sections for subpart A of part 
I of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 408A the following new 
item: 
‘‘Sec. 408B. Right to automatic IRA arrangements at work.’’. 
(2) The table of sections for chapter 43 of such 
Code is amended by adding at the end the following 
new item: 
‘‘Sec. 4980J. Requirements for employers to provide employees access to auto-
matic IRA arrangements.’’. 
(k) PREEMPTION OF CONFLICTING STATE LAWS.— 
The amendments made by this section shall supersede any 
law of a State that would directly or indirectly prohibit 
or restrict the establishment or operation of an automatic 
IRA arrangement meeting the requirements of section 
408B of the Internal Revenue Code of 1986. Nothing in 
such amendments shall be construed to impair or super-
sede any State law to the extent it provides a remedy for 
the failure to make payroll deposit payments under any 
such automatic IRA arrangement within the period re-
quired under such section 408B. 
(l) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
December 31, 2011. 
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SEC. 3. CREDIT FOR SMALL EMPLOYERS MAINTAINING 
AUTOMATIC IRA ARRANGEMENTS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45S. SMALL EMPLOYER AUTOMATIC IRA ARRANGE-
MENT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible employer maintaining an auto-
matic IRA arrangement meeting the requirements of sec-
tion 408B (without regard to whether the employer is re-
quired to maintain the arrangement), the small employer 
automatic IRA arrangement credit determined under this 
section for any taxable year is the amount determined 
under subsection (b). 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this section for any taxable year 
with respect to an eligible employer shall be equal to 
the lesser of— 
‘‘(A) $25 multiplied by the number of 
qualifying employees (within the meaning of 
section 408B(c)) for whom contributions are 
made under the automatic IRA arrangement re-
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ferred to in subsection (a) for the calendar year 
in which the taxable year begins, or 
‘‘(B) $250. 
‘‘(2) DURATION OF CREDIT.—No credit shall be 
determined under this section for any taxable year 
other than a taxable year which begins in the first 
2 calendar years in which the eligible employer 
maintains an automatic IRA arrangement meeting 
the requirements of section 408B. 
‘‘(3) COORDINATION
WITH
SMALL
EMPLOYER 
STARTUP CREDIT.—No credit shall be allowed under 
this section to the employer for any taxable year if 
a credit is determined under section 45E with re-
spect to the employer for the taxable year. 
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 
section, the term ‘eligible employer’ means, with respect 
to any calendar year in which the taxable year begins, an 
employer which— 
‘‘(1) maintains an automatic IRA arrangement 
meeting the requirements of section 408B, 
‘‘(2) on each day during the preceding calendar 
year, had no more than 100 employees, and 
‘‘(3) did not maintain a qualifying plan or ar-
rangement (described in section 408B(b)) during the 
portion of the calendar year preceding the adoption 
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SEC. 4. PROMOTING QUALIFIED PLANS. 
(a) INCREASE IN CREDIT FOR SMALL EMPLOYER 
PENSION PLAN STARTUP COSTS.— 
(1) IN GENERAL.—Section 45E(b)(1) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘$500’’ and inserting ‘‘$1,000’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2011. 
(b) ELIMINATING BARRIERS TO USE OF MULTIPLE 
EMPLOYER PLANS.—The Secretaries of the Treasury and 
Labor shall— 
(1) prescribe administrative guidance estab-
lishing conditions under which an employer partici-
pating in a plan described in section 413(c) of the 
Internal Revenue Code of 1986 shall not have any 
liability under title I of the Employee Retirement In-
come Security Act of 1974 with respect to the acts 
or omissions of one or more other participating em-
ployers, which regulations may require that the por-
tion of the plan attributable to such participating 
employers be spun off to plans maintained by such 
employers, 
(2) prescribe administrative guidance estab-
lishing conditions under which a plan described in 
section 413(c) of such Code may be treated as satis-
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fying the qualification requirements of sections 
401(a) and 413(c) of such Code despite the violation 
of such requirements by one or more participating 
employers, including requiring, if appropriate, that 
the portion of the plan attributable to such partici-
pating employers be spun off to plans maintained by 
such employers, and 
(3) prescribe administrative guidance providing 
simplified means, including model plan language, by 
which plans described in section 413(c) of such Code 
may satisfy the requirements of sections 102, 103, 
and 105 of the Employee Retirement Income Secu-
rity Act of 1974. 
SEC. 5. STUDIES. 
(a) IN GENERAL.—The Secretary of the Treasury 
and the Secretary of Labor shall jointly conduct a separate 
study of the feasibility and desirability of each of the fol-
lowing: 
(1) Extending to automatic IRA arrangements 
spousal consent requirements similar to, or based 
on, those that apply under the Federal Employees’ 
Thrift Savings Plan, including consideration of 
whether modifications of such requirements are nec-
essary to apply them to automatic IRA arrange-
ments. 
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(2) Promoting the use of low-cost annuities, 
longevity insurance, or other guaranteed lifetime in-
come arrangements in automatic IRA arrangements, 
including consideration of— 
(A) appropriate means of arranging for, or 
encouraging, individuals to receive at least a 
portion of their distributions in some form of 
low-cost guaranteed lifetime income, and 
(B) issues presented by possible additional 
differences in, or uniformity of, provisions gov-
erning different individual retirement arrange-
ments. 
(3) 
Establishing 
procedures 
under 
which 
amounts saved by employees in retirement bonds 
would be automatically transferred into alternative 
diversified investments provided by the private sector 
when employees’ automatic IRA balances reach a 
certain dollar level. 
(b) STUDY OF CONSOLIDATION OF INDIVIDUAL RE-
TIREMENT PLANS.—The Secretary of the Treasury and 
the Secretary of Labor shall jointly conduct a separate 
study of the feasibility and desirability of— 
(1) using data submitted on investments in in-
dividual retirement accounts and annuities to enable 
individuals with multiple such accounts and annu-
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ities that include very small amounts to receive peri-
odic notices informing them about the location of 
these accounts and how such accounts and annuities 
might be consolidated, and 
(2) using investment arrangements associated 
with automatic IRAs to assist in addressing the 
problem of abandoned accounts. 
(c) REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the Secretaries shall 
report the results of each study conducted under this sec-
tion, together with any recommendations for legislative 
changes, to the Committees on Finance and Health, Edu-
cation, Labor, and Pensions of the Senate and the Com-
mittees on Ways and Means and Education and Labor of 
the House of Representatives. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning on or 
after the date of the enactment of this Act. 
Æ 
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