H. R. 5365
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To treat certain arrangements maintained by the YMCA Retirement Fund as church
plans for the purposes of certain provisions of the Internal Revenue Code of
1986, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. CERTAIN ARRANGEMENTS MAINTAINED BY THE YMCA
RETIREMENT FUND TREATED AS CHURCH PLANS.
(a) RETIREMENT PLANS.—
(1) IN GENERAL.—For purposes of sections 401(a) and 403(b)
of the Internal Revenue Code of 1986, any retirement plan
maintained by the YMCA Retirement Fund as of January 1,
2003, shall be treated as a church plan (within the meaning
of section 414(e) of such Code) which is maintained by an
organization described in section 414(e)(3)(A) of such Code.
(2) TAX-DEFERRED
RETIREMENT
PLAN.—In the case of a
retirement plan described in paragraph (1) which allows con-
tributions to be made under a salary reduction agreement—
(A) such treatment shall not apply for purposes of
section 415(c)(7) of such Code, and
(B) any account maintained for a participant or bene-
ficiary of such plan shall be treated for purposes of such
Code as a retirement income account described in section
403(b)(9) of such Code, except that such account shall not,
for purposes of section 403(b)(12) of such Code, be treated
as a contract purchased by a church for purposes of section
403(b)(1)(D) of such Code.
(3) MONEY
PURCHASE
PENSION
PLAN.—In the case of a
retirement plan described in paragraph (1) which is subject
to the requirements of section 401(a) of such Code—
(A) such plan (but not any reserves held by the YMCA
Retirement Fund)—
(i) shall be treated for purposes of such Code as
a defined contribution plan which is a money purchase
pension plan, and
(ii) shall be treated as having made an election
under section 410(d) of such Code for plan years begin-
ning after December 31, 2005, except that notwith-
standing the election—
(I) nothing in the Employee Retirement
Income Security Act of 1974 or such Code shall
prohibit 
the 
YMCA 
Retirement 
Fund 
from
commingling for investment purposes the assets
of the electing plan with the assets of such Fund
H. R. 5365—2
and with the assets of any employee benefit plan
maintained by such Fund, and
(II) nothing in this section shall be construed
as subjecting any assets described in subclause
(I), other than the assets of the electing plan,
to any provision of such Act,
(B) notwithstanding section 401(a)(11) or 417 of such
Code or section 205 of such Act, such plan may offer a
lump-sum distribution option to participants who have not
attained age 55 without offering such participants an
annuity option, and
(C) any account maintained for a participant or bene-
ficiary of such plan shall, for purposes of section 401(a)(9)
of such Code, be treated as a retirement income account
described in section 403(b)(9) of such Code.
(4) SELF-FUNDED DEATH BENEFIT PLAN.—For purposes of
section 7702(j) of such Code, a retirement plan described in
paragraph (1) shall be treated as an arrangement described
in section 7702(j)(2).
(b) YMCA RETIREMENT FUND.—For purposes of this section,
the term ‘‘YMCA Retirement Fund’’ means the Young Men’s Chris-
tian Association Retirement Fund, a corporation created by an
Act of the State of New York which became law on April 30,
1921.
(c) EFFECTIVE DATE.—This section shall apply to plan years
beginning after December 31, 2003.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.