I 
117TH CONGRESS 
1ST SESSION H. R. 2927 
To amend the Internal Revenue Code of 1986 and the Employee Retirement 
Income Security Act of 1974 to improve rules relating to retirement plans. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 30, 2021 
Mr. KIND (for himself, Mr. KELLY of Pennsylvania, and Mr. SMITH of Mis-
souri) introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Education and 
Labor, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 and the Em-
ployee Retirement Income Security Act of 1974 to im-
prove rules relating to retirement plans. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Savings for All Voca-
tions Enhancement Act of 2021’’ or the ‘‘SAVE Act of 
2021’’. 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
quirements of this subparagraph unless the 
plan meets the requirements of subpara-
graph (A) or (B) of section 413(e)(1), ex-
cept in the case of a multiple employer 
plan maintained solely by any of the fol-
lowing: A State, a political subdivision of a 
State, or an agency or instrumentality of 
any one or more of the foregoing.’’. 
(b) ANNUAL REGISTRATION FOR 403(b) MULTIPLE 
EMPLOYER PLAN.—Section 6057 of such Code is amend-
ed by redesignating subsection (g) as subsection (h) and 
by inserting after subsection (f) the following new sub-
section: 
‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS TREATED 
AS ONE PLAN.—In the case of annuity contracts to which 
this section applies and to which section 403(b) applies 
by reason of the plan under which such contracts are pur-
chased meeting the requirements of paragraph (15) there-
of, such plan shall be treated as a single plan for purposes 
of this section.’’. 
(c) ANNUAL INFORMATION RETURNS
FOR 403(b) 
MULTIPLE EMPLOYER PLAN.—Section 6058 of the Inter-
nal Revenue Code of 1986 is amended by redesignating 
subsection (f) as subsection (g) and by inserting after sub-
section (e) the following new subsection: 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS TREATED 
AS ONE PLAN.—In the case of annuity contracts to which 
this section applies and to which section 403(b) applies 
by reason of the plan under which such contracts are pur-
chased meeting the requirements of paragraph (15) there-
of, such plan shall be treated as a single plan for purposes 
of this section.’’. 
(d) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) TREATED AS POOLED EMPLOYER PLAN.— 
(A) IN GENERAL.—Section 3(43)(A) of the 
Employee Retirement Income Security Act of 
1974 is amended— 
(i) in clause (ii), by striking ‘‘section 
501(a) of such Code or’’ and inserting 
‘‘501(a) of such Code, a plan that consists 
of contracts described in section 403(b) of 
such Code, or’’; and 
(ii) in the flush text at the end, by 
striking ‘‘the plan.’’ and inserting ‘‘the 
plan, but such term shall include any pro-
gram (other than a governmental plan) 
maintained for the benefit of the employees 
of more than 1 employer that consists of 
contracts described in section 403(b) of 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
such Code and that meets the require-
ments of subparagraph (A) or (B) of sec-
tion 413(e)(1) of such Code.’’. 
(B) 
CONFORMING
AMENDMENTS.—Sec-
tions 3(43)(B)(v)(II) and 3(44)(A)(i)(I) of such 
Act are each amended by striking ‘‘section 
401(a) of such Code or’’ and inserting ‘‘401(a) 
of such Code, a plan that consists of contracts 
described in section 403(b) of such Code, or’’. 
(2) FIDUCIARIES.—Section 3(43)(B)(ii) of such 
Act is amended— 
(A) by striking ‘‘trustees meeting the re-
quirements of section 408(a)(2) of the Internal 
Revenue Code of 1986’’ and inserting ‘‘trustees 
(or other fiduciaries in the case of a plan that 
consists of contracts described in section 403(b) 
of the Internal Revenue Code of 1986) meeting 
the requirements of section 408(a)(2) of such 
Code’’, and 
(B) by striking ‘‘holding’’ and inserting 
‘‘holding (or causing to be held under the terms 
of a plan consisting of such contracts)’’. 
(e) REGULATIONS
RELATING
TO
PLAN
TERMI-
NATION.—The Secretary of the Treasury (or the Sec-
retary’s designee) shall prescribe such regulations as may 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
be necessary to clarify the treatment of a plan termination 
by an employer in the case of plans to which section 
403(b)(15) of such Code applies. 
(f) MODIFICATION
OF MODEL PLAN LANGUAGE, 
ETC.— 
(1) PLAN
NOTIFICATIONS.—The Secretary of 
the Treasury (or the Secretary’s designee) shall 
modify the model plan language published under sec-
tion 413(e)(5) of the Internal Revenue Code of 1986 
to include language which notifies participating em-
ployers which are exempt from tax under section 
501(a) of such Code that the plan is subject to the 
Employee Retirement Income Security Act of 1974 
and that such employer is a plan sponsor with re-
spect to its employees participating in the multiple 
employer plan and, as such, has certain fiduciary 
duties with respect to the plan and to its employees. 
(2) MODEL PLANS FOR MULTIPLE EMPLOYER 
403(b) NON-GOVERNMENTAL PLANS.—For plans to 
which section 403(b)(15)(A) of the Internal Revenue 
Code of 1986 applies (other than a plan maintained 
for its employees by a State, a political subdivision 
of a State, or an agency or instrumentality of any 
one or more of the foregoing) the Secretary shall 
publish model plan language similar to model plan 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
language published under section 413(e)(5) of such 
Code. 
(3) EDUCATIONAL OUTREACH TO EMPLOYERS 
EXEMPT FROM TAX.—The Secretary shall provide 
education and outreach to increase awareness to em-
ployers which are exempt from tax under section 
501(a) of such Code that multiple employer plans 
are subject to the Employee Retirement Income Se-
curity Act of 1974 and that such employer is a plan 
sponsor with respect to its employees participating 
in the multiple employer plan and, as such, has cer-
tain fiduciary duties with respect to the plan and to 
its employees. 
(g) NO INFERENCE WITH RESPECT
TO CHURCH 
PLANS.—Regarding any application of section 403(b) of 
the Internal Revenue Code of 1986 to an annuity contract 
purchased under a church plan (as defined in section 
414(e) of such Code) maintained by more than 1 em-
ployer, or to any application of rules similar to section 
413(e) of such Code to such a plan, no inference shall 
be made from section 403(b)(15)(A) of such Code (as 
added by this Act) not applying to such plans. 
(h) EFFECTIVE DATE.— 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
(1) IN GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2021. 
(2) RULE OF CONSTRUCTION.—Nothing in the 
amendments made by subsection (a) shall be con-
strued as limiting the authority of the Secretary of 
the Treasury or the Secretary’s delegate (determined 
without regard to such amendment) to provide for 
the proper treatment of a failure to meet any re-
quirement applicable under such Code with respect 
to one employer (and its employees) in the case of 
a plan to which section 403(b)(15) applies. 
SEC. 3. APPLICATION OF CREDIT FOR SMALL EMPLOYER 
PENSION PLAN STARTUP COSTS TO EMPLOY-
ERS WHICH JOIN AN EXISTING PLAN. 
(a) IN GENERAL.—Section 45E(d)(3)(A) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘ef-
fective’’ and inserting ‘‘effective with respect to the eligible 
employer’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to eligible employer plans which 
become effective with respect to the eligible employer after 
the date of the enactment of this Act. 
SEC. 4. FINDINGS RELATING TO S CORPORATION ESOPs. 
Congress finds the following: 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
(1) On January 1, 1998, nearly 25 years after 
the Employee Retirement Income Security Act of 
1974 was enacted and the employee stock ownership 
plan (hereafter in this section referred to as an 
‘‘ESOP’’) was created, employees were first per-
mitted to be owners of subchapter S corporations 
pursuant to the Small Business Job Protection Act 
of 1996 (Public Law 104–188). 
(2) With the passage of the Taxpayer Relief 
Act of 1997 (Public Law 105–34), Congress de-
signed incentives to encourage businesses to become 
ESOP-owned S corporations. 
(3) Since that time, several thousand companies 
have become ESOP-owned S corporations, creating 
an ownership interest for several million Americans 
in companies in every State in the country, in indus-
tries ranging from heavy manufacturing to construc-
tion and contracting to services. 
(4) Every United States worker who is an em-
ployee-owner of an S corporation company through 
an ESOP has a valuable qualified retirement savings 
account. 
(5) Recent studies have shown that employees 
of ESOP-owned S corporations enjoy greater job 
stability, wages and benefits than employees of com-
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
parable companies; and ESOP companies are better 
able to weather economic downturns. 
(6) Studies also show that employee-owners of 
S corporation ESOP companies have amassed mean-
ingful retirement savings through their ESOP ac-
counts that will give them the means to retire with 
dignity. 
(7) It is the goal of Congress to preserve and 
foster employee ownership of S corporations through 
ESOPs. 
SEC. 5. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMU-
LATIONS IN QUALIFIED RETIREMENT PLANS. 
(a) IN GENERAL.—Section 4974(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘50 per-
cent’’ and inserting ‘‘25 percent’’. 
(b) REDUCTION IN EXCISE TAX ON FAILURES TO 
TAKE
REQUIRED
MINIMUM
DISTRIBUTIONS.—Section 
4974 of such Code is amended by adding at the end the 
following new subsection: 
‘‘(e) REDUCTION OF TAX IN CERTAIN CASES.— 
‘‘(1) REDUCTION.—In the case of a taxpayer 
who— 
‘‘(A) corrects, during the correction win-
dow, a shortfall of distributions from an indi-
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
vidual retirement plan which resulted in imposi-
tion of a tax under subsection (a), and 
‘‘(B) submits a return, during the correc-
tion window, reflecting such tax (as modified by 
this subsection), 
the first sentence of subsection (a) shall be applied 
by substituting ‘10 percent’ for ‘25 percent’. 
‘‘(2) CORRECTION WINDOW.—For purposes of 
this subsection, the term ‘correction window’ means 
the period of time beginning on the date on which 
the tax under subsection (a) is imposed with respect 
to a shortfall of distributions from an individual re-
tirement plan, and ending on the earlier of— 
‘‘(A) the date on which the Secretary initi-
ates an audit, or otherwise demands payment, 
with respect to the shortfall of distributions, or 
‘‘(B) the last day of the second taxable 
year that begins after the end of the taxable 
year in which the tax under subsection (a) is 
imposed.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
SEC. 6. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIMI-
TATIONS FOR EXCISE TAX ON EXCESS CON-
TRIBUTIONS AND CERTAIN ACCUMULATIONS. 
Section 6501(l) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graph: 
‘‘(4) INDIVIDUAL RETIREMENT PLANS.— 
‘‘(A) IN GENERAL.—For purposes of any 
tax imposed by section 4973 or 4974 in connec-
tion with an individual retirement plan, the re-
turn referred to in this section shall be the in-
come tax return filed by the person on whom 
the tax under such section is imposed for the 
year in which the act (or failure to act) giving 
rise to the liability for such tax occurred. 
‘‘(B) RULE IN CASE OF INDIVIDUALS NOT 
REQUIRED TO FILE RETURN.—In the case of a 
person who is not required to file an income tax 
return for such year— 
‘‘(i) the return referred to in this sec-
tion shall be the income tax return that 
such person would have been required to 
file but for the fact that such person was 
not required to file such return, and 
‘‘(ii) the 3-year period referred to in 
subsection (a) with respect to the return 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS
shall be deemed to begin on the date by 
which the return would have been required 
to be filed (excluding any extension there-
of).’’. 
Æ 
VerDate Sep 11 2014 
16:44 Jun 23, 2021
Jkt 019200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H2927.IH
H2927
pamtmann on DSKBC07HB2PROD with BILLS