2061 
† HR 2617 EAS2 
previous distribution is at least equal 
to the amount of such previous dis-
tribution which has not been so repaid. 
‘‘(viii) SPECIAL RULES.—Rules simi-
lar to the rules of subclauses (II) and (IV) 
of subparagraph (H)(vi) shall apply to any 
emergency personal expense distribution.’’. 
(b) CROSS-REFERENCE.—See section 311 of this Act 
for amendment to section 72(t)(2)(H)(v)(I) of the Internal 
Revenue Code of 1986 limiting repayment of distribution 
to 3 years. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after December 31, 
2023. 
SEC. 116. ALLOW ADDITIONAL NONELECTIVE CONTRIBU-
TIONS TO SIMPLE PLANS. 
(a) IN GENERAL.— 
(1) MODIFICATION
TO
DEFINITION.—Subpara-
graph (A) of section 408(p)(2) is amended by striking 
‘‘and’’ at the end of clause (iii), by redesignating 
clause (iv) as clause (v), and by inserting after clause 
(iii) the following new clause: 
‘‘(iv) the employer may make nonelec-
tive contributions of a uniform percentage 
(up to 10 percent) of compensation for each
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† HR 2617 EAS2 
employee who is eligible to participate in 
the arrangement, and who has at least 
$5,000 of compensation from the employer 
for the year, but such contributions with re-
spect to any employee shall not exceed 
$5,000 for the year, and’’. 
(2) LIMITATION.—Subparagraph (A) of section 
408(p)(2) is amended by adding at the end the fol-
lowing: ‘‘The compensation taken into account under 
clause (iv) for any year shall not exceed the limita-
tion in effect for such year under section 401(a)(17).’’. 
(3) OVERALL
DOLLAR
LIMIT
ON
CONTRIBU-
TIONS.—Paragraph (8) of section 408(p) is amended 
to read as follows: 
‘‘(8) COORDINATION
WITH
MAXIMUM
LIMITA-
TION.—In the case of any simple retirement ac-
count— 
‘‘(A) subsection (a)(1) shall be applied by 
substituting for ‘the amount in effect for such 
taxable year under section 219(b)(1)(A)’ the fol-
lowing: ‘the sum of the dollar amount in effect 
under subsection (p)(2)(A)(ii), the employer con-
tribution required under subsection (p)(2)(A)(iii) 
or (p)(2)(B)(i), whichever is applicable, and a 
contribution which meets the requirement of sub-
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† HR 2617 EAS2 
section (p)(2)(A)(iv) with respect to the em-
ployee’, and 
‘‘(B) subsection (b)(2)(B) shall be applied 
by substituting for ‘the dollar amount in effect 
under section 219(b)(1)(A)’ the following: ‘the 
sum of the dollar amount in effect under sub-
section (p)(2)(A)(ii), the employer contribution 
required under subsection (p)(2)(A)(iii) or 
(p)(2)(B)(i), whichever is applicable, and a con-
tribution which meets the requirement of sub-
section (p)(2)(A)(iv) with respect to the em-
ployee’.’’. 
(4) ADJUSTMENT
FOR
INFLATION.—Paragraph 
(2) of section 408(p), as amended by this Act, is fur-
ther amended by adding at the end the following new 
subparagraph: 
‘‘(G) ADJUSTMENT FOR INFLATION.—In the 
case of taxable years beginning after December 
31, 2024, the $5,000 amount in subparagraph 
(A)(iv)(II) shall be increased by an amount 
equal to— 
‘‘(i) such amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
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† HR 2617 EAS2 
gins, determined by substituting ‘2023’ for 
‘2016’ in subparagraph (A)(ii) thereof. 
If any amount as adjusted under the preceding 
sentence is not a multiple of $100, such amount 
shall be rounded to the nearest multiple of 
$100.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 408(p)(2)(A)(v), as redesignated by 
subsection (a), is amended by striking ‘‘or (iii)’’ and 
inserting ‘‘, (iii), or (iv)’’. 
(2) Section 401(k)(11)(B)(i) is amended by strik-
ing ‘‘and’’ at the end of subclause (II), by redesig-
nating subclause (III) as subclause (IV), and by in-
serting after subclause (II) the following new sub-
clause: 
‘‘(III) the employer may make 
nonelective contributions of a uniform 
percentage (up to 10 percent) of com-
pensation, but not to exceed the 
amount 
in 
effect 
under 
section 
408(p)(2)(A)(iv) in any year, for each 
employee who is eligible to participate 
in the arrangement and who has at 
least $5,000 of compensation from the 
employer for the year, and’’.
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† HR 2617 EAS2 
(3) Section 401(k)(11)(B)(i)(IV), as redesignated 
by paragraph (2), is amended by striking ‘‘or (II)’’ 
and inserting ‘‘, (II), or (III)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2023. 
SEC. 117. CONTRIBUTION LIMIT FOR SIMPLE PLANS. 
(a) IN
GENERAL.—Subparagraph (E) of section 
408(p)(2) is amended— 
(1) by striking ‘‘amount is’’ and all that follows 
in clause (i) and inserting the following: ‘‘dollar 
amount is— 
‘‘(I) the adjusted dollar amount in 
the case of an eligible employer de-
scribed in clause (iii) which had not 
more than 25 employees who received 
at least $5,000 of compensation from 
the employer for the preceding year, 
‘‘(II) the adjusted dollar amount 
in the case of an eligible employer de-
scribed in clause (iii) which is not de-
scribed in subclause (I) and which 
elects, at such time and in such man-
ner as prescribed by the Secretary, the
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† HR 2617 EAS2 
application of this subclause for the 
year, and 
‘‘(III) $10,000 in any other 
case.’’, 
(2) by redesignating clause (ii) as clause (iii) 
and by inserting after clause (i) the following new 
clause: 
‘‘(ii) ADJUSTED
DOLLAR
AMOUNT.— 
For purposes of clause (i), the adjusted dol-
lar amount is an amount equal to 110 per-
cent of the dollar amount in effect under 
clause (i)(III) for calendar year 2024.’’, 
(3) by striking ‘‘ADJUSTMENT.—In the case of’’ 
in clause (iii), as so redesignated, and inserting ‘‘AD-
JUSTMENT.— 
‘‘(I) CERTAIN
LARGE
EMPLOY-
ERS.—In the case of’’, 
(4) by striking ‘‘clause (i)’’ in such clause (iii) 
and inserting ‘‘clause (i)(III)’’, and 
(5) by adding at the end of such clause (iii) the 
following new subclause: 
‘‘(II) OTHER EMPLOYERS.—In the 
case of a year beginning after Decem-
ber 31, 2024, the Secretary shall adjust 
annually the adjusted dollar amount