‘‘(IV) the employee becomes dis-
abled (within the meaning of section 
72(m)(7)), 
‘‘(V) in the case of contributions 
made pursuant to a salary reduction 
agreement (within the meaning of sec-
tion 3121(a)(5)(D)), the employee en-
counters financial hardship, or 
‘‘(VI) with respect to amounts in-
vested in a lifetime income investment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the plan, provided that any distribu-
tion under this subparagraph must be 
in the form of a qualified distribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan 
distribution annuity contract (as de-
fined in section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
Subparagraph (A) of section 457(d)(1) is amended by 
striking ‘‘or’’ at the end of clause (ii), by inserting ‘‘or’’ 
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at the end of clause (iii), and by adding after clause (iii) 
the following: 
‘‘(iv) with respect to amounts invested 
in a lifetime income investment (as defined 
in section 401(a)(38)(B)(ii)), the date that 
is 90 days prior to the date that such life-
time income investment may no longer be 
held as an investment option under the 
plan, provided that any distribution under 
this subparagraph must be in the form of 
a qualified distribution (as defined in sec-
tion 401(a)(38)(B)(i)) or a qualified plan 
distribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)),’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2013. 
SEC. 306. LOST PENSION PLAN REGISTRY. 
(a) IN GENERAL.—Subtitle C of title IV of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1341 et seq.) is amended by adding at the end 
the following: 
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‘‘SEC. 4051. LOST PENSION PLAN REGISTRY. 
‘‘No later than December 31, 2014, the corporation 
shall establish a database to be known as the Lost Pension 
Plan Registry. The corporation shall— 
‘‘(1) ensure that the database contains a record 
of the information described in section 6057(b) of 
the Internal Revenue Code of 1986 that is trans-
mitted by the Secretary of the Treasury to the cor-
poration pursuant to section 6057(d) of such Code, 
and 
‘‘(2) post such record on the corporation’s 
website in a manner calculated to inform partici-
pants and beneficiaries of the name, location, and 
contact information for any plan that has changed 
its identity or status.’’. 
(b) AMENDMENT
TO
THE
INTERNAL
REVENUE 
CODE.—Section 6057(d) of the Internal Revenue Code of 
1986 is amended by inserting ‘‘and to the Pension Benefit 
Guaranty Corporation’’ before the period at the end. 
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TITLE IV—SIMPLIFICATION AND 
CLARIFICATION 
OF 
QUALI-
FIED 
RETIREMENT 
PLAN 
RULES 
SEC. 401. EXCEPTION FROM REQUIRED DISTRIBUTIONS 
WHERE AGGREGATE RETIREMENT SAVINGS 
DO NOT EXCEED $100,000. 
(a) IN GENERAL.—Section 401(a)(9) (relating to re-
quired distributions) is amended by adding at the end the 
following new subparagraph: 
‘‘(I) EXCEPTION
FROM
REQUIRED
MIN-
IMUM
DISTRIBUTIONS
DURING
LIFE
OF
EM-
PLOYEE OR BENEFICIARY WHERE ASSETS DO 
NOT EXCEED $100,000.— 
‘‘(i) IN GENERAL.—If, as of a meas-
urement date, the aggregate balance to the 
credit of an employee under all applicable 
eligible retirement plans does not exceed 
$100,000, then the requirements of sub-
paragraph (A) shall not apply to the em-
ployee during any succeeding calendar 
year. In addition, if, as of a measurement 
date, the aggregate balance to the credit of 
an employee under all applicable eligible 
retirement plans does not exceed $100,000, 
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then the requirements of subparagraph (B) 
shall not apply during any succeeding cal-
endar year to the employee’s designated 
beneficiary with respect to the designated 
beneficiary’s interest in the balance to the 
credit of the deceased employee. 
‘‘(ii) APPLICABLE ELIGIBLE RETIRE-
MENT PLAN.—For purposes of this sub-
paragraph, the term ‘applicable eligible re-
tirement plan’ means an eligible retirement 
plan (as defined in section 402(c)(8)(B)) 
and any other plan, contract, or arrange-
ment to which the requirements of this 
paragraph apply. 
‘‘(iii) SPECIAL RULE FOR BENEFITS 
PAID AS A LIFE ANNUITY FROM DEFINED 
BENEFIT
PLAN.—In determining the ag-
gregate balance under clause (i), there 
shall not be taken into account the value of 
any benefits under a defined benefit plan 
that, on the measurement date, are being 
paid as a life annuity. 
‘‘(iv) MEASUREMENT DATE.— 
‘‘(I) 
INITIAL
MEASUREMENT 
DATES.—The 
initial 
measurement 
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date for an individual is the last day 
of the calendar year preceding the 
earlier of— 
‘‘(aa) the calendar year in 
which the employee attains age 
701⁄2, or 
‘‘(bb) the calendar year in 
which the employee dies. 
‘‘(II) 
SUBSEQUENT
MEASURE-
MENT DATES.—If, in a calendar year, 
an individual who is exempted from 
the requirements of this paragraph 
pursuant to clause (i) receives con-
tributions, rollovers, or transfers of 
amounts, or accrues additional bene-
fits under a defined benefit plan, that 
were not previously taken into account 
in applying this subparagraph, then 
the last day of that calendar year 
shall be a new measurement date and 
a new determination shall be made as 
to whether clause (i) applies. 
‘‘(v) DETERMINING
VALUE
OF
DE-
FINED
BENEFIT
PLAN
BENEFITS.—The 
value of defined benefit plan benefits is de-
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termined in accordance with the applicable 
interest rate and applicable mortality rate 
assumptions under section 417(e), except 
that the value shall be equal to the amount 
of the single sum payment payable to the 
extent available under the plan. 
‘‘(vi) PHASE-IN
OF
MINIMUM
DIS-
TRIBUTION REQUIREMENTS.—For an indi-
vidual whose aggregate balance exceeds the 
exemption level in clause (i) by less than 
$10,000, required minimum distribution 
requirements will phase in based on the 
ratio of— 
‘‘(I) the amount by which the ag-
gregate balance exceeds the exemption 
level, to 
‘‘(II) $10,000. 
‘‘(vii) 
COST
OF
LIVING
ADJUST-
MENTS.—The Secretary shall adjust annu-
ally the $100,000 amount specified in 
clause (i) for increases in the cost-of-living 
at the same time and in the same manner 
as adjustments under section 415(d); ex-
cept that the base period shall be the cal-
endar quarter beginning July 1, 2013, and 
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any increase which is not a multiple of 
$5,000 shall be rounded to the next lowest 
multiple of $5,000.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to initial measurement dates occur-
ring on or after December 31, 2013. 
SEC. 402. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 
RESOLUTION SYSTEM. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of the 
Treasury shall modify the Employee Plans Compliance 
Resolution System (as described in Revenue Procedure 
2013–12) to achieve the results specified in the succeeding 
subsections of this section and to further facilitate correc-
tions and compliance in such other means as the Secretary 
deems appropriate. 
(b) LOAN ERROR.— 
(1) In the case of plan loan errors for which 
corrections are specified under the voluntary compli-
ance program, self-correction shall be made available 
by methods applicable to such loans through the vol-
untary compliance program. 
(2) The Secretary of Labor shall treat any loan 
error corrected pursuant to paragraph (1) as meet-
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ing the requirements of the Voluntary Fiduciary 
Correction Program of the Department of Labor. 
(c) 457(b) PLAN CORRECTION.—The Secretary of 
the Treasury shall update the Employee Plans Compliance 
Resolution System to provide the same type of comprehen-
sive correction program that is available under such sys-
tem to retirement plans qualified under section 401(a) of 
the Internal Revenue Code of 1986 to plans maintained 
pursuant to section 457(b) of such Code by an employer 
described in section 457(e)(1)(A) of such Code. 
(d) EPCRS FOR IRAS.—The Secretary of the Treas-
ury shall expand the Employee Plans Compliance Resolu-
tion System to allow custodians of individual retirement 
plans to address inadvertent errors for which the owner 
of an individual retirement plan was not at fault, including 
(but not limited to)— 
(1) waivers of the excise tax that would other-
wise apply under section 4974 of the Internal Rev-
enue Code of 1986, 
(2) under the self-correction component of the 
Employee Plans Compliance Resolution System, 
waivers of the 60-day deadline for a rollover where 
the deadline is missed for reasons beyond the rea-
sonable control of the account owner, and 
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(3) rules permitting a nonspouse beneficiary to 
return distributions to an inherited individual retire-
ment plan described in section 408(d)(3)(C) of the 
Internal Revenue Code of 1986 in a case where, due 
to an inadvertent error by a service provider, the 
beneficiary had reason to believe that the distribu-
tion could be rolled over without inclusion in income 
of any part of the distributed amount. 
(e) REQUIRED MINIMUM DISTRIBUTION CORREC-
TIONS.—The Secretary of the Treasury shall expand the 
Employee Plans Compliance Resolution System to allow 
plans to which such system applies and custodians of indi-
vidual retirement plans to self-correct, without an excise 
tax, any inadvertent errors pursuant to which a distribu-
tion is made no more than 180 days after it was required 
to be made. 
(f) AUTOMATIC FEATURE ERROR CORRECTION.—In 
order to promote the adoption of automatic enrollment 
and automatic escalation, the Secretary of the Treasury 
shall modify the Employee Plans Compliance Resolution 
System to establish specific correction methods for errors 
in implementing automatic enrollment and automatic es-
calation features. 
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SEC. 403. USE OF FORFEITURES TO FUND SAFE HARBOR 
CONTRIBUTIONS. 
(a) IN GENERAL.—Section 401(k) (as amended by 
this Act) is amended by adding at the end the following 
new paragraph: 
‘‘(17) A matching contribution or nonelective 
contribution described in paragraph (3)(D)(ii), sub-
paragraph (B) or (C) of paragraph (12), or para-
graph (13)(D) shall not fail to satisfy the definition 
under such paragraph merely because the contribu-
tion is funded in whole or in part by forfeitures.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to forfeitures allocated in ac-
cordance with section 401(k)(14) of the Internal Revenue 
Code of 1986 (as amended by subsection (a)) before, on 
or after the date of enactment of this Act. 
SEC. 404. SUBSTANTIAL CESSATION OF OPERATIONS. 
(a) IN GENERAL.—Subsection (e) of section 4062 of 
the Employee Retirement Income Security Act of 1974 is 
amended by striking ‘‘If an employer’’ and inserting ‘‘(1) 
IN GENERAL.—If an employer’’, and by adding at the end 
thereof the following new paragraph: 
‘‘(2) 
SUBSTANTIAL
CESSATION
OF
OPER-
ATIONS.—An employer shall not be treated as hav-
ing a cessation described in paragraph (1) unless— 
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‘‘(A) all operations at a facility in a loca-
tion are ceased and— 
‘‘(i) such cessation is reasonably ex-
pected to be permanent, 
‘‘(ii) no portion of such operations is 
moved to another facility at a different lo-
cation, 
‘‘(iii) no portion of such operations is 
assumed or otherwise transferred to an-
other employer, and 
‘‘(iv) no other operations are reason-
ably expected to be maintained at such fa-
cility, and 
‘‘(B) as a result of the cessation described 
in subparagraph (A), more than 20 percent of 
the employees of the employer have a termi-
nation of employment that is reasonably ex-
pected to be permanent. For purposes of this 
subparagraph, employees of the employer shall 
include all employees treated as employed by a 
single employer under sections 210(c) and 
(d).’’. 
(b) DIRECTION TO THE CORPORATION.—The Pen-
sion Benefit Guaranty Corporation shall not take any en-
forcement, administrative, or other actions pursuant to 
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section 4062(e) of such Act that are inconsistent with sub-
paragraph (A) of section 4062(e)(2) of such Act, as 
amended, without regard to whether such actions relate 
to a cessation or other event that occurs before or after 
the date of enactment of this Act. 
(c) EFFECTIVE
DATE.—Subsection (b) and the 
amendment made by subsection (a) shall apply as of the 
date of enactment of this Act. 
SEC. 405. CHURCH PLAN CLARIFICATION. 
(a) APPLICATION OF CONTROLLED GROUP RULES TO 
CHURCH PLANS.— 
(1) IN GENERAL.—Section 414(c) is amended— 
(A) by striking ‘‘For purposes’’ and insert-
ing the following: 
‘‘(1) IN GENERAL.—For purposes’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) CHURCH PLANS.— 
‘‘(A) GENERAL RULE.—Except as provided 
in subparagraphs (B) and (C), for purposes of 
this subsection and subsection (m), an organi-
zation that is otherwise eligible to participate in 
a church plan as defined in subsection (e) shall 
not be aggregated with another such organiza-
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tion and treated as a single employer with such 
other organization unless— 
‘‘(i) one such organization provides di-
rectly or indirectly at least 80 percent of 
the operating funds for the other organiza-
tion during the preceding tax year of the 
recipient organization, and 
‘‘(ii) there is a degree of common 
management or supervision between the or-
ganizations. 
For purposes of this subparagraph, a degree of 
common management or supervision exists only 
if the organization providing the operating 
funds is directly involved in the day-to-day op-
erations of the other organization. 
‘‘(B) 
NONQUALIFIED
CHURCH-CON-
TROLLED
ORGANIZATIONS.—Notwithstanding 
the provisions of subparagraph (A), for pur-
poses of this subsection and subsection (m), an 
organization that is a nonqualified church-con-
trolled organization shall be aggregated with 
one or more other nonqualified church-con-
trolled organizations, or with an organization 
that is not exempt from tax under section 501, 
and treated as a single employer with such 
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other organizations, if at least 80 percent of the 
directors or trustees of such organizations are 
either representatives of, or directly or indi-
rectly controlled by, the first organization. For 
purposes of this subparagraph, a ‘nonqualified 
church controlled organization’ shall mean a 
church-controlled organization described in sec-
tion 501(c)(3) that is not a qualified church- 
controlled organization described in section 
3121(w)(3)(B). 
‘‘(C) PERMISSIVE
AGGREGATION
AMONG 
CHURCH-RELATED ORGANIZATIONS.—Organiza-
tions described in subparagraph (A) may elect 
to be treated as under common control for pur-
poses of this subsection. Such election shall be 
made by the church or convention or association 
of churches with which such organizations are 
associated within the meaning of section 
414(e)(3)(D), or by an organization determined 
by such church or convention or association of 
churches to be the appropriate organization for 
making such election. 
‘‘(D) PERMISSIVE
DISAGGREGATION
OF 
CHURCH-RELATED
ORGANIZATIONS.—For pur-
poses of subparagraph (A) above, in the case of 
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a church plan (as defined in section 414(e)), 
any employer may permissively disaggregate 
those entities that are not churches (as defined 
in section 403(b)(12)(B)) separately from those 
entities that are churches, even if such entities 
maintain separate church plans. 
‘‘(E) ANTI-ABUSE RULE.—For purposes of 
subparagraphs (A) and (B), the anti-abuse rule 
in Treasury Regulation section 1.414(c)–5(f) 
shall apply.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning before, on, or after the date of the enactment 
of this Act. 
(b) APPLICATION OF CONTRIBUTION AND FUNDING 
LIMITATIONS
TO
403(b) GRANDFATHERED
DEFINED 
BENEFIT PLANS.— 
(1) IN GENERAL.—Section 251(e)(5) of the Tax 
Equity and Fiscal Responsibility Act of 1982 (Public 
Law 97–248), is amended— 
(A) by striking ‘‘403(b)(2)’’ and inserting 
‘‘403(b)’’, and 
(B) by inserting before the period at the 
end the following: ‘‘, and shall be subject to the 
applicable limitations of section 415(b) of such 
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Code as if it were a defined benefit plan under 
section 401(a) of such Code and not the limita-
tions of section 415(c) of such Code (relating to 
limitation for defined contribution plans).’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply as if included in the 
enactment of the Tax Equity and Fiscal Responsi-
bility Act of 1982. 
(c) AUTOMATIC ENROLLMENT BY CHURCH PLANS.— 
(1) IN GENERAL.—This subsection shall super-
sede any law of a State that relates to wage, salary, 
or payroll payment, collection, deduction, garnish-
ment, assignment or withholding which would di-
rectly or indirectly prohibit or restrict the inclusion 
in any church plan (as defined in this subsection) of 
an automatic contribution arrangement. 
(2) DEFINITION OF AUTOMATIC CONTRIBUTION 
ARRANGEMENT.—For purposes of this subsection, 
the term ‘‘automatic contribution arrangement’’ 
means an arrangement— 
(A) under which a participant may elect to 
have the plan sponsor make payments as con-
tributions under the plan on behalf of the par-
ticipant, or to the participant directly in cash, 
and 
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(B) under which a participant is treated as 
having elected to have the plan sponsor make 
such contributions in an amount equal to a uni-
form percentage of compensation provided 
under the plan until the participant specifically 
elects not to have such contributions made (or 
specifically elects to have such contributions 
made at a different percentage). 
(3) NOTICE REQUIREMENTS.— 
(A) The plan administrator of an auto-
matic contribution arrangement shall, within a 
reasonable period before such plan year, provide 
to each participant to whom the arrangement 
applies for such plan year notice of the partici-
pant’s rights and obligations under the arrange-
ment which— 
(i) is sufficiently accurate and com-
prehensive to apprise the participant of 
such rights and obligations, and 
(ii) is written in a manner calculated 
to be understood by the average partici-
pant to whom the arrangement applies. 
(B) A notice shall not be treated as meet-
ing the requirements of subparagraph (A) with 
respect to a participant unless— 
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(i) the notice includes an explanation 
of the participant’s right under the ar-
rangement not to have elective contribu-
tions made on the participant’s behalf (or 
to elect to have such contributions made at 
a different percentage), 
(ii) the participant has a reasonable 
period of time, after receipt of the notice 
described in subparagraph (A) and before 
the first elective contribution is made, to 
make such election, and 
(iii) the notice explains how contribu-
tions made under the arrangement will be 
invested in the absence of any investment 
election by the participant. 
(4) EFFECTIVE
DATE.—This subsection shall 
take effect on the date of the enactment of this Act. 
(d) ALLOW CERTAIN PLAN TRANSFERS AND MERG-
ERS.— 
(1) IN GENERAL.—Section 414 is amended by 
adding at the end the following new subsection: 
‘‘(y) CERTAIN PLAN TRANSFERS AND MERGERS.— 
‘‘(1) IN GENERAL.—Under rules prescribed by 
the Secretary, except as provided in paragraph (2), 
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no amount shall be includible in gross income by 
reason of— 
‘‘(A) a transfer of all or a portion of the 
account balance of a participant or beneficiary, 
whether or not vested, from a plan described in 
section 401(a) or an annuity contract described 
in section 403(b), which is a church plan de-
scribed in section 414(e) to an annuity contract 
described in section 403(b), if such plan and 
annuity contract are both maintained by the 
same church or convention or association of 
churches, 
‘‘(B) a transfer of all or a portion of the 
account balance of a participant or beneficiary, 
whether or not vested, from an annuity contract 
described in section 403(b) to a plan described 
in section 401(a) or an annuity contract de-
scribed in section 403(b), which is a church 
plan described in section 414(e), if such plan 
and annuity contract are both maintained by 
the same church or convention or association of 
churches, or 
‘‘(C) a merger of a plan described in sec-
tion 401(a), or an annuity contract described in 
section 403(b), which is a church plan described 
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in section 414(e) with an annuity contract de-
scribed in section 403(b), if such plan and an-
nuity contract are both maintained by the same 
church or convention or association of churches. 
‘‘(2) LIMITATION.—Paragraph (1) shall not 
apply to a transfer or merger unless the partici-
pant’s or beneficiary’s benefit immediately after the 
transfer or merger is equal to or greater than the 
participant’s or beneficiary’s benefit immediately be-
fore the transfer or merger. 
‘‘(3) QUALIFICATION.—A plan or annuity con-
tract shall not fail to be considered to be described 
in sections 401(a) or 403(b) merely because such 
plan or account engages in a transfer or merger de-
scribed in this subsection. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) CHURCH.—The term ‘church’ in-
cludes an organization described in subpara-
graph (A) or (B)(ii) of subsection (e)(3). 
‘‘(B) ANNUITY CONTRACT.—The term ‘an-
nuity contract’ includes a custodial account de-
scribed in section 403(b)(7) and a retirement 
income 
account 
described 
in 
section 
403(b)(9).’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to transfers or merg-
ers occurring after the date of the enactment of this 
Act. 
(e) INVESTMENTS BY CHURCH PLANS IN COLLEC-
TIVE TRUSTS.— 
(1) IN GENERAL.—In the case of— 
(A) a church plan (as defined in section 
414(e) of the Internal Revenue Code 1986), in-
cluding a plan described in section 401(a) of 
such Code and a retirement income account de-
scribed in section 403(b)(9) of such Code, and 
(B) an organization described in section 
414(e)(3)(A) of such Code the principal pur-
pose or function of which is the administration 
of such a plan or account, 
the assets of such plan, account, or organization (in-
cluding any assets otherwise permitted to be com-
mingled for investment purposes with the assets of 
such a plan, account, or organization) may be in-
vested in a group trust otherwise described in Inter-
nal Revenue Service Revenue Ruling 81–100 (as 
modified by Internal Revenue Service Revenue Rul-
ings 2004–67 and 2011–1), or any subsequent rev-
enue ruling that supersedes or modifies such revenue 
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to be tested on a benefits basis with one or 
more defined contribution plans. 
‘‘(ii) A defined benefit plan is de-
scribed in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
‘‘(II) the plan and such benefits 
satisfy the requirements of subpara-
graph (A) (without regard to this sub-
paragraph) as of the date the class 
was closed, and 
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ments that modify the closed class or 
the benefits provided to such closed 
class satisfy subparagraph (A) (with-
out regard to this subparagraph). 
If a plan amendment causes a plan to 
cease to be described in this clause (ii) by 
reason of subclause (III), the plan is never-
theless described in this clause (ii) if such 
plan satisfies this clause (ii) (without re-
gard to subclause (III)) as of the effective 
date of such amendment. In such cases, 
subclauses (II) and (III) shall subsequently 
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