SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Family Savings Act of 2018’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 
Sec. 101. Multiple employer plans; pooled employer plans. 
Sec. 102. Rules relating to election of safe harbor 401(k) status. 
Sec. 103. Certain taxable non-tuition fellowship and stipend payments treated 
as compensation for IRA purposes. 
Sec. 104. Repeal of maximum age for traditional IRA contributions. 
Sec. 105. Qualified employer plans prohibited from making loans through credit 
cards and other similar arrangements. 
Sec. 106. Portability of lifetime income investments. 
Sec. 107. Treatment of custodial accounts on termination of section 403(b) 
plans. 
Sec. 108. Clarification of retirement income account rules relating to church- 
controlled organizations. 
Sec. 109. Exemption from required minimum distribution rules for individuals 
with certain account balances. 
Sec. 110. Clarification of treatment of certain retirement plan contributions 
picked up by governmental employers for new or existing em-
ployees. 
Sec. 111. Elective deferrals by members of the Ready Reserve of a reserve com-
ponent of the Armed Forces. 
TITLE II—ADMINISTRATIVE IMPROVEMENTS 
Sec. 201. Plan adopted by filing due date for year may be treated as in effect 
as of close of year. 
Sec. 202. Modification of nondiscrimination rules to protect older, longer serv-
ice participants. 
Sec. 203. Fiduciary safe harbor for selection of lifetime income provider. 
TITLE III—OTHER SAVINGS PROVISIONS 
Sec. 301. Universal Savings Accounts. 
Sec. 302. Expansion of section 529 plans. 
Sec. 303. Penalty-free withdrawals from retirement plans for individuals in case 
of birth of child or adoption. 
TITLE IV—BUDGETARY EFFECTS 
Sec. 401. Budgetary effects.
TITLE I—EXPANDING AND PRE-
SERVING RETIREMENT SAV-
INGS 
SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EM-
PLOYER PLANS. 
(a) QUALIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Section 413 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(e) APPLICATION
OF QUALIFICATION REQUIRE-
MENTS FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH 
POOLED PLAN PROVIDERS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if a defined contribution plan to which 
subsection (c) applies— 
‘‘(A) is maintained by employers which 
have a common interest other than having 
adopted the plan, or 
‘‘(B) in the case of a plan not described in 
subparagraph (A), has a pooled plan provider, 
then the plan shall not be treated as failing to meet 
the requirements under this title applicable to a plan 
described in section 401(a) or to a plan that consists 
of individual retirement accounts described in sec-
tion 408 (including by reason of subsection (c)
thereof), whichever is applicable, merely because one 
or more employers of employees covered by the plan 
fail to take such actions as are required of such em-
ployers for the plan to meet such requirements. 
‘‘(2) LIMITATIONS.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any plan unless the terms of the 
plan provide that in the case of any employer 
in the plan failing to take the actions described 
in paragraph (1)— 
‘‘(i) the assets of the plan attributable 
to employees of such employer (or bene-
ficiaries of such employees) will be trans-
ferred to a plan maintained only by such 
employer (or its successor), to an eligible 
retirement plan as defined in section 
402(c)(8)(B) for each individual whose ac-
count is transferred, or to any other ar-
rangement that the Secretary determines is 
appropriate, unless the Secretary deter-
mines it is in the best interests of the em-
ployees of such employer (and the bene-
ficiaries of such employees) to retain the 
assets in the plan, and
‘‘(ii) such employer (and not the plan 
with respect to which the failure occurred 
or any other employer in such plan) shall, 
except to the extent provided by the Sec-
retary, be liable for any liabilities with re-
spect to such plan attributable to employ-
ees of such employer (or beneficiaries of 
such employees). 
‘‘(B) FAILURES
BY
POOLED
PLAN
PRO-
VIDERS.—If the pooled plan provider of a plan 
described in paragraph (1)(B) does not perform 
substantially all of the administrative duties 
which are required of the provider under para-
graph (3)(A)(i) for any plan year, the Secretary 
may provide that the determination as to 
whether the plan meets the requirements under 
this title applicable to a plan described in sec-
tion 401(a) or to a plan that consists of indi-
vidual retirement accounts described in section 
408 (including by reason of subsection (c) 
thereof), whichever is applicable, shall be made 
in the same manner as would be made without 
regard to paragraph (1). 
‘‘(3) POOLED PLAN PROVIDER.—
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘pooled plan provider’ 
means, with respect to any plan, a person 
who— 
‘‘(i) is designated by the terms of the 
plan as a named fiduciary (within the 
meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of 
1974), as the plan administrator, and as 
the person responsible to perform all ad-
ministrative duties (including conducting 
proper testing with respect to the plan and 
the employees of each employer in the 
plan) which are reasonably necessary to 
ensure that— 
‘‘(I) the plan meets any require-
ment applicable under the Employee 
Retirement Income Security Act of 
1974 or this title to a plan described 
in section 401(a) or to a plan that 
consists of individual retirement ac-
counts described in section 408 (in-
cluding by reason of subsection (c) 
thereof), whichever is applicable, and
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
such person determines are necessary 
for the plan to meet the requirements 
described in subclause (I), including 
providing to such person any disclo-
sures or other information which the 
Secretary may require or which such 
person otherwise determines are nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments, 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides such 
other information to the Secretary as the 
Secretary may require, before beginning 
operations as a pooled plan provider, 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary (within 
the meaning of section 402(a)(2) of the 
Employee Retirement Income Security Act 
of 1974), and the plan administrator, with 
respect to the plan, and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who
are fiduciaries of, the plan are bonded in 
accordance with section 412 of the Em-
ployee Retirement Income Security Act of 
1974. 
‘‘(B) AUDITS, EXAMINATIONS AND INVES-
TIGATIONS.—The Secretary may perform au-
dits, examinations, and investigations of pooled 
plan providers as may be necessary to enforce 
and carry out the purposes of this subsection. 
‘‘(C) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a 
person meets the requirements of this para-
graph to be a pooled plan provider with respect 
to any plan, all persons who perform services 
for the plan and who are treated as a single 
employer under subsection (b), (c), (m), or (o) 
of section 414 shall be treated as one person. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the admin-
istrative duties of the pooled plan provider de-
scribed in subparagraph (A)(i), each employer 
in a plan which has a pooled plan provider shall 
be treated as the plan sponsor with respect to 
the portion of the plan attributable to employ-
ees of such employer (or beneficiaries of such 
employees). 
‘‘(4) GUIDANCE.—The Secretary shall issue 
such guidance as the Secretary determines appro-
priate to carry out this subsection, including guid-
ance— 
‘‘(A) to identify the administrative duties 
and other actions required to be performed by 
a pooled plan provider under this subsection, 
‘‘(B) which describes the procedures to be 
taken to terminate a plan which fails to meet 
the requirements to be a plan described in para-
graph (1), including the proper treatment of, 
and actions needed to be taken by, any em-
ployer in the plan and the assets and liabilities 
of the plan attributable to employees of such 
employer (or beneficiaries of such employees), 
and 
‘‘(C) identifying appropriate cases to which 
the rules of paragraph (2)(A) will apply to em-
ployers in the plan failing to take the actions 
described in paragraph (1). 
The Secretary shall take into account under sub-
paragraph (C) whether the failure of an employer or 
pooled plan provider to provide any disclosures or
other information, or to take any other action, nec-
essary to administer a plan or to allow a plan to 
meet requirements applicable to the plan under sec-
tion 401(a) or 408, whichever is applicable, has con-
tinued over a period of time that demonstrates a 
lack of commitment to compliance. 
‘‘(5) MODEL PLAN.—The Secretary shall pub-
lish model plan language which meets the require-
ments of this subsection and of paragraphs (43) and 
(44) of section 3 of the Employee Retirement In-
come Security Act of 1974 and which may be adopt-
ed in order for a plan to be treated as a plan de-
scribed in paragraph (1)(B).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
413(c)(2) of such Code is amended by striking ‘‘sec-
tion 401(a)’’ and inserting ‘‘sections 401(a) and 
408(c)’’. 
(3) TECHNICAL AMENDMENT.—Section 408(c) 
of such Code is amended by inserting after para-
graph (2) the following new paragraph: 
‘‘(3) There is a separate accounting for any in-
terest of an employee or member (or spouse of an 
employee or member) in a Roth IRA.’’. 
(b) NO COMMON INTEREST REQUIRED FOR POOLED 
EMPLOYER PLANS.—Section 3(2) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 
is amended by adding at the end the following: 
‘‘(C) A pooled employer plan shall be treat-
ed as— 
‘‘(i) a single employee pension benefit 
plan or single pension plan; and 
‘‘(ii) a plan to which section 210(a) 
applies.’’. 
(c) POOLED EMPLOYER PLAN AND PROVIDER DE-
FINED.— 
(1) IN GENERAL.—Section 3 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1002) is amended by adding at the end the fol-
lowing: 
‘‘(43) POOLED EMPLOYER PLAN.— 
‘‘(A) IN GENERAL.—The term ‘pooled em-
ployer plan’ means a plan— 
‘‘(i) which is an individual account 
plan established or maintained for the pur-
pose of providing benefits to the employees 
of 2 or more employers; 
‘‘(ii) which is a plan described in sec-
tion 401(a) of the Internal Revenue Code 
of 1986 which includes a trust exempt 
from tax under section 501(a) of such
Code or a plan that consists of individual 
retirement accounts described in section 
408 of such Code (including by reason of 
subsection (c) thereof); and 
‘‘(iii) the terms of which meet the re-
quirements of subparagraph (B). 
Such term shall not include a plan maintained 
by employers which have a common interest 
other than having adopted the plan. 
‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 
The requirements of this subparagraph are met 
with respect to any plan if the terms of the 
plan— 
‘‘(i) designate a pooled plan provider 
and provide that the pooled plan provider 
is a named fiduciary of the plan; 
‘‘(ii) designate one or more trustees 
meeting 
the 
requirements 
of 
section 
408(a)(2) of the Internal Revenue Code of 
1986 (other than an employer in the plan) 
to be responsible for collecting contribu-
tions to, and holding the assets of, the 
plan and require such trustees to imple-
ment written contribution collection proce-
dures that are reasonable, diligent, and 
systematic; 
‘‘(iii) provide that each employer in 
the plan retains fiduciary responsibility 
for— 
‘‘(I) the selection and monitoring 
in accordance with section 404(a) of 
the person designated as the pooled 
plan provider and any other person 
who, in addition to the pooled plan 
provider, is designated as a named fi-
duciary of the plan; and 
‘‘(II) to the extent not otherwise 
delegated to another fiduciary by the 
pooled plan provider and subject to 
the provisions of section 404(c), the 
investment and management of the 
portion of the plan’s assets attrib-
utable to the employees of the em-
ployer (or beneficiaries of such em-
ployees); 
‘‘(iv) provide that employers in the 
plan, and participants and beneficiaries, 
are not subject to unreasonable restric-
tions, fees, or penalties with regard to
ceasing participation, receipt of distribu-
tions, or otherwise transferring assets of 
the plan in accordance with section 208 or 
paragraph (44)(C)(i)(II); 
‘‘(v) require— 
‘‘(I) the pooled plan provider to 
provide to employers in the plan any 
disclosures or other information which 
the Secretary may require, including 
any disclosures or other information 
to facilitate the selection or any moni-
toring of the pooled plan provider by 
employers in the plan; and 
‘‘(II) each employer in the plan 
to take such actions as the Secretary 
or the pooled plan provider determines 
are necessary to administer the plan 
or for the plan to meet any require-
ment applicable under this Act or the 
Internal Revenue Code of 1986 to a 
plan described in section 401(a) of 
such Code or to a plan that consists 
of individual retirement accounts de-
scribed in section 408 of such Code 
(including by reason of subsection (c)
thereof), whichever is applicable, in-
cluding providing any disclosures or 
other information which the Secretary 
may require or which the pooled plan 
provider otherwise determines are nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments; and 
‘‘(vi) provide that any disclosure or 
other information required to be provided 
under clause (v) may be provided in elec-
tronic form and will be designed to ensure 
only reasonable costs are imposed on 
pooled plan providers and employers in the 
plan. 
‘‘(C) EXCEPTIONS.—The term ‘pooled em-
ployer plan’ does not include— 
‘‘(i) a multiemployer plan; or 
‘‘(ii) a plan established before the 
date of the enactment of the Family Sav-
ings Act of 2018 unless the plan adminis-
trator elects that the plan will be treated 
as a pooled employer plan and the plan 
meets the requirements of this title appli-
cable to a pooled employer plan established 
on or after such date. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the admin-
istrative duties of the pooled plan provider de-
scribed in paragraph (44)(A)(i), each employer 
in a pooled employer plan shall be treated as 
the plan sponsor with respect to the portion of 
the plan attributable to employees of such em-
ployer (or beneficiaries of such employees). 
‘‘(44) POOLED PLAN PROVIDER.— 
‘‘(A) IN GENERAL.—The term ‘pooled plan 
provider’ means a person who— 
‘‘(i) is designated by the terms of a 
pooled employer plan as a named fiduciary, 
as the plan administrator, and as the per-
son responsible for the performance of all 
administrative duties (including conducting 
proper testing with respect to the plan and 
the employees of each employer in the 
plan) which are reasonably necessary to 
ensure that— 
‘‘(I) the plan meets any require-
ment applicable under this Act or the 
Internal Revenue Code of 1986 to a
plan described in section 401(a) of 
such Code or to a plan that consists 
of individual retirement accounts de-
scribed in section 408 of such Code 
(including by reason of subsection (c) 
thereof), whichever is applicable; and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
pooled plan provider determines are 
necessary for the plan to meet the re-
quirements described in subclause (I), 
including providing the disclosures 
and information described in para-
graph (43)(B)(v)(II); 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides to 
the Secretary such other information as 
the Secretary may require, before begin-
ning operations as a pooled plan provider; 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary, and the 
plan administrator, with respect to the 
pooled employer plan; and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who
are fiduciaries of, the pooled employer plan 
are bonded in accordance with section 412. 
‘‘(B) AUDITS, EXAMINATIONS AND INVES-
TIGATIONS.—The Secretary may perform au-
dits, examinations, and investigations of pooled 
plan providers as may be necessary to enforce 
and carry out the purposes of this paragraph 
and paragraph (43). 
‘‘(C) GUIDANCE.—The Secretary shall 
issue such guidance as the Secretary determines 
appropriate to carry out this paragraph and 
paragraph (43), including guidance— 
‘‘(i) to identify the administrative du-
ties and other actions required to be per-
formed by a pooled plan provider under ei-
ther such paragraph; and 
‘‘(ii) which requires in appropriate 
cases that if an employer in the plan fails 
to take the actions required under sub-
paragraph (A)(i)(II)— 
‘‘(I) the assets of the plan attrib-
utable to employees of such employer 
(or beneficiaries of such employees) 
are transferred to a plan maintained 
only by such employer (or its suc-
cessor), to an eligible retirement plan 
as defined in section 402(c)(8)(B) of 
the Internal Revenue Code of 1986 
for each individual whose account is 
transferred, or to any other arrange-
ment that the Secretary determines is 
appropriate in such guidance; and 
‘‘(II) such employer (and not the 
plan with respect to which the failure 
occurred or any other employer in 
such plan) shall, except to the extent 
provided in such guidance, be liable 
for any liabilities with respect to such 
plan attributable to employees of such 
employer (or beneficiaries of such em-
ployees). 
The Secretary shall take into account under 
clause (ii) whether the failure of an employer or 
pooled plan provider to provide any disclosures 
or other information, or to take any other ac-
tion, necessary to administer a plan or to allow 
a plan to meet requirements described in sub-
paragraph (A)(i)(II) has continued over a pe-
riod of time that demonstrates a lack of com-
mitment to compliance. The Secretary may
waive the requirements of subclause (ii)(I) in 
appropriate circumstances if the Secretary de-
termines it is in the best interests of the em-
ployees of the employer referred to in such 
clause (and the beneficiaries of such employees) 
to retain the assets in the plan with respect to 
which the employer’s failure occurred. 
‘‘(D) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a 
person meets the requirements of this para-
graph to be a pooled plan provider with respect 
to any plan, all persons who perform services 
for the plan and who are treated as a single 
employer under subsection (b), (c), (m), or (o) 
of section 414 of the Internal Revenue Code of 
1986 shall be treated as one person.’’. 
(2) BONDING REQUIREMENTS FOR POOLED EM-
PLOYER PLANS.—The last sentence of section 412(a) 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1112(a)) is amended by inserting 
‘‘or in the case of a pooled employer plan (as defined 
in section 3(43))’’ after ‘‘section 407(d)(1))’’. 
(3) CONFORMING
AND
TECHNICAL
AMEND-
MENTS.—Section 3 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1002) is 
amended— 
(A) in paragraph (16)(B)— 
(i) by striking ‘‘or’’ at the end of 
clause (ii); and 
(ii) by striking the period at the end 
and inserting ‘‘, or (iv) in the case of a 
pooled employer plan, the pooled plan pro-
vider.’’; and 
(B) by striking the second paragraph (41). 
(d) POOLED EMPLOYER AND MULTIPLE EMPLOYER 
PLAN REPORTING.— 
(1) ADDITIONAL
INFORMATION.—Section 103 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1023) is amended— 
(A) in subsection (a)(1)(B), by striking 
‘‘applicable subsections (d), (e), and (f)’’ and 
inserting ‘‘applicable subsections (d), (e), (f), 
and (g)’’; and 
(B) by amending subsection (g) to read as 
follows: 
‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO 
POOLED
EMPLOYER
AND
MULTIPLE
EMPLOYER 
PLANS.—An annual report under this section for a plan 
year shall include—
‘‘(1) with respect to any plan to which section 
210(a) applies (including a pooled employer plan), a 
list of employers in the plan, a good faith estimate 
of the percentage of total contributions made by 
such employers during the plan year, and the aggre-
gate account balances attributable to each employer 
in the plan (determined as the sum of the account 
balances of the employees of such employer (and the 
beneficiaries of such employees)); and 
‘‘(2) with respect to a pooled employer plan, the 
identifying information for the person designated 
under the terms of the plan as the pooled plan pro-
vider.’’. 
(2) SIMPLIFIED
ANNUAL
REPORTS.—Section 
104(a) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1024(a)) is amended by 
striking paragraph (2)(A) and inserting the fol-
lowing: 
‘‘(2)(A) With respect to annual reports required 
to be filed with the Secretary under this part, the 
Secretary may by regulation prescribe simplified an-
nual reports for any pension plan that— 
‘‘(i) covers fewer than 100 participants; or 
‘‘(ii) is a plan described in section 210(a) 
that covers fewer than 1,000 participants, but
only if no single employer in the plan has 100 
or more participants covered by the plan.’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2019. 
(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 amendments) to provide for 
the proper treatment of a failure to meet any re-
quirement applicable under the Internal Revenue 
Code of 1986 with respect to one employer (and its 
employees) in a multiple employer plan. 
SEC. 102. RULES RELATING TO ELECTION OF SAFE HARBOR 
401(k) STATUS. 
(a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE 
TO MATCHING CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Section 401(k)(12)(A) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘if such arrangement’’ and all that follows and 
inserting ‘‘if such arrangement—
‘‘(i) meets the contribution require-
ments of subparagraph (B) and the notice 
requirements of subparagraph (D), or 
‘‘(ii) meets the contribution require-
ments of subparagraph (C).’’. 
(2) 
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENTS.—Section 401(k)(13)(B) of such Code is 
amended by striking ‘‘means’’ and all that follows 
and inserting ‘‘means a cash or deferred arrange-
ment— 
‘‘(i) which is described in subpara-
graph (D)(i)(I) and meets the applicable 
requirements 
of 
subparagraphs 
(C) 
through (E), or 
‘‘(ii) which is described in subpara-
graph (D)(i)(II) and meets the applicable 
requirements of subparagraphs (C) and 
(D).’’. 
(b) 
NONELECTIVE
CONTRIBUTIONS.—Section 
401(k)(12) of such Code is amended by redesignating sub-
paragraph (F) as subparagraph (G), and by inserting 
after subparagraph (E) the following new subparagraph: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a plan may be amend-
ed after the beginning of a plan year to 
provide that the requirements of subpara-
graph (C) shall apply to the arrangement 
for the plan year, but only if the amend-
ment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, 
or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION WHERE PLAN PRO-
VIDED FOR MATCHING CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of sub-
paragraph (B) or paragraph (13)(D)(i)(I) 
applied to the plan year. 
‘‘(iii) 4-PERCENT CONTRIBUTION RE-
QUIREMENT.—Clause 
(i)(II) 
shall 
not 
apply to an arrangement unless the 
amount of the contributions described in
subparagraph (C) which the employer is 
required to make under the arrangement 
for the plan year with respect to any em-
ployee is an amount equal to at least 4 
percent of the employee’s compensation.’’. 
(c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 
Section 401(k)(13) of such Code is amended by adding 
at the end the following: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a plan may be amend-
ed after the beginning of a plan year to 
provide that the requirements of subpara-
graph (D)(i)(II) shall apply to the arrange-
ment for the plan year, but only if the 
amendment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, 
or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year.
‘‘(ii) EXCEPTION WHERE PLAN PRO-
VIDED FOR MATCHING CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of sub-
paragraph (D)(i)(I) or paragraph (12)(B) 
applied to the plan year. 
‘‘(iii) 4-PERCENT CONTRIBUTION RE-
QUIREMENT.—Clause 
(i)(II) 
shall 
not 
apply to an arrangement unless the 
amount of the contributions described in 
subparagraph (D)(i)(II) which the em-
ployer is required to make under the ar-
rangement for the plan year with respect 
to any employee is an amount equal to at 
least 4 percent of the employee’s com-
pensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2018. 
SEC. 103. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 
AND STIPEND PAYMENTS TREATED AS COM-
PENSATION FOR IRA PURPOSES. 
(a) IN GENERAL.—Section 219(f)(1) of the Internal 
Revenue Code of 1986 is amended by adding at the end
the following: ‘‘The term ‘compensation’ shall include any 
amount included in gross income and paid to an individual 
to aid the individual in the pursuit of graduate or 
postdoctoral study.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
SEC. 104. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
CONTRIBUTIONS. 
(a) IN GENERAL.—Section 219(d) of the Internal 
Revenue Code of 1986 is amended by striking paragraph 
(1). 
(b) CONFORMING AMENDMENT.—Section 408A(c) of 
the Internal Revenue Code of 1986 is amended by striking 
paragraph (4) and by redesignating paragraphs (5), (6), 
and (7) as paragraphs (4), (5), and (6), respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made for taxable 
years beginning after December 31, 2018. 
SEC. 105. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 
MAKING LOANS THROUGH CREDIT CARDS 
AND OTHER SIMILAR ARRANGEMENTS. 
(a) IN GENERAL.—Section 72(p)(2) of the Internal 
Revenue Code of 1986 is amended by redesignating sub-
paragraph (D) as subparagraph (E) and by inserting after 
subparagraph (C) the following new subparagraph: 
‘‘(D) PROHIBITION
OF
LOANS
THROUGH 
CREDIT CARDS AND OTHER SIMILAR ARRANGE-
MENTS.—Notwithstanding subparagraph (A), 
paragraph (1) shall apply to any loan which is 
made through the use of any credit card or any 
other similar arrangement.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to loans made after the date 
of the enactment of this Act. 
SEC. 106. PORTABILITY OF LIFETIME INCOME INVEST-
MENTS. 
(a) IN GENERAL.—Section 401(a) of the Internal 
Revenue Code of 1986 is amended by inserting after para-
graph (37) the following new paragraph: 
‘‘(38) PORTABILITY OF LIFETIME INCOME IN-
VESTMENTS.— 
‘‘(A) IN GENERAL.—Except as may be oth-
erwise provided by regulations, a trust forming 
part of a defined contribution plan shall not be 
treated as failing to constitute a qualified trust 
under this section solely by reason of allowing— 
‘‘(i) qualified distributions of a life-
time income investment, or
‘‘(ii) distributions of a lifetime income 
investment in the form of a qualified plan 
distribution annuity contract, 
on or after the date that is 90 days prior to the 
date on which such lifetime income investment 
is no longer authorized to be held as an invest-
ment option under the plan. 
‘‘(B) DEFINITIONS.—For purposes of this 
subsection— 
‘‘(i) the term ‘qualified distribution’ 
means a direct trustee-to-trustee transfer 
described in paragraph (31)(A) to an eligi-
ble retirement plan (as defined in section 
402(c)(8)(B)), 
‘‘(ii) the term ‘lifetime income invest-
ment’ means an investment option which is 
designed to provide an employee with elec-
tion rights— 
‘‘(I) which are not uniformly 
available with respect to other invest-
ment options under the plan, and 
‘‘(II) which are to a lifetime in-
come feature available through a con-
tract or other arrangement offered 
under the plan (or under another eli-
gible retirement plan (as so defined), 
if paid by means of a direct trustee- 
to-trustee transfer described in para-
graph (31)(A) to such other eligible 
retirement plan), 
‘‘(iii) the term ‘lifetime income fea-
ture’ means— 
‘‘(I) a feature which guarantees a 
minimum level of income annually (or 
more frequently) for at least the re-
mainder of the life of the employee or 
the joint lives of the employee and the 
employee’s designated beneficiary, or 
‘‘(II) an annuity payable on be-
half of the employee under which pay-
ments are made in substantially equal 
periodic payments (not less frequently 
than annually) over the life of the em-
ployee or the joint lives of the em-
ployee and the employee’s designated 
beneficiary, and 
‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
contract purchased for a participant and 
distributed to the participant by a plan or
contract described in subparagraph (B) of 
section 
402(c)(8) 
(without 
regard 
to 
clauses (i) and (ii) thereof).’’. 
(b) CASH OR DEFERRED ARRANGEMENT.— 
(1) IN GENERAL.—Section 401(k)(2)(B)(i) of 
such Code is amended by striking ‘‘or’’ at the end 
of subclause (IV), by striking ‘‘and’’ at the end of 
subclause (V) and inserting ‘‘or’’, and by adding at 
the end the following new subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect 
to amounts invested in a lifetime in-
come investment (as defined in sub-
section (a)(38)(B)(ii)), the date that 
is 90 days prior to the date that such 
lifetime income investment may no 
longer be held as an investment option 
under the arrangement, and’’. 
(2) 
DISTRIBUTION
REQUIREMENT.—Section 
401(k)(2)(B) of such Code, as amended by para-
graph (1), is amended by striking ‘‘and’’ at the end 
of clause (i), by striking the semicolon at the end of 
clause (ii) and inserting ‘‘, and’’, and by adding at 
the end the following new clause:
‘‘(iii) except as may be otherwise pro-
vided by regulations, in the case of 
amounts described in clause (i)(VI), will be 
distributed only in the form of a qualified 
distribution (as defined in subsection 
(a)(38)(B)(i)) or a qualified plan distribu-
tion annuity contract (as defined in sub-
section (a)(38)(B)(iv)),’’. 
(c) SECTION 403(b) PLANS.— 
(1) ANNUITY CONTRACTS.—Section 403(b)(11) 
of such Code is amended by striking ‘‘or’’ at the end 
of subparagraph (B), by striking the period at the 
end of subparagraph (C) and inserting ‘‘, or’’, and 
by inserting after subparagraph (C) the following 
new subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, with respect to amounts invested 
in a lifetime income investment (as defined in 
section 401(a)(38)(B)(ii))— 
‘‘(i) on or after the date that is 90 
days prior to the date that such lifetime 
income investment may no longer be held 
as an investment option under the con-
tract, and
‘‘(ii) in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(2) 
CUSTODIAL
ACCOUNTS.—Section 
403(b)(7)(A) of such Code is amended by striking 
‘‘if—’’ and all that follows and inserting ‘‘if the 
amounts are to be invested in regulated investment 
company stock to be held in that custodial account, 
and under the custodial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
such amount is a distribution to which sec-
tion 72(t)(2)(G) applies) before— 
‘‘(I) the employee dies, 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment, 
‘‘(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) except as may be otherwise 
provided by regulations, with respect 
to amounts invested in a lifetime in-
come 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 contract, and 
‘‘(ii) in the case of amounts described 
in clause (i)(VI), such amounts will be dis-
tributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
(1) IN
GENERAL.—Section 457(d)(1)(A) of 
such Code is amended by striking ‘‘or’’ at the end 
of clause (ii), by inserting ‘‘or’’ at the end of clause 
(iii), and by adding after clause (iii) the following:
‘‘(iv) except as may be otherwise pro-
vided by regulations, in the case of a plan 
maintained by an employer described in 
subsection 
(e)(1)(A), 
with 
respect 
to 
amounts invested in a lifetime income in-
vestment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such lifetime 
income investment may no longer be held 
as an investment option under the plan,’’. 
(2) 
DISTRIBUTION
REQUIREMENT.—Section 
457(d)(1) of such Code is amended by striking 
‘‘and’’ at the end of subparagraph (B), by striking 
the period at the end of subparagraph (C) and in-
serting ‘‘, and’’, and by inserting after subparagraph 
(C) the following new subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, in the case of amounts described 
in subparagraph (A)(iv), such amounts will be 
distributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan distribu-
tion 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, 2018. 
SEC. 107. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
(a) IN GENERAL.—Section 403(b)(7) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(D) TREATMENT
OF
CUSTODIAL
AC-
COUNT UPON PLAN TERMINATION.— 
‘‘(i) IN GENERAL.—If— 
‘‘(I) an employer terminates the 
plan under which amounts are con-
tributed to a custodial account under 
subparagraph (A), and 
‘‘(II) the person holding the as-
sets of the account has demonstrated 
to the satisfaction of the Secretary 
under section 408(a)(2) that the per-
son is qualified to be a trustee of an 
individual retirement plan, 
then, as of the date of the termination, the 
custodial account shall be deemed to be an 
individual retirement plan for purposes of 
this title.
‘‘(ii) TREATMENT AS ROTH IRA.—Any 
custodial account treated as an individual 
retirement plan under clause (i) shall be 
treated as a Roth IRA only if the custodial 
account was a designated Roth account.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan terminations occurring 
after December 31, 2018. 
SEC. 108. CLARIFICATION OF RETIREMENT INCOME AC-
COUNT RULES RELATING TO CHURCH-CON-
TROLLED ORGANIZATIONS. 
(a) IN GENERAL.—Section 403(b)(9)(B) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘(in-
cluding an employee described in section 414(e)(3)(B))’’ 
after ‘‘employee described in paragraph (1)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan years beginning after De-
cember 31, 2008. 
SEC. 109. EXEMPTION FROM REQUIRED MINIMUM DIS-
TRIBUTION RULES FOR INDIVIDUALS WITH 
CERTAIN ACCOUNT BALANCES. 
(a) IN GENERAL.—Section 401(a)(9) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph:
‘‘(H) EXCEPTION
FROM
REQUIRED
MIN-
IMUM
DISTRIBUTIONS
DURING
LIFE
OF
EM-
PLOYEE
WHERE
ASSETS
DO
NOT
EXCEED 
$50,000.— 
‘‘(i) IN GENERAL.—If on the last day 
of any calendar year the aggregate value of 
an employee’s entire interest under all ap-
plicable eligible retirement plans does not 
exceed $50,000, then the requirements of 
subparagraph (A) with respect to any dis-
tribution relating to such year shall not 
apply with respect to such 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)) 
other than a defined benefit plan. 
‘‘(iii) LIMIT ON REQUIRED MINIMUM 
DISTRIBUTION.—The required minimum 
distribution determined under subpara-
graph (A) for an employee under all appli-
cable eligible retirement plans shall not ex-
ceed an amount equal to the excess of—
‘‘(I) the aggregate value of an 
employee’s entire interest under such 
plans on the last day of the calendar 
year to which such distribution re-
lates, over 
‘‘(II) the dollar amount in effect 
under clause (i) for such calendar 
year. 
The Secretary in regulations or other guid-
ance may provide how such amount shall 
be distributed in the case of an individual 
with more than one applicable eligible re-
tirement plan. 
‘‘(iv) INFLATION
ADJUSTMENT.—In 
the case of any calendar year beginning 
after 2019, the $50,000 amount in clause 
(i) shall be increased by an amount equal 
to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost of living adjust-
ment determined under section 1(f)(3) 
for the calendar year, determined by 
substituting ‘calendar year 2018’ for
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under this clause 
shall be rounded to the next lowest mul-
tiple of $5,000. 
‘‘(v) PLAN ADMINISTRATOR RELIANCE 
ON EMPLOYEE CERTIFICATION.—An appli-
cable eligible retirement plan described in 
clause (iii), (iv), (v), or (vi) of section 
402(c)(8)(B) shall not be treated as failing 
to meet the requirements of this paragraph 
in the case of any failure to make a re-
quired minimum distribution for a cal-
endar year if— 
‘‘(I) the aggregate value of an 
employee’s entire interest under all 
applicable eligible retirement plans of 
the employer on the last day of the 
calendar year to which such distribu-
tion relates does not exceed the dollar 
amount in effect for such year under 
clause (i), and 
‘‘(II) the employee certifies that 
the aggregate value of the employee’s 
entire interest under all applicable eli-
gible retirement plans on the last day 
of the calendar year to which such 
distribution relates did not exceed the 
dollar amount in effect for such year 
under clause (i). 
‘‘(vi) AGGREGATION
RULE.—All em-
ployers treated as a single employer under 
subsection (b), (c), (m), or (o) of section 
414 shall be treated as a single employer 
for purposes of clause (v).’’. 
(b) PLAN
ADMINISTRATOR
REPORTING.—Section 
6047 of such Code is amended by redesignating subsection 
(h) as subsection (i) and by inserting after subsection (g) 
the following new subsection: 
‘‘(h) ACCOUNT BALANCE FOR PARTICIPANTS WHO 
HAVE ATTAINED AGE 69.— 
‘‘(1) IN GENERAL.—Not later than January 31 
of each year, the plan administrator (as defined in 
section 414(g)) of each applicable eligible retirement 
plan (as defined in section 401(a)(9)(H)) shall make 
a return to the Secretary with respect to each par-
ticipant of such plan who has attained age 69 as of 
the end of the preceding calendar year which 
states—
‘‘(A) the name and plan number of the 
plan, 
‘‘(B) the name and address of the plan ad-
ministrator, 
‘‘(C) the name, address, and taxpayer 
identification number of the participant, and 
‘‘(D) the account balance of such partici-
pant as of the end of the preceding calendar 
year. 
‘‘(2) STATEMENT
FURNISHED
TO
PARTICI-
PANT.—Every person required to make a return 
under paragraph (1) with respect to a participant 
shall furnish a copy of such return to such partici-
pant. 
‘‘(3) APPLICATION TO INDIVIDUAL RETIREMENT 
PLANS AND ANNUITIES.—In the case of an applica-
ble eligible retirement plan described in clause (i) or 
(ii) of section 402(c)(8)(B)— 
‘‘(A) any reference in this subsection to 
the plan administrator shall be treated as a ref-
erence to the trustee or issuer, as the case may 
be, and 
‘‘(B) any reference in this subsection to 
the participant shall be treated as a reference
to the individual for whom such account or an-
nuity is maintained.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions required to be 
made in calendar years beginning more than 120 days 
after the date of the enactment of this Act. 
SEC. 110. CLARIFICATION OF TREATMENT OF CERTAIN RE-
TIREMENT PLAN CONTRIBUTIONS PICKED UP 
BY GOVERNMENTAL EMPLOYERS FOR NEW 
OR EXISTING EMPLOYEES. 
(a) IN GENERAL.—Section 414(h)(2) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of paragraph 
(1)’’ and inserting the following: 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)’’, and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) TREATMENT
OF
ELECTIONS
BE-
TWEEN
ALTERNATIVE
BENEFIT
FORMULAS.— 
For purposes of subparagraph (A), a contribu-
tion shall not fail to be treated as picked up by 
an employing unit merely because the employee 
may make an irrevocable election between the 
application of two alternative benefit formulas
involving the same or different levels of em-
ployee contributions.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan years beginning after the 
date of the enactment of this Act. 
SEC. 111. ELECTIVE DEFERRALS BY MEMBERS OF THE 
READY RESERVE OF A RESERVE COMPONENT 
OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 402(g) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(9) ELECTIVE DEFERRALS BY MEMBERS OF 
READY RESERVE.— 
‘‘(A) IN GENERAL.—In the case of a quali-
fied ready reservist for any taxable year, the 
limitations of subparagraphs (A) and (C) of 
paragraph (1) shall be applied separately with 
respect to— 
‘‘(i) elective deferrals of such qualified 
ready reservist with respect to compensa-
tion described in subparagraph (B), and 
‘‘(ii) all other elective deferrals of 
such qualified ready reservist. 
‘‘(B) QUALIFIED READY RESERVIST.—For 
purposes of this paragraph, the term ‘qualified
ready reservist’ means any individual for any 
taxable year if such individual received com-
pensation for service as a member of the Ready 
Reserve of a reserve component (as defined in 
section 101 of title 37, United States Code) 
during such taxable year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan years beginning after De-
cember 31, 2018. 
TITLE II—ADMINISTRATIVE 
IMPROVEMENTS 
SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 
MAY BE TREATED AS IN EFFECT AS OF CLOSE 
OF YEAR. 
(a) IN GENERAL.—Section 401(b) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘RETROACTIVE CHANGES
IN 
PLAN.—A stock bonus’’ and inserting ‘‘PLAN 
AMENDMENTS.— 
‘‘(1) CERTAIN
RETROACTIVE
CHANGES
IN 
PLAN.—A stock bonus’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) ADOPTION
OF
PLAN.—If an employer 
adopts a stock bonus, pension, profit-sharing, or an-
nuity plan after the close of a taxable year but be-
fore the time prescribed by law for filing the employ-
er’s return of tax for the taxable year (including ex-
tensions thereof), the employer may elect to treat 
the plan as having been adopted as of the last day 
of the taxable year.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plans adopted for taxable years 
beginning after December 31, 2018. 
SEC. 202. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by redesignating subsection (o) as sub-
section (p), and 
(2) by inserting after subsection (n) the fol-
lowing new subsection: 
‘‘(o) 
SPECIAL
RULES
FOR
APPLYING
NON-
DISCRIMINATION RULES TO PROTECT OLDER, LONGER 
SERVICE AND GRANDFATHERED PARTICIPANTS.— 
‘‘(1) TESTING
OF
DEFINED
BENEFIT
PLANS 
WITH CLOSED CLASSES OF PARTICIPANTS.— 
‘‘(A) BENEFITS, RIGHTS, OR
FEATURES 
PROVIDED
TO
CLOSED
CLASSES.—A defined
benefit plan which provides benefits, rights, or 
features to a closed class of participants shall 
not fail to satisfy the requirements of sub-
section (a)(4) by reason of the composition of 
such closed class or the benefits, rights, or fea-
tures provided to such closed class, if— 
‘‘(i) for the plan year as of which the 
class closes and the 2 succeeding plan 
years, such benefits, rights, and features 
satisfy the requirements of subsection 
(a)(4) (without regard to this subpara-
graph but taking into account the rules of 
subparagraph (I)), 
‘‘(ii) after the date as of which the 
class was closed, any plan amendment 
which modifies the closed class or the ben-
efits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iii) the class was closed before April 
5, 2017, or the plan is described in sub-
paragraph (C).
‘‘(B) AGGREGATE TESTING WITH DEFINED 
CONTRIBUTION PLANS PERMITTED ON A BENE-
FITS BASIS.— 
‘‘(i) IN
GENERAL.—For purposes of 
determining compliance with subsection 
(a)(4) and section 410(b), a defined benefit 
plan described in clause (iii) may be aggre-
gated and tested on a benefits basis with 
1 or more defined contribution plans, in-
cluding with the portion of 1 or more de-
fined contribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contribu-
tions or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a 
tax credit employee stock ownership 
plan (within the meaning of section 
409(a)).
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—For purposes of clause 
(i), if a defined benefit plan is aggregated 
with a portion of a defined contribution 
plan providing matching contributions— 
‘‘(I) such defined benefit plan 
must also be aggregated with any por-
tion of such defined contribution plan 
which provides elective deferrals de-
scribed in subparagraph (A) or (C) of 
section 402(g)(3), and 
‘‘(II) such matching contribu-
tions shall be treated in the same 
manner as nonelective contributions, 
including for purposes of applying the 
rules of subsection (l). 
‘‘(iii) PLANS DESCRIBED.—A defined 
benefit plan is described in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
‘‘(II) for the plan year as of 
which the class closes and the 2 suc-
ceeding plan years, the plan satisfies 
the requirements of section 410(b) 
and subsection (a)(4) (without regard
to this subparagraph but taking into 
account the rules of subparagraph 
(I)), 
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ment which modifies the closed class 
or the benefits provided to such closed 
class does not discriminate signifi-
cantly in favor of highly compensated 
employees, and 
‘‘(IV) the class was closed before 
April 5, 2017, or the plan is described 
in subparagraph (C). 
‘‘(C) PLANS DESCRIBED.—A plan is de-
scribed in this subparagraph if, taking into ac-
count any predecessor plan— 
‘‘(i) such plan has been in effect for 
at least 5 years as of the date the class is 
closed, and 
‘‘(ii) during the 5-year period pre-
ceding the date the class is closed, there 
has not been a substantial increase in the 
coverage or value of the benefits, rights, or 
features described in subparagraph (A) or 
in the coverage or benefits under the plan
433(j)(1)(B)) shall be used in lieu of the 
amount 
determined 
under 
section 
430(b)(1)(A)(i). 
‘‘(H) TREATMENT AS SINGLE PLAN.—For 
purposes of subparagraphs (E) and (G), a plan 
described in section 413(c) shall be treated as 
a single plan rather than as separate plans 
maintained by each employer in the plan. 
‘‘(I) SPECIAL
RULES.—For purposes of 
subparagraphs (A)(i) and (B)(iii)(II), the fol-
lowing rules shall apply: 
‘‘(i) In applying section 410(b)(6)(C), 
the closing of the class of participants shall 
not be treated as a significant change in 
coverage under section 410(b)(6)(C)(i)(II). 
‘‘(ii) 2 or more plans shall not fail to 
be eligible to be aggregated and treated as 
a single plan solely by reason of having dif-
ferent plan years. 
‘‘(iii) Changes in the employee popu-
lation shall be disregarded to the extent at-
tributable to individuals who become em-
ployees or cease to be employees, after the 
date the class is closed, by reason of a
merger, acquisition, divestiture, or similar 
event. 
‘‘(iv) Aggregation and all other testing 
methodologies otherwise applicable under 
subsection (a)(4) and section 410(b) may 
be taken into account. 
The rule of clause (ii) shall also apply for pur-
poses of determining whether plans to which 
subparagraph (B)(i) applies may be aggregated 
and treated as 1 plan for purposes of deter-
mining whether such plans meet the require-
ments of subsection (a)(4) and section 410(b). 
‘‘(J) SPUN-OFF PLANS.—For purposes of 
this paragraph, if a portion of a defined benefit 
plan described in subparagraph (A) or (B)(iii) 
is spun off to another employer and the spun- 
off plan continues to satisfy the requirements 
of— 
‘‘(i) 
subparagraph 
(A)(i) 
or 
(B)(iii)(II), whichever is applicable, if the 
original plan was still within the 3-year pe-
riod described in such subparagraph at the 
time of the spin off, and 
‘‘(ii) 
subparagraph 
(A)(ii) 
or 
(B)(iii)(III), whichever is applicable,
‘‘(2) SPECIAL RULE.—A contribution shall not 
be taken into account under paragraph (1) if such 
contribution (together with the amount of net in-
come attributable to such contribution) is distributed 
to the account holder on or before the due date of 
the account holder’s return of tax for such taxable 
year.’’. 
(c) TAX ON PROHIBITED TRANSACTIONS.—Section 
4975(e)(1) of such Code is amended by striking ‘‘or’’ at 
the end of subparagraph (F), by striking the period at 
the end of subparagraph (G) and inserting ‘‘, or’’, and 
by adding at the end the following new subparagraph: 
‘‘(H) a Universal Savings Account (as de-
fined in section 530U).’’. 
(d) FAILURE TO PROVIDE REPORTS ON UNIVERSAL 
SAVINGS ACCOUNTS.—Section 6693(a)(2) of such Code is 
amended by striking ‘‘and’’ at the end of subparagraph 
(E), by striking the period at the end of subparagraph 
(F) and inserting ‘‘, and’’, and by inserting after subpara-
graph (F) the following new subparagraph: 
‘‘(G) section 530U(g) (relating to Uni-
versal Savings Accounts).’’. 
(e) CONFORMING AMENDMENT.—The table of parts 
for subchapter F of chapter 1 of such Code is amended 
by adding at the end the following new item: 
‘‘PART IX. UNIVERSAL SAVINGS ACCOUNTS’’.