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SEC. 603. ELECTIVE DEFERRALS GENERALLY LIMITED TO 
REGULAR CONTRIBUTION LIMIT. 
(a) 
APPLICABLE
EMPLOYER
PLANS.—Section 
414(v)(1) of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following: ‘‘Except in the case 
of an applicable employer plan described in paragraph 
(6)(A)(iv), the preceding sentence shall only apply if con-
tributions are designated Roth contributions (as defined 
in section 402A(c)(1)).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 402(g)(1) of such Code is amended 
by striking subparagraph (C). 
(2) Section 457(e)(18)(A)(ii) of such Code is 
amended by inserting ‘‘the lesser of any designated 
Roth contributions made by the participant to the 
plan or’’ before ‘‘the applicable dollar amount’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
SEC. 604. OPTIONAL TREATMENT OF EMPLOYER MATCHING 
CONTRIBUTIONS AS ROTH CONTRIBUTIONS. 
(a) IN GENERAL.—Section 402A(a) of the Internal 
Revenue Code of 1986 is amended by redesignating para-
graph (2) as paragraph (3), by striking ‘‘and’’ at the end 
of paragraph (1), and by inserting after paragraph (1) the 
following new paragraph: 
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‘‘(2) any designated Roth contribution which is 
made by the employer to the program on the em-
ployee’s behalf, and on account of the employee’s 
contribution, elective deferral, or (subject to the re-
quirements of section 401(m)(13)) qualified student 
loan payment, shall be treated as a matching con-
tribution for purposes of this chapter, except that 
such contribution shall not be excludable from gross 
income, and’’. 
(b) MATCHING INCLUDED IN QUALIFIED ROTH CON-
TRIBUTION PROGRAM.—Section 402A(b)(1) of such Code 
is amended— 
(1) by inserting ‘‘, or to have made on the em-
ployee’s behalf,’’ after ‘‘elect to make’’, and 
(2) by inserting ‘‘, or of matching contributions 
which may otherwise be made on the employee’s be-
half,’’ after ‘‘otherwise eligible to make’’. 
(c) DESIGNATED
ROTH
MATCHING
CONTRIBU-
TIONS.—Section 402A(c)(1) of such Code is amended by 
inserting ‘‘or matching contribution’’ after ‘‘elective defer-
ral’’. 
(d) MATCHING CONTRIBUTION DEFINED.—Section 
402A(e) of such Code is amended by adding at the end 
the following: 
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‘‘(3) MATCHING
CONTRIBUTION.—The term 
‘matching contribution’ means— 
‘‘(A) any matching contribution described 
in section 401(m)(4)(A), and 
‘‘(B) any contribution to an eligible de-
ferred compensation plan (as defined in section 
457(b)) by an eligible employer described in 
section 457(e)(1)(A) on behalf of an employee 
and on account of such employee’s elective de-
ferral under such plan.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made after the 
date of the enactment of this Act. 
TITLE VII—BUDGETARY 
EFFECTS 
SEC. 701. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
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vided that such statement has been submitted prior to the 
vote on passage. 
Passed the House of Representatives March 29, 
2022. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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