ing and receiving such transfer shall be treated 
as permitting such transfer). 
In any case in which recoupment is sought on behalf 
of the plan but is disputed by the participant or ben-
eficiary who received such overpayment, such dispute 
shall be subject to the claims and appeals procedures 
of the plan that made such overpayment, such plan 
shall notify the plan receiving the rollover of such 
dispute, and the plan receiving the rollover shall re-
tain such overpayment on behalf of the participant 
or beneficiary (and shall be entitled to treat such 
overpayment as plan assets) pending the outcome of 
such procedures.’’. 
(b) OVERPAYMENTS UNDER ERISA.—Section 206 of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1056) is amended by adding at the end the 
following new subsection: 
‘‘(h) SPECIAL RULES APPLICABLE
TO BENEFIT 
OVERPAYMENTS.— 
‘‘(1) GENERAL RULE.—In the case of an inad-
vertent benefit overpayment by any pension plan, the 
responsible plan fiduciary shall not be considered to 
have failed to comply with the requirements of this 
title merely because such fiduciary determines, in 
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the exercise of its fiduciary discretion, not to seek 
recovery of all or part of such overpayment from— 
‘‘(A) any participant or beneficiary, 
‘‘(B) any plan sponsor of, or contributing 
employer to— 
‘‘(i) an individual account plan, pro-
vided that the amount needed to prevent or 
restore any impermissible forfeiture from 
any participant’s or beneficiary’s account 
arising in connection with the overpayment 
is, separately from and independently of 
the overpayment, allocated to such account 
pursuant to the nonforfeitability require-
ments of section 203 (for example, out of 
the plan’s forfeiture account, additional 
employer contributions, or recoveries from 
those responsible for the overpayment), or 
‘‘(ii) a defined benefit pension plan 
subject to the funding rules in part 3 of 
this subtitle B, unless the responsible plan 
fiduciary determines, in the exercise of its 
fiduciary discretion, that failure to recover 
all or part of the overpayment faster than 
required under such funding rules would 
materially affect the plan’s ability to pay 
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benefits due to other participants and 
beneficiaries, or 
‘‘(C) any fiduciary of the plan, other than 
a fiduciary (including a plan sponsor or contrib-
uting employer acting in a fiduciary capacity) 
whose breach of its fiduciary duties resulted in 
such overpayment, provided that if the plan has 
established prudent procedures to prevent and 
minimize overpayment of benefits and the rel-
evant plan fiduciaries have followed such proce-
dures, an inadvertent benefit overpayment will 
not give rise to a breach of fiduciary duty. 
‘‘(2) REDUCTION
IN
FUTURE
BENEFIT
PAY-
MENTS
AND
RECOVERY
FROM
RESPONSIBLE 
PARTY.—Paragraph (1) shall not fail to apply with 
respect to any inadvertent benefit overpayment 
merely because, after discovering such overpayment, 
the responsible plan fiduciary— 
‘‘(A) reduces future benefit payments to 
the correct amount provided for under the 
terms of the plan, or 
‘‘(B) seeks recovery from the person or 
persons responsible for the overpayment. 
‘‘(3) EMPLOYER
FUNDING
OBLIGATIONS.— 
Nothing in this subsection shall relieve an employer 
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of any obligation imposed on it to make contribu-
tions to a plan to meet the minimum funding stand-
ards under part 3 of this subtitle B or to prevent 
or restore an impermissible forfeiture in accordance 
with section 203. 
‘‘(4) RECOUPMENT
FROM
PARTICIPANTS
AND 
BENEFICIARIES.—If the responsible plan fiduciary, 
in the exercise of its fiduciary discretion, decides to 
seek recoupment from a participant or beneficiary of 
all or part of an inadvertent benefit overpayment 
made by the plan to such participant or beneficiary, 
it may do so, subject to the following conditions: 
‘‘(A) No interest or other additional 
amounts (such as collection costs or fees) are 
sought on overpaid amounts. 
‘‘(B) If the plan seeks to recoup past over-
payments of a non-decreasing periodic benefit 
by reducing future benefit payments— 
‘‘(i) the reduction ceases after the 
plan has recovered the full dollar amount 
of the overpayment, 
‘‘(ii) the amount recouped each cal-
endar year does not exceed 10 percent of 
the full dollar amount of the overpayment, 
and 
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‘‘(iii) future benefit payments are not 
reduced to below 90 percent of the periodic 
amount otherwise payable under the terms 
of the plan. 
Alternatively, if the plan seeks to recoup past 
overpayments of a non-decreasing periodic ben-
efit through one or more installment payments, 
the sum of such installment payments in any 
calendar year does not exceed the sum of the 
reductions that would be permitted in such year 
under the preceding sentence. 
‘‘(C) If the plan seeks to recoup past over-
payments of a benefit other than a non-decreas-
ing periodic benefit, the plan satisfies require-
ments developed by the Secretary of the Treas-
ury for purposes of this subparagraph. 
‘‘(D) Efforts to recoup overpayments are 
not made through a collection agency or similar 
third party and such efforts are not accom-
panied by threats of litigation, unless the re-
sponsible plan fiduciary reasonably believes it 
could prevail in a civil action brought in Fed-
eral or State court to recoup the overpayments. 
‘‘(E) Recoupment of past overpayments to 
a participant is not sought from any beneficiary 
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of the participant, including a spouse, surviving 
spouse, former spouse, or other beneficiary. 
‘‘(F) Recoupment may not be sought if the 
first overpayment occurred more than 3 years 
before the participant or beneficiary is first no-
tified in writing of the error. 
‘‘(G) A participant or beneficiary from 
whom recoupment is sought is entitled to con-
test all or part of the recoupment pursuant to 
the plan’s claims and appeals procedures. 
‘‘(H) In determining the amount of 
recoupment to seek, the responsible plan fidu-
ciary may take into account the hardship that 
recoupment likely would impose on the partici-
pant or beneficiary. 
‘‘(5) 
EFFECT
OF
CULPABILITY.—Subpara-
graphs (A) through (F) of paragraph (4) shall not 
apply to protect a participant or beneficiary who is 
culpable. For purposes of this paragraph, a partici-
pant or beneficiary is culpable if the individual bears 
responsibility for the overpayment (such as through 
misrepresentations or omissions that led to the over-
payment), or if the individual knew, or had good 
reason to know under the circumstances, that the 
benefit payment or payments were materially in ex-
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cess of the correct amount. Notwithstanding the pre-
ceding sentence, an individual is not culpable merely 
because the individual believed the benefit payment 
or payments were or might be in excess of the cor-
rect amount, if the individual raised that question 
with an authorized plan representative and was told 
the payment or payments were not in excess of the 
correct amount. With respect to a culpable partici-
pant or beneficiary, efforts to recoup overpayments 
shall not be made through threats of litigation, un-
less a lawyer for the plan could make the representa-
tions required under Rule 11 of the Federal Rules 
of Civil Procedure if the litigation were brought in 
Federal court.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply as of the date of the enactment 
of this Act. 
(d) CERTAIN ACTIONS BEFORE DATE OF ENACT-
MENT.—Plans, fiduciaries, employers, and plan sponsors 
are entitled to rely on— 
(1) a good faith interpretation of then existing 
administrative guidance for inadvertent benefit over-
payment recoupments and recoveries that com-
menced before the date of enactment of this Act, 
and 
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(2) determinations made before such date of en-
actment by the responsible plan fiduciary, in the ex-
ercise of its fiduciary discretion, not to seek 
recoupment or recovery of all or part of an inad-
vertent benefit overpayment. 
In the case of a benefit overpayment that occurred prior 
to the date of enactment of this Act, any installment pay-
ments by the participant or beneficiary to the plan or any 
reduction in periodic benefit payments to the participant 
or beneficiary, which were made in recoupment of such 
overpayment and which commenced prior to such date, 
may continue after such date. Nothing in this subsection 
shall relieve a fiduciary from responsibility for an overpay-
ment that resulted from a breach of its fiduciary duties. 
SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCU-
MULATIONS 
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.— 
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‘‘(1) REDUCTION.—In the case of a taxpayer 
who— 
‘‘(A) corrects, during the correction win-
dow, a shortfall of distributions from an indi-
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.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLO-
CATION FUNDS. 
(a) IN GENERAL.—Not later than 6 months after the 
date of the enactment of this Act, the Secretary of Labor 
(or the Secretary’s delegate) shall modify the regulations 
under section 404 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1104) to provide that, in 
the case of a designated investment alternative which con-
tains a mix of asset classes, a plan administrator may, 
but is not required to, use a benchmark which is a blend 
of different broad-based securities market indices if— 
(1) the blend is reasonably representative of the 
asset class holdings of the designated investment al-
ternative; 
(2) for purposes of determining the blend’s re-
turns for 1-, 5-, and 10-calendar-year periods (or for 
the life of the alternative, if shorter), the blend is 
modified at least once per year to reflect changes in 
the asset class holdings of the designated investment 
alternative; 
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(3) the blend is furnished to participants and 
beneficiaries in a manner that is reasonably designed 
to be understandable and helpful; and 
(4) each securities market index which is used 
for an associated asset class would separately satisfy 
the requirements of such regulations for such asset 
class. 
(b) STUDY.—Not later than December 31, 2022, the 
Secretary of Labor (or the Secretary’s delegate) shall de-
liver a report to the Committees on Ways and Means and 
Education and Labor of the House of Representatives and 
the Committees on Finance and Health, Education, 
Labor, and Pensions of the Senate regarding the effective-
ness of the benchmarking requirements under section 
2550.404a–5 of title 29, Code of Federal Regulations. 
SEC. 304. REVIEW AND REPORT TO THE CONGRESS RELAT-
ING TO REPORTING AND DISCLOSURE RE-
QUIREMENTS. 
(a) STUDY.—As soon as practicable after the date of 
the enactment of this Act, the Secretary of Labor, the Sec-
retary of the Treasury, and the Pension Benefit Guaranty 
Corporation shall review the reporting and disclosure re-
quirements of— 
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(1) title I of the Employee Retirement Income 
Security Act of 1974 applicable to pension plans (as 
defined in section 3(2) of such Act); and 
(2) the Internal Revenue Code of 1986 applica-
ble to qualified retirement plans (as defined in sec-
tion 4974(c) of such Code without regard to para-
graphs (4) and (5) thereof). 
(b) REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the Secretary of Labor, 
the Secretary of the Treasury, and the Pension Benefit 
Guaranty Corporation, jointly, and after consultation with 
a balanced group of participant and employer representa-
tives, shall with respect to plans referenced in subsection 
(a) report on the effectiveness of the applicable reporting 
and disclosure requirements and make such recommenda-
tions as may be appropriate to the appropriate committees 
of the Congress to consolidate, simplify, standardize, and 
improve such requirements so as to simplify reporting for 
such plans and ensure that plans can simply furnish and 
participants and beneficiaries timely receive and better un-
derstand the information they need to monitor their plans, 
plan for retirement, and obtain the benefits they have 
earned. Such report shall assess the extent to which retire-
ment plans are retaining disclosures, work records, and 
plan documents that are needed to ensure accurate cal-
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culation of future benefits. To assess the effectiveness of 
the applicable reporting and disclosure requirements, the 
report shall include an analysis, based on plan data, of 
how participants and beneficiaries are providing preferred 
contact information, the methods by which plan sponsors 
and plans are furnishing disclosures, and the rate at which 
participants and beneficiaries (grouped by key demo-
graphics) are receiving, accessing, and retaining disclo-
sures. The agencies shall conduct appropriate surveys and 
data collection to obtain any needed information. 
SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICI-
PANTS. 
(a) AMENDMENT OF INTERNAL REVENUE CODE OF 
1986.—Section 414 of the Internal Revenue Code of 
1986, as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new 
subsection: 
‘‘(cc) ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICIPANTS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, with respect to any defined 
contribution plan, no disclosure, notice, or other plan 
document (other than the notices and documents de-
scribed in subparagraphs (A) and (B)) shall be re-
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quired to be furnished under this title to any 
unenrolled participant if the unenrolled participant 
receives— 
‘‘(A) an annual reminder notice (in paper 
format, or in any electronic format consented to 
by the participant) of such participant’s eligi-
bility to participate in such plan and any appli-
cable election deadlines under the plan, and 
‘‘(B) any document requested by such par-
ticipant which the participant would be entitled 
to receive without regard to this subsection. 
‘‘(2) UNENROLLED
PARTICIPANT.—For pur-
poses of this subsection, the term ‘unenrolled partici-
pant’ means an employee who— 
‘‘(A) is eligible to participate in a defined 
contribution plan, 
‘‘(B) has received all required notices, dis-
closures, and other plan documents required to 
be furnished under this title and the summary 
plan description as provided in section 104(b) 
of the Employee Retirement Income Security 
Act of 1974 in connection with such partici-
pant’s initial eligibility to participate in such 
plan, 
‘‘(C) is not participating in such plan, and 
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‘‘(D) does not have a balance in the plan. 
For purposes of this subsection, any eligibility to 
participate in the plan following any period for 
which such employee was not eligible to participate 
shall be treated as initial eligibility. 
‘‘(3) ANNUAL
REMINDER
NOTICE.—For pur-
poses of this subsection, the term ‘annual reminder 
notice’ means the notice described in section 111(c) 
of the Employee Retirement Income Security Act of 
1974.’’. 
(b) AMENDMENT OF EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Part 1 of subtitle B of sub-
chapter I of the Employee Retirement Income Secu-
rity Act of 1974 is amended by redesignating section 
111 as section 112 and by inserting after section 
110 the following new section: 
‘‘SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICI-
PANTS. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this title, with respect to any individual account 
plan, no disclosure, notice, or other plan document (other 
than the notices and documents described in paragraphs 
(1) and (2)) shall be required to be furnished under this 
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title to any unenrolled participant if the unenrolled partici-
pant receives— 
‘‘(1) an annual reminder notice of such partici-
pant’s eligibility to participate in such plan and any 
applicable election deadlines under the plan; and 
‘‘(2) any document requested by such partici-
pant which the participant would be entitled to re-
ceive without regard to this section. 
‘‘(b) UNENROLLED PARTICIPANT.—For purposes of 
this section, the term ‘unenrolled participant’ means an 
employee who— 
‘‘(1) is eligible to participate in an individual 
account plan; 
‘‘(2) has received all required notices, disclo-
sures, and other plan documents, including the sum-
mary plan description, required to be furnished 
under this title in connection with such participant’s 
initial eligibility to participate in such plan; 
‘‘(3) is not participating in such plan; and 
‘‘(4) does not have a balance in the plan. 
For purposes of this section, any eligibility to participate 
in the plan following any period for which such employee 
was not eligible to participate shall be treated as initial 
eligibility. 
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‘‘(c) ANNUAL REMINDER NOTICE.—For purposes of 
this section, the term ‘annual reminder notice’ means a 
notice provided in accordance with section 2520.104b–1 
of title 29, Code of Federal Regulations (or any successor 
regulation), which— 
‘‘(1) is furnished in connection with the annual 
open season election period with respect to the plan 
or, if there is no such period, is furnished within a 
reasonable period prior to the beginning of each plan 
year; 
‘‘(2) notifies the unenrolled participant of— 
‘‘(A) the unenrolled participant’s eligibility 
to participate in the plan; and 
‘‘(B) the key benefits under the plan and 
the key rights and features under the plan af-
fecting such benefits; and 
‘‘(3) provides such information in a prominent 
manner calculated to be understood by the average 
participant.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of the Employee Retirement In-
come Security Act of 1974 is amended by striking 
the item relating to section 111 and by inserting 
after the item relating to section 110 the following 
new items: 
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‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled 
participants. 
‘‘Sec. 112. Repeal and effective date.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2021. 
SEC. 306. RETIREMENT SAVINGS LOST AND FOUND. 
(a) RETIREMENT SAVINGS LOST AND FOUND.— 
(1) ESTABLISHMENT.— 
(A) IN GENERAL.—Not later than 3 years 
after the date of the enactment of this Act, the 
Secretary of Labor, the Secretary of the Treas-
ury, and the Secretary of Commerce, in co-
operation, shall establish an online searchable 
database (to be managed by the Pension Ben-
efit Guaranty Corporation in accordance with 
section 4051 of the Employee Retirement In-
come Security Act of 1974) to be known as the 
‘‘Retirement Savings Lost and Found’’. The 
Retirement Savings Lost and Found shall— 
(i) allow an individual to search for 
information that enables the individual to 
locate the plan administrator of any plans 
with respect to which the individual is or 
was a participant or beneficiary, and to 
provide contact information for the plan 
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administrator of any plan described in sub-
paragraph (B); 
(ii) allow the corporation to assist 
such an individual in locating any plan of 
the individual; and 
(iii) allow the corporation to make any 
necessary changes to contact information 
on record for the plan administrator based 
on any changes to the plan due to merger 
or consolidation of the plan with any other 
plan, division of the plan into two or more 
plans, bankruptcy, termination, change in 
name of the plan, change in name or ad-
dress of the plan administrator, or other 
causes. 
The Retirement Savings Lost and Found estab-
lished under this paragraph shall include infor-
mation reported under section 4051 of the Em-
ployee Retirement Income Security Act of 1974 
and other relevant information obtained by the 
Pension Benefit Guaranty Corporation. 
(B) PLANS DESCRIBED.—A plan described 
in this subparagraph is a plan to which the 
vesting standards of section 203 of part 2 of 
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subtitle B of title I of the Employee Retirement 
Income Security Act of 1974 apply. 
(2) ADMINISTRATION.—The Retirement Sav-
ings Lost and Found established under paragraph 
(1) shall provide individuals described in paragraph 
(1)(A) only with the ability to view contact informa-
tion for the plan administrator of any plan with re-
spect to which the individual is or was a participant 
or beneficiary, sufficient to allow the individual to lo-
cate the individual’s plan in order to recover any 
benefit owing to the individual under the plan. 
(3) SAFEGUARDING PARTICIPANT PRIVACY AND 
SECURITY.—In establishing the Retirement Savings 
Lost and Found under paragraph (1), the Pension 
Benefit Guaranty Corporation, in consultation with 
the Secretary of Labor, the Secretary of the Treas-
ury, and the Secretary of Commerce, shall take all 
necessary and proper precautions to ensure that in-
dividuals’ plan information maintained by the Re-
tirement Savings Lost and Found is protected and 
that persons other than the individual cannot fraud-
ulently claim the benefits to which any individual is 
entitled, and to allow any individual to opt out of in-
clusion in the Retirement Savings Lost and Found 
at the election of the individual. 
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(b) OFFICE OF THE RETIREMENT SAVINGS LOST 
AND FOUND.— 
(1) IN GENERAL.—Subtitle C of title IV of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1341 et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 4051. OFFICE OF THE RETIREMENT SAVINGS LOST 
AND FOUND. 
‘‘(a) ESTABLISHMENT; RESPONSIBILITIES
OF OF-
FICE.— 
‘‘(1) IN
GENERAL.—Not later than 2 years 
after the date of the enactment of this section, the 
Secretary of Labor, the Secretary of the Treasury, 
and the Secretary of Commerce shall establish with-
in the corporation an Office of the Retirement Sav-
ings Lost and Found (in this section referred to as 
the ‘Office’). 
‘‘(2) RESPONSIBILITIES OF OFFICE.— 
‘‘(A) IN GENERAL.—The Office shall— 
‘‘(i) carry out subsection (b) of this 
section; 
‘‘(ii) maintain the Retirement Savings 
Lost and Found established under section 
306(a) of the ‘Securing a Strong Retire-
ment Act of 2021’; and 
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‘‘(iii) perform an annual audit of plan 
information contained in the Retirement 
Savings Lost and Found and ensure that 
such information is current and accurate. 
‘‘(B) OPTION TO CONTRACT.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the date of enactment of this 
section, the corporation shall conduct an 
analysis of the cost effectiveness of con-
tracting with a third party to carry out the 
responsibilities under subparagraph (A)(iii) 
and, upon a determination that such con-
tracting would be more cost effective than 
carrying out such responsibilities within 
the Office, the corporation may enter into 
such contracts as merited by such analysis. 
‘‘(ii) REPORT.—The corporation shall 
report on the results of the analysis under 
clause (i) to the Committees on Finance 
and Health, Education, Labor, and Pen-
sions of the Senate and the Committees on 
Ways and Means and Education and 
Labor of the House of Representatives. 
‘‘(b) CERTAIN NON-RESPONSIVE PARTICIPANTS EN-
TITLED TO SMALL BENEFITS.— 
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‘‘(1) GENERAL RULE.— 
‘‘(A) TRANSFER TO THE OFFICE OF THE 
RETIREMENT SAVINGS LOST AND FOUND.—The 
administrator of a plan that is not terminated 
and to which section 401(a)(31)(B) of the In-
ternal Revenue Code of 1986 applies shall 
transfer to the Office the amount required to be 
transferred under section 401(a)(31)(B)(iv) of 
such Code for a non-responsive participant. 
‘‘(B) INFORMATION AND PAYMENT TO THE 
OFFICE.—Upon making a transfer under sub-
paragraph (A), the plan administrator shall 
provide such information and certifications as 
the Office shall specify, including with respect 
to the transferred amount and the non-respon-
sive participant. 
‘‘(C) INFORMATION REQUIREMENTS AFTER 
TRANSFER.—In the event that, after a transfer 
is made under subparagraph (A), the relevant 
non-responsive participant contacts the plan ad-
ministrator or the plan administrator discovers 
information that may assist the Office in locat-
ing the non-responsive participant, the plan ad-
ministrator shall notify and provide such infor-
mation as the Office shall specify to the Office. 
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‘‘(D) SEARCH AND PAYMENT BY THE OF-
FICE FOLLOWING TRANSFER.—The Office shall 
periodically, and upon receiving information de-
scribed in subparagraph (C), conduct a search 
for the non-responsive participant for whom the 
Office has received a transfer under subpara-
graph (A). Upon location of a non-responsive 
participant who claims benefits, the Office shall 
make a single payment to the non-responsive 
participant in an amount equal to the sum of— 
‘‘(i) the amount transferred to the Of-
fice under subparagraph (A) for such par-
ticipant; and 
‘‘(ii) the return on the investment at-
tributable to such amount under section 
4005(j)(3). 
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘non-responsive participant’ means 
a participant or beneficiary of a plan described in 
paragraph (1)(A)— 
‘‘(A) who is entitled to a benefit subject to 
a 
mandatory 
transfer 
under 
section 
401(a)(31)(B)(iii) of the Internal Revenue Code 
of 1986; and 
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‘‘(B) for whom the plan has satisfied the 
conditions in section 401(a)(31)(B)(iv) of such 
Code. 
‘‘(3) REGULATORY
AUTHORITY.—The Office 
shall prescribe such regulations as are necessary to 
carry out the purposes of this section, including 
rules relating to the amount payable to the Office 
and the amount to be paid by the Office. 
‘‘(c) INFORMATION COLLECTION.—Within such pe-
riod after the end of a plan year as the Office may by 
regulations prescribe, the administrator of a plan to which 
the vesting standards of section 203 apply shall submit 
the following information, and such other information as 
the corporation may require, to the corporation in such 
form as the corporation may require: 
‘‘(1) The information described in paragraphs 
(1) through (4) of section 6057(b) of the Internal 
Revenue Code of 1986. 
‘‘(2) The information described in subpara-
graphs (A), (B), (E), and (F) of section 6057(a)(2) 
of the Internal Revenue Code of 1986. 
‘‘(d) EFFECTIVE DATE.—The requirements of sub-
sections (b) and (c) shall apply with respect to plan years 
beginning after the second December 31 occurring after 
the date of the enactment of this section. 
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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section.’’. 
(2) ESTABLISHMENT
OF
FUND
FOR
TRANS-
FERRED
ASSETS.—Section 4005 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1305) is amended by adding at the end the fol-
lowing: 
‘‘(j)(1) A ninth fund shall be established for the pay-
ment of benefits under section 4051(b)(1)(D). 
‘‘(2) Such fund shall be credited with the appro-
priate— 
‘‘(A) amounts transferred to the Office of the 
Retirement Savings Lost and Found under section 
4051(b)(1)(A); and 
‘‘(B) earnings on investments of the fund or on 
assets credited to the fund. 
‘‘(3) Whenever the corporation determines that the 
moneys of any fund are in excess of current needs, it may 
request the investment of such amounts as it determines 
advisable by the Secretary of the Treasury in obligations 
issued or guaranteed by the United States.’’. 
(3) CONFORMING AMENDMENT.—The table of 
contents for the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1001 et seq.) is amend-
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ed by inserting after the matter relating to section 
4050 the following: 
‘‘Sec. 4051. Certain non-responsive participants entitled to small benefits.’’. 
(c) MANDATORY TRANSFERS
OF ROLLOVER DIS-
TRIBUTIONS.— 
(1) INVESTMENT OPTIONS.— 
(A) IN GENERAL.—Subparagraph (B) of 
section 404(c)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
1104(c)(3)) is amended by striking the period 
at the end and inserting ‘‘, and, to the extent 
the Secretary provides in guidance or regula-
tions issued after the enactment of the Securing 
a Strong Retirement Act of 2021, is made to— 
‘‘(i) a target date or life cycle fund 
held under such account; 
‘‘(ii) 
as 
described 
in 
section 
2550.404a–2 of title 29, Code of Federal 
Regulations, an investment product held 
under such account designed to preserve 
principal and provide a reasonable rate of 
return; 
‘‘(iii) the Office of the Retirement 
Savings Lost and Found in accordance 
with section 401(a)(31)(B)(iv) of the In-
ternal Revenue Code of 1986 and section 
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306(c)(2)(A)(ii) of the Securing a Strong 
Retirement Act of 2020; or 
‘‘(iv) such other option as the Sec-
retary may so provide.’’. 
(B) REGULATIONS.—Not later than 270 
days after the date of the enactment of this 
Act, the Secretary of Labor shall promulgate 
regulations identifying the target date or life 
cycle funds, or specifying the characteristics of 
such a fund, that will be deemed to meet the re-
quirements of section 404(c)(3)(B)(i) of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1104(c)(3)(B)), as amended 
by subparagraph (A). 
(2) EXPANSION OF CAP; AUTHORITY TO TRANS-
FER LESSER AMOUNTS.— 
(A) CAP.—Sections 401(a)(31)(B)(ii) and 
411(a)(11)(A) of the Internal Revenue Code of 
1986 and section 203(e)(1) of the Employee 
Retirement Income Security Act of 1974 are 
each amended by striking ‘‘$5,000’’ and insert-
ing ‘‘$6,000’’. 
(B) DISTRIBUTION OF LARGER AMOUNTS 
TO
INDIVIDUAL
RETIREMENT
PLANS
ONLY.— 
Section 401(a)(31)(B)(i) of such Code is 
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amended by adding at the end the following: 
‘‘The Office of the Retirement Savings Lost 
and Found established by Section 306 of the 
Securing a Strong Retirement Act shall not be 
treated as a trustee or issuer that is eligible to 
receive such distributions.’’. 
(C) 
LESSER
AMOUNTS.—Section 
401(a)(31)(B) of such Code is amended by add-
ing at the end the following new clauses: 
‘‘(iii) 
TREATMENT
OF
LESSER 
AMOUNTS.—In the case of a trust which is 
part of an eligible plan, such trust shall 
not be a qualified trust under this section 
unless such plan provides that, if a partici-
pant in the plan separates from the service 
covered by the plan and the nonforfeitable 
accrued benefit described in clause (ii) is 
not in excess of $1,000, the plan adminis-
trator shall (either separately or as part of 
the notice under section 402(f)) notify the 
participant that the participant is entitled 
to such benefit or attempt to pay the ben-
efit directly to the participant. 
‘‘(iv) TRANSFERS
TO
RETIREMENT 
SAVINGS
LOST
AND
FOUND.—If, after a 
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plan administrator takes the action re-
quired under clause (iii), the participant 
does not— 
‘‘(I) within 6 months of the noti-
fication under such clause, make an 
election under subparagraph (A) or 
elect to receive a distribution of the 
benefit directly, or 
‘‘(II) accept any direct payment 
made under such clause within 6 
months of the attempted payment, 
the plan administrator shall transfer the 
amount of such benefit to the Office of the 
Retirement Savings Lost and Found in ac-
cordance with section 4051(b) of the Em-
ployee Retirement Income Security Act of 
1974. 
‘‘(v) INCOME
TAX
TREATMENT
OF 
TRANSFERS
TO
RETIREMENT
SAVINGS 
LOST AND FOUND.—For purposes of deter-
mining the income tax treatment of trans-
fers to the Office of the Retirement Sav-
ings Lost and Found under clause (iv)— 
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‘‘(I) such a transfer shall be 
treated as a transfer to an individual 
retirement plan under clause (i), and 
‘‘(II) the distribution of such 
amounts by the Office of the Retire-
ment Savings Lost and Found shall 
be treated as a distribution from an 
individual retirement plan.’’. 
(D) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to vested 
benefits with respect to participants who sepa-
rate from service connected to the plan in plan 
years beginning after the second December 31 
occurring after the date of the enactment of 
this Act. 
(d) BETTER REPORTING FOR MANDATORY TRANS-
FERS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
6057(a) of the Internal Revenue Code of 1986 is 
amended— 
(A) in subparagraph (C)— 
(i) by striking ‘‘during such plan 
year’’ in clause (i) and inserting ‘‘during 
the plan year immediately preceding such 
plan year’’; 
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(ii) by adding ‘‘and’’ at the end of 
clause (i); and 
(iii) by striking clause (iii); 
(B) by redesignating subparagraph (E) as 
subparagraph (G); 
(C) by striking ‘‘and’’ at the end of sub-
paragraph (D); and 
(D) by inserting after subparagraph (D) 
the following new subparagraphs: 
‘‘(E) the name and taxpayer identifying 
number of each participant or former partici-
pant in the plan— 
‘‘(i) who, during the current plan year 
or any previous plan year, was reported 
under subparagraph (C), and with respect 
to whom the benefits described in subpara-
graph (C)(ii) were fully paid during the 
plan year, 
‘‘(ii) with respect to whom any 
amount was distributed under section 
401(a)(31)(B) during the plan year, or 
‘‘(iii) with respect to whom a deferred 
annuity contract was distributed during 
the plan year, 
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‘‘(F) in the case of a participant or former 
participant to whom subparagraph (E) ap-
plies— 
‘‘(i) in the case of a participant de-
scribed in clause (ii) thereof, the name and 
address of the designated trustee or issuer 
described in section 401(a)(31)(B)(i) and 
the account number of the individual re-
tirement plan to which the amount was 
distributed, and 
‘‘(ii) in the case of a participant de-
scribed in clause (iii) thereof, the name 
and address of the issuer of such annuity 
contract and the contract or certificate 
number, and’’. 
(2) RULES RELATING TO DIRECT TRUSTEE-TO- 
TRUSTEE TRANSFERS.— 
(A) IN GENERAL.—Paragraph (6) of sec-
tion 402(e) of such Code is amended— 
(i) by striking ‘‘TRANSFERS.—Any’’ 
and inserting ‘‘TRANSFERS.— 
‘‘(A) IN GENERAL.—Any’’; and 
(ii) by adding at the end the following 
new subparagraph: 
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‘‘(B) NOTIFICATION OF TRUSTEE.—In the 
case 
of 
a 
distribution 
under 
section 
401(a)(31)(B), the plan administrator shall no-
tify the designated trustee or issuer described 
in clause (i) thereof that the transfer is a man-
datory distribution required by such section.’’. 
(B) PENALTY.—Subsection (i) of section 
6652 of such Code is amended— 
(i) by striking ‘‘TO RECIPIENTS’’ in 
the heading and inserting ‘‘OR NOTIFICA-
TION’’; 
(ii) by striking ‘‘402(f),’’ and insert-
ing ‘‘402(f) or a notification as required by 
section 402(e)(6)(B),’’; and 
(iii) by striking ‘‘such written expla-
nation’’ and inserting ‘‘such written expla-
nation or notification’’. 
(C) REPORTS.—Subsection (i) of section 
408 of such Code is amended— 
(i) by redesignating subparagraphs 
(A) and (B) of paragraph (2) as clauses (i) 
and (ii), respectively, and by moving such 
clauses 2 ems to the right; 
(ii) by redesignating paragraphs (1) 
and (2) as subparagraphs (A) and (B), re-
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spectively, and by moving such subpara-
graphs 2 ems to the right; and 
(iii) by striking ‘‘as the Secretary pre-
scribes’’ in subparagraph (B)(ii), as so re-
designated, and all that follows through ‘‘a 
simple retirement account’’ and inserting 
‘‘as the Secretary prescribes. 
‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 
case of a simple retirement account’’; 
(iv) 
by 
striking 
‘‘REPORTS.—The 
trustee of’’ and inserting ‘‘REPORTS.— 
‘‘(1) IN GENERAL.—The trustee of’’; 
(v) by striking ‘‘under paragraph (2)’’ 
in paragraph (3), as redesignated by clause 
(iii), and inserting ‘‘under paragraph 
(1)(B)’’; and 
(vi) by inserting after paragraph 
(1)(B)(ii), as redesignated by the pre-
ceding clauses, the following new para-
graph: 
‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 
of an account, contract, or annuity to which a trans-
fer under section 401(a)(31)(B) is made (including 
a transfer from the individual retirement plan to 
which the original transfer under such section was 
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made to another individual retirement plan), the re-
port required by this subsection for the year of the 
transfer and any year in which the information pre-
viously reported in subparagraph (B) changes 
shall— 
‘‘(A) identify such transfer as a mandatory 
distribution required by such section, 
‘‘(B) include the name, address, and tax-
payer identifying number of the trustee or 
issuer of the individual retirement plan to which 
the amount is transferred, and 
‘‘(C) be filed with the Pension Benefit 
Guaranty Corporation as well as with the Sec-
retary.’’. 
(3) NOTIFICATION OF PARTICIPANTS UPON SEP-
ARATION.—Subsection (e) of section 6057 of such 
Code is amended by inserting ‘‘, and, with respect 
to any benefit of the individual subject to section 
401(a)(31)(B), a notice of availability of, and the 
contact information for, the Retirement Savings 
Lost and Found established under section 306(a)(1) 
of the Securing a Strong Retirement Act of 2021’’ 
before the period at the end of the second sentence. 
(4) EFFECTIVE DATE.—The amendments made 
by this paragraph shall apply to distributions made 
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in, and returns and reports relating to, years begin-
ning after the second December 31 occurring after 
the date of the enactment of this Act. 
(e) REQUIREMENT OF ELECTRONIC FILING.— 
(1) IN
GENERAL.—Paragraph (2) of section 
6011(e) of the Internal Revenue Code of 1986 is 
amended— 
(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively, and 
by moving such clauses 2 ems to the right; 
(B) by striking ‘‘REGULATIONS.—In pre-
scribing’’ and inserting ‘‘REGULATIONS.— 
‘‘(A) IN GENERAL.—In prescribing’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) EXCEPTIONS.—Notwithstanding sub-
paragraph (A), the Secretary shall require re-
turns or reports required under— 
‘‘(i) sections 6057, 6058, and 6059, 
and 
‘‘(ii) sections 408(i), 6041, and 6047 
to the extent such return or report relates 
to the tax treatment of a distribution from 
a plan, account, contract, or annuity, 
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to be filed on magnetic media, but only with re-
spect to persons who are required to file at 
least 50 returns during the calendar year which 
includes the first day of the plan year to which 
such returns or reports relate.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this paragraph shall apply to returns and reports 
relating to years beginning after the second Decem-
ber 31 occurring after the date of the enactment of 
this Act. 
(f) RULEMAKING TO CLARIFY FIDUCIARY DUTIES.— 
(1) REQUEST
FOR
INFORMATION.—Not later 
than 1 year after the date of enactment of this Act, 
the Secretary of Labor, in consultation with the Sec-
retary of the Treasury, shall issue a request for in-
formation relating to the rulemaking described in 
paragraph (2). 
(2) ISSUANCE OF FINAL RULE.—Not later than 
3 years after such date, the Secretary of Labor, in 
consultation with the Secretary of the Treasury, 
shall issue a final rule that defines the following: 
(A) The steps a plan sponsor must take to 
locate a deferred vested participant in order to 
meet its fiduciary duty under section 404 of the 
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Employee Retirement Income Security Act of 
1974 with respect to locating that participant. 
(B) The ongoing practices and procedures 
a plan sponsor must institute in order to meet 
such fiduciary duty with respect to maintaining 
up-to-date contact information on deferred vest-
ed participants. 
SEC. 307. EXPANSION OF EMPLOYEE PLANS COMPLIANCE 
RESOLUTION SYSTEM. 
(a) IN GENERAL.—Except as otherwise provided in 
the Internal Revenue Code of 1986 or regulations pre-
scribed by the Secretary of the Treasury or the Secretary’s 
delegate (referred to in this section as the ‘‘Secretary’’), 
any eligible inadvertent failure to comply with the rules 
applicable under section 401(a), 403(a), 403(b), 408(p), 
or 408(k) of such Code may be self-corrected under the 
Employee Plans Compliance Resolution System (as de-
scribed in Revenue Procedure 2019–19 or any successor 
guidance and hereafter in this section referred to as the 
‘‘EPCRS’’), except to the extent that such failure was 
identified by the Secretary prior to any actions which dem-
onstrate a commitment to implement a self-correction. 
Revenue Procedure 2019–19 is deemed amended as of the 
date of the enactment of this Act to provide that the cor-
rection period under section 9.02 of such Revenue Proce-
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100 
dure (or any successor guidance) for an eligible inad-
vertent failure, except as otherwise provided under such 
Code or in regulations prescribed by the Secretary, is in-
definite and has no last day, other than with respect to 
failures identified by the Secretary prior to any self-correc-
tion as described in the preceding sentence. 
(b) LOAN ERRORS.—In the case of an eligible inad-
vertent failure relating to a loan from a plan to a partici-
pant— 
(1) such failure may be self-corrected under 
subsection (a) according to the rules of section 6.07 
of Revenue Procedure 2019–19 (or any successor 
guidance), including the provisions related to wheth-
er a deemed distribution must be reported on Form 
1099–R, and 
(2) the Secretary of Labor shall treat any such 
failure which is so self-corrected under subsection 
(a) as meeting the requirements of the Voluntary Fi-
duciary Correction Program of the Department of 
Labor if, with respect to the violation of the fidu-
ciary standards of the Employee Retirement Income 
Security Act of 1974, there is a similar loan error 
eligible for correction under EPCRS and the loan 
error is corrected in such manner. 
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101 
(c) EPCRS FOR IRAS.—The Secretary shall expand 
the EPCRS to allow custodians of individual retirement 
plans (as defined in section 7701(a)(37) of the Internal 
Revenue Code of 1986) to address eligible inadvertent fail-
ures with respect to an individual retirement plan (as so 
defined), including (but not limited to)— 
(1) waivers of the excise tax which would other-
wise apply under section 4974 of the Internal Rev-
enue Code of 1986, 
(2) under the self-correction component of the 
EPCRS, waivers of the 60-day deadline for a roll-
over where the deadline is missed for reasons beyond 
the reasonable control of the account owner, and 
(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. 
(d) ADDITIONAL SAFE HARBORS.—The Secretary 
shall expand the EPCRS to provide additional safe harbor 
means of correcting eligible inadvertent failures described 
in subsection (a), including safe harbor means of calcu-
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102 
lating the earnings which must be restored to a plan in 
cases where plan assets have been depleted by reason of 
an eligible inadvertent failure. 
(e) ELIGIBLE INADVERTENT FAILURE.—For pur-
poses of this section— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘‘eligible inadvertent failure’’ 
means a failure that occurs despite the existence of 
practices and procedures which— 
(A) satisfy the standards set forth in sec-
tion 4.04 of Revenue Procedure 2019–19 (or 
any successor guidance), or 
(B) satisfy similar standards in the case of 
an individual retirement plan. 
(2) EXCEPTION.—The term ‘‘eligible inad-
vertent failure’’ shall not include any failure which 
is egregious, relates to the diversion or misuse of 
plan assets, or is directly or indirectly related to an 
abusive tax avoidance transaction. 
(f) APPLICATION OF CERTAIN REQUIREMENTS FOR 
CORRECTING ERRORS.—This section shall not apply to 
any failure unless the correction of such failure under this 
section is made in conformity with the general principles 
that apply to corrections of such failures under the Inter-
nal Revenue Code of 1986, including regulations or other 
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guidance issued thereunder and including those principles 
and corrections set forth in Revenue Procedure 2019–19 
(or any successor guidance).’’ 
SEC. 308. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE-
QUIREMENT FOR GOVERNMENTAL SECTION 
457(B) PLANS. 
(a) IN GENERAL.—Paragraph (4) of section 457(b) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(4) which provides that compensation— 
‘‘(A) in the case of an eligible employer de-
scribed in subsection (e)(1)(A), will be deferred 
only if an agreement providing for such deferral 
has been entered into before the compensation 
is currently available to the individual, and 
‘‘(B) in any other case, will be deferred for 
any calendar month only if an agreement pro-
viding for such deferral has been entered into 
before the beginning of such month,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 309. ONE-TIME ELECTION FOR QUALIFIED CHARI-
TABLE DISTRIBUTION TO SPLIT-INTEREST 
ENTITY; INCREASE IN QUALIFIED CHARI-
TABLE DISTRIBUTION LIMITATION. 
(a) ONE-TIME ELECTION FOR QUALIFIED CHARI-
TABLE DISTRIBUTION
TO SPLIT-INTEREST ENTITY.— 
Section 408(d)(8) of such Code is amended by adding at 
the end the following new subparagraph: 
‘‘(F) ONE-TIME ELECTION FOR QUALIFIED 
CHARITABLE DISTRIBUTION TO SPLIT-INTEREST 
ENTITY.— 
‘‘(i) IN
GENERAL.—A taxpayer may 
for a taxable year elect under this subpara-
graph to treat as meeting the requirement 
of subparagraph (B)(i) any distribution 
from an individual retirement account 
which is made directly by the trustee to a 
split-interest entity, but only if— 
‘‘(I) an election is not in effect 
under this subparagraph for a pre-
ceding taxable year, 
‘‘(II) the aggregate amount of 
distributions of the taxpayer with re-
spect to which an election under this 
subparagraph is made does not exceed 
$50,000, and 
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‘‘(III) such distribution meets the 
requirements of clauses (iii) and (iv). 
‘‘(ii) SPLIT-INTEREST
ENTITY.—For 
purposes of this subparagraph, the term 
‘split-interest entity’ means— 
‘‘(I) a charitable remainder annu-
ity trust (as defined in section 
664(d)(1)), but only if such trust is 
funded exclusively by qualified chari-
table distributions, 
‘‘(II) 
a 
charitable 
remainder 
unitrust 
(as 
defined 
in 
section 
664(d)(2)), but only if such unitrust 
is funded exclusively by qualified char-
itable distributions, or 
‘‘(III) a charitable gift annuity 
(as defined in section 501(m)(5)), but 
only if such annuity is funded exclu-
sively by qualified charitable distribu-
tions and commences fixed payments 
of 5 percent or greater not later than 
1 year from the date of funding. 
‘‘(iii) CONTRIBUTIONS MUST BE OTH-
ERWISE
DEDUCTIBLE.—A 
distribution 
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meets the requirement of this clause only 
if— 
‘‘(I) in the case of a distribution 
to a charitable remainder annuity 
trust or a charitable remainder uni-
trust, a deduction for the entire value 
of the remainder interest in the dis-
tribution for the benefit of a specified 
charitable organization would be al-
lowable under section 170 (determined 
without regard to subsection (b) 
thereof and this paragraph), and 
‘‘(II) in the case of a charitable 
gift annuity, a deduction in an 
amount equal to the amount of the 
distribution reduced by the value of 
the annuity described in section 
501(m)(5)(B) 
would 
be 
allowable 
under section 170 (determined with-
out regard to subsection (b) thereof 
and this paragraph). 
‘‘(iv) LIMITATION ON INCOME INTER-
ESTS.—A distribution meets the require-
ments of this clause only if— 
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‘‘(I) no person holds an income 
interest in the split-interest entity 
other than the individual for whose 
benefit such account is maintained, 
the spouse of such individual, or both, 
and 
‘‘(II) the income interest in the 
split-interest entity is nonassignable. 
‘‘(v) SPECIAL RULES.— 
‘‘(I) CHARITABLE
REMAINDER 
TRUSTS.—Notwithstanding 
section 
664(b), distributions made from a 
trust described in subclause (I) or (II) 
of clause (ii) shall be treated as ordi-
nary income in the hands of the bene-
ficiary to whom the annuity described 
in section 664(d)(1)(A) or the pay-
ment 
described 
in 
section 
664(d)(2)(A) is paid. 
‘‘(II) CHARITABLE
GIFT
ANNU-
ITIES.—Qualified charitable distribu-
tions made to fund a charitable gift 
annuity shall not be treated as an in-
vestment in the contract for purposes 
of section 72(c).’’. 
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(b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 
such Code, as amended by subsection (a), is amended by 
adding at the end the following new subparagraph: 
‘‘(G) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
taxable year beginning after 2021, each of 
the dollar amounts in subparagraphs (A) 
and (F) 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 in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2020’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
‘‘(ii) 
ROUNDING.—If 
any 
dollar 
amount increased under clause (i) is not a 
multiple of $1,000, such dollar amount 
shall be rounded to the nearest multiple of 
$1,000.’’. 
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(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made in taxable 
years ending after the date of the enactment of this Act. 
SEC. 310. DISTRIBUTIONS TO FIREFIGHTERS. 
(a) IN GENERAL.—Subparagraph (A) of section 
72(t)(10) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘414(d))’’ and inserting ‘‘414(d)) or a dis-
tribution from a plan described in clause (iii), (iv), or (vi) 
of section 402(c)(8)(B) to an employee who provides fire-
fighting services’’. 
(b) CONFORMING AMENDMENT.—The heading of 
paragraph (10) of section 72(t) of such Code is amend-
ed— 
(1) by striking ‘‘QUALIFIED’’, and 
(2) by striking ‘‘IN GOVERNMENTAL PLANS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2021. 
SEC. 311. EXCLUSION OF CERTAIN DISABILITY-RELATED 
FIRST RESPONDER RETIREMENT PAYMENTS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139B the following new section: 
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110 
‘‘SEC. 139C. CERTAIN DISABILITY-RELATED FIRST RE-
SPONDER RETIREMENT PAYMENTS. 
‘‘(a) IN GENERAL.—In the case of an individual who 
receives qualified first responder retirement payments for 
any taxable year, gross income shall not include so much 
of such payments as do not exceed the annualized exclud-
able disability amount with respect to such individual. 
‘‘(b) QUALIFIED FIRST RESPONDER RETIREMENT 
PAYMENTS.—For purposes of this section, the term ‘quali-
fied first responder retirement payments’ means, with re-
spect to any taxable year, any pension or annuity which 
but for this section would be includible in gross income 
for such taxable year and which is received— 
‘‘(1) from a plan described in clause (iii), (iv), 
(v), or (vi) of section 402(c)(8)(B), and 
‘‘(2) in connection with such individual’s quali-
fied first responder service. 
‘‘(c) 
ANNUALIZED
EXCLUDABLE
DISABILITY 
AMOUNT.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘annualized ex-
cludable disability amount’ means, with respect to 
any individual, the service-connected excludable dis-
ability amounts which are properly attributable to 
the 12-month period immediately preceding the date 
on which such individual attains retirement age. 
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‘‘(2) SERVICE-CONNECTED
EXCLUDABLE
DIS-
ABILITY AMOUNT.—The term ‘service-connected ex-
cludable disability amount’ means periodic payments 
received by an individual which— 
‘‘(A) are not includible in such individual’s 
gross income under section 104(a)(1), 
‘‘(B) are received in connection with such 
individual’s qualified first responder service, 
and 
‘‘(C) terminate when such individual at-
tains retirement age. 
‘‘(3) SPECIAL RULE FOR PARTIAL-YEAR PAY-
MENTS.—In the case of an individual who only re-
ceives 
service-connected 
excludable 
disability 
amounts properly attributable to a portion of the 12- 
month period described in paragraph (1), such para-
graph shall be applied by multiplying such amounts 
by the ratio of 365 to the number of days in such 
period to which such amounts were properly attrib-
utable. 
‘‘(d) QUALIFIED FIRST RESPONDER SERVICE.—For 
purposes of this section, the term ‘qualified first responder 
service’ means service as a law enforcement officer, fire-
fighter, paramedic, or emergency medical technician.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139B the following new item: 
‘‘Sec. 139C. Certain disability-related first responder retirement payments.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts received with respect 
to taxable years beginning after December 31, 2026. 
SEC. 312. INDIVIDUAL RETIREMENT PLAN STATUTE OF LIM-
ITATIONS 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 
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113 
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 
shall be deemed to begin on the date by 
which the return would have been required 
to be filed (excluding any extension there-
of).’’. 
SEC. 313. REQUIREMENT TO PROVIDE PAPER STATEMENTS 
IN CERTAIN CASES. 
(a) IN GENERAL.—Section 105(a)(2) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1025(a)(2)) is amended— 
(1) in subparagraph (A)(iv), by inserting ‘‘sub-
ject to subparagraph (E),’’ before ‘‘may be deliv-
ered’’; and 
(2) by adding at the end the following: 
‘‘(E) 
PROVISION
OF
PAPER
STATE-
MENTS.—With respect to at least 1 pension 
benefit statement furnished for a calendar year 
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with respect to an individual account plan 
under paragraph (1)(A), and with respect to at 
least 1 pension benefit statement furnished 
every 3 calendar years with respect to a defined 
benefit plan under paragraph (1)(B), such 
statement shall be furnished on paper in writ-
ten form except— 
‘‘(i) in the case of a plan that fur-
nishes such statement in accordance with 
section 2520.104b–1(c) of title 29, Code of 
Federal Regulations; or 
‘‘(ii) in the case of a plan that permits 
a participant or beneficiary to request that 
the statements referred to in the matter 
preceding clause (i) be furnished by elec-
tronic delivery, if the participant or bene-
ficiary requests that such statements be 
delivered electronically and the statements 
are so delivered.’’. 
(b) IMPLEMENTATION.— 
(1) IN
GENERAL.—The Secretary of Labor 
shall, not later than December 31, 2021, update sec-
tion 2520.104b–1(c) of title 29, Code of Federal 
Regulations, to provide that a plan may furnish the 
statements referred to in subparagraph (E) of sec-
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tion 105(a)(2) by electronic delivery only if, in addi-
tion to meeting the other requirements under the 
regulations— 
(A) such plan furnishes each participant or 
beneficiary, including participants described in 
subparagraph (B), a one-time initial notice on 
paper in written form, prior to the electronic 
delivery of any pension benefit statement, of 
their right to request that all documents re-
quired to be disclosed under title I of the Em-
ployee Retirement Income Security Act of 1974 
be furnished on paper in written form; and 
(B) such plan furnishes each participant 
who is separated from service with at least 1 
pension benefit statement on paper in written 
form for each calendar year, unless, on election 
of the participant, the participant receives such 
statements electronically. 
(2) OTHER
GUIDANCE.—In implementing the 
amendment made by subsection (a) with respect to 
a plan that discloses required documents or state-
ments electronically, in accordance with applicable 
guidance governing electronic disclosure by the De-
partment of Labor (with the exception of section 
2520.104b–1(c) of title 29, Code of Federal Regula-
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tions), the Secretary of Labor shall, not later than 
December 31, 2021, update such guidance to the ex-
tent necessary to ensure that— 
(A) a participant or beneficiary under such 
a plan is permitted the opportunity to request 
that any disclosure required to be delivered on 
paper under applicable guidance by the Depart-
ment of Labor shall be furnished by electronic 
delivery; 
(B) each paper statement furnished under 
such a plan pursuant to the amendment shall 
include— 
(i) an explanation of how to request 
that all such statements, and any other 
document required to be disclosed under 
title I of the Employee Retirement Income 
Security Act of 1974, be furnished by elec-
tronic delivery; and 
(ii) contact information for the plan 
sponsor, including a telephone number; 
(C) the plan may not charge any fee to a 
participant or beneficiary for the delivery of any 
paper statements; 
(D) each paper pension benefit statement 
shall identify each plan document required to be 
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disclosed and shall include information about 
how a participant or beneficiary may access 
each such document; 
(E) each document required to be disclosed 
that is furnished by electronic delivery under 
such a plan shall include an explanation of how 
to request that all such documents be furnished 
on paper in written form; and 
(F) a plan is permitted to furnish a dupli-
cate electronic statement in any case in which 
the plan furnishes a paper pension benefit 
statement. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to plan years begin-
ning after December 31, 2022. 
SEC. 314. SEPARATE APPLICATION OF TOP HEAVY RULES 
TO DEFINED CONTRIBUTION PLANS COV-
ERING EXCLUDIBLE EMPLOYEES. 
(a) IN GENERAL.—Section 416(c)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(C) SEPARATE APPLICATION TO EMPLOY-
EES NOT MEETING AGE AND SERVICE REQUIRE-
MENTS.—If employees not meeting the age or 
service requirements of section 410(a)(1) (with-
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out regard to subparagraph (B) thereof) are 
covered under a plan of the employer which 
meets the requirements of subparagraphs (A) 
and (B) separately with respect to such employ-
ees, such employees may be excluded from con-
sideration in determining whether any plan of 
the employer meets the requirements of sub-
paragraphs (A) and (B).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to plan years beginning after 
the date of the enactment of this Act. 
SEC. 315. REPAYMENT OF QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION LIMITED TO 3 YEARS. 
(a) IN GENERAL.—Section 72(t)(2)(H)(v)(I) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘may make’’ and inserting ‘‘may, at any time during the 
3-year period beginning on the day after the date on which 
such distribution was received, make’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the enact-
ment of section 113 of the Setting Every Community Up 
for Retirement Enhancement Act of 2019. 
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119 
SEC. 316. EMPLOYER MAY RELY ON EMPLOYEE CERTI-
FYING THAT DEEMED HARDSHIP DISTRIBU-
TION CONDITIONS ARE MET. 
(a) CASH OR DEFERRED ARRANGEMENTS.—Section 
401(k)(14) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) EMPLOYEE CERTIFICATION.—In de-
termining whether a distribution is upon the 
hardship of an employee, the administrator of 
the plan may rely on a certification by the em-
ployee that the distribution is on account of a 
financial need of a type that is deemed in regu-
lations prescribed by the Secretary to be an im-
mediate and heavy financial need and that such 
distribution is not in excess of the amount re-
quired to satisfy such financial need.’’. 
(b) 403(b) PLANS.— 
(1) CUSTODIAL ACCOUNTS.—Section 403(b)(7) 
of such Code is amended by adding at the end the 
following new subparagraph: 
‘‘(D) EMPLOYEE CERTIFICATION.—In de-
termining whether a distribution is upon the fi-
nancial hardship of an employee, the adminis-
trator of the plan may rely on a certification by 
the employee that the distribution is on account 
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of a financial need of a type that is deemed in 
regulations prescribed by the Secretary to be an 
immediate and heavy financial need and that 
such distribution is not in excess of the amount 
required to satisfy such financial need.’’. 
(2) ANNUITY CONTRACTS.—Section 403(b)(11) 
is amended by adding at the end the following: ‘‘In 
determining whether a distribution is upon hardship 
of an employee, the administrator of the plan may 
rely on a certification by the employee that the dis-
tribution is on account of a financial need of a type 
that is deemed in regulations prescribed by the Sec-
retary to be an immediate and heavy financial need 
and that such distribution is not in excess of the 
amount required to satisfy such financial need.’’. 
(c) 457(b) PLAN.—Section 457(d) of such Code is 
amended by adding at the end the following new para-
graph: 
‘‘(4) PARTICIPANT CERTIFICATION.—In deter-
mining whether a distribution of a participant is 
made when the participant is faced with an unfore-
seeable emergency, the administrator of a plan 
maintained by an eligible employer described in sub-
section (e)(1)(A) may rely on a certification by the 
participant that the distribution is made when the 
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participant is faced with unforeseeable emergency of 
a type that is specifically described in regulations 
prescribed by the Secretary as an unforeseeable 
emergency and that the distribution is not in excess 
of the amount reasonably necessary to satisfy the 
emergency need.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2021. 
SEC. 317. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
DOMESTIC ABUSE. 
(a) IN GENERAL.—Section 72(t)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(I) DISTRIBUTIONS
FROM
RETIREMENT 
PLAN IN CASE OF DOMESTIC ABUSE.— 
‘‘(i) IN GENERAL.—Any eligible dis-
tribution to a domestic abuse victim. 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as an eligi-
ble distribution to a domestic abuse victim 
by any individual shall not exceed an 
amount equal to the lesser of— 
‘‘(I) $10,000, or 
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‘‘(II) 50 percent of the present 
value of the nonforfeitable accrued 
benefit of the employee under the 
plan. 
‘‘(iii) ELIGIBLE DISTRIBUTION TO A 
DOMESTIC
ABUSE
VICTIM.—For purposes 
of this subparagraph— 
‘‘(I) IN
GENERAL.—A distribu-
tion shall be treated as an eligible dis-
tribution to a domestic abuse victim if 
such distribution is from an applicable 
eligible retirement plan to an indi-
vidual and made during the 1-year pe-
riod beginning on any date on which 
the individual is a victim of domestic 
abuse by a spouse or domestic part-
ner. 
‘‘(II) DOMESTIC
ABUSE.—The 
term ‘domestic abuse’ means physical, 
psychological, sexual, emotional, or 
economic abuse, including efforts to 
control, isolate, humiliate, or intimi-
date the victim, or to undermine the 
victim’s ability to reason independ-
ently, including by means of abuse of 
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123 
the victim’s child or another family 
member living in the household. 
‘‘(iv) TREATMENT OF PLAN DISTRIBU-
TIONS.— 
‘‘(I) IN GENERAL.—If a distribu-
tion to an individual would (without 
regard to clause (ii)) be an eligible 
distribution to a domestic abuse vic-
tim, a plan shall not be treated as 
failing to meet any requirement of 
this title merely because the plan 
treats the distribution as an eligible 
distribution to a domestic abuse vic-
tim, unless the aggregate amount of 
such distributions from all plans 
maintained by the employer (and any 
member of any controlled group which 
includes the employer) to such indi-
vidual exceeds the limitation under 
clause (ii). 
‘‘(II) CONTROLLED GROUP.—For 
purposes of subclause (I), the term 
‘controlled group’ means any group 
treated as a single employer under 
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124 
subsection (b), (c), (m), or (o) of sec-
tion 414. 
‘‘(v) AMOUNT DISTRIBUTED MAY BE 
REPAID.— 
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a distribution de-
scribed in clause (i) may, at any time 
during the 3-year period beginning on 
the day after the date on which such 
distribution was received, make one or 
more contributions in an aggregate 
amount not to exceed the amount of 
such distribution to an applicable eli-
gible retirement plan of which such 
individual is a beneficiary and to 
which a rollover contribution of such 
distribution could be made under sec-
tion 402(c), 403(a)(4), 403(b)(8), 
408(d)(3), or 457(e)(16), as the case 
may be. 
‘‘(II) LIMITATION ON CONTRIBU-
TIONS TO APPLICABLE ELIGIBLE RE-
TIREMENT
PLANS
OTHER
THAN 
IRAs.—The aggregate amount of con-
tributions made by an individual 
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125 
under subclause (I) to any applicable 
eligible retirement plan which is not 
an individual retirement plan shall not 
exceed the aggregate amount of eligi-
ble distributions to a domestic abuse 
victim which are made from such plan 
to such individual. Subclause (I) shall 
not apply to contributions to any ap-
plicable eligible retirement plan which 
is not an individual retirement plan 
unless the individual is eligible to 
make contributions (other than those 
described in subclause (I)) to such ap-
plicable eligible retirement plan. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS OF DISTRIBUTIONS FROM AP-
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAS.—If a con-
tribution is made under subclause (I) 
with respect to an eligible distribution 
to a domestic abuse victim from an 
applicable eligible retirement plan 
other than an individual retirement 
plan, then the taxpayer shall, to the 
extent of the amount of the contribu-
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126 
tion, be treated as having received 
such distribution in an eligible rollover 
distribution (as defined in section 
402(c)(4)) and as having transferred 
the amount to the applicable eligible 
retirement plan in a direct trustee to 
trustee transfer within 60 days of the 
distribution. 
‘‘(IV) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—If a contribution is made 
under subclause (I) with respect to an 
eligible distribution to a domestic 
abuse victim from an individual retire-
ment plan, then, to the extent of the 
amount of the contribution, such dis-
tribution shall be treated as a dis-
tribution 
described 
in 
section 
408(d)(3) and as having been trans-
ferred to the applicable eligible retire-
ment plan in a direct trustee to trust-
ee transfer within 60 days of the dis-
tribution. 
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127 
‘‘(vi) 
DEFINITION
AND
SPECIAL 
RULES.—For purposes of this subpara-
graph: 
‘‘(I) APPLICABLE ELIGIBLE RE-
TIREMENT PLAN.—The term ‘applica-
ble eligible retirement plan’ means an 
eligible retirement plan (as defined in 
section 402(c)(8)(B)) other than a de-
fined benefit plan. 
‘‘(II) EXEMPTION OF DISTRIBU-
TIONS
FROM
TRUSTEE
TO
TRUSTEE 
TRANSFER
AND
WITHHOLDING 
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405, an eli-
gible distribution to a domestic abuse 
victim shall not be treated as an eligi-
ble rollover distribution. 
‘‘(III) DISTRIBUTIONS TREATED 
AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS; SELF-CERTIFICATION.— 
Any distribution which the employee 
or participant certifies as being an eli-
gible distribution to a domestic abuse 
victim shall be treated as meeting the 
requirements 
of 
sections 
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128 
401(k)(2)(B)(i), 
403(b)(7)(A)(i), 
403(b)(11), and 457(d)(1)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 318. REFORM OF FAMILY ATTRIBUTION RULE. 
(a) IN GENERAL.—Section 414 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘For purposes of’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—For purposes of’’, and 
(B) by adding at the end the following new 
paragraphs: 
‘‘(2) SPECIAL
RULES
FOR
APPLYING
FAMILY 
ATTRIBUTION.—For purposes of applying the attri-
bution rules under section 1563 with respect to 
paragraph (1), the following rules apply: 
‘‘(A) Community property laws shall be 
disregarded for purposes of determining owner-
ship. 
‘‘(B) Except as provided by the Secretary, 
stock of an individual not attributed under sec-
tion 1563(e)(5) to such individual’s spouse shall 
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129 
not be attributed to such spouse by reason of 
1563(e)(6)(A). 
‘‘(C) Except as provided by the Secretary, 
in the case of stock in different corporations 
that is attributed to a child under section 
1563(e)(6)(A) from each parent, and is not at-
tributed to such parents as spouses under sec-
tion 1563(e)(5), such attribution to the child 
shall not by itself result in such corporations 
being members of the same controlled group. 
‘‘(3) PLAN SHALL NOT FAIL TO BE TREATED AS 
SATISFYING THIS SECTION.—If application of para-
graph (2) causes two or more entities to be a con-
trolled group, or an affiliated service group, or to no 
longer be in a controlled group or an affiliated serv-
ice group, such change shall be treated as a trans-
action to which section 410(b)(6)(C) applies.’’, and 
(2) in subsection (m)(6)(B), by striking ‘‘apply’’ 
and inserting ‘‘apply, except that community prop-
erty laws shall be disregarded for purposes of deter-
mining ownership’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning on or after 
the date of the enactment of this section. 
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130 
SEC. 319. AMENDMENTS TO INCREASE BENEFIT ACCRUALS 
UNDER PLAN FOR PREVIOUS PLAN YEAR AL-
LOWED UNTIL EMPLOYER TAX RETURN DUE 
DATE. 
(a) IN GENERAL.—Section 401(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(3) RETROACTIVE PLAN AMENDMENTS THAT 
INCREASE BENEFIT ACCRUALS.—If— 
‘‘(A) an employer amends a stock bonus, 
pension, profit-sharing, or annuity plan to in-
crease benefits accrued under the plan effective 
for the preceding plan year (other than increas-
ing the amount of matching contributions (as 
defined in subsection (m)(4)(A))), 
‘‘(B) such amendment would not otherwise 
cause the plan to fail to meet any of the re-
quirements of this subchapter, and 
‘‘(C) such amendment is adopted before 
the time prescribed by law for filing the return 
of the employer for a taxable year (including 
extensions thereof) during which such amend-
ment is effective, 
the employer may elect to treat such amendment as 
having been adopted as of the last day of the plan 
year in which the amendment is effective.’’. 
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131 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2022. 
SEC. 320. RETROACTIVE FIRST YEAR ELECTIVE DEFER-
RALS FOR SOLE PROPRIETORS. 
(a) IN GENERAL.—Section 401(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: ‘‘In the case of an individual who owns the 
entire interest in an unincorporated trade or business, and 
who is the only employee of such trade or business, any 
elective deferral (as defined in section 402(g)(3)) under 
a qualified cash or deferred arrangement to which the pre-
ceding sentence applies which is made by such individual 
before the time for filing the return of such individual for 
the taxable year (determined without regard to any exten-
sions) shall be treated as having been made before the end 
of the plan’s first plan year.’’. 
(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. 321. LIMITING CESSATION OF IRA TREATMENT TO 
PORTION OF ACCOUNT INVOLVED IN A PRO-
HIBITED TRANSACTION. 
(a) IN GENERAL.—Section 408(e)(2)(A) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘such 
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132 
account ceases to be an individual retirement account’’ 
and inserting the following: ‘‘the portion of such account 
which is used in such transaction shall be treated as dis-
tributed to the individual’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 408(e)(2)(B) of such Code is 
amended— 
(A) by striking ‘‘ALL ITS ASSETS.—In any 
case’’ and all that follows through ‘‘by reason 
of subparagraph (A)’’ and inserting the fol-
lowing: ‘‘PORTION OF ASSETS USED IN PROHIB-
ITED TRANSACTION.—In any case in which a 
portion of an individual retirement account is 
treated as distributed under subparagraph 
(A)’’, and 
(B) by striking ‘‘all the assets in the ac-
count’’ and inserting ‘‘such portion’’. 
(2) Section 4975(c)(3) of such Code is amended 
by striking ‘‘the account ceases’’ and all that follows 
and inserting the following: ‘‘the portion of the ac-
count used in the transaction is treated as distrib-
uted under paragraph (2)(A) or (4) of section 
408(e).’’. 
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133 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
TITLE IV—TECHNICAL 
AMENDMENTS 
SEC. 401. AMENDMENTS RELATING TO SETTING EVERY 
COMMUNITY UP FOR RETIREMENT ENHANCE-
MENT ACT OF 2019. 
(a) TECHNICAL AMENDMENTS.— 
(1) AMENDMENT RELATING TO SECTION 114.— 
Section 401(a)(9)(C)(iii) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘employee to 
whom clause (i)(II) applies’’ and inserting ‘‘em-
ployee (other than an employee to whom clause 
(i)(II) does not apply by reason of clause (ii))’’. 
(2) AMENDMENT RELATING TO SECTION 116.— 
Section 4973(b) of the Internal Revenue Code of 
1986 is amended by adding at the end of the flush 
matter the following: ‘‘Such term shall not include 
any designated nondeductible contribution (as de-
fined in subparagraph (C) of section 408(o)(2)) 
which does not exceed the nondeductible limit under 
subparagraph (B) thereof by reason of an election 
under section 408(o)(5).’’. 
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134 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall take effect as if included in sec-
tion of the Setting Every Community Up for Retire-
ment Enhancement Act of 2019 to which the 
amendment relates. 
(b) 
CLERICAL
AMENDMENT.—Section 
72(t)(2)(H)(vi)(IV) of the Internal Revenue Code of 1986 
is amended by striking ‘‘403(b)(7)(A)(ii)’’ and inserting 
‘‘ 403(b)(7)(A)(i)’’. 
TITLE V—ADMINISTRATIVE 
PROVISIONS 
SEC. 501. PROVISIONS RELATING TO PLAN AMENDMENTS. 
(a) IN GENERAL.—If this section applies to any re-
tirement plan or contract amendment— 
(1) such retirement plan or contract shall be 
treated as being operated in accordance with the 
terms of the plan during the period described in sub-
section (b)(2)(A); and 
(2) except as provided by the Secretary of the 
Treasury (or the Secretary’s delegate), such retire-
ment plan shall not fail to meet the requirements of 
section 411(d)(6) of the Internal Revenue Code of 
1986 and section 204(g) of the Employee Retire-
ment Income Security Act of 1974 by reason of such 
amendment. 
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135 
(b) AMENDMENTS TO WHICH SECTION APPLIES.— 
(1) IN GENERAL.—This section shall apply to 
any amendment to any retirement plan or annuity 
contract which is made— 
(A) pursuant to any amendment made by 
this Act or pursuant to any regulation issued by 
the Secretary of the Treasury or the Secretary 
of Labor (or a delegate of either such Sec-
retary) under this Act; and 
(B) on or before the last day of the first 
plan year beginning on or after January 1, 
2023, or such later date as the Secretary of the 
Treasury may prescribe. 
In the case of a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986), this paragraph shall be applied by sub-
stituting ‘‘2025’’ for ‘‘2023’’. 
(2) CONDITIONS.—This section shall not apply 
to any amendment unless— 
(A) during the period— 
(i) beginning on the date the legisla-
tive or regulatory amendment described in 
paragraph (1)(A) takes effect (or in the 
case of a plan or contract amendment not 
required by such legislative or regulatory 
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136 
amendment, the effective date specified by 
the plan); and 
(ii) ending on the date described in 
paragraph (1)(B) (as modified by the sec-
ond sentence of paragraph (1)) (or, if ear-
lier, the date the plan or contract amend-
ment is adopted), 
the plan or contract is operated as if such plan 
or contract amendment were in effect; and 
(B) such plan or contract amendment ap-
plies retroactively for such period. 
(c) COORDINATION WITH OTHER PROVISIONS RE-
LATING TO PLAN AMENDMENTS.— 
(1) SECURE ACT.—Section 601(b)(1) of the 
Setting Every Community Up for Retirement En-
hancement Act of 2019 is amended— 
(A) by striking ‘‘January 1, 2022’’ in sub-
paragraph (B) and inserting ‘‘January 1, 
2023’’, and 
(B) by striking ‘‘substituting ‘2024’ for 
‘2022’.’’ in the flush matter at the end and in-
serting ‘‘substituting ‘2025’ for ‘2023’.’’. 
(2) CARES ACT.— 
(A) SPECIAL RULES FOR USE OF RETIRE-
MENT
FUNDS.—Section 2202(c)(2)(A) of the 
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137 
CARES Act is amended by striking ‘‘January 
1, 2022’’ in clause (ii) and inserting ‘‘January 
1, 2023’’. 
(B) TEMPORARY
WAIVER
OF
REQUIRED 
MINIMUM DISTRIBUTIONS RULES FOR CERTAIN 
RETIREMENT PLANS AND ACCOUNTS.—Section 
2203(c)(2)(B)(i) of the CARES Act is amend-
ed— 
(i) by striking ‘‘January 1, 2022’’ in 
subclause (II) and inserting ‘‘January 1, 
2023’’, and 
(ii) by striking ‘‘substituting ‘2024’ 
for ‘2022’.’’ in the flush matter at the end 
and inserting ‘‘substituting ‘2025’ for 
‘2023’.’’. 
(C) TAXPAYER CERTAINTY AND DISASTER 
TAX
RELIEF
ACT
OF
2020.—Section 
302(d)(2)(A) of the Taxpayer Certainty and 
Disaster Tax Relief Act of 2020 is amended by 
striking ‘‘January 1, 2022’’ in clause (ii) and 
inserting ‘‘January 1, 2023’’. 
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138 
TITLE VI—REVENUE 
PROVISIONS 
SEC. 601. SIMPLE AND SEP ROTH IRAS. 
(a) IN GENERAL.—Section 408A of the Internal Rev-
enue Code of 1986 is amended by striking subsection (f). 
(b) RULES RELATING TO SIMPLIFIED EMPLOYEE 
PENSIONS.— 
(1) CONTRIBUTIONS.—Section 402(h)(1) of 
such Code is amended by striking ‘‘and’’ at the end 
of subparagraph (A), by striking the period at the 
end of subparagraph (B) and inserting ‘‘, and’’, and 
by adding at the end the following new subpara-
graph: 
‘‘(C) in the case of any contributions pur-
suant to a simplified employer pension which 
are made to an individual retirement plan des-
ignated as a Roth IRA, such contribution shall 
not be excludable from gross income.’’. 
(2) DISTRIBUTIONS.—Section 402(h)(3) of such 
Code is amended by inserting ‘‘, or section 408A(d) 
in the case of an individual retirement plan des-
ignated as a Roth IRA’’ before the period at the 
end. 
(3) ELECTION REQUIRED.—Section 408(k) of 
such Code is amended by redesignating paragraphs 
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139 
(7), (8), and (9) as paragraphs (8), (9), and (10), 
respectively, and by inserting the after paragraph 
(6) the following new paragraph: 
‘‘(7) ROTH CONTRIBUTION ELECTION.—An in-
dividual retirement plan which is designated as a 
Roth IRA shall not be treated as a simplified em-
ployee pension under this subsection unless the em-
ployee elects for such plan to be so treated (at such 
time and in such manner as the Secretary may pro-
vide).’’. 
(c) RULES RELATING TO SIMPLE RETIREMENT AC-
COUNTS.— 
(1) ELECTION REQUIRED.—Section 408(p) of 
such Code is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(11) ROTH CONTRIBUTION ELECTION.—An in-
dividual retirement plan which is designated as a 
Roth IRA shall not be treated as a simple retirement 
account under this subsection unless the employee 
elects for such plan to be so treated (at such time 
and in such manner as the Secretary may pro-
vide).’’. 
(2) ROLLOVERS.—Section 408A(e) of such 
Code is amended by adding at the end the following 
new paragraph: 
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140 
‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 
case of any payment or distribution out of a simple 
retirement account (as defined in section 408(p)) 
with respect to which an election has been made 
under section 408(p)(11) and to which 72(t)(6) ap-
plies, the term ‘qualified rollover contribution’ shall 
not include any payment or distribution paid into an 
account other than another simple retirement ac-
count (as so defined).’’. 
(d) COORDINATION WITH ROTH CONTRIBUTION LIM-
ITATION.—Section 408A(c) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(7) COORDINATION
WITH
LIMITATION
FOR 
SIMPLE
RETIREMENT
PLANS
AND SEPs.—In the 
case of an individual on whose behalf contributions 
are made to a simple retirement account or a sim-
plified employee pension, the amount described in 
paragraph (2)(A) shall be increased by an amount 
equal to the contributions made on the individual’s 
behalf to such account or pension for the taxable 
year, but only to the extent such contributions— 
‘‘(A) in the case of a simplified retirement 
account— 
‘‘(i) do not exceed the sum of the dol-
lar amount in effect for the taxable year 
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141 
under section 408(p)(2)(A)(ii) and the em-
ployer contribution required under sub-
paragraph (A)(iii) or (B)(i), as the case 
may be, of section 408(p)(2), and 
‘‘(ii) do not cause the elective defer-
rals (as defined in section 402(g)(3)) on 
behalf of such individual to exceed the lim-
itation under section 402(g)(1) (taking 
into account any additional elective defer-
rals permitted under section 414(v)), or 
‘‘(B) in the case of a simplified employee 
pension, do not exceed the limitation in effect 
under section 408(j).’’. 
(e) 
CONFORMING
AMENDMENT.—Section 
408A(d)(2)(B) of such Code is amended by inserting ‘‘, 
or employer in the case of a simple retirement account 
(as defined in section 408(p)) or simplified employee pen-
sion (as defined in section 408(k)),’’ after ‘‘individual’s 
spouse’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
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142 
SEC. 602. HARDSHIP WITHDRAWAL RULES FOR 403(b) 
PLANS. 
(a) IN GENERAL.—Section 403(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(15) SPECIAL RULES RELATING TO HARDSHIP 
WITHDRAWALS.—For purposes of paragraphs (7) 
and (11)— 
‘‘(A) AMOUNTS
WHICH
MAY
BE
WITH-
DRAWN.—The following amounts may be dis-
tributed upon hardship of the employee: 
‘‘(i) Contributions made pursuant to a 
salary reduction agreement (within the 
meaning of section 3121(a)(5)(D)). 
‘‘(ii) Qualified nonelective contribu-
tions (as defined in section 401(m)(4)(C)). 
‘‘(iii) Qualified matching contributions 
described in section 401(k)(3)(D)(ii)(I). 
‘‘(iv) Earnings on any contributions 
described in clause (i), (ii), or (iii). 
‘‘(B) NO REQUIREMENT TO TAKE AVAIL-
ABLE LOAN.—A distribution shall not be treat-
ed as failing to be made upon the hardship of 
an employee solely because the employee does 
not take any available loan under the plan.’’. 
(b) CONFORMING AMENDMENTS.— 
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143 
(1) Section 403(b)(7)(A)(ii) is amended by 
striking ‘‘in the case of contributions made pursuant 
to a salary reduction agreement (within the meaning 
of section 3121(a)(5)(D))’’ and inserting ‘‘subject to 
the provisions of paragraph (15)’’. 
(2) Paragraph (11) of section 403(b) is amend-
ed— 
(A) by striking ‘‘in’’ in subparagraph (B) 
and inserting ‘‘subject to the provisions of para-
graph (15), in’’, and 
(B) by striking the last sentence. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2021. 
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)(iv), the preceding sentence shall only apply if contribu-
tions are designated Roth contributions (as defined in sec-
tion 402A(c)(1)).’’. 
(b) CONFORMING AMENDMENTS.— 
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144 
(1) Section 402(g)(1) of such Code is amended 
by striking subparagraph (C). 
(2) Section 457(e)(18)(A)(ii) is amended by in-
serting ‘‘the lesser of any designated Roth contribu-
tions 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, 2021. 
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: 
‘‘(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 or elective deferral, shall be treated as 
a matching contribution for purposes of this chapter, 
except that such contribution shall not be excludable 
from gross income, and’’. 
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145 
(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: 
‘‘(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.’’. 
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