2550.404c-5 of title 29, Code of Federal Regulations 
(or any successor regulations). 
‘‘(c) EXCEPTIONS.—For purposes of this section— 
‘‘(1) SIMPLE PLANS.—Subsection (a) shall not 
apply to any simple plan (within the meaning of sec-
tion 401(k)(11)). 
‘‘(2) EXCEPTION
FOR
PLANS
OR
ARRANGE-
MENTS ESTABLISHED BEFORE ENACTMENT OF SEC-
TION.— 
‘‘(A) IN
GENERAL.—Subsection (a) shall 
not apply to— 
‘‘(i) any qualified cash or deferred ar-
rangement established before the date of 
the enactment of this section, or 
‘‘(ii) any annuity contract purchased 
under a plan established before the date of 
the enactment of this section. 
‘‘(B) 
POST-ENACTMENT
ADOPTION
OF 
MULTIPLE
EMPLOYER
PLAN.—Subparagraph 
(A) shall not apply in the case of an employer 
adopting after such date of enactment a plan 
maintained by more than one employer, and 
subsection (a) shall apply with respect to such 
employer as if such plan were a single plan.
‘‘(3) EXCEPTION
FOR
GOVERNMENTAL
AND 
CHURCH PLANS.—Subsection (a) shall not apply to 
any governmental plan (within the meaning of sec-
tion 414(d)) or any church plan (within the meaning 
of section 414(e)). 
‘‘(4) EXCEPTION FOR NEW AND SMALL BUSI-
NESSES.— 
‘‘(A) 
NEW
BUSINESS.—Subsection 
(a) 
shall not apply to any qualified cash or deferred 
arrangement, or any annuity contract pur-
chased under a plan, while the employer main-
taining such plan (and any predecessor em-
ployer) has been in existence for less than 3 
years. 
‘‘(B) SMALL BUSINESSES.—Subsection (a) 
shall not apply to any qualified cash or deferred 
arrangement, or any annuity contract pur-
chased under a plan, earlier than the date that 
is 1 year after the close of the first taxable year 
with respect to which the employer maintaining 
the plan normally employed more than 10 em-
ployees. 
‘‘(C) TREATMENT
OF
MULTIPLE
EM-
PLOYER PLANS.—In the case of a plan main-
tained by more than 1 employer, subparagraphs
(A) and (B) shall be applied separately with re-
spect to each such employer, and all such em-
ployers to which subsection (a) applies (after 
the application of this paragraph) shall be 
treated as maintaining a separate plan for pur-
poses of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part I of subchapter D of chapter 1 of 
such Code is amended by inserting after the item relating 
to section 414 the following new item: 
‘‘Sec. 414A. Requirements related to automatic enrollment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2023. 
SEC. 102. MODIFICATION OF CREDIT FOR SMALL EM-
PLOYER PENSION PLAN STARTUP COSTS. 
(a) INCREASE IN CREDIT PERCENTAGE FOR SMALL-
ER EMPLOYERS.—Section 45E(e) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL 
EMPLOYERS.—In the case of an employer which 
would be an eligible employer under subsection (c) if 
section 408(p)(2)(C)(i) was applied by substituting 
‘50 employees’ for ‘100 employees’, subsection (a)
shall be applied by substituting ‘100 percent’ for ‘50 
percent’.’’. 
(b) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU-
TIONS BY CERTAIN SMALL EMPLOYERS.—Section 45E of 
such Code, as amended by subsection (a), is amended by 
adding at the end the following new subsection: 
‘‘(f) ADDITIONAL CREDIT
FOR EMPLOYER CON-
TRIBUTIONS BY CERTAIN ELIGIBLE EMPLOYERS.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
employer, the credit allowed for the taxable year 
under subsection (a) (determined without regard to 
this subsection) shall be increased by an amount 
equal to the applicable percentage of employer con-
tributions (other than any elective deferrals (as de-
fined in section 402(g)(3)) by the employer to an eli-
gible employer plan (other than a defined benefit 
plan (as defined in section 414(j))). 
‘‘(2) LIMITATIONS.— 
‘‘(A) DOLLAR
LIMITATION.—The amount 
determined under paragraph (1) (before the ap-
plication of subparagraph (B)) with respect to 
any employee of the employer shall not exceed 
$1,000. 
‘‘(B) CREDIT PHASE-IN.—In the case of 
any eligible employer which had for the pre-
ceding taxable year more than 50 employees, 
the amount determined under paragraph (1) 
(without regard to this subparagraph) shall be 
reduced by an amount equal to the product 
of— 
‘‘(i) the amount otherwise so deter-
mined under paragraph (1), multiplied by 
‘‘(ii) a percentage equal to 2 percent-
age points for each employee of the em-
ployer for the preceding taxable year in ex-
cess of 50 employees. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes 
of this section, the applicable percentage for the tax-
able year during which the eligible employer plan is 
established with respect to the eligible employer shall 
be 100 percent, and for taxable years thereafter 
shall be determined under the following table: 
‘‘In the case of the following 
taxable 
year 
beginning 
after the taxable year 
during which plan is es-
tablished with respect to 
the eligible employer: 
The applicable percentage shall 
be: 
1st ................................................................................................
100% 
2nd ...............................................................................................
75% 
3rd ...............................................................................................
50% 
4th ................................................................................................
25% 
Any taxable year thereafter .........................................................
0% 
‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 
NUMBER OF EMPLOYEES.—For purposes of this sub-
section, whether an employer is an eligible employer
and the number of employees of an employer shall 
be determined under the rules of subsection (c), ex-
cept that paragraph (2) thereof shall only apply to 
the taxable year during which the eligible employer 
plan to which this section applies is established with 
respect to the eligible employer.’’. 
(c) 
DISALLOWANCE
OF
DEDUCTION.—Section 
45E(e)(2) of such Code is amended to read as follows: 
‘‘(2) DISALLOWANCE OF DEDUCTION.—No de-
duction shall be allowed— 
‘‘(A) for that portion of the qualified start-
up costs paid or incurred for the taxable year 
which is equal to so much of the portion of the 
credit determined under subsection (a) as is 
properly allocable to such costs, and 
‘‘(B) for that portion of the employer con-
tributions by the employer for the taxable year 
which is equal to so much of the credit increase 
determined under subsection (f) as is properly 
allocable to such contributions.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022.
SEC. 103. PROMOTION OF SAVER’S CREDIT. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall take such steps as the Secretary determines are nec-
essary and appropriate to increase public awareness of the 
credit provided under section 25B of the Internal Revenue 
Code of 1986. 
(b) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary 
shall provide a report to Congress to summarize the 
anticipated promotion efforts of the Treasury under 
subsection (a). 
(2) CONTENTS.—Such report shall include— 
(A) a description of plans for— 
(i) the development and distribution 
of digital and print materials, including the 
distribution of such materials to States for 
participants in State facilitated retirement 
savings programs, and 
(ii) the translation of such materials 
into the 10 most commonly spoken lan-
guages in the United States after English 
(as determined by reference to the most re-
cent American Community Survey of the 
Bureau of the Census), and
(B) such other information as the Sec-
retary determines is necessary 
SEC. 104. ENHANCEMENT OF SAVER’S CREDIT. 
(a) 50 PERCENT CREDIT RATE.—Section 25B(a) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘the applicable percentage’’ and inserting ‘‘50 percent’’. 
(b) ADJUSTED GROSS INCOME PHASEOUTS.—Section 
25B(b) of such Code is amended to read as follows: 
‘‘(b) LIMITATION.—For purposes of this section— 
‘‘(1) IN GENERAL.—The amount of credit al-
lowable under subsection (a) (determined without re-
gard to this subsection) shall be reduced (but not 
below zero) by an amount which bears the same 
ratio to the credit otherwise so allowable as— 
‘‘(A) the excess (if any) of— 
‘‘(i) adjusted gross income of the tax-
payer, over 
‘‘(ii) the threshold amount, bears to 
‘‘(B) the phaseout amount. 
‘‘(2) THRESHOLD AMOUNT.—The term ‘thresh-
old amount’ means— 
‘‘(A) in the case of a joint return or a sur-
viving spouse (as defined in section 2(a)), 
$48,000,
‘‘(B) in the case of a head of household, 75 
percent of the amount in effect for the taxable 
year under subparagraph (A), and 
‘‘(C) in the case of any other individual, 50 
percent of the amount in effect for the taxable 
year under subparagraph (A). 
‘‘(3) PHASEOUT AMOUNT.—The term ‘phaseout 
amount’ means— 
‘‘(A) in the case of a joint return or a sur-
viving spouse (as defined in 2(a)), $35,000, 
‘‘(B) in the case of a head of household (as 
defined in section 2(b)), 75 percent of the 
amount in effect for the taxable year under sub-
paragraph (A), and 
‘‘(C) in the case of any other individual, 50 
percent of the amount in effect for the taxable 
year under subparagraph (A). 
‘‘(4) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2026, the $48,000 dollar amount in paragraph 
(2) and the $35,000 in paragraph (3) shall 
each be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2022’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—Any increase deter-
mined under subparagraph (A) that is not a 
multiple of $500 shall be rounded to the near-
est multiple of $500.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 105. ENHANCEMENT OF 403(b) PLANS. 
(a) IN GENERAL.—Section 403(b)(7)(A) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘if the 
amounts are to be invested in regulated investment com-
pany stock to be held in that custodial account’’ and in-
serting ‘‘if the amounts are to be held in that custodial 
account and invested in regulated investment company 
stock or a group trust intended to satisfy the requirements 
of Internal Revenue Service Revenue Ruling 81–100 (or 
any successor guidance)’’. 
(b) CONFORMING AMENDMENT.—The heading of 
paragraph (7) of section 403(b) of such Code is amended
31, 2029, and age 74 before January 
1, 2033, the applicable age is 74. 
‘‘(III) In the case of an indi-
vidual who attains age 74 after De-
cember 31, 2032, the applicable age is 
75.’’. 
(d) CONFORMING AMENDMENTS.—The last sentence 
of section 408(b) of such Code is amended by striking 
‘‘age 72’’ and inserting ‘‘the applicable age (determined 
under section 401(a)(9)(C)(v) for the calendar year in 
which such taxable year begins)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions required to be 
made after December 31, 2022, with respect to individuals 
who attain age 72 after such date. 
SEC. 107. INDEXING IRA CATCH-UP LIMIT. 
(a) IN GENERAL.—Subparagraph (C) of section 
219(b)(5) of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new clause: 
‘‘(iii) INDEXING OF CATCH-UP LIMITA-
TION.—In the case of any taxable year be-
ginning in a calendar year after 2023, the 
$1,000 amount under subparagraph (B)(ii) 
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 2022’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
If any amount after adjustment under the 
preceding sentence is not a multiple of 
$100, such amount shall be rounded to the 
next lower multiple of $100.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
SEC. 108. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, 
AND 64. 
(a) IN GENERAL.— 
(1) PLANS OTHER THAN SIMPLE PLANS.—Sec-
tion 414(v)(2)(B)(i) of the Internal Revenue Code of 
1986 is amended by inserting the following before 
the period: ‘‘($10,000, in the case of an eligible par-
ticipant who would attain age 62, but not age 65, 
before the close of the taxable year)’’.
(2) SIMPLE PLANS.—Section 414(v)(2)(B)(ii) of 
such Code is amended by inserting the following be-
fore the period: ‘‘($5,000, in the case of an eligible 
participant who would attain age 62, but not age 65, 
before the close of the taxable year)’’. 
(b) COST-OF-LIVING ADJUSTMENTS.—Subparagraph 
(C) of section 414(v)(2) of such Code is amended by add-
ing at the end the following: ‘‘In the case of a year begin-
ning after December 31, 2023, the Secretary shall adjust 
annually the $10,000 amount in subparagraph (B)(i) and 
the $5,000 amount in subparagraph (B)(ii) for increases 
in the cost-of-living at the same time and in the same 
manner as adjustments under the preceding sentence; ex-
cept that the base period taken into account shall be the 
calendar quarter beginning July 1, 2022.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
SEC. 109. POOLED EMPLOYER PLANS MODIFICATION. 
(a) IN GENERAL.—Section 3(43)(B)(ii) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(43)(B)(ii)) is amended to read as follows: 
‘‘(ii) designate a named fiduciary 
(other than an employer in the plan) to be 
responsible for collecting contributions to
the plan and require such fiduciary to im-
plement written contribution collection pro-
cedures that are reasonable, diligent, and 
systematic;’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2022. 
SEC. 110. MULTIPLE EMPLOYER 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) MULTIPLE EMPLOYER PLANS.— 
‘‘(A) IN GENERAL.—Except in the case of 
a church plan, this subsection shall not be 
treated as failing to apply to an annuity con-
tract solely by reason of such contract being 
purchased under a plan maintained by more 
than 1 employer. 
‘‘(B) TREATMENT OF EMPLOYERS FAILING 
TO MEET REQUIREMENTS OF PLAN.— 
‘‘(i) IN GENERAL.—In the case of a 
plan maintained by more than 1 employer, 
this subsection shall not be treated as fail-
ing to apply to an annuity contract held 
under such plan merely because of one or
more employers failing to meet the require-
ments of this subsection if such plan satis-
fies rules similar to the rules of section 
413(e)(2) with respect to any such em-
ployer failure. 
‘‘(ii) ADDITIONAL REQUIREMENTS IN 
CASE OF NON-GOVERNMENTAL PLANS.—A 
plan shall not be treated as meeting the re-
quirements of this subparagraph unless the 
plan satisfies rules similar to the rules of 
subparagraph (A) or (B) of section 
413(e)(1), except in the case of a multiple 
employer plan maintained solely by any of 
the following: A State, a political subdivi-
sion of a State, or an agency or instrumen-
tality of any one or more of the fore-
going.’’. 
(b) ANNUAL REGISTRATION FOR 403(b) MULTIPLE 
EMPLOYER PLAN.—Section 6057 of such Code is amend-
ed by redesignating subsection (g) as subsection (h) and 
by inserting after subsection (f) the following new sub-
section: 
‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS TREATED 
AS ONE PLAN.—In the case of annuity contracts to which 
this section applies and to which section 403(b) applies
by reason of the plan under which such contracts are pur-
chased meeting the requirements of paragraph (15) there-
of, such plan shall be treated as a single plan for purposes 
of this section.’’. 
(c) ANNUAL INFORMATION RETURNS
FOR 403(b) 
MULTIPLE EMPLOYER PLAN.—Section 6058 of such Code 
is amended by redesignating subsection (f) as subsection 
(g) and by inserting after subsection (e) the following new 
subsection: 
‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS TREATED 
AS ONE PLAN.—In the case of annuity contracts to which 
this section applies and to which section 403(b) applies 
by reason of the plan under which such contracts are pur-
chased meeting the requirements of paragraph (15) there-
of, such plan shall be treated as a single plan for purposes 
of this section.’’. 
(d) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Section 3(43)(A) of the Em-
ployee Retirement Income Security Act of 1974 is 
amended— 
(A) in clause (ii), by striking ‘‘section 
501(a) of such Code or’’ and inserting ‘‘section 
501(a) of such Code, a plan that consists of
contracts described in section 403(b) of such 
Code, or’’; and 
(B) in the flush text at the end, by striking 
‘‘the plan.’’ and inserting ‘‘the plan, but such 
term shall include any program (other than a 
governmental plan) maintained for the benefit 
of the employees of more than 1 employer that 
consists of contracts described in section 403(b) 
of such Code and that meets the requirements 
of subparagraph (A) or (B) of section 413(e)(1) 
of such Code.’’. 
(2) 
CONFORMING
AMENDMENTS.—Sections 
3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee 
Retirement Income Security Act of 1974 are each 
amended by striking ‘‘section 401(a) of such Code 
or’’ and inserting ‘‘section 401(a) of such Code, a 
plan that consists of contracts described in section 
403(b) of such Code, or’’. 
(e) REGULATIONS RELATING TO EMPLOYER FAIL-
URE TO MEET MULTIPLE EMPLOYER PLAN REQUIRE-
MENTS.—The Secretary of the Treasury (or the Sec-
retary’s delegate) shall prescribe such regulations as may 
be necessary to clarify, in the case of plans to which sec-
tion 403(b)(15) of the Internal Revenue Code of 1986 ap-
plies, the treatment of an employer departing such plan
in connection with such employer’s failure to meet mul-
tiple employer plan requirements. 
(f) MODIFICATION
OF MODEL PLAN LANGUAGE, 
ETC.— 
(1) PLAN
NOTIFICATIONS.—The Secretary of 
the Treasury (or the Secretary’s delegate) shall mod-
ify the model plan language published under section 
413(e)(5) of the Internal Revenue Code of 1986 to 
include language that notifies participating employ-
ers described in section 501(c)(3), and which are ex-
empt from tax under section 501(a), that the plan 
is subject to the Employee Retirement Income Secu-
rity Act of 1974 and that such employer is a plan 
sponsor with respect to its employees participating 
in the multiple employer plan and, as such, has cer-
tain fiduciary duties with respect to the plan and to 
its employees. 
(2) MODEL PLANS FOR MULTIPLE EMPLOYER 
403(b) NON-GOVERNMENTAL PLANS.—For plans to 
which section 403(b)(15)(A) of the Internal Revenue 
Code of 1986 applies (other than a plan maintained 
for its employees by a State, a political subdivision 
of a State, or an agency or instrumentality of any 
one or more of the foregoing), the Secretary of the 
Treasury shall publish model plan language similar
to model plan language published under section 
413(e)(5) of such Code. 
(3) EDUCATIONAL OUTREACH TO EMPLOYERS 
EXEMPT FROM TAX.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall provide education 
and outreach to increase awareness to employers de-
scribed in section 501(c)(3) of the Internal Revenue 
Code of 1986, and which are exempt from tax under 
section 501(a) of such Code, that multiple employer 
plans are subject to the Employee Retirement In-
come Security Act of 1974 and that such employer 
is a plan sponsor with respect to its employees par-
ticipating in the multiple employer plan and, as 
such, has certain fiduciary duties with respect to the 
plan and to its employees. 
(g) NO INFERENCE WITH RESPECT
TO CHURCH 
PLANS.—Regarding any application of section 403(b) of 
the Internal Revenue Code of 1986 to an annuity contract 
purchased under a church plan (as defined in section 
414(e) of such Code) maintained by more than 1 em-
ployer, or to any application of rules similar to section 
413(e) of such Code to such a plan, no inference shall 
be made from section 403(b)(15)(A) of such Code (as 
added by this Act) not applying to such plans. 
(h) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2022. 
(2) RULE OF CONSTRUCTION.—Nothing in the 
amendments made by subsection (a) shall be con-
strued as limiting the authority of the Secretary of 
the Treasury or the Secretary’s delegate (determined 
without regard to such amendment) to provide for 
the proper treatment of a failure to meet any re-
quirement applicable under the Internal Revenue 
Code of 1986 with respect to one employer (and its 
employees) in the case of a plan to which section 
403(b)(15) of the Internal Revenue Code of 1986 
applies. 
SEC. 111. TREATMENT OF STUDENT LOAN PAYMENTS AS 
ELECTIVE DEFERRALS FOR PURPOSES OF 
MATCHING CONTRIBUTIONS. 
(a) IN GENERAL.—Section 401(m)(4)(A) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of clause (i), by striking the period at 
the end of clause (ii) and inserting ‘‘, and’’, and by adding 
at the end the following new clause: 
‘‘(iii) subject to the requirements of 
paragraph (13), any employer contribution 
made to a defined contribution plan on be-
half of an employee on account of a quali-
fied student loan payment.’’. 
(b) QUALIFIED STUDENT LOAN PAYMENT.—Section 
401(m)(4) of such Code is amended by adding at the end 
the following new subparagraph: 
‘‘(D) QUALIFIED
STUDENT
LOAN
PAY-
MENT.—The term ‘qualified student loan pay-
ment’ means a payment made by an employee 
in repayment of a qualified education loan (as 
defined section 221(d)(1)) incurred by the em-
ployee to pay qualified higher education ex-
penses, but only— 
‘‘(i) to the extent such payments in 
the aggregate for the year do not exceed 
an amount equal to— 
‘‘(I) the limitation applicable 
under section 402(g) for the year (or, 
if lesser, the employee’s compensation 
(as defined in section 415(c)(3)) for 
the year), reduced by 
‘‘(II) the elective deferrals made 
by the employee for such year, and 
‘‘(ii) if the employee certifies to the 
employer making the matching contribu-
tion under this paragraph that such pay-
ment has been made on such loan. 
For purposes of this subparagraph, the term 
‘qualified higher education expenses’ means the 
cost of attendance (as defined in section 472 of 
the Higher Education Act of 1965, as in effect 
on the day before the date of the enactment of 
the Taxpayer Relief Act of 1997) at an eligible 
educational institution (as defined in section 
221(d)(2)).’’. 
(c) MATCHING
CONTRIBUTIONS
FOR
QUALIFIED 
STUDENT LOAN PAYMENTS.—Section 401(m) of such 
Code is amended by redesignating paragraph (13) as para-
graph (14), and by inserting after paragraph (12) the fol-
lowing new paragraph: 
‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI-
FIED STUDENT LOAN PAYMENTS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (4)(A)(iii), an employer contribution 
made to a defined contribution plan on account 
of a qualified student loan payment shall be 
treated as a matching contribution for purposes 
of this title if— 
‘‘(i) the plan provides matching con-
tributions on account of elective deferrals
at the same rate as contributions on ac-
count of qualified student loan payments, 
‘‘(ii) the plan provides matching con-
tributions on account of qualified student 
loan payments only on behalf of employees 
otherwise eligible to receive matching con-
tributions on account of elective deferrals, 
‘‘(iii) under the plan, all employees el-
igible to receive matching contributions on 
account of elective deferrals are eligible to 
receive matching contributions on account 
of qualified student loan payments, and 
‘‘(iv) the plan provides that matching 
contributions on account of qualified stu-
dent loan payments vest in the same man-
ner as matching contributions on account 
of elective deferrals. 
‘‘(B) TREATMENT FOR PURPOSES OF NON-
DISCRIMINATION RULES, ETC.— 
‘‘(i) NONDISCRIMINATION
RULES.— 
For purposes of subparagraph (A)(iii), 
subsection (a)(4), and section 410(b), 
matching contributions described in para-
graph (4)(A)(iii) shall not fail to be treated 
as available to an employee solely because
such employee does not have debt incurred 
under a qualified education loan (as de-
fined in section 221(d)(1)). 
‘‘(ii) STUDENT LOAN PAYMENTS NOT 
TREATED
AS
PLAN
CONTRIBUTION.—Ex-
cept as provided in clause (iii), a qualified 
student loan payment shall not be treated 
as a contribution to a plan under this title. 
‘‘(iii) 
MATCHING
CONTRIBUTION 
RULES.—Solely for purposes of meeting 
the requirements of paragraph (11)(B) or 
(12) of this subsection, or paragraph 
(11)(B)(i)(II), (12)(B), or (13)(D) of sub-
section (k), a plan may treat a qualified 
student loan payment as an elective defer-
ral or an elective contribution, whichever is 
applicable. 
‘‘(iv) ACTUAL
DEFERRAL
PERCENT-
AGE TESTING.—In determining whether a 
plan meets the requirements of subsection 
(k)(3)(A)(ii) for a plan year, the plan may 
apply the requirements of such subsection 
separately with respect to all employees 
who receive matching contributions de-
scribed in paragraph (4)(A)(iii) for the 
plan year. 
‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE 
CERTIFICATION.—The employer may rely on an 
employee certification of payment under para-
graph (4)(D)(ii).’’. 
(d) 
SIMPLE
RETIREMENT
ACCOUNTS.—Section 
408(p)(2) of such Code is amended by adding at the end 
the following new subparagraph: 
‘‘(F) 
MATCHING
CONTRIBUTIONS
FOR 
QUALIFIED STUDENT LOAN PAYMENTS.— 
‘‘(i) IN
GENERAL.—Subject to the 
rules of clause (iii), an arrangement shall 
not fail to be treated as meeting the re-
quirements of subparagraph (A)(iii) solely 
because under the arrangement, solely for 
purposes of such subparagraph, qualified 
student loan payments are treated as 
amounts elected by the employee under 
subparagraph (A)(i)(I) to the extent such 
payments do not exceed— 
‘‘(I) the applicable dollar amount 
under subparagraph (E) (after appli-
cation of section 414(v)) for the year 
(or, if lesser, the employee’s com-
pensation 
(as 
defined 
in 
section 
415(c)(3)) for the year), reduced by 
‘‘(II) any other amounts elected 
by the employee under subparagraph 
(A)(i)(I) for the year. 
‘‘(ii) QUALIFIED STUDENT LOAN PAY-
MENT.—For purposes of this subpara-
graph— 
‘‘(I) IN
GENERAL.—The term 
‘qualified 
student 
loan 
payment’ 
means a payment made by an em-
ployee in repayment of a qualified 
education loan (as defined in section 
221(d)(1)) incurred by the employee 
to pay qualified higher education ex-
penses, but only if the employee cer-
tifies to the employer making the 
matching contribution that such pay-
ment has been made on such a loan. 
‘‘(II) QUALIFIED
HIGHER
EDU-
CATION EXPENSES.—The term ‘quali-
fied higher education expenses’ has 
the same meaning as when used in 
section 401(m)(4)(D).
‘‘(iii) APPLICABLE RULES.—Clause (i) 
shall apply to an arrangement only if, 
under the arrangement— 
‘‘(I) matching contributions on 
account of qualified student loan pay-
ments are provided only on behalf of 
employees otherwise eligible to elect 
contributions 
under 
subparagraph 
(A)(i)(I), and 
‘‘(II) all employees otherwise eli-
gible to participate in the arrange-
ment are eligible to receive matching 
contributions on account of qualified 
student loan payments.’’. 
(e) 403(b) PLANS.—Section 403(b)(12)(A) of such 
Code is amended by adding at the end the following: ‘‘The 
fact that the employer offers matching contributions on 
account of qualified student loan payments as described 
in section 401(m)(13) shall not be taken into account in 
determining whether the arrangement satisfies the re-
quirements of clause (ii) (and any regulation there-
under).’’. 
(f) 457(b) PLANS.—Section 457(b) of such Code is 
amended by adding at the end the following: ‘‘A plan 
which is established and maintained by an employer which
is described in subsection (e)(1)(A) shall not be treated 
as failing to meet the requirements of this subsection sole-
ly because the plan, or another plan maintained by the 
employer which meets the requirements of section 401(a) 
or 403(b), provides for matching contributions on account 
of qualified student loan payments as described in section 
401(m)(13).’’. 
(g) REGULATORY AUTHORITY.—The Secretary shall 
prescribe regulations for purposes of implementing the 
amendments made by this section, including regulations— 
(1) permitting a plan to make matching con-
tributions for qualified student loan payments, as 
defined in sections 401(m)(4)(D) and 408(p)(2)(F) 
of the Internal Revenue Code of 1986, as added by 
this section, at a different frequency than matching 
contributions are otherwise made under the plan, 
provided that the frequency is not less than annu-
ally; 
(2) permitting employers to establish reasonable 
procedures to claim matching contributions for such 
qualified student loan payments under the plan, in-
cluding an annual deadline (not earlier than 3 
months after the close of each plan year) by which 
a claim must be made; and
(3) promulgating model amendments which 
plans may adopt to implement matching contribu-
tions on such qualified student loan payments for 
purposes of sections 401(m), 408(p), 403(b), and 
457(b) of the Internal Revenue Code of 1986. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made for plan 
years beginning after December 31, 2022. 
SEC. 112. APPLICATION OF CREDIT FOR SMALL EMPLOYER 
PENSION PLAN STARTUP COSTS TO EMPLOY-
ERS WHICH JOIN AN EXISTING PLAN. 
(a) IN GENERAL.—Section 45E(d)(3)(A) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘ef-
fective’’ and inserting ‘‘effective with respect to the eligible 
employer’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the enact-
ment of section 104 of the Setting Every Community Up 
for Retirement Enhancement Act of 2019. 
SEC. 113. MILITARY SPOUSE RETIREMENT PLAN ELIGI-
BILITY CREDIT FOR SMALL EMPLOYERS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section:
‘‘SEC. 45U. MILITARY SPOUSE RETIREMENT PLAN ELIGI-
BILITY CREDIT FOR SMALL EMPLOYERS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of any eligible small employer, the military spouse 
retirement plan eligibility credit determined under this 
section for any taxable year is an amount equal to the 
sum of— 
‘‘(1) $250 with respect to each military spouse 
who is an employee of such employer and who is eli-
gible to participate in an eligible defined contribu-
tion plan of such employer at any time during such 
taxable year, plus 
‘‘(2) so much of the contributions made by such 
employer to all such plans with respect to such em-
ployee during such taxable year as do not exceed 
$250. 
‘‘(b) LIMITATION.—An individual shall only be taken 
into account as a military spouse under subsection (a) for 
the taxable year which includes the date on which such 
individual began participating in the eligible defined con-
tribution plan of the employer and the 2 succeeding tax-
able years. 
‘‘(c) ELIGIBLE SMALL EMPLOYER.—For purposes of 
this section—
‘‘(1) IN
GENERAL.—The term ‘eligible small 
employer’ means an eligible employer (as defined in 
section 408(p)(2)(C)(i)(I)). 
‘‘(2) APPLICATION OF 2-YEAR GRACE PERIOD.— 
A 
rule 
similar 
to 
the 
rule 
of 
section 
408(p)(2)(C)(i)(II) shall apply for purposes of this 
section. 
‘‘(d) MILITARY SPOUSE.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘military spouse’ 
means, with respect to any employer, any individual 
who is married (within the meaning of section 7703 
as of the first date that the employee is employed by 
the employer) to an individual who is a member of 
the uniformed services (as defined section 101(a)(5) 
of title 10, United States Code). For purposes of 
this section, an employer may rely on an employee’s 
certification that such employee’s spouse is a mem-
ber of the uniformed services if such certification 
provides the name, rank, and service branch of such 
spouse. 
‘‘(2) EXCLUSION
OF
HIGHLY
COMPENSATED 
EMPLOYEES.—With respect to any employer, the 
term ‘military spouse’ shall not include any indi-
vidual if such individual is a highly compensated em-
ployee of such employer (within the meaning of sec-
tion 414(q)). 
‘‘(e) ELIGIBLE DEFINED CONTRIBUTION PLAN.— 
For purposes of this section, the term ‘eligible defined con-
tribution plan’ means, with respect to any eligible small 
employer, any defined contribution plan (as defined in sec-
tion 414(i)) of such employer if, under the terms of such 
plan— 
‘‘(1) military spouses employed by such em-
ployer are eligible to participate in such plan not 
later than the date which is 2 months after the date 
on which such individual begins employment with 
such employer, and 
‘‘(2) military spouses who are eligible to partici-
pate in such plan— 
‘‘(A) are immediately eligible to receive an 
amount of employer contributions under such 
plan which is not less the amount of such con-
tributions that a similarly situated participant 
who is not a military spouse would be eligible 
to receive under such plan after 2 years of serv-
ice, and 
‘‘(B) immediately have a nonforfeitable 
right to the employee’s accrued benefit derived 
from employer contributions under such plan.
‘‘(f) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (b), (c), (m), or (o) of 
section 414 shall be treated as one employer for purposes 
of this section.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (32), by strik-
ing the period at the end of paragraph (33) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(34) in the case of an eligible small employer 
(as defined in section 45U(c)), the military spouse 
retirement plan eligibility credit determined under 
section 45U(a).’’. 
(c) SPECIFIED CREDIT
FOR PURPOSES
OF CER-
TIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.— 
Section 3511(d)(2) of such Code is amended by redesig-
nating subparagraphs (F), (G), and (H) as subparagraphs 
(G), (H), and (I), respectively, and by inserting after sub-
paragraph (E) the following new subparagraph: 
‘‘(F) section 45U (military spouse retire-
ment plan eligibility credit),’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45U. Military spouse retirement plan eligibility credit for small employ-
ers.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 114. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR 
CONTRIBUTING TO A PLAN. 
(a) IN GENERAL.—Subparagraph (A) of section 
401(k)(4) of the Internal Revenue Code of 1986 is amend-
ed by inserting ‘‘(other than a de minimis financial incen-
tive)’’ after ‘‘any other benefit’’. 
(b) SECTION 403(b) PLANS.—Subparagraph (A) of 
section 403(b)(12) of such Code, as amended by the pre-
ceding provisions of this Act, is amended by adding at the 
end the following: ‘‘A plan shall not fail to satisfy clause 
(ii) solely by reason of offering a de minimis financial in-
centive to employees to elect to have the employer make 
contributions pursuant to a salary reduction agreement.’’. 
(c) EXEMPTION FROM PROHIBITED TRANSACTION 
RULES.—Subsection (d) of section 4975 of such Code is 
amended by striking ‘‘or’’ at the end of paragraph (22), 
by striking the period at the end of paragraph (23) and 
inserting ‘‘, or’’, and by adding at the end the following 
new paragraph:
‘‘(24) the provision of a de minimis financial in-
centive described in section 401(k)(4)(A).’’. 
(d) AMENDMENT OF EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Subsection (b) of section 
408 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1108(b)) is amended by adding at the 
end the following new paragraph: 
‘‘(21) The provision of a de minimis financial 
incentive described in section 401(k)(4)(A) or sec-
tion 403(b)(12)(A) of the Internal Revenue Code of 
1986.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after the date of enactment of this Act. 
SEC. 115. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE 
ELECTIVE DEFERRAL FAILURES. 
(a) IN GENERAL.—Section 414 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(aa) CORRECTING AUTOMATIC CONTRIBUTION ER-
RORS.— 
‘‘(1) IN GENERAL.—Any plan or arrangement 
shall not fail to be treated as a plan described in 
sections 401(a), 403(b), 408, or 457(b), as applica-
ble, solely by reason of a corrected error.
‘‘(2) CORRECTED ERROR DEFINED.—For pur-
poses of this subsection, the term ‘corrected error’ 
means a reasonable administrative error in imple-
menting an automatic enrollment or automatic esca-
lation feature in accordance with the terms of an eli-
gible automatic contribution arrangement (as de-
fined under subsection (w)(3)), provided that such 
implementation error— 
‘‘(A) is corrected by the date that is 91⁄2 
months after the end of the plan year during 
which the error occurred, 
‘‘(B) is corrected in a manner that is fa-
vorable to the participant, and 
‘‘(C) is of a type which is so corrected for 
all similarly situated participants in a non-
discriminatory manner. 
Such correction may occur before or after the partic-
ipant has terminated employment and may occur 
without regard to whether the error is identified by 
the Secretary. 
‘‘(3) REGULATIONS AND GUIDANCE FOR FAVOR-
ABLE CORRECTION METHODS.—The Secretary shall, 
by regulations or other guidance of general applica-
bility, specify the correction methods that are in a
manner favorable to the participant for purposes of 
paragraph (2)(B).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to any errors with 
respect to which the date referred to in section 414(aa) 
(as added by this section) is after the date of enactment 
of this Act. 
SEC. 116. IMPROVING COVERAGE FOR PART-TIME WORK-
ERS. 
(a) IN GENERAL.—Section 202 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1052) 
is amended by adding at the end the following new sub-
section: 
‘‘(c) SPECIAL RULE FOR CERTAIN PART-TIME EM-
PLOYEES.— 
‘‘(1) IN
GENERAL.—A pension plan that in-
cludes either a qualified cash or deferred arrange-
ment (as defined in section 401(k) of the Internal 
Revenue Code of 1986) or a salary reduction agree-
ment (as described in section 403(b) of such Code) 
shall not require, as a condition of participation in 
the arrangement or agreement, that an employee 
complete a period of service with the employer (or 
employers) maintaining the plan extending beyond 
the close of the earlier of—
‘‘(A) the period permitted under subsection 
(a)(1) (determined without regard to subpara-
graph (B)(i) thereof); or 
‘‘(B) the first 24-month period— 
‘‘(i) consisting of 2 consecutive 12- 
month periods during each of which the 
employee has at least 500 hours of service; 
and 
‘‘(ii) by the close of which the em-
ployee has attained the age of 21. 
‘‘(2) EXCEPTION.—Paragraph (1)(B) shall not 
apply to any employee described in section 410(b)(3) 
of the Internal Revenue Code of 1986. 
‘‘(3) COORDINATION WITH OTHER RULES.— 
‘‘(A) IN GENERAL.—In the case of employ-
ees who are eligible to participate in the ar-
rangement or agreement solely by reason of 
paragraph (1)(B): 
‘‘(i) EXCLUSIONS.—An employer may 
elect to exclude such employees from the 
application of subsections (a)(4), (k)(3), 
(k)(12), (k)(13), and (m)(2) of section 401 
of the Internal Revenue Code of 1986 and 
section 410(b) of such Code.
‘‘(ii) NONDISCRIMINATION
RULES.— 
Notwithstanding paragraph (1), section 
401(k)(15)(B)(i)(I) of such Code shall 
apply. 
‘‘(iii) TIME OF PARTICIPATION.—The 
rules of subsection (a)(4) shall apply to 
such employees. 
‘‘(B) TOP-HEAVY
RULES.—An employer 
may elect to exclude all employees who are eligi-
ble to participate in a plan maintained by the 
employer solely by reason of paragraph (1)(B) 
from the application of the vesting and benefit 
requirements under subsections (b) and (c) of 
section 416 of the Internal Revenue Code of 
1986. 
‘‘(4) 12-MONTH PERIOD.—For purposes of this 
subsection, 12-month periods shall be determined in 
the same manner as under the last sentence of sub-
section (a)(3)(A), except that 12-month periods be-
ginning before January 1, 2021, shall not be taken 
into account.’’ 
(b) VESTING.—Section 203(b) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1053(a)) is amended by redesignating paragraph (4) as
paragraph (5) and by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) PART-TIME EMPLOYEES.—For purposes of 
determining whether an employee who is eligible to 
participate in a qualified cash or deferred arrange-
ment or a salary reduction agreement under a plan 
solely by reason of section 202(c)(1)(B) has a non-
forfeitable right to employer contributions— 
‘‘(A) except as provided in subparagraph 
(B), each 12-month period for which the em-
ployee has at least 500 hours of service shall be 
treated as a year of service; and 
‘‘(B) paragraph (3) shall be applied by 
substituting ‘at least 500 hours of service’ for 
‘more than 500 hours of service’ in subpara-
graph (A) thereof. 
For purposes of this paragraph, 12-month periods 
shall be determined in the same manner as under 
the last sentence of section 202(a)(3)(A), except that 
12-month periods beginning before January 1, 2021, 
shall not be taken into account.’’. 
(c) REDUCTION IN PERIOD SERVICE REQUIREMENT 
FOR
QUALIFIED
CASH
AND
DEFERRED
ARRANGE-
MENTS.—Section 401(k)(2)(D)(ii) of the Internal Revenue
Code of 1986 is amended by striking ‘‘3’’ and inserting 
‘‘2’’. 
(d) PRE-2021 SERVICE.—Section 112(b) of the Set-
ting Every Community Up for Retirement Enhancement 
Act of 2019 (26 U.S.C. 401 note) is amended by striking 
‘‘section 401(k)(2)(D)(ii)’’ and inserting ‘‘paragraphs 
(2)(D)(ii) and (15)(B)(iii) of section 401(k)’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to plan years beginning after December 
31, 2022. 
(2) SUBSECTION (d).—The amendment made 
by subsection (d) shall take effect as if included in 
the enactment of section 112 of the Setting Every 
Community Up for Retirement Enhancement Act of 
2019. 
SEC. 117. DEFERRAL OF TAX FOR CERTAIN SALES OF EM-
PLOYER STOCK TO EMPLOYEE STOCK OWN-
ERSHIP PLAN SPONSORED BY S CORPORA-
TION. 
(a) IN GENERAL.—Section 1042(c)(1)(A) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘do-
mestic C corporation’’ and inserting ‘‘domestic corpora-
tion’’.
(b) 10 PERCENT LIMITATION ON APPLICATION OF 
GAIN
ON SALE
OF S CORPORATION STOCK.—Section 
1042 of such Code is amended by adding at the end the 
following new subsection: 
‘‘(h) APPLICATION OF SECTION TO SALE OF STOCK 
IN S CORPORATION.—In the case of the sale of qualified 
securities of an S corporation, the election under sub-
section (a) may be made with respect to not more than 
10 percent of the amount realized on such sale for pur-
poses of determining the amount of gain not recognized 
and the extent to which (if at all) the amount realized 
on such sale exceeds the cost of qualified replacement 
property. The portion of adjusted basis that is properly 
allocable to the portion of the amount realized with respect 
to which the election is made under this subsection shall 
be taken into account for purposes of the preceding sen-
tence.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after December 31, 2027. 
SEC. 118. CERTAIN SECURITIES TREATED AS PUBLICLY 
TRADED IN CASE OF EMPLOYEE STOCK OWN-
ERSHIP PLANS. 
(a) IN GENERAL.—Section 401(a)(35) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph:
‘‘(I) ESOP RULES RELATING TO PUBLICLY 
TRADED SECURITIES.—In the case of an appli-
cable defined contribution plan which is an em-
ployee stock ownership plan, an employer secu-
rity shall be treated as described in subpara-
graph (G)(v) if— 
‘‘(i) the security is the subject of 
priced quotations by at least 4 dealers, 
published and made continuously available 
on an interdealer quotation system (as 
such term is used in section 13 of the Se-
curities Exchange Act of 1934) which has 
made the request described in section 6(j) 
of such Act to be treated as an alternative 
trading system, 
‘‘(ii) the security is not a penny stock 
(as defined by section 3(a)(51) of such 
Act), 
‘‘(iii) the security is issued by a cor-
poration which is not a shell company (as 
such term is used in section 4(d)(6) of the 
Securities Act of 1933), a blank check 
company (as defined in section 7(b)(3) of 
such Act), or subject to bankruptcy pro-
ceedings,
‘‘(iv) the security has a public float 
(as such term is used in section 240.12b- 
2 of title 17, Code of Federal Regulations) 
which has a fair market value of at least 
$1,000,000 and constitutes at least 10 per-
cent of the total shares issued and out-
standing. 
‘‘(v) in the case of a security issued 
by a domestic corporation, the issuer pub-
lishes, not less frequently than annually, fi-
nancial statements audited by an inde-
pendent auditor registered with the Public 
Company Accounting Oversight Board es-
tablished under the Sarbanes-Oxley Act of 
2002, and 
‘‘(vi) in the case of a security issued 
by a foreign corporation, the security is 
represented by a depositary share (as de-
fined under section 240.12b-2 of title 17, 
Code of Federal Regulations), or is issued 
by a foreign corporation incorporated in 
Canada and readily tradeable on an estab-
lished securities market in Canada, and 
the issuer—
‘‘(I) is subject to, and in compli-
ance with, the reporting requirements 
of section 13 or 15(d) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 
78m or 78o(d)), 
‘‘(II) is subject to, and in compli-
ance with, the reporting requirements 
of section 230.257 of title 17, Code of 
Federal Regulations, or 
‘‘(III) is exempt from such re-
quirements under section 240.12g3– 
2(b) of title 17, Code of Federal Reg-
ulations.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2027. 
TITLE II—PRESERVATION OF 
INCOME 
SEC. 201. REMOVE REQUIRED MINIMUM DISTRIBUTION 
BARRIERS FOR LIFE ANNUITIES. 
(a) IN GENERAL.—Section 401(a)(9) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(J) CERTAIN
INCREASES
IN
PAYMENTS 
UNDER A COMMERCIAL ANNUITY.—Nothing in
this section shall prohibit a commercial annuity 
(within the meaning of section 3405(e)(6)) that 
is issued in connection with any eligible retire-
ment plan (within the meaning of section 
402(c)(8)(B), other than a defined benefit plan) 
from providing one or more of the following 
types of payments on or after the annuity start-
ing date: 
‘‘(i) annuity payments that increase 
by a constant percentage, applied not less 
frequently than annually, at a rate that is 
less than 5 percent per year, 
‘‘(ii) a lump sum payment that— 
‘‘(I) results in a shortening of the 
payment period with respect to an an-
nuity or a full or partial commutation 
of the future annuity payments, pro-
vided that such lump sum is deter-
mined 
using 
reasonable 
actuarial 
methods and assumptions, as deter-
mined in good faith by the issuer of 
the contract, or 
‘‘(II) accelerates the receipt of 
annuity payments that are scheduled 
to be received within the ensuing 12
months, regardless of whether such 
acceleration shortens the payment pe-
riod with respect to the annuity, re-
duces the dollar amount of benefits to 
be paid under the contract, or results 
in a suspension of annuity payments 
during the period being accelerated, 
‘‘(iii) an amount which is in the na-
ture of a dividend or similar distribution, 
provided that the issuer of the contract de-
termines such amount based on a reason-
able comparison of the actuarial factors as-
sumed when calculating the initial annuity 
payments and the issuer’s experience with 
respect to those factors, or 
‘‘(iv) a final payment upon death that 
does not exceed the excess of the total 
amount of the consideration paid for the 
annuity payments, less the aggregate 
amount of prior distributions or payments 
from or under the contract.’’. 
(b) EFFECTIVE DATE.—This section shall apply to 
calendar years ending after the date of the enactment of 
this Act.
SEC. 202. QUALIFYING LONGEVITY ANNUITY CONTRACTS. 
(a) IN GENERAL.—Not later than the date which is 
1 year after the date of the enactment of this Act, the 
Secretary of the Treasury or the Secretary’s delegate 
(hereafter in this section referred to as the ‘‘Secretary’’) 
shall amend the regulation issued by the Department of 
the Treasury relating to ‘‘Longevity Annuity Contracts’’ 
(79 Fed. Reg. 37633 (July 2, 2014)), as follows: 
(1) REPEAL 25-PERCENT PREMIUM LIMIT.—The 
Secretary shall amend Q&A–17(b)(3) of Treasury 
Regulation section 1.401(a)(9)–6 and Q&A–12(b)(3) 
of Treasury Regulation section 1.408–8 to eliminate 
the requirement that premiums for qualifying lon-
gevity annuity contracts be limited to a percentage 
of an individual’s account balance, and to make such 
corresponding changes to the regulations and related 
forms as are necessary to reflect the elimination of 
this requirement. 
(2) FACILITATE JOINT AND SURVIVOR BENE-
FITS.—The Secretary shall amend Q&A–17(c) of 
Treasury Regulation section 1.401(a)(9)–6, and 
make such corresponding changes to the regulations 
and related forms as are necessary, to provide that, 
in the case of a qualifying longevity annuity contract 
which was purchased with joint and survivor annuity 
benefits for the individual and the individual’s
spouse which were permissible under the regulations 
at the time the contract was originally purchased, a 
divorce occurring after the original purchase and be-
fore the annuity payments commence under the con-
tract will not affect the permissibility of the joint 
and survivor annuity benefits or other benefits under 
the contract, or require any adjustment to the 
amount or duration of benefits payable under the 
contract, provided that any qualified domestic rela-
tions order (within the meaning of section 414(p) of 
the Internal Revenue Code of 1986) or, in the case 
of an arrangement not subject to section 414(p) of 
such Code or section 206(d) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1056(d)), any divorce or separation instrument (as 
defined in subsection (b))— 
(A) provides that the former spouse is en-
titled to the survivor benefits under the con-
tract; 
(B) does not modify the treatment of the 
former spouse as the beneficiary under the con-
tract who is entitled to the survivor benefits; or 
(C) does not modify the treatment of the 
former spouse as the measuring life for the sur-
vivor benefits under the contract.
(3) PERMIT SHORT FREE LOOK PERIOD.—The 
Secretary shall amend Q&A–17(a)(4) of Treasury 
Regulation section 1.401(a)(9)–6 to ensure that 
such Q&A does not preclude a contract from includ-
ing a provision under which an employee may re-
scind the purchase of the contract within a period 
not exceeding 90 days from the date of purchase. 
(b) DIVORCE OR SEPARATION INSTRUMENT.—For 
purposes of subsection (a)(2), the term ‘‘divorce or separa-
tion instrument’’ means— 
(1) a decree of divorce or separate maintenance 
or a written instrument incident to such a decree, 
(2) a written separation agreement, or 
(3) a decree (not described in paragraph (1)) 
requiring a spouse to make payments for the sup-
port or maintenance of the other spouse. 
(c) EFFECTIVE DATES, ENFORCEMENT, AND INTER-
PRETATIONS.— 
(1) EFFECTIVE DATES.— 
(A) Paragraph (1) of subsection (a) shall 
be effective with respect to contracts purchased 
or received in an exchange on or after the date 
of the enactment of this Act. 
(B) Paragraphs (2) and (3) of subsection 
(a) shall be effective with respect to contracts
purchased or received in an exchange on or 
after July 2, 2014. 
(2) ENFORCEMENT AND INTERPRETATIONS.— 
Prior to the date on which the Secretary issues final 
regulations pursuant to subsection (a)— 
(A) the Secretary (or delegate) shall ad-
minister and enforce the law in accordance with 
subsection (a) and the effective dates in para-
graph (1) of this subsection; and 
(B) taxpayers may rely upon their reason-
able good faith interpretations of subsection (a). 
(d) REGULATORY SUCCESSOR PROVISION.—Any ref-
erence to a regulation under this section shall be treated 
as including a reference to any successor regulation there-
to. 
SEC. 
203. 
INSURANCE-DEDICATED 
EXCHANGE-TRADED 
FUNDS. 
(a) IN GENERAL.—Not later than the date which is 
7 years after the date of the enactment of this Act, the 
Secretary of the Treasury (or the Secretary’s delegate) 
shall amend the regulation issued by the Department of 
the Treasury relating to ‘‘Income Tax; Diversification Re-
quirements for Variable Annuity, Endowment, and Life 
Insurance Contracts’’, 54 Fed. Reg. 8728 (March 2, 
1989), and make any necessary corresponding amend-
ments to other regulations, in order to facilitate the use 
of exchange-traded funds as investment options under 
variable contracts within the meaning of section 817(d) 
of the Internal Revenue Code of 1986, in accordance with 
subsections (b) and (c) of this section. 
(b) DESIGNATE CERTAIN AUTHORIZED PARTICI-
PANTS AND MARKET MAKERS AS ELIGIBLE INVESTORS.— 
The Secretary of the Treasury (or the Secretary’s dele-
gate) shall amend Treasury Regulation section 1.817– 
5(f)(3) to provide that satisfaction of the requirements in 
Treasury Regulation section 1.817–5(f)(2)(i) with respect 
to an exchange-traded fund shall not be prevented by rea-
son of beneficial interests in such a fund being held by 
1 or more authorized participants or market makers. 
(c) DEFINE
RELEVANT
TERMS.—In amending 
Treasury Regulation section 1.817–5(f)(3) in accordance 
with subsections (b) of this section, the Secretary of the 
Treasury (or the Secretary’s delegate) shall provide defini-
tions consistent with the following: 
(1) EXCHANGE-TRADED FUND.—The term ‘‘ex-
change-traded fund’’ means a regulated investment 
company, partnership, or trust— 
(A) that is registered with the Securities 
and Exchange Commission as an open-end in-
vestment company or a unit investment trust;
(B) the shares of which can be purchased 
or redeemed directly from the fund only by an 
authorized participant; and 
(C) the shares of which are traded 
throughout the day on a national stock ex-
change at market prices that may or may not 
be the same as the net asset value of the 
shares. 
(2) AUTHORIZED
PARTICIPANT.—The term 
‘‘authorized participant’’ means a financial institu-
tion that is a member or participant of a clearing 
agency registered under section 17A(b) of the Secu-
rities Exchange Act of 1934 that enters into a con-
tractual relationship with an exchange-traded fund 
pursuant to which the financial institution is per-
mitted to purchase and redeem shares directly from 
the fund and to sell such shares to third parties, but 
only if the contractual arrangement or applicable law 
precludes the financial institution from— 
(A) purchasing the shares for its own in-
vestment purposes rather than for the exclusive 
purpose of creating and redeeming such shares 
on behalf of third parties; and 
(B) selling the shares to third parties who 
are not market makers or otherwise described
in paragraphs (2) and (3) of Treasury Regula-
tion section 1.817–5(f). 
(3) MARKET
MAKER.—The term ‘‘market 
maker’’ means a financial institution that is a reg-
istered broker or dealer under section 15(b) of the 
Securities Exchange Act of 1934 that maintains li-
quidity for an exchange-traded fund on a national 
stock exchange by being always ready to buy and sell 
shares of such fund on the market, but only if the 
financial institution is contractually or legally pre-
cluded from selling or buying such shares to or from 
persons who are not authorized participants or oth-
erwise described in paragraphs (2) and (3) of Treas-
ury Regulations section 1.817–5(f). 
(d) EFFECTIVE DATE.—Subsections (b) and (c) shall 
apply to segregated asset account investments made on 
or after the date that is 7 years after the date of the enact-
ment of this Act. 
TITLE III—SIMPLIFICATION AND 
CLARIFICATION OF RETIRE-
MENT PLAN RULES 
SEC. 301. RECOVERY OF RETIREMENT PLAN OVERPAY-
MENTS. 
(a) 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 
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 
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 
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 for any period.
‘‘(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 
‘‘(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 for purposes 
of this subparagraph. 
‘‘(D) Efforts to recoup overpayments are— 
‘‘(i) not accompanied by threats of 
litigation, unless the responsible plan fidu-
ciary reasonably believes it could prevail in 
a civil action brought in Federal or State 
court to recoup the overpayments, and 
‘‘(ii) not made through a collection 
agency or similar third party, unless the 
participant or beneficiary ignores or rejects 
efforts to recoup the overpayment following 
either a final judgment in Federal or State 
court or a settlement between the partici-
pant or beneficiary and the plan, in either 
case authorizing such recoupment. 
‘‘(E) Recoupment of past overpayments to 
a participant is not sought from any beneficiary 
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 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-
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.’’. 
(b) OVERPAYMENTS UNDER INTERNAL REVENUE 
CODE OF 1986.— 
(1) QUALIFICATION
REQUIREMENTS.—Section 
414 of the Internal Revenue Code of 1986, as 
amended by this preceding provisions of this Act, is 
amended by adding at the end the following new 
subsection: 
‘‘(bb) SPECIAL RULES APPLICABLE
TO BENEFIT 
OVERPAYMENTS.— 
‘‘(1) IN GENERAL.—A plan shall not fail to be 
treated as described in clause (i), (ii), (iii), or (iv) 
of section 219(g)(5)(A) (and shall not fail to be 
treated as satisfying the requirements of section 
401(a) or 403) merely because— 
‘‘(A) the plan fails to obtain payment from 
any participant, beneficiary, employer, plan 
sponsor, fiduciary, or other party on account of
any inadvertent benefit overpayment made by 
the plan, or 
‘‘(B) the plan sponsor amends the plan to 
increase past or future benefit payments to af-
fected participants and beneficiaries in order to 
adjust for prior inadvertent benefit overpay-
ments. 
‘‘(2) REDUCTION
IN
FUTURE
BENEFIT
PAY-
MENTS
AND
RECOVERY
FROM
RESPONSIBLE 
PARTY.—Paragraph (1) shall not fail to apply to a 
plan merely because, after discovering a benefit over-
payment, such plan— 
‘‘(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 such overpayment. 
‘‘(3) EMPLOYER
FUNDING
OBLIGATIONS.— 
Nothing in this subsection shall relieve an employer 
of any obligation imposed on it to make contribu-
tions to a plan to meet the minimum funding stand-
ards under sections 412 and 430 or to prevent or re-
store an impermissible forfeiture in accordance with 
section 411.
‘‘(4) OBSERVANCE OF BENEFIT LIMITATIONS.— 
Notwithstanding paragraph (1), a plan to which 
paragraph (1) applies shall observe any limitations 
imposed on it by section 401(a)(17) or 415. The 
plan may enforce such limitations using any method 
approved by the Secretary of the Treasury for re-
couping benefits previously paid or allocations pre-
viously made in excess of such limitations. 
‘‘(5) COORDINATION WITH OTHER QUALIFICA-
TION REQUIREMENTS.—The Secretary of the Treas-
ury may issue regulations or other guidance of gen-
eral applicability specifying how benefit overpay-
ments and their recoupment or non-recoupment 
from a participant or beneficiary shall be taken into 
account for purposes of satisfying any requirement 
applicable to a plan to which paragraph (1) ap-
plies.’’. 
(2) ROLLOVERS.—Section 402(c) of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(12) In the case of an inadvertent benefit 
overpayment 
from 
a 
plan 
to 
which 
section 
414(bb)(1) applies that is transferred to an eligible 
retirement plan by or on behalf of a participant or 
beneficiary—
‘‘(A) the portion of such overpayment with 
respect to which recoupment is not sought on 
behalf of the plan shall be treated as having 
been paid in an eligible rollover distribution if 
the payment would have been an eligible roll-
over distribution but for being an overpayment, 
and 
‘‘(B) the portion of such overpayment with 
respect to which recoupment is sought on behalf 
of the plan shall be permitted to be returned to 
such plan and in such case shall be treated as 
an eligible rollover distribution transferred to 
such plan by the participant or beneficiary who 
received such overpayment (and the plans mak-
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 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 retain such over-
payment on behalf of the participant or beneficiary 
(and shall be entitled to treat such overpayment as
plan assets) pending the outcome of such proce-
dures.’’. 
(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 
(2) determinations made before the date of en-
actment of this Act by the responsible plan fidu-
ciary, in the exercise of its fiduciary discretion, not 
to seek recoupment or recovery of all or part of an 
inadvertent 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.— 
‘‘(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.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLO-
CATION FUNDS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of Labor shall 
provide that, in the case of a designated investment alter-
native that contains a mix of asset classes, the adminis-
trator of a plan may, but is not required to, use a bench-
mark that 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; 
(3) the blend is furnished to participants and 
beneficiaries in a manner that is reasonably designed 
to be understandable; and 
(4) each securities market index that is used for 
an associated asset class would separately satisfy the 
requirements of such regulation for such asset class. 
(b) STUDY.—Not later than 3 years after the date 
of enactment of this Act, the Secretary of Labor shall de-
liver a report to the Committees on Finance and Health, 
Education, Labor, and Pensions of the Senate and the 
Committees on Ways and Means and Education and 
Labor of the House of Representatives regarding the utili-
zation, effectiveness, and participants’ understanding of 
the benchmarking requirements under this section.
SEC. 304. REVIEW AND REPORT TO CONGRESS RELATING 
TO REPORTING AND DISCLOSURE REQUIRE-
MENTS. 
(a) STUDY.—As soon as practicable after the date of 
enactment of this Act, the Secretary of Labor, the Sec-
retary of the Treasury, and the Director of the Pension 
Benefit Guaranty Corporation shall review the reporting 
and disclosure requirements as applicable to each such 
agency head, of— 
(1) the Employee Retirement Income Security 
Act of 1974 applicable to pension plans (as defined 
in section 3(2) of such Act (29 U.S.C. 1002(2)); 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) of such section). 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretary of 
Labor, the Secretary of the Treasury, and the Direc-
tor of the Pension Benefit Guaranty Corporation, 
jointly, and after consultation with a balanced group 
of participant and employer representatives, shall 
with respect to plans referenced in subsection (a) re-
port on the effectiveness of the applicable reporting 
and disclosure requirements and make such rec-
ommendations as may be appropriate to the Com-
mittee on Education and Labor and the Committee 
on Ways and Means of the House of Representatives 
and the Committee on Health, Education, Labor, 
and Pensions and the Committee on Finance of the 
Senate to consolidate, simplify, standardize, and im-
prove such requirements so as to simplify reporting 
for such plans and ensure that plans can furnish 
and participants and beneficiaries timely receive and 
better understand the information they need to mon-
itor their plans, plan for retirement, and obtain the 
benefits they have earned. 
(2) ANALYSIS OF EFFECTIVENESS.—To assess 
the effectiveness of the applicable reporting and dis-
closure requirements, the report shall include an 
analysis, based on plan data, of how participants 
and beneficiaries are providing preferred contact in-
formation, the methods by which plan sponsors and 
plans are furnishing disclosures, and the rate at 
which participants and beneficiaries (grouped by key 
demographics) are receiving, accessing, under-
standing, and retaining disclosures. 
(3) COLLECTION OF INFORMATION.—The agen-
cies shall conduct appropriate surveys and data col-
lection to obtain any needed information.
SEC. 305. ELIMINATING UNNECESSARY PLAN REQUIRE-
MENTS RELATED TO UNENROLLED PARTICI-
PANTS. 
(a) 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 
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 that the participant would be entitled to receive 
notwithstanding 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— 
‘‘(A) the summary plan description pursu-
ant to section 104(b), and 
‘‘(B) any other notices related to eligibility 
under the plan required to be furnished under 
this title, or the Internal Revenue Code of 
1986, in connection with such participant’s ini-
tial eligibility to participate in such plan; 
‘‘(3) is not participating in such plan; 
‘‘(4) does not have an account balance in the 
plan; and 
‘‘(5) satisfies such other criteria as the Sec-
retary of Labor may determine appropriate, as pre-
scribed in guidance issued in consultation with the 
Secretary of Treasury. 
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.
‘‘(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 and rights under the 
plan, with a focus on employer contributions 
and vesting provisions; 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:
‘‘Sec. 111. Eliminating unnecessary plan requirements related to unenrolled 
participants. 
‘‘Sec. 112. Repeal and effective date.’’. 
(b) 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 amended by adding at the end the following new sub-
section: 
‘‘(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-
quired to be furnished under this title to any 
unenrolled participant if the unenrolled participant 
receives— 
‘‘(A) an annual reminder notice of such 
participant’s eligibility to participate in such 
plan and any applicable election deadlines under 
the plan, and 
‘‘(B) any document requested by such par-
ticipant that the participant would be entitled 
to receive notwithstanding 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— 
‘‘(i) the summary plan description 
pursuant to section 104(b) of the Em-
ployee Retirement Income Security Act of 
1974, and 
‘‘(ii) any other notices related to eligi-
bility under the plan and required to be 
furnished under this title, or the Employee 
Retirement Income Security Act of 1974, 
in connection with such participant’s initial 
eligibility to participate in such plan, 
‘‘(C) is not participating in such plan, 
‘‘(D) does not have an account balance in 
the plan, and 
‘‘(E) satisfies such other criteria as the 
Secretary of the Treasury may determine ap-
propriate, as prescribed in guidance issued in 
consultation with the Secretary of Labor. 
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.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2022. 
SEC. 306. RETIREMENT SAVINGS LOST AND FOUND. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT OF RETIREMENT SAVINGS 
LOST AND FOUND.—Part 5 of title I of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1341 et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 523. RETIREMENT SAVINGS LOST AND FOUND. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN
GENERAL.—Not later than 2 years 
after the date of the enactment of this section, the 
Secretary of Labor, in consultation with the Sec-
retary of the Treasury, shall establish an online 
searchable database (to be managed by the Depart-
ment of Labor in accordance with this section) to be
known as the ‘Retirement Savings Lost and Found’. 
The Retirement Savings Lost and Found shall— 
‘‘(A) allow an individual to search for in-
formation that enables the individual to locate 
the administrator of any plan described in para-
graph (2) with respect to which the individual 
is or was a participant or beneficiary, and pro-
vide contact information for the administrator 
of any such plan; 
‘‘(B) allow the Department of Labor to as-
sist such an individual in locating any such plan 
of the individual; and 
‘‘(C) allow the Department of Labor to 
make any necessary changes to contact infor-
mation on record for the 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 address of the admin-
istrator, or other causes. 
The Retirement Savings Lost and Found established 
under this paragraph shall include information re-
ported under this section and other relevant infor-
mation obtained by the Department of Labor.
‘‘(2) PLANS DESCRIBED.—A plan described in 
this paragraph is a plan to which the vesting stand-
ards of section 203 apply. 
‘‘(b) ADMINISTRATION.—The Retirement Savings 
Lost and Found established under subsection (a) shall 
provide individuals described in subsection (a)(1) only 
with the ability to search for information that enables the 
individual to locate the administrator and contact informa-
tion for the administrator of any plan with respect to 
which the individual is or was a participant or beneficiary, 
sufficient to allow the individual to locate the individual’s 
plan in order to recover any benefit owing to the individual 
under the plan. 
‘‘(c) SAFEGUARDING PARTICIPANT PRIVACY AND SE-
CURITY.—In establishing the Retirement Savings Lost 
and Found under subsection (a), the Department of Labor 
shall take all necessary and proper precautions to ensure 
that individuals’ plan information maintained by the Re-
tirement Savings Lost and Found is protected. 
‘‘(d) DEFINITION
OF ADMINISTRATOR.—For pur-
poses of this section, the term ‘administrator’ has the 
meaning given such term in section 3(16)(A). 
‘‘(e) INFORMATION COLLECTION FROM PLANS.—Ef-
fective with respect to plan years beginning after the sec-
ond December 31 occurring after the date of the enact-
ment of this subsection, the administrator of a plan to 
which the vesting standards of section 203 apply shall sub-
mit to the Department of Labor, at such time and in such 
form and manner as is prescribed in regulations— 
‘‘(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) and (B) of section 6057(a)(2) of such 
Code; 
‘‘(3) the name and taxpayer identifying number 
of each participant or former participant in the 
plan— 
‘‘(A) who, during the current plan year or 
any previous plan year, was reported under sec-
tion 6057(a)(2)(C) of such Code, and with re-
spect to whom the benefits described in clause 
(ii) thereof were fully paid during the plan year; 
‘‘(B) with respect to whom any amount 
was distributed under section 401(a)(31)(B) of 
such Code during the plan year; or 
‘‘(C) with respect to whom a deferred an-
nuity contract was distributed during the plan 
year;
‘‘(4) in the case of a participant or former par-
ticipant to whom paragraph (3) applies— 
‘‘(A) in the case of a participant described 
in subparagraph (B) thereof, the name and ad-
dress of the designated trustee or issuer de-
scribed in section 401(a)(31)(B)(i) of such 
Code and the account number of the individual 
retirement plan to which the amount was dis-
tributed; and 
‘‘(B) in the case of a participant described 
in subparagraph (C) thereof, the name and ad-
dress of the issuer of such annuity contract and 
the contract or certificate number; and 
‘‘(5) such other information as the Secretary of 
Labor may require. 
‘‘(f) INFORMATION COLLECTION FROM FEDERAL 
AGENCIES.—On request, the Secretary of Labor may ac-
cess and receive such information collected by other Fed-
eral agencies as may be necessary and appropriate to per-
form work related to the Retirement Savings Lost and 
Found. 
‘‘(g) PROGRAM INTEGRITY AUDIT.—On an annual 
basis for each of the first 5 years beginning one year after 
the establishment of the database in subsection (a)(1) and 
every 5 years thereafter, the Inspector General of the De-
partment of Labor shall conduct an audit of the adminis-
tration of the Retirement Savings Lost and Found.’’. 
(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-
ed by inserting after the item relating to section 522 
the following: 
‘‘Sec. 523.Retirement Savings Lost and Found.’’. 
SEC. 307. UPDATING DOLLAR LIMIT FOR MANDATORY DIS-
TRIBUTIONS. 
(a) IN GENERAL.—Section 203(e)(1) of the Em-
ployee Retirement Income Security Act of 1974 and sec-
tions 401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal 
Revenue Code of 1986 are each amended by striking 
‘‘$5,000’’ and inserting ‘‘$7,000’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2022. 
SEC. 308. 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 2021–30, 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 2021–30 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-
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 2021–30 (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. 
(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-
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 2021–30 (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 
guidance issued thereunder and including those principles 
and corrections set forth in Revenue Procedure 2021–30 
(or any successor guidance).’’ 
SEC. 309. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE-
QUIREMENT FOR GOVERNMENTAL SECTION 
457(b) PLANS. 
(a) IN GENERAL.—Section 457(b)(4) 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. 
SEC. 310. 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.—Sec-
tion 408(d)(8) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(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 
‘‘(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 
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— 
‘‘(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).’’. 
(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 2022, 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 2021’ 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.’’. 
(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. 311. 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 amended 
by striking ‘‘IN GOVERNMENTAL PLANS’’ and inserting 
‘‘AND PRIVATE SECTOR FIREFIGHTERS’’ 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2022.
SEC. 312. 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: 
‘‘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
100 
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. 
‘‘(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.
101 
‘‘(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.’’. 
(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, 2027. 
SEC. 313. 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
102 
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 
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. 314. 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
103 
(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 
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.—
104 
(1) IN
GENERAL.—The Secretary of Labor 
shall, not later than December 31, 2022, 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-
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
105 
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-
tions), the Secretary of Labor shall, not later than 
December 31, 2022, 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;
106 
(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 
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, 2023.
107 
SEC. 315. 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-
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. 316. 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
108 
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. 
SEC. 317. 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.—
109 
(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 
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) 
of such Code 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 distribution is on account of a financial 
need of a type that is deemed in regulations pre-
scribed 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.’’.
110 
(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 to 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 
participant is faced with unforeseeable emergency of 
a type that is 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, 2022. 
SEC. 318. 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:
111 
‘‘(I) DISTRIBUTIONS
FROM
RETIREMENT 
PLANS 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 
‘‘(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
112 
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 
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
113 
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 
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
114 
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 
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-
115 
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-
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-
116 
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. 
‘‘(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.
117 
‘‘(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 
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. 319. REFORM OF FAMILY ATTRIBUTION RULES. 
(a) CONTROLLED GROUPS.—Section 414(b) of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—For purposes of’’, and 
(2) 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:
118 
‘‘(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 
not be attributed to such spouse by reason of 
section 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 the application of 
paragraph (2) causes two or more entities to be a 
controlled group, or to no longer be in a controlled 
group, such change shall be treated as a transaction 
to which section 410(b)(6)(C) applies.’’. 
(b) 
AFFILIATED
SERVICE
GROUPS.—Section 
414(m)(6)(B) of such Code is amended—
119 
(1) by striking ‘‘OWNERSHIP.—In determining’’ 
and inserting the following: ‘‘OWNERSHIP.— 
‘‘(i) IN GENERAL.—In determining’’, 
and 
(2) by adding at the end the following new 
clauses: 
‘‘(ii) SPECIAL RULES FOR APPLYING 
FAMILY
ATTRIBUTION.—For purposes of 
applying the attribution rules under section 
318 with respect to clause (i), the following 
rules apply: 
‘‘(I) Community property laws 
shall be disregarded for purposes of 
determining ownership. 
‘‘(II) Except as provided by the 
Secretary, stock of an individual not 
attributed 
under 
section 
318(a)(1)(A)(i) to such individual’s 
spouse shall not be attributed by rea-
son of section 318(a)(1)(A)(ii) to such 
spouse from a child who has not at-
tained the age of 21 years. 
‘‘(III) Except as provided by the 
Secretary, in the case of stock in dif-
ferent corporations that is attributed