In the House of Representatives, U. S., 
December 20, 2018. 
Resolved, That the House agree to the amendment of the 
Senate to the bill (H.R. 88) entitled ‘‘An Act to modify the 
boundary of the Shiloh National Military Park located in 
Tennessee and Mississippi, to establish Parker’s Crossroads 
Battlefield as an affiliated area of the National Park System, 
and for other purposes.’’, with the following 
HOUSE AMENDMENT TO SENATE AMENDMENT: 
In lieu of the matter proposed to be inserted by the 
amendment of the Senate, insert the following: 
DIVISION A—RETIREMENT, SAV-
INGS, AND OTHER TAX RE-
LIEF ACT OF 2018 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the 
Retirement, Savings, and Other Tax Relief Act of 2018. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this division an amend-
ment or repeal is expressed in terms of an amendment to, 
or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision 
of the Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 1. Short title, etc. 
TITLE I—DISASTER TAX RELIEF 
Sec. 101. Definitions. 
Sec. 102. Special disaster-related rules for use of retirement funds. 
Sec. 103. Employee retention credit for employers affected by qualified disasters. 
Sec. 104. Other disaster-related tax relief provisions. 
Sec. 105. Treatment of certain possessions. 
Sec. 106. Automatic extension of filing deadline. 
TITLE II—RETIREMENT AND SAVINGS 
Subtitle A—Expanding and Preserving Retirement Savings 
Sec. 201. Multiple employer plans; pooled employer plans. 
Sec. 202. Rules relating to election of safe harbor 401(k) status. 
Sec. 203. Certain taxable non-tuition fellowship and stipend payments treated as 
compensation for IRA purposes. 
Sec. 204. Repeal of maximum age for traditional IRA contributions. 
Sec. 205. Qualified employer plans prohibited from making loans through credit 
cards and other similar arrangements. 
Sec. 206. Portability of lifetime income investments. 
Sec. 207. Treatment of custodial accounts on termination of section 403(b) plans. 
Sec. 208. Clarification of retirement income account rules relating to church-con-
trolled organizations. 
Sec. 209. Increase in 10 percent cap for automatic enrollment safe harbor after 
1st plan year. 
Sec. 210. Increase in credit limitation for small employer pension plan startup 
costs. 
Sec. 211. Small employer automatic enrollment credit. 
Sec. 212. Exemption from required minimum distribution rules for individuals 
with certain account balances. 
Sec. 213. Elective deferrals by members of the Ready Reserve of a reserve compo-
nent of the Armed Forces. 
Subtitle B—Administrative Improvements 
Sec. 221. Plan adopted by filing due date for year may be treated as in effect 
as of close of year. 
Sec. 222. Modification of nondiscrimination rules to protect older, longer service 
participants. 
Sec. 223. Fiduciary safe harbor for selection of lifetime income provider. 
Sec. 224. Disclosure regarding lifetime income. 
Sec. 225. Modification of PBGC premiums for CSEC plans. 
Subtitle C—Other Savings Provisions 
Sec. 231. Expansion of section 529 plans. 
Sec. 232. Penalty-free withdrawals from retirement plans for individuals in case 
of birth of child or adoption.
TITLE III—REPEAL OR DELAY OF CERTAIN HEALTH-RELATED 
TAXES 
Sec. 301. Extension of moratorium on medical device excise tax. 
Sec. 302. Delay in implementation of excise tax on high cost employer-sponsored 
health coverage. 
Sec. 303. Extension of suspension of annual fee on health insurance providers. 
Sec. 304. Repeal of excise tax on indoor tanning services. 
TITLE IV—CERTAIN EXPIRING PROVISIONS 
Sec. 401. Railroad track maintenance credit made permanent. 
Sec. 402. Biodiesel and renewable diesel provisions extended and phased out. 
TITLE V—OTHER PROVISIONS 
Sec. 501. Technical amendments relating to Public Law 115–97. 
Sec. 502. Clarification of treatment of veterans as specified group for purposes of 
the low-income housing tax credit. 
Sec. 503. Clarification of general public use requirement for qualified residential 
rental projects. 
Sec. 504. Floor plan financing applicable to certain trailers and campers. 
Sec. 505. Repeal of increase in unrelated business taxable income by disallowed 
fringe. 
Sec. 506. Certain purchases of employee-owned stock disregarded for purposes of 
foundation tax on excess business holdings. 
Sec. 507. Allowing 501(c)(3) organization to make statements relating to political 
campaign in ordinary course of carrying out its tax exempt pur-
pose. 
Sec. 508. Charitable organizations permitted to make collegiate housing and in-
frastructure grants. 
Sec. 509. Restriction on regulation of contingency fees with respect to tax returns, 
etc. 
TITLE I—DISASTER TAX RELIEF 
SEC. 101. DEFINITIONS. 
For purposes of this title— 
(1) GENERAL DEFINITIONS.— 
(A) QUALIFIED DISASTER AREA.—The term 
‘‘qualified disaster area’’ means the Hurricane 
Florence disaster area; the Hurricane Michael 
disaster area; the Typhoon Mangkhut disaster 
area; the Typhoon Yutu disaster area; the 
Mendocino wildfire disaster area; the Camp and
Woolsey wildfire disaster area; the Kilauea vol-
canic eruption and earthquakes disaster area; the 
Hawaii severe storms, flooding, landslides, and 
mudslides disaster area; the Wisconsin severe 
storms, tornadoes, straight-line winds, flooding, 
and landslides disaster area; the Texas severe 
storms and flooding disaster area; the North 
Carolina tornado and severe storms disaster 
area; the Indiana severe storms and flooding dis-
aster area; the Alabama severe storms and torna-
does disaster area; and the Tropical Storm Gita 
disaster area. 
(B) QUALIFIED DISASTER ZONE.—The term 
‘‘qualified disaster zone’’ means that portion of 
any qualified disaster area which is determined 
by the President to warrant individual or indi-
vidual and public assistance from the Federal 
Government under the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act by 
reason of the qualified disaster with respect to 
such disaster area. 
(C) 
QUALIFIED
DISASTER.—The 
term 
‘‘qualified disaster’’ means, with respect to any 
qualified disaster area, the disaster by reason of
which a major disaster was declared with respect 
to such area. 
(2) HURRICANE FLORENCE.— 
(A) 
HURRICANE
FLORENCE
DISASTER 
AREA.—The term ‘‘Hurricane Florence disaster 
area’’ means an area with respect to which a 
major disaster has been declared by the President 
on or before December 17, 2018, under section 
401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of Hurri-
cane Florence. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of Hurricane Florence is 
September 7, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of Hurricane Florence is the period begin-
ning on the incident beginning date of Hurri-
cane Florence and ending on October 8, 2018. 
(3) HURRICANE MICHAEL.— 
(A) 
HURRICANE
MICHAEL
DISASTER 
AREA.—The term ‘‘Hurricane Michael disaster 
area’’ means an area with respect to which a 
major disaster has been declared by the President 
on or before December 17, 2018, under section 
401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act by reason of Hurri-
cane Michael. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of Hurricane Michael is Oc-
tober 7, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of Hurricane Michael is the period begin-
ning on the incident beginning date of Hurri-
cane Michael and ending on October 23, 2018. 
(4) TYPHOON MANGKHUT.— 
(A) 
TYPHOON
MANGKHUT
DISASTER 
AREA.—The term ‘‘Typhoon Mangkhut disaster 
area’’ means an area with respect to which a 
major disaster has been declared by the President 
on or before December 17, 2018, under section 
401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of Typhoon 
Mangkhut. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of Typhoon Mangkhut is 
September 10, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of Typhoon Mangkhut is the period begin-
ning on the incident beginning date of Typhoon 
Mangkhut and ending on September 11, 2018.
(5) TYPHOON YUTU.— 
(A) TYPHOON YUTU DISASTER AREA.—The 
term ‘‘Typhoon Yutu disaster area’’ means an 
area with respect to which a major disaster has 
been declared by the President on or before De-
cember 17, 2018, under section 401 of the Robert 
T. Stafford Disaster Relief and Emergency As-
sistance Act by reason of Typhoon Yutu. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of Typhoon Yutu is October 
24, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of Typhoon Yutu is the period beginning on 
the incident beginning date of Typhoon Yutu 
and ending on October 26, 2018. 
(6) MENDOCINO WILDFIRE.— 
(A) 
MENDOCINO
WILDFIRE
DISASTER 
AREA.—The term ‘‘Mendocino wildfire disaster 
area’’ means an area with respect to which, dur-
ing the period beginning on August 4, 2018, and 
ending on December 17, 2018, a major disaster 
has been declared by the President under section 
401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of the wild-
fire in California commonly known as the
Mendocino wildfire of 2018 (including the Carr 
wildfire of 2018). 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the wildfires referred to in 
subparagraph (A) is July 23, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of the wildfires referred to in subparagraph 
(A) is the period beginning on the incident be-
ginning date of such wildfires and ending on 
September 19, 2018. 
(7) CAMP AND WOOLSEY WILDFIRES.— 
(A) CAMP
AND
WOOLSEY
WILDFIRE
DIS-
ASTER
AREA.—The term ‘‘Camp and Woolsey 
wildfire disaster area’’ means an area with re-
spect to which, during the period beginning on 
November 12, 2018, and ending on December 17, 
2018, a major disaster has been declared by the 
President under section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assist-
ance Act by reason of the wildfires in California 
commonly known as the Camp and Woolsey 
wildfires of 2018 (including the Hill wildfire of 
2018).
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the wildfires referred to in 
subparagraph (A) is November 8, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of the wildfires referred to in subparagraph 
(A) is the period beginning on the incident be-
ginning date of such wildfires and ending on No-
vember 25, 2018. 
(8) KILAUEA VOLCANIC ERUPTION AND EARTH-
QUAKES.— 
(A) KILAUEA
VOLCANIC
ERUPTION
AND 
EARTHQUAKES
DISASTER
AREA.—The 
term 
‘‘Kilauea volcanic eruption and earthquakes dis-
aster area’’ means an area with respect to which, 
during the period beginning on May 11, 2018, 
and ending on December 17, 2018, a major dis-
aster has been declared by the President under 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason 
of the Kilauea volcanic eruption and earthquakes 
occurring in Hawaii during the period begin-
ning on May 3, 2018, and ending on August 17, 
2018. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the volcanic eruption and
earthquakes referred to in subparagraph (A) is 
May 3, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of the volcanic eruption and earthquakes re-
ferred to in subparagraph (A) is the period be-
ginning on the incident beginning date with re-
spect to such eruption and earthquakes and end-
ing on August 17, 2018. 
(9) HAWAII SEVERE STORMS, FLOODING, LAND-
SLIDES, AND MUDSLIDES.— 
(A) HAWAII
SEVERE
STORMS, FLOODING, 
LANDSLIDES, 
AND
MUDSLIDES
DISASTER 
AREA.—The term ‘‘Hawaii severe storms, flood-
ing, landslides, and mudslides disaster area’’ 
means an area with respect to which, during the 
period beginning on May 8, 2018, and ending on 
December 17, 2018, a major disaster has been de-
clared by the President under section 401 of the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act by reason of the severe 
storms, flooding, landslides, and mudslides oc-
curring in Hawaii during the period beginning 
on April 13, 2018, and ending on April 16, 
2018.
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the severe storms, flood-
ing, landslides, and mudslides referred to in sub-
paragraph (A) is April 13, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of the severe storms, flooding, landslides, 
and mudslides referred to in subparagraph (A) 
is the period beginning on the incident beginning 
date with respect to such severe storms, flooding, 
landslides, and mudslides and ending on April 
16, 2018. 
(10) WISCONSIN SEVERE STORMS, TORNADOES, 
STRAIGHT-LINE
WINDS, 
FLOODING, 
AND
LAND-
SLIDES.— 
(A) WISCONSIN
SEVERE
STORMS, TORNA-
DOES, STRAIGHT-LINE
WINDS, FLOODING, AND 
LANDSLIDES DISASTER AREA.—The term ‘‘Wis-
consin severe storms, tornadoes, straight-line 
winds, flooding, and landslides disaster area’’ 
means an area with respect to which, during the 
period beginning on October 18, 2018, and end-
ing on December 17, 2018, a major disaster has 
been declared by the President under section 401 
of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of the severe
storms, tornadoes, straight-line winds, flooding, 
and landslides occurring in Wisconsin during 
the period beginning on August 17, 2018, and 
ending on September 14, 2018. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the severe storms, torna-
does, straight-line winds, flooding, and landslides 
referred to in subparagraph (A) is August 17, 
2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of the severe storms, tornadoes, straight-line 
winds, flooding, and landslides referred to in 
subparagraph (A) is the period beginning on the 
incident beginning date with respect to such se-
vere storms, tornadoes, straight-line winds, flood-
ing, and landslides and ending on September 14, 
2018. 
(11) TEXAS SEVERE STORMS AND FLOODING.— 
(A) TEXAS SEVERE STORMS AND FLOODING 
DISASTER AREA.—The term ‘‘Texas severe storms 
and flooding disaster area’’ means an area with 
respect to which, during the period beginning on 
July 6, 2018, and ending on December 17, 2018, 
a major disaster has been declared by the Presi-
dent under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act by 
reason of the severe storms and flooding occur-
ring in Texas during the period beginning on 
June 19, 2018, and ending on July 13, 2018. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the severe storms and 
flooding referred to in subparagraph (A) is June 
19, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of the severe storms and flooding referred to 
in subparagraph (A) is the period beginning on 
the incident beginning date with respect to such 
severe storms and flooding and ending on July 
13, 2018. 
(12) NORTH CAROLINA TORNADO AND SEVERE 
STORMS.— 
(A) NORTH
CAROLINA
TORNADO
AND
SE-
VERE
STORMS
DISASTER
AREA.—The 
term 
‘‘North Carolina tornado and severe storms dis-
aster area’’ means an area with respect to which, 
during the period beginning on May 8, 2018, 
and ending on December 17, 2018, a major dis-
aster has been declared by the President under 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason
of the tornado and severe storms occurring in 
North Carolina on April 15, 2018. 
(B) INCIDENT BEGINNING DATE; INCIDENT 
PERIOD.—The incident beginning date, and the 
incident period, of the tornado and severe storms 
referred to in subparagraph (A) is April 15, 
2018. 
(13) INDIANA SEVERE STORMS AND FLOODING.— 
(A) INDIANA SEVERE STORMS AND FLOOD-
ING DISASTER AREA.—The term ‘‘Indiana severe 
storms and flooding disaster area’’ means an 
area with respect to which, during the period be-
ginning on May 4, 2018, and ending on Decem-
ber 17, 2018, a major disaster has been declared 
by the President under section 401 of the Robert 
T. Stafford Disaster Relief and Emergency As-
sistance Act by reason of the severe storms and 
flooding occurring in Indiana during the period 
beginning on February 14, 2018, and ending on 
March 4, 2018. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the severe storms and 
flooding referred to in subparagraph (A) is Feb-
ruary 14, 2018.
(C) INCIDENT
PERIOD.—The incident pe-
riod of the severe storms and flooding referred to 
in subparagraph (A) is the period beginning on 
the incident beginning date with respect to such 
severe storms and flooding and ending on March 
4, 2018. 
(14) ALABAMA
SEVERE
STORMS
AND
TORNA-
DOES.— 
(A) ALABAMA SEVERE STORMS AND TORNA-
DOES DISASTER AREA.—The term ‘‘Alabama se-
vere storms and tornadoes disaster area’’ means 
an area with respect to which, during the period 
beginning on April 26, 2018, and ending on De-
cember 17, 2018, a major disaster has been de-
clared by the President under section 401 of the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act by reason of the severe 
storms and tornadoes occurring in Alabama dur-
ing the period beginning on March 19, 2018, and 
ending on March 20, 2018. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of the severe storms and tor-
nadoes referred to in subparagraph (A) is March 
19, 2018.
(C) INCIDENT
PERIOD.—The incident pe-
riod of the severe storms and tornadoes referred 
to in subparagraph (A) is the period beginning 
on the incident beginning date with respect to 
such severe storms and tornadoes and ending on 
March 20, 2018. 
(15) TROPICAL STORM GITA.— 
(A) 
TROPICAL
STORM
GITA
DISASTER 
AREA.—The term ‘‘Tropical Storm Gita disaster 
area’’ means an area with respect to which a 
major disaster has been declared by the President 
on or before December 17, 2018, under section 
401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of Tropical 
Storm Gita. 
(B) INCIDENT BEGINNING DATE.—The inci-
dent beginning date of Tropical Storm Gita is 
February 7, 2018. 
(C) INCIDENT
PERIOD.—The incident pe-
riod of Tropical Storm Gita is the period begin-
ning on the incident beginning date of Tropical 
Storm Gita and ending on February 12, 2018.
SEC. 102. SPECIAL DISASTER-RELATED RULES FOR USE OF 
RETIREMENT FUNDS. 
(a) TAX-FAVORED WITHDRAWALS FROM RETIREMENT 
PLANS.— 
(1) IN GENERAL.—Section 72(t) of the Internal 
Revenue Code of 1986 shall not apply to any quali-
fied disaster distribution. 
(2) AGGREGATE DOLLAR LIMITATION.— 
(A) IN GENERAL.—For purposes of this sub-
section, the aggregate amount of distributions re-
ceived by an individual which may be treated as 
qualified disaster distributions for any taxable 
year shall not exceed the excess (if any) of— 
(i) $100,000, over 
(ii) the aggregate amounts treated as 
qualified disaster distributions received by 
such individual for all prior taxable years. 
(B) 
TREATMENT
OF
PLAN
DISTRIBU-
TIONS.—If a distribution to an individual would 
(without regard to subparagraph (A)) be a quali-
fied disaster distribution, a plan shall not be 
treated as violating any requirement of the In-
ternal Revenue Code of 1986 merely because the 
plan treats such distribution as a qualified dis-
aster distribution, unless the aggregate amount 
of such distributions from all plans maintained
by the employer (and any member of any con-
trolled group which includes the employer) to 
such individual exceeds $100,000. 
(C) CONTROLLED GROUP.—For purposes of 
subparagraph (B), the term ‘‘controlled group’’ 
means any group treated as a single employer 
under subsection (b), (c), (m), or (o) of section 
414 of the Internal Revenue Code of 1986. 
(D) SPECIAL RULE FOR INDIVIDUALS AF-
FECTED
BY
MORE
THAN
ONE
DISASTER.—The 
limitation of subparagraph (A) shall be applied 
separately with respect to distributions made 
with respect to each qualified disaster which is 
described in a separate paragraph of section 101. 
(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(A) IN GENERAL.—Any individual who re-
ceives a qualified disaster distribution may, at 
any time during the 3-year period beginning on 
the day after the date on which such distribution 
was received, make 1 or more contributions in 
an aggregate amount not to exceed the amount 
of such distribution to an eligible retirement 
plan of which such individual is a beneficiary 
and to which a rollover contribution of such dis-
tribution could be made under section 402(c),
403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of 
the Internal Revenue Code of 1986, as the case 
may be. 
(B) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS 
OTHER THAN IRAS.—For purposes of the Inter-
nal Revenue Code of 1986, if a contribution is 
made pursuant to subparagraph (A) with respect 
to a qualified disaster distribution from an eligi-
ble retirement plan other than an individual re-
tirement plan, then the taxpayer shall, to the ex-
tent of the amount of the contribution, be treated 
as having received the qualified disaster distribu-
tion in an eligible rollover distribution (as de-
fined in section 402(c)(4) of such Code) and as 
having transferred the amount to the eligible re-
tirement plan in a direct trustee to trustee trans-
fer within 60 days of the distribution. 
(C) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS FROM IRAS.—For purposes of the 
Internal Revenue Code of 1986, if a contribution 
is made pursuant to subparagraph (A) with re-
spect to a qualified disaster distribution from an 
individual retirement plan (as defined by section 
7701(a)(37) of such Code), then, to the extent of
the amount of the contribution, the qualified dis-
aster distribution shall be treated as a distribu-
tion described in section 408(d)(3) of such Code 
and as having been transferred to the eligible re-
tirement plan in a direct trustee to trustee trans-
fer within 60 days of the distribution. 
(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) QUALIFIED DISASTER DISTRIBUTION.— 
Except as provided in paragraph (2), the term 
‘‘qualified disaster distribution’’ means any dis-
tribution from an eligible retirement plan made 
on or after the incident beginning date of a 
qualified disaster and before January 1, 2020, to 
an individual whose principal place of abode at 
any time during the incident period of such 
qualified disaster is located in the qualified dis-
aster area with respect to such qualified disaster 
and who has sustained an economic loss by rea-
son of such qualified disaster. 
(B) ELIGIBLE
RETIREMENT
PLAN.—The 
term ‘‘eligible retirement plan’’ shall have the 
meaning given such term by section 402(c)(8)(B) 
of the Internal Revenue Code of 1986.
(5) INCOME INCLUSION SPREAD OVER 3-YEAR PE-
RIOD.— 
(A) IN GENERAL.—In the case of any quali-
fied disaster distribution, unless the taxpayer 
elects not to have this paragraph apply for any 
taxable year, any amount required to be in-
cluded in gross income for such taxable year 
shall be so included ratably over the 3-taxable- 
year period beginning with such taxable year. 
(B) SPECIAL RULE.—For purposes of sub-
paragraph (A), rules similar to the rules of sub-
paragraph (E) of section 408A(d)(3) of the Inter-
nal Revenue Code of 1986 shall apply. 
(6) SPECIAL RULES.— 
(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE
TO
TRUSTEE
TRANSFER
AND
WITH-
HOLDING
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405 of the Internal Rev-
enue Code of 1986, qualified disaster distribu-
tions shall not be treated as eligible rollover dis-
tributions. 
(B) QUALIFIED
DISASTER
DISTRIBUTIONS 
TREATED AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—For purposes the Internal Rev-
enue Code of 1986, a qualified disaster distribu-
tion shall be treated as meeting the requirements 
of 
sections 
401(k)(2)(B)(I), 
403(b)(7)(A)(ii), 
403(b)(11), and 457(d)(1)(A) of such Code. 
(b) RECONTRIBUTIONS OF WITHDRAWALS FOR HOME 
PURCHASES.— 
(1) RECONTRIBUTIONS.— 
(A) IN GENERAL.—Any individual who re-
ceived a qualified distribution may, during the 
applicable period, make 1 or more contributions 
in an aggregate amount not to exceed the 
amount of such qualified distribution to an eligi-
ble retirement plan (as defined in section 
402(c)(8)(B) of the Internal Revenue Code of 
1986) of which such individual is a beneficiary 
and to which a rollover contribution of such dis-
tribution could be made under section 402(c), 
403(a)(4), 403(b)(8), or 408(d)(3), of such Code, 
as the case may be. 
(B) TREATMENT
OF
REPAYMENTS.—Rules 
similar to the rules of subparagraphs (B) and 
(C) of subsection (a)(3) shall apply for purposes 
of this subsection. 
(2) QUALIFIED DISTRIBUTION.—For purposes of 
this subsection, the term ‘‘qualified distribution’’ 
means any distribution—
(A) described in section 401(k)(2)(B)(i)(IV), 
403(b)(7)(A)(ii) (but only to the extent such dis-
tribution 
relates 
to 
financial 
hardship), 
403(b)(11)(B), or 72(t)(2)(F), of the Internal 
Revenue Code of 1986, 
(B) which was to be used to purchase or 
construct a principal residence in a qualified 
disaster area, but which was not so used on ac-
count of the qualified disaster with respect to 
such area, and 
(C) which was received on or after January 
1, 2018, and before the date which is 30 days 
after the last day of the incident period of such 
qualified disaster. 
(3) APPLICABLE PERIOD.—For purposes of this 
subsection, the term ‘‘applicable period’’ means, in the 
case of a principal residence in a qualified disaster 
area with respect to any qualified disaster, the period 
beginning on the incident beginning date of such 
qualified disaster and ending on February 28, 2019. 
(c) LOANS FROM QUALIFIED PLANS.— 
(1) INCREASE IN LIMIT ON LOANS NOT TREATED 
AS DISTRIBUTIONS.—In the case of any loan from a 
qualified employer plan (as defined under section 
72(p)(4) of the Internal Revenue Code of 1986) to a
qualified individual made during the period begin-
ning on the date of the enactment of this Act and end-
ing on December 31, 2019— 
(A) clause (i) of section 72(p)(2)(A) of such 
Code shall be applied by substituting ‘‘$100,000’’ 
for ‘‘$50,000’’, and 
(B) clause (ii) of such section shall be ap-
plied by substituting ‘‘the present value of the 
nonforfeitable accrued benefit of the employee 
under the plan’’ for ‘‘one-half of the present 
value of the nonforfeitable accrued benefit of the 
employee under the plan’’. 
(2) DELAY OF REPAYMENT.—In the case of a 
qualified individual (with respect to any qualified 
disaster) with an outstanding loan on or after the in-
cident beginning date (of such qualified disaster) from 
a qualified employer plan (as defined in section 
72(p)(4) of the Internal Revenue Code of 1986)— 
(A) if the due date pursuant to subpara-
graph (B) or (C) of section 72(p)(2) of such Code 
for any repayment with respect to such loan oc-
curs during the period beginning on the incident 
beginning date of such qualified disaster and 
ending on December 31, 2019, such due date 
shall be delayed for 1 year,
(B) any subsequent repayments with respect 
to any such loan shall be appropriately adjusted 
to reflect the delay in the due date under para-
graph (1) and any interest accruing during such 
delay, and 
(C) in determining the 5-year period and 
the term of a loan under subparagraph (B) or 
(C) of section 72(p)(2) of such Code, the period 
described in subparagraph (A) of this paragraph 
shall be disregarded. 
(3) QUALIFIED
INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ means 
any individual— 
(A) whose principal place of abode at any 
time during the incident period of any qualified 
disaster is located in the qualified disaster area 
with respect to such qualified disaster, and 
(B) who has sustained an economic loss by 
reason of such qualified disaster. 
(d) PROVISIONS RELATING TO PLAN AMENDMENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any amendment to any plan or annuity contract, 
such plan or contract shall be treated as being oper-
ated in accordance with the terms of the plan during 
the period described in paragraph (2)(B)(i).
(2) AMENDMENTS
TO
WHICH
SUBSECTION
AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or annu-
ity contract which is made— 
(i) pursuant to any provision of this 
section, or pursuant to any regulation 
issued by the Secretary or the Secretary of 
Labor under any provision of this section, 
and 
(ii) on or before the last day of the first 
plan year beginning on or after January 1, 
2020, or such later date as the Secretary 
may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d) of the Internal Revenue Code 
of 1986), clause (ii) shall be applied by sub-
stituting the date which is 2 years after the date 
otherwise applied under clause (ii). 
(B) CONDITIONS.—This subsection shall not 
apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date that this 
section or the regulation described in 
subparagraph (A)(i) takes effect (or in
the case of a plan or contract amend-
ment not required by this section or 
such regulation, the effective date speci-
fied by the plan), and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan or contract amend-
ment is adopted), 
the plan or contract is operated as if such plan 
or contract amendment were in effect, and 
(ii) such plan or contract amendment 
applies retroactively for such period. 
SEC. 103. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 
AFFECTED BY QUALIFIED DISASTERS. 
(a) IN GENERAL.—For purposes of section 38 of the 
Internal Revenue Code of 1986, in the case of an eligible 
employer, the 2018 qualified disaster employee retention 
credit shall be treated as a credit listed in subsection (b) 
of such section. For purposes of this subsection, the 2018 
qualified disaster employee retention credit for any taxable 
year is an amount equal to 40 percent of the qualified wages 
with respect to each eligible employee of such employer for 
such taxable year. For purposes of the preceding sentence, 
the amount of qualified wages which may be taken into ac-
count with respect to any individual shall not exceed 
$6,000. 
(b) DEFINITIONS.—For purposes of this section— 
(1) ELIGIBLE
EMPLOYER.—The term ‘‘eligible 
employer’’ means any employer— 
(A) which conducted an active trade or 
business in a qualified disaster zone at any time 
during the incident period of the qualified dis-
aster with respect to such qualified disaster zone, 
and 
(B) with respect to whom the trade or busi-
ness described in subparagraph (A) is inoperable 
at any time after the incident beginning date of 
such qualified disaster, and before January 1, 
2019, as a result of damage sustained by reason 
of such qualified disaster. 
(2) ELIGIBLE
EMPLOYEE.—The term ‘‘eligible 
employee’’ means with respect to an eligible employer 
an employee whose principal place of employment at 
any time during the incident period of the qualified 
disaster referred to in paragraph (1) with such eligi-
ble employer was in the qualified disaster zone re-
ferred to in such paragraph. 
(3) QUALIFIED
WAGES.—The term ‘‘qualified 
wages’’ means wages (as defined in section 51(c)(1) of
the Internal Revenue Code of 1986, but without re-
gard to section 3306(b)(2)(B) of such Code) paid or 
incurred by an eligible employer with respect to an 
eligible employee at any time after the incident begin-
ning date of the qualified disaster referred to in para-
graph (1), and before January 1, 2019, which occurs 
during the period— 
(A) beginning on the date on which the 
trade or business described in paragraph (1) 
first became inoperable at the principal place of 
employment of the employee immediately before 
the qualified disaster referred to in such para-
graph, and 
(B) ending on the date on which such trade 
or business has resumed significant operations at 
such principal place of employment. 
Such term shall include wages paid without regard to 
whether the employee performs no services, performs 
services at a different place of employment than such 
principal place of employment, or performs services 
at such principal place of employment before signifi-
cant operations have resumed. 
(c) CERTAIN RULES TO APPLY.—For purposes of this 
subsection, rules similar to the rules of sections 51(i)(1),
52, and 280C(a), of the Internal Revenue Code of 1986, 
shall apply. 
(d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE 
THAN ONCE.—An employee shall not be treated as an eligi-
ble employee for purposes of this subsection for any period 
with respect to any employer if such employer is allowed 
a credit under section 51 of the Internal Revenue Code of 
1986 with respect to such employee for such period. 
SEC. 104. OTHER DISASTER-RELATED TAX RELIEF PROVI-
SIONS. 
(a) TEMPORARY SUSPENSION
OF LIMITATIONS
ON 
CHARITABLE CONTRIBUTIONS.— 
(1) IN GENERAL.—Except as otherwise provided 
in paragraph (2), subsection (b) of section 170 of the 
Internal Revenue Code of 1986 shall not apply to 
qualified contributions and such contributions shall 
not be taken into account for purposes of applying 
subsections (b) and (d) of such section to other con-
tributions. 
(2) TREATMENT OF EXCESS CONTRIBUTIONS.— 
For purposes of section 170 of the Internal Revenue 
Code of 1986— 
(A) INDIVIDUALS.—In the case of an indi-
vidual—
(i) LIMITATION.—Any qualified con-
tribution shall be allowed only to the extent 
that the aggregate of such contributions does 
not exceed the excess of the taxpayer’s con-
tribution base (as defined in subparagraph 
(H) of section 170(b)(1) of such Code) over 
the amount of all other charitable contribu-
tions allowed under section 170(b)(1) of 
such Code. 
(ii) CARRYOVER.—If the aggregate 
amount of qualified contributions made in 
the contribution year (within the meaning 
of section 170(d)(1) of such Code) exceeds 
the limitation of clause (i), such excess shall 
be added to the excess described in the por-
tion of subparagraph (A) of such section 
which precedes clause (i) thereof for pur-
poses of applying such section. 
(B) CORPORATIONS.—In the case of a cor-
poration— 
(i) LIMITATION.—Any qualified con-
tribution shall be allowed only to the extent 
that the aggregate of such contributions does 
not exceed the excess of the taxpayer’s tax-
able income (as determined under para-
graph (2) of section 170(b) of such Code) 
over the amount of all other charitable con-
tributions allowed under such paragraph. 
(ii) CARRYOVER.—Rules similar to the 
rules of subparagraph (A)(ii) shall apply 
for purposes of this subparagraph. 
(3) QUALIFIED CONTRIBUTIONS.— 
(A) IN GENERAL.—For purposes of this sub-
section, the term ‘‘qualified contribution’’ means 
any charitable contribution (as defined in sec-
tion 170(c) of the Internal Revenue Code of 
1986) if— 
(i) such contribution— 
(I) is paid during the period be-
ginning on February 7, 2018, and end-
ing on December 31, 2018, in cash to 
an organization described in section 
170(b)(1)(A) of such Code, and 
(II) is made for relief efforts in 
one or more qualified disaster areas, 
(ii) the taxpayer obtains from such or-
ganization contemporaneous written ac-
knowledgment (within the meaning of sec-
tion 170(f)(8) of such Code) that such con-
tribution was used (or is to be used) for re-
lief efforts described in clause (i)(II), and 
(iii) the taxpayer has elected the appli-
cation of this subsection with respect to such 
contribution. 
(B) EXCEPTION.—Such term shall not in-
clude a contribution by a donor if the contribu-
tion is— 
(i) to an organization described in sec-
tion 509(a)(3) of the Internal Revenue Code 
of 1986, or 
(ii) for the establishment of a new, or 
maintenance of an existing, donor advised 
fund (as defined in section 4966(d)(2) of 
such Code). 
(C) APPLICATION OF ELECTION TO PART-
NERSHIPS AND S CORPORATIONS.—In the case of 
a partnership or S corporation, the election 
under subparagraph (A)(iii) shall be made sepa-
rately by each partner or shareholder. 
(b) SPECIAL RULES FOR QUALIFIED DISASTER-RE-
LATED PERSONAL CASUALTY LOSSES.— 
(1) IN GENERAL.—If an individual has a net 
disaster loss for any taxable year—
(A) the amount determined under section 
165(h)(2)(A)(ii) of the Internal Revenue Code of 
1986 shall be equal to the sum of— 
(i) such net disaster loss, and 
(ii) so much of the excess referred to in 
the matter preceding clause (i) of section 
165(h)(2)(A) of such Code (reduced by the 
amount in clause (i) of this subparagraph) 
as exceeds 10 percent of the adjusted gross 
income of the individual, 
(B) section 165(h)(1) of such Code shall be 
applied by substituting ‘‘$500’’ for ‘‘$500 ($100 
for taxable years beginning after December 31, 
2009)’’, 
(C) the standard deduction determined 
under section 63(c) of such Code shall be in-
creased by the net disaster loss, and 
(D) section 56(b)(1)(E) of such Code shall 
not apply to so much of the standard deduction 
as is attributable to the increase under subpara-
graph (C) of this paragraph. 
(2) NET DISASTER LOSS.—For purposes of this 
subsection, the term ‘‘net disaster loss’’ means the ex-
cess of qualified disaster-related personal casualty 
losses over personal casualty gains (as defined in sec-
tion 165(h)(3)(A) of the Internal Revenue Code of 
1986). 
(3) QUALIFIED
DISASTER-RELATED
PERSONAL 
CASUALTY LOSSES.—For purposes of this subsection, 
the term ‘‘qualified disaster-related personal casualty 
losses’’ means losses described in section 165(c)(3) of 
the Internal Revenue Code of 1986 which arise in a 
qualified disaster area on or after the incident begin-
ning date of the qualified disaster to which such area 
relates, and which are attributable to such qualified 
disaster. 
(c) SPECIAL RULE FOR DETERMINING EARNED IN-
COME.— 
(1) IN GENERAL.—In the case of a qualified in-
dividual, if the earned income of the taxpayer for the 
applicable taxable year is less than the earned income 
of the taxpayer for the preceding taxable year, the 
credits allowed under sections 24(d) and 32 of the In-
ternal Revenue Code of 1986 may, at the election of 
the taxpayer, be determined by substituting— 
(A) such earned income for the preceding 
taxable year, for 
(B) such earned income for the applicable 
taxable year.
(2) QUALIFIED
INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ means 
any individual whose principal place of abode at any 
time during the incident period of any qualified dis-
aster was located— 
(A) in the qualified disaster zone with re-
spect to such qualified disaster, or 
(B) in the qualified disaster area with re-
spect to such qualified disaster (but outside the 
qualified disaster zone with respect to such quali-
fied disaster) and such individual was displaced 
from such principal place of abode by reason of 
such qualified disaster. 
(3) APPLICABLE TAXABLE YEAR.—The term ‘‘ap-
plicable taxable year’’ means, with respect to any 
qualified individual, any taxable year which includes 
any day during the incident period of the qualified 
disaster to which the qualified disaster area referred 
to in paragraph (2) relates. 
(4) EARNED INCOME.—For purposes of this sub-
section, the term ‘‘earned income’’ has the meaning 
given such term under section 32(c) of the Internal 
Revenue Code of 1986. 
(5) SPECIAL RULES.—
(A) APPLICATION TO JOINT RETURNS.—For 
purposes of paragraph (1), in the case of a joint 
return for an applicable taxable year— 
(i) such paragraph shall apply if ei-
ther spouse is a qualified individual, and 
(ii) the earned income of the taxpayer 
for the preceding taxable year shall be the 
sum of the earned income of each spouse for 
such preceding taxable year. 
(B) UNIFORM APPLICATION OF ELECTION.— 
Any election made under paragraph (1) shall 
apply with respect to both sections 24(d) and 32 
of the Internal Revenue Code of 1986. 
(C) ERRORS TREATED AS MATHEMATICAL 
ERROR.—For purposes of section 6213 of the In-
ternal Revenue Code of 1986, an incorrect use on 
a return of earned income pursuant to para-
graph (1) shall be treated as a mathematical or 
clerical error. 
(D) NO
EFFECT
ON
DETERMINATION
OF 
GROSS INCOME, ETC.—Except as otherwise pro-
vided in this subsection, the Internal Revenue 
Code of 1986 shall be applied without regard to 
any substitution under paragraph (1).
SEC. 105. TREATMENT OF CERTAIN POSSESSIONS. 
(a) PAYMENTS TO GUAM AND THE COMMONWEALTH OF 
THE NORTHERN MARIANA ISLANDS.—The Secretary of the 
Treasury shall pay to Guam and the Commonwealth of the 
Northern Mariana Islands amounts equal to the loss to that 
possession by reason of the application of the provisions of 
this title. Such amounts shall be determined by the Sec-
retary of the Treasury based on information provided by 
the government of the respective possession. 
(b) PAYMENTS TO AMERICAN SAMOA.— 
(1) IN GENERAL.—The Secretary of the Treasury 
shall pay to American Samoa amounts estimated by 
the Secretary of the Treasury as being equal to the 
aggregate benefits that would have been provided to 
residents of American Samoa by reason of the provi-
sions of this title if a mirror code tax system had been 
in effect in American Samoa. The preceding sentence 
shall not apply unless American Samoa has a plan, 
which has been approved by the Secretary of the 
Treasury, 
under 
which 
American 
Samoa 
will 
promptly distribute such payments to its residents. 
(2) MIRROR CODE TAX SYSTEM.—For purposes 
of this subsection, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if the 
income tax liability of the residents of such possession
under such system is determined by reference to the 
income tax laws of the United States as if such pos-
session were the United States. 
(c) TREATMENT OF PAYMENTS.—For purposes of sec-
tion 1324 of title 31, United States Code, the payments 
under this section shall be treated in the same manner as 
a refund due from a credit provision referred to in sub-
section (b)(2) of such section. 
SEC. 106. AUTOMATIC EXTENSION OF FILING DEADLINE. 
(a) IN GENERAL.—Section 7508A is amended by add-
ing at the end the following new subsection: 
‘‘(d) MANDATORY 60-DAY EXTENSION.—In the case 
of— 
‘‘(1) any individual whose principal place of 
abode is in a disaster area (as defined in section 
165(i)(5)(B)), and 
‘‘(2) any taxpayer if the taxpayer’s principal 
place of business (other than the business of per-
forming services of an employee) is located in a dis-
aster area (as so defined), 
the period beginning on the earliest incident date specified 
in the declaration to which such area relates and ending 
on the date which is 60 days after the latest incident date 
so specified shall be disregarded in the same manner as a 
period specified under subsection (a).’’.
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to Federally declared disasters declared 
after December 31, 2017. 
TITLE II—RETIREMENT AND 
SAVINGS 
Subtitle A—Expanding and 
Preserving Retirement Savings 
SEC. 201. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER 
PLANS. 
(a) QUALIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Section 413 is amended by 
adding at the end the following new subsection: 
‘‘(e) APPLICATION OF QUALIFICATION REQUIREMENTS 
FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH POOLED 
PLAN PROVIDERS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if a defined contribution plan to which 
subsection (c) applies— 
‘‘(A) is maintained by employers which 
have a common interest other than having adopt-
ed the plan, or 
‘‘(B) in the case of a plan not described in 
subparagraph (A), has a pooled plan provider, 
then the plan shall not be treated as failing to meet 
the requirements under this title applicable to a plan
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
such person determines are necessary 
for the plan to meet the requirements 
described in subclause (I), including 
providing to such person any disclo-
sures or other information which the 
Secretary may require or which such 
person otherwise determines are nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments, 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides such 
other information to the Secretary as the 
Secretary may require, before beginning op-
erations as a pooled plan provider, 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary (within 
the meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of 
1974), and the plan administrator, with re-
spect to the plan, and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who are
fiduciaries of, the plan are bonded in ac-
cordance with section 412 of the Employee 
Retirement Income Security Act of 1974. 
‘‘(B) AUDITS, EXAMINATIONS
AND
INVES-
TIGATIONS.—The Secretary may perform audits, 
examinations, and investigations of pooled plan 
providers as may be necessary to enforce and 
carry out the purposes of this subsection. 
‘‘(C) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a per-
son meets the requirements of this paragraph to 
be a pooled plan provider with respect to any 
plan, all persons who perform services for the 
plan and who are treated as a single employer 
under subsection (b), (c), (m), or (o) of section 
414 shall be treated as one person. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the adminis-
trative duties of the pooled plan provider de-
scribed in subparagraph (A)(i), each employer in 
a plan which has a pooled plan provider shall 
be treated as the plan sponsor with respect to the 
portion of the plan attributable to employees of 
such employer (or beneficiaries of such employ-
ees).
‘‘(4) GUIDANCE.—The Secretary shall issue such 
guidance as the Secretary determines appropriate to 
carry out this subsection, including guidance— 
‘‘(A) to identify the administrative duties 
and other actions required to be performed by a 
pooled plan provider under this subsection, 
‘‘(B) which describes the procedures to be 
taken to terminate a plan which fails to meet the 
requirements to be a plan described in para-
graph (1), including the proper treatment of, 
and actions needed to be taken by, any employer 
in the plan and the assets and liabilities of the 
plan attributable to employees of such employer 
(or beneficiaries of such employees), and 
‘‘(C) identifying appropriate cases to which 
the rules of paragraph (2)(A) will apply to em-
ployers in the plan failing to take the actions de-
scribed in paragraph (1). 
The Secretary shall take into account under subpara-
graph (C) whether the failure of an employer or 
pooled plan provider to provide any disclosures or 
other information, or to take any other action, nec-
essary to administer a plan or to allow a plan to 
meet requirements applicable to the plan under sec-
tion 401(a) or 408, whichever is applicable, has con-
tinued over a period of time that demonstrates a lack 
of commitment to compliance. 
‘‘(5) MODEL PLAN.—The Secretary shall publish 
model plan language which meets the requirements of 
this subsection and of paragraphs (43) and (44) of 
section 3 of the Employee Retirement Income Security 
Act of 1974 and which may be adopted in order for 
a plan to be treated as a plan described in paragraph 
(1)(B).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
413(c)(2) is amended by striking ‘‘section 401(a)’’ 
and inserting ‘‘sections 401(a) and 408(c)’’. 
(3) TECHNICAL AMENDMENT.—Section 408(c) is 
amended by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) There is a separate accounting for any in-
terest of an employee or member (or spouse of an em-
ployee or member) in a Roth IRA.’’. 
(b) NO COMMON INTEREST REQUIRED FOR POOLED 
EMPLOYER PLANS.—Section 3(2) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(2)) is 
amended by adding at the end the following: 
‘‘(C) A pooled employer plan shall be treat-
ed as—
‘‘(i) a single employee pension benefit 
plan or single pension plan; and 
‘‘(ii) a plan to which section 210(a) 
applies.’’. 
(c) POOLED EMPLOYER PLAN AND PROVIDER DE-
FINED.— 
(1) IN GENERAL.—Section 3 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1002) is amended by adding at the end the following: 
‘‘(43) POOLED EMPLOYER PLAN.— 
‘‘(A) IN GENERAL.—The term ‘pooled em-
ployer plan’ means a plan— 
‘‘(i) which is an individual account 
plan established or maintained for the pur-
pose of providing benefits to the employees 
of 2 or more employers; 
‘‘(ii) which is a plan described in sec-
tion 401(a) of the Internal Revenue Code of 
1986 which includes a trust exempt from 
tax under section 501(a) of such Code or a 
plan that consists of individual retirement 
accounts described in section 408 of such 
Code (including by reason of subsection (c) 
thereof); and
‘‘(iii) the terms of which meet the re-
quirements of subparagraph (B). 
Such term shall not include a plan maintained 
by employers which have a common interest 
other than having adopted the plan. 
‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 
The requirements of this subparagraph are met 
with respect to any plan if the terms of the 
plan— 
‘‘(i) designate a pooled plan provider 
and provide that the pooled plan provider is 
a named fiduciary of the plan; 
‘‘(ii) designate one or more trustees 
meeting 
the 
requirements 
of 
section 
408(a)(2) of the Internal Revenue Code of 
1986 (other than an employer in the plan) 
to be responsible for collecting contributions 
to, and holding the assets of, the plan and 
require such trustees to implement written 
contribution collection procedures that are 
reasonable, diligent, and systematic; 
‘‘(iii) provide that each employer in 
the plan retains fiduciary responsibility 
for—
‘‘(I) the selection and monitoring 
in accordance with section 404(a) of 
the person designated as the pooled 
plan provider and any other person 
who, in addition to the pooled plan 
provider, is designated as a named fi-
duciary of the plan; and 
‘‘(II) to the extent not otherwise 
delegated to another fiduciary by the 
pooled plan provider and subject to the 
provisions of section 404(c), the invest-
ment and management of the portion 
of the plan’s assets attributable to the 
employees of the employer (or bene-
ficiaries of such employees); 
‘‘(iv) provide that employers in the 
plan, and participants and beneficiaries, 
are not subject to unreasonable restrictions, 
fees, or penalties with regard to ceasing 
participation, receipt of distributions, or 
otherwise transferring assets of the plan in 
accordance with section 208 or paragraph 
(44)(C)(i)(II); 
‘‘(v) require—
‘‘(I) the pooled plan provider to 
provide to employers in the plan any 
disclosures or other information which 
the Secretary may require, including 
any disclosures or other information to 
facilitate the selection or any moni-
toring of the pooled plan provider by 
employers in the plan; and 
‘‘(II) each employer in the plan to 
take such actions as the Secretary or 
the pooled plan provider determines 
are necessary to administer the plan or 
for the plan to meet any requirement 
applicable under this Act or the Inter-
nal Revenue Code of 1986 to a plan de-
scribed in section 401(a) of such Code 
or to a plan that consists of individual 
retirement accounts described in sec-
tion 408 of such Code (including by 
reason of subsection (c) thereof), which-
ever is applicable, including providing 
any disclosures or other information 
which the Secretary may require or 
which the pooled plan provider other-
wise determines are necessary to ad-
minister the plan or to allow the plan 
to meet such requirements; and 
‘‘(vi) provide that any disclosure or 
other information required to be provided 
under clause (v) may be provided in elec-
tronic form and will be designed to ensure 
only reasonable costs are imposed on pooled 
plan providers and employers in the plan. 
‘‘(C) EXCEPTIONS.—The term ‘pooled em-
ployer plan’ does not include— 
‘‘(i) a multiemployer plan; or 
‘‘(ii) a plan established before the date 
of the enactment of the Retirement, Savings, 
and Other Tax Relief Act of 2018 unless the 
plan administrator elects that the plan will 
be treated as a pooled employer plan and 
the plan meets the requirements of this title 
applicable to a pooled employer plan estab-
lished on or after such date. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the adminis-
trative duties of the pooled plan provider de-
scribed in paragraph (44)(A)(i), each employer 
in a pooled employer plan shall be treated as the 
plan sponsor with respect to the portion of the
plan attributable to employees of such employer 
(or beneficiaries of such employees). 
‘‘(44) POOLED PLAN PROVIDER.— 
‘‘(A) IN GENERAL.—The term ‘pooled plan 
provider’ means a person who— 
‘‘(i) is designated by the terms of a 
pooled employer plan as a named fiduciary, 
as the plan administrator, and as the per-
son responsible for the performance of all 
administrative duties (including conducting 
proper testing with respect to the plan and 
the employees of each employer in the plan) 
which are reasonably necessary to ensure 
that— 
‘‘(I) the plan meets any require-
ment applicable under this Act or the 
Internal Revenue Code of 1986 to a 
plan described in section 401(a) of 
such Code or to a plan that consists of 
individual retirement accounts de-
scribed in section 408 of such Code (in-
cluding by reason of subsection (c) 
thereof), whichever is applicable; and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or
pooled plan provider determines are 
necessary for the plan to meet the re-
quirements described in subclause (I), 
including providing the disclosures and 
information described in paragraph 
(43)(B)(v)(II); 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides to 
the Secretary such other information as the 
Secretary may require, before beginning op-
erations as a pooled plan provider; 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary, and the 
plan administrator, with respect to the 
pooled employer plan; and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who are 
fiduciaries of, the pooled employer plan are 
bonded in accordance with section 412. 
‘‘(B) AUDITS, EXAMINATIONS
AND
INVES-
TIGATIONS.—The Secretary may perform audits, 
examinations, and investigations of pooled plan 
providers as may be necessary to enforce and 
carry out the purposes of this paragraph and 
paragraph (43).
‘‘(C) GUIDANCE.—The Secretary shall issue 
such guidance as the Secretary determines ap-
propriate to carry out this paragraph and para-
graph (43), including guidance— 
‘‘(i) to identify the administrative du-
ties and other actions required to be per-
formed by a pooled plan provider under ei-
ther such paragraph; and 
‘‘(ii) which requires in appropriate 
cases that if an employer in the plan fails 
to take the actions required under subpara-
graph (A)(i)(II)— 
‘‘(I) the assets of the plan attrib-
utable to employees of such employer 
(or beneficiaries of such employees) are 
transferred to a plan maintained only 
by such employer (or its successor), to 
an eligible retirement plan as defined 
in section 402(c)(8)(B) of the Internal 
Revenue Code of 1986 for each indi-
vidual whose account is transferred, or 
to any other arrangement that the Sec-
retary determines is appropriate in 
such guidance; and
‘‘(II) such employer (and not the 
plan with respect to which the failure 
occurred or any other employer in such 
plan) shall, except to the extent pro-
vided in such guidance, be liable for 
any liabilities with respect to such 
plan attributable to employees of such 
employer (or beneficiaries of such em-
ployees). 
The Secretary shall take into account under 
clause (ii) whether the failure of an employer or 
pooled plan provider to provide any disclosures 
or other information, or to take any other action, 
necessary to administer a plan or to allow a 
plan to meet requirements described in subpara-
graph (A)(i)(II) has continued over a period of 
time that demonstrates a lack of commitment to 
compliance. The Secretary may waive the re-
quirements of subclause (ii)(I) in appropriate 
circumstances if the Secretary determines it is in 
the best interests of the employees of the employer 
referred to in such clause (and the beneficiaries 
of such employees) to retain the assets in the 
plan with respect to which the employer’s failure 
occurred.
‘‘(D) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a per-
son meets the requirements of this paragraph to 
be a pooled plan provider with respect to any 
plan, all persons who perform services for the 
plan and who are treated as a single employer 
under subsection (b), (c), (m), or (o) of section 
414 of the Internal Revenue Code of 1986 shall 
be treated as one person.’’. 
(2) BONDING REQUIREMENTS FOR POOLED EM-
PLOYER PLANS.—The last sentence of section 412(a) 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1112(a)) is amended by inserting 
‘‘or in the case of a pooled employer plan (as defined 
in section 3(43))’’ after ‘‘section 407(d)(1))’’. 
(3) 
CONFORMING
AND
TECHNICAL
AMEND-
MENTS.—Section 3 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1002) is 
amended— 
(A) in paragraph (16)(B)— 
(i) by striking ‘‘or’’ at the end of clause 
(ii); and 
(ii) by striking the period at the end 
and inserting ‘‘, or (iv) in the case of a
pooled employer plan, the pooled plan pro-
vider.’’; and 
(B) by striking the second paragraph (41). 
(d) POOLED EMPLOYER AND MULTIPLE EMPLOYER 
PLAN REPORTING.— 
(1) ADDITIONAL INFORMATION.—Section 103 of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1023) is amended— 
(A) in subsection (a)(1)(B), by striking 
‘‘applicable subsections (d), (e), and (f)’’ and in-
serting ‘‘applicable subsections (d), (e), (f), and 
(g)’’; and 
(B) by amending subsection (g) to read as 
follows: 
‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO 
POOLED EMPLOYER AND MULTIPLE EMPLOYER PLANS.— 
An annual report under this section for a plan year shall 
include— 
‘‘(1) with respect to any plan to which section 
210(a) applies (including a pooled employer plan), a 
list of employers in the plan, a good faith estimate of 
the percentage of total contributions made by such 
employers during the plan year, and the aggregate ac-
count balances attributable to each employer in the 
plan (determined as the sum of the account balances
of the employees of such employer (and the bene-
ficiaries of such employees)); and 
‘‘(2) with respect to a pooled employer plan, the 
identifying information for the person designated 
under the terms of the plan as the pooled plan pro-
vider.’’. 
(2) SIMPLIFIED
ANNUAL
REPORTS.—Section 
104(a) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1024(a)) is amended by strik-
ing paragraph (2)(A) and inserting the following: 
‘‘(2)(A) With respect to annual reports required 
to be filed with the Secretary under this part, the Sec-
retary may by regulation prescribe simplified annual 
reports for any pension plan that— 
‘‘(i) covers fewer than 100 participants; or 
‘‘(ii) is a plan described in section 210(a) 
that covers fewer than 1,000 participants, but 
only if no single employer in the plan has 100 
or more participants covered by the plan.’’. 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2019. 
(2) RULE OF CONSTRUCTION.—Nothing in the 
amendments made by subsection (a) shall be con-
quirements of subparagraphs (C) through 
(E), or 
‘‘(ii) which is described in subpara-
graph (D)(i)(II) and meets the applicable 
requirements of subparagraphs (C) and 
(D).’’. 
(b) 
NONELECTIVE
CONTRIBUTIONS.—Section 
401(k)(12) is amended by redesignating subparagraph (F) 
as subparagraph (G), and by inserting after subparagraph 
(E) the following new subparagraph: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR EM-
PLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a plan may be amended after 
the beginning of a plan year to provide that 
the requirements of subparagraph (C) shall 
apply to the arrangement for the plan year, 
but only if the amendment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year.
‘‘(ii) EXCEPTION
WHERE
PLAN
PRO-
VIDED
FOR
MATCHING
CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of subpara-
graph (B) or paragraph (13)(D)(i)(I) ap-
plied to the plan year. 
‘‘(iii) 4-PERCENT
CONTRIBUTION
RE-
QUIREMENT.—Clause (i)(II) shall not apply 
to an arrangement unless the amount of the 
contributions described in subparagraph (C) 
which the employer is required to make 
under the arrangement for the plan year 
with respect to any employee is an amount 
equal to at least 4 percent of the employee’s 
compensation.’’. 
(c) AUTOMATIC
CONTRIBUTION
ARRANGEMENTS.— 
Section 401(k)(13) is amended by adding at the end the 
following: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR EM-
PLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a plan may be amended after 
the beginning of a plan year to provide that
the requirements of subparagraph (D)(i)(II) 
shall apply to the arrangement for the plan 
year, but only if the amendment is adopt-
ed— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION
WHERE
PLAN
PRO-
VIDED
FOR
MATCHING
CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of subpara-
graph (D)(i)(I) or paragraph (12)(B) ap-
plied to the plan year. 
‘‘(iii) 4-PERCENT
CONTRIBUTION
RE-
QUIREMENT.—Clause (i)(II) shall not apply 
to an arrangement unless the amount of the 
contributions described in subparagraph 
(D)(i)(II) which the employer is required to 
make under the arrangement for the plan 
year with respect to any employee is an
amount equal to at least 4 percent of the 
employee’s compensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2018. 
SEC. 203. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 
AND STIPEND PAYMENTS TREATED AS COM-
PENSATION FOR IRA PURPOSES. 
(a) IN GENERAL.—Section 219(f)(1) is amended by 
adding at the end the following: ‘‘The term ‘compensation’ 
shall include any amount included in gross income and 
paid to an individual to aid the individual in the pursuit 
of graduate or postdoctoral study.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 204. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
CONTRIBUTIONS. 
(a) IN GENERAL.—Section 219(d) is amended by strik-
ing paragraph (1). 
(b) CONFORMING AMENDMENT.—Section 408A(c) is 
amended by striking paragraph (4) and by redesignating 
paragraphs (5), (6), and (7) as paragraphs (4), (5), and 
(6), respectively.
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contributions made for taxable years 
beginning after December 31, 2018. 
SEC. 205. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 
MAKING LOANS THROUGH CREDIT CARDS 
AND OTHER SIMILAR ARRANGEMENTS. 
(a) IN GENERAL.—Section 72(p)(2) is amended by re-
designating subparagraph (D) as subparagraph (E) and by 
inserting after subparagraph (C) the following new sub-
paragraph: 
‘‘(D) PROHIBITION
OF
LOANS
THROUGH 
CREDIT CARDS AND OTHER SIMILAR ARRANGE-
MENTS.—Notwithstanding 
subparagraph 
(A), 
paragraph (1) shall apply to any loan which is 
made through the use of any credit card or any 
other similar arrangement.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to loans made after the date of the 
enactment of this Act. 
SEC. 206. PORTABILITY OF LIFETIME INCOME INVEST-
MENTS. 
(a) IN GENERAL.—Section 401(a) is amended by in-
serting after paragraph (37) the following new paragraph: 
‘‘(38) PORTABILITY
OF
LIFETIME
INCOME
IN-
VESTMENTS.—
‘‘(A) IN GENERAL.—Except as may be oth-
erwise provided by regulations, a trust forming 
part of a defined contribution plan shall not be 
treated as failing to constitute a qualified trust 
under this section solely by reason of allowing— 
‘‘(i) qualified distributions of a life-
time income investment, or 
‘‘(ii) distributions of a lifetime income 
investment in the form of a qualified plan 
distribution annuity contract, 
on or after the date that is 90 days prior to the 
date on which such lifetime income investment is 
no longer authorized to be held as an investment 
option under the plan. 
‘‘(B) DEFINITIONS.—For purposes of this 
subsection— 
‘‘(i) the term ‘qualified distribution’ 
means a direct trustee-to-trustee transfer de-
scribed in paragraph (31)(A) to an eligible 
retirement plan (as defined in section 
402(c)(8)(B)), 
‘‘(ii) the term ‘lifetime income invest-
ment’ means an investment option which is 
designed to provide an employee with elec-
tion rights—
‘‘(I) which are not uniformly 
available with respect to other invest-
ment options under the plan, and 
‘‘(II) which are to a lifetime in-
come feature available through a con-
tract or other arrangement offered 
under the plan (or under another eligi-
ble retirement plan (as so defined), if 
paid by means of a direct trustee-to- 
trustee transfer described in paragraph 
(31)(A) to such other eligible retire-
ment plan), 
‘‘(iii) the term ‘lifetime income feature’ 
means— 
‘‘(I) a feature which guarantees a 
minimum level of income annually (or 
more frequently) for at least the re-
mainder of the life of the employee or 
the joint lives of the employee and the 
employee’s designated beneficiary, or 
‘‘(II) an annuity payable on be-
half of the employee under which pay-
ments are made in substantially equal 
periodic payments (not less frequently 
than annually) over the life of the em-
ployee or the joint lives of the employee 
and the employee’s designated bene-
ficiary, and 
‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
contract purchased for a participant and 
distributed to the participant by a plan or 
contract described in subparagraph (B) of 
section 402(c)(8) (without regard to clauses 
(i) and (ii) thereof).’’. 
(b) CASH OR DEFERRED ARRANGEMENT.— 
(1) IN
GENERAL.—Section 401(k)(2)(B)(i) is 
amended by striking ‘‘or’’ at the end of subclause 
(IV), by striking ‘‘and’’ at the end of subclause (V) 
and inserting ‘‘or’’, and by adding at the end the fol-
lowing new subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect to 
amounts invested in a lifetime income 
investment (as defined in subsection 
(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the arrangement, and’’.
(2) 
DISTRIBUTION
REQUIREMENT.—Section 
401(k)(2)(B), as amended by paragraph (1), is 
amended by striking ‘‘and’’ at the end of clause (i), 
by striking the semicolon at the end of clause (ii) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(iii) except as may be otherwise pro-
vided by regulations, in the case of amounts 
described in clause (i)(VI), will be distrib-
uted only in the form of a qualified dis-
tribution 
(as 
defined 
in 
subsection 
(a)(38)(B)(i)) or a qualified plan distribu-
tion annuity contract (as defined in sub-
section (a)(38)(B)(iv)),’’. 
(c) SECTION 403(b) PLANS.— 
(1) ANNUITY CONTRACTS.—Section 403(b)(11) is 
amended by striking ‘‘or’’ at the end of subparagraph 
(B), by striking the period at the end of subparagraph 
(C) and inserting ‘‘, or’’, and by inserting after sub-
paragraph (C) the following new subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, with respect to amounts invested 
in a lifetime income investment (as defined in 
section 401(a)(38)(B)(ii))—
‘‘(i) on or after the date that is 90 
days prior to the date that such lifetime in-
come investment may no longer be held as 
an investment option under the contract, 
and 
‘‘(ii) in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(2) 
CUSTODIAL
ACCOUNTS.—Section 
403(b)(7)(A) is amended by striking ‘‘if—’’ and all 
that follows and inserting ‘‘if the amounts are to be 
invested in regulated investment company stock to be 
held in that custodial account, and under the custo-
dial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
such amount is a distribution to which sec-
tion 72(t)(2)(G) applies) before— 
‘‘(I) the employee dies, 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment,
‘‘(IV) the employee becomes dis-
abled (within the meaning of section 
72(m)(7)), 
‘‘(V) in the case of contributions 
made pursuant to a salary reduction 
agreement (within the meaning of sec-
tion 3121(a)(5)(D)), the employee en-
counters financial hardship, or 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect to 
amounts invested in a lifetime income 
investment (as defined in section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the contract, and 
‘‘(ii) in the case of amounts described 
in clause (i)(VI), such amounts will be dis-
tributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.—
(1) 
IN
GENERAL.—Section 
457(d)(1)(A) 
is 
amended by striking ‘‘or’’ at the end of clause (ii), by 
inserting ‘‘or’’ at the end of clause (iii), and by add-
ing after clause (iii) the following: 
‘‘(iv) except as may be otherwise pro-
vided by regulations, in the case of a plan 
maintained by an employer described in 
subsection 
(e)(1)(A), 
with 
respect 
to 
amounts invested in a lifetime income in-
vestment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 days 
prior to the date that such lifetime income 
investment may no longer be held as an in-
vestment option under the plan,’’. 
(2) 
DISTRIBUTION
REQUIREMENT.—Section 
457(d)(1) is amended by striking ‘‘and’’ at the end of 
subparagraph (B), by striking the period at the end 
of subparagraph (C) and inserting ‘‘, and’’, and by 
inserting after subparagraph (C) the following new 
subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, in the case of amounts described 
in subparagraph (A)(iv), such amounts will be 
distributed only in the form of a qualified dis-
tribution (as defined in section 401(a)(38)(B)(i))
or a qualified plan distribution annuity contract 
(as defined in section 401(a)(38)(B)(iv)).’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2018. 
SEC. 207. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
Not later than six months after the date of enactment 
of this Act, the Secretary of the Treasury shall issue guid-
ance to provide that, if an employer terminates the plan 
under which amounts are contributed to a custodial account 
under subparagraph (A) of section 403(b)(7), the plan ad-
ministrator or custodian may distribute an individual cus-
todial account in kind to a participant or beneficiary of 
the plan and the distributed custodial account shall be 
maintained by the custodian on a tax-deferred basis as a 
section 403(b)(7) custodial account, similar to the treatment 
of fully-paid individual annuity contracts under Revenue 
Ruling 2011–7, until amounts are actually paid to the par-
ticipant or beneficiary. The guidance shall provide further 
(i) that the section 403(b)(7) status of the distributed custo-
dial account is generally maintained if the custodial ac-
count thereafter adheres to the requirements of section 
403(b) that are in effect at the time of the distribution of 
the account and (ii) that a custodial account would not be
considered distributed to the participant or beneficiary if 
the employer has any material retained rights under the 
account (but the employer would not be treated as retaining 
material rights simply because the custodial account was 
originally opened under a group contract). 
SEC. 208. CLARIFICATION OF RETIREMENT INCOME AC-
COUNT RULES RELATING TO CHURCH-CON-
TROLLED ORGANIZATIONS. 
(a) IN GENERAL.—Section 403(b)(9)(B) is amended 
by inserting ‘‘(including an employee described in section 
414(e)(3)(B))’’ after ‘‘employee described in paragraph 
(1)’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to years beginning before, on, or after 
the date of the enactment of this Act. 
SEC. 209. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC 
ENROLLMENT SAFE HARBOR AFTER 1ST PLAN 
YEAR. 
(a) IN
GENERAL.—Section 401(k)(13)(C)(iii) is 
amended by striking ‘‘does not exceed 10 percent’’ and in-
serting ‘‘does not exceed 15 percent (10 percent during the 
period described in subclause (I))’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2018.
SEC. 210. INCREASE IN CREDIT LIMITATION FOR SMALL EM-
PLOYER PENSION PLAN STARTUP COSTS. 
(a) IN GENERAL.—Paragraph (1) of section 45E(b) is 
amended to read as follows: 
‘‘(1) for the first credit year and each of the 2 
taxable years immediately following the first credit 
year, the greater of— 
‘‘(A) $500, or 
‘‘(B) the lesser of— 
‘‘(i) $250 for each employee of the eli-
gible employer who is not a highly com-
pensated employee (as defined in section 
414(q)) and who is eligible to participate in 
the eligible employer plan maintained by 
the eligible employer, or 
‘‘(ii) $1,500, and’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 211. SMALL EMPLOYER AUTOMATIC ENROLLMENT 
CREDIT. 
(a) IN GENERAL.—Section 45E is amended by adding 
at the end the following new subsection:’’. 
‘‘(f) CREDIT FOR AUTO-ENROLLMENT OPTION FOR RE-
TIREMENT SAVINGS OPTIONS.—
‘‘(1) IN
GENERAL.—The credit allowed under 
subsection (a) for any taxable year during an eligible 
employer’s retirement auto-enrollment credit period 
shall be increased (without regard to subsection (b)) 
by $500. 
‘‘(2) RETIREMENT
AUTO-ENROLLMENT
CREDIT 
PERIOD.— 
‘‘(A) IN GENERAL.—The retirement auto-en-
rollment credit period with respect to any eligi-
ble employer is the 3-taxable-year period begin-
ning with the first taxable year for which the 
employer includes an eligible automatic con-
tribution arrangement (as defined in section 
414(w)(3)) in a qualified employer plan (as de-
fined in section 4972(d)) sponsored by the em-
ployer. 
‘‘(B) MAINTENANCE OF ARRANGEMENT.—No 
taxable year with respect to an employer shall be 
treated as occurring within the retirement auto- 
enrollment credit period unless the arrangement 
described in subparagraph (A) is included in the 
plan for such year. 
‘‘(3) NOT LIMITED TO NEW PLANS.—This sub-
section shall be applied without regard to subsection 
(c)(2).’’.
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 212. EXEMPTION FROM REQUIRED MINIMUM DIS-
TRIBUTION RULES FOR INDIVIDUALS WITH 
CERTAIN ACCOUNT BALANCES. 
(a) IN GENERAL.—Section 401(a)(9) is amended by 
adding at the end the following new subparagraph: 
‘‘(H) EXCEPTION FROM REQUIRED MINIMUM 
DISTRIBUTIONS
DURING
LIFE
OF
EMPLOYEE 
WHERE ASSETS DO NOT EXCEED $50,000.— 
‘‘(i) IN GENERAL.—If on the last day 
of any calendar year the aggregate value of 
an employee’s entire interest under all ap-
plicable eligible retirement plans does not 
exceed $50,000, then the requirements of 
subparagraph (A) with respect to any dis-
tribution relating to such year shall not 
apply with respect to such employee. 
‘‘(ii) APPLICABLE
ELIGIBLE
RETIRE-
MENT PLAN.—For purposes of this subpara-
graph, the term ‘applicable eligible retire-
ment plan’ means an eligible retirement 
plan (as defined in section 402(c)(8)(B)) 
other than a defined benefit plan.
‘‘(iii) LIMIT
ON
REQUIRED
MINIMUM 
DISTRIBUTION.—The 
required 
minimum 
distribution determined under subpara-
graph (A) for an employee under all appli-
cable eligible retirement plans shall not ex-
ceed an amount equal to the excess of— 
‘‘(I) the aggregate value of an em-
ployee’s entire interest under such 
plans on the last day of the calendar 
year to which such distribution relates, 
over 
‘‘(II) the dollar amount in effect 
under clause (i) for such calendar year. 
The Secretary in regulations or other guid-
ance may provide how such amount shall be 
distributed in the case of an individual 
with more than one applicable eligible re-
tirement plan. 
‘‘(iv) INFLATION ADJUSTMENT.—In the 
case of any calendar year beginning after 
2019, the $50,000 amount in clause (i) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by
‘‘(II) the cost of living adjustment 
determined under section 1(f)(3) for 
the calendar year, determined by sub-
stituting ‘calendar year 2018’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under this clause 
shall be rounded to the next lowest multiple 
of $5,000. 
‘‘(v) PLAN ADMINISTRATOR RELIANCE 
ON EMPLOYEE CERTIFICATION.—An appli-
cable eligible retirement plan described in 
clause (iii), (iv), (v), or (vi) of section 
402(c)(8)(B) shall not be treated as failing 
to meet the requirements of this paragraph 
in the case of any failure to make a re-
quired minimum distribution for a cal-
endar year if— 
‘‘(I) the aggregate value of an em-
ployee’s entire interest under all appli-
cable eligible retirement plans of the 
employer on the last day of the cal-
endar year to which such distribution 
relates does not exceed the dollar
amount in effect for such year under 
clause (i), and 
‘‘(II) the employee certifies that 
the aggregate value of the employee’s 
entire interest under all applicable eli-
gible retirement plans on the last day 
of the calendar year to which such dis-
tribution relates did not exceed the dol-
lar amount in effect for such year 
under clause (i). 
‘‘(vi) AGGREGATION
RULE.—All em-
ployers treated as a single employer under 
subsection (b), (c), (m), or (o) of section 414 
shall be treated as a single employer for 
purposes of clause (v).’’. 
(b) PLAN ADMINISTRATOR REPORTING.—Section 6047 
is amended by redesignating subsection (h) as subsection 
(i) and by inserting after subsection (g) the following new 
subsection: 
‘‘(h) ACCOUNT BALANCE
FOR PARTICIPANTS WHO 
HAVE ATTAINED AGE 69.— 
‘‘(1) IN GENERAL.—Not later than January 31 
of each year, the plan administrator (as defined in 
section 414(g)) of each applicable eligible retirement 
plan (as defined in section 401(a)(9)(H)) shall make
a return to the Secretary with respect to each partici-
pant of such plan who has attained age 69 as of the 
end of the preceding calendar year which states— 
‘‘(A) the name and plan number of the 
plan, 
‘‘(B) the name and address of the plan ad-
ministrator, 
‘‘(C) the name, address, and taxpayer iden-
tification number of the participant, and 
‘‘(D) the account balance of such partici-
pant as of the end of the preceding calendar 
year. 
‘‘(2) STATEMENT FURNISHED TO PARTICIPANT.— 
Every person required to make a return under para-
graph (1) with respect to a participant shall furnish 
a copy of such return to such participant. 
‘‘(3) APPLICATION TO INDIVIDUAL RETIREMENT 
PLANS AND ANNUITIES.—In the case of an applicable 
eligible retirement plan described in clause (i) or (ii) 
of section 402(c)(8)(B)— 
‘‘(A) any reference in this subsection to the 
plan administrator shall be treated as a ref-
erence to the trustee or issuer, as the case may 
be, and
‘‘(B) any reference in this subsection to the 
participant shall be treated as a reference to the 
individual for whom such account or annuity is 
maintained.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions required to be made in 
calendar years beginning more than 120 days after the date 
of the enactment of this Act. 
SEC. 213. ELECTIVE DEFERRALS BY MEMBERS OF THE 
READY RESERVE OF A RESERVE COMPONENT 
OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 402(g) is amended by add-
ing at the end the following new paragraph: 
‘‘(9) ELECTIVE
DEFERRALS
BY
MEMBERS
OF 
READY RESERVE.— 
‘‘(A) IN GENERAL.—In the case of a quali-
fied ready reservist for any taxable year, the lim-
itations of subparagraphs (A) and (C) of para-
graph (1) shall be applied separately with re-
spect to— 
‘‘(i) elective deferrals of such qualified 
ready reservist with respect to compensation 
described in subparagraph (B), and 
‘‘(ii) all other elective deferrals of such 
qualified ready reservist.
‘‘(B) QUALIFIED
READY
RESERVIST.—For 
purposes of this paragraph, the term ‘qualified 
ready reservist’ means any individual for any 
taxable year if such individual received com-
pensation for service as a member of the Ready 
Reserve of a reserve component (as defined in 
section 101 of title 37, United States Code) dur-
ing such taxable year.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to plan years beginning after December 
31, 2018. 
Subtitle B—Administrative 
Improvements 
SEC. 221. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 
MAY BE TREATED AS IN EFFECT AS OF CLOSE 
OF YEAR. 
(a) IN GENERAL.—Section 401(b) is amended— 
(1) by striking ‘‘RETROACTIVE CHANGES
IN 
PLAN.—A stock bonus’’ and inserting ‘‘PLAN AMEND-
MENTS.— 
‘‘(1) 
CERTAIN
RETROACTIVE
CHANGES
IN 
PLAN.—A stock bonus’’, and 
(2) by adding at the end the following new para-
graph:
‘‘(2) ADOPTION OF PLAN.—If an employer adopts 
a stock bonus, pension, profit-sharing, or annuity 
plan after the close of a taxable year but before the 
time prescribed by law for filing the employer’s re-
turn of tax for the taxable year (including extensions 
thereof), the employer may elect to treat the plan as 
having been adopted as of the last day of the taxable 
year.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plans adopted for taxable years begin-
ning after December 31, 2018. 
SEC. 222. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 is amended— 
(1) by redesignating subsection (o) as subsection 
(p), and 
(2) by inserting after subsection (n) the following 
new subsection: 
‘‘(o) SPECIAL RULES FOR APPLYING NONDISCRIMINA-
TION RULES TO PROTECT OLDER, LONGER SERVICE AND 
GRANDFATHERED PARTICIPANTS.— 
‘‘(1) TESTING OF DEFINED BENEFIT PLANS WITH 
CLOSED CLASSES OF PARTICIPANTS.—
‘‘(A) BENEFITS, RIGHTS, OR
FEATURES 
PROVIDED TO CLOSED CLASSES.—A defined ben-
efit plan which provides benefits, rights, or fea-
tures to a closed class of participants shall not 
fail to satisfy the requirements of subsection 
(a)(4) by reason of the composition of such closed 
class or the benefits, rights, or features provided 
to such closed class, if— 
‘‘(i) for the plan year as of which the 
class closes and the 2 succeeding plan years, 
such benefits, rights, and features satisfy the 
requirements of subsection (a)(4) (without 
regard to this subparagraph but taking into 
account the rules of subparagraph (I)), 
‘‘(ii) after the date as of which the 
class was closed, any plan amendment 
which modifies the closed class or the bene-
fits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iii) the class was closed before April 
5, 2017, or the plan is described in sub-
paragraph (C).
‘‘(B) AGGREGATE TESTING WITH DEFINED 
CONTRIBUTION PLANS PERMITTED ON A BENE-
FITS BASIS.— 
‘‘(i) IN GENERAL.—For purposes of de-
termining compliance with subsection (a)(4) 
and section 410(b), a defined benefit plan 
described in clause (iii) may be aggregated 
and tested on a benefits basis with 1 or 
more defined contribution plans, including 
with the portion of 1 or more defined con-
tribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contributions 
or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a tax 
credit employee stock ownership plan 
(within the meaning of section 409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—For purposes of clause
(i), if a defined benefit plan is aggregated 
with a portion of a defined contribution 
plan providing matching contributions— 
‘‘(I) such defined benefit plan 
must also be aggregated with any por-
tion of such defined contribution plan 
which provides elective deferrals de-
scribed in subparagraph (A) or (C) of 
section 402(g)(3), and 
‘‘(II) such matching contributions 
shall be treated in the same manner as 
nonelective contributions, including for 
purposes of applying the rules of sub-
section (l). 
‘‘(iii) PLANS
DESCRIBED.—A defined 
benefit plan is described in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
‘‘(II) for the plan year as of which 
the class closes and the 2 succeeding 
plan years, the plan satisfies the re-
quirements of section 410(b) and sub-
section (a)(4) (without regard to this 
subparagraph but taking into account 
the rules of subparagraph (I)),
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ment which modifies the closed class or 
the benefits provided to such closed 
class does not discriminate signifi-
cantly in favor of highly compensated 
employees, and 
‘‘(IV) the class was closed before 
April 5, 2017, or the plan is described 
in subparagraph (C). 
‘‘(C) PLANS
DESCRIBED.—A plan is de-
scribed in this subparagraph if, taking into ac-
count any predecessor plan— 
‘‘(i) such plan has been in effect for at 
least 5 years as of the date the class is 
closed, and 
‘‘(ii) during the 5-year period pre-
ceding the date the class is closed, there has 
not been a substantial increase in the cov-
erage or value of the benefits, rights, or fea-
tures described in subparagraph (A) or in 
the coverage or benefits under the plan de-
scribed in subparagraph (B)(iii) (whichever 
is applicable).
‘‘(D) DETERMINATION OF SUBSTANTIAL IN-
CREASE
FOR
BENEFITS, 
RIGHTS, 
AND
FEA-
TURES.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (A)(iii), a plan shall 
be treated as having had a substantial increase 
in coverage or value of the benefits, rights, or fea-
tures described in subparagraph (A) during the 
applicable 5-year period only if, during such pe-
riod— 
‘‘(i) the number of participants covered 
by such benefits, rights, or features on the 
date such period ends is more than 50 per-
cent greater than the number of such par-
ticipants on the first day of the plan year 
in which such period began, or 
‘‘(ii) such benefits, rights, and features 
have been modified by 1 or more plan 
amendments in such a way that, as of the 
date the class is closed, the value of such 
benefits, rights, and features to the closed 
class as a whole is substantially greater 
than the value as of the first day of such 5- 
year period, solely as a result of such 
amendments.
‘‘(E) DETERMINATION OF SUBSTANTIAL IN-
CREASE FOR AGGREGATE TESTING ON BENEFITS 
BASIS.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (B)(iii)(IV), a plan 
shall be treated as having had a substantial in-
crease in coverage or benefits during the applica-
ble 5-year period only if, during such period— 
‘‘(i) the number of participants benefit-
ting under the plan on the date such period 
ends is more than 50 percent greater than 
the number of such participants on the first 
day of the plan year in which such period 
began, or 
‘‘(ii) the average benefit provided to 
such participants on the date such period 
ends is more than 50 percent greater than 
the average benefit provided on the first day 
of the plan year in which such period 
began. 
‘‘(F) 
CERTAIN
EMPLOYEES
DIS-
REGARDED.—For purposes of subparagraphs (D) 
and (E), any increase in coverage or value or in 
coverage or benefits, whichever is applicable, 
which is attributable to such coverage and value 
or coverage and benefits provided to employees—
‘‘(i) who became participants as a re-
sult of a merger, acquisition, or similar 
event which occurred during the 7-year pe-
riod preceding the date the class is closed, or 
‘‘(ii) who became participants by rea-
son of a merger of the plan with another 
plan which had been in effect for at least 5 
years as of the date of the merger, 
shall be disregarded, except that clause (ii) shall 
apply for purposes of subparagraph (D) only if, 
under the merger, the benefits, rights, or features 
under 1 plan are conformed to the benefits, 
rights, or features of the other plan prospectively. 
‘‘(G) RULES RELATING TO AVERAGE BEN-
EFIT.—For purposes of subparagraph (E)— 
‘‘(i) the average benefit provided to 
participants under the plan will be treated 
as having remained the same between the 2 
dates described in subparagraph (E)(ii) if 
the benefit formula applicable to such par-
ticipants has not changed between such 
dates, and 
‘‘(ii) if the benefit formula applicable 
to 1 or more participants under the plan 
has changed between such 2 dates, then the
average benefit under the plan shall be con-
sidered to have increased by more than 50 
percent only if— 
‘‘(I) the total amount determined 
under section 430(b)(1)(A)(i) for all 
participants benefitting under the plan 
for the plan year in which the 5-year 
period described in subparagraph (E) 
ends, exceeds 
‘‘(II) the total amount determined 
under section 430(b)(1)(A)(i) for all 
such participants for such plan year, 
by using the benefit formula in effect 
for each such participant for the first 
plan year in such 5-year period, by 
more than 50 percent. 
In the case of a CSEC plan (as defined in 
section 414(y)), the normal cost of the plan 
(as determined under section 433(j)(1)(B)) 
shall be used in lieu of the amount deter-
mined under section 430(b)(1)(A)(i). 
‘‘(H) TREATMENT
AS
SINGLE
PLAN.—For 
purposes of subparagraphs (E) and (G), a plan 
described in section 413(c) shall be treated as a
single plan rather than as separate plans main-
tained by each employer in the plan. 
‘‘(I) SPECIAL RULES.—For purposes of sub-
paragraphs (A)(i) and (B)(iii)(II), the following 
rules shall apply: 
‘‘(i) In applying section 410(b)(6)(C), 
the closing of the class of participants shall 
not be treated as a significant change in 
coverage under section 410(b)(6)(C)(i)(II). 
‘‘(ii) 2 or more plans shall not fail to 
be eligible to be aggregated and treated as 
a single plan solely by reason of having dif-
ferent plan years. 
‘‘(iii) Changes in the employee popu-
lation shall be disregarded to the extent at-
tributable to individuals who become em-
ployees or cease to be employees, after the 
date the class is closed, by reason of a merg-
er, acquisition, divestiture, or similar event. 
‘‘(iv) Aggregation and all other testing 
methodologies otherwise applicable under 
subsection (a)(4) and section 410(b) may be 
taken into account. 
The rule of clause (ii) shall also apply for pur-
poses of determining whether plans to which sub-
paragraph (B)(i) applies may be aggregated and 
treated as 1 plan for purposes of determining 
whether such plans meet the requirements of sub-
section (a)(4) and section 410(b). 
‘‘(J) SPUN-OFF
PLANS.—For purposes of 
this paragraph, if a portion of a defined benefit 
plan described in subparagraph (A) or (B)(iii) 
is spun off to another employer and the spun-off 
plan continues to satisfy the requirements of— 
‘‘(i) 
subparagraph 
(A)(i) 
or 
(B)(iii)(II), whichever is applicable, if the 
original plan was still within the 3-year pe-
riod described in such subparagraph at the 
time of the spin off, and 
‘‘(ii) 
subparagraph 
(A)(ii) 
or 
(B)(iii)(III), whichever is applicable, 
the treatment under subparagraph (A) or (B) of 
the spun-off plan shall continue with respect to 
such other employer. 
‘‘(2) 
TESTING
OF
DEFINED
CONTRIBUTION 
PLANS.— 
‘‘(A) TESTING ON A BENEFITS BASIS.—A 
defined contribution plan shall be permitted to 
be tested on a benefits basis if—
‘‘(i) such defined contribution plan 
provides make-whole contributions to a 
closed class of participants whose accruals 
under a defined benefit plan have been re-
duced or eliminated, 
‘‘(ii) for the plan year of the defined 
contribution plan as of which the class eli-
gible to receive such make-whole contribu-
tions closes and the 2 succeeding plan years, 
such closed class of participants satisfies the 
requirements of section 410(b)(2)(A)(i) (de-
termined by applying the rules of para-
graph (1)(I)), 
‘‘(iii) after the date as of which the 
class was closed, any plan amendment to 
the defined contribution plan which modi-
fies the closed class or the allocations, bene-
fits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iv) the class was closed before April 
5, 2017, or the defined benefit plan under 
clause (i) is described in paragraph (1)(C)
(as applied for purposes of paragraph 
(1)(B)(iii)(IV)). 
‘‘(B) AGGREGATION WITH PLANS INCLUDING 
MATCHING CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—With respect to 1 
or more defined contribution plans de-
scribed in subparagraph (A), for purposes of 
determining compliance with subsection 
(a)(4) and section 410(b), the portion of 
such plans which provides make-whole con-
tributions or other nonelective contributions 
may be aggregated and tested on a benefits 
basis with the portion of 1 or more other de-
fined contribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contributions 
or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a tax
credit employee stock ownership plan 
(within the meaning of section 409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—Rules similar to the rules 
of paragraph (1)(B)(ii) shall apply for pur-
poses of clause (i). 
‘‘(C) SPECIAL
RULES
FOR
TESTING
DE-
FINED
CONTRIBUTION
PLAN
FEATURES
PRO-
VIDING MATCHING CONTRIBUTIONS TO CERTAIN 
OLDER, LONGER SERVICE PARTICIPANTS.—In the 
case of a defined contribution plan which pro-
vides benefits, rights, or features to a closed class 
of participants whose accruals under a defined 
benefit plan have been reduced or eliminated, the 
plan shall not fail to satisfy the requirements of 
subsection (a)(4) solely by reason of the composi-
tion of the closed class or the benefits, rights, or 
features provided to such closed class if the de-
fined contribution plan and defined benefit plan 
otherwise meet the requirements of subparagraph 
(A) but for the fact that the make-whole con-
tributions under the defined contribution plan 
are made in whole or in part through matching 
contributions.
‘‘(D) SPUN-OFF
PLANS.—For purposes of 
this paragraph, if a portion of a defined con-
tribution plan described in subparagraph (A) or 
(C) is spun off to another employer, the treat-
ment under subparagraph (A) or (C) of the 
spun-off plan shall continue with respect to the 
other employer if such plan continues to comply 
with the requirements of clauses (ii) (if the origi-
nal plan was still within the 3-year period de-
scribed in such clause at the time of the spin off) 
and (iii) of subparagraph (A), as determined for 
purposes of subparagraph (A) or (C), whichever 
is applicable. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) MAKE-WHOLE
CONTRIBUTIONS.—Ex-
cept as otherwise provided in paragraph (2)(C), 
the term ‘make-whole contributions’ means non-
elective allocations for each employee in the class 
which are reasonably calculated, in a consistent 
manner, to replace some or all of the retirement 
benefits which the employee would have received 
under the defined benefit plan and any other 
plan or qualified cash or deferred arrangement 
under subsection (k)(2) if no change had been
made to such defined benefit plan and such other 
plan or arrangement. For purposes of the pre-
ceding sentence, consistency shall not be required 
with respect to employees who were subject to dif-
ferent benefit formulas under the defined benefit 
plan. 
‘‘(B) REFERENCES
TO
CLOSED
CLASS
OF 
PARTICIPANTS.—References to a closed class of 
participants and similar references to a closed 
class shall include arrangements under which 1 
or more classes of participants are closed, except 
that 1 or more classes of participants closed on 
different dates shall not be aggregated for pur-
poses of determining the date any such class was 
closed. 
‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 
The term ‘highly compensated employee’ has the 
meaning given such term in section 414(q).’’. 
(b) 
PARTICIPATION
REQUIREMENTS.—Section 
401(a)(26) is amended by adding at the end the following 
new subparagraph: 
‘‘(I) PROTECTED PARTICIPANTS.— 
‘‘(i) IN
GENERAL.—A plan shall be 
deemed to satisfy the requirements of sub-
paragraph (A) if—
100 
‘‘(I) the plan is amended— 
‘‘(aa) to cease all benefit ac-
cruals, or 
‘‘(bb) to provide future ben-
efit accruals only to a closed class 
of participants, 
‘‘(II) the plan satisfies subpara-
graph (A) (without regard to this sub-
paragraph) as of the effective date of 
the amendment, and 
‘‘(III) the amendment was adopt-
ed before April 5, 2017, or the plan is 
described in clause (ii). 
‘‘(ii) PLANS
DESCRIBED.—A plan is 
described in this clause if the plan would be 
described in subsection (o)(1)(C), as applied 
for purposes of subsection (o)(1)(B)(iii)(IV) 
and by treating the effective date of the 
amendment as the date the class was closed 
for purposes of subsection (o)(1)(C). 
‘‘(iii) SPECIAL RULES.—For purposes 
of clause (i)(II), in applying section 
410(b)(6)(C), the amendments described in 
clause (i) shall not be treated as a signifi-
101 
cant change in coverage under section 
410(b)(6)(C)(i)(II). 
‘‘(iv) SPUN-OFF PLANS.—For purposes 
of this subparagraph, if a portion of a plan 
described in clause (i) is spun off to another 
employer, the treatment under clause (i) of 
the spun-off plan shall continue with respect 
to the other employer.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
take effect on the date of the enactment of this Act, 
without regard to whether any plan modifications re-
ferred to in such amendments are adopted or effective 
before, on, or after such date of enactment. 
(2) SPECIAL RULES.— 
(A) ELECTION OF EARLIER APPLICATION.— 
At the election of the plan sponsor, the amend-
ments made by this section shall apply to plan 
years beginning after December 31, 2013. 
(B) CLOSED CLASSES OF PARTICIPANTS.— 
For 
purposes 
of 
paragraphs 
(1)(A)(iii), 
(1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 
of the Internal Revenue Code of 1986 (as added 
by this section), a closed class of participants
102 
shall be treated as being closed before April 5, 
2017, if the plan sponsor’s intention to create 
such closed class is reflected in formal written 
documents and communicated to participants be-
fore such date. 
(C) 
CERTAIN
POST-ENACTMENT
PLAN 
AMENDMENTS.—A plan shall not be treated as 
failing to be eligible for the application of section 
401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 
such Code (as added by this section) to such plan 
solely because in the case of— 
(i) such section 401(o)(1)(A), the plan 
was amended before the date of the enact-
ment of this Act to eliminate 1 or more ben-
efits, rights, or features, and is further 
amended after such date of enactment to 
provide such previously eliminated benefits, 
rights, or features to a closed class of par-
ticipants, or 
(ii) such section 401(o)(1)(B)(iii) or 
section 401(a)(26), the plan was amended 
before the date of the enactment of this Act 
to cease all benefit accruals, and is further 
amended after such date of enactment to 
provide benefit accruals to a closed class of
103 
participants. Any such section shall only 
apply if the plan otherwise meets the re-
quirements of such section and in applying 
such section, the date the class of partici-
pants is closed shall be the effective date of 
the later amendment. 
SEC. 223. FIDUCIARY SAFE HARBOR FOR SELECTION OF 
LIFETIME INCOME PROVIDER. 
Section 404 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1104) is amended by adding 
at the end the following: 
‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 
‘‘(1) IN GENERAL.—With respect to the selection 
of an insurer for a guaranteed retirement income con-
tract, the requirements of subsection (a)(1)(B) will be 
deemed to be satisfied if a fiduciary— 
‘‘(A) engages in an objective, thorough, and 
analytical search for the purpose of identifying 
insurers from which to purchase such contracts; 
‘‘(B) with respect to each insurer identified 
under subparagraph (A)— 
‘‘(i) considers the financial capability 
of such insurer to satisfy its obligations 
under the guaranteed retirement income 
contract; and
104 
‘‘(ii) considers the cost (including fees 
and commissions) of the guaranteed retire-
ment income contract offered by the insurer 
in relation to the benefits and product fea-
tures of the contract and administrative 
services to be provided under such contract; 
and 
‘‘(C) on the basis of such consideration, con-
cludes that— 
‘‘(i) at the time of the selection, the in-
surer is financially capable of satisfying its 
obligations under the guaranteed retirement 
income contract; and 
‘‘(ii) the relative cost of the selected 
guaranteed retirement income contract as 
described in subparagraph (B)(ii) is reason-
able. 
‘‘(2) FINANCIAL CAPABILITY OF THE INSURER.— 
A fiduciary will be deemed to satisfy the requirements 
of paragraphs (1)(B)(i) and (1)(C)(i) if— 
‘‘(A) the fiduciary obtains written represen-
tations from the insurer that— 
‘‘(i) the insurer is licensed to offer 
guaranteed retirement income contracts;
105 
‘‘(ii) the insurer, at the time of selec-
tion and for each of the immediately pre-
ceding 7 plan years— 
‘‘(I) operates under a certificate of 
authority from the insurance commis-
sioner of its domiciliary State which 
has not been revoked or suspended; 
‘‘(II) has filed audited financial 
statements in accordance with the laws 
of its domiciliary State under applica-
ble statutory accounting principles; 
‘‘(III) maintains (and has main-
tained) reserves which satisfies all the 
statutory requirements of all States 
where the insurer does business; and 
‘‘(IV) is not operating under an 
order of supervision, rehabilitation, or 
liquidation; 
‘‘(iii) the insurer undergoes, at least 
every 5 years, a financial examination 
(within the meaning of the law of its domi-
ciliary State) by the insurance commis-
sioner of the domiciliary State (or rep-
resentative, designee, or other party ap-
proved by such commissioner); and
106 
‘‘(iv) the insurer will notify the fidu-
ciary of any change in circumstances occur-
ring after the provision of the representa-
tions in clauses (i), (ii), and (iii) which 
would preclude the insurer from making 
such representations at the time of issuance 
of the guaranteed retirement income con-
tract; and 
‘‘(B) after receiving such representations 
and as of the time of selection, the fiduciary has 
not received any notice described in subpara-
graph (A)(iv) and is in possession of no other in-
formation which would cause the fiduciary to 
question the representations provided. 
‘‘(3) NO
REQUIREMENT
TO
SELECT
LOWEST 
COST.—Nothing in this subsection shall be construed 
to require a fiduciary to select the lowest cost con-
tract. A fiduciary may consider the value of a con-
tract, including features and benefits of the contract 
and attributes of the insurer (including, without limi-
tation, the insurer’s financial strength) in conjunc-
tion with the cost of the contract. 
‘‘(4) TIME OF SELECTION.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the time of selection is—
107 
‘‘(i) the time that the insurer and the 
contract are selected for distribution of ben-
efits to a specific participant or beneficiary; 
or 
‘‘(ii) if the fiduciary periodically re-
views the continuing appropriateness of the 
conclusion described in paragraph (1)(C) 
with respect to a selected insurer, taking 
into account the considerations described in 
such paragraph, the time that the insurer 
and the contract are selected to provide ben-
efits at future dates to participants or bene-
ficiaries under the plan. 
Nothing in the preceding sentence shall be con-
strued to require the fiduciary to review the ap-
propriateness of a selection after the purchase of 
a contract for a participant or beneficiary. 
‘‘(B) PERIODIC REVIEW.—A fiduciary will 
be deemed to have conducted the periodic review 
described in subparagraph (A)(ii) if the fidu-
ciary obtains the written representations de-
scribed in clauses (i), (ii), and (iii) of paragraph 
(2)(A) from the insurer on an annual basis, un-
less the fiduciary receives any notice described in 
paragraph (2)(A)(iv) or otherwise becomes aware
108 
of facts that would cause the fiduciary to ques-
tion such representations. 
‘‘(5) LIMITED
LIABILITY.—A fiduciary which 
satisfies the requirements of this subsection shall not 
be liable following the distribution of any benefit, or 
the investment by or on behalf of a participant or 
beneficiary pursuant to the selected guaranteed retire-
ment income contract, for any losses that may result 
to the participant or beneficiary due to an insurer’s 
inability to satisfy its financial obligations under the 
terms of such contract. 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) INSURER.—The term ‘insurer’ means 
an insurance company, insurance service, or in-
surance organization, including affiliates of such 
companies. 
‘‘(B) GUARANTEED
RETIREMENT
INCOME 
CONTRACT.—The term ‘guaranteed retirement in-
come contract’ means an annuity contract for a 
fixed term or a contract (or provision or feature 
thereof) which provides guaranteed benefits an-
nually (or more frequently) for at least the re-
mainder of the life of the participant or the joint 
lives of the participant and the participant’s
109 
designated beneficiary as part of an individual 
account plan.’’. 
SEC. 224. DISCLOSURE REGARDING LIFETIME INCOME. 
(a) IN
GENERAL.—Subparagraph (B) of section 
105(a)(2) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1025(a)(2)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking ‘‘diversification.’’ 
and inserting ‘‘diversification, and’’; and 
(3) by inserting at the end the following: 
‘‘(iii) the lifetime income disclosure de-
scribed in subparagraph (D)(i). 
In the case of pension benefit statements de-
scribed in clause (i) of paragraph (1)(A), a life-
time income disclosure under clause (iii) of this 
subparagraph shall be required to be included in 
only one pension benefit statement during any 
one 12-month period.’’. 
(b) LIFETIME INCOME.—Paragraph (2) of section 
105(a) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1025(a)) is amended by adding at the end 
the following new subparagraph: 
‘‘(D) LIFETIME INCOME DISCLOSURE.— 
‘‘(i) IN GENERAL.—
110 
‘‘(I) DISCLOSURE.—A lifetime in-
come disclosure shall set forth the life-
time income stream equivalent of the 
total benefits accrued with respect to 
the participant or beneficiary. 
‘‘(II) LIFETIME INCOME STREAM 
EQUIVALENT OF THE TOTAL BENEFITS 
ACCRUED.—For purposes of this sub-
paragraph, the term ‘lifetime income 
stream equivalent of the total benefits 
accrued’ means the amount of monthly 
payments the participant or bene-
ficiary would receive if the total ac-
crued benefits of such participant or 
beneficiary were used to provide life-
time income streams described in sub-
clause (III), based on assumptions 
specified in rules prescribed by the Sec-
retary. 
‘‘(III) 
LIFETIME
INCOME 
STREAMS.—The 
lifetime 
income 
streams described in this subclause are 
a qualified joint and survivor annuity 
(as defined in section 205(d)), based on 
assumptions specified in rules pre-
111 
scribed by the Secretary, including the 
assumption that the participant or 
beneficiary has a spouse of equal age, 
and a single life annuity. Such lifetime 
income streams may have a term cer-
tain or other features to the extent per-
mitted under rules prescribed by the 
Secretary. 
‘‘(ii) MODEL DISCLOSURE.—Not later 
than 1 year after the date of the enactment 
of the Retirement, Savings, and Other Tax 
Relief Act of 2018, the Secretary shall issue 
a model lifetime income disclosure, written 
in a manner so as to be understood by the 
average plan participant, which— 
‘‘(I) explains that the lifetime in-
come stream equivalent is only pro-
vided as an illustration; 
‘‘(II) explains that the actual 
payments under the lifetime income 
stream described in clause (i)(III) 
which may be purchased with the total 
benefits accrued will depend on numer-
ous factors and may vary substantially
112 
from the lifetime income stream equiv-
alent in the disclosures; 
‘‘(III) explains the assumptions 
upon which the lifetime income stream 
equivalent was determined; and 
‘‘(IV) provides such other similar 
explanations as the Secretary considers 
appropriate. 
‘‘(iii) ASSUMPTIONS AND RULES.—Not 
later than 1 year after the date of the enact-
ment of the Retirement, Savings, and Other 
Tax Relief Act of 2018, the Secretary 
shall— 
‘‘(I) prescribe assumptions which 
administrators of individual account 
plans may use in converting total ac-
crued benefits into lifetime income 
stream equivalents for purposes of this 
subparagraph; and 
‘‘(II) issue interim final rules 
under clause (i). 
In prescribing assumptions under subclause 
(I), the Secretary may prescribe a single set 
of specific assumptions (in which case the 
Secretary may issue tables or factors which
113 
facilitate such conversions), or ranges of 
permissible assumptions. To the extent that 
an accrued benefit is or may be invested in 
a lifetime income stream described in clause 
(i)(III), the assumptions prescribed under 
subclause (I) shall, to the extent appro-
priate, permit administrators of individual 
account plans to use the amounts payable 
under such lifetime income stream as a life-
time income stream equivalent. 
‘‘(iv) LIMITATION
ON
LIABILITY.—No 
plan fiduciary, plan sponsor, or other per-
son shall have any liability under this title 
solely by reason of the provision of lifetime 
income stream equivalents which are de-
rived in accordance with the assumptions 
and rules described in clause (iii) and 
which include the explanations contained in 
the model lifetime income disclosure de-
scribed in clause (ii). This clause shall 
apply without regard to whether the provi-
sion of such lifetime income stream equiva-
lent is required by subparagraph (B)(iii). 
‘‘(v) EFFECTIVE
DATE.—The require-
ment in subparagraph (B)(iii) shall apply
114 
to pension benefit statements furnished more 
than 12 months after the latest of the 
issuance by the Secretary of— 
‘‘(I) interim final rules under 
clause (i); 
‘‘(II) the model disclosure under 
clause (ii); or 
‘‘(III) 
the 
assumptions 
under 
clause (iii).’’. 
SEC. 225. MODIFICATION OF PBGC PREMIUMS FOR CSEC 
PLANS. 
(a) FLAT RATE PREMIUM.—Subparagraph (A) of sec-
tion 4006(a)(3) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1306(a)(3)) is amended— 
(1) in clause (i), by striking ‘‘plan,’’ and insert-
ing ‘‘plan other than a CSEC plan (as defined in sec-
tion 210(f)(1))’’; 
(2) in clause (v), by striking ‘‘or’’ at the end; 
(3) in clause (vi), by striking the period at the 
end and inserting ‘‘, or’’; and 
(4) by adding at the end the following new 
clause: 
‘‘(vii) in the case of a CSEC plan (as 
defined in section 210(f)(1)), for plan years 
beginning after December 31, 2018, for each
115 
individual who is a participant in such 
plan during the plan year an amount equal 
to the sum of— 
‘‘(I) the additional premium (if 
any) determined under subparagraph 
(E), and 
‘‘(II) $19.’’. 
(b) VARIABLE RATE PREMIUM.— 
(1) UNFUNDED VESTED BENEFITS.— 
(A) IN
GENERAL.—Subparagraph (E) of 
section 4006(a)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)) is amended by adding at the end the 
following new clause: 
‘‘(v) For purposes of clause (ii), in the 
case of a CSEC plan (as defined in section 
210(f)(1)), the term ‘unfunded vested bene-
fits’ means, for plan years beginning after 
December 31, 2018, the excess (if any) of— 
‘‘(I) the funding liability of the 
plan as determined under section 
306(j)(5)(C) for the plan year by only 
taking into account vested benefits, 
over
116 
‘‘(II) the fair market value of 
plan assets for the plan year which are 
held by the plan on the valuation 
date.’’. 
(B) 
CONFORMING
AMENDMENT.—Clause 
(iii) of section 4006(a)(3)(E) of such Act (29 
U.S.C. 1306(a)(3)(E)) is amended by striking 
‘‘For purposes’’ and inserting ‘‘Except as pro-
vided in clause (v), for purposes’’. 
(2) APPLICABLE DOLLAR AMOUNT.— 
(A) IN GENERAL.—Paragraph (8) of section 
4006(a) of such Act (29 U.S.C. 1306(a)) is 
amended by adding at the end the following new 
subparagraph: 
‘‘(E) CSEC PLANS.—In the case of a CSEC 
plan (as defined in section 210(f)(1)), the appli-
cable dollar amount shall be $9.’’. 
(B) CONFORMING
AMENDMENT.—Subpara-
graph (A) of section 4006(a)(8) of such Act (29 
U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 
and (C)’’ and inserting ‘‘(B), (C), and (E)’’.
117 
Subtitle C—Other Savings 
Provisions 
SEC. 231. EXPANSION OF SECTION 529 PLANS. 
(a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSOCI-
ATED WITH REGISTERED APPRENTICESHIP PROGRAMS.— 
Section 529(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph: 
‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSOCI-
ATED
WITH
REGISTERED
APPRENTICESHIP
PRO-
GRAMS.—Any reference in this subsection to the term 
‘qualified higher education expense’ shall include a 
reference to expenses for fees, books, supplies, and 
equipment required for the participation of a des-
ignated beneficiary in an apprenticeship program 
registered and certified with the Secretary of Labor 
under section 1 of the National Apprenticeship Act 
(29 U.S.C. 50).’’. 
(b) DISTRIBUTIONS FOR CERTAIN HOMESCHOOLING 
EXPENSES.—Section 529(c)(7) of such Code is amended by 
striking ‘‘include a reference to’’ and all that follows and 
inserting ‘‘include a reference to— 
‘‘(A) expenses for tuition in connection with 
enrollment or attendance of a designated bene-
ficiary at an elementary or secondary public, 
private, or religious school, and
118 
‘‘(B) expenses, with respect to a designated 
beneficiary, for— 
‘‘(i) curriculum and curricular mate-
rials, 
‘‘(ii) books or other instructional mate-
rials, 
‘‘(iii) online educational materials, 
‘‘(iv) tuition for tutoring or edu-
cational classes outside of the home (but 
only if the tutor or class instructor is not 
related (within the meaning of section 
152(d)(2)) to the student), 
‘‘(v) dual enrollment in an institution 
of higher education, and 
‘‘(vi) educational therapies for students 
with disabilities, 
in connection with a homeschool (whether treated 
as a homeschool or a private school for purposes 
of applicable State law).’’. 
(c) DISTRIBUTIONS FOR QUALIFIED EDUCATION LOAN 
REPAYMENTS.— 
(1) IN GENERAL.—Section 529(c) of such Code, 
as amended by subsection (a), is amended by adding 
at the end the following new paragraph:
119 
‘‘(9) TREATMENT
OF
QUALIFIED
EDUCATION 
LOAN REPAYMENTS.— 
‘‘(A) IN GENERAL.—Any reference in this 
subsection to the term ‘qualified higher education 
expense’ shall include a reference to amounts 
paid as principal or interest on any qualified 
education loan (as defined in section 221(d)) of 
the designated beneficiary or a sibling of the des-
ignated beneficiary. 
‘‘(B) LIMITATION.—The amount of distribu-
tions treated as a qualified higher education ex-
pense under this paragraph with respect to the 
loans of any individual shall not exceed $10,000 
(reduced by the amount of distributions so treat-
ed for all prior taxable years). 
‘‘(C) SPECIAL RULES FOR SIBLINGS OF THE 
DESIGNATED BENEFICIARY.— 
‘‘(i) 
SEPARATE
ACCOUNTING.—For 
purposes of subparagraph (B) and sub-
section (d), amounts treated as a qualified 
higher education expense with respect to the 
loans of a sibling of the designated bene-
ficiary shall be taken into account with re-
spect to such sibling and not with respect to 
such designated beneficiary.
120 
‘‘(ii) SIBLING DEFINED.—For purposes 
of this paragraph, the term ‘sibling’ means 
an individual who bears a relationship to 
the designated beneficiary which is de-
scribed in section 152(d)(2)(B).’’. 
(2) COORDINATION WITH DEDUCTION FOR STU-
DENT
LOAN
INTEREST.—Section 221(e)(1) of such 
Code is amended by adding at the end the following: 
‘‘The deduction otherwise allowable under subsection 
(a) (prior to the application of subsection (b)) to the 
taxpayer for any taxable year shall be reduced (but 
not below zero) by so much of the distributions treated 
as a qualified higher education expense under section 
529(c)(9) with respect to loans of the taxpayer as 
would be includible in gross income under section 
529(c)(3)(A) for such taxable year but for such treat-
ment.’’. 
(d) DISTRIBUTIONS FOR CERTAIN ELEMENTARY AND 
SECONDARY SCHOOL EXPENSES
IN ADDITION
TO TUI-
TION.—Section 529(c)(7)(A), as amended by subsection (b), 
is amended to read as follows: 
‘‘(A) 
expenses 
described 
in 
section 
530(b)(3)(A)(i) in connection with enrollment or 
attendance of a designated beneficiary at an ele-
121 
mentary or secondary public, private, or reli-
gious school, and’’. 
(e) UNBORN CHILDREN ALLOWED AS ACCOUNT BENE-
FICIARIES.—Section 529(e) is amended by adding at the 
end the following new paragraph: 
‘‘(6) TREATMENT OF UNBORN CHILDREN.— 
‘‘(A) IN GENERAL.—Nothing shall prevent 
an unborn child from being treated as a des-
ignated beneficiary or an individual under this 
section. 
‘‘(B) UNBORN CHILD.—For purposes of this 
paragraph— 
‘‘(i) IN GENERAL.—The term ‘unborn 
child’ means a child in utero. 
‘‘(ii) CHILD
IN
UTERO.—The term 
‘child in utero’ means a member of the spe-
cies homo sapiens, at any stage of develop-
ment, who is carried in the womb.’’. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to distributions made after December 
31, 2018. 
(2) UNBORN CHILDREN ALLOWED AS ACCOUNT 
BENEFICIARIES.—The amendment made by subsection
122 
(e) shall apply to contributions made after December 
31, 2018. 
SEC. 232. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
BIRTH OF CHILD OR ADOPTION. 
(a) IN GENERAL.—Section 72(t)(2) is amended by 
adding at the end the following new subparagraph: 
‘‘(H) DISTRIBUTIONS
FROM
RETIREMENT 
PLANS IN CASE OF BIRTH OF CHILD OR ADOP-
TION.— 
‘‘(i) IN GENERAL.—Any qualified birth 
or adoption distribution. 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as qualified 
birth or adoption distributions by any indi-
vidual with respect to any birth or adoption 
shall not exceed $7,500. 
‘‘(iii) QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION.—For purposes of this sub-
paragraph— 
‘‘(I) 
IN
GENERAL.—The 
term 
‘qualified birth or adoption distribu-
tion’ means any distribution from an 
applicable eligible retirement plan to 
an individual if made during the 1-
123 
year period beginning on the date on 
which a child of the individual is born 
or on which the legal adoption by the 
individual of an eligible child is final-
ized. 
‘‘(II) ELIGIBLE CHILD.—The term 
‘eligible child’ means any individual 
(other than a child of the taxpayer’s 
spouse) who has not attained age 18 or 
is physically or mentally incapable of 
self-support. 
‘‘(iv) TREATMENT OF PLAN DISTRIBU-
TIONS.— 
‘‘(I) IN GENERAL.—If a distribu-
tion to an individual would (without 
regard to clause (ii)) be a qualified 
birth or adoption distribution, a plan 
shall not be treated as failing to meet 
any requirement of this title merely be-
cause the plan treats the distribution 
as a qualified birth or adoption dis-
tribution, unless the aggregate amount 
of such distributions from all plans 
maintained by the employer (and any 
member of any controlled group which
124 
includes the employer) to such indi-
vidual exceeds $7,500. 
‘‘(II) CONTROLLED
GROUP.—For 
purposes of subclause (I), the term 
‘controlled group’ means any group 
treated as a single employer under sub-
section (b), (c), (m), or (o) of section 
414. 
‘‘(v) AMOUNT
DISTRIBUTED
MAY
BE 
REPAID.— 
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a qualified birth or 
adoption distribution may 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 in-
dividual is a beneficiary and to which 
a rollover contribution of such dis-
tribution could be made under section 
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
125 
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 
qualified birth or adoption distribu-
tions which are made from such plan 
to such individual. Subclause (I) shall 
not apply to contributions to any ap-
plicable eligible retirement plan which 
is not an individual retirement plan 
unless the individual is eligible to 
make contributions (other than those 
described in subclause (I)) to such ap-
plicable eligible retirement plan. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS
OF
DISTRIBUTIONS
FROM
AP-
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAS.—If a con-
tribution is made under subclause (I) 
with respect to a qualified birth or 
adoption distribution from an applica-
ble eligible retirement plan other than 
an individual retirement plan, then
126 
the taxpayer shall, to the extent of the 
amount of the contribution, be treated 
as having received such distribution in 
an eligible rollover distribution (as de-
fined in section 402(c)(4)) and as hav-
ing transferred the amount to the ap-
plicable 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 a quali-
fied birth or adoption distribution 
from an individual retirement plan, 
then, to the extent of the amount of the 
contribution, such distribution shall be 
treated as a distribution described in 
section 408(d)(3) and as having been 
transferred to the applicable eligible re-
tirement plan in a direct trustee to 
trustee transfer within 60 days of the 
distribution.
127 
‘‘(vi) 
DEFINITION
AND
SPECIAL 
RULES.—For purposes of this subpara-
graph— 
‘‘(I) APPLICABLE
ELIGIBLE
RE-
TIREMENT PLAN.—The term ‘applica-
ble eligible retirement plan’ means an 
eligible retirement plan (as defined in 
section 402(c)(8)(B)) other than a de-
fined benefit plan. 
‘‘(II) EXEMPTION
OF
DISTRIBU-
TIONS
FROM
TRUSTEE
TO
TRUSTEE 
TRANSFER
AND
WITHHOLDING 
RULES.—For 
purposes 
of 
sections 
401(a)(31), 402(f), and 3405, a quali-
fied birth or adoption distribution 
shall not be treated as an eligible roll-
over distribution. 
‘‘(III) TAXPAYER MUST INCLUDE 
TIN.—A distribution shall not be treat-
ed as a qualified birth or adoption dis-
tribution with respect to any child or 
eligible child unless the taxpayer in-
cludes the name, age, and TIN of such 
child or eligible child on the taxpayer’s 
return of tax for the taxable year.
128 
‘‘(IV) DISTRIBUTIONS
TREATED 
AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—Any qualified birth or 
adoption distribution shall be treated 
as meeting the requirements of sections 
401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 
403(b)(11), and 457(d)(1)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after December 31, 
2018. 
TITLE III—REPEAL OR DELAY OF 
CERTAIN 
HEALTH-RELATED 
TAXES 
SEC. 301. EXTENSION OF MORATORIUM ON MEDICAL DE-
VICE EXCISE TAX. 
Section 4191(c) of the Internal Revenue Code of 1986 
is amended by striking ‘‘December 31, 2019’’ and inserting 
‘‘December 31, 2024’’. 
SEC. 302. DELAY IN IMPLEMENTATION OF EXCISE TAX ON 
HIGH COST EMPLOYER-SPONSORED HEALTH 
COVERAGE. 
Section 9001(c) of the Patient Protection and Afford-
able Care Act is amended by striking ‘‘December 31, 2021’’ 
and inserting ‘‘December 31, 2022’’.
129 
SEC. 303. EXTENSION OF SUSPENSION OF ANNUAL FEE ON 
HEALTH INSURANCE PROVIDERS. 
Section 9010(j)(3) of the Patient Protection and Af-
fordable Care Act is amended by striking ‘‘December 31, 
2019’’ and inserting ‘‘December 31, 2021’’. 
SEC. 304. REPEAL OF EXCISE TAX ON INDOOR TANNING 
SERVICES. 
(a) IN GENERAL.—Subtitle D of the Internal Revenue 
Code of 1986 is amended by striking chapter 49 and by 
striking the item relating to such chapter in the table of 
chapters of such subtitle. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to services performed in calendar quar-
ters beginning more than 30 days after the date of the enact-
ment of this Act. 
TITLE IV—CERTAIN EXPIRING 
PROVISIONS 
SEC. 401. RAILROAD TRACK MAINTENANCE CREDIT MADE 
PERMANENT. 
(a) CREDIT PERCENTAGE REDUCED.—Section 45G(a) 
is amended by striking ‘‘50 percent’’ and inserting ‘‘30 per-
cent’’. 
(b) MADE PERMANENT.—Section 45G is amended by 
striking subsection (f).
130 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to expenditures paid or incurred during 
taxable years beginning after December 31, 2017. 
SEC. 402. BIODIESEL AND RENEWABLE DIESEL PROVISIONS 
EXTENDED AND PHASED OUT. 
(a) INCOME TAX CREDIT.— 
(1) IN GENERAL.—Section 40A(g) is amended to 
read as follows: 
‘‘(g) PHASE OUT; TERMINATION.— 
‘‘(1) PHASE OUT.—In the case of any sale or use 
after December 31, 2021, subsections (b)(1)(A) and 
(b)(2)(A) shall be applied by substituting for 
‘$1.00’— 
‘‘(A) ‘$.75’, if such sale or use is before Jan-
uary 1, 2023, 
‘‘(B) ‘$.50’, if such sale or use is after De-
cember 31, 2022, and before January 1, 2024, 
and 
‘‘(C) ‘$.33’, if such sale or use is after De-
cember 31, 2023, and before January 1, 2025. 
‘‘(2) TERMINATION.—This section shall not 
apply to any sale or use after December 31, 2024.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to fuel sold or used after 
December 31, 2017.
131 
(b) EXCISE TAX INCENTIVES.— 
(1) PHASE OUT.—Section 6426(c)(2) is amended 
to read as follows: 
‘‘(2) APPLICABLE AMOUNT.—For purposes of this 
subsection, the applicable amount is— 
‘‘(A) $1.00 in the case of any sale or use for 
any period before January 1, 2022, 
‘‘(B) $.75 in the case of any sale or use for 
any period after December 31, 2021, and before 
January 1, 2023, 
‘‘(C) $.50 in the case of any sale or use for 
any period after December 31, 2022, and before 
January 1, 2024, and 
‘‘(D) $.33 in the case of any sale or use for 
any period after December 31, 2023, and before 
January 1, 2025.’’. 
(2) TERMINATION.— 
(A) IN
GENERAL.—Section 6426(c)(6) is 
amended by striking ‘‘December 31, 2017’’ and 
inserting ‘‘December 31, 2024’’. 
(B) PAYMENTS.—Section 6427(e)(6)(B) is 
amended by striking ‘‘December 31, 2017’’ and 
inserting ‘‘December 31, 2024’’.
132 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to fuel sold or used 
after December 31, 2017. 
(4) SPECIAL RULE FOR 2018.—Notwithstanding 
any other provision of law, in the case of any bio-
diesel mixture credit properly determined under sec-
tion 6426(c) of the Internal Revenue Code of 1986 for 
the period beginning on January 1, 2018, and ending 
on December 31, 2018, such credit shall be allowed, 
and any refund or payment attributable to such cred-
it (including any payment under section 6427(e) of 
such Code) shall be made, only in such manner as the 
Secretary of the Treasury (or the Secretary’s delegate) 
shall provide. Such Secretary shall issue guidance 
within 30 days after the date of the enactment of this 
Act providing for a one-time submission of claims 
covering periods described in the preceding sentence. 
Such guidance shall provide for a 180-day period for 
the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 
30 days after such guidance is issued. Such claims 
shall be paid by such Secretary not later than 60 
days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 
60 days after the date of the filing of such claim, the
133 
claim shall be paid with interest from such date de-
termined by using the overpayment rate and method 
under section 6621 of such Code. 
TITLE V—OTHER PROVISIONS 
SEC. 501. TECHNICAL AMENDMENTS RELATING TO PUBLIC 
LAW 115–97. 
(a) AMENDMENT RELATING TO SECTION 11011.—Sec-
tion 852(b) is amended by adding at the end the following: 
‘‘(10) TREATMENT BY SHAREHOLDERS OF QUALI-
FIED
REIT
DIVIDENDS
AND
QUALIFIED
PUBLICLY 
TRADED PARTNERSHIP INCOME.— 
‘‘(A) IN GENERAL.—A shareholder of a reg-
ulated investment company shall take into ac-
count for purposes of section 199A(b)(1)(B)— 
‘‘(i) as a qualified REIT dividend the 
amount which is reported by the company 
(in written statements furnished to its 
shareholders) as being attributable to quali-
fied REIT dividends received by the com-
pany, and 
‘‘(ii) as qualified publicly traded part-
nership income the amount which is re-
ported by the company (in written state-
ments furnished to its shareholders) as being
134 
attributable to qualified publicly traded 
partnership income of the company. 
‘‘(B) EXCESS REPORTED AMOUNTS.—Rules 
similar to the rules of clauses (ii) and (iii) of 
paragraph (5)(A) shall apply for purposes of this 
paragraph. 
‘‘(C) NEGATIVE QUALIFIED PUBLICLY TRAD-
ED
PARTNERSHIP
INCOME
REQUIRED
TO
BE 
TAKEN INTO ACCOUNT.—If the qualified publicly 
traded partnership income of the company is less 
than zero, such income shall be reported by the 
company under subparagraph (A)(ii). 
‘‘(D) REGULATIONS.—The Secretary shall 
issue such regulations or other guidance as may 
be necessary or appropriate to carry out the pur-
poses of this paragraph.’’. 
(b) AMENDMENTS RELATING TO SECTION 13204.— 
(1) Section 168(e)(3)(E) is amended by striking 
‘‘and’’ at the end of clause (v), by striking the period 
at the end of clause (vi) and inserting ‘‘, and’’, and 
by adding at the end the following new clause: 
‘‘(vii) 
any 
qualified 
improvement 
property.’’. 
(2) The table contained in subparagraph (B) of 
section 168(g)(3) is amended—
135 
(A) by striking the item relating to sub-
paragraph (D)(v), and 
(B) by inserting after the item relating to 
subparagraph (E)(vi) the following new item: 
‘‘(E)(vii) ............................................
20’’. 
(c) AMENDMENT RELATING TO SECTION 13302.—Sec-
tion 13302(e)(2) of Public Law 115-97 is amended by strik-
ing ‘‘ending’’ and inserting ‘‘beginning’’. 
(d) AMENDMENT RELATING TO SECTION 13307.—Sec-
tion 162(q)(2) is amended by inserting ‘‘in the case of the 
taxpayer for whom a deduction is disallowed by reason of 
paragraph (1),’’ before ‘‘attorney’s fees’’. 
(e) AMENDMENT RELATING TO SECTION 14103.— 
(1) IN GENERAL.—Section 965(h) is amended by 
adding at the end the following new paragraph: 
‘‘(7) INSTALLMENTS NOT TO PREVENT CREDIT OR 
REFUND OF OVERPAYMENTS OR INCREASE ESTIMATED 
TAXES.—If an election is made under paragraph (1) 
to pay the net tax liability under this section in in-
stallments— 
‘‘(A) no installment of such net tax liability 
shall— 
‘‘(i) in the case of a request for credit 
or refund, be taken into account as a liabil-
ity for purposes of determining whether an 
overpayment exists for purposes of section
136 
6402 before the date on which such install-
ment is due, or 
‘‘(ii) for purposes of sections 6425, 
6654, and 6655, be treated as a tax imposed 
by section 1, section 11, or subchapter L of 
chapter 1, and 
‘‘(B) the first sentence of section 6403 shall 
not apply with respect to any such installment.’’. 
(2) LIMITATION ON PAYMENT OF INTEREST.—In 
the case of the portion of any overpayment which ex-
ists by reason of the application of section 965(h)(7) 
of the Internal Revenue Code of 1986 (as added by 
this subsection)— 
(A) if credit or refund of such portion is 
made on or before the date which is 45 days after 
the date of the enactment of this Act, no interest 
shall be allowed or paid under section 6611 of 
such Code with respect to such portion, and 
(B) if credit or refund of such portion is 
made after the date which is 45 days after the 
date of the enactment of this Act, no interest 
shall be allowed or paid under section 6611 of 
such Code with respect to such portion for any 
period before the date of the enactment of this 
Act.
137 
(f) AMENDMENTS RELATING TO SECTION 14213.— 
(1) Section 958(b) is amended— 
(A) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) Subparagraphs (A), (B), and (C) of section 
318(a)(3) shall not be applied so as to consider a 
United States person as owning stock which is owned 
by a person who is not a United States person.’’, and 
(B) by striking ‘‘Paragraph (1)’’ in the last 
sentence and inserting ‘‘Paragraphs (1) and 
(4)’’. 
(2) Subpart F of part III of subchapter N of 
chapter 1 is amended by inserting after section 951A 
the following new section: 
‘‘SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF 
FOREIGN 
CONTROLLED 
UNITED 
STATES 
SHAREHOLDERS. 
‘‘(a) IN GENERAL.—In the case of any foreign con-
trolled United States shareholder of a foreign controlled for-
eign corporation— 
‘‘(1) this subpart (other than sections 951A, 
951(b), 957, and 965) shall be applied with respect to 
such shareholder (separately from, and in addition to, 
the application of this subpart without regard to this 
section)—
138 
‘‘(A) by substituting ‘foreign controlled 
United States shareholder’ for ‘United States 
shareholder’ each place it appears therein, and 
‘‘(B) by substituting ‘foreign controlled for-
eign corporation’ for ‘controlled foreign corpora-
tion’ each place it appears therein, and 
‘‘(2) sections 951A and 965 shall be applied with 
respect to such shareholder — 
‘‘(A) by treating each reference to ‘United 
States shareholder’ in such sections as including 
a reference to such shareholder, and 
‘‘(B) by treating each reference to ‘con-
trolled foreign corporation’ in such sections as 
including a reference to such foreign controlled 
foreign corporation. 
‘‘(b) FOREIGN CONTROLLED UNITED STATES SHARE-
HOLDER.—For purposes of this section, the term ‘foreign 
controlled United States shareholder’ means, with respect 
to any foreign corporation, any United States person which 
would be a United States shareholder with respect to such 
foreign corporation if— 
‘‘(1) section 951(b) were applied by substituting 
‘more than 50 percent’ for ‘10 percent or more’, and 
‘‘(2) section 958(b) were applied without regard 
to paragraph (4) thereof.
139 
‘‘(c) FOREIGN
CONTROLLED
FOREIGN
CORPORA-
TION.—For purposes of this section, the term ‘foreign con-
trolled foreign corporation’ means a foreign corporation, 
other than a controlled foreign corporation, which would 
be a controlled foreign corporation if section 957(a) were 
applied— 
‘‘(1) by substituting ‘foreign controlled United 
States shareholders’ for ‘United States shareholders’, 
and 
‘‘(2) by substituting ‘section 958(b) (other than 
paragraph (4) thereof)’ for ‘section 958(b)’. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this section, in-
cluding regulations or other guidance— 
‘‘(1) to treat a foreign controlled United States 
shareholder or a foreign controlled foreign corporation 
as a United States shareholder or as a controlled for-
eign corporation, respectively, for purposes of provi-
sions of this title other than this subpart, and 
‘‘(2) to prevent the avoidance of the purposes of 
this section.’’. 
(3) The amendments made by paragraphs (1) 
and (2) shall apply to—
140 
(A) the last taxable year of foreign corpora-
tions beginning before January 1, 2018, and 
each subsequent taxable year of such foreign cor-
porations, and 
(B) taxable years of United States persons 
in which or with which such taxable years of for-
eign corporations end. 
(g) EFFECTIVE DATES.—Except as otherwise provided 
in this section, the amendments made by this section shall 
take effect as if included in the provision of Public Law 
115-97 to which they relate. 
SEC. 502. CLARIFICATION OF TREATMENT OF VETERANS AS 
SPECIFIED GROUP FOR PURPOSES OF THE 
LOW-INCOME HOUSING TAX CREDIT. 
For purposes of section 42(g)(9)(B) of the Internal 
Revenue Code of 1986, veterans shall not fail to be treated 
as a specified group under a Federal program. 
SEC. 503. CLARIFICATION OF GENERAL PUBLIC USE RE-
QUIREMENT FOR QUALIFIED RESIDENTIAL 
RENTAL PROJECTS. 
(a) IN GENERAL.—Section 142(d)(2) is amended by 
adding at the end the following new subparagraph: 
‘‘(F) CLARIFICATION OF GENERAL PUBLIC USE 
REQUIREMENT.—Rules similar to the rules of section 
42(g)(9) shall apply for purposes of this subsection.’’.
141 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to bonds issued before, on, or after the 
date of enactment of this Act. 
SEC. 504. FLOOR PLAN FINANCING APPLICABLE TO CER-
TAIN TRAILERS AND CAMPERS. 
(a) IN GENERAL.—Section 163(j)(9)(C) is amended by 
adding at the end the following new flush sentence: 
‘‘Such term shall include any trailer or camper 
which is designed to provide temporary living 
quarters for recreational, camping, travel, or sea-
sonal use and is designed to be towed by, or af-
fixed to, a motor vehicle.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2017. 
SEC. 505. REPEAL OF INCREASE IN UNRELATED BUSINESS 
TAXABLE INCOME BY DISALLOWED FRINGE. 
(a) IN GENERAL.—Section 512(a) is amended by strik-
ing paragraph (7). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in section 13703 of 
Public Law 115-97.
142 
SEC. 506. CERTAIN PURCHASES OF EMPLOYEE-OWNED 
STOCK DISREGARDED FOR PURPOSES OF 
FOUNDATION 
TAX 
ON 
EXCESS 
BUSINESS 
HOLDINGS. 
(a) IN GENERAL.—Section 4943(c)(4)(A) is amended 
by adding at the end the following new clause: 
‘‘(v) CERTAIN
PURCHASES
OF
EM-
PLOYEE-OWNED STOCK DISREGARDED.—For 
purposes of clause (i), subparagraph (D), 
and paragraph (2), any voting stock 
which— 
‘‘(I) is not readily tradable on an 
established securities market, 
‘‘(II) is purchased by the business 
enterprise on or after January 1, 2005, 
from a stock bonus or profit sharing 
plan described in section 401(a) in 
which employees of such business enter-
prise participate, in connection with a 
distribution from such plan, and 
‘‘(III) is held by the business en-
terprise as treasury stock, cancelled, or 
retired, 
shall be treated as outstanding voting stock, 
but only to the extent so treating such stock 
would not result in permitted holdings ex-
143 
ceeding 49 percent (determined without re-
gard to this clause). The preceding sentence 
shall not apply with respect to the purchase 
of stock from a plan during the 10-year pe-
riod beginning on the date the plan is estab-
lished.’’ 
(b) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to taxable years ending after 
the date of enactment of this Act and to purchases by 
a business enterprise of voting stock in taxable years 
beginning before, on, or after the date of enactment of 
this Act. 
(2) SPECIAL RULE FOR GRANDFATHERED FOUN-
DATIONS IN CASE OF DECREASE IN OWNERSHIP BY 
REASON
OF
PRE-ENACTMENT
PURCHASES.—Section 
4943(c)(4)(A)(ii) of the Internal Revenue Code of 
1986 shall not apply with respect to any decrease in 
the percentage of holdings in a business enterprise by 
reason of section 4943(c)(4)(A)(v) of such Code (as 
added by this section).
144 
SEC. 507. ALLOWING 501(c)(3) ORGANIZATION TO MAKE 
STATEMENTS RELATING TO POLITICAL CAM-
PAIGN IN ORDINARY COURSE OF CARRYING 
OUT ITS TAX EXEMPT PURPOSE. 
(a) IN GENERAL.—Section 501 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following 
new subsection: 
‘‘(s) SPECIAL RULE RELATING TO POLITICAL CAM-
PAIGN STATEMENTS OF ORGANIZATION DESCRIBED IN SUB-
SECTION (c)(3).— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(c)(3) and sections 170(c)(2), 2055, 2106, 2522, and 
4955, an organization shall not fail to be treated as 
organized and operated exclusively for a purpose de-
scribed in subsection (c)(3), nor shall it be deemed to 
have participated in, or intervened in any political 
campaign on behalf of (or in opposition to) any can-
didate for public office, solely because of the content 
of any statement which— 
‘‘(A) is made in the ordinary course of the 
organization’s regular and customary activities 
in carrying out its exempt purpose, and 
‘‘(B) results in the organization incurring 
not more than de minimis incremental ex-
penses.’’.
145 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years ending after the date 
of the enactment of this Act. 
SEC. 508. CHARITABLE ORGANIZATIONS PERMITTED TO 
MAKE COLLEGIATE HOUSING AND INFRA-
STRUCTURE GRANTS. 
(a) IN GENERAL.—Section 501, as amended by the 
preceding provisions of this Act, is amended by adding at 
the end the following new subsection: 
‘‘(t) TREATMENT OF ORGANIZATIONS MAKING COLLE-
GIATE HOUSING
AND INFRASTRUCTURE IMPROVEMENT 
GRANTS.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(c)(3) and sections 170(c)(2)(B), 2055(a)(2), and 
2522(a)(2), an organization shall not fail to be treat-
ed as organized and operated exclusively for chari-
table or educational purposes solely because such or-
ganization makes collegiate housing and infrastruc-
ture grants to an organization described in subsection 
(c)(7) which applies the grant to its collegiate housing 
property. 
‘‘(2) HOUSING AND INFRASTRUCTURE GRANTS.— 
For purposes of paragraph (1), collegiate housing and 
infrastructure grants are grants to provide, improve, 
operate, or maintain collegiate housing property that
146 
may involve more than incidental social, recreational, 
or private purposes, so long as such grants are for 
purposes that would be permissible for a dormitory or 
other residential facility of the college or university 
with which the collegiate housing property is associ-
ated. A grant shall not be treated as a collegiate hous-
ing and infrastructure grant for purposes of para-
graph (1) to the extent that such grant is used to pro-
vide physical fitness facilities. 
‘‘(3) COLLEGIATE
HOUSING
PROPERTY.—For 
purposes of this subsection, collegiate housing prop-
erty is property in which, at the time of a grant or 
following the acquisition, lease, construction, or modi-
fication of such property using such grant, substan-
tially all of the residents are full-time students at the 
college or university in the community where such 
property is located. 
‘‘(4) GRANTS TO CERTAIN ORGANIZATIONS HOLD-
ING TITLE TO PROPERTY, ETC.—For purposes of this 
subsection, a collegiate housing and infrastructure 
grant to an organization described in subsection 
(c)(2) or (c)(7) holding title to property exclusively 
for the benefit of an organization described in sub-
section (c)(7) shall be considered a grant to the orga-
147 
nization described in subsection (c)(7) for whose ben-
efit such property is held.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to grants made in taxable years ending 
after the date of the enactment of this Act. 
SEC. 509. RESTRICTION ON REGULATION OF CONTINGENCY 
FEES WITH RESPECT TO TAX RETURNS, ETC. 
The Secretary of the Treasury may not regulate, pro-
hibit, or restrict the use of a contingent fee in connection 
with tax returns, claims for refund, or documents in connec-
tion with tax returns or claims for refund prepared on be-
half of a taxpayer. 
DIVISION B—TAXPAYER FIRST 
ACT OF 2018 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Taxpayer First Act of 2018’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this division an amend-
ment or repeal is expressed in terms of an amendment to, 
or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision 
of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 1. Short title; etc.
148 
TITLE I—PUTTING TAXPAYERS FIRST 
Subtitle A—Independent Appeals Process 
Sec. 1001. Establishment of Internal Revenue Service Independent Office of Ap-
peals. 
Subtitle B—Improved Service 
Sec. 1101. Comprehensive customer service strategy. 
Sec. 1102. IRS Free File Program. 
Sec. 1103. Low-income exception for payments otherwise required in connection 
with a submission of an offer-in-compromise. 
Subtitle C—Sensible Enforcement 
Sec. 1201. Internal Revenue Service seizure requirements with respect to struc-
turing transactions. 
Sec. 1202. Exclusion of interest received in action to recover property seized by 
the Internal Revenue Service based on structuring transaction. 
Sec. 1203. Clarification of equitable relief from joint liability. 
Sec. 1204. Modification of procedures for issuance of third-party summons. 
Sec. 1205. Private debt collection and special compliance personnel program. 
Sec. 1206. Reform of notice of contact of third parties. 
Sec. 1207. Modification of authority to issue designated summons. 
Sec. 1208. Limitation on access of non-Internal Revenue Service employees to re-
turns and return information. 
Subtitle D—Organizational Modernization 
Sec. 1301. Office of the National Taxpayer Advocate. 
Sec. 1302. Modernization of Internal Revenue Service organizational structure. 
Subtitle E—Other Provisions 
Sec. 1401. Return preparation programs for applicable taxpayers. 
Sec. 1402. Provision of information regarding low-income taxpayer clinics. 
Sec. 1403. Notice from IRS regarding closure of taxpayer assistance centers. 
Sec. 1404. Rules for seizure and sale of perishable goods restricted to only perish-
able goods. 
Sec. 1405. Whistleblower reforms. 
Sec. 1406. Customer service information. 
Sec. 1407. Misdirected tax refund deposits. 
TITLE II—21ST CENTURY IRS 
Subtitle A—Cybersecurity and Identity Protection 
Sec. 2001. Public-private partnership to address identity theft refund fraud. 
Sec. 2002. Recommendations of Electronic Tax Administration Advisory Com-
mittee regarding identity theft refund fraud. 
Sec. 2003. Information sharing and analysis center. 
Sec. 2004. Compliance by contractors with confidentiality safeguards. 
Sec. 2005. Report on electronic payments. 
Sec. 2006. Identity protection personal identification numbers. 
Sec. 2007. Single point of contact for tax-related identity theft victims. 
Sec. 2008. Notification of suspected identity theft. 
Sec. 2009. Guidelines for stolen identity refund fraud cases.
149 
Sec. 2010. Increased penalty for improper disclosure or use of information by 
preparers of returns. 
Subtitle B—Development of Information Technology 
Sec. 2101. Management of Internal Revenue Service information technology. 
Sec. 2102. Development of online accounts and portals. 
Sec. 2103. Internet platform for Form 1099 filings. 
Sec. 2104. Streamlined critical pay authority for information technology posi-
tions. 
Subtitle C—Modernization of Consent-based Income Verification System 
Sec. 2201. Disclosure of taxpayer information for third-party income verification. 
Sec. 2202. Limit redisclosures and uses of consent-based disclosures of tax return 
information. 
Subtitle D—Expanded Use of Electronic Systems 
Sec. 2301. Electronic filing of returns. 
Sec. 2302. Uniform standards for the use of electronic signatures for disclosure 
authorizations to, and other authorizations of, practitioners. 
Sec. 2303. Payment of taxes by debit and credit cards. 
Sec. 2304. Requirement that electronically prepared paper returns include scan-
nable code. 
Sec. 2305. Authentication of users of electronic services accounts. 
Subtitle E—Other Provisions 
Sec. 2401. Repeal of provision regarding certain tax compliance procedures and 
reports. 
Sec. 2402. Comprehensive training strategy. 
TITLE III—MISCELLANEOUS PROVISIONS 
Subtitle A—Reform of Laws Governing Internal Revenue Service Employees 
Sec. 3001. Electronic record retention. 
Sec. 3002. Prohibition on rehiring any employee of the Internal Revenue Service 
who was involuntarily separated from service for misconduct. 
Sec. 3003. Notification of unauthorized inspection or disclosure of returns and re-
turn information. 
Subtitle B—Provisions Relating to Exempt Organizations 
Sec. 3101. Mandatory e-filing by exempt organizations. 
Sec. 3102. Notice required before revocation of tax exempt status for failure to file 
return. 
Subtitle C—Tax Court 
Sec. 3301. Disqualification of judge or magistrate judge of the Tax Court. 
Sec. 3302. Opinions and judgments. 
Sec. 3303. Title of special trial judge changed to magistrate judge of the Tax 
Court. 
Sec. 3304. Repeal of deadwood related to Board of Tax Appeals.
150 
TITLE I—PUTTING TAXPAYERS 
FIRST 
Subtitle A—Independent Appeals 
Process 
SEC. 1001. ESTABLISHMENT OF INTERNAL REVENUE SERV-
ICE INDEPENDENT OFFICE OF APPEALS. 
(a) IN GENERAL.—Section 7803 is amended by adding 
at the end the following new subsection: 
‘‘(e) INDEPENDENT OFFICE OF APPEALS.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Internal Revenue Service an office to be known as 
the ‘Internal Revenue Service Independent Office of 
Appeals’. 
‘‘(2) CHIEF OF APPEALS.— 
‘‘(A) IN GENERAL.—The Internal Revenue 
Service Independent Office of Appeals shall be 
under the supervision and direction of an official 
to be known as the ‘Chief of Appeals’. The Chief 
of Appeals shall report directly to the Commis-
sioner of the Internal Revenue Service and shall 
be entitled to compensation at the same rate as 
the highest rate of basic pay established for the 
Senior Executive Service under section 5382 of 
title 5, United States Code.
151 
‘‘(B) APPOINTMENT.—The Chief of Appeals 
shall be appointed by the Commissioner of the 
Internal Revenue Service without regard to the 
provisions of title 5, United States Code, relating 
to appointments in the competitive service or the 
Senior Executive Service. 
‘‘(C) QUALIFICATIONS.—An individual ap-
pointed under subparagraph (B) shall have expe-
rience and expertise in— 
‘‘(i) administration of, and compliance 
with, Federal tax laws, 
‘‘(ii) a broad range of compliance 
cases, and 
‘‘(iii) management of large service or-
ganizations. 
‘‘(3) PURPOSES
AND
DUTIES
OF
OFFICE.—It 
shall be the function of the Internal Revenue Service 
Independent Office of Appeals to resolve Federal tax 
controversies without litigation on a basis which— 
‘‘(A) is fair and impartial to both the Gov-
ernment and the taxpayer, 
‘‘(B) promotes a consistent application and 
interpretation of, and voluntary compliance 
with, the Federal tax laws, and
152 
‘‘(C) enhances public confidence in the in-
tegrity and efficiency of the Internal Revenue 
Service. 
‘‘(4) RIGHT OF APPEAL.—The resolution process 
described in paragraph (3) shall be generally avail-
able to all taxpayers. 
‘‘(5) LIMITATION ON DESIGNATION OF CASES AS 
NOT ELIGIBLE FOR REFERRAL TO INDEPENDENT OF-
FICE OF APPEALS.— 
‘‘(A) IN GENERAL.—If any taxpayer which 
is in receipt of a notice of deficiency authorized 
under section 6212 requests referral to the Inter-
nal Revenue Service Independent Office of Ap-
peals and such request is denied, the Commis-
sioner of the Internal Revenue Service shall pro-
vide such taxpayer a written notice which— 
‘‘(i) provides a detailed description of 
the facts involved, the basis for the decision 
to deny the request, and a detailed expla-
nation of how the basis of such decision ap-
plies to such facts, and 
‘‘(ii) describes the procedures pre-
scribed under subparagraph (C) for pro-
testing the decision to deny the request.
153 
‘‘(B) REPORT TO CONGRESS.—The Commis-
sioner of the Internal Revenue Service shall sub-
mit a written report to Congress on an annual 
basis which includes the number of requests de-
scribed in subparagraph (A) which were denied 
and the reasons (described by category) that such 
requests were denied. 
‘‘(C) PROCEDURES
FOR
PROTESTING
DE-
NIAL
OF
REQUEST.—The Commissioner of the 
Internal Revenue Service shall prescribe proce-
dures for protesting to the Commissioner of the 
Internal Revenue Service a denial of a request 
described in subparagraph (A). 
‘‘(D) NOT APPLICABLE TO FRIVOLOUS POSI-
TIONS.—This paragraph shall not apply to a re-
quest for referral to the Internal Revenue Service 
Independent Office of Appeals which is denied on 
the basis that the issue involved is a frivolous po-
sition (within the meaning of section 6702(c)). 
‘‘(6) STAFF.— 
‘‘(A) IN GENERAL.—All personnel in the In-
ternal Revenue Service Independent Office of Ap-
peals shall report to the Chief of Appeals. 
‘‘(B) ACCESS TO STAFF OF OFFICE OF THE 
CHIEF
COUNSEL.—The Chief of Appeals shall
154 
have authority to obtain legal assistance and ad-
vice from the staff of the Office of the Chief 
Counsel. The Chief Counsel shall ensure that 
such assistance and advice is provided by staff of 
the Office of the Chief Counsel who were not in-
volved in the case with respect to which such as-
sistance and advice is sought and who are not 
involved in preparing such case for litigation. 
‘‘(7) ACCESS TO CASE FILES.— 
‘‘(A) IN GENERAL.—In any case in which a 
conference with the Internal Revenue Service 
Independent Office of Appeals has been scheduled 
upon request of a specified taxpayer, the Chief of 
Appeals shall ensure that such taxpayer is pro-
vided access to the nonprivileged portions of the 
case file on record regarding the disputed issues 
(other than documents provided by the taxpayer 
to the Internal Revenue Service) not later than 
10 days before the date of such conference. 
‘‘(B) TAXPAYER
ELECTION
TO
EXPEDITE 
CONFERENCE.—If the taxpayer so elects, sub-
paragraph (A) shall be applied by substituting 
‘the date of such conference’ for ‘10 days before 
the date of such conference’.
155 
‘‘(C) SPECIFIED TAXPAYER.—For purposes 
of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘specified 
taxpayer’ means— 
‘‘(I) in the case of any taxpayer 
who is a natural person, a taxpayer 
whose adjusted gross income does not 
exceed $400,000 for the taxable year to 
which the dispute relates, and 
‘‘(II) in the case of any other tax-
payer, a taxpayer whose gross receipts 
do not exceed $5,000,000 for the tax-
able year to which the dispute relates. 
‘‘(ii) 
AGGREGATION
RULE.—Rules 
similar to the rules of section 448(c)(2) 
shall apply for purposes of clause (i)(II).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The following provisions are each amended 
by striking ‘‘Internal Revenue Service Office of Ap-
peals’’ and inserting ‘‘Internal Revenue Service Inde-
pendent Office of Appeals’’: 
(A) Section 6015(c)(4)(B)(ii)(I). 
(B) Section 6320(b)(1). 
(C) Subsections (b)(1) and (d)(3) of section 
6330.
156 
(D) Section 6603(d)(3)(B). 
(E) Section 6621(c)(2)(A)(i). 
(F) Section 7122(e)(2). 
(G) Subsections (a), (b)(1), (b)(2), and 
(c)(1) of section 7123. 
(H) Subsections (c)(7)(B)(i), and (g)(2)(A) 
of section 7430. 
(I) Section 7522(b)(3). 
(J) Section 7612(c)(2)(A). 
(2) Section 7430(c)(2) is amended by striking 
‘‘Internal Revenue Service Office of Appeals’’ each 
place it appears and inserting ‘‘Internal Revenue 
Service Independent Office of Appeals’’. 
(3) The heading of section 6330(d)(3) is amended 
by inserting ‘‘INDEPENDENT’’ after ‘‘IRS’’. 
(c) OTHER REFERENCES.—Any reference in any pro-
vision of law, or regulation or other guidance, to the Inter-
nal Revenue Service Office of Appeals shall be treated as 
a reference to the Internal Revenue Service Independent Of-
fice of Appeals. 
(d) SAVINGS PROVISIONS.—Rules similar to the rules 
of paragraphs (2) through (6) of section 1001(b) of the In-
ternal Revenue Service Restructuring and Reform Act of 
1998 shall apply for purposes of this section (and the 
amendments made by this section).
157 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall take effect on the date of the enactment of 
this Act. 
(2) ACCESS TO CASE FILES.—Section 7803(e)(7) 
of the Internal Revenue Code of 1986, as added by 
subsection (a), shall apply to conferences occurring 
after the date which is 1 year after the date of the en-
actment of this Act. 
Subtitle B—Improved Service 
SEC. 1101. COMPREHENSIVE CUSTOMER SERVICE STRAT-
EGY. 
(a) IN GENERAL.—Not later than the date which is 
1 year after the date of the enactment of this Act, the Sec-
retary of the Treasury shall submit to Congress a written 
comprehensive customer service strategy for the Internal 
Revenue Service. Such strategy shall include— 
(1) a plan to provide assistance to taxpayers 
that is secure, designed to meet reasonable taxpayer 
expectations, and adopts appropriate best practices of 
customer service provided in the private sector, in-
cluding online services, telephone call back services, 
and training of employees providing customer serv-
ices,
158 
(2) a thorough assessment of the services that the 
Internal Revenue Service can co-locate with other 
Federal services or offer as self-service options, 
(3) proposals to improve Internal Revenue Serv-
ice customer service in the short term (the current 
and following fiscal year), medium term (approxi-
mately 3 to 5 fiscal years), and long term (approxi-
mately 10 fiscal years), 
(4) a plan to update guidance and training ma-
terials for customer service employees of the Internal 
Revenue Service, including the Internal Revenue 
Manual, to reflect such strategy, and 
(5) identified metrics and benchmarks for quan-
titatively measuring the progress of the Internal Rev-
enue Service in implementing such strategy. 
(b) UPDATED
GUIDANCE
AND
TRAINING
MATE-
RIALS.—Not later than 2 years after the date of the enact-
ment of this Act, the Secretary of the Treasury (or the Sec-
retary’s delegate) shall make available the updated guidance 
and training materials described in subsection (a)(4) (in-
cluding the Internal Revenue Manual). Such updated guid-
ance and training materials (including the Internal Rev-
enue Manual) shall be written in a manner so as to be eas-
ily understood by customer service employees of the Internal 
Revenue Service and shall provide clear instructions.
159 
SEC. 1102. IRS FREE FILE PROGRAM. 
(a) IN GENERAL.— 
(1) The Secretary of the Treasury, or the Sec-
retary’s delegate, shall continue to operate the IRS 
Free File Program as established by the Internal Rev-
enue Service and published in the Federal Register on 
November 4, 2002 (67 Fed. Reg. 67247), including 
any subsequent agreements and governing rules estab-
lished pursuant thereto. 
(2) The IRS Free File Program shall continue to 
provide free commercial-type online individual in-
come tax preparation and electronic filing services to 
the lowest 70 percent of taxpayers by adjusted gross 
income. The number of taxpayers eligible to receive 
such services each year shall be calculated by the In-
ternal Revenue Service annually based on prior year 
aggregate taxpayer adjusted gross income data. 
(3) In addition to the services described in para-
graph (2), and in the same manner, the IRS Free 
File Program shall continue to make available to all 
taxpayers (without regard to income) a basic, online 
electronic fillable forms utility. 
(4) The IRS Free File Program shall continue to 
work cooperatively with the private sector to provide 
the free individual income tax preparation and the
160 
electronic filing services described in paragraphs (2) 
and (3). 
(5) The IRS Free File Program shall work coop-
eratively with State government agencies to enhance 
and expand the use of the program to provide needed 
benefits to the taxpayer while reducing the cost of 
processing returns. 
(b) INNOVATIONS.—The Secretary of the Treasury, or 
the Secretary’s delegate, shall work with the private sector 
through the IRS Free File Program to identify and imple-
ment, consistent with applicable law, innovative new pro-
gram features to improve and simplify the taxpayer’s expe-
rience with completing and filing individual income tax re-
turns through voluntary compliance. 
SEC. 1103. LOW-INCOME EXCEPTION FOR PAYMENTS OTH-
ERWISE REQUIRED IN CONNECTION WITH A 
SUBMISSION OF AN OFFER-IN-COMPROMISE. 
(a) IN GENERAL.—Section 7122(c) is amended by add-
ing at the end the following new paragraph: 
‘‘(3) 
EXCEPTION
FOR
LOW-INCOME
TAX-
PAYERS.—Paragraph (1), and any user fee otherwise 
required in connection with the submission of an 
offer-in-compromise, shall not apply to any offer-in- 
compromise with respect to a taxpayer who is an in-
dividual with adjusted gross income, as determined
161 
for the most recent taxable year for which such infor-
mation is available, which does not exceed 250 per-
cent of the applicable poverty level (as determined by 
the Secretary).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to offers-in-compromise submitted after 
the date of the enactment of this Act. 
Subtitle C—Sensible Enforcement 
SEC. 1201. INTERNAL REVENUE SERVICE SEIZURE RE-
QUIREMENTS 
WITH 
RESPECT 
TO 
STRUC-
TURING TRANSACTIONS. 
Section 5317(c)(2) of title 31, United States Code, is 
amended— 
(1) by striking ‘‘Any property’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—Any property’’; and 
(2) by adding at the end the following: 
‘‘(B) INTERNAL REVENUE SERVICE SEIZURE 
REQUIREMENTS WITH RESPECT TO STRUCTURING 
TRANSACTIONS.— 
‘‘(i) PROPERTY DERIVED FROM AN IL-
LEGAL
SOURCE.—Property may only be 
seized by the Internal Revenue Service pur-
suant to subparagraph (A) by reason of a 
claimed violation of section 5324 if the
162 
property to be seized was derived from an 
illegal source or the funds were structured 
for the purpose of concealing the violation of 
a criminal law or regulation other than sec-
tion 5324. 
‘‘(ii) NOTICE.—Not later than 30 days 
after property is seized by the Internal Rev-
enue Service pursuant to subparagraph (A), 
the Internal Revenue Service shall— 
‘‘(I) make a good faith effort to 
find all persons with an ownership in-
terest in such property; and 
‘‘(II) provide each such person so 
found with a notice of the seizure and 
of the person’s rights under clause (iv). 
‘‘(iii) EXTENSION OF NOTICE UNDER 
CERTAIN
CIRCUMSTANCES.—The Internal 
Revenue Service may apply to a court of 
competent jurisdiction for one 30-day exten-
sion of the notice requirement under clause 
(ii) if the Internal Revenue Service can es-
tablish probable cause of an imminent 
threat to national security or personal safe-
ty necessitating such extension.
163 
‘‘(iv) POST-SEIZURE
HEARING.—If a 
person with an ownership interest in prop-
erty seized pursuant to subparagraph (A) 
by the Internal Revenue Service requests a 
hearing by a court of competent jurisdiction 
within 30 days after the date on which no-
tice is provided under subclause (ii), such 
property shall be returned unless the court 
holds an adversarial hearing and finds 
within 30 days of such request (or such 
longer period as the court may provide, but 
only on request of an interested party) that 
there is probable cause to believe that there 
is a violation of section 5324 involving such 
property and probable cause to believe that 
the property to be seized was derived from 
an illegal source or the funds were struc-
tured for the purpose of concealing the vio-
lation of a criminal law or regulation other 
than section 5324.’’.
164 
SEC. 1202. EXCLUSION OF INTEREST RECEIVED IN ACTION 
TO RECOVER PROPERTY SEIZED BY THE IN-
TERNAL 
REVENUE 
SERVICE 
BASED 
ON 
STRUCTURING TRANSACTION. 
(a) IN GENERAL.—Part III of subchapter B of chapter 
1 is amended by inserting before section 140 the following 
new section: 
‘‘SEC. 139H. INTEREST RECEIVED IN ACTION TO RECOVER 
PROPERTY SEIZED BY THE INTERNAL REV-
ENUE SERVICE BASED ON STRUCTURING 
TRANSACTION. 
‘‘Gross income shall not include any interest received 
from the Federal Government in connection with an action 
to recover property seized by the Internal Revenue Service 
pursuant to section 5317(c)(2) of title 31, United States 
Code, by reason of a claimed violation of section 5324 of 
such title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
part III of subchapter B of chapter 1 is amended by insert-
ing before the item relating to section 140 the following new 
item: 
‘‘Sec. 139H. Interest received in action to recover property seized by the Internal 
Revenue Service based on structuring transaction.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to interest received on or after the date 
of the enactment of this Act.
165 
SEC. 1203. CLARIFICATION OF EQUITABLE RELIEF FROM 
JOINT LIABILITY. 
(a) IN GENERAL.—Section 6015 is amended— 
(1) in subsection (e), by adding at the end the 
following new paragraph: 
‘‘(7) STANDARD AND SCOPE OF REVIEW.—Any 
review of a determination made under this section 
shall be reviewed de novo by the Tax Court and shall 
be based upon— 
‘‘(A) the administrative record established 
at the time of the determination, and 
‘‘(B) any additional newly discovered or 
previously unavailable evidence.’’, and 
(2) by amending subsection (f) to read as follows: 
‘‘(f) EQUITABLE RELIEF.— 
‘‘(1) IN GENERAL.—Under procedures prescribed 
by the Secretary, if— 
‘‘(A) taking into account all the facts and 
circumstances, it is inequitable to hold the indi-
vidual liable for any unpaid tax or any defi-
ciency (or any portion of either), and 
‘‘(B) relief is not available to such indi-
vidual under subsection (b) or (c), 
the Secretary may relieve such individual of such li-
ability.
166 
‘‘(2) LIMITATION.—A request for equitable relief 
under this subsection may be made with respect to 
any portion of any liability that— 
‘‘(A) has not been paid, provided that such 
request is made before the expiration of the ap-
plicable period of limitation under section 6502, 
or 
‘‘(B) has been paid, provided that such re-
quest is made during the period in which the in-
dividual could submit a timely claim for refund 
or credit of such payment.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to petitions or requests filed or pending 
on or after the date of the enactment of this Act. 
SEC. 1204. MODIFICATION OF PROCEDURES FOR ISSUANCE 
OF THIRD-PARTY SUMMONS. 
(a) IN GENERAL.—Section 7609(f) is amended by add-
ing at the end the following flush sentence: 
‘‘The Secretary shall not issue any summons described in 
the preceding sentence unless the information sought to be 
obtained is narrowly tailored to information that pertains 
to the failure (or potential failure) of the person or group 
or class of persons referred to in paragraph (2) to comply 
with one or more provisions of the internal revenue law
167 
which have been identified for purposes of such para-
graph.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to summonses served after the date of 
the enactment of this Act. 
SEC. 1205. PRIVATE DEBT COLLECTION AND SPECIAL COM-
PLIANCE PERSONNEL PROGRAM. 
(a) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR 
COLLECTION UNDER TAX COLLECTION CONTRACTS.—Sec-
tion 6306(d)(3) is amended by striking ‘‘or’’ at the end of 
subparagraph (C) and by inserting after subparagraph (D) 
the following new subparagraphs: 
‘‘(E) a taxpayer substantially all of whose 
income consists of disability insurance benefits 
under section 223 of the Social Security Act or 
supplemental security income benefits under title 
XVI of the Social Security Act (including sup-
plemental security income benefits of the type de-
scribed in section 1616 of such Act or section 212 
of Public Law 93-66), or 
‘‘(F) a taxpayer who is an individual with 
adjusted gross income, as determined for the 
most recent taxable year for which such informa-
tion is available, which does not exceed 200 per-
168 
cent of the applicable poverty level (as deter-
mined by the Secretary).’’. 
(b) DETERMINATION OF INACTIVE TAX RECEIVABLES 
ELIGIBLE FOR COLLECTION UNDER TAX COLLECTION CON-
TRACTS.—Section 6306(c)(2)(A)(ii) is amended by striking 
‘‘more than 1⁄3 of the period of the applicable statute of limi-
tation has lapsed’’ and inserting ‘‘more than 2 years has 
passed since assessment’’. 
(c) MAXIMUM LENGTH OF INSTALLMENT AGREEMENTS 
OFFERED UNDER TAX COLLECTION CONTRACTS.—Section 
6306(b)(1)(B) is amended by striking ‘‘5 years’’ and insert-
ing ‘‘7 years’’. 
(d) CLARIFICATION THAT SPECIAL COMPLIANCE PER-
SONNEL PROGRAM ACCOUNT MAY BE USED FOR PROGRAM 
COSTS.— 
(1) IN GENERAL.—Section 6307(b) is amended— 
(A) in paragraph (2), by striking all that 
follows ‘‘under such program’’ and inserting a 
period, and 
(B) in paragraph (3), by striking all that 
follows ‘‘out of such account’’ and inserting ‘‘for 
other than program costs’’. 
(2) COMMUNICATIONS, SOFTWARE, AND
TECH-
NOLOGY COSTS TREATED AS PROGRAM COSTS.—Sec-
tion 6307(d)(2)(B) is amended by striking ‘‘tele-
169 
communications’’ and inserting ‘‘communications, 
software, technology’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
6307(d)(2) is amended by striking ‘‘and’’ at the end 
of subparagraph (A), by striking the period at the end 
of subparagraph (B) and inserting ‘‘, and’’, and by 
inserting after subparagraph (B) the following new 
subparagraph: 
‘‘(C) reimbursement of the Internal Revenue 
Service or other government agencies for the cost 
of administering the qualified tax collection pro-
gram under section 6306.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to tax receivables identified by the 
Secretary (or the Secretary’s delegate) after December 
31, 2019. 
(2) MAXIMUM LENGTH OF INSTALLMENT AGREE-
MENTS.—The amendment made by subsection (c) 
shall apply to contracts entered into after the date of 
the enactment of this Act. 
(3) USE OF SPECIAL COMPLIANCE PERSONNEL 
PROGRAM ACCOUNT.—The amendment made by sub-
section (d) shall apply to amounts expended from the
170 
special compliance personnel program account after 
the date of the enactment of this Act. 
SEC. 1206. REFORM OF NOTICE OF CONTACT OF THIRD PAR-
TIES. 
(a) IN GENERAL.—Section 7602(c)(1) is amended to 
read as follows: 
‘‘(1) GENERAL NOTICE.—An officer or employee 
of the Internal Revenue Service may not contact any 
person other than the taxpayer with respect to the de-
termination or collection of the tax liability of such 
taxpayer unless such contact occurs during a period 
(not greater than 1 year) which is specified in a no-
tice which— 
‘‘(A) informs the taxpayer that contacts 
with persons other than the taxpayer are in-
tended to be made during such period, and 
‘‘(B) except as otherwise provided by the 
Secretary, is provided to the taxpayer not later 
than 45 days before the beginning of such period. 
Nothing in the preceding sentence shall prevent the 
issuance of notices to the same taxpayer with respect 
to the same tax liability with periods specified therein 
that, in the aggregate, exceed 1 year. A notice shall 
not be issued under this paragraph unless there is an 
intent at the time such notice is issued to contact per-
171 
sons other than the taxpayer during the period speci-
fied in such notice. The preceding sentence shall not 
prevent the issuance of a notice if the requirement of 
such sentence is met on the basis of the assumption 
that the information sought to be obtained by such 
contact will not be obtained by other means before 
such contact.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to notices provided, and contacts of per-
sons made, after the date which is 45 days after the date 
of the enactment of this Act. 
SEC. 1207. MODIFICATION OF AUTHORITY TO ISSUE DES-
IGNATED SUMMONS. 
(a) IN GENERAL.—Paragraph (1) of section 6503(j) is 
amended by striking ‘‘coordinated examination program’’ 
and inserting ‘‘coordinated industry case program’’. 
(b) REQUIREMENTS FOR SUMMONS.—Clause (i) of sec-
tion 6503(j)(2)(A) is amended to read as follows: 
‘‘(i) the issuance of such summons is 
preceded by a review and written approval 
of such issuance by the Commissioner of the 
relevant operating division of the Internal 
Revenue Service and the Chief Counsel 
which—
172 
‘‘(I) states facts clearly estab-
lishing that the Secretary has made 
reasonable requests for the information 
that is the subject of the summons, and 
‘‘(II) is attached to such sum-
mons,’’. 
(c) ESTABLISHMENT THAT REASONABLE REQUESTS 
FOR INFORMATION WERE MADE.—Subsection (j) of section 
6503 is amended by adding at the end the following new 
paragraph: 
‘‘(4) ESTABLISHMENT
THAT
REASONABLE
RE-
QUESTS
FOR
INFORMATION
WERE
MADE.—In any 
court proceeding described in paragraph (3), the Sec-
retary shall establish that reasonable requests were 
made for the information that is the subject of the 
summons.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to summonses issued after the date of 
the enactment of this Act. 
SEC. 1208. LIMITATION ON ACCESS OF NON-INTERNAL REV-
ENUE SERVICE EMPLOYEES TO RETURNS AND 
RETURN INFORMATION. 
(a) IN GENERAL.—Section 7602 is amended by adding 
at the end the following new subsection:
173 
‘‘(f) LIMITATION
ON ACCESS
OF PERSONS OTHER 
THAN INTERNAL REVENUE SERVICE OFFICERS AND EM-
PLOYEES.—The Secretary shall not, under the authority of 
section 6103(n), provide any books, papers, records, or other 
data obtained pursuant to this section to any person au-
thorized under section 6103(n), except when such person re-
quires such information for the sole purpose of providing 
expert evaluation and assistance to the Internal Revenue 
Service. No person other than an officer or employee of the 
Internal Revenue Service or the Office of Chief Counsel 
may, on behalf of the Secretary, question a witness under 
oath whose testimony was obtained pursuant to this sec-
tion.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section— 
(1) shall take effect on the date of the enactment 
of this Act, and 
(2) shall not fail to apply to a contract in effect 
under section 6103(n) of the Internal Revenue Code 
of 1986 merely because such contract was in effect be-
fore the date of the enactment of this Act.
174 
Subtitle D—Organizational 
Modernization 
SEC. 1301. OFFICE OF THE NATIONAL TAXPAYER ADVO-
CATE. 
(a) TAXPAYER ADVOCATE DIRECTIVES.— 
(1) IN GENERAL.—Section 7803(c) is amended 
by adding at the end the following new paragraph: 
‘‘(5) TAXPAYER ADVOCATE DIRECTIVES.—In the 
case of any Taxpayer Advocate Directive issued by 
the National Taxpayer Advocate pursuant to a dele-
gation of authority from the Commissioner of the In-
ternal Revenue Service— 
‘‘(A) the Commissioner or a Deputy Com-
missioner shall modify, rescind, or ensure com-
pliance with such directive not later than 90 
days after the issuance of such directive, and 
‘‘(B) in the case of any directive which is 
modified or rescinded by a Deputy Commis-
sioner, the National Taxpayer Advocate may 
(not later than 90 days after such modification 
or rescission) appeal to the Commissioner and 
the Commissioner shall (not later than 90 days 
after such appeal is made) ensure compliance 
with such directive as issued by the National 
Taxpayer Advocate or provide the National Tax-
175 
payer Advocate with a detailed description of the 
reasons for any modification or rescission made 
or upheld by the Commissioner pursuant to such 
appeal.’’. 
(2) REPORT TO CERTAIN COMMITTEES OF CON-
GRESS
REGARDING
DIRECTIVES.—Section 
7803(c)(2)(B)(ii) is amended by redesignating sub-
clauses (VIII) through (XI) as subclauses (IX) through 
(XII), respectively, and by inserting after subclause 
(VII) the following new subclause: 
‘‘(VIII) identify any Taxpayer 
Advocate Directive which was not hon-
ored by the Internal Revenue Service 
in a timely manner, as specified under 
paragraph (5);’’. 
(b) NATIONAL TAXPAYER ADVOCATE ANNUAL RE-
PORTS TO CONGRESS.— 
(1) INCLUSION
OF
MOST
SERIOUS
TAXPAYER 
PROBLEMS.—Section 7803(c)(2)(B)(ii)(III) is amend-
ed by striking ‘‘at least 20 of the’’ and inserting ‘‘the 
10’’. 
(2) COORDINATION WITH TREASURY INSPECTOR 
GENERAL
FOR
TAX
ADMINISTRATION.—Section 
7803(c)(2) is amended by adding at the end the fol-
lowing new subparagraph:
176 
‘‘(E) COORDINATION
WITH
TREASURY
IN-
SPECTOR GENERAL FOR TAX ADMINISTRATION.— 
Before beginning any research or study, the Na-
tional Taxpayer Advocate shall coordinate with 
the Treasury Inspector General for Tax Admin-
istration to ensure that the National Taxpayer 
Advocate does not duplicate any action that the 
Treasury Inspector General for Tax Administra-
tion has already undertaken or has a plan to un-
dertake.’’. 
(3) STATISTICAL SUPPORT.— 
(A) IN GENERAL.—Section 6108 is amended 
by adding at the end the following new sub-
section: 
‘‘(d) STATISTICAL SUPPORT FOR NATIONAL TAXPAYER 
ADVOCATE.—The Secretary shall, upon request of the Na-
tional Taxpayer Advocate, provide the National Taxpayer 
Advocate with statistical support in connection with the 
preparation by the National Taxpayer Advocate of the an-
nual report described in section 7803(c)(2)(B)(ii). Such sta-
tistical support shall include statistical studies, compila-
tions, and the review of information provided by the Na-
tional Taxpayer Advocate for statistical validity and sound 
statistical methodology.’’.
177 
(B) 
DISCLOSURE
OF
REVIEW.—Section 
7803(c)(2)(B)(ii), as amended by subsection (a), 
is amended by redesignating subclause (XII) as 
subclause (XIII) and by inserting after subclause 
(XI) the following new subclause: 
‘‘(XII) with respect to any statis-
tical information included in such re-
port, include a statement of whether 
such statistical information was re-
viewed or provided by the Secretary 
under section 6108(d) and, if so, 
whether the Secretary determined such 
information to be statistically valid 
and based on sound statistical method-
ology.’’. 
(C) 
CONFORMING
AMENDMENT.—Section 
7803(c)(2)(B)(iii) is amended by adding at the 
end the following: ‘‘The preceding sentence shall 
not apply with respect to statistical information 
provided to the Secretary for review, or received 
from the Secretary, under section 6108(d).’’. 
(c) SALARY OF NATIONAL TAXPAYER ADVOCATE.—Sec-
tion 7803(c)(1)(B)(i) is amended by striking ‘‘, or, if the 
Secretary of the Treasury so determines, at a rate fixed 
under section 9503 of such title’’.
178 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall take effect on the date of the enactment of 
this Act. 
(2) SALARY
OF
NATIONAL
TAXPAYER
ADVO-
CATE.—The amendment made by subsection (c) shall 
apply to compensation paid to individuals appointed 
as the National Taxpayer Advocate after the date of 
the enactment of this Act. 
SEC. 1302. MODERNIZATION OF INTERNAL REVENUE SERV-
ICE ORGANIZATIONAL STRUCTURE. 
(a) IN GENERAL.—Not later than September 30, 2020, 
the Commissioner of the Internal Revenue Service shall sub-
mit to Congress a comprehensive written plan to redesign 
the organization of the Internal Revenue Service. Such plan 
shall— 
(1) ensure the successful implementation of the 
priorities specified by Congress in this Act, 
(2) prioritize taxpayer services to ensure that all 
taxpayers easily and readily receive the assistance 
that they need, 
(3) streamline the structure of the agency includ-
ing minimizing the duplication of services and re-
sponsibilities within the agency,
179 
(4) best position the Internal Revenue Service to 
combat cybersecurity and other threats to the Internal 
Revenue Service, and 
(5) address whether the Criminal Investigation 
Division of the Internal Revenue Service should re-
port directly to the Commissioner. 
(b) REPEAL OF RESTRICTION ON ORGANIZATIONAL 
STRUCTURE
OF INTERNAL REVENUE SERVICE.—Para-
graph (3) of section 1001(a) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 shall cease to apply 
beginning 1 year after the date on which the Commissioner 
of the Internal Revenue Service submits to Congress the 
plan described in subsection (a). 
Subtitle E—Other Provisions 
SEC. 1401. RETURN PREPARATION PROGRAMS FOR APPLI-
CABLE TAXPAYERS. 
(a) IN GENERAL.—Chapter 77 is amended by insert-
ing after section 7526 the following new section: 
‘‘SEC. 7526A. RETURN PREPARATION PROGRAMS FOR APPLI-
CABLE TAXPAYERS. 
‘‘(a) ESTABLISHMENT OF VOLUNTEER INCOME TAX 
ASSISTANCE MATCHING GRANT PROGRAM.—The Secretary 
shall establish a Community Volunteer Income Tax Assist-
ance Matching Grant Program under which the Secretary 
may, subject to the availability of appropriated funds, make
180 
grants to provide matching funds for the development, ex-
pansion, or continuation of qualified return preparation 
programs assisting applicable taxpayers and members of 
underserved populations. 
‘‘(b) USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Qualified return preparation 
programs may use grants received under this section 
for— 
‘‘(A) ordinary and necessary costs associ-
ated with program operation in accordance with 
cost principles under the applicable Office of 
Management and Budget circular, including— 
‘‘(i) wages or salaries of persons co-
ordinating the activities of the program, 
‘‘(ii) developing training materials, 
conducting training, and performing qual-
ity reviews of the returns prepared under 
the program, 
‘‘(iii) equipment purchases, and 
‘‘(iv) vehicle-related expenses associated 
with remote or rural tax preparation serv-
ices, 
‘‘(B) outreach and educational activities de-
scribed in subsection (c)(2)(B), and
181 
‘‘(C) services related to financial education 
and capability, asset development, and the estab-
lishment of savings accounts in connection with 
tax return preparation. 
‘‘(2) REQUIREMENT
OF
MATCHING
FUNDS.—A 
qualified return preparation program must provide 
matching funds on a dollar-for-dollar basis for all 
grants provided under this section. Matching funds 
may include— 
‘‘(A) the salary (including fringe benefits) 
of individuals performing services for the pro-
gram, 
‘‘(B) the cost of equipment used in the pro-
gram, and 
‘‘(C) other ordinary and necessary costs as-
sociated with the program. 
Indirect expenses, including general overhead of any 
entity administering the program, shall not be count-
ed as matching funds. 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—Each applicant for a grant 
under this section shall submit an application to the 
Secretary at such time, in such manner, and con-
taining such information as the Secretary may rea-
sonably require.
182 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to applica-
tions which demonstrate— 
‘‘(A) assistance to applicable taxpayers, 
with emphasis on outreach to, and services for, 
such taxpayers, 
‘‘(B) taxpayer outreach and educational ac-
tivities relating to eligibility and availability of 
income supports available through this title, in-
cluding the earned income tax credit, and 
‘‘(C) specific outreach and focus on one or 
more underserved populations. 
‘‘(3) AMOUNTS TAKEN INTO ACCOUNT.—In deter-
mining matching grants under this section, the Sec-
retary shall only take into account amounts provided 
by the qualified return preparation program for ex-
penses described in subsection (b). 
‘‘(d) PROGRAM ADHERENCE.— 
‘‘(1) IN GENERAL.—The Secretary shall establish 
procedures for, and shall conduct not less frequently 
than once every 5 calendar years during which a 
qualified return preparation program is operating 
under a grant under this section, periodic site vis-
its—
183 
‘‘(A) to ensure the program is carrying out 
the purposes of this section, and 
‘‘(B) to determine whether the program 
meets such program adherence standards as the 
Secretary shall by regulation or other guidance 
prescribe. 
‘‘(2) ADDITIONAL
REQUIREMENTS
FOR
GRANT 
RECIPIENTS
NOT
MEETING
PROGRAM
ADHERENCE 
STANDARDS.—In the case of any qualified return 
preparation program which— 
‘‘(A) is awarded a grant under this section, 
and 
‘‘(B) is subsequently determined— 
‘‘(i) not to meet the program adherence 
standards described in paragraph (1)(B), or 
‘‘(ii) not to be otherwise carrying out 
the purposes of this section, 
such program shall not be eligible for any additional 
grants under this section unless such program pro-
vides sufficient documentation of corrective measures 
established to address any such deficiencies deter-
mined. 
‘‘(e) DEFINITIONS.—For purposes of this section—
184 
‘‘(1) QUALIFIED
RETURN
PREPARATION
PRO-
GRAM.—The term ‘qualified return preparation pro-
gram’ means any program— 
‘‘(A) which provides assistance to individ-
uals, not less than 90 percent of whom are appli-
cable taxpayers, in preparing and filing Federal 
income tax returns, 
‘‘(B) which is administered by a qualified 
entity, 
‘‘(C) in which all volunteers who assist in 
the preparation of Federal income tax returns 
meet the training requirements prescribed by the 
Secretary, and 
‘‘(D) which uses a quality review process 
which reviews 100 percent of all returns. 
‘‘(2) QUALIFIED ENTITY.— 
‘‘(A) IN GENERAL.—The term ‘qualified en-
tity’ means any entity which— 
‘‘(i) is an eligible organization, 
‘‘(ii) is in compliance with Federal tax 
filing and payment requirements, 
‘‘(iii) is not debarred or suspended 
from Federal contracts, grants, or coopera-
tive agreements, and
185 
‘‘(iv) agrees to provide documentation 
to substantiate any matching funds pro-
vided pursuant to the grant program under 
this section. 
‘‘(B) ELIGIBLE ORGANIZATION.—The term 
‘eligible organization’ means— 
‘‘(i) an institution of higher education 
which is described in section 102 (other 
than subsection (a)(1)(C) thereof) of the 
Higher Education Act of 1965 (20 U.S.C. 
1002), as in effect on the date of the enact-
ment of this section, and which has not been 
disqualified from participating in a pro-
gram under title IV of such Act, 
‘‘(ii) an organization described in sec-
tion 501(c) and exempt from tax under sec-
tion 501(a), 
‘‘(iii) a local government agency, in-
cluding— 
‘‘(I) a county or municipal gov-
ernment agency, and 
‘‘(II) an Indian tribe, as defined 
in section 4(13) of the Native Amer-
ican Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C.
186 
4103(13)), including any tribally des-
ignated housing entity (as defined in 
section 4(22) of such Act (25 U.S.C. 
4103(22))), tribal subsidiary, subdivi-
sion, or other wholly owned tribal enti-
ty, 
‘‘(iv) a local, State, regional, or na-
tional coalition (with one lead organization 
which meets the eligibility requirements of 
clause (i), (ii), or (iii) acting as the appli-
cant organization), or 
‘‘(v) in the case of applicable taxpayers 
and members of underserved populations 
with respect to which no organizations de-
scribed in the preceding clauses are avail-
able— 
‘‘(I) a State government agency, 
or 
‘‘(II) an office providing Coopera-
tive Extension services (as established 
at the land-grant colleges and univer-
sities under the Smith-Lever Act of 
May 8, 1914). 
‘‘(3) APPLICABLE TAXPAYERS.—The term ‘appli-
cable taxpayer’ means a taxpayer whose income for
187 
the taxable year does not exceed an amount equal to 
the completed phaseout amount under section 32(b) 
for a married couple filing a joint return with three 
or more qualifying children, as determined in a rev-
enue procedure or other published guidance. 
‘‘(4) UNDERSERVED
POPULATION.—The term 
‘underserved population’ includes populations of per-
sons with disabilities, persons with limited English 
proficiency, Native Americans, individuals living in 
rural areas, members of the Armed Forces and their 
spouses, and the elderly. 
‘‘(f) SPECIAL RULES AND LIMITATIONS.— 
‘‘(1) DURATION OF GRANTS.—Upon application 
of a qualified return preparation program, the Sec-
retary is authorized to award a multi-year grant not 
to exceed 3 years. 
‘‘(2) AGGREGATE LIMITATION.—Unless otherwise 
provided by specific appropriation, the Secretary 
shall not allocate more than $30,000,000 per fiscal 
year (exclusive of costs of administering the program) 
to grants under this section. 
‘‘(g) PROMOTION OF PROGRAMS.— 
‘‘(1) IN GENERAL.—The Secretary shall promote 
tax preparation through qualified return preparation
188 
programs through the use of mass communications 
and other means. 
‘‘(2) PROVISION
OF
INFORMATION
REGARDING 
QUALIFIED
RETURN
PREPARATION
PROGRAMS.—The 
Secretary may provide taxpayers information regard-
ing qualified return preparation programs receiving 
grants under this section. 
‘‘(3) VITA GRANTEE REFERRAL.—Qualified re-
turn preparation programs receiving a grant under 
this section are encouraged, in appropriate cases, to— 
‘‘(A) advise taxpayers of the availability of, 
and eligibility requirements for receiving, advice 
and assistance from qualified low-income tax-
payer clinics receiving funding under section 
7526, and 
‘‘(B) provide information regarding the lo-
cation of, and contact information for, such clin-
ics.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 77 is amended by inserting after the item relating 
to section 7526 the following new item: 
‘‘Sec. 7526A. Return preparation programs for applicable taxpayers.’’.
189 
SEC. 1402. PROVISION OF INFORMATION REGARDING LOW- 
INCOME TAXPAYER CLINICS. 
(a) IN GENERAL.—Section 7526(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(6) PROVISION
OF
INFORMATION
REGARDING 
QUALIFIED
LOW-INCOME
TAXPAYER
CLINICS.—Not-
withstanding any other provision of law, officers and 
employees of the Department of the Treasury may— 
‘‘(A) advise taxpayers of the availability of, 
and eligibility requirements for receiving, advice 
and assistance from one or more specific quali-
fied low-income taxpayer clinics receiving fund-
ing under this section, and 
‘‘(B) provide information regarding the lo-
cation of, and contact information for, such clin-
ics.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 1403. NOTICE FROM IRS REGARDING CLOSURE OF TAX-
PAYER ASSISTANCE CENTERS. 
Not later than 90 days before the date that a proposed 
closure of a Taxpayer Assistance Center would take effect, 
the Secretary of the Treasury (or the Secretary’s delegate) 
shall—
190 
(1) make publicly available (including by non- 
electronic means) a notice which— 
(A) identifies the Taxpayer Assistance Cen-
ter proposed for closure and the date of such pro-
posed closure, and 
(B) 
identifies 
the 
relevant 
alternative 
sources of taxpayer assistance which may be uti-
lized by taxpayers affected by such proposed clo-
sure, and 
(2) submit to Congress a written report that in-
cludes— 
(A) the information included in the notice 
described in paragraph (1), 
(B) the reasons for such proposed closure, 
and 
(C) such other information as the Secretary 
may determine appropriate. 
SEC. 1404. RULES FOR SEIZURE AND SALE OF PERISHABLE 
GOODS RESTRICTED TO ONLY PERISHABLE 
GOODS. 
(a) IN GENERAL.—Section 6336 of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘or become great-
ly reduced in price or value by keeping, or that such prop-
erty cannot be kept without great expense’’.
191 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property seized after the date of the 
enactment of this Act. 
SEC. 1405. WHISTLEBLOWER REFORMS. 
(a) MODIFICATIONS
TO DISCLOSURE RULES
FOR 
WHISTLEBLOWERS.— 
(1) IN GENERAL.—Section 6103(k) is amended 
by adding at the end the following new paragraph: 
‘‘(13) DISCLOSURE TO WHISTLEBLOWERS.— 
‘‘(A) IN GENERAL.—The Secretary may dis-
close, to any individual providing information 
relating to any purpose described in paragraph 
(1) or (2) of section 7623(a), return information 
related to the investigation of any taxpayer with 
respect to whom the individual has provided 
such information, but only to the extent that 
such disclosure is necessary in obtaining infor-
mation, which is not otherwise reasonably avail-
able, with respect to the correct determination of 
tax liability for tax, or the amount to be collected 
with respect to the enforcement of any other pro-
vision of this title. 
‘‘(B) UPDATES ON WHISTLEBLOWER INVES-
TIGATIONS.—The Secretary shall disclose to an 
individual providing information relating to
192 
any purpose described in paragraph (1) or (2) 
of section 7623(a) the following: 
‘‘(i) Not later than 60 days after a case 
for which the individual has provided infor-
mation has been referred for an audit or ex-
amination, a notice with respect to such re-
ferral. 
‘‘(ii) Not later than 60 days after a 
taxpayer with respect to whom the indi-
vidual has provided information has made 
a payment of tax with respect to tax liabil-
ity to which such information relates, a no-
tice with respect to such payment. 
‘‘(iii) Subject to such requirements and 
conditions as are prescribed by the Sec-
retary, upon a written request by such indi-
vidual— 
‘‘(I) information on the status 
and stage of any investigation or ac-
tion related to such information, and 
‘‘(II) in the case of a determina-
tion of the amount of any award under 
section 7623(b), the reasons for such 
determination.
193 
Clause (iii) shall not apply to any information 
if the Secretary determines that disclosure of 
such information would seriously impair Federal 
tax administration. Information described in 
clauses (i), (ii), and (iii) may be disclosed to a 
designee of the individual providing such infor-
mation in accordance with guidance provided by 
the Secretary.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) CONFIDENTIALITY OF INFORMATION.— 
Section 6103(a)(3) is amended by striking ‘‘sub-
section (k)(10)’’ and inserting ‘‘paragraph (10) 
or (13) of subsection (k)’’. 
(B) PENALTY FOR UNAUTHORIZED DISCLO-
SURE.—Section 7213(a)(2) is amended by strik-
ing ‘‘(k)(10)’’ and inserting ‘‘(k)(10) or (13)’’. 
(C) COORDINATION
WITH
AUTHORITY
TO 
DISCLOSE FOR INVESTIGATIVE PURPOSES.—Sec-
tion 6103(k)(6) is amended by adding at the end 
the following new sentence: ‘‘This paragraph 
shall not apply to any disclosure to an indi-
vidual providing information relating to any 
purpose described in paragraph (1) or (2) of sec-
tion 7623(a) which is made under paragraph 
(13)(A).’’.
194 
(b) PROTECTION
AGAINST
RETALIATION.—Section 
7623 is amended by adding at the end the following new 
subsection: 
‘‘(d) CIVIL ACTION TO PROTECT AGAINST RETALIA-
TION CASES.— 
‘‘(1) ANTI-RETALIATION
WHISTLEBLOWER
PRO-
TECTION FOR EMPLOYEES.—No employer, or any offi-
cer, employee, contractor, subcontractor, or agent of 
such employer, may discharge, demote, suspend, 
threaten, harass, or in any other manner discrimi-
nate against an employee in the terms and conditions 
of employment (including through an act in the ordi-
nary course of such employee’s duties) in reprisal for 
any lawful act done by the employee— 
‘‘(A) to provide information, cause informa-
tion to be provided, or otherwise assist in an in-
vestigation regarding underpayment of tax or 
any conduct which the employee reasonably be-
lieves constitutes a violation of the internal rev-
enue laws or any provision of Federal law relat-
ing to tax fraud, when the information or assist-
ance is provided to the Internal Revenue Service, 
the Secretary of Treasury, the Treasury Inspec-
tor General for Tax Administration, the Comp-
troller General of the United States, the Depart-
195 
ment of Justice, the United States Congress, a 
person with supervisory authority over the em-
ployee, or any other person working for the em-
ployer who has the authority to investigate, dis-
cover, or terminate misconduct, or 
‘‘(B) to testify, participate in, or otherwise 
assist in any administrative or judicial action 
taken by the Internal Revenue Service relating to 
an alleged underpayment of tax or any violation 
of the internal revenue laws or any provision of 
Federal law relating to tax fraud. 
‘‘(2) ENFORCEMENT ACTION.— 
‘‘(A) IN GENERAL.—A person who alleges 
discharge or other reprisal by any person in vio-
lation of paragraph (1) may seek relief under 
paragraph (3) by— 
‘‘(i) filing a complaint with the Sec-
retary of Labor, or 
‘‘(ii) if the Secretary of Labor has not 
issued a final decision within 180 days of 
the filing of the complaint and there is no 
showing that such delay is due to the bad 
faith of the claimant, bringing an action at 
law or equity for de novo review in the ap-
propriate district court of the United