I 
117TH CONGRESS 
2D SESSION 
H. R. 8125 
To amend the Internal Revenue Code of 1986 to provide for starter 401(k)s 
for employers with no retirement plans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2022 
Ms. SA´NCHEZ (for herself and Mr. LAHOOD) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Education and Labor, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for starter 401(k)s for employers with no retirement 
plans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Starter-K Act of 
2022’’. 
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SEC. 2. STARTER 401(k) PLANS FOR EMPLOYERS WITH NO 
RETIREMENT PLAN. 
(a) IN GENERAL.—Section 401(k) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(16) STARTER 401(k) DEFERRAL-ONLY PLANS 
FOR EMPLOYERS WITH NO RETIREMENT PLAN.— 
‘‘(A) IN GENERAL.—A starter 401(k) de-
ferral-only arrangement maintained by an eligi-
ble employer shall be treated as meeting the re-
quirements of paragraph (3)(A)(ii). 
‘‘(B) STARTER
401(k) DEFERRAL-ONLY 
ARRANGEMENT.—For purposes of this para-
graph, the term ‘starter 401(k) deferral-only 
arrangement’ means any cash or deferred ar-
rangement which meets— 
‘‘(i) the automatic deferral require-
ments of subparagraph (C), 
‘‘(ii) the contribution limitations of 
subparagraph (D), and 
‘‘(iii) the requirements of subpara-
graph (E) of paragraph (13). 
‘‘(C) AUTOMATIC DEFERRAL.— 
‘‘(i) IN GENERAL.—The requirements 
of this subparagraph are met if, under the 
arrangement, each employee eligible to 
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participate in the arrangement is treated 
as having elected to have the employer 
make elective contributions in an amount 
equal to a qualified percentage of com-
pensation. 
‘‘(ii) ELECTION
OUT.—The election 
treated as having been made under clause 
(i) shall cease to apply with respect to any 
employee if such employee makes an af-
firmative election— 
‘‘(I) to not have such contribu-
tions made, or 
‘‘(II) to make elective contribu-
tions at a level specified in such af-
firmative election. 
‘‘(iii) QUALIFIED PERCENTAGE.—For 
purposes of this subparagraph, the term 
‘qualified percentage’ means, with respect 
to any employee, any percentage deter-
mined under the arrangement if such per-
centage is applied uniformly and is not less 
than 3 or more than 15 percent. 
‘‘(D) CONTRIBUTION LIMITATIONS.— 
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‘‘(i) IN GENERAL.—The requirements 
of this subparagraph are met if, under the 
arrangement— 
‘‘(I) the only contributions which 
may be made are elective contribu-
tions of employees described in sub-
paragraph (C), and 
‘‘(II) the aggregate amount of 
such elective contributions which may 
be made with respect to any employee 
for any calendar year shall not exceed 
$6,000. 
‘‘(ii) COST-OF-LIVING ADJUSTMENT.— 
In the case of any calendar year beginning 
after December 31, 2023, the $6,000 
amount under clause (i) shall be adjusted 
in the same manner as under section 
402(g)(4), except that ‘2022’ shall be sub-
stituted for ‘2005’. 
‘‘(iii) CROSS REFERENCE.—For catch- 
up contributions for individuals age 50 or 
over, see section 414(v)(2)(B)(ii). 
‘‘(E) ELIGIBLE EMPLOYER.—For purposes 
of this paragraph— 
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‘‘(i) IN GENERAL.—The term ‘eligible 
employer’ means any employer which, dur-
ing the first plan year of the cash or de-
ferred arrangement described in subpara-
graph (B), does not maintain any other 
qualified plan. An employer treated as an 
eligible employer under the preceding sen-
tence shall be treated as an eligible em-
ployer with respect to the arrangement for 
any subsequent plan year without regard 
to whether it maintains another qualified 
plan. 
‘‘(ii) QUALIFIED
PLAN.—The term 
‘qualified plan’ means a plan, contract, 
pension, account, or trust described in sub-
paragraph (A) or (B) of paragraph (5) of 
section 219(g) (determined without regard 
to the last sentence of such paragraph 
(5)).’’. 
(b) CERTAIN ANNUITY CONTRACTS.—Subsection (b) 
of section 403 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(15) SAFE
HARBOR
DEFERRAL-ONLY
PLANS 
FOR EMPLOYERS WITH NO RETIREMENT PLAN.— 
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‘‘(A) IN GENERAL.—A safe harbor defer-
ral-only plan maintained by an eligible employer 
shall be treated as meeting the requirements of 
paragraph (12). 
‘‘(B) 
SAFE
HARBOR
DEFERRAL-ONLY 
PLAN.—For purposes of this paragraph, the 
term ‘safe harbor deferral-only plan’ means any 
plan which meets— 
‘‘(i) the automatic deferral require-
ments of subparagraph (C), 
‘‘(ii) the contribution limitations of 
subparagraph (D), and 
‘‘(iii) the requirements of subpara-
graph (E) of section 401(k)(13). 
‘‘(C) AUTOMATIC DEFERRAL.— 
‘‘(i) IN GENERAL.—The requirements 
of this subparagraph are met if, under the 
plan, each eligible employee is treated as 
having elected to have the employer make 
elective contributions in an amount equal 
to a qualified percentage of compensation. 
‘‘(ii) ELECTION
OUT.—The election 
treated as having been made under clause 
(i) shall cease to apply with respect to any 
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