ments under subsections (b) and (c) of sec-
tion 416. 
‘‘(iii) VESTING.—For purposes of de-
termining whether an employee described 
in clause (i) has a nonforfeitable right to 
employer contributions (other than con-
tributions 
described 
in 
paragraph 
(3)(D)(i)) under the arrangement, each 
12-month period for which the employee 
has at least 500 hours of service shall be 
treated as a year of service. 
‘‘(iv) 
EMPLOYEES
WHO
BECOME 
FULL-TIME
EMPLOYEES.—This subpara-
graph shall cease to apply to any employee 
as of the first plan year beginning after 
the plan year in which the employee meets 
the 
requirements 
of 
section 
410(a)(1)(A)(ii) without regard to para-
graph (2)(D)(ii). 
‘‘(C) EXCEPTION FOR EMPLOYEES UNDER 
COLLECTIVELY BARGAINED PLANS, ETC.—Para-
graph (2)(D)(ii) shall not apply to employees 
described in section 410(b)(3). 
‘‘(D) SPECIAL RULES.— 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(i) TIME
OF
PARTICIPATION.—The 
rules of section 410(a)(4) shall apply to an 
employee eligible to participate in an ar-
rangement solely by reason of paragraph 
(2)(D)(ii). 
‘‘(ii) 12-MONTH PERIODS.—12-month 
periods shall be determined in the same 
manner as under the last sentence of sec-
tion 410(a)(3)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2013, except that, for purposes of section 
401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 (as 
added by such amendments), 12-month periods beginning 
before January 1, 2014, shall not be taken into account. 
SEC. 104. SEPARATE APPLICATION OF TOP HEAVY RULES 
TO DEFINED CONTRIBUTION PLANS COV-
ERING PART-TIME EMPLOYEES. 
(a) IN GENERAL.—Paragraph (2) of section 416(c) 
is amended by adding at the end the following: 
‘‘(C) SEPARATE APPLICATION TO EMPLOY-
EES NOT MEETING AGE AND SERVICE REQUIRE-
MENTS.—If employees not meeting the age or 
service requirements of section 410(a)(1) (with-
out regard to subparagraph (B) thereof) are 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
covered under a plan of the employer which 
meets the requirements of paragraphs (A) and 
(B) separately with respect to such employees, 
such employees may be excluded from consider-
ation in determining whether any plan of the 
employer meets the requirements of subpara-
graphs (A) and (B).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to plan years beginning after 
the date of the enactment of this Act. 
SEC. 105. MODIFICATION OF SAVER’S CREDIT. 
(a) 50 PERCENT CREDIT FOR ALL TAXPAYERS: EX-
PANSION OF PHASEOUT RANGES.—Subsection (b) of sec-
tion 25B is amended to read as follows: 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the applicable percentage is 50 percent. 
‘‘(2) PHASEOUT.—The percentage under para-
graph (1) shall be reduced (but not below zero) by 
the number of percentage points which bears the 
same ratio to 50 percentage points as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s adjusted gross in-
come for such taxable year, over 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(ii) the applicable dollar amount, 
bears to 
‘‘(B) the phaseout range. 
If any reduction determined under this paragraph is 
not a whole percentage point, such reduction shall be 
rounded to the nearest whole percentage point. 
‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT 
RANGE.— 
‘‘(A) JOINT
RETURNS.—Except as pro-
vided in subparagraph (B)— 
‘‘(i) the applicable dollar amount is 
$65,000, and 
‘‘(ii) the phaseout range is $20,000. 
‘‘(B) OTHER RETURNS.—In the case of— 
‘‘(i) a head of a household (as defined 
in section 2(b)), the applicable dollar 
amount and the phaseout range shall be 3⁄4 
of the amounts applicable under subpara-
graph (A) (as adjusted under paragraph 
(4)), and 
‘‘(ii) any taxpayer who is not filing a 
joint return and who is not a head of a 
household (as so defined), the applicable 
dollar amount and the phaseout range 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
shall be 1⁄2 of the amounts applicable 
under subparagraph (A) (as so adjusted). 
‘‘(4) INFLATION ADJUSTMENT OF APPLICABLE 
DOLLAR AMOUNT.—In the case of any taxable year 
beginning in a calendar year after 2014, the dollar 
amount in paragraph (3)(A)(i) shall be increased by 
an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2013’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
Any increase determined under the preceding sen-
tence shall be rounded to the nearest multiple of 
$500.’’. 
(b) CREDIT MADE REFUNDABLE; MATCHING CON-
TRIBUTIONS.— 
(1) CREDIT MADE REFUNDABLE.—The Internal 
Revenue Code of 1986 is amended by moving section 
25B to subpart C of part IV of subchapter A of 
chapter 1 of such Code (relating to refundable cred-
its), by inserting section 25B after section 36B, and 
by redesignating section 25B as section 36C. 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
(2) MATCHING CONTRIBUTIONS.—Section 36C, 
as redesignated by paragraph (1), is amended by 
adding at the end the following: 
‘‘(g) MATCHING CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—The credit allowed to an el-
igible individual under this section for any taxable 
year shall be twice the credit which would (but for 
this subsection) be allowed if— 
‘‘(A) the individual consents to the applica-
tion of paragraph (2), and 
‘‘(B) a designation by such individual is in 
effect for such year under paragraph (3). 
‘‘(2) CREDIT PAID INTO DESIGNATED RETIRE-
MENT ACCOUNT.—Any credit under this section for 
any taxable year shall be paid by the Secretary into 
the designated retirement account of the individual 
for such year. The amount payable under the pre-
ceding sentence shall be subject to the reductions 
under section 6402 in the same manner as if such 
amount were an overpayment. The amount so paid 
shall be treated as refunded to such individual. 
‘‘(3) DESIGNATED
RETIREMENT
ACCOUNT.— 
For purposes of this subsection, the term ‘des-
ignated retirement account’ means any account or 
plan— 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(A) of a type to which qualified retire-
ment savings contributions may be made, 
‘‘(B) which is for such individual’s benefit, 
and 
‘‘(C) which is designated by such indi-
vidual (in such form and manner as the Sec-
retary may provide) on the return of tax for the 
taxable year. 
‘‘(4) TREATMENT
OF
MATCHING
CONTRIBU-
TIONS.—In the case of an amount paid under para-
graph (2) into a designated retirement account— 
‘‘(A) any dollar limitation otherwise appli-
cable to the amount of contributions or defer-
rals to such account shall be increased by the 
amount so paid, 
‘‘(B) the individual’s basis in such account 
shall not be increased by reason of the amount 
so paid, and 
‘‘(C) such amount shall be treated as an 
employer contribution for the plan year in 
which such amount is paid for purposes of— 
‘‘(i) section 401(k)(3), and 
‘‘(ii) section 408(k)(6)(A)(iii). 
‘‘(5) REGULATIONS.—The Secretary shall pre-
scribe such regulations or other guidance as may be 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
necessary to address situations under which the Sec-
retary is not able to make a payment to a designated 
retirement account of an individual, including a plan 
of an employer for which the individual no longer 
works and to an account that does not exist.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 6211(b)(4)(A) is amended by 
inserting ‘‘36C,’’ after ‘‘36B,’’. 
(B) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 is amend-
ed by striking the item relating to section 25B. 
(C) The table of sections for subpart C of 
such part is amended by adding at the end the 
following new item: 
‘‘Sec. 36C. Elective deferrals and IRA contributions by certain individuals.’’. 
(D) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ 
after ‘‘36B,’’. 
(c) MAXIMUM CONTRIBUTIONS.—Subsection (a) of 
section 36C, as redesignated by subsection (b), is amended 
to read as follows: 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
individual, there shall be allowed as a credit against 
the tax imposed by this subtitle for the taxable year 
an amount equal to the applicable percentage of so 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
much of the qualified retirement savings contribu-
tions of the eligible individual for the taxable year as 
do not exceed the contribution limit. 
‘‘(2) CONTRIBUTION LIMIT.—For purposes of 
paragraph (1)— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the contribution 
limit is $500 ($1,500 for taxable years begin-
ning after 2023). 
‘‘(B) ANNUAL
INCREASES
TO
REACH 
$1,500.—In the case of taxable years beginning 
in a calendar year after 2013 and before 2024, 
the contribution limit shall be the sum of— 
‘‘(i) the contribution limit for taxable 
years beginning in the preceding calendar 
year (as increased under this subpara-
graph), and 
‘‘(ii) $100. 
‘‘(C) INFLATION
ADJUSTMENT.—In the 
case of any taxable year beginning in a calendar 
year after 2023, the $1,500 amount in subpara-
graph (A) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2022’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
Any increase determined under the preceding 
sentence shall be rounded to the nearest mul-
tiple of $50.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 106. RETIREMENT HANDBOOK AND RETIREMENT 
READINESS CHECKLIST. 
(a) IN GENERAL.—Section 704 of the Social Security 
Act is amended by adding at the end the following new 
subsection: 
‘‘(f) RETIREMENT INFORMATION.— 
‘‘(1) IN GENERAL.—The Commissioner, in con-
sultation with the Social Security Advisory Board, 
shall prepare— 
‘‘(A) the financial reference handbook de-
scribed in paragraph (2), and 
‘‘(B) the retirement readiness checklist de-
scribed in paragraph (3). 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(2) FINANCIAL REFERENCE HANDBOOK.—The 
handbook described in this paragraph is a pamphlet 
which— 
‘‘(A) includes definitions of basic financial 
terms, 
‘‘(B) contains a listing of financial issues 
and problems facing individuals who are retir-
ing and explanations of methods of dealing with 
the issues and problems, and 
‘‘(C) is in a form readily understandable 
by the average retiree. 
‘‘(3) READINESS
CHECKLIST.—The checklist 
described in this paragraph is a list of questions that 
individuals need to consider in preparation for re-
tirement, including the following: 
‘‘(A) What annual income will the indi-
vidual need in retirement? 
‘‘(B) How many years will the individual 
live in retirement? 
‘‘(C) What will be the cost of Medicare 
premiums? 
‘‘(D) What will be the cost of insurance 
necessary to supplement Medicare? 
‘‘(E) How will savings be invested in re-
tirement? 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(F) How will taxes affect your retirement 
income? 
The checklist will include answers to the questions 
or directions as to where information is available to 
answer the questions. All information shall be in a 
form readily understandable to the average recipient 
of the checklist. 
‘‘(4) REVISIONS.—The Commissioner shall peri-
odically revise and update the handbook and check-
list prepared under this subsection. 
‘‘(5) DISTRIBUTION OF MATERIALS.— 
‘‘(A) HANDBOOK.—The financial reference 
handbook described in paragraph (2) shall be 
included with materials provided to an indi-
vidual when the individual first applies for ben-
efits under title II and such other times as the 
Commissioner determines appropriate. 
‘‘(B) CHECKLIST.—The retirement readi-
ness checklist described in paragraph (3) shall 
be included with an individual’s annual social 
security account statement provided under sec-
tion 1143.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act, but the handbooks and checklists required to 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
be provided by such amendment shall be provided on or 
after January 1, 2014 (or such earlier date as the Com-
missioner of Social Security may provide). 
SEC. 107. ADDITIONAL TIME TO ADOPT A QUALIFIED PLAN. 
(a) IN GENERAL.—Subsection (a) of section 401 is 
amended by inserting after paragraph (37) the following 
new paragraph: 
‘‘(38) The adoption of a plan by the applicable 
date shall not cause a plan to fail to meet the re-
quirements of this section for a plan year. For pur-
poses of the preceding sentence, the term ‘applicable 
date’ means the due date (including extensions) for 
filing the Federal income tax return for the employ-
er’s taxable year in which ends the plan year for 
which the plan is effective. A plan adopted in ac-
cordance with this paragraph will be treated as es-
tablished by the end of the employer’s taxable year 
for purposes of applying section 404(a).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to years beginning after Decem-
ber 31, 2013. 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
TITLE II—ENCOURAGING SMALL 
BUSINESSES TO ENTER AND 
REMAIN IN THE EMPLOYER 
RETIREMENT PLAN SYSTEM 
SEC. 201. INCREASE IN CREDIT LIMITATION FOR SMALL 
EMPLOYER 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 
415(q)) and who is eligible to participate 
in the eligible employer plan maintained by 
the eligible employer, or 
‘‘(ii) $5,000, and’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
SEC. 202. ELIMINATING BARRIERS TO USE OF MULTIPLE 
EMPLOYER PLANS. 
By December 31, 2013, the Secretaries of the Treas-
ury and Labor shall— 
(1) prescribe administrative guidance estab-
lishing conditions under which an employer partici-
pating in a plan described in section 413(c) of the 
Internal Revenue Code of 1986 shall not have any 
liability under title I of the Employee Retirement In-
come Security Act of 1974 with respect to the acts 
or omissions of one or more other participating em-
ployers, which regulations may require that the por-
tion of the plan attributable to such participating 
employers be spun off to plans maintained by such 
employers, 
(2) prescribe administrative guidance estab-
lishing conditions under which a plan described in 
section 413(c) of such Code may be treated as satis-
fying the qualification requirements of sections 
401(a) and 413(c) of such Code despite the violation 
of such requirements by one or more participating 
employers, including requiring, if appropriate, that 
the portion of the plan attributable to such partici-
pating employers be spun off to plans maintained by 
such employers, and 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
(3) prescribe administrative guidance providing 
simplified means by which plans described in section 
413(c) of such Code may satisfy the requirements of 
section 103 of the Employee Retirement Income Se-
curity Act of 1974. 
TITLE III—PRESERVATION OF 
INCOME 
SEC. 301. STUDY OF APPLICATION OF SPOUSAL CONSENT 
RULES TO DEFINED CONTRIBUTION PLANS. 
(a) STUDY.—The Government Accountability Office 
shall conduct a study of the feasibility and desirability of 
extending the application of the requirements of section 
205 of the Employee Retirement Income Security Act of 
1974 and sections 401(a)(11) and 417 of the Internal 
Revenue Code of 1986 (relating to spousal consent re-
quirements) to defined contribution plans to which such 
requirements do not apply. Such study shall include con-
sideration of any modifications of such requirements that 
are necessary to apply such requirements to such plans. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Government Account-
ability Office shall report the results of the study, together 
with any recommendations for legislative changes, to the 
Committees on Finance and Health, Education, Labor, 
and Pensions of the Senate and the Committees on Ways 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
and Means and Education and the Workforce of the 
House of Representatives. 
SEC. 302. ADMINISTRATION OF JOINT AND SURVIVOR AN-
NUITY REQUIREMENTS. 
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Section 402(c) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1102(c)) is amended— 
(A) in paragraph (2) by striking ‘‘or’’ at 
the end, 
(B) in paragraph (3) by striking the period 
at the end and inserting ‘‘; or’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(4) that a named fiduciary, or a fiduciary des-
ignated by a named fiduciary pursuant to a plan 
procedure described in section 405(e), may appoint 
an annuity administrator or administrators with re-
sponsibility for administration of an individual ac-
count plan in accordance with the requirements of 
section 205 and payment of any annuity required 
thereunder.’’. 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
(2) Section 405 of such Act (29 U.S.C. 1105) 
is amended by adding at the end the following new 
subsection: 
‘‘(e) ANNUITY ADMINISTRATOR.—If an annuity ad-
ministrator or administrators have been appointed under 
section 402(c)(4) and such entity acknowledges in writing 
that they are the annuity administrator and a fiduciary 
under the plan with respect to their appointed duties, then 
neither the named fiduciary nor any appointing fiduciary 
shall be liable for any act or omission of the annuity ad-
ministrator except to the extent that— 
‘‘(1) the named fiduciary or appointing fidu-
ciary violated section 404(a)(1)— 
‘‘(A) with respect to such allocation or des-
ignation, or 
‘‘(B) in continuing the allocation or des-
ignation, 
‘‘(2) the named fiduciary or appointing fidu-
ciary would otherwise be liable in accordance with 
subsection (a), or 
‘‘(3) the entity appointed to be the annuity ad-
ministrator is neither an insurance company nor ap-
proved to be an annuity administrator by the Sec-
retary.’’. 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply as of the date of enactment of 
this Act. 
SEC. 303. AVAILABILITY OF DISTRIBUTION OPTIONS. 
(a) LIFETIME INCOME INVESTMENTS.—By the date 
that is one year after the date of enactment of this Act, 
the Secretary of the Treasury shall issue final regulations 
under which it is clarified that any specified age or service 
condition (or combination of age and service conditions) 
with respect to a lifetime income investment (as defined 
in section 401(a)(38)(B)(ii)) under a defined contribution 
plan shall be disregarded in determining whether such life-
time income investment is currently available to an em-
ployee for purposes of Treasury Regulation section 
1.401(a)(4)–4(b) (or any successor provision). 
(b) ENFORCEMENT.—As of the date of enactment of 
this Act, the Secretary of the Treasury shall administer 
and enforce the law in accordance with subsection (a) with 
respect to plan years beginning before, on, or after the 
date of enactment of this Act. 
(c) EFFECTIVE DATE.—This section shall take effect 
as of the date of enactment of this Act. 
SEC. 304. ROLLOVER OF INSURANCE CONTRACTS TO IRAS. 
(a) IN GENERAL.—Section 408(a)(3) is amended by 
inserting ‘‘other than insurance contracts that were rolled 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
over to an IRA from a qualified retirement plan described 
in clause (iii), (iv), or (vi) of section 402(c)(8)(B) provided 
that such contracts provide only incidental death benefits 
taking into account both the IRA and the qualified retire-
ment plan’’ after ‘‘contract’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to years beginning after Decem-
ber 31, 2013. 
SEC. 305. PORTABILITY OF LIFETIME INCOME OPTIONS. 
(a) IN GENERAL.—Subsection (a) of section 401 is 
amended by inserting after paragraph (37) the following 
new paragraph: 
‘‘(38) PORTABILITY OF LIFETIME INCOME.— 
‘‘(A) IN GENERAL.—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 invest-
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
ment option under the plan except as may oth-
erwise be provided by regulations. 
‘‘(B) DEFINITIONS.—For purposes of this 
subsection— 
‘‘(i) the term ‘qualified distribution’ 
means a direct trustee-to-trustee transfer 
to an eligible retirement plan (as defined 
in section 402(c)(8)(B)), as described in 
section 401(a)(31)(A), 
‘‘(ii) the term ‘lifetime income invest-
ment’ means an investment option that is 
designed to provide an employee with elec-
tion rights— 
‘‘(I) that are not uniformly avail-
able with respect to other investment 
options under the plan, and 
‘‘(II) that 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 defined in sec-
tion 402(c)(8)(B)) through a direct 
trustee-to-trustee transfer to such 
other eligible retirement plan under 
section 401(a)(31)(A), 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(iii) the term ‘lifetime income fea-
ture’ means— 
‘‘(I) a feature that 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 em-
ployee and the employee’s designated 
beneficiary, taking into account the 
rules 
of 
clause 
(iii) 
of 
section 
401(a)(9)(I), 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 de-
scribed in subparagraph (B) of section 
402(c)(8) (without regard to clauses (i) 
and (ii) thereof).’’. 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
(b) CASH OR DEFERRED ARRANGEMENT.—Clause (i) 
of section 401(k)(2)(B) 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 of clause (i) the following: 
‘‘(VI) with respect to amounts in-
vested 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 plan, provided that any distribu-
tion under this subclause must be in 
the form of a qualified distribution (as 
defined in section 401(a)(38)(B)(i)) 
or a qualified plan distribution annu-
ity contract (as defined in section 
401(a)(38)(B)(iv)), and’’. 
(c) SECTION 403(b) PLANS.— 
(1) ANNUITY CONTRACTS.—Paragraph (11) of 
section 403(b) is amended by striking ‘‘or’’ at the 
end of subparagraph (B), by striking the period at 
the end of subparagraph (C), and by inserting ‘‘, 
or’’, and by adding at the end the following: 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS
‘‘(D) with respect to amounts invested in a 
lifetime income investment (as defined in sec-
tion 401(a)(38)(B)(ii)), the date that is 90 days 
prior to the date that such lifetime income in-
vestment may no longer be held as an invest-
ment option under the plan, provided that any 
distribution under this subparagraph must be 
in the form of a qualified distribution (as de-
fined in section 401(a)(38)(B)(i)) or a qualified 
plan distribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(2) CUSTODIAL ACCOUNTS.—Clause (ii) of sec-
tion 403(b)(7)(A) is amended to read as follows: 
‘‘(ii) under the custodial account, no 
such amounts may be paid or made avail-
able to any distributee (unless such 
amount is a distribution to which section 
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, 
VerDate Mar 15 2010 
00:33 May 29, 2013
Jkt 029200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H2117.IH
H2117
pwalker on DSK7TPTVN1PROD with BILLS