IB 
Union Calendar No. 747 
115TH CONGRESS 
2D SESSION 
H. R. 6757 
[Report No. 115–959, Part I] 
To amend the Internal Revenue Code of 1986 to encourage retirement and 
family savings, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 10, 2018 
Mr. KELLY of Pennsylvania (for himself, Mr. BRADY of Texas, Mr. SAM 
JOHNSON of Texas, Mr. NUNES, Mr. REICHERT, Mr. ROSKAM, Mr. 
BUCHANAN, Mr. SMITH of Nebraska, Ms. JENKINS of Kansas, Mr. PAUL-
SEN, Mr. MARCHANT, Mrs. BLACK, Mr. REED, Mr. RENACCI, Mrs. 
NOEM, Mr. HOLDING, Mr. SMITH of Missouri, Mr. RICE of South Caro-
lina, Mr. SCHWEIKERT, Mrs. WALORSKI, Mr. CURBELO of Florida, Mr. 
BISHOP of Michigan, Mr. LAHOOD, Mr. WENSTRUP, and Mr. MITCHELL) 
introduced the following bill; which was referred to the Committee on 
Ways and Means, and in addition to the Committee on Education and 
the Workforce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
SEPTEMBER 24, 2018 
Additional sponsors: Mr. SESSIONS, Mrs. BLACKBURN, Mrs. COMSTOCK, Mr. 
HILL, and Mr. ESTES of Kansas 
SEPTEMBER 24, 2018 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
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SEPTEMBER 24, 2018 
Committee on Education and the Workforce discharged; committed to the 
Committee of the Whole House on the State of the Union and ordered 
to be printed 
[For text of introduced bill, see copy of bill as introduced on September 10, 2018] 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
retirement and family savings, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Family Savings Act of 2018’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 
Sec. 101. Multiple employer plans; pooled employer plans. 
Sec. 102. Rules relating to election of safe harbor 401(k) status. 
Sec. 103. Certain taxable non-tuition fellowship and stipend payments treated as 
compensation for IRA purposes. 
Sec. 104. Repeal of maximum age for traditional IRA contributions. 
Sec. 105. Qualified employer plans prohibited from making loans through credit 
cards and other similar arrangements. 
Sec. 106. Portability of lifetime income investments. 
Sec. 107. Treatment of custodial accounts on termination of section 403(b) plans. 
Sec. 108. Clarification of retirement income account rules relating to church-con-
trolled organizations. 
Sec. 109. Exemption from required minimum distribution rules for individuals 
with certain account balances. 
Sec. 110. Clarification of treatment of certain retirement plan contributions 
picked up by governmental employers for new or existing em-
ployees. 
Sec. 111. Elective deferrals by members of the Ready Reserve of a reserve compo-
nent of the Armed Forces. 
TITLE II—ADMINISTRATIVE IMPROVEMENTS 
Sec. 201. Plan adopted by filing due date for year may be treated as in effect 
as of close of year. 
Sec. 202. Modification of nondiscrimination rules to protect older, longer service 
participants. 
Sec. 203. Study of appropriate PBGC premiums. 
TITLE III—OTHER SAVINGS PROVISIONS 
Sec. 301. Universal Savings Accounts. 
Sec. 302. Expansion of section 529 plans. 
Sec. 303. Penalty-free withdrawals from retirement plans for individuals in case 
of birth of child or adoption. 
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TITLE I—EXPANDING AND PRE-
SERVING RETIREMENT SAV-
INGS 
SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER 
PLANS. 
(a) QUALIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Section 413 of the Internal 
Revenue Code of 1986 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 
described in section 401(a) or to a plan that consists 
of individual retirement accounts described in section 
408 (including by reason of subsection (c) thereof), 
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whichever is applicable, merely because one or more 
employers of employees covered by the plan fail to 
take such actions as are required of such employers 
for the plan to meet such requirements. 
‘‘(2) LIMITATIONS.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any plan unless the terms of the 
plan provide that in the case of any employer in 
the plan failing to take the actions described in 
paragraph (1)— 
‘‘(i) the assets of the plan attributable 
to employees of such employer (or bene-
ficiaries of such employees) will be trans-
ferred to a plan maintained only by such 
employer (or its successor), to an eligible re-
tirement 
plan 
as 
defined 
in 
section 
402(c)(8)(B) for each individual whose ac-
count is transferred, or to any other ar-
rangement that the Secretary determines is 
appropriate, unless the Secretary deter-
mines it is in the best interests of the em-
ployees of such employer (and the bene-
ficiaries of such employees) to retain the as-
sets in the plan, and 
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‘‘(ii) such employer (and not the plan 
with respect to which the failure occurred or 
any other employer in such plan) shall, ex-
cept to the extent provided by the Secretary, 
be liable for any liabilities with respect to 
such plan attributable to employees of such 
employer (or beneficiaries of such employ-
ees). 
‘‘(B) FAILURES
BY
POOLED
PLAN
PRO-
VIDERS.—If the pooled plan provider of a plan 
described in paragraph (1)(B) does not perform 
substantially all of the administrative duties 
which are required of the provider under para-
graph (3)(A)(i) for any plan year, the Secretary 
may provide that the determination as to wheth-
er the plan meets the requirements under this 
title applicable to a plan described in section 
401(a) or to a plan that consists of individual 
retirement accounts described in section 408 (in-
cluding by reason of subsection (c) thereof), 
whichever is applicable, shall be made in the 
same manner as would be made without regard 
to paragraph (1). 
‘‘(3) POOLED PLAN PROVIDER.— 
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‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘pooled plan provider’ 
means, with respect to any plan, a person who— 
‘‘(i) is designated by the terms of the 
plan as a named fiduciary (within the 
meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of 
1974), as the plan administrator, and as 
the person responsible to perform all admin-
istrative duties (including conducting prop-
er 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 the Employee 
Retirement Income Security Act of 
1974 or this title to a plan described in 
section 401(a) or to a plan that con-
sists of individual retirement accounts 
described in section 408 (including by 
reason of subsection (c) thereof), which-
ever is applicable, and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
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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-
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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). 
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‘‘(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-
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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) of such Code is amended by striking ‘‘sec-
tion 401(a)’’ and inserting ‘‘sections 401(a) and 
408(c)’’. 
(3) TECHNICAL AMENDMENT.—Section 408(c) of 
such Code is amended by inserting after paragraph 
(2) the following 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— 
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‘‘(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 
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‘‘(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— 
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‘‘(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— 
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‘‘(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-
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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 Family Savings Act 
of 2018 unless the plan administrator elects 
that the plan will be treated as a pooled em-
ployer plan and the plan meets the require-
ments of this title applicable to a pooled 
employer plan established 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 
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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 
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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). 
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‘‘(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 
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‘‘(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. 
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‘‘(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 
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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 
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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-
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strued as limiting the authority of the Secretary of 
the Treasury or the Secretary’s delegate (determined 
without regard to such amendments) to provide for 
the proper treatment of a failure to meet any require-
ment applicable under the Internal Revenue Code of 
1986 with respect to one employer (and its employees) 
in a multiple employer plan. 
SEC. 102. RULES RELATING TO ELECTION OF SAFE HARBOR 
401(k) STATUS. 
(a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE TO 
MATCHING CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Section 401(k)(12)(A) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘if such arrangement’’ and all that follows and 
inserting ‘‘if such arrangement— 
‘‘(i) meets the contribution require-
ments of subparagraph (B) and the notice 
requirements of subparagraph (D), or 
‘‘(ii) meets the contribution require-
ments of subparagraph (C).’’. 
(2) 
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENTS.—Section 401(k)(13)(B) of such Code is 
amended by striking ‘‘means’’ and all that follows 
and inserting ‘‘means a cash or deferred arrange-
ment— 
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‘‘(i) which is described in subpara-
graph (D)(i)(I) and meets the applicable re-
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) of such Code is amended by redesignating sub-
paragraph (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-
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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) of such Code is amended by adding at 
the end the following: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR EM-
PLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
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‘‘(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 
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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. 103. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 
AND STIPEND PAYMENTS TREATED AS COM-
PENSATION FOR IRA PURPOSES. 
(a) IN GENERAL.—Section 219(f)(1) of the Internal 
Revenue Code of 1986 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. 104. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
CONTRIBUTIONS. 
(a) IN GENERAL.—Section 219(d) of the Internal Rev-
enue Code of 1986 is amended by striking paragraph (1). 
(b) CONFORMING AMENDMENT.—Section 408A(c) of 
the Internal Revenue Code of 1986 is amended by striking 
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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. 105. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 
MAKING LOANS THROUGH CREDIT CARDS 
AND OTHER SIMILAR ARRANGEMENTS. 
(a) IN GENERAL.—Section 72(p)(2) of the Internal 
Revenue Code of 1986 is amended by redesignating sub-
paragraph (D) as subparagraph (E) and by inserting after 
subparagraph (C) the following new subparagraph: 
‘‘(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. 
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SEC. 106. PORTABILITY OF LIFETIME INCOME INVEST-
MENTS. 
(a) IN GENERAL.—Section 401(a) of the Internal Rev-
enue Code of 1986 is amended by inserting 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 
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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 
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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) of 
such Code is amended by striking ‘‘or’’ at the end of 
subclause (IV), by striking ‘‘and’’ at the end of sub-
clause (V) and inserting ‘‘or’’, and by adding at the 
end the following new subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect to 
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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) of such Code, 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 
following 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) of 
such Code is amended by striking ‘‘or’’ at the end of 
subparagraph (B), by striking the period at the end 
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of subparagraph (C) and inserting ‘‘, or’’, and by in-
serting after subparagraph (C) the following new sub-
paragraph: 
‘‘(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) of such Code 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 custodial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
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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 
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‘‘(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) of such 
Code is amended by striking ‘‘or’’ at the end of clause 
(ii), by inserting ‘‘or’’ at the end of clause (iii), and 
by adding 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) of such Code is amended by striking ‘‘and’’ 
at the end of subparagraph (B), by striking the period 
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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. 107. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
(a) IN GENERAL.—Section 403(b)(7) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(D) TREATMENT OF CUSTODIAL ACCOUNT 
UPON PLAN TERMINATION.— 
‘‘(i) IN GENERAL.—If— 
‘‘(I) an employer terminates the 
plan under which amounts are contrib-
uted to a custodial account under sub-
paragraph (A), and 
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‘‘(II) the person holding the assets 
of the account has demonstrated to the 
satisfaction of the Secretary under sec-
tion 408(a)(2) that the person is quali-
fied to be a trustee of an individual re-
tirement plan, 
then, as of the date of the termination, the 
custodial account shall be deemed to be an 
individual retirement plan for purposes of 
this title. 
‘‘(ii) TREATMENT AS ROTH IRA.—Any 
custodial account treated as an individual 
retirement plan under clause (i) shall be 
treated as a Roth IRA only if the custodial 
account was a designated Roth account.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to plan terminations occurring after De-
cember 31, 2018. 
SEC. 108. CLARIFICATION OF RETIREMENT INCOME AC-
COUNT RULES RELATING TO CHURCH-CON-
TROLLED ORGANIZATIONS. 
(a) IN GENERAL.—Section 403(b)(9)(B) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘(includ-
ing an employee described in section 414(e)(3)(B))’’ after 
‘‘employee described in paragraph (1)’’. 
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(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to plan years beginning after December 
31, 2008. 
SEC. 109. EXEMPTION FROM REQUIRED MINIMUM DIS-
TRIBUTION RULES FOR INDIVIDUALS WITH 
CERTAIN ACCOUNT BALANCES. 
(a) IN GENERAL.—Section 401(a)(9) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(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 
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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— 
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‘‘(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 
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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 
of such Code 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 
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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 
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‘‘(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. 110. CLARIFICATION OF TREATMENT OF CERTAIN RE-
TIREMENT PLAN CONTRIBUTIONS PICKED UP 
BY GOVERNMENTAL EMPLOYERS FOR NEW OR 
EXISTING EMPLOYEES. 
(a) IN GENERAL.—Section 414(h)(2) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of paragraph (1)’’ 
and inserting the following: 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)’’, and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) TREATMENT OF ELECTIONS BETWEEN 
ALTERNATIVE
BENEFIT
FORMULAS.—For pur-
poses of subparagraph (A), a contribution shall 
not fail to be treated as picked up by an employ-
ing unit merely because the employee may make 
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an irrevocable election between the application of 
two alternative benefit formulas involving the 
same or different levels of employee contribu-
tions.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to plan years beginning after the date 
of the enactment of this Act. 
SEC. 111. ELECTIVE DEFERRALS BY MEMBERS OF THE 
READY RESERVE OF A RESERVE COMPONENT 
OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 402(g) of the Internal Rev-
enue Code of 1986 is amended by adding 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. 
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‘‘(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. 
TITLE II—ADMINISTRATIVE 
IMPROVEMENTS 
SEC. 201. 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) of the Internal Rev-
enue Code of 1986 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: 
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‘‘(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. 202. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 of the Internal Revenue 
Code of 1986 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.— 
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‘‘(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). 
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‘‘(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 
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(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)), 
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‘‘(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). 
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‘‘(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. 
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‘‘(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— 
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‘‘(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 
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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 
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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-
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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— 
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‘‘(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) 
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(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 
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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. 
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‘‘(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 
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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) of such Code 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— 
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‘‘(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-
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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 
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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 
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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. 203. STUDY OF APPROPRIATE PBGC PREMIUMS. 
(a) IN GENERAL.—The Pension Benefit Guaranty 
Corporation (hereafter in this section referred to as ‘‘the 
Corporation’’) shall enter into a contract with an appro-
priate agency or organization to conduct an independent 
study of the Corporation’s Single Employer Pension Insur-
ance Modeling System. 
(b) SELECTION OF INDEPENDENT ORGANIZATION.— 
The appropriate agency or organization referred to in sub-
section (a) shall be selected by the Board of Directors of 
the Corporation. Such agency or organization shall be the 
Social Security Administration or any other agency or or-
ganization that such Board determines is independent from 
the Corporation and has the expertise to conduct the study 
described in this section. 
(c) STUDY.—The independent study referred to in sub-
section (a) shall begin not later than 6 months after the 
date of the enactment of this Act and shall— 
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(1) examine the current structure and level of 
premiums required to be paid by single employer 
plans (including fixed, variable and termination pre-
miums) to the Corporation to evaluate whether such 
premiums are sufficient for the Corporation to pay 
the benefits guaranteed by the Corporation, 
(2) evaluate whether there are alternative struc-
tures and levels of premiums that would better ac-
count for the risks posed by various categories of sin-
gle employer plans, including on the basis of— 
(A) industry, ownership structure, or size of 
the plan sponsor, 
(B) plan funded status, risk or volatility of 
plan investments, or credit worthiness of the 
plan sponsor, or 
(C) a combination of factors described in 
subparagraphs (A) and (B), 
(3) evaluate whether other methods of estimating 
the value of assets and liabilities should be used in the 
financial statements of the Corporation (including 
methods described in the report titled ‘‘The Risk Ex-
posure of the Pension Benefit Guaranty Corporation’’ 
published by the Congressional Budget Office in Sep-
tember 2005 and methods described in the report ti-
tled ‘‘Options to Improve the Financial Condition of 
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the Pension Benefit Guaranty Corporation’s Multiem-
ployer Program’’ published by the Congressional 
Budget Office in August 2016), 
(4) evaluate whether multiple employer plans in 
general, and multiple employer plans that are CSEC 
plans (as defined in section 414(y) of the Internal 
Revenue Code of 1986) in particular, have character-
istics that warrant a separate structure and level of 
premiums, and 
(5) include an explanation of the assumptions 
underlying each analysis involved in conducting such 
study. 
TITLE III—OTHER SAVINGS 
PROVISIONS 
SEC. 301. UNIVERSAL SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Subchapter F of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART IX—UNIVERSAL SAVINGS ACCOUNTS 
‘‘Sec. 530U. Universal Savings Accounts. 
‘‘SEC. 530U. UNIVERSAL SAVINGS ACCOUNTS. 
‘‘(a) GENERAL RULE.—A Universal Savings Account 
shall be exempt from taxation under this subtitle. Notwith-
standing the preceding sentence, such account shall be sub-
ject to the taxes imposed by section 511 (relating to imposi-
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tion of tax on unrelated business income of charitable orga-
nizations). 
‘‘(b) UNIVERSAL SAVINGS ACCOUNT.—For purposes of 
this section, the term ‘Universal Savings Account’ means 
a trust created or organized in the United States by an 
individual for the exclusive benefit of such individual and 
which is designated (in such manner as the Secretary may 
prescribe) at the time of the establishment of the trust as 
a Universal Savings Account, but only if the written gov-
erning instrument creating the trust meets the following re-
quirements: 
‘‘(1) Except in the case of a qualified rollover 
contribution described in subsection (d)— 
‘‘(A) no contribution will be accepted unless 
it is in cash, and 
‘‘(B) contributions will not be accepted for 
the taxable year in excess of the contribution 
limit specified in subsection (c)(2). 
‘‘(2) No distribution will be made unless it is— 
‘‘(A) cash, or 
‘‘(B) property that— 
‘‘(i) has a readily ascertainable fair 
market value, and 
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‘‘(ii) is identified by the Secretary in 
regulations or other guidance as property to 
which this subparagraph applies. 
‘‘(3) The trustee is a bank (as defined in section 
408(n)) or another person who demonstrates to the 
satisfaction of the Secretary that the manner in which 
that person will administer the trust will be con-
sistent with the requirements of this section. 
‘‘(4) No part of the trust assets will be invested 
in life insurance contracts or collectibles (as defined 
in section 408(m)). 
‘‘(5) The interest of an individual in the balance 
of his account is nonforfeitable. 
‘‘(6) The assets of the trust shall not be commin-
gled with other property except in a common trust 
fund or common investment fund. 
‘‘(c) TREATMENT OF DISTRIBUTIONS AND CONTRIBU-
TIONS.— 
‘‘(1) DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any distribution from a Uni-
versal Savings Account shall not be includible in 
gross income. 
‘‘(B) NET INCOME ATTRIBUTABLE TO EX-
CESS CONTRIBUTIONS.—Any distribution of net 
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income described in section 4973(i)(2) shall be 
includible in the gross income of the account 
holder in the taxable year in which the contribu-
tion to which such net income relates was made. 
‘‘(2) CONTRIBUTION LIMIT.— 
‘‘(A) IN GENERAL.—The aggregate amount 
of contributions (other than qualified rollover 
contributions described in subsection (d)) for any 
taxable year to all Universal Savings Accounts 
maintained for the benefit of an individual shall 
not exceed the lesser of— 
‘‘(i) $2,500, or 
‘‘(ii) an amount equal to the com-
pensation (within the meaning of section 
219) includible in such individual’s gross 
income for such taxable year. 
‘‘(B) NO
CONTRIBUTIONS
FOR
DEPEND-
ENTS.—In the case of an individual who is a de-
pendent of another taxpayer for a taxable year 
beginning in the calendar year in which such in-
dividual’s taxable year begins, the dollar amount 
under subparagraph (A) for such individual’s 
taxable year shall be zero. 
‘‘(C) SPECIAL RULE IN CASE OF JOINT RE-
TURN.— 
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‘‘(i) IN GENERAL.—In the case of an 
individual to whom this clause applies, the 
amount determined under subparagraph 
(A)(ii) with respect to such individual for 
the taxable year shall not be less than an 
amount equal to the sum of— 
‘‘(I) the compensation of such in-
dividual includible in gross income for 
the taxable year, plus 
‘‘(II) the compensation of such in-
dividual’s spouse includible in gross 
income for the taxable year reduced 
(but not below zero) by the amount 
contributed for the taxable year to all 
Universal Savings Accounts main-
tained for the benefit of such spouse. 
‘‘(ii) INDIVIDUAL TO WHOM CLAUSE (i) 
APPLIES.—Clause (i) shall apply to any in-
dividual— 
‘‘(I) who files a joint return for 
the taxable year, and 
‘‘(II) whose compensation includ-
ible in gross income for the taxable 
year is less than the compensation of 
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such individual’s spouse includible in 
gross income for the taxable year. 
‘‘(D) COST-OF-LIVING ADJUSTMENT.—In the 
case of any taxable year beginning in a calendar 
year after 2019, the $2,500 amount under sub-
paragraph (A)(i) shall be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting ‘cal-
endar year 2018’ for ‘calendar year 2016’ 
in subparagraph (A)(ii) thereof. 
If any amount after adjustment under the pre-
ceding sentence is not a multiple of $100, such 
amount shall be rounded to the next lower mul-
tiple of $100. 
‘‘(d) QUALIFIED
ROLLOVER
CONTRIBUTION.—For 
purposes of this section, the term ‘qualified rollover con-
tribution’ means a contribution to a Universal Savings Ac-
count from another such account of the same individual, 
but only if such amount is contributed not later than the 
60th day after the distribution from such other account. 
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‘‘(e) TREATMENT OF ACCOUNT UPON DEATH.—Upon 
death of any account holder of a Universal Savings Ac-
count— 
‘‘(1) SPOUSE.—In the case of the account hold-
er’s surviving spouse acquiring such account holder’s 
interest in such account by reason of the death of the 
account holder, such account shall be treated as if the 
spouse were the account holder. 
‘‘(2) OTHER CASES.—In any other case— 
‘‘(A) all amounts in such account shall be 
treated as distributed on the date of such indi-
vidual’s death, and 
‘‘(B) such account shall cease to be treated 
as a Universal Savings Account. 
‘‘(f) OTHER SPECIAL RULES.— 
‘‘(1) COMMUNITY PROPERTY LAWS.—This section 
shall be applied without regard to any community 
property laws. 
‘‘(2) LOSS OF TAXATION EXEMPTION OF ACCOUNT 
WHERE INDIVIDUAL ENGAGES IN PROHIBITED TRANS-
ACTION; EFFECT OF PLEDGING ACCOUNT AS SECU-
RITY.—Rules similar to the rules of paragraphs (2) 
and (4) of section 408(e) shall apply to any Universal 
Savings Account. 
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‘‘(g) REPORTS.—The trustee of a Universal Savings 
Account shall make such reports regarding such account to 
the Secretary and to the account holder with respect to con-
tributions, distributions, and such other matters as the Sec-
retary may require. Such reports shall be— 
‘‘(1) filed at such time and in such manner as 
the Secretary provides, and 
‘‘(2) furnished to account holders— 
‘‘(A) not later than January 31 of the cal-
endar year following the calendar year to which 
such reports relate, and 
‘‘(B) in such manner as the Secretary pro-
vides.’’. 
(b) TAX ON EXCESS CONTRIBUTIONS.— 
(1) IN GENERAL.—Section 4973(a) of such Code 
is amended by striking ‘‘or’’ at the end of paragraph 
(5), by inserting ‘‘or’’ at the end of paragraph (6), 
and by inserting after paragraph (6) the following 
new paragraph: 
‘‘(7) a Universal Savings Account (as defined in 
section 530U),’’. 
(2) EXCESS
CONTRIBUTION.—Section 4973 of 
such Code is amended by adding at the end the fol-
lowing new subsection: 
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‘‘(i) EXCESS CONTRIBUTIONS TO UNIVERSAL SAVINGS 
ACCOUNTS.—For purposes of this section— 
‘‘(1) IN GENERAL.—In the case of Universal Sav-
ings Accounts (within the meaning of section 530U), 
the term ‘excess contributions’ means the sum of— 
‘‘(A) the amount (if any) by which the 
amount contributed for the taxable year to such 
accounts (other than qualified rollover contribu-
tions (as defined in section 530U(d))) exceeds the 
contribution limit under section 530U(c)(2) for 
such taxable year, and 
‘‘(B) the amount determined under this sub-
section for the preceding taxable year, reduced by 
the sum of— 
‘‘(i) the distributions out of the account 
for the taxable year, and 
‘‘(ii) the amount (if any) by which the 
maximum amount allowable as a contribu-
tion under section 530U(c)(2) for the tax-
able year exceeds the amount contributed to 
the accounts for the taxable year. 
‘‘(2) SPECIAL RULE.—A contribution shall not 
be taken into account under paragraph (1) if such 
contribution (together with the amount of net income 
attributable to such contribution) is distributed to the 
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account holder on or before the due date of the ac-
count holder’s return of tax for such taxable year.’’. 
(c) TAX
ON PROHIBITED TRANSACTIONS.—Section 
4975(e)(1) of such Code is amended by striking ‘‘or’’ at the 
end of subparagraph (F), by striking the period at the end 
of subparagraph (G) and inserting ‘‘, or’’, and by adding 
at the end the following new subparagraph: 
‘‘(H) a Universal Savings Account (as de-
fined in section 530U).’’. 
(d) FAILURE TO PROVIDE REPORTS ON UNIVERSAL 
SAVINGS ACCOUNTS.—Section 6693(a)(2) of such Code is 
amended by striking ‘‘and’’ at the end of subparagraph (E), 
by striking the period at the end of subparagraph (F) and 
inserting ‘‘, and’’, and by inserting after subparagraph (F) 
the following new subparagraph: 
‘‘(G) section 530U(g) (relating to Universal 
Savings Accounts).’’. 
(e) CONFORMING AMENDMENT.—The table of parts for 
subchapter F of chapter 1 of such Code is amended by add-
ing at the end the following new item: 
‘‘PART IX. UNIVERSAL SAVINGS ACCOUNTS’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
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SEC. 302. 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 
‘‘(B) expenses, with respect to a designated 
beneficiary, for— 
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‘‘(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: 
‘‘(9) TREATMENT
OF
QUALIFIED
EDUCATION 
LOAN REPAYMENTS.— 
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‘‘(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. 
‘‘(ii) SIBLING DEFINED.—For purposes 
of this paragraph, the term ‘sibling’ means 
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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-
mentary or secondary public, private, or reli-
gious school, and’’. 
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(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after December 31, 
2018. 
SEC. 303. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
BIRTH OF CHILD OR ADOPTION. 
(a) IN GENERAL.—Section 72(t)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(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 
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applicable eligible retirement plan to 
an individual if made during the 1- 
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 
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maintained by the employer (and any 
member of any controlled group which 
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. 
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‘‘(II) LIMITATION ON CONTRIBU-
TIONS
TO
APPLICABLE
ELIGIBLE
RE-
TIREMENT
PLANS
OTHER
THAN 
IRAS.—The aggregate amount of con-
tributions made by an individual 
under subclause (I) to any applicable 
eligible retirement plan which is not 
an individual retirement plan shall 
not exceed the aggregate amount of 
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 
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tkelley on DSKBCP9HB2PROD with BILLS
trustee transfer within 60 days of the 
distribution. 
‘‘(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 
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child or eligible child on the taxpayer’s 
return of tax for the taxable year. 
‘‘(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. 
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Union Calendar No. 747 
115TH CONGRESS 
2D SESSION 
H. R. 6757 
[Report No. 115–959, Part I] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
encourage retirement and family savings, and for 
other purposes. 
SEPTEMBER 24, 2018 
Reported from the Committee on Ways and Means with 
an amendment 
SEPTEMBER 24, 2018 
Committee on Education and the Workforce discharged; 
committed to the Committee of the Whole House on 
the State of the Union and ordered to be printed 
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