2067 
† HR 2617 EAS2 
under clause (ii) in the manner pro-
vided under subclause (I) of this 
clause, except that the base period 
taken into account shall be the cal-
endar 
quarter 
beginning 
July 
1, 
2023.’’. 
(b) CATCH-UP CONTRIBUTIONS.—Paragraph (2) of sec-
tion 414(v) is amended— 
(1) in subparagraph (B)— 
(A) by striking ‘‘the applicable’’ in clause 
(ii), as amended by this Act, and inserting ‘‘ex-
cept as provided in clause (iii), the applicable’’; 
and 
(B) by adding at the end the following new 
clause: 
‘‘(iii) In the case of an applicable em-
ployer plan— 
‘‘(I) which is maintained by an 
eligible employer described in section 
408(p)(2)(E)(i)(I), or 
‘‘(II) to which an election under 
section 408(p)(2)(E)(i)(II) applies for 
the year (including a plan described in 
section 401(k)(11) which is maintained 
by an eligible employer described in
2068 
† HR 2617 EAS2 
section 
408(p)(2)(E)(i)(II) 
and 
to 
which such election applies by reason 
of subparagraphs (B)(i)(I) and (E) of 
section 401(k)(11)), 
the applicable dollar amount is an amount 
equal to 110 percent of the dollar amount in 
effect under clause (ii) for calendar year 
2024.’’, and 
(2) in subparagraph (C), as amended by this 
Act— 
(A) by striking ‘‘ADJUSTMENT.—In the case 
of’’ and inserting the following: ‘‘ADJUSTMENT.— 
‘‘(i) CERTAIN LARGE EMPLOYERS.—In 
the case of’’, and 
(B) by adding at the end the following new 
clause: 
‘‘(ii) OTHER EMPLOYERS.—In the case 
of a year beginning after December 31, 
2024, the Secretary shall adjust annually 
the dollar amount described in subpara-
graph (B)(iii) in the manner provided 
under clause (i) of this subparagraph, ex-
cept that the base period taken into account 
shall be the calendar quarter beginning July 
1, 2023.’’.
2069 
† HR 2617 EAS2 
(c) EMPLOYER
MATCH.—Clause (ii) of section 
408(p)(2)(C) is amended— 
(1) by striking ‘‘The term’’ in subclause (I) and 
inserting ‘‘Except as provided in subclause (IV), the 
term’’, 
(2) by adding at the end the following new sub-
clause: 
‘‘(IV) SPECIAL RULE FOR ELECT-
ING LARGER EMPLOYERS.—In the case 
of an employer which had more than 
25 employees who received at least 
$5,000 of compensation from the em-
ployer for the preceding year, and 
which makes the election under sub-
paragraph (E)(i)(II) for any year, 
subclause (I) shall be applied for such 
year by substituting ‘4 percent’ for ‘3 
percent’.’’, and 
(3) by striking ‘‘3 percent’’ each place it appears 
in subclauses (II) and (III) and inserting ‘‘the appli-
cable percentage’’. 
(d) INCREASE IN NONELECTIVE EMPLOYER CONTRIBU-
TION FOR ELECTING LARGER EMPLOYERS.—Subparagraph 
(B) of section 408(p)(2) is amended by adding at the end 
the following new clause:
2070 
† HR 2617 EAS2 
‘‘(iii) SPECIAL
RULE
FOR
ELECTING 
LARGER
EMPLOYERS.—In the case of an 
employer which had more than 25 employ-
ees who received at least $5,000 of com-
pensation from the employer for the pre-
ceding year, and which makes the election 
under subparagraph (E)(i)(II) for any 
year, clause (i) shall be applied for such 
year by substituting ‘3 percent’ for ‘2 per-
cent’.’’. 
(e) TRANSITION RULE.—Paragraph (2) of section 
408(p), as amended by this Act, is further amended by add-
ing at the end the following new subparagraph: 
‘‘(H) 2-YEAR GRACE PERIOD.—An eligible 
employer which had not more than 25 employees 
who received at least $5,000 of compensation 
from the employer for 1 or more years, and 
which has more than 25 such employees for any 
subsequent year, shall be treated for purposes of 
subparagraph (E)(i) as having 25 such employ-
ees for the 2 years following the last year the em-
ployer had not more than 25 such employees, 
and not as having made the election under sub-
paragraph (E)(i)(II) for such 2 years. Rules 
similar to the second sentence of subparagraph
2071 
† HR 2617 EAS2 
(C)(i)(II) shall apply for purposes of this sub-
paragraph.’’. 
(f) AMENDMENTS APPLY ONLY IF EMPLOYER HAS NOT 
HAD ANOTHER PLAN WITHIN 3 YEARS.—Subparagraph 
(E) of section 408(p)(2), as amended by subsection (a), is 
further amended by adding at the end the following new 
clause: 
‘‘(iv) EMPLOYER
HAS
NOT
HAD
AN-
OTHER PLAN WITHIN 3 YEARS.—An eligible 
employer is described in this clause only if, 
during the 3-taxable-year period imme-
diately preceding the 1st year the employer 
maintains the qualified salary reduction ar-
rangement under this paragraph, neither 
the employer nor any member of any con-
trolled group including the employer (or 
any predecessor of either) established or 
maintained any plan described in clause 
(i), (ii), or (iv) of section 219(g)(5)(A) with 
respect to which contributions were made, 
or benefits were accrued, for substantially 
the same employees as are eligible to par-
ticipate in such qualified salary reduction 
arrangement.’’.
2072 
† HR 2617 EAS2 
(g) CONFORMING AMENDMENTS RELATING TO SIMPLE 
401(k)S.— 
(1) Subclause (I) of section 401(k)(11)(B)(i) is 
amended by inserting ‘‘(after the application of any 
election under section 408(p)(2)(E)(i)(II))’’ before the 
comma. 
(2) Paragraph (11) of section 401(k) is amended 
by adding at the end the following new subparagraph: 
‘‘(E) EMPLOYERS
ELECTING
INCREASED 
CONTRIBUTIONS.—In the case of an employer 
which 
applies 
an 
election 
under 
section 
408(p)(2)(E)(i)(II) for purposes of the contribu-
tion requirements of this paragraph under sub-
paragraph (B)(i)(I), rules similar to the rules of 
subparagraphs (B)(iii), (C)(ii)(IV), and (G) of 
section 408(p)(2) shall apply for purposes of sub-
paragraphs (B)(i)(II) and (B)(ii) of this para-
graph.’’. 
(h) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2023. 
(i) REPORTS BY SECRETARY.— 
(1) IN GENERAL.—The Secretary of the Treasury 
shall, not later than December 31, 2024, and annu-
ally thereafter, report to the Committees on Finance
2073 
† HR 2617 EAS2 
and Health, Education, Labor, and Pensions of the 
Senate and the Committees on Ways and Means and 
Education and Labor of the House of Representatives 
on the data described in paragraph (2), together with 
any recommendations the Secretary deems appro-
priate. 
(2) DATA DESCRIBED.—For purposes of the re-
port required under paragraph (1), the Secretary of 
the Treasury shall collect data and information on— 
(A) the number of plans described in section 
408(p) or 401(k)(11) of the Internal Revenue 
Code of 1986 that are maintained or established 
during a year; 
(B) the number of participants eligible to 
participate in such plans for such year; 
(C) median contribution amounts for the 
participants described in subparagraph (B); 
(D) the types of investments that are most 
common under such plans; and 
(E) the fee levels charged in connection with 
the maintenance of accounts under such plans. 
Such data and information shall be collected sepa-
rately for each type of plan. For purposes of collecting 
such data, the Secretary of the Treasury may use such 
data as is otherwise available to the Secretary for
2074 
† HR 2617 EAS2 
publication and may use such approaches as are ap-
propriate under the circumstances, including the use 
of voluntary surveys and collaboration on studies. 
SEC. 118. TAX TREATMENT OF CERTAIN NONTRADE OR 
BUSINESS SEP CONTRIBUTIONS. 
(a) IN
GENERAL.—Subparagraph (B) of section 
4972(c)(6) is amended— 
(1) by striking ‘‘408(p)) or’’ and inserting 
‘‘408(p)),’’; and 
(2) by inserting ‘‘, or a simplified employee pen-
sion (within the meaning of section 408(k))’’ after 
‘‘401(k)(11))’’. 
(b) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after the date of the enactment of this Act. 
(2) NO
INFERENCE.—Nothing in the amend-
ments made by this section shall be construed to infer 
the proper treatment under section 4972(c)(6) of the 
Internal Revenue Code of 1986 of nondeductible con-
tributions to which the amendments made by this sec-
tion do not apply.
2075 
† HR 2617 EAS2 
SEC. 119. APPLICATION OF SECTION 415 LIMIT FOR CER-
TAIN EMPLOYEES OF RURAL ELECTRIC CO-
OPERATIVES. 
(a) IN GENERAL.—Section 415(b) is amended by add-
ing at the end the following new paragraph: 
‘‘(12) SPECIAL RULE FOR CERTAIN EMPLOYEES 
OF RURAL ELECTRIC COOPERATIVES.— 
‘‘(A) IN GENERAL.—Subparagraph (B) of 
paragraph (1) shall not apply to a participant 
in an eligible rural electric cooperative plan, ex-
cept in the case of a participant who was a high-
ly compensated employee (as defined in section 
414(q)) of an employer maintaining such plan 
for the earlier of— 
‘‘(i) the plan year in which the partic-
ipant terminated employment with such 
employer, or 
‘‘(ii) the plan year in which distribu-
tions commence under the plan with respect 
to the participant, or 
for any of the 5 plan years immediately pre-
ceding such earlier plan year. 
‘‘(B) ELIGIBLE RURAL ELECTRIC COOPERA-
TIVE PLAN.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘eligible 
rural electric cooperative plan’ means a
2076 
† HR 2617 EAS2 
plan maintained by more than 1 employer, 
with respect to which at least 85 percent of 
the employers maintaining the plan are 
rural cooperatives described in clause (i) or 
(ii) of section 401(k)(7)(B) or are a na-
tional association of such a rural coopera-
tive. 
‘‘(ii) ELECTION.—An employer main-
taining an eligible rural cooperative plan 
may elect not to have subparagraph (A) 
apply to its employees. 
‘‘(C) REGULATIONS.—The Secretary shall 
prescribe such regulations and other guidance as 
are necessary to limit the application of sub-
paragraph (A) such that it does not result in in-
creased benefits for highly compensated employ-
ees.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to limitation years ending after the date 
of the enactment of this Act. 
SEC. 120. EXEMPTION FOR CERTAIN AUTOMATIC PORT-
ABILITY TRANSACTIONS. 
(a) IN GENERAL.—Section 4975(d), as amended by the 
preceding provisions of this Act, is further amended by 
striking ‘‘or’’ at the end of paragraph (23), by striking the
2077 
† HR 2617 EAS2 
period at the end of paragraph (24) and inserting ‘‘, or’’, 
and by adding at the end the following new paragraph: 
‘‘(25) the receipt of fees and compensation by the 
automatic portability provider for services provided 
in connection with an automatic portability trans-
action.’’. 
(b) OTHER DEFINITIONS AND SPECIAL RULES.—Sec-
tion 4975(f) is amended by adding at the end the following 
new paragraph: 
‘‘(12) RULES
RELATING
TO
AUTOMATIC
PORT-
ABILITY TRANSACTIONS.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (d)(25)— 
‘‘(i) AUTOMATIC PORTABILITY TRANS-
ACTION.—An automatic portability trans-
action is a transfer of assets made— 
‘‘(I) from an individual retire-
ment plan which is established on be-
half of an individual and to which 
amounts were transferred under section 
401(a)(31)(B)(i), 
‘‘(II) to an employer-sponsored re-
tirement plan described in clause (iii), 
(iv), (v), or (vi) of section 402(c)(8)(B) 
(other than a defined benefit plan) in
2078 
† HR 2617 EAS2 
which such individual is an active 
participant, and 
‘‘(III) after such individual has 
been given advance notice of the trans-
fer and has not affirmatively opted out 
of such transfer. 
‘‘(ii) AUTOMATIC
PORTABILITY
PRO-
VIDER.—An automatic portability provider 
is a person, other than an individual, who 
executes transfers described in clause (i). 
‘‘(B) CONDITIONS
FOR
AUTOMATIC
PORT-
ABILITY
TRANSACTIONS.—Subsection 
(d)(25) 
shall not apply to an automatic portability 
transaction unless the following requirements are 
satisfied: 
‘‘(i) ACKNOWLEDGMENT OF FIDUCIARY 
STATUS.—An automatic portability pro-
vider shall acknowledge in writing, at such 
time and format as specified by the Sec-
retary of Labor, that the provider is a fidu-
ciary with respect to the individual retire-
ment plan described in subparagraph 
(A)(i)(I). 
‘‘(ii) FEES.—The fees and compensa-
tion received, directly or indirectly, by the
2079 
† HR 2617 EAS2 
automatic portability provider for services 
provided in connection with the automatic 
portability transaction (including any in-
crease in such fees or compensation and any 
fees or compensation in connection with, 
but received before, the transaction)— 
‘‘(I) shall not exceed reasonable 
compensation, and 
‘‘(II) shall be fully disclosed to 
and approved in writing in advance of 
the transaction by a plan fiduciary of 
the plan described in subparagraph 
(A)(i)(II) which is independent of the 
automatic portability provider. 
An automatic portability provider shall not 
receive any fees or compensation in connec-
tion with an automatic portability trans-
action involving a plan which is sponsored 
or maintained by the automatic portability 
provider. 
‘‘(iii) DATA
USAGE.—The automatic 
portability provider shall not market or sell 
data relating to the individual retirement 
plan described in subparagraph (A)(i)(I) or
2080 
† HR 2617 EAS2 
to the participants of the plan described in 
subparagraph (A)(i)(II). 
‘‘(iv) 
OPEN
PARTICIPATION.—The 
automatic portability provider shall offer 
automatic portability transactions on the 
same terms to any plan described in sub-
paragraph (A)(i)(II). 
‘‘(v) PRE-TRANSACTION
NOTICE.—At 
least 60 days in advance of an automatic 
portability transaction, the automatic port-
ability provider shall provide notice to the 
individual on whose behalf the individual 
retirement plan described in subparagraph 
(A)(i)(I) is established which includes— 
‘‘(I) a description of the auto-
matic portability transaction and a 
complete and accurate statement of all 
fees which will be charged and all com-
pensation which will be received in 
connection with the transaction, 
‘‘(II) a clear and prominent de-
scription of the individual’s right to 
affirmatively elect not to participate in 
the transaction as well as the other 
available 
distribution 
options, 
the
2081 
† HR 2617 EAS2 
deadline by which the individual must 
make an election, the procedures for 
such an election, and a telephone num-
ber for the automatic portability pro-
vider that the individual may call to 
make such election, 
‘‘(III) a description of the indi-
vidual’s right to designate a bene-
ficiary and the procedures to do so, 
and 
‘‘(IV) such other disclosures as the 
Secretary of Labor may require by reg-
ulation. 
‘‘(vi) POST-TRANSACTION
NOTICE.— 
Not later than 3 business days after an 
automatic portability transaction, the auto-
matic portability provider shall provide no-
tice to the individual on whose behalf the 
individual retirement plan described in sub-
paragraph (A)(i)(I) is established of— 
‘‘(I) the actions taken by the auto-
matic portability provider with respect 
to the individual’s account,
2082 
† HR 2617 EAS2 
‘‘(II) all relevant information re-
garding the location and amount of 
any transferred assets, 
‘‘(III) a statement of fees charged 
against the account by the automatic 
portability provider or its affiliates in 
connection with the transfer, 
‘‘(IV) a telephone number at 
which the individual can contact the 
automatic portability provider, and 
‘‘(V) such other disclosures as the 
Secretary of Labor may require by reg-
ulation. 
‘‘(vii) NOTICE
REQUIREMENTS.—The 
notices required under clauses (v) and (vi) 
shall be written in a manner calculated to 
be understood by the average person and 
shall not include inaccurate or misleading 
statements. 
‘‘(viii) FREQUENCY
OF
SEARCHES.— 
The automatic portability provider shall 
query on at least a monthly basis whether 
any individual with an individual retire-
ment plan described in subparagraph
2083 
† HR 2617 EAS2 
(A)(i)(I) has an account in a plan described 
in subparagraph (A)(i)(II). 
‘‘(ix) TIMELINESS
OF
EXECUTION.— 
After liquidating the assets of an individual 
retirement plan described in subparagraph 
(A)(i)(I) to cash, an automatic portability 
provider shall transfer the account balance 
of such plan as soon as practicable to the 
plan described in subparagraph (A)(i)(II). 
‘‘(x) LIMITATION ON EXERCISE OF DIS-
CRETION.—The automatic portability pro-
vider shall neither have nor exercise discre-
tion to affect the timing or amount of the 
transfer pursuant to an automatic port-
ability transaction other than to deduct the 
appropriate fees as described in clause (ii). 
‘‘(xi) RECORD
RETENTION
AND
AU-
DITS.— 
‘‘(I) IN GENERAL.—An automatic 
portability provider shall, for not less 
than 6 years after the automatic port-
ability transaction has occurred, main-
tain the records sufficient to dem-
onstrate the terms of this subparagraph 
have been met. The automatic port-
2084 
† HR 2617 EAS2 
ability 
provider 
shall 
make 
such 
records available to any authorized em-
ployee of the Department of the Treas-
ury or the Department of Labor within 
30 calendar days of the date of a writ-
ten request for such records. 
‘‘(II) 
AUDITS.—An 
automatic 
portability provider shall conduct an 
annual audit, in accordance with regu-
lations promulgated by the Secretary 
of Labor, of automatic portability 
transactions occurring during the cal-
endar year to demonstrate compliance 
with this paragraph and any regula-
tions thereunder and identify any in-
stances of noncompliance therewith, 
and shall submit such audit annually 
to the Secretary of Labor, in such form 
and manner as specified by such Sec-
retary. 
‘‘(xii) WEBSITE.—The automatic port-
ability provider shall maintain a website 
which contains— 
‘‘(I) a list of recordkeepers for 
each plan described in subparagraph
2085 
† HR 2617 EAS2 
(A)(i)(II) with respect to which the 
provider carries out automatic port-
ability transactions, and 
‘‘(II) a list of all fees described in 
clause (ii)(II) paid to the provider.’’. 
(c) REGULATORY AUTHORITY.—Not later than 12 
months after the date of the enactment of this Act, the Sec-
retary of Labor shall issue such guidance as may be nec-
essary to carry out the purposes of the amendments made 
by this section, including regulations or other guidance 
which— 
(1) require an automatic portability provider to 
provide a notice to individuals on whose behalf the 
individual retirement plan described in paragraph 
(12)(A)(i)(I) of section 4975(f) of the Internal Rev-
enue Code of 1986, as added by this section, is estab-
lished in advance of the notices specified in para-
graph (12)(B)(v) of such section, as so added, 
(2) require an automatic portability provider to 
disclose 
to 
plans 
described 
in 
paragraph 
(12)(A)(i)(II) of section 4975(f) of the Internal Rev-
enue Code of 1986, as added by this section, informa-
tion required to be provided by a covered service pro-
vider pursuant to section 2550.408b–2(c) of title 29, 
Code of Federal Regulations,
2086 
† HR 2617 EAS2 
(3) require a plan described in such paragraph 
(12)(A)(i)(II), as so added, to fully disclose fees re-
lated to an automatic portability transaction in its 
summary plan description or summary of material 
modifications, as relevant, 
(4) require a plan described in such paragraph, 
as so added, to invest amounts received on behalf of 
a participant pursuant to an automatic portability 
transaction in the participant’s current investment 
election under the plan or, if no election is made or 
permitted, in the plan’s qualified default investment 
alternative (within the meaning of section 2550.404c– 
5 of title 29, Code of Federal Regulations) or another 
investment selected by a fiduciary with respect to 
such plan, 
(5) prohibit or restrict the receipt or payment of 
third party compensation (other than a direct fee 
paid by a plan sponsor which is in lieu of a fee im-
posed on an individual retirement plan owner) by an 
automatic portability provider in connection with an 
automatic portability transaction, 
(6) prohibit exculpatory provisions in an auto-
matic portability provider’s contracts or communica-
tions with individuals disclaiming or limiting its li-
2087 
† HR 2617 EAS2 
ability in the event that an automatic portability 
transaction results in an improper transfer, 
(7) require an automatic portability provider to 
take actions necessary to reasonably ensure that par-
ticipant and beneficiary data is current and accurate, 
(8) limit the use of data related to automatic 
portability transactions for any purpose other than 
the execution of such transactions or locating missing 
participants, except as permitted by the Secretary of 
Labor, 
(9) provide for corrections procedures in the 
event an auditor determines the automatic portability 
provider was not in compliance with this provision 
and related regulations as specified in paragraph 
(12)(B)(ix)(II) of section 4975(f) of such Code, as so 
added, including deadlines, supplemental audits, and 
corrective actions which may include a temporary 
prohibition from relying on the exemption provided 
by paragraph (25) of section 4975(d) of such Code, as 
added by this section, 
(10) ensure that the appropriate participants 
and beneficiaries, in fact, receive all the required no-
tices and disclosures, and 
(11) make clear that the exemption provided by 
paragraph (25) of section 4975(d) of such Code, as
2088 
† HR 2617 EAS2 
added by this section, applies solely to the automatic 
portability transactions described therein, and, to the 
extent the Secretary deems necessary or advisable, 
specify how the application of the exemption relates 
to or coordinates with the application of other statu-
tory provisions, regulations, administrative guidance, 
or exemptions. 
Any term used in this subsection which is used in para-
graph (12) of section 4975(f) of such Code, as added by this 
section, has the same meaning as when used in such para-
graph. 
(d) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of the first audit report received by the Sec-
retary of Labor from any automatic portability pro-
vider, and every 3 years thereafter, the Secretary of 
Labor shall report to the Committees on Health, Edu-
cation, Labor and Pensions and Finance of the Sen-
ate and the Committees on Education and Labor and 
Ways and Means of the House of Representatives 
on— 
(A) the effectiveness of automatic portability 
transactions under the exemption provided by 
paragraph (25) of section 4975(d) of the Internal
2089 
† HR 2617 EAS2 
Revenue Code of 1986, as added by this section, 
detailing— 
(i) the number of automatic cash outs 
from qualified plans to individual retire-
ment 
plans 
described 
in 
section 
4975(f)(12)(A)(i)(I) of such Code, 
(ii) the number of completed automatic 
portability transactions to employer-spon-
sored retirement plans described in section 
4975(f)(12)(A)(i)(II) of such Code, 
(iii) the number of individual retire-
ment 
plans 
described 
in 
section 
4975(f)(12)(A)(i)(I) of such Code which 
have been transferred to designated bene-
ficiaries, 
(iv) the number of individual retire-
ment 
plans 
described 
in 
section 
4975(f)(12)(A)(i)(I) of such Code for which 
the 
automatic 
portability 
provider 
is 
searching for next of kin due to a deceased 
account holder without a designated bene-
ficiary, and 
(v) the number of accounts that were 
reduced to a zero balance while in the auto-
matic portability provider’s custody;
2090 
† HR 2617 EAS2 
(B) a summary of any consumer com-
plaints submitted to the Employee Benefits Secu-
rity Administration regarding automatic port-
ability transactions; 
(C) a summary of compliance issues found 
in the annual audit described in section 
4975(f)(12)(B)(xiii)(II) of such Code, if any, and 
their corrections; 
(D) a summary of the fees individuals are 
charged in connection with automatic portability 
transactions, including whether those fees have 
increased since the last report; 
(E) recommendations of any necessary stat-
utory changes to this exemption to improve the 
effectiveness of automatic portability trans-
actions, including repeal of this provision in the 
event of a pattern of noncompliance; and 
(F) any other information the Secretary of 
Labor deems important. 
The report required by this subsection shall be made 
publicly available. 
(2) REPORT ON NOTICES RELATING TO AUTO-
MATIC TRANSFERS.—Not later than 2 years after the 
date of the enactment of this Act, the Secretary of 
Treasury shall report to the Committee on Finance of
2091 
† HR 2617 EAS2 
the Senate and the Committee on Ways and Means on 
the adequacy of the notices relating to transfers under 
section 401(a)(31)(B)(i) of the Internal Revenue Code 
of 1986. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to transactions occurring on or after the 
date which is 12 months after the date of the enactment 
of this Act. 
SEC. 121. STARTER 401(k) PLANS FOR EMPLOYERS WITH NO 
RETIREMENT PLAN. 
(a) IN GENERAL.—Section 401(k) is amended by add-
ing at the end the following new paragraph: 
‘‘(16) STARTER 401(k) DEFERRAL-ONLY PLANS 
FOR EMPLOYERS WITH NO RETIREMENT PLAN.— 
‘‘(A) IN GENERAL.—A starter 401(k) defer-
ral-only arrangement maintained by an eligible 
employer shall be treated as meeting the require-
ments of paragraph (3)(A)(ii). 
‘‘(B) STARTER 401(k) DEFERRAL-ONLY AR-
RANGEMENT.—For purposes of this paragraph, 
the term ‘starter 401(k) deferral-only arrange-
ment’ means any cash or deferred arrangement 
which meets— 
‘‘(i) the automatic deferral require-
ments of subparagraph (C),
2092 
† HR 2617 EAS2 
‘‘(ii) the contribution limitations of 
subparagraph (D), and 
‘‘(iii) the requirements of subpara-
graph (E) of paragraph (13). 
‘‘(C) AUTOMATIC DEFERRAL.— 
‘‘(i) IN
GENERAL.—The requirements 
of this subparagraph are met if, under the 
arrangement, each eligible employee is 
treated as having elected to have the em-
ployer make elective contributions in an 
amount equal to a qualified percentage of 
compensation. 
‘‘(ii) ELECTION
OUT.—The election 
treated as having been made under clause 
(i) shall cease to apply with respect to any 
employee if such employee makes an affirm-
ative election— 
‘‘(I) to not have such contribu-
tions made, or 
‘‘(II) to make elective contribu-
tions at a level specified in such af-
firmative election. 
‘‘(iii) QUALIFIED
PERCENTAGE.—For 
purposes of this subparagraph, the term 
‘qualified percentage’ means, with respect to
2093 
† HR 2617 EAS2 
any employee, any percentage determined 
under the arrangement if such percentage is 
applied uniformly and is not less than 3 or 
more than 15 percent. 
‘‘(D) CONTRIBUTION LIMITATIONS.— 
‘‘(i) IN
GENERAL.—The requirements 
of this subparagraph are met if, under the 
arrangement— 
‘‘(I) the only contributions which 
may be made are elective contributions 
of employees described in subpara-
graph (C), and 
‘‘(II) the aggregate amount of 
such elective contributions which may 
be made with respect to any employee 
for any calendar year shall not exceed 
$6,000. 
‘‘(ii) COST-OF-LIVING
ADJUSTMENT.— 
In the case of any calendar year beginning 
after December 31, 2024, the $6,000 amount 
under clause (i) shall be adjusted in the 
same manner as under section 402(g)(4), 
except that ‘2023’ shall be substituted for 
‘2005’.
2094 
† HR 2617 EAS2 
‘‘(iii) CATCH-UP CONTRIBUTIONS FOR 
INDIVIDUALS AGE 50 OR OVER.—In the case 
of an individual who has attained the age 
of 50 before the close of the taxable year, the 
limitation under clause (i)(II) shall be in-
creased by the applicable amount deter-
mined under section 219(b)(5)(B)(ii) (after 
the application of section 219(b)(5)(C)(iii)). 
‘‘(E) ELIGIBLE EMPLOYER.—For purposes 
of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘eligible 
employer’ means any employer if the em-
ployer does not maintain a qualified plan 
with respect to which contributions are 
made, or benefits are accrued, for service in 
the year for which the determination is 
being made. If only individuals other than 
employees described in subparagraph (A) of 
section 410(b)(3) are eligible to participate 
in such arrangement, then the preceding 
sentence shall be applied without regard to 
any qualified plan in which only employees 
described in such subparagraph are eligible 
to participate.
2095 
† HR 2617 EAS2 
‘‘(ii) 
RELIEF
FOR
ACQUISITIONS, 
ETC.—Rules similar to the rules of section 
408(p)(10) shall apply for purposes of 
clause (i). 
‘‘(iii) QUALIFIED
PLAN.—The term 
‘qualified plan’ means a plan, contract, 
pension, account, or trust described in sub-
paragraph (A) or (B) of paragraph (5) of 
section 219(g) (determined without regard 
to the last sentence of such paragraph (5)). 
‘‘(F) ELIGIBLE EMPLOYEE.—For purposes 
of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘eligible 
employee’ means any employee of the em-
ployer who meets the minimum age and 
service conditions described in section 
410(a)(1). 
‘‘(ii) EXCLUSIONS.—The employer may 
elect to exclude from such definition any 
employee described in paragraph (3) or (4) 
of section 410(b).’’. 
(b) CERTAIN ANNUITY CONTRACTS.—Section 403(b), 
as amended by the preceding provision of this Act, is further 
amended by adding at the end the following new paragraph:
2096 
† HR 2617 EAS2 
‘‘(16) SAFE HARBOR DEFERRAL-ONLY PLANS FOR 
EMPLOYERS WITH NO RETIREMENT PLAN.— 
‘‘(A) IN GENERAL.—A safe harbor deferral- 
only plan maintained by an eligible employer 
shall be treated as meeting the requirements of 
paragraph (12). 
‘‘(B) 
SAFE
HARBOR
DEFERRAL-ONLY 
PLAN.—For purposes of this paragraph, the term 
‘safe harbor deferral-only plan’ means any plan 
which meets— 
‘‘(i) the automatic deferral require-
ments of subparagraph (C), 
‘‘(ii) the contribution limitations of 
subparagraph (D), and 
‘‘(iii) the requirements of subpara-
graph (E) of section 401(k)(13). 
‘‘(C) AUTOMATIC DEFERRAL.— 
‘‘(i) IN
GENERAL.—The requirements 
of this subparagraph are met if, under the 
plan, each eligible employee is treated as 
having elected to have the employer make 
elective contributions in an amount equal to 
a qualified percentage of compensation. 
‘‘(ii) ELECTION
OUT.—The election 
treated as having been made under clause
2097 
† HR 2617 EAS2 
(i) shall cease to apply with respect to any 
eligible employee if such eligible employee 
makes an affirmative election— 
‘‘(I) to not have such contribu-
tions made, or 
‘‘(II) to make elective contribu-
tions at a level specified in such af-
firmative election. 
‘‘(iii) QUALIFIED
PERCENTAGE.—For 
purposes of this subparagraph, the term 
‘qualified percentage’ means, with respect to 
any employee, any percentage determined 
under the plan if such percentage is applied 
uniformly and is not less than 3 or more 
than 15 percent. 
‘‘(D) CONTRIBUTION LIMITATIONS.— 
‘‘(i) IN
GENERAL.—The requirements 
of this subparagraph are met if, under the 
plan— 
‘‘(I) the only contributions which 
may be made are elective contributions 
of eligible employees, and 
‘‘(II) the aggregate amount of 
such elective contributions which may 
be made with respect to any employee
2098 
† HR 2617 EAS2 
for any calendar year shall not exceed 
$6,000. 
‘‘(ii) COST-OF-LIVING
ADJUSTMENT.— 
In the case of any calendar year beginning 
after December 31, 2024, the $6,000 amount 
under clause (i) shall be adjusted in the 
same manner as under section 402(g)(4), 
except that ‘2023’ shall be substituted for 
‘2005’. 
‘‘(iii) CATCH-UP CONTRIBUTIONS FOR 
INDIVIDUALS AGE 50 OR OVER.—In the case 
of an individual who has attained the age 
of 50 before the close of the taxable year, the 
limitation under clause (i)(II) shall be in-
creased by the applicable amount deter-
mined under section 219(b)(5)(B)(ii) (after 
the application of section 219(b)(5)(C)(iii)). 
‘‘(E) ELIGIBLE EMPLOYER.—For purposes 
of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘eligible 
employer’ means any employer if the em-
ployer does not maintain a qualified plan 
with respect to which contributions are 
made, or benefits are accrued, for service in 
the year for which the determination is
2099 
† HR 2617 EAS2 
being made. If only individuals other than 
employees described in subparagraph (A) of 
section 410(b)(3) are eligible to participate 
in such arrangement, then the preceding 
sentence shall be applied without regard to 
any qualified plan in which only employees 
described in such subparagraph are eligible 
to participate. 
‘‘(ii) 
RELIEF
FOR
ACQUISITIONS, 
ETC.—Rules similar to the rules of section 
408(p)(10) shall apply for purposes of 
clause (i). 
‘‘(iii) QUALIFIED
PLAN.—The term 
‘qualified plan’ means a plan, contract, 
pension, account, or trust described in sub-
paragraph (A) or (B) of paragraph (5) of 
section 219(g) (determined without regard 
to the last sentence of such paragraph (5)). 
‘‘(F) ELIGIBLE EMPLOYEE.—For purposes 
of this paragraph, the term ‘eligible employee’ 
means any employee of the employer other than 
an employee who is permitted to be excluded 
under paragraph (12)(A).’’.
2100 
† HR 2617 EAS2 
(c) STARTER AND SAFE HARBOR PLANS NOT TREAT-
ED AS TOP-HEAVY PLANS.—Subparagraph (H) of section 
416(g)(4) is amended— 
(1) by striking ‘‘ARRANGEMENTS’’ in the heading 
and inserting ‘‘ARRANGEMENTS OR PLANS’’, 
(2) by striking ‘‘, and’’ at the end of clause (i) 
and inserting ‘‘and matching contributions with re-
spect to which the requirements of paragraph (11), 
(12), or (13) of section 401(m) are met, or’’, and 
(3) by striking clause (ii) and inserting after 
clause (i) the following new clause: 
‘‘(ii) a starter 401(k) deferral-only ar-
rangement 
described 
in 
section 
401(k)(16)(B) or a safe harbor deferral-only 
plan described in section 403(b)(16).’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2023. 
SEC. 122. ASSIST STATES IN LOCATING OWNERS OF APPLI-
CABLE SAVINGS BONDS. 
(a) IN GENERAL.—Section 3105 of title 31, United 
States Code, is amended by adding at the end the following: 
‘‘(f)(1)(A) The Secretary shall provide each State, in 
digital or other electronic form, with information describing
2101 
† HR 2617 EAS2 
any applicable savings bond which has an applicable ad-
dress that is within such State, including— 
‘‘(i) the name and applicable address of the reg-
istered owner; and 
‘‘(ii) the name and applicable address of any 
registered co-owner or beneficiary. 
‘‘(B) The information provided under subparagraph 
(A) may include the serial number of any applicable sav-
ings bond. 
‘‘(C)(i) For purposes of this paragraph, the term ‘ap-
plicable address’ means, with respect to any applicable sav-
ings bond— 
‘‘(I) the registered address for the registered 
owner, co-owner, or beneficiary (as applicable) of such 
bond; or 
‘‘(II) if such information is available to the Sec-
retary, the last known address for the registered 
owner, co-owner, or beneficiary (as applicable) of such 
bond. 
‘‘(ii) For purposes of clause (i), if the information de-
scribed in subclause (II) of clause (i) with respect to any 
individual is available to the Secretary, subclause (I) of 
such clause shall not apply. 
‘‘(2)(A) Not later than 12 months after the date of en-
actment of this subsection, the Secretary shall prescribe such
2102 
† HR 2617 EAS2 
regulations or other guidance as may be necessary to carry 
out the purposes of this subsection, including rules to— 
‘‘(i) protect the privacy of the owners of applica-
ble savings bonds; 
‘‘(ii) prevent fraud; and 
‘‘(iii) ensure that any information provided to a 
State under this subsection shall be used solely to 
carry out the purposes of this subsection. 
‘‘(B) Except as deemed necessary to protect privacy 
or prevent fraud or misuse of savings bond information, 
any regulations or guidance prescribed by the Secretary 
pursuant to subparagraph (A) shall not have the effect of 
prohibiting, restricting, or otherwise preventing a State 
from obtaining all information described in paragraph 
(1)(A). 
‘‘(3) Not later than 12 months after the date of enact-
ment of this subsection, and annually thereafter for each 
year during the 5-year period beginning after the date of 
enactment of this subsection, the Secretary shall submit to 
the Committees on Appropriations of the House of Rep-
resentatives and the Senate, the Committee on Ways and 
Means of the House of Representatives, and the Committee 
on Finance of the Senate a report assessing all efforts to 
satisfy the requirement under paragraph (1)(A).
2109 
† HR 2617 EAS2 
ning before January 1, 2023, shall not be taken into 
account.’’. 
(2) INTERNAL REVENUE CODE OF 1986.— 
(A) IN
GENERAL.—Section 403(b)(12) is 
amended by adding at the end the following new 
subparagraph: 
‘‘(D) RULES RELATING TO CERTAIN PART- 
TIME EMPLOYEES.— 
‘‘(i) IN GENERAL.—In the case of em-
ployees who are eligible to participate in the 
agreement solely by reason of section 
202(c)(1)(B) of the Employee Retirement 
Income Security Act of 1974— 
‘‘(I) 
notwithstanding 
section 
401(a)(4), an employer shall not be re-
quired to make nonelective or matching 
contributions on behalf of such employ-
ees even if such contributions are made 
on behalf of other employees eligible to 
participate in the plan, and 
‘‘(II) the employer may elect to 
exclude such employees from the appli-
cation of subsections (a)(4), (k)(3), 
(k)(12), (k)(13), and (m)(2) of section 
401 and section 410(b).’’.