I 
116TH CONGRESS 
1ST SESSION H. R. 1084 
To amend the Internal Revenue Code of 1986 to encourage retirement and 
family savings, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 7, 2019 
Mr. KELLY of Pennsylvania (for himself, Mr. WENSTRUP, Mr. ARRINGTON, 
Mr. LAHOOD, Mr. SMITH of Missouri, Mr. FERGUSON, Mr. SCHWEIKERT, 
Mr. ESTES, Mr. REED, and Mr. MARCHANT) introduced the following 
bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committees on Education and Labor, and the Budget, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
retirement and family savings, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Family Savings Act of 2019’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
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ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) 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- 
controlled organizations. 
Sec. 109. Increase in 10 percent cap for automatic enrollment safe harbor after 
1st plan year. 
Sec. 110. Increase in credit limitation for small employer pension plan startup 
costs. 
Sec. 111. Small employer automatic enrollment credit. 
Sec. 112. Exemption from required minimum distribution rules for individuals 
with certain account balances. 
Sec. 113. Elective deferrals by members of the Ready Reserve of a reserve com-
ponent 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 serv-
ice participants. 
Sec. 203. Fiduciary safe harbor for selection of lifetime income provider. 
Sec. 204. Disclosure regarding lifetime income. 
Sec. 205. Modification of PBGC premiums for CSEC plans. 
TITLE III—OTHER SAVINGS PROVISIONS 
Sec. 301. Expansion of section 529 plans. 
Sec. 302. Penalty-free withdrawals from retirement plans for individuals in case 
of birth of child or adoption. 
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TITLE IV—BUDGETARY EFFECTS 
Sec. 401. Budgetary effects. 
TITLE I—EXPANDING AND PRE-
SERVING RETIREMENT SAV-
INGS 
SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EM-
PLOYER PLANS. 
(a) QUALIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Section 413 is amended by 
adding at the end the following new subsection: 
‘‘(e) APPLICATION
OF QUALIFICATION REQUIRE-
MENTS 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 
adopted 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 sec-
tion 408 (including by reason of subsection (c) 
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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 provided by the Sec-
retary, be liable for any liabilities with re-
spect to such plan attributable to employ-
ees of such employer (or beneficiaries of 
such employees). 
‘‘(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 
whether the plan meets the requirements under 
this title applicable to a plan described in sec-
tion 401(a) or to a plan that consists of indi-
vidual retirement accounts described in section 
408 (including 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 ad-
ministrative 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 the Employee 
Retirement Income Security Act of 
1974 or this title to a plan described 
in section 401(a) or to a plan that 
consists of individual retirement ac-
counts described in section 408 (in-
cluding by reason of subsection (c) 
thereof), whichever is applicable, and 
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‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
such person determines are necessary 
for the plan to meet the requirements 
described in subclause (I), including 
providing to such person any disclo-
sures or other information which the 
Secretary may require or which such 
person otherwise determines are nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments, 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides such 
other information to the Secretary as the 
Secretary may require, before beginning 
operations 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 
Employee Retirement Income Security Act 
of 1974), and the plan administrator, with 
respect to the plan, and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who 
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are fiduciaries of, the plan are bonded in 
accordance with section 412 of the Em-
ployee Retirement Income Security Act of 
1974. 
‘‘(B) AUDITS, EXAMINATIONS AND INVES-
TIGATIONS.—The Secretary may perform au-
dits, 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 
person meets the requirements of this para-
graph 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 admin-
istrative 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 employ-
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ees of such employer (or beneficiaries of such 
employees). 
‘‘(4) GUIDANCE.—The Secretary shall issue 
such guidance as the Secretary determines appro-
priate to carry out this subsection, including guid-
ance— 
‘‘(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 em-
ployer 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 
described in paragraph (1). 
The Secretary shall take into account under sub-
paragraph (C) whether the failure of an employer or 
pooled plan provider to provide any disclosures or 
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other information, or to take any other action, nec-
essary to administer a plan or to allow a plan to 
meet requirements applicable to the plan under sec-
tion 401(a) or 408, whichever is applicable, has con-
tinued over a period of time that demonstrates a 
lack of commitment to compliance. 
‘‘(5) MODEL PLAN.—The Secretary shall pub-
lish model plan language which meets the require-
ments of this subsection and of paragraphs (43) and 
(44) of section 3 of the Employee Retirement In-
come Security Act of 1974 and which may be adopt-
ed in order for a plan to be treated as a plan de-
scribed in paragraph (1)(B).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
413(c)(2) is amended by striking ‘‘section 401(a)’’ 
and inserting ‘‘sections 401(a) and 408(c)’’. 
(3) TECHNICAL AMENDMENT.—Section 408(c) 
is amended by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) There is a separate accounting for any in-
terest of an employee or member (or spouse of an 
employee or member) in a Roth IRA.’’. 
(b) NO COMMON INTEREST REQUIRED FOR POOLED 
EMPLOYER PLANS.—Section 3(2) of the Employee Retire-
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ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 
is amended by adding at the end the following: 
‘‘(C) A pooled employer plan shall be treat-
ed as— 
‘‘(i) a single employee pension benefit 
plan or single pension plan; and 
‘‘(ii) a plan to which section 210(a) 
applies.’’. 
(c) POOLED EMPLOYER PLAN AND PROVIDER DE-
FINED.— 
(1) IN GENERAL.—Section 3 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1002) is amended by adding at the end the fol-
lowing: 
‘‘(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 
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Code or a plan that consists of individual 
retirement accounts described in section 
408 of such Code (including by reason of 
subsection (c) thereof); and 
‘‘(iii) the terms of which meet the re-
quirements of subparagraph (B). 
Such term shall not include a plan maintained 
by employers which have a common interest 
other than having adopted the plan. 
‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 
The requirements of this subparagraph are met 
with respect to any plan if the terms of the 
plan— 
‘‘(i) designate a pooled plan provider 
and provide that the pooled plan provider 
is a named fiduciary of the plan; 
‘‘(ii) designate one or more trustees 
meeting 
the 
requirements 
of 
section 
408(a)(2) of the Internal Revenue Code of 
1986 (other than an employer in the plan) 
to be responsible for collecting contribu-
tions to, and holding the assets of, the 
plan and require such trustees to imple-
ment written contribution collection proce-
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dures that are reasonable, diligent, and 
systematic; 
‘‘(iii) provide that each employer in 
the plan retains fiduciary responsibility 
for— 
‘‘(I) the selection and monitoring 
in accordance with section 404(a) of 
the person designated as the pooled 
plan provider and any other person 
who, in addition to the pooled plan 
provider, is designated as a named fi-
duciary of the plan; and 
‘‘(II) to the extent not otherwise 
delegated to another fiduciary by the 
pooled plan provider and subject to 
the provisions of section 404(c), the 
investment and management of the 
portion of the plan’s assets attrib-
utable to the employees of the em-
ployer (or beneficiaries of such em-
ployees); 
‘‘(iv) provide that employers in the 
plan, and participants and beneficiaries, 
are not subject to unreasonable restric-
tions, fees, or penalties with regard to 
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ceasing participation, receipt of distribu-
tions, or otherwise transferring assets of 
the plan in accordance with section 208 or 
paragraph (44)(C)(i)(II); 
‘‘(v) require— 
‘‘(I) the pooled plan provider to 
provide to employers in the plan any 
disclosures or other information which 
the Secretary may require, including 
any disclosures or other information 
to facilitate the selection or any moni-
toring of the pooled plan provider by 
employers in the plan; and 
‘‘(II) each employer in the plan 
to take such actions as the Secretary 
or the pooled plan provider determines 
are necessary to administer the plan 
or for the plan to meet any 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 
(including by reason of subsection (c) 
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thereof), whichever is applicable, in-
cluding providing any disclosures or 
other information which the Secretary 
may require or which the pooled plan 
provider otherwise determines are nec-
essary to administer the plan or to 
allow the plan to meet such require-
ments; 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 Sav-
ings Act of 2019 unless the plan adminis-
trator elects that the plan will be treated 
as a pooled employer plan and the plan 
meets the requirements of this title appli-
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cable to a pooled employer plan established 
on or after such date. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the admin-
istrative duties of the pooled plan provider de-
scribed in paragraph (44)(A)(i), each employer 
in a pooled employer plan shall be treated as 
the plan sponsor with respect to the portion of 
the plan attributable to employees of such em-
ployer (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 
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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 
(including by reason of subsection (c) 
thereof), whichever is applicable; and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
pooled plan provider determines are 
necessary for the plan to meet the re-
quirements described in subclause (I), 
including providing the disclosures 
and information described in para-
graph (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 begin-
ning operations 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 
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are fiduciaries of, the pooled employer plan 
are bonded in accordance with section 412. 
‘‘(B) AUDITS, EXAMINATIONS AND INVES-
TIGATIONS.—The Secretary may perform au-
dits, examinations, and investigations of pooled 
plan providers as may be necessary to enforce 
and carry out the purposes of this paragraph 
and paragraph (43). 
‘‘(C) GUIDANCE.—The Secretary shall 
issue such guidance as the Secretary determines 
appropriate to carry out this paragraph and 
paragraph (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 sub-
paragraph (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 suc-
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cessor), to an eligible retirement plan 
as defined in section 402(c)(8)(B) of 
the Internal Revenue Code of 1986 
for each individual whose account is 
transferred, or to any other arrange-
ment that the Secretary determines is 
appropriate in such guidance; and 
‘‘(II) such employer (and not the 
plan with respect to which the failure 
occurred or any other employer in 
such plan) shall, except to the extent 
provided 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 ac-
tion, necessary to administer a plan or to allow 
a plan to meet requirements described in sub-
paragraph (A)(i)(II) has continued over a pe-
riod of time that demonstrates a lack of com-
mitment to compliance. The Secretary may 
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waive the requirements of subclause (ii)(I) in 
appropriate circumstances if the Secretary de-
termines it is in the best interests of the em-
ployees of the employer referred to in such 
clause (and the beneficiaries of such employees) 
to retain the assets in the plan with respect to 
which the employer’s failure occurred. 
‘‘(D) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a 
person meets the requirements of this para-
graph 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-
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come Security Act of 1974 (29 U.S.C. 1002) is 
amended— 
(A) in paragraph (16)(B)— 
(i) by striking ‘‘or’’ at the end of 
clause (ii); and 
(ii) by striking the period at the end 
and inserting ‘‘, or (iv) in the case of a 
pooled employer plan, the pooled plan pro-
vider.’’; and 
(B) by striking the second paragraph (41). 
(d) POOLED EMPLOYER AND MULTIPLE EMPLOYER 
PLAN REPORTING.— 
(1) ADDITIONAL
INFORMATION.—Section 103 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1023) is amended— 
(A) in subsection (a)(1)(B), by striking 
‘‘applicable subsections (d), (e), and (f)’’ and 
inserting ‘‘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— 
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‘‘(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 aggre-
gate account balances attributable to each employer 
in the plan (determined as the sum of the account 
balances of the employees of such employer (and the 
beneficiaries 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 
striking paragraph (2)(A) and inserting the fol-
lowing: 
‘‘(2)(A) With respect to annual reports required 
to be filed with the Secretary under this part, the 
Secretary may by regulation prescribe simplified an-
nual 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 
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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-
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 re-
quirement 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) is 
amended by striking ‘‘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 
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‘‘(ii) meets the contribution require-
ments of subparagraph (C).’’. 
(2) 
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENTS.—Section 401(k)(13)(B) is amended by 
striking ‘‘means’’ and all that follows and inserting 
‘‘means a cash or deferred arrangement— 
‘‘(i) which is described in subpara-
graph (D)(i)(I) and meets the applicable 
requirements 
of 
subparagraphs 
(C) 
through (E), or 
‘‘(ii) which is described in subpara-
graph (D)(i)(II) and meets the applicable 
requirements of subparagraphs (C) and 
(D).’’. 
(b) 
NONELECTIVE
CONTRIBUTIONS.—Section 
401(k)(12) is amended by redesignating subparagraph (F) 
as subparagraph (G), and by inserting after subparagraph 
(E) the following new subparagraph: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a plan may be amend-
ed after the beginning of a plan year to 
provide that the requirements of subpara-
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graph (C) shall apply to the arrangement 
for the plan year, but only if the amend-
ment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, 
or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION WHERE PLAN PRO-
VIDED FOR MATCHING CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of sub-
paragraph (B) or paragraph (13)(D)(i)(I) 
applied 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 em-
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ployee is an amount equal to at least 4 
percent of the employee’s compensation.’’. 
(c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 
Section 401(k)(13) is amended by adding at the end the 
following: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR 
EMPLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a plan may be amend-
ed after the beginning of a plan year to 
provide that the requirements of subpara-
graph (D)(i)(II) shall apply to the arrange-
ment for the plan year, but only if the 
amendment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, 
or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION WHERE PLAN PRO-
VIDED FOR MATCHING CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
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if the plan provided at any time during the 
plan year that the requirements of sub-
paragraph (D)(i)(I) or paragraph (12)(B) 
applied 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 em-
ployer is required to make under the ar-
rangement for the plan year with respect 
to any employee is an amount equal to at 
least 4 percent of the employee’s com-
pensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2019. 
SEC. 103. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 
AND STIPEND PAYMENTS TREATED AS COM-
PENSATION FOR IRA PURPOSES. 
(a) IN GENERAL.—Section 219(f)(1) is amended by 
adding at the end the following: ‘‘The term ‘compensation’ 
shall include any amount included in gross income and 
paid to an individual to aid the individual in the pursuit 
of graduate or postdoctoral study.’’. 
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made through the use of any credit card or any 
other similar arrangement.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to loans made after the date 
of the enactment of this Act. 
SEC. 106. PORTABILITY OF LIFETIME INCOME INVEST-
MENTS. 
(a) IN GENERAL.—Section 401(a) is amended by in-
serting after paragraph (37) the following new paragraph: 
‘‘(38) PORTABILITY OF LIFETIME INCOME IN-
VESTMENTS.— 
‘‘(A) IN GENERAL.—Except as may be oth-
erwise provided by regulations, a trust forming 
part of a defined contribution plan shall not be 
treated as failing to constitute a qualified trust 
under this section solely by reason of allowing— 
‘‘(i) qualified distributions of a life-
time income investment, or 
‘‘(ii) distributions of a lifetime income 
investment in the form of a qualified plan 
distribution annuity contract, 
on or after the date that is 90 days prior to the 
date on which such lifetime income investment 
is no longer authorized to be held as an invest-
ment option under the plan. 
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‘‘(I) a feature which guarantees a 
minimum level of income annually (or 
more frequently) for at least the re-
mainder of the life of the employee or 
the joint lives of the employee and the 
employee’s designated beneficiary, or 
‘‘(II) an annuity payable on be-
half of the employee under which pay-
ments are made in substantially equal 
periodic payments (not less frequently 
than annually) over the life of the em-
ployee or the joint lives of the em-
ployee and the employee’s designated 
beneficiary, and 
‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
contract purchased for a participant and 
distributed to the participant by a plan or 
contract described in subparagraph (B) of 
section 
402(c)(8) 
(without 
regard 
to 
clauses (i) and (ii) thereof).’’. 
(b) CASH OR DEFERRED ARRANGEMENT.— 
(1) IN
GENERAL.—Section 401(k)(2)(B)(i) is 
amended by striking ‘‘or’’ at the end of subclause 
(IV), by striking ‘‘and’’ at the end of subclause (V) 
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and inserting ‘‘or’’, and by adding at the end the fol-
lowing new subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect 
to amounts invested in a lifetime in-
come investment (as defined in sub-
section (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 investment option 
under the arrangement, and’’. 
(2) 
DISTRIBUTION
REQUIREMENT.—Section 
401(k)(2)(B), as amended by paragraph (1), is 
amended by striking ‘‘and’’ at the end of clause (i), 
by striking the semicolon at the end of clause (ii) 
and inserting ‘‘, and’’, and by adding at the end the 
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 
distributed only in the form of a qualified 
distribution (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)),’’. 
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(c) SECTION 403(b) PLANS.— 
(1) ANNUITY CONTRACTS.—Section 403(b)(11) 
is amended by striking ‘‘or’’ at the end of subpara-
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, or’’, and by inserting 
after subparagraph (C) the following new subpara-
graph: 
‘‘(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 
income investment may no longer be held 
as an investment option under the con-
tract, and 
‘‘(ii) in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(2) 
CUSTODIAL
ACCOUNTS.—Section 
403(b)(7)(A) is amended by striking ‘‘if—’’ and all 
that follows and inserting ‘‘if the amounts are to be 
invested in regulated investment company stock to 
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be held in that custodial account, and under the cus-
todial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
such amount is a distribution to which sec-
tion 72(t)(2)(G) applies) before— 
‘‘(I) the employee dies, 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment, 
‘‘(IV) the employee becomes dis-
abled (within the meaning of section 
72(m)(7)), 
‘‘(V) in the case of contributions 
made pursuant to a salary reduction 
agreement (within the meaning of sec-
tion 3121(a)(5)(D)), the employee en-
counters financial hardship, or 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect 
to amounts invested in a lifetime in-
come investment (as defined in section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
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time income investment may no longer 
be held as an investment option under 
the contract, and 
‘‘(ii) in the case of amounts described 
in clause (i)(VI), such amounts will be dis-
tributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
(1) IN
GENERAL.—Section 457(d)(1)(A) is 
amended by striking ‘‘or’’ at the end of clause (ii), 
by inserting ‘‘or’’ at the end of clause (iii), and by 
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 investment option under the plan,’’. 
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(2) 
DISTRIBUTION
REQUIREMENT.—Section 
457(d)(1) is amended by striking ‘‘and’’ at the end 
of subparagraph (B), by striking the period at the 
end of subparagraph (C) and inserting ‘‘, and’’, and 
by inserting after subparagraph (C) the following 
new subparagraph: 
‘‘(D) except as may be otherwise provided 
by regulations, in the case of amounts described 
in subparagraph (A)(iv), such amounts will be 
distributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan distribu-
tion 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 De-
cember 31, 2019. 
SEC. 107. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
Not later than six months after the date of enactment 
of this Act, the Secretary of the Treasury shall issue guid-
ance to provide that, if an employer terminates the plan 
under which amounts are contributed to a custodial ac-
count under subparagraph (A) of section 403(b)(7), the 
plan administrator or custodian may distribute an indi-
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