I 
112TH CONGRESS 
2D SESSION 
H. R. 4050 
To simplify and enhance qualified retirement plans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 16, 2012 
Mr. NEAL 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 
A BILL 
To simplify and enhance qualified retirement plans, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Retirement Plan Simplification and Enhancement Act of 
2012’’. 
(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 of 
this Act is as follows: 
Sec. 1. Short title; reference; table of contents. 
TITLE I—EXPANDING COVERAGE AND INCREASING RETIREMENT 
SAVINGS 
Sec. 101. Modification of Automatic Enrollment Safe Harbor. 
Sec. 102. Qualified cash or deferred arrangements must allow long-term em-
ployees working more than 500 but less than 1,000 hours per 
year to participate. 
Sec. 103. Separate application of top heavy rules to defined contribution plans 
covering part-time employees. 
TITLE II—ENCOURAGING SMALL BUSINESSES TO ENTER AND 
REMAIN IN THE EMPLOYER RETIREMENT PLAN SYSTEM 
Sec. 201. Enhancement of credit for small employer pension plan startup costs. 
Sec. 202. Eliminating barriers to use of multiple employer plans. 
TITLE III—PRESERVATION OF INCOME 
Sec. 301. Study of application of spousal consent rules to defined contribution 
plans. 
Sec. 302. Administration of joint and survivor annuity requirements. 
Sec. 303. Availability of distribution options. 
Sec. 304. Rollover of insurance contracts to IRAs. 
Sec. 305. Portability of lifetime income options. 
TITLE IV—SIMPLIFICATION AND CLARIFICATION OF QUALIFIED 
RETIREMENT PLAN RULES 
Sec. 401. Exception from required distributions where aggregate retirement 
savings do not exceed $100,000. 
Sec. 402. Alternative methods for electronic disclosure. 
Sec. 403. Expansion of Employee Plans Compliance Resolution System. 
Sec. 404. Use of forfeitures to fund safe harbor contributions. 
Sec. 405. Substantial cessation of operations. 
Sec. 406. Church plan clarification. 
Sec. 407. Protecting older, longer service participants. 
Sec. 408. Review and report to the Congress relating to reporting and disclo-
sure requirements. 
Sec. 409. Consolidation of defined contribution plan notices. 
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TITLE I—EXPANDING COVERAGE 
AND 
INCREASING 
RETIRE-
MENT SAVINGS 
SEC. 101. MODIFICATION OF AUTOMATIC ENROLLMENT 
SAFE HARBOR. 
(a) IN GENERAL.— 
(1) REMOVAL
OF
PERCENT
CAP.—Clause 
(iii) of section 401(k)(13)(C) is amended by striking 
‘‘, does not exceed 10 percent, and is at least’’ and 
inserting ‘‘and is’’. 
(2) CONFORMING AMENDMENTS.— 
(A) 
Subclause 
(I) 
of 
section 
401(k)(13)(C)(iii) is amended by striking ‘‘3 
percent’’ and inserting ‘‘at least 3 percent, but 
not greater than 10 percent,’’. 
(B) 
Subclause 
(II) 
of 
section 
401(k)(13)(C)(iii) is amended by striking ‘‘4 
percent’’ and inserting ‘‘at least 4 percent’’. 
(C) 
Subclause 
(III) 
of 
section 
401(k)(13)(C)(iii) is amended by striking ‘‘5 
percent’’ and inserting ‘‘at least 5 percent’’. 
(D) 
Subclause 
(IV) 
of 
section 
401(k)(13)(C)(iii) is amended by striking ‘‘6 
percent’’ and inserting ‘‘at least 6 percent’’. 
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(b) REGULATIONS.—Subparagraph (C) of section 
401(k)(13) is amended by adding at the end thereof the 
following new clause: 
‘‘(v) REGULATIONS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary may prescribe regulations that 
increase the percentages referenced in 
subclauses (I)–(IV) of clause (iii), ex-
cept that no percentage may be in-
creased by more than 8 percentage 
points and each such percentage may 
be increased by the same or different 
amounts or not increased. In deter-
mining whether and how to exercise 
this authority, the Secretary may con-
sider all relevant factors, including— 
‘‘(aa) the extent to which 
such increases would directly re-
sult in more retirement savings 
by participants in arrangements 
described in this paragraph, re-
sulting in higher level of retire-
ment income for participants, 
‘‘(bb) the extent to which 
such increases would result in 
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more retirement savings by rea-
son of communicating to employ-
ers and employees the importance 
of saving more than the percent-
ages referenced in such sub-
clauses (without regard to this 
clause), 
‘‘(cc) the extent to which in-
creases that are too large could 
result in fewer employers adopt-
ing arrangements described in 
this paragraph for any reason, 
including the possible increase in 
employer cost due to increased 
matching contributions, 
‘‘(dd) the extent to which in-
creases that are too large could 
result in more employees making 
elections 
described 
in 
clause 
(ii)(I), and 
‘‘(ee) the extent to which 
any such increases would in-
crease 
administrative 
burdens 
and complexity, and how the in-
creases can be structured to min-
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imize such burdens and com-
plexity. 
‘‘(II) 
CLARIFICATIONS.—Any 
such regulation shall clarify that— 
‘‘(aa) the percentages ref-
erenced in subclauses (I) through 
(IV) of clause (iii) are minimums, 
‘‘(bb) with respect to an ar-
rangement, one or more of such 
percentages may be set at higher 
levels, except as provided in 
clause (iii)(I), and 
‘‘(cc) there need not be a 
uniform disparity between such 
higher levels and the levels ref-
erenced in subclauses (I)–(IV) of 
clause (iii).’’. 
(c) EFFECTIVE DATES.— 
(1) SUBSECTION (a).—The amendments made 
by subsection (a) shall apply to plan years beginning 
after the date of the enactment of this Act. 
(2) SUBSECTION
(b).—Any regulations pre-
scribed pursuant to the amendment made by sub-
section (b) shall apply to arrangements first estab-
lished for plan years beginning at least six months 
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after publication of such regulations, or for such 
later plan years determined under such regulations. 
SEC. 102. QUALIFIED CASH OR DEFERRED ARRANGEMENTS 
MUST 
ALLOW 
LONG-TERM 
EMPLOYEES 
WORKING MORE THAN 500 BUT LESS THAN 
1,000 HOURS PER YEAR TO PARTICIPATE. 
(a) PARTICIPATION REQUIREMENT.— 
(1) IN GENERAL.—Subparagraph (D) of section 
401(k)(2) (defining qualified cash or deferred ar-
rangement) is amended to read as follows: 
‘‘(D) which does not require, as a condi-
tion of participation in the arrangement, that 
an employee complete a period of service with 
the employer (or employers) maintaining the 
plan extending beyond the close of the earlier 
of— 
‘‘(i) the period permitted under sec-
tion 410(a)(1) (determined without regard 
to subparagraph (B)(i) thereof), or 
‘‘(ii) subject to the provisions of para-
graph (14), the first period of 3 consecu-
tive 12-month periods during each of which 
the employee has at least 500 hours of 
service.’’. 
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(2) SPECIAL RULES.—Section 401(k) (relating 
to cash or deferred arrangements), as amended by 
section 902 of the Pension Protection Act of 2006, 
is amended by adding at the end the following new 
paragraph: 
‘‘(14) SPECIAL RULES FOR PARTICIPATION RE-
QUIREMENT
FOR
LONG-TERM, PART-TIME
WORK-
ERS.—For purposes of paragraph (2)(D)(ii)— 
‘‘(A) AGE REQUIREMENT MUST BE MET.— 
Paragraph (2)(D)(ii) shall not apply to an em-
ployee unless the employee has met the require-
ment of section 410(a)(1)(A)(i) by the close of 
the last of the 12-month periods described in 
such paragraph. 
‘‘(B) 
NONDISCRIMINATION
AND
TOP- 
HEAVY RULES NOT TO APPLY.— 
‘‘(i) NONDISCRIMINATION RULES.—In 
the case of employees who are eligible to 
participate in the arrangement solely by 
reason of paragraph (2)(D)(ii)— 
‘‘(I) notwithstanding subsection 
(a)(4), an employer shall not be re-
quired to make nonelective or match-
ing contributions on behalf of such 
employees even if such contributions 
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are made on behalf of other employees 
eligible to participate in the arrange-
ment, and 
‘‘(II) an employer may elect to 
exclude such employees from the ap-
plication of subsection (a)(4), para-
graph (3), subsection (m)(2), and sec-
tion 410(b). 
‘‘(ii) TOP-HEAVY
RULES.—An em-
ployer may elect to exclude all employees 
who are eligible to participate in a plan 
maintained by the employer solely by rea-
son of paragraph (2)(D)(ii) from the appli-
cation of the vesting and benefit require-
ments under subsections (b) and (c) of sec-
tion 416. 
‘‘(iii) VESTING.—For purposes of de-
termining whether an employee described 
in clause (i) has a nonforfeitable right to 
employer contributions (other than con-
tributions 
described 
in 
paragraph 
(3)(D)(i)) under the arrangement, each 
12-month period for which the employee 
has at least 500 hours of service shall be 
treated as a year of service. 
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‘‘(iv) 
EMPLOYEES
WHO
BECOME 
FULL-TIME
EMPLOYEES.—This subpara-
graph shall cease to apply to any employee 
as of the first plan year beginning after 
the plan year in which the employee meets 
the 
requirements 
of 
section 
410(a)(1)(A)(ii) without regard to para-
graph (2)(D)(ii). 
‘‘(C) EXCEPTION FOR EMPLOYEES UNDER 
COLLECTIVELY BARGAINED PLANS, ETC.—Para-
graph (2)(D)(ii) shall not apply to employees 
described in section 410(b)(3). 
‘‘(D) SPECIAL RULES.— 
‘‘(i) TIME
OF
PARTICIPATION.—The 
rules of section 410(a)(4) shall apply to an 
employee eligible to participate in an ar-
rangement solely by reason of paragraph 
(2)(D)(ii). 
‘‘(ii) 12-MONTH PERIODS.—12-month 
periods shall be determined in the same 
manner as under the last sentence of sec-
tion 410(a)(3)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2012, except that, for purposes of section 
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401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 (as 
added by such amendments), 12-month periods beginning 
before January 1, 2013, shall not be taken into account. 
SEC. 103. SEPARATE APPLICATION OF TOP HEAVY RULES 
TO DEFINED CONTRIBUTION PLANS COV-
ERING PART-TIME EMPLOYEES. 
(a) IN GENERAL.—Paragraph (2) of section 416(c) 
is amended by adding at the end the following: 
‘‘(C) SEPARATE APPLICATION TO EMPLOY-
EES NOT MEETING AGE AND SERVICE REQUIRE-
MENTS.—If employees not meeting the age or 
service requirements of section 410(a)(1) (with-
out regard to subparagraph (B) thereof) are 
covered under a plan of the employer which 
meets the requirements of paragraphs (A) and 
(B) separately with respect to such employees, 
such employees may be excluded from consider-
ation in determining whether any plan of the 
employer meets the requirements of subpara-
graphs (A) and (B).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to plan years beginning after 
the date of the enactment of this Act. 
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TITLE II—ENCOURAGING SMALL 
BUSINESSES TO ENTER AND 
REMAIN IN THE EMPLOYER 
RETIREMENT PLAN SYSTEM 
SEC. 201. ENHANCEMENT OF CREDIT FOR SMALL EM-
PLOYER PENSION PLAN STARTUP COSTS. 
(a) IN GENERAL.—Section 45E(b)(1) is amended by 
striking ‘‘$500’’ and inserting ‘‘$1,500’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2012. 
SEC. 202. ELIMINATING BARRIERS TO USE OF MULTIPLE 
EMPLOYER PLANS. 
By December 31, 2012, the Secretaries of the Treas-
ury and Labor shall— 
(1) prescribe administrative guidance estab-
lishing conditions under which an employer partici-
pating in a plan described in section 413(c) of the 
Internal Revenue Code of 1986 shall not have any 
liability under title I of the Employee Retirement In-
come Security Act of 1974 with respect to the acts 
or omissions of one or more other participating em-
ployers, which regulations may require that the por-
tion of the plan attributable to such participating 
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1974 and sections 401(a)(11) and 417 of the Internal 
Revenue Code of 1986 (relating to spousal consent re-
quirements) to defined contribution plans to which such 
requirements do not apply. Such study shall include con-
sideration of any modifications of such requirements that 
are necessary to apply such requirements to such plans. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Government Account-
ability Office shall report the results of the study, together 
with any recommendations for legislative changes, to the 
Committees on Finance and Health, Education, Labor, 
and Pensions of the Senate and the Committees on Ways 
and Means and Education and the Workforce of the 
House of Representatives. 
SEC. 302. ADMINISTRATION OF JOINT AND SURVIVOR AN-
NUITY REQUIREMENTS. 
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Section 402(c) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1102(c)) is amended— 
(A) in paragraph (2) by striking ‘‘or’’ at 
the end, 
(B) in paragraph (3) by striking the period 
at the end and inserting ‘‘; or’’, and 
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(C) by adding at the end the following new 
paragraph: 
‘‘(4) that a named fiduciary, or a fiduciary des-
ignated by a named fiduciary pursuant to a plan 
procedure described in section 405(e), may appoint 
an annuity administrator or administrators with re-
sponsibility for administration of an individual ac-
count plan in accordance with the requirements of 
section 205 and payment of any annuity required 
thereunder.’’. 
(2) Section 405 of such Act (29 U.S.C. 1105) 
is amended by adding at the end the following new 
subsection: 
‘‘(e) ANNUITY ADMINISTRATOR.—If an annuity ad-
ministrator or administrators have been appointed under 
section 402(c)(4) and such entity acknowledges in writing 
that they are the annuity administrator, then neither the 
named fiduciary nor any appointing fiduciary shall be lia-
ble for any act or omission of the annuity administrator 
except to the extent that— 
‘‘(1) the fiduciary violated section 404(a)(1)— 
‘‘(A) with respect to such allocation or des-
ignation, or 
‘‘(B) in continuing the allocation or des-
ignation, 
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‘‘(2) the fiduciary would otherwise be liable in 
accordance with subsection (a), or 
‘‘(3) the fiduciary is neither an insurance com-
pany nor approved to be an annuity administrator 
by the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply as of the date of enactment of 
this Act. 
SEC. 303. AVAILABILITY OF DISTRIBUTION OPTIONS. 
(a) LIFETIME INCOME INVESTMENTS.—By the date 
that is one year after the date of enactment of this Act, 
the Secretary of the Treasury shall issue final regulations 
under which it is clarified that any specified age or service 
condition (or combination of age and service conditions) 
with respect to a lifetime income investment (as defined 
in section 401(a)(38)(B)(ii)) under a defined contribution 
plan shall be disregarded in determining whether such life-
time income investment is currently available to an em-
ployee for purposes of Treasury Regulation section 
1.401(a)(4)–4(b) (or any successor provision). 
(b) ENFORCEMENT.—As of the date of enactment of 
this Act, the Secretary of the Treasury shall administer 
and enforce the law in accordance with subsection (a) with 
respect to plan years beginning before, on, or after the 
date of enactment of this Act. 
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(c) EFFECTIVE DATE.—This section shall take effect 
as of the date of enactment of this Act. 
SEC. 304. ROLLOVER OF INSURANCE CONTRACTS TO IRAS. 
(a) IN GENERAL.—Section 408(a)(3) is amended by 
inserting ‘‘other than insurance contracts that were rolled 
over to an IRA from a qualified retirement plan described 
in clause (iii), (iv), or (vi) of section 402(c)(8)(b) provided 
that such contracts provide only incidental death benefits 
taking into account both the IRA and the qualified retire-
ment plan’’ after ‘‘contract’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to years beginning after Decem-
ber 31, 2012. 
SEC. 305. PORTABILITY OF LIFETIME INCOME OPTIONS. 
(a) IN GENERAL.—Subsection (a) of section 401 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end thereof the following new paragraph: 
‘‘(38) PORTABILITY OF LIFETIME INCOME.— 
‘‘(A) IN GENERAL.—A trust forming part 
of a defined contribution plan shall not be 
treated as failing to constitute a qualified trust 
under this section solely by reason of allowing— 
‘‘(i) qualified distributions of a life-
time income investment, or 
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‘‘(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 except as may oth-
erwise be provided by regulations. 
‘‘(B) DEFINITIONS.—For purposes of this 
subsection— 
‘‘(i) the term ‘qualified distribution’ 
means a direct trustee-to-trustee transfer 
to an eligible retirement plan (as defined 
in section 402(c)(8)(B)), as described in 
section 401(a)(31)(A), 
‘‘(ii) the term ‘lifetime income invest-
ment’ means an investment option that is 
designed to provide an employee with elec-
tion rights— 
‘‘(I) that are not uniformly avail-
able with respect to other investment 
options under the plan, and 
‘‘(II) that are to a lifetime in-
come feature available through a con-
tract or other arrangement offered 
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under the plan or under another eligi-
ble retirement plan (as defined in sec-
tion 402(c)(8)(B)) through a direct 
trustee-to-trustee transfer to such 
other eligible retirement plan under 
section 401(a)(31)(A), 
‘‘(iii) the term ‘lifetime income fea-
ture’ means— 
‘‘(I) a feature that guarantees a 
minimum level of income annually (or 
more frequently) for at least the re-
mainder of the life of the employee or 
the joint lives of the employee and the 
employee’s designated beneficiary, or 
‘‘(II) an annuity payable on be-
half of the employee under which pay-
ments are made in substantially equal 
periodic payments (not less frequently 
than annually) over the life of the em-
ployee or the joint lives of the em-
ployee and the employee’s designated 
beneficiary, taking into account the 
rules 
of 
clause 
(iii) 
of 
section 
401(a)(9)(I), and 
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‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
contract purchased for a participant and 
distributed to the participant by a plan de-
scribed in subparagraph (B) of section 
402(c)(8) (without regard to clauses (i) 
and (ii) thereof).’’. 
(b) CASH OR DEFERRED ARRANGEMENT.—Clause (i) 
of section 401(k)(2)(B) of such Code is amended by strik-
ing ‘‘or’’ at the end of subclause (IV), by striking ‘‘and’’ 
at the end of subclause (V) and inserting ‘‘or’’, and by 
adding at the end of clause (i) the following: 
‘‘(VI) with respect to amounts in-
vested in a lifetime income investment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the plan, provided that any distribu-
tion under this subclause must be in 
the form of a qualified distribution (as 
defined in section 401(a)(38)(B)(i)) 
or a qualified plan distribution annu-
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ity contract (as defined in section 
401(a)(38)(B)(iv)).’’. 
(c) SECTION 403(b) PLANS.— 
(1) ANNUITY CONTRACTS.—Paragraph (11) of 
section 403 of such Code is amended by striking 
‘‘or’’ at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C), and by in-
serting ‘‘, or’’, and by adding at the end of para-
graph (11) the following: 
‘‘(D) with respect to amounts invested in a 
lifetime income investment (as defined in sec-
tion 401(a)(38)(B)(ii)), the date that is 90 days 
prior to the date that such lifetime income in-
vestment may no longer be held as an invest-
ment option under the plan, provided that any 
distribution under this subparagraph must be 
in the form of a qualified distribution (as de-
fined in section 401(a)(38)(B)(i)) or a qualified 
plan distribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(2) CUSTODIAL ACCOUNTS.—Clause (ii) of sec-
tion 403(b)(7)(A) of such Code is amended to read 
as follows: 
‘‘(ii) under the custodial account, no 
such amounts may be paid or made avail-
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able to any distributee (unless such 
amount is a distribution to which section 
72(t)(2)(G) applies) before— 
‘‘(I) the employee dies, 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment, 
‘‘(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) with respect to amounts in-
vested in a lifetime income investment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the plan, provided that any distribu-
tion under this subparagraph must be 
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smartinez on DSK6TPTVN1PROD with BILLS
in the form of a qualified distribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan 
distribution annuity contract (as de-
fined in section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
Subparagraph (A) of section 457(d)(1) of such Code is 
amended by striking ‘‘or’’ at the end of clause (ii), by in-
serting ‘‘or’’ at the end of clause (iii), and by adding at 
the end of subparagraph (A) the following: 
‘‘(iv) 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 
plan, provided that any distribution under 
this subparagraph must be in the form of 
a qualified distribution (as defined in sec-
tion 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 De-
cember 31, 2012. 
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TITLE IV—SIMPLIFICATION AND 
CLARIFICATION 
OF 
QUALI-
FIED 
RETIREMENT 
PLAN 
RULES 
SEC. 401. EXCEPTION FROM REQUIRED DISTRIBUTIONS 
WHERE AGGREGATE RETIREMENT SAVINGS 
DO NOT EXCEED $100,000. 
(a) IN GENERAL.—Section 401(a)(9) (relating to re-
quired distributions) is amended by adding at the end the 
following new subparagraph: 
‘‘(J) EXCEPTION
FROM
REQUIRED
MIN-
IMUM
DISTRIBUTIONS
DURING
LIFE
OF
EM-
PLOYEE OR BENEFICIARY WHERE ASSETS DO 
NOT EXCEED $100,000.— 
‘‘(i) IN GENERAL.—If, as of a meas-
urement date, the aggregate balance to the 
credit of an employee under all applicable 
eligible retirement plans does not exceed 
$100,000, then the requirements of sub-
paragraph (A) shall not apply to the em-
ployee during any succeeding calendar 
year. In addition, if, as of a measurement 
date, the aggregate balance to the credit of 
an employee under all applicable eligible 
retirement plans does not exceed $100,000, 
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smartinez on DSK6TPTVN1PROD with BILLS
then the requirements of subparagraph (B) 
shall not apply during any succeeding cal-
endar year to the employee’s designated 
beneficiary with respect to the designated 
beneficiary’s interest in the balance to the 
credit of the deceased employee. 
‘‘(ii) APPLICABLE ELIGIBLE RETIRE-
MENT PLAN.—For purposes of this sub-
paragraph, the term ‘applicable eligible re-
tirement plan’ means an eligible retirement 
plan (as defined in section 402(c)(8)(B)) 
and any other plan, contract, or arrange-
ment to which the requirements of section 
401(a)(9) apply. 
‘‘(iii) SPECIAL RULE FOR BENEFITS 
PAID AS A LIFE ANNUITY FROM DEFINED 
BENEFIT
PLAN.—In determining the ag-
gregate balance under clause (i), there 
shall not be taken into account the value of 
any benefits under a defined benefit plan 
that, on the measurement date, are being 
paid as a life annuity. 
‘‘(iv) MEASUREMENT DATE.— 
‘‘(I) 
INITIAL
MEASUREMENT 
DATES.—The 
initial 
measurement 
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graph, as determined by the entity furnishing 
the documents or materials: 
‘‘(i) Such documents or materials may 
be furnished through the use of paper. 
‘‘(ii) Such documents or materials 
may be furnished electronically to a recipi-
ent who— 
‘‘(I) has the ability to effectively 
access documents furnished in elec-
tronic form at any location where the 
participant is reasonably expected to 
perform his or her duties as an em-
ployee, and 
‘‘(II) with respect to whom ac-
cess to the employer’s or plan spon-
sor’s electronic information is an inte-
gral part of those duties. 
‘‘(iii) Such documents or materials 
may be furnished electronically to a recipi-
ent who has affirmatively consented, in 
electronic or nonelectronic form, to receiv-
ing documents or materials through elec-
tronic media and has not withdrawn such 
consent. 
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