H. R. 2617—879 
or beneficiary is first notified in writing of the error, except 
in the case of fraud or misrepresentation by the participant. 
‘‘(G) 
A 
participant 
or 
beneficiary 
from 
whom 
recoupment is sought is entitled to contest all or part 
of the recoupment pursuant to the claims procedures of 
the plan that made the overpayment to the extent such 
procedures are consistent with section 503 of this title 
and in the case of an inadvertent benefit overpayment 
from a plan to which paragraph (1) applies that is trans-
ferred to an eligible retirement plan (as defined in section 
402(c)(8)(B) of the Internal Revenue Code of 1986) by or 
on behalf of a participant or beneficiary— 
‘‘(i) such plan shall notify the plan receiving the 
rollover of such dispute, 
‘‘(ii) the plan receiving the rollover shall retain 
such overpayment on behalf of the participant or bene-
ficiary (and shall be entitled to treat such overpayment 
as plan assets) pending the outcome of such procedures, 
and 
‘‘(iii) the portion of such overpayment with respect 
to which recoupment is sought on behalf of the plan 
shall be permitted to be returned to such plan if it 
is determined to be an overpayment (and the plans 
making and receiving such transfer shall be treated 
as permitting such transfer). 
‘‘(H) In determining the amount of recoupment to seek, 
the responsible plan fiduciary may take into account the 
hardship that recoupment likely would impose on the 
participant or beneficiary. 
‘‘(5) EFFECT OF CULPABILITY.—Subparagraphs (A) through 
(F) of paragraph (4) shall not apply to protect a participant 
or beneficiary who is culpable. For purposes of this paragraph, 
a participant or beneficiary is culpable if the individual bears 
responsibility for the overpayment (such as through misrepre-
sentations or omissions that led to the overpayment), or if 
the individual knew that the benefit payment or payments 
were materially in excess of the correct amount. Notwith-
standing the preceding sentence, an individual is not culpable 
merely because the individual believed the benefit payment 
or payments were or might be in excess of the correct amount, 
if the individual raised that question with an authorized plan 
representative and was told the payment or payments were 
not in excess of the correct amount.’’. 
(b) OVERPAYMENTS UNDER INTERNAL REVENUE CODE OF 1986.— 
(1) 
QUALIFICATION
REQUIREMENTS.—Section 
414 
is 
amended by adding at the end the following new subsection: 
‘‘(aa) SPECIAL RULES APPLICABLE TO BENEFIT OVERPAYMENTS.— 
‘‘(1) IN GENERAL.—A plan shall not fail to be treated as 
described in clause (i), (ii), (iii), or (iv) of section 219(g)(5)(A) 
(and shall not fail to be treated as satisfying the requirements 
of section 401(a) or 403) merely because— 
‘‘(A) the plan fails to obtain payment from any partici-
pant, beneficiary, employer, plan sponsor, fiduciary, or 
other party on account of any inadvertent benefit overpay-
ment made by the plan, or 
‘‘(B) the plan sponsor amends the plan to increase 
past, or decrease future, benefit payments to affected
H. R. 2617—880 
participants and beneficiaries in order to adjust for prior 
inadvertent benefit overpayments. 
‘‘(2) REDUCTION
IN
FUTURE
BENEFIT
PAYMENTS
AND 
RECOVERY FROM RESPONSIBLE PARTY.—Paragraph (1) shall not 
fail to apply to a plan merely because, after discovering a 
benefit overpayment, such plan— 
‘‘(A) reduces future benefit payments to the correct 
amount provided for under the terms of the plan, or 
‘‘(B) seeks recovery from the person or persons respon-
sible for such overpayment. 
‘‘(3) EMPLOYER
FUNDING
OBLIGATIONS.—Nothing in this 
subsection shall relieve an employer of any obligation imposed 
on it to make contributions to a plan to meet the minimum 
funding standards under sections 412 and 430 or to prevent 
or restore an impermissible forfeiture in accordance with section 
411. 
‘‘(4) OBSERVANCE
OF
BENEFIT
LIMITATIONS.—Notwith-
standing paragraph (1), a plan to which paragraph (1) applies 
shall observe any limitations imposed on it by section 401(a)(17) 
or 415. The plan may enforce such limitations using any method 
approved by the Secretary for recouping benefits previously 
paid or allocations previously made in excess of such limita-
tions. 
‘‘(5) COORDINATION WITH OTHER QUALIFICATION REQUIRE-
MENTS.—The Secretary may issue regulations or other guidance 
of general applicability specifying how benefit overpayments 
and their recoupment or non-recoupment from a participant 
or beneficiary shall be taken into account for purposes of satis-
fying any requirement applicable to a plan to which paragraph 
(1) applies.’’. 
(2) ROLLOVERS.—Section 402(c) is amended by adding at 
the end the following new paragraph: 
‘‘(12) In the case of an inadvertent benefit overpayment 
from a plan to which section 414(aa)(1) applies that is trans-
ferred to an eligible retirement plan by or on behalf of a 
participant or beneficiary— 
‘‘(A) the portion of such overpayment with respect to 
which recoupment is not sought on behalf of the plan 
shall be treated as having been paid in an eligible rollover 
distribution if the payment would have been an eligible 
rollover distribution but for being an overpayment, and 
‘‘(B) the portion of such overpayment with respect to 
which recoupment is sought on behalf of the plan shall 
be permitted to be returned to such plan and in such 
case shall be treated as an eligible rollover distribution 
transferred to such plan by the participant or beneficiary 
who received such overpayment (and the plans making 
and receiving such transfer shall be treated as permitting 
such transfer).’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply as of the date of the enactment of this Act. 
(d) CERTAIN ACTIONS BEFORE DATE OF ENACTMENT.—Plans, 
fiduciaries, employers, and plan sponsors are entitled to rely on— 
(1) a reasonable good faith interpretation of then existing 
administrative guidance for inadvertent benefit overpayment 
recoupments and recoveries that commenced before the date 
of enactment of this Act, and
H. R. 2617—881 
(2) determinations made before the date of enactment of 
this Act by the responsible plan fiduciary, in the exercise of 
its fiduciary discretion, not to seek recoupment or recovery 
of all or part of an inadvertent benefit overpayment. 
In the case of a benefit overpayment that occurred prior to the 
date of enactment of this Act, any installment payments by the 
participant or beneficiary to the plan or any reduction in periodic 
benefit payments to the participant or beneficiary, which were 
made in recoupment of such overpayment and which commenced 
prior to such date, may continue after such date. Nothing in this 
subsection shall relieve a fiduciary from responsibility for an over-
payment that resulted from a breach of its fiduciary duties. 
SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMULATIONS 
IN QUALIFIED RETIREMENT PLANS. 
(a) IN GENERAL.—Section 4974(a) is amended by striking ‘‘50 
percent’’ and inserting ‘‘25 percent’’. 
(b) REDUCTION IN EXCISE TAX ON FAILURES TO TAKE REQUIRED 
MINIMUM DISTRIBUTIONS.—Section 4974 is amended by adding at 
the end the following new subsection: 
‘‘(e) REDUCTION OF TAX IN CERTAIN CASES.— 
‘‘(1) REDUCTION.—In the case of a taxpayer who— 
‘‘(A) receives a distribution, during the correction 
window, of the amount which resulted in imposition of 
a tax under subsection (a) from the same plan to which 
such tax relates, and 
‘‘(B) submits a return, during the correction window, 
reflecting such tax (as modified by this subsection), 
the first sentence of subsection (a) shall be applied by sub-
stituting ‘10 percent’ for ‘25 percent’. 
‘‘(2) CORRECTION WINDOW.—For purposes of this subsection, 
the term ‘correction window’ means the period of time beginning 
on the date on which the tax under subsection (a) is imposed 
with respect to a shortfall of distributions from a plan described 
in subsection (a), and ending on the earliest of— 
‘‘(A) the date of mailing a notice of deficiency with 
respect to the tax imposed by subsection (a) under section 
6212, 
‘‘(B) the date on which the tax imposed by subsection 
(a) is assessed, or 
‘‘(C) the last day of the second taxable year that begins 
after the end of the taxable year in which the tax under 
subsection (a) is imposed.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
SEC. 303. RETIREMENT SAVINGS LOST AND FOUND. 
(a) IN GENERAL.—Part 5 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 523. RETIREMENT SAVINGS LOST AND FOUND. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—Not later than 2 years after the date 
of the enactment of this section, the Secretary, in consultation 
with the Secretary of the Treasury, shall establish an online
H. R. 2617—882 
searchable database (to be managed by the Secretary in accord-
ance with this section) to be known as the ‘Retirement Savings 
Lost and Found’. The Retirement Savings Lost and Found 
shall— 
‘‘(A) allow an individual to search for information that 
enables the individual to locate the administrator of any 
plan described in paragraph (2) with respect to which the 
individual is or was a participant or beneficiary, and pro-
vide contact information for the administrator of any such 
plan; 
‘‘(B) allow the Secretary to assist such an individual 
in locating any such plan of the individual; and 
‘‘(C) allow the Secretary to make any necessary changes 
to contact information on record for the administrator based 
on any changes to the plan due to merger or consolidation 
of the plan with any other plan, division of the plan into 
two or more plans, bankruptcy, termination, change in 
name of the plan, change in name or address of the 
administrator, or other causes. 
‘‘(2) PLANS DESCRIBED.—A plan described in this paragraph 
is a plan to which the vesting standards of section 203 apply. 
‘‘(b) ADMINISTRATION.—The Retirement Savings Lost and Found 
established under subsection (a) shall provide individuals described 
in subsection (a)(1) only with the ability to search for information 
that enables the individual to locate the administrator and contact 
information for the administrator of any plan with respect to which 
the individual is or was a participant or beneficiary, sufficient 
to allow the individual to locate the individual’s plan in order 
to make a claim for benefits owing to the individual under the 
plan. 
‘‘(c) SAFEGUARDING PARTICIPANT PRIVACY AND SECURITY.—In 
establishing the Retirement Savings Lost and Found under sub-
section (a), the Secretary, in consultation with the Secretary of 
the Treasury, shall take all necessary and proper precautions to— 
‘‘(1) ensure that individuals’ plan and personal information 
maintained by the Retirement Savings Lost and Found is pro-
tected; and 
‘‘(2) allow any individual to contact the Secretary to opt 
out of inclusion in the Retirement Savings Lost and Found. 
‘‘(d) DEFINITION OF ADMINISTRATOR.—For purposes of this sec-
tion, the term ‘administrator’ has the meaning given such term 
in section 3(16)(A). 
‘‘(e) INFORMATION COLLECTION FROM PLANS.—Effective with 
respect to plan years beginning after the second December 31 
occurring after the date of the enactment of this subsection, the 
administrator of a plan to which the vesting standards of section 
203 apply shall submit to the Secretary, at such time and in 
such form and manner as is prescribed in regulations— 
‘‘(1) the information described in paragraphs (1) through 
(4) of section 6057(b) of the Internal Revenue Code of 1986; 
‘‘(2) the information described in subparagraphs (A) and 
(B) of section 6057(a)(2) of such Code; 
‘‘(3) the name and taxpayer identifying number of each 
participant or former participant in the plan— 
‘‘(A) who, during the current plan year or any previous 
plan year, was reported under section 6057(a)(2)(C) of such