I 
111TH CONGRESS 
1ST SESSION H. R. 2021 
To help rebuild retirement, college, and personal savings. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 22, 2009 
Mr. BOEHNER (for himself, Mr. CAMP, Mr. MCKEON, Mr. KLINE of Min-
nesota, Mr. TIBERI, Mr. ROYCE, Mr. SAM JOHNSON of Texas, Mrs. 
BACHMANN, Mr. PAULSEN, Mr. HELLER, Ms. JENKINS, Mr. LATTA, Mr. 
GUTHRIE, Mr. DREIER, Mr. SESSIONS, Mr. BLUNT, Mr. LEE of New 
York, Mr. HERGER, Mr. BURTON of Indiana, Mr. MCCARTHY of Cali-
fornia, Mr. CARTER, and Mr. PENCE) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committee on Education and Labor, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To help rebuild retirement, college, and personal savings. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Savings Recovery Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
TITLE I—INCREASE IN EXEMPT AMOUNT UNDER SOCIAL 
SECURITY EARNINGS TEST 
Sec. 101. Increase in monthly exempt amount under the Social Security earn-
ings test for individuals who have not attained retirement age. 
TITLE II—CAPITAL GAINS AND LOSSES 
Sec. 201. Exclusion of certain dividends and long-term capital gains of noncor-
porate taxpayers. 
Sec. 202. Increase in limitation on capital losses of noncorporate taxpayers. 
TITLE III—SAVINGS FOR HIGHER EDUCATION 
Sec. 301. Credit for contributions to 529 plans. 
Sec. 302. Investment direction under qualified tuition programs. 
TITLE IV—RETIREMENT PLANS 
Subtitle A—Individual Retirement Plans and Defined Contribution Plans 
Sec. 401. Elimination of marriage penalties in income limitations with respect 
to individual retirement plan contributions. 
Sec. 402. Increase in dollar limitations on contributions to retirement plans. 
Sec. 403. Increase in permitted catch-up contributions to retirement plans. 
Sec. 404. Extension of waiver of required minimum distribution rules. 
Sec. 405. Provisions relating to plan or contract amendments. 
Subtitle A—Defined Benefit Plans 
Sec. 411. Expansion of corridor within which single-employer defined benefit 
plans are allowed to average asset values. 
Sec. 412. Extended period for single-employer defined benefit plans to amortize 
the shortfall amortization base for 2009 and 2010. 
TITLE I—INCREASE IN EXEMPT 
AMOUNT UNDER SOCIAL SE-
CURITY EARNINGS TEST 
SEC. 101. INCREASE IN MONTHLY EXEMPT AMOUNT UNDER 
THE SOCIAL SECURITY EARNINGS TEST FOR 
INDIVIDUALS WHO HAVE NOT ATTAINED RE-
TIREMENT AGE. 
(a) IN GENERAL.—Section 203(f)(8) of the Social 
Security Act (42 U.S.C. 403(f)(8)) is amended— 
(1) by redesignating subparagraph (E) as sub-
paragraph (F); and 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(2) by inserting after subparagraph (D) the fol-
lowing new subparagraph: 
‘‘(E) Notwithstanding any other provision of 
this subsection, the exempt amount which is applica-
ble to an individual who has not attained retirement 
age before the close of the taxable year ending after 
2008 and before 2010 shall be, for each month of 
such taxable year, $2,360.’’. 
(b) CONFORMING AMENDMENTS.—Section 203(f) of 
such Act is amended— 
(1) in paragraph (8)(B)— 
(A) by striking ‘‘subparagraph (D))’’ and 
all that follows through ‘‘individuals),’’ in the 
matter in clause (ii) preceding subclause (I), 
and inserting ‘‘subparagraph (D)) or the tax-
able year ending after 2008 and before 2010 
(with respect to other individuals),’’; and 
(B) by striking ‘‘subparagraph (D))’’ and 
all that follows through ‘‘individuals),’’ in clause 
(ii)(II), and inserting ‘‘subparagraph (D)) or 
2007 (with respect to other individuals),’’; and 
(2) in paragraph (9), by striking ‘‘and (8)(E)’’ 
and inserting ‘‘(8)(E), and (8)(F)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply for taxable years ending after 2008 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
in the case of individuals who have not, with respect to 
the taxable year involved, attained retirement age (within 
the meaning of section 203(f)(9) of the Social Security 
Act) before the close of such taxable year. 
TITLE II—CAPITAL GAINS AND 
LOSSES 
SEC. 201. EXCLUSION OF CERTAIN DIVIDENDS AND LONG- 
TERM CAPITAL GAINS OF NONCORPORATE 
TAXPAYERS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139C the following new section: 
‘‘SEC. 139D. CERTAIN DIVIDENDS AND LONG-TERM CAPITAL 
GAINS. 
‘‘(a) IN GENERAL.—In the case of a taxpayer other 
than a corporation, gross income shall not include— 
‘‘(1) any qualified dividend income (as defined 
in section 1(h)(11)(B), determined without regard to 
clause (ii)(IV) thereof and without regard to section 
303 of the Jobs and Growth Tax Relief Reconcili-
ation Act of 2003) received during 2009 or 2010, 
and 
‘‘(2) any gain from the sale or exchange of 
qualified property held for more than 1 year if such 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
asset was acquired by purchase (as defined in sec-
tion 179(d)(2)) during 2009 or 2010. 
‘‘(b) QUALIFIED PROPERTY.—For purposes of this 
section, the term ‘qualified property’ means— 
‘‘(1) any security (as defined in section 
475(c)(2) determined without regard to the last sen-
tence thereof), and 
‘‘(2) any nonresidential real property (as de-
fined in section 168(e)(2)(B)). 
‘‘(c) SPECIAL RULES.— 
‘‘(1) EXCEPTION FOR UNRECAPTURED SECTION 
1250 GAIN.—Subsection (a) shall not apply to any 
gain which would be treated as ordinary income if 
section 1250(b)(1) included all depreciation and the 
applicable percentage under section 1250(a) were 
100 percent. 
‘‘(2) TREATMENT OF LONG-TERM SECTION 1256 
GAIN.—Gain on a section 1256 contract which is 
treated as long-term capital gain under section 1256 
shall be treated for purposes of this section as gain 
on the sale of qualified property held for more than 
1 year. 
‘‘(3) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of section 1202(k) shall apply 
for purposes of this section.’’. 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(b) CONFORMING AMENDMENTS.— 
(1) Section 1(h)(11)(B)(ii) of such Code is 
amended by striking ‘‘and’’ at the end of subclause 
(II), by striking the period at the end of subclause 
(III) and inserting ‘‘, and’’, and by adding at the 
end the following new subclause: 
‘‘(IV) any dividend excluded from 
gross income under section 139D.’’. 
(2) The table of sections for part III of sub-
chapter B of chapter 1 of such Code is amended by 
inserting after the item relating to section 139C the 
following new item: 
‘‘Sec. 139D. Certain dividends and long-term capital gains.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2008. 
SEC. 202. INCREASE IN LIMITATION ON CAPITAL LOSSES OF 
NONCORPORATE TAXPAYERS. 
(a) IN GENERAL.—Subsection (b) of section 1211 of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(b) OTHER TAXPAYERS.— 
‘‘(1) IN GENERAL.—In the case of a taxpayer 
other than a corporation, losses from sales or ex-
changes of capital assets shall be allowed only to the 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
extent of the gains from such sales or exchanges, 
plus (if such losses exceed such gains) the lower of— 
‘‘(A) $10,000 (half of such amount in the 
case of a married individual filing a separate re-
turn), or 
‘‘(B) the excess of such losses over such 
gains. 
‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2009, the $10,000 amount contained in paragraph 
(1)(A) shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2008’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
Any increase determined under the preceding sen-
tence shall be rounded to the nearest multiple of 
$250.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
TITLE III—SAVINGS FOR HIGHER 
EDUCATION 
SEC. 301. CREDIT FOR CONTRIBUTIONS TO 529 PLANS. 
(a) IN GENERAL.—Subsection (d) of section 25B of 
the Internal Revenue Code of 1986 (relating to elective 
deferrals and IRA contributions by certain individuals) is 
amended by redesignating paragraph (2) as paragraph (3) 
and by inserting after paragraph (1) the following new 
paragraph: 
‘‘(2) CONTRIBUTIONS TO QUALIFIED TUITION 
PROGRAMS.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
savings contribution’ includes the amount of 
any purchase or contribution described in para-
graph (1)(A) of section 529(b) to a qualified 
tuition program (as defined in such section) 
if— 
‘‘(i) the taxpayer has the power to au-
thorize distributions and otherwise admin-
ister the account, and 
‘‘(ii) the designated beneficiary of 
such purchase or contribution is the tax-
payer, the taxpayer’s spouse, or an indi-
vidual with respect to whom the taxpayer 
is allowed a deduction under section 151. 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
‘‘(B) LIMITATION
BASED
ON
COMPENSA-
TION.—The amount treated as a qualified sav-
ings contribution by reason of subparagraph 
(A) for any taxable year shall not exceed the 
sum of— 
‘‘(i) the compensation (as defined in 
section 219(f)(1)) includible in the tax-
payer’s gross income for the taxable year, 
and 
‘‘(ii) the amount excluded from the 
taxpayer’s gross income under section 112 
(relating to combat pay) for such year. 
‘‘(C) 
DETERMINATION
OF
ADJUSTED 
GROSS INCOME.—Solely for purposes of deter-
mining the applicable percentage under sub-
section (b) which applies with respect to the 
amount treated as a qualified savings contribu-
tion by reason of subparagraph (A), adjusted 
gross income (determined without regard to this 
subparagraph) shall be increased by the excess 
(if any) of— 
‘‘(i) the social security benefits re-
ceived during the taxable year (within the 
meaning of section 86), over 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
‘‘(ii) the amount included in gross in-
come for such year under section 86.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 25B of such Code is amended by 
striking ‘‘qualified retirement savings’’ each place it 
appears in the text and inserting ‘‘qualified sav-
ings’’. 
(2) The subsection heading for section 25B(d) 
of such Code is amended by striking ‘‘RETIRE-
MENT’’. 
(3) Subparagraph (A) of section 25B(d)(3) of 
such Code, as redesignated by subsection (a), is 
amended— 
(A) by striking ‘‘paragraph (1)’’ the first 
place it appears and inserting ‘‘paragraph (1) 
or (2)’’, and 
(B) by striking ‘‘paragraph (1)’’ the sec-
ond place it appears and inserting ‘‘paragraph 
(1), or (2), as the case may be,’’. 
(4) The heading for section 25B of such Code 
is amended by striking ‘‘AND
IRA
CONTRIBU-
TIONS’’ and inserting ‘‘, IRA
CONTRIBUTIONS, 
AND QUALIFIED TUITION PROGRAM CONTRIBU-
TIONS’’. 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(5) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of such Code is 
amended by striking the item relating to section 25B 
and inserting the following new item: 
‘‘Sec. 25B. Elective deferrals, IRA contributions, and qualified tuition program 
contributions by certain individuals.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made after De-
cember 31, 2008. 
SEC. 302. INVESTMENT DIRECTION UNDER QUALIFIED TUI-
TION PROGRAMS. 
(a) IN GENERAL.—Paragraph (4) of section 529(b) 
of the Internal Revenue Code of 1986 (relating to invest-
ment direction) is amended by striking the period at the 
end and inserting ‘‘more frequently than 2 times per cal-
endar year.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after December 
31, 2008. 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
TITLE IV—RETIREMENT PLANS 
Subtitle A—Individual Retirement 
Plans and Defined Contribution 
Plans 
SEC. 401. ELIMINATION OF MARRIAGE PENALTIES IN IN-
COME LIMITATIONS WITH RESPECT TO INDI-
VIDUAL RETIREMENT PLAN CONTRIBUTIONS. 
(a) ELIMINATION OF MARRIAGE PENALTY IN LIMI-
TATION ON DEDUCTION FOR IRA CONTRIBUTIONS.— 
(1) IN GENERAL.—Subparagraph (B) of section 
219(g)(3) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(B) APPLICABLE DOLLAR AMOUNT.— 
‘‘(i) IN GENERAL.—The term ‘applica-
ble dollar amount’ means $50,000 (twice 
such amount in the case of a joint return). 
‘‘(ii) MARRIED INDIVIDUALS FILING A 
SEPARATE RETURN.—In the case of a mar-
ried individual filing a separate return, the 
applicable dollar amount is zero.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (8) 
of section 219(g) of such Code is amended by strik-
ing ‘‘the dollar amount in the last row of the table 
contained in paragraph (3)(B)(i), the dollar amount 
in the last row of the table contained in paragraph 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(3)(B)(ii), and the dollar amount contained in para-
graph (7)(A)’’ and inserting ‘‘the dollar amounts 
contained in paragraphs (3)(B)(i) and (7)(A)’’. 
(b) ELIMINATION OF MARRIAGE PENALTY IN LIMI-
TATION ON ROTH IRA CONTRIBUTIONS.— 
(1) IN
GENERAL.—Subclause (I) of section 
408A(c)(3)(C)(ii) of such Code is amended by strik-
ing ‘‘$150,000’’ and inserting ‘‘twice the amount in 
effect under subclause (II)’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(E) of section 408A(c)(3) of such Code is amended 
by striking ‘‘the dollar amounts in subclauses (I) 
and (II) of subparagraph (C)(ii) shall each’’ and in-
serting 
‘‘the 
dollar 
amount 
in 
subparagraph 
(C)(ii)(II) shall’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 402. INCREASE IN DOLLAR LIMITATIONS ON CON-
TRIBUTIONS TO RETIREMENT PLANS. 
(a) PERMANENT INCREASE IN DOLLAR LIMITATION 
ON DEDUCTION FOR CONTRIBUTIONS TO INDIVIDUAL RE-
TIREMENT PLANS.— 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(1) IN
GENERAL.—Paragraph (5) of section 
219(b) of the Internal Revenue Code of 1986 is 
amended— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) 
IN
GENERAL.—The 
deductible 
amount for any taxable year is the applicable 
dollar amount in effect under section 402(g)(1) 
for such taxable year.’’, and 
(B) by striking subparagraph (D). 
(2) SIMPLE
RETIREMENT
ACCOUNTS.—Sub-
paragraph (E) of section 408(p)(2) of such Code is 
amended to read as follows: 
‘‘(E) APPLICABLE DOLLAR AMOUNT.—For 
purposes of subparagraph (A)(ii), the applicable 
dollar amount for any taxable year is the appli-
cable dollar amount in effect under section 
402(g)(1) for such taxable year.’’. 
(b) TEMPORARY INCREASE IN CONTRIBUTIONS TO 
DEFINED CONTRIBUTION PLANS.— 
(1) INCREASE IN LIMITATION ON ELECTIVE DE-
FERRALS.—Paragraph (1) of section 402(g) of such 
Code is amended by adding at the end the following 
new subparagraph: 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
‘‘(D) TEMPORARY INCREASE IN APPLICA-
BLE DOLLAR AMOUNT.—In the case of taxable 
years beginning in calendar year 2009, 2010, or 
2011, the applicable dollar amount determined 
under subparagraph (B) shall not be less than 
$33,000.’’. 
(2) INCREASE
IN
COMBINED
EMPLOYEE
AND 
EMPLOYER LIMITATION ON CONTRIBUTIONS TO DE-
FINED
CONTRIBUTION
PLANS.—Paragraph (1) of 
section 415(c) of such Code is amended by adding 
at the end the following new flush sentence: 
‘‘In the case of years beginning in calendar year 
2009, 2010, or 2011, the dollar amount in effect 
under subparagraph (A) shall not be less than 
$65,500.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after December 
31, 2008. 
SEC. 403. INCREASE IN PERMITTED CATCH-UP CONTRIBU-
TIONS TO RETIREMENT PLANS. 
(a) PERMANENT INCREASE IN ANNUAL CATCH-UP 
CONTRIBUTION LIMITATION
FOR INDIVIDUAL RETIRE-
MENT PLANS.— 
VerDate Nov 24 2008 
05:16 Apr 24, 2009
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(1) IN
GENERAL.—Clause (ii) of section 
219(b)(5)(B) of the Internal Revenue Code of 1986 
is amended to read as follows: 
‘‘(ii) APPLICABLE AMOUNT.—For pur-
poses of clause (i), the applicable amount 
for any taxable year is the applicable dollar 
amount 
in 
effect 
under 
section 
414(v)(2)(B) for such taxable year.’’. 
(2) SIMPLE RETIREMENT ACCOUNTS.— 
(A) IN GENERAL.—Subparagraph (B) of 
section 414(v)(2) of such Code is amended to 
read as follows: 
‘‘(B) APPLICABLE DOLLAR AMOUNT.—For 
purposes of this paragraph, the applicable dol-
lar amount is $5,000.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) 
Subparagraph 
(C) 
of 
section 
402(g)(1) of such Code is amended by 
striking ‘‘section 414(v)(2)(B)(i)’’ and in-
serting ‘‘section 414(v)(2)(B)’’. 
(ii) Subparagraph (C) of section 
414(v)(2) of such Code is amended by 
striking ‘‘subparagraph (B)(i) and the 
$2,500 amount in subparagraph (B)(ii)’’ 
and inserting ‘‘subparagraph (B)’’. 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(iii) 
Clause 
(ii) 
of 
section 
457(e)(18)(A) of such Code is amended by 
striking ‘‘section 414(v)(2)(B)(i)’’ and in-
serting ‘‘section 414(v)(2)(B)’’. 
(b) TEMPORARY INCREASE IN PERMITTED CATCH- 
UP
CONTRIBUTIONS.—Subparagraph (B) of section 
414(v)(2) of such Code, as amended by subsection (a), is 
amended by adding at the end the following: ‘‘In the case 
of taxable years beginning in 2009, 2010, or 2011, the 
applicable dollar amount in effect under the preceding sen-
tence shall not be less than $10,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after December 
31, 2008. 
SEC. 404. EXTENSION OF WAIVER OF REQUIRED MINIMUM 
DISTRIBUTION RULES. 
(a) IN GENERAL.—Subparagraph (H) of section 
401(a)(9) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘calendar year 2009’’ in clause 
(i) and inserting ‘‘calendar years 2009, 2010, 2011, 
and 2012’’, 
(2) by striking ‘‘2009’’ in clause (ii)(I) and in-
serting ‘‘2012’’, and 
VerDate Nov 24 2008 
05:16 Apr 24, 2009
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(3) by striking ‘‘calendar year 2009’’ in clause 
(ii)(II) and inserting ‘‘calendar years 2009, 2010, 
2011, and 2012’’. 
(b) ELIGIBLE ROLLOVER DISTRIBUTIONS.—The last 
sentence of section 402(c)(4) of such Code is amended— 
(1) by striking ‘‘2009’’ the first place it appears 
and inserting ‘‘calendar year 2009, 2010, 2011, or 
2012’’, and 
(2) by striking ‘‘2009’’ the second place it ap-
pears and inserting ‘‘such calendar years’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply for calendar years beginning after 
December 31, 2009. 
SEC. 405. PROVISIONS RELATING TO PLAN OR CONTRACT 
AMENDMENTS. 
(a) IN GENERAL.—If this section applies to any pen-
sion plan or contract amendment, such pension plan or 
contract shall not fail to be treated as being operated in 
accordance with the terms of the plan solely because the 
plan operates in accordance with the amendments made 
by sections 402, 403, and 404. 
(b) AMENDMENTS TO WHICH SECTION APPLIES.— 
This section shall apply to any amendment to any pension 
plan or annuity contract which— 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
(1) is made pursuant to the amendments made 
by section 402, 403, or 404, and 
(2) is made on or before the last day of the 
first plan year beginning on or after January 1, 
2012 (January 1, 2013, in the case of a govern-
mental plan). 
Subtitle A—Defined Benefit Plans 
SEC. 411. EXPANSION OF CORRIDOR WITHIN WHICH SIN-
GLE-EMPLOYER DEFINED BENEFIT PLANS 
ARE ALLOWED TO AVERAGE ASSET VALUES. 
(a) AMENDMENT TO ERISA.—Paragraph (3) of sec-
tion 303(g) of the Employee Retirement Income Security 
Act of 1974 is amended by adding at the end the following 
new subparagraph: 
‘‘(C) SPECIAL RULE FOR 2009 AND 2010.— 
In the case of plan years beginning in 2009 or 
2010, subparagraph (B)(iii) shall be applied— 
‘‘(i) by substituting ‘80 percent’ for 
‘90 percent’, and 
‘‘(ii) by substituting ‘120 percent’ for 
‘110 percent’.’’. 
(b) AMENDMENT TO IRC.—Paragraph (3) of section 
430(g) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new subparagraph: 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
‘‘(C) SPECIAL RULE FOR 2009 AND 2010.— 
In the case of plan years beginning in 2009 or 
2010, subparagraph (B)(iii) shall be applied— 
‘‘(i) by substituting ‘80 percent’ for 
‘90 percent’, and 
‘‘(ii) by substituting ‘120 percent’ for 
‘110 percent’.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2008. 
SEC. 412. EXTENDED PERIOD FOR SINGLE-EMPLOYER DE-
FINED BENEFIT PLANS TO AMORTIZE THE 
SHORTFALL AMORTIZATION BASE FOR 2009 
AND 2010. 
(a) AMENDMENTS TO ERISA.— 
(1) IN
GENERAL.—Paragraph (2) of section 
303(c) of the Employee Retirement Income Security 
Act of 1974 is amended by adding at the end the 
following new subparagraph: 
‘‘(D) SPECIAL RULE FOR 2009 AND 2010.— 
In the case of the shortfall amortization base of 
the plan for any plan year beginning in 2009 or 
2010 (hereafter in this subparagraph referred 
to as the ‘base year’)— 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
‘‘(i) DETERMINATION
OF
INSTALL-
MENTS.—The shortfall amortization in-
stallments are— 
‘‘(I) in the case of the last 7 plan 
years in the 9-plan-year period begin-
ning with the base year, the amounts 
necessary to amortize the shortfall 
amortization base of the plan for the 
base year in level annual installments 
over such last 7 plan years, and 
‘‘(II) in the case of the first 2 
plan years in such 9-plan-year period, 
interest on such shortfall amortization 
base (determined as provided in sub-
paragraph (C)). 
‘‘(ii) 
SHORTFALL
INSTALLMENT.— 
The shortfall amortization installment for 
any plan year in the 9-plan-year period 
under clause (i) with respect to such short-
fall amortization base is the annual install-
ment determined under clause (i) for that 
year for that base.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (1) 
of section 303(c) of such Act is amended by striking 
‘‘the shortfall amortization bases for such plan year 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
and each of the 6 preceding plan years’’ and insert-
ing ‘‘any shortfall amortization base which has not 
been fully amortized under this subsection’’. 
(b) AMENDMENTS TO IRC.— 
(1) IN
GENERAL.—Paragraph (2) of section 
430(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
subparagraph: 
‘‘(D) SPECIAL RULE FOR 2009 AND 2010.— 
In the case of the shortfall amortization base of 
the plan for any plan year beginning in 2009 or 
2010 (hereafter in this subparagraph referred 
to as the ‘base year’)— 
‘‘(i) DETERMINATION
OF
INSTALL-
MENTS.—The shortfall amortization in-
stallments are— 
‘‘(I) in the case of the last 7 plan 
years in the 9-plan-year period begin-
ning with the base year, the amounts 
necessary to amortize the shortfall 
amortization base of the plan for the 
base year in level annual installments 
over such last 7 plan years, and 
‘‘(II) in the case of the first 2 
plan years in such 9-plan-year period, 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS
interest on such shortfall amortization 
base (determined as provided in sub-
paragraph (C)). 
‘‘(ii) 
SHORTFALL
INSTALLMENT.— 
The shortfall amortization installment for 
any plan year in the 9-plan-year period 
under clause (i) with respect to such short-
fall amortization base is the annual install-
ment determined under clause (i) for that 
year for that base.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (1) 
of section 430(c) of such Code is amended by strik-
ing ‘‘the shortfall amortization bases for such plan 
year and each of the 6 preceding plan years’’ and in-
serting ‘‘any shortfall amortization base which has 
not been fully amortized under this subsection’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2008. 
Æ 
VerDate Nov 24 2008 
04:50 Apr 23, 2009
Jkt 079200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6301
E:\BILLS\H2021.IH
H2021
SMARTINEZ on PROD1PC64 with BILLS