I 
116TH CONGRESS 
2D SESSION 
H. R. 8696 
To increase retirement savings, simplify and clarify retirement plan rules, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 27, 2020 
Mr. NEAL (for himself and Mr. BRADY) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committees on Financial Services, and Education and Labor, 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 increase retirement savings, simplify and clarify 
retirement plan rules, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Securing a Strong Retirement Act of 2020’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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TITLE I—EXPANDING COVERAGE AND INCREASING RETIREMENT 
SAVINGS 
Sec. 101. Expanding automatic enrollment in retirement plans. 
Sec. 102. Modification of credit for small employer pension plan startup costs. 
Sec. 103. Simplification and increase in Saver’s Credit. 
Sec. 104. Enhancement of 403(b) plans. 
Sec. 105. Increase in age for required beginning date for mandatory distribu-
tions. 
Sec. 106. Deferral of tax for certain sales of employer stock to employee stock 
ownership plan sponsored by S corporation. 
Sec. 107. Indexing IRA catch-up limit. 
Sec. 108. Higher catch-up limit to apply at age 60. 
Sec. 109. Multiple employer 403(b) plans. 
Sec. 110. Treatment of student loan payments as elective deferrals for purposes 
of matching contributions. 
Sec. 111. Application of credit for small employer pension plan startup costs to 
employers which join an existing plan. 
Sec. 112. Military spouse retirement plan eligibility credit for small employers. 
Sec. 113. Small immediate financial incentives for contributing to a plan. 
Sec. 114. Safe harbor for corrections of employee elective deferral failures. 
Sec. 115. One-year reduction in period of service requirement for long-term, 
part-time workers. 
Sec. 116. Governmental pension plans may include certain firefighters, emer-
gency medical technicians, and paramedics. 
TITLE II—PRESERVATION OF INCOME 
Sec. 201. Remove required minimum distribution barriers for life annuities. 
Sec. 202. Qualifying longevity annuity contracts. 
Sec. 203. Insurance-dedicated exchange-traded funds. 
TITLE III—SIMPLIFICATION AND CLARIFICATION OF 
RETIREMENT PLAN RULES 
Sec. 301. Recovery of retirement plan overpayments. 
Sec. 302. Reduction in excise tax on certain accumulations in qualified retire-
ment plans. 
Sec. 303. Performance benchmarks for asset allocation funds. 
Sec. 304. Review and report to the Congress relating to reporting and disclo-
sure requirements. 
Sec. 305. Eliminating unnecessary plan requirements related to unenrolled par-
ticipants. 
Sec. 306. Retirement savings lost and found. 
Sec. 307. Exemption from required minimum distribution rules for individuals 
with certain account balances. 
Sec. 308. Expansion of Employee Plans Compliance Resolution System. 
Sec. 309. Eliminate the ‘‘first day of the month’’ requirement for governmental 
section 457(b) plans. 
Sec. 310. One-time election for qualified charitable distribution to split-interest 
entity; increase in qualified charitable distribution limitation. 
Sec. 311. Retirement plan distributions for charitable purpose. 
Sec. 312. Distributions to firefighters. 
Sec. 313. Exclusion of certain disability-related first responder retirement pay-
ments. 
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Sec. 314. Individual retirement plan statute of limitations for excise tax on ex-
cess contributions, certain accumulations, and prohibited trans-
actions. 
Sec. 315. Requirement to provide paper statements in certain cases. 
TITLE IV—TECHNICAL AMENDMENTS 
Sec. 401. Amendments relating to Setting Every Community Up for Retirement 
Enhancement Act of 2019. 
TITLE V—ADMINISTRATIVE PROVISIONS 
Sec. 501. Provisions relating to plan amendments. 
TITLE I—EXPANDING COVERAGE 
AND 
INCREASING 
RETIRE-
MENT SAVINGS 
SEC. 101. EXPANDING AUTOMATIC ENROLLMENT IN RE-
TIREMENT PLANS. 
(a) IN GENERAL.—Subpart B of part I of subchapter 
D of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after section 414 the following new 
section: 
‘‘SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC EN-
ROLLMENT. 
‘‘(a) IN GENERAL.—Except as otherwise provided in 
this section— 
‘‘(1) an arrangement shall not be treated as a 
qualified cash or deferred arrangement described in 
section 401(k) or as a qualified salary reduction ar-
rangement described in section 408(p) unless such 
arrangement meets the automatic enrollment re-
quirements of subsection (b), and 
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‘‘(2) an annuity contract otherwise described in 
section 403(b)(1) which is purchased under a salary 
reduction agreement shall not be treated as de-
scribed in such section unless such agreement meets 
the automatic enrollment requirements of subsection 
(b). 
‘‘(b) AUTOMATIC ENROLLMENT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—An arrangement or agree-
ment meets the requirements of this subsection if 
such arrangement or agreement is an eligible auto-
matic contribution arrangement (as defined in sec-
tion 414(w)(3)) which meets the requirements of 
paragraphs (2) through (4). 
‘‘(2) ALLOWANCE
OF
PERMISSIBLE
WITH-
DRAWALS.—An eligible automatic contribution ar-
rangement meets the requirements of this paragraph 
if such arrangement allows employees to make per-
missible 
withdrawals 
(as 
defined 
in 
section 
414(w)(2)). 
‘‘(3) MINIMUM CONTRIBUTION PERCENTAGE.— 
An eligible automatic contribution arrangement 
meets the requirements of this paragraph if— 
‘‘(A) the uniform percentage of compensa-
tion contributed by the participant under such 
arrangement during the first year of participa-
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tion is not less than 3 percent and not more 
than 10 percent (unless the participant specifi-
cally elects not to have such contributions made 
or to have such contributions made at a dif-
ferent percentage), and 
‘‘(B) such uniform percentage is increased 
by 1 percentage point for each year of partici-
pation under such arrangement (but not above 
10 percent) unless the participant specifically 
elects not to have such contributions made or to 
have such contributions made at a different 
percentage. 
‘‘(4) INVESTMENT REQUIREMENTS.—An eligible 
automatic contribution arrangement meets the re-
quirements of this paragraph if amounts contributed 
pursuant to such arrangement, and for which no in-
vestment is elected by the participant, are invested 
consistent 
with 
the 
requirements 
of 
section 
2550.404c–5 of title 29, Code of Federal Regula-
tions (or any successor regulations). 
‘‘(c) EXCEPTIONS.—For purposes of this section— 
‘‘(1) EXCEPTION
FOR
PLANS
OR
ARRANGE-
MENTS ESTABLISHED BEFORE ENACTMENT OF SEC-
TION.—Subsection (a) shall not apply to— 
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‘‘(A) any qualified cash or deferred ar-
rangement or qualified salary reduction ar-
rangement established before the date of the 
enactment of this section, or 
‘‘(B) any annuity contract purchased 
under a plan established before the date of the 
enactment of this section. 
‘‘(2) EXCEPTION
FOR
GOVERNMENTAL
AND 
CHURCH PLANS.—Subsection (a) shall not apply to 
any governmental plan (within the meaning of sec-
tion 414(d)) or any church plan (within the meaning 
of section 414(e)). 
‘‘(3) EXCEPTION FOR NEW BUSINESSES.—Sub-
section (a) shall not apply to— 
‘‘(A) any qualified cash or deferred ar-
rangement or qualified salary reduction ar-
rangement established while all employers main-
taining the plan (and any predecessor employ-
ers) have been in existence for less than 3 
years, or 
‘‘(B) any annuity contract purchased 
under a plan established while all employers 
maintaining such plan have been in existence 
for less than 3 years. 
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‘‘(4) EXCEPTION
FOR
SMALL
BUSINESSES.— 
Subsection (a) shall not apply to— 
‘‘(A) any qualified cash or deferred ar-
rangement or qualified salary reduction ar-
rangement if such arrangement is established 
not later than 1 year after the close of the last 
taxable year with respect to which all employers 
maintaining the plan normally employed 10 or 
fewer employees on a typical business day, or 
‘‘(B) any annuity contract purchased 
under a plan established not later than 1 year 
after the close of the last taxable year with re-
spect to which all employers maintaining such 
plan normally employed 10 or fewer employees 
on a typical business day.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part I of subchapter D of chapter 1 of 
the Internal Revenue Code of 1986 is amended by insert-
ing after the item relating to section 414 the following 
new item: 
‘‘Sec. 414A. Requirements related to automatic enrollment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2021. 
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SEC. 102. MODIFICATION OF CREDIT FOR SMALL EM-
PLOYER PENSION PLAN STARTUP COSTS. 
(a) INCREASE IN CREDIT PERCENTAGE FOR SMALL-
ER EMPLOYERS.—Section 45E(e) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL 
EMPLOYERS.—In the case of an employer which 
would be an eligible employer under subsection (c) if 
section 408(p)(2)(C)(i) was applied by substituting 
‘50 employees’ for ‘100 employees’, subsection (a) 
shall be applied by substituting ‘100 percent’ for ‘50 
percent’.’’. 
(b) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU-
TIONS BY CERTAIN SMALL EMPLOYERS.—Section 45E of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(f) ADDITIONAL CREDIT
FOR EMPLOYER CON-
TRIBUTIONS BY CERTAIN ELIGIBLE EMPLOYERS.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
employer, the credit allowed for the taxable year 
under subsection (a) (determined without regard to 
this subsection) shall be increased by an amount 
equal to the applicable percentage of employer con-
tributions (other than any elective deferrals (as de-
fined in section 402(g)(3))) by the employer to an 
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eligible employer plan (other than a defined benefit 
plan (as defined in section 414(j))). 
‘‘(2) LIMITATIONS.— 
‘‘(A) DOLLAR
LIMITATION.—The amount 
determined under paragraph (1) (before the ap-
plication of subparagraph (B)) with respect to 
any employee of the employer shall not exceed 
$1,000. 
‘‘(B) CREDIT PHASE-IN.—In the case of 
any eligible employer which had for the pre-
ceding taxable year more than 50 employees, 
the amount determined under paragraph (1) 
(without regard to this subparagraph) shall be 
reduced by an amount equal to the product 
of— 
‘‘(i) the amount otherwise so deter-
mined under paragraph (1), multiplied by 
‘‘(ii) a percentage equal to 2 percent-
age points for each employee of the em-
ployer for the preceding taxable year in ex-
cess of 50 employees. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes 
of this section, the applicable percentage for the tax-
able year during which the eligible employer plan is 
established shall be 100 percent, and for taxable 
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years thereafter shall be determined under the fol-
lowing table: 
‘‘In the case of the following 
taxable 
year 
beginning 
after the taxable year 
during which plan is es-
tablished: 
The applicable percentage shall 
be: 
1st ................................................................................................
100% 
2nd ...............................................................................................
75% 
3rd ...............................................................................................
50% 
4th ................................................................................................
25% 
Any taxable year thereafter .........................................................
0% 
‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 
NUMBER OF EMPLOYEES.—For purposes of this sub-
section, whether an employer is an eligible employer 
and the number of employees of an employer shall 
be determined under the rules of subsection (c), ex-
cept that paragraph (2) thereof shall only apply to 
the taxable year during which the eligible employer 
plan to which this section applies is established.’’. 
(c) 
DISALLOWANCE
OF
DEDUCTION.—Section 
45E(e)(2) of such Code is amended to read as follows: 
‘‘(2) DISALLOWANCE OF DEDUCTION.—No de-
duction shall be allowed— 
‘‘(A) for that portion of the qualified start-
up costs paid or incurred for the taxable year 
which is equal to so much of the portion of the 
credit determined under subsection (a) as is 
properly allocable to such costs, and 
‘‘(B) for that portion of the employer con-
tributions by the employer for the taxable year 
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which is equal to so much of the credit increase 
determined under subsection (f) as is properly 
allocable to such contributions.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 103. SIMPLIFICATION AND INCREASE IN SAVER’S 
CREDIT. 
(a) IN GENERAL.—Section 25B(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘the appli-
cable percentage’’ and all that follows through ‘‘$2,000’’ 
and inserting the following: ‘‘50 percent of so much of the 
qualified retirement savings contributions of the eligible 
individual for the taxable year as does not exceed $3,000’’. 
(b) INCOME LIMITATION.—Section 25B(b) of such 
Code is amended to read as follows: 
‘‘(b) INCOME LIMITATION.— 
‘‘(1) IN GENERAL.—The amount allowable as a 
credit under subsection (a) for any taxable year (de-
termined without regard to this subsection) shall be 
reduced (but not below zero) by an amount which 
bears the same ratio to the amount so allowable (as 
so determined) as— 
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‘‘(A) the amount by which the taxpayer’s 
adjusted gross income exceeds the applicable 
threshold, bears to 
‘‘(B) $20,000. 
‘‘(2) APPLICABLE THRESHOLD.—For purposes 
of this subsection, the applicable threshold is— 
‘‘(A) except as provided in subparagraph 
(B) or (C), $40,000, 
‘‘(B) in the case of a joint return, 200 per-
cent of the amount in effect for the taxable year 
under subparagraph (A), or 
‘‘(C) in the case of a head of household, 
150 percent of the amount in effect for the tax-
able year under subparagraph (A). 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2021, the $40,000 dollar amount in paragraph (2) 
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 2020’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
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ing and receiving such transfer shall be treated 
as permitting such transfer). 
In any case in which recoupment is sought on behalf 
of the plan but is disputed by the participant or ben-
eficiary who received such overpayment, such dispute 
shall be subject to the claims and appeals procedures 
of the plan that made such overpayment, such plan 
shall notify the plan receiving the rollover of such 
dispute, and the plan receiving the rollover shall re-
tain such overpayment on behalf of the participant 
or beneficiary (and shall be entitled to treat such 
overpayment as plan assets) pending the outcome of 
such procedures.’’. 
(b) OVERPAYMENTS UNDER ERISA.—Section 206 of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1056) is amended by adding at the end the 
following new subsection: 
‘‘(h) SPECIAL RULES APPLICABLE
TO BENEFIT 
OVERPAYMENTS.— 
‘‘(1) GENERAL RULE.—In the case of an inad-
vertent benefit overpayment by any pension plan, the 
responsible plan fiduciary shall not be considered to 
have failed to comply with the requirements of this 
title merely because such fiduciary determines, in 
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