Title: Retirement Protection Act
Policy area: Taxation

Summary:
Retirement Protection Act
This bill permits a waiver in 2020 of required minimum distribution rules for retirement plans and accounts, including defined contribution plans and individual retirement accounts.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6377 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6377

 To amend the Internal Revenue Code of 1986 to provide for a temporary 
 waiver of required minimum distribution rules for certain retirement 
              plans and accounts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2020

  Ms. Wexton (for herself, Ms. Norton, Mr. Cooper, Mr. Connolly, Mr. 
Raskin, Mr. Meeks, Mr. Beyer, Mr. Lynch, Mr. Courtney, Mr. Kildee, Mr. 
 Kilmer, Mr. Rouda, Mr. DeFazio, Mr. Sean Patrick Maloney of New York, 
and Ms. Houlahan) introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide for a temporary 
 waiver of required minimum distribution rules for certain retirement 
              plans and accounts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Retirement Protection Act''.

SEC. 2. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR 
              CERTAIN RETIREMENT PLANS AND ACCOUNTS.

    (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
1986 (26 U.S.C. 401) (relating to required distributions) is amended by 
adding at the end the following new subparagraph:
                    ``(I) Temporary waiver of minimum required 
                distributions.--
                            ``(i) In general.--The requirements of this 
                        paragraph shall not apply for calendar year 
                        2020 to--
                                    ``(I) a defined contribution plan 
                                which is described in this subsection 
                                or in section 403(a) or 403(b),
                                    ``(II) a defined contribution plan 
                                which is an eligible deferred 
                                compensation plan described in section 
                                457(b) but only if such plan is 
                                maintained by an employer described in 
                                section 457(e)(1)(A), or
                                    ``(III) an individual retirement 
                                plan.
                            ``(ii) Special rules regarding waiver 
                        period.--For purposes of this paragraph--
                                    ``(I) the required beginning date 
                                with respect to any individual shall be 
                                determined without regard to this 
                                subparagraph for purposes of applying 
                                this paragraph for calendar years after 
                                2020, and
                                    ``(II) if clause (ii) of 
                                subparagraph (B) applies, the 5-year 
                                period described in such clause shall 
                                be determined without regard to 
                                calendar year 2020.
                            ``(iii) Amount distributed may be repaid.--
                                    ``(I) In general.--Any individual 
                                who receives a distribution required 
                                under this subsection may, at any time 
                                during the calendar year 2020, make one 
                                or more contributions in an aggregate 
                                amount not to exceed the amount of such 
                                distribution to an eligible retirement 
                                plan of which such individual is a 
                                beneficiary and to which a rollover 
                                contribution of such distribution could 
                                be made under section 402(c), 
                                403(a)(4), 403(b)(8), 408(d)(3), or 
                                457(e)(16), as the case may be.
                                    ``(II) Treatment of repayments of 
                                distributions from eligible retirement 
                                plans other than iras.--For purposes of 
                                this subparagraph, if a contribution is 
                                made pursuant to subclause (I) with 
                                respect to a distribution required 
                                under this subsection from an eligible 
                                retirement plan other than an 
                                individual retirement plan, then the 
                                taxpayer shall, to the extent of the 
                                amount of the contribution, be treated 
                                as having received the waiver in an 
                                eligible rollover distribution (as 
                                defined in section 402(c)(4)) and as 
                                having transferred the amount to the 
                                eligible retirement plan in a direct 
                                trustee to trustee transfer within 60 
                                days of the distribution.
                                    ``(III) Treatment of repayments for 
                                distributions from iras.--For purposes 
                                of this subparagraph, if a contribution 
                                is made pursuant to subclause (I) with 
                                respect to a distribution required 
                                under this subsection from an 
                                individual retirement plan (as defined 
                                by section 7701(a)(37)), then, to the 
                                extent of the amount of the 
                                contribution, the qualified required 
                                distribution shall be treated as a 
                                distribution described in section 
                                408(d)(3) and as having been 
                                transferred to the eligible retirement 
                                plan in a direct trustee to trustee 
                                transfer within 60 days of the 
                                distribution.''.
    (b) Eligible Rollover Distribution.--Section 402(c)(4) of the 
Internal Revenue Code of 1986 (26 U.S.C. 402) (defining eligible 
rollover distribution) is amended by adding at the end the following 
new flush sentence:
            ``If all or any portion of a distribution during 2020 is 
        treated as an eligible rollover distribution but would not be 
        so treated if the minimum distribution requirements under 
        section 401(a)(9) had applied during 2020, such distribution 
        shall not be treated as an eligible rollover distribution for 
        purposes of section 401(a)(31) or 3405(c) or subsection (f) of 
        this section.''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply for calendar years beginning after December 31, 2019.
            (2) Provisions relating to plan or contract amendments.--
                    (A) In general.--If this paragraph applies to any 
                pension 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 
                during the period described in subparagraph (B)(ii) 
                solely because the plan operates in accordance with 
                this section.
                    (B) Amendments to which paragraph applies.--
                            (i) In general.--This paragraph shall apply 
                        to any amendment to any pension plan or annuity 
                        contract which--
                                    (I) is made pursuant to the 
                                amendments made by this section, and
                                    (II) is made on or before the last 
                                day of the first plan year beginning on 
                                or after January 1, 2022.
                        In the case of a governmental plan, subclause 
                        (II) shall be applied by substituting ``2023'' 
                        for ``2022''.
                            (ii) Conditions.--This paragraph shall not 
                        apply to any amendment unless during the period 
                        beginning on the effective date of the 
                        amendment and ending on December 31, 2020, the 
                        plan or contract is operated as if such plan or 
                        contract amendment were in effect.
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