Title: Retirement Enhancement and Savings Act of 2019
Policy area: Taxation

Summary:
Retirement Enhancement and Savings Act of 2019
This bill modifies requirements for tax-favored retirement savings accounts, employer-provided retirement plans, and retirement benefits for federal judges.
With respect to employer-provided plans, the bill modifies requirements regarding
The bill also increases the tax credit for small employer pension plan startup costs and allows a tax credit for small employers that establish retirement plans that include automatic enrollment.
With respect to Individual Retirement Accounts (IRAs), the bill
The bill makes several modifications to retirement benefits for magistrate judges of the U.S. Tax Court and other federal judges.
The bill also modifies various tax provisions  to

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 972 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                 S. 972

  To amend the Internal Revenue Code of 1986 to encourage retirement 
                    savings, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 1, 2019

Mr. Grassley (for himself and Mr. Wyden) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to encourage retirement 
                    savings, 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, ETC.

    (a) Short Title.--This Act may be cited as the ``Retirement 
Enhancement and Savings Act of 2019''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title, etc.
          TITLE I--EXPANDING AND PRESERVING RETIREMENT SAVINGS

Sec. 101. Multiple employer plans; pooled employer plans.
Sec. 102. Pooled employer and multiple employer plan reporting.
Sec. 103. Removal of 10-percent cap from automatic enrollment safe 
                            harbor after first plan year.
Sec. 104. Rules relating to election of safe harbor 401(k) status.
Sec. 105. Increase in credit limitation for small employer pension plan 
                            startup costs.
Sec. 106. Small employer automatic enrollment credit.
Sec. 107. Certain taxable non-tuition fellowship and stipend payments 
                            treated as compensation for IRA purposes.
Sec. 108. Repeal of maximum age for traditional IRA contributions.
Sec. 109. Expansion of IRA ownership of S corporation bank stock.
Sec. 110. Qualified employer plans prohibited from making loans through 
                            credit cards and other similar 
                            arrangements.
Sec. 111. Portability of lifetime income options.
Sec. 112. Treatment of custodial accounts on termination of section 
                            403(b) plans.
Sec. 113. Clarification of retirement income account rules relating to 
                            church-controlled organizations.
                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

Sec. 201. Plan adopted by filing due date for year may be treated as in 
                            effect as of close of year.
Sec. 202. Combined annual report for group of plans.
Sec. 203. Disclosure regarding lifetime income.
Sec. 204. Fiduciary safe harbor for selection of lifetime income 
                            provider.
Sec. 205. Modification of nondiscrimination rules to protect older, 
                            longer service participants.
Sec. 206. Modification of PBGC premiums for CSEC plans.
        TITLE III--BENEFITS RELATING TO UNITED STATES TAX COURT

Sec. 301. Thrift Savings Plan contributions for judges in the Federal 
                            Employees Retirement System.
Sec. 302. Change in vesting period for survivor annuities and waiver of 
                            vesting period in the event of 
                            assassination.
Sec. 303. Coordination of retirement and survivor annuity with the 
                            Federal Employees Retirement System.
Sec. 304. Limit on teaching compensation of retired judges.
Sec. 305. General provisions relating to magistrate judges of the Tax 
                            Court.
Sec. 306. Life insurance for magistrate judges of the tax court age 65 
                            or older.
Sec. 307. Retirement and annuity program.
Sec. 308. Provisions for recall.
                        TITLE IV--OTHER BENEFITS

Sec. 401. Benefits provided to volunteer firefighters and emergency 
                            medical responders.
                      TITLE V--REVENUE PROVISIONS

Sec. 501. Modifications of required distribution rules for defined 
                            contribution accounts and plans.
Sec. 502. Increase in penalty for failure to file.
Sec. 503. Increased penalties for failure to file retirement plan 
                            returns.
Sec. 504. Increase information sharing to administer excise taxes.

          TITLE I--EXPANDING AND PRESERVING RETIREMENT SAVINGS

SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER PLANS.

    (a) Qualification Requirements.--
            (1) In general.--Section 413 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(e) Application of Qualification Requirements for Certain 
Multiple Employer Plans With Pooled Plan Providers.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        a defined contribution plan to which subsection (c) applies--
                    ``(A) is maintained by employers which have a 
                common interest other than having adopted the plan, or
                    ``(B) in the case of a plan not described in 
                subparagraph (A), has a pooled plan provider,
        then the plan shall not be treated as failing to meet the 
        requirements under this title applicable to a plan described in 
        section 401(a) or to a plan that consists of individual 
        retirement accounts described in section 408 (including by 
        reason of subsection (c) thereof), whichever is applicable, 
        merely because one or more employers of employees covered by 
        the plan fail to take such actions as are required of such 
        employers for the plan to meet such requirements.
            ``(2) Limitations.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any plan unless the terms of the plan provide that in 
                the case of any employer in the plan failing to take 
                the actions described in paragraph (1)--
                            ``(i) the assets of the plan attributable 
                        to employees of such employer (or beneficiaries 
                        of such employees) will be transferred to a 
                        plan maintained only by such employer (or its 
                        successor), to an eligible retirement plan as 
                        defined in section 402(c)(8)(B) for each 
                        individual whose account is transferred, or to 
                        any other arrangement that the Secretary 
                        determines is appropriate, unless the Secretary 
                        determines it is in the best interests of the 
                        employees of such employer (and the 
                        beneficiaries of such employees) to retain the 
                        assets in the plan, and
                            ``(ii) such employer (and not the plan with 
                        respect to which the failure occurred or any 
                        other employer in such plan) shall, except to 
                        the extent provided by the Secretary, be liable 
                        for any liabilities with respect to such plan 
                        attributable to employees of such employer (or 
                        beneficiaries of such employees).
                    ``(B) Failures by pooled plan providers.--If the 
                pooled plan provider of a plan described in paragraph 
                (1)(B) does not perform substantially all of the 
                administrative duties which are required of the 
                provider under paragraph (3)(A)(i) for any plan year, 
                the Secretary may provide that the determination as to 
                whether the plan meets the requirements under this 
                title applicable to a plan described in section 401(a) 
                or to a plan that consists of individual retirement 
                accounts described in section 408 (including by reason 
                of subsection (c) thereof), whichever is applicable, 
                shall be made in the same manner as would be made 
                without regard to paragraph (1).
            ``(3) Pooled plan provider.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `pooled plan provider' means, with respect to 
                any plan, a person who--
                            ``(i) is designated by the terms of the 
                        plan as a named fiduciary (within the meaning 
                        of section 402(a)(2) of the Employee Retirement 
                        Income Security Act of 1974), as the plan 
                        administrator, and as the person responsible to 
                        perform all administrative duties (including 
                        conducting proper testing with respect to the 
                        plan and the employees of each employer in the 
                        plan) which are reasonably necessary to ensure 
                        that--
                                    ``(I) the plan meets any 
                                requirement applicable under the 
                                Employee Retirement Income Security Act 
                                of 1974 or this title to a plan 
                                described in section 401(a) or to a 
                                plan that consists of individual 
                                retirement accounts described in 
                                section 408 (including by reason of 
                                subsection (c) thereof), whichever is 
                                applicable, and
                                    ``(II) each employer in the plan 
                                takes such actions as the Secretary or 
                                such person determines are necessary 
                                for the plan to meet the requirements 
                                described in subclause (I), including 
                                providing to such person any 
                                disclosures or other information which 
                                the Secretary may require or which such 
                                person otherwise determines are 
                                necessary to administer the plan or to 
                                allow the plan to meet such 
                                requirements,
                            ``(ii) registers as a pooled plan provider 
                        with the Secretary, and provides such other 
                        information to the Secretary as the Secretary 
                        may require, before beginning operations as a 
                        pooled plan provider,
                            ``(iii) acknowledges in writing that such 
                        person is a named fiduciary (within the meaning 
                        of section 402(a)(2) of the Employee Retirement 
                        Income Security Act of 1974), and the plan 
                        administrator, with respect to the plan, and
                            ``(iv) is responsible for ensuring that all 
                        persons who handle assets of, or who are 
                        fiduciaries of, the plan are bonded in 
                        accordance with section 412 of the Employee 
                        Retirement Income Security Act of 1974.
                    ``(B) Audits, examinations and investigations.--The 
                Secretary may perform audits, examinations, and 
                investigations of pooled plan providers as may be 
                necessary to enforce and carry out the purposes of this 
                subsection.
                    ``(C) Aggregation rules.--For purposes of this 
                paragraph, in determining whether a person meets the 
                requirements of this paragraph to be a pooled plan 
                provider with respect to any plan, all persons who 
                perform services for the plan and who are treated as a 
                single employer under subsection (b), (c), (m), or (o) 
                of section 414 shall be treated as one person.
                    ``(D) Treatment of employers as plan sponsors.--
                Except with respect to the administrative duties of the 
                pooled plan provider described in subparagraph (A)(i), 
                and except to the extent that employers in the plan are 
                treated as a single employer under subsection (c), each 
                employer in a plan which has a pooled plan provider 
                shall be treated as the plan sponsor with respect to 
                the portion of the plan attributable to employees of 
                such employer (or beneficiaries of such employees).
            ``(4) Guidance.--
                    ``(A) In general.--The Secretary shall issue such 
                guidance as the Secretary determines appropriate to 
                carry out the purposes of this subsection, including 
                guidance--
                            ``(i) to identify the administrative duties 
                        and other actions required to be performed by a 
                        pooled plan provider under this subsection,
                            ``(ii) which describes the procedures to be 
                        taken to terminate a plan which fails to meet 
                        the requirements to be a plan described in 
                        paragraph (1), including the actions needed to 
                        be taken by any employer in the plan and the 
                        proper treatment of such employers and the 
                        assets and liabilities of the plan attributable 
                        to employees of such employers (or 
                        beneficiaries of such employees), and
                            ``(iii) identifying appropriate cases to 
                        which the rules of paragraph (2)(A) will apply 
                        to employers in the plan failing to take the 
                        actions described in paragraph (1).
                The Secretary shall take into account under clause 
                (iii) whether the failure of an employer or pooled plan 
                provider to provide any disclosures or other 
                information, or to take any other action, necessary to 
                administer a plan or to allow a plan to meet 
                requirements applicable to the plan under section 
                401(a) or 408, whichever is applicable, has continued 
                over a period of time that demonstrates a lack of 
                commitment to compliance.
                    ``(B) Good faith compliance with law before 
                guidance.--An employer or pooled plan provider shall 
                not be treated as failing to meet any requirement of 
                this subsection if, before the issuance of the guidance 
                under subparagraph (A), the employer or pooled plan 
                provider has complied in good faith with a reasonable 
                interpretation of the provisions of this subsection to 
                which such guidance relates.
            ``(5) Model plan.--The Secretary, in consultation with the 
        Secretary of Labor, shall publish model plan language which 
        meets the requirements of this subsection and of paragraphs 
        (43) and (44) of section 3 of the Employee Retirement Income 
        Security Act of 1974 and which may be adopted in order for a 
        plan to be treated as a plan described in paragraph (1)(B).''.
            (2) Conforming amendment.--Section 413(c)(2) of such Code 
        is amended by striking ``section 401(a)'' and inserting 
        ``sections 401(a) and 408(c)''.
            (3) Technical amendments.--
                    (A) Section 45E(d)(3)(A) of such Code is amended by 
                striking ``effective'' and inserting ``effective with 
                respect to the eligible employer''.
                    (B) Section 408(c) of such Code is amended by 
                inserting after paragraph (2) the following new 
                paragraph:
            ``(3) There is a separate accounting for any interest of an 
        employee or member (or spouse of an employee or member) in a 
        Roth IRA.''.
    (b) No Common Interest Required for Pooled Employer Plans.--Section 
3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(2)) is amended by adding at the end the following:
                    ``(C) A pooled employer plan shall be treated as--
                            ``(i) a single employee pension benefit 
                        plan or single pension plan; and
                            ``(ii) a plan to which section 210(a) 
                        applies.''.
    (c) Pooled Employer Plan and Provider Defined.--
            (1) In general.--Section 3 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002) is amended by 
        adding at the end the following:
            ``(43) Pooled employer plan.--
                    ``(A) In general.--The term `pooled employer plan' 
                means a plan--
                            ``(i) which is an individual account plan 
                        established or maintained for the purpose of 
                        providing benefits to the employees of two or 
                        more employers;
                            ``(ii) which is a plan described in section 
                        401(a) of the Internal Revenue Code of 1986 
                        which includes a trust exempt from tax under 
                        section 501(a) of such Code or a plan that 
                        consists of individual retirement accounts 
                        described in section 408 of such Code 
                        (including by reason of subsection (c) 
                        thereof); and
                            ``(iii) the terms of which meet the 
                        requirements of subparagraph (B).
                Such term shall not include a plan maintained by 
                employers which have a common interest other than 
                having adopted the plan.
                    ``(B) Requirements for plan terms.--The 
                requirements of this subparagraph are met with respect 
                to any plan if the terms of the plan--
                            ``(i) designate a pooled plan provider and 
                        provide that the pooled plan provider is a 
                        named fiduciary of the plan;
                            ``(ii) designate one or more trustees 
                        meeting the requirements of section 408(a)(2) 
                        of the Internal Revenue Code of 1986 (other 
                        than an employer in the plan) to be responsible 
                        for collecting contributions to, and holding 
                        the assets of, the plan and require such 
                        trustees to implement written contribution 
                        collection procedures that are reasonable, 
                        diligent, and systematic;
                            ``(iii) provide that each employer in the 
                        plan retains fiduciary responsibility for--
                                    ``(I) the selection and monitoring 
                                in accordance with section 404(a) of 
                                the person designated as the pooled 
                                plan provider and any other person who, 
                                in addition to the pooled plan 
                                provider, is designated as a named 
                                fiduciary of the plan; and
                                    ``(II) to the extent not otherwise 
                                delegated to another fiduciary by the 
                                pooled plan provider and subject to the 
                                provisions of section 404(c), the 
                                investment and management of the 
                                portion of the plan's assets 
                                attributable to the employees of the 
                                employer (or beneficiaries of such 
                                employees);
                            ``(iv) provide that employers in the plan, 
                        and participants and beneficiaries, are not 
                        subject to unreasonable restrictions, fees, or 
                        penalties with regard to ceasing participation, 
                        receipt of distributions, or otherwise 
                        transferring assets of the plan in accordance 
                        with section 208 or paragraph (44)(C)(i)(II);
                            ``(v) require--
                                    ``(I) the pooled plan provider to 
                                provide to employers in the plan any 
                                disclosures or other information which 
                                the Secretary may require, including 
                                any disclosures or other information to 
                                facilitate the selection or any 
                                monitoring of the pooled plan provider 
                                by employers in the plan; and
                                    ``(II) each employer in the plan to 
                                take such actions as the Secretary or 
                                the pooled plan provider determines are 
                                necessary to administer the plan or for 
                                the plan to meet any requirement 
                                applicable under this Act or the 
                                Internal Revenue Code of 1986 to a plan 
                                described in section 401(a) of such 
                                Code or to a plan that consists of 
                                individual retirement accounts 
                                described in section 408 of such Code 
                                (including by reason of subsection (c) 
                                thereof), whichever is applicable, 
                                including providing any disclosures or 
                                other information which the Secretary 
                                may require or which the pooled plan 
                                provider otherwise determines are 
                                necessary to administer the plan or to 
                                allow the plan to meet such 
                                requirements; and
                            ``(vi) provide that any disclosure or other 
                        information required to be provided under 
                        clause (v) may be provided in electronic form 
                        and will be designed to ensure only reasonable 
                        costs are imposed on pooled plan providers and 
                        employers in the plan.
                    ``(C) Exceptions.--The term `pooled employer plan' 
                does not include--
                            ``(i) a multiemployer plan; or
                            ``(ii) a plan established before the date 
                        of the enactment of the Retirement Enhancement 
                        and Savings Act of 2019 unless the plan 
                        administrator elects that the plan will be 
                        treated as a pooled employer plan and the plan 
                        meets the requirements of this title applicable 
                        to a pooled employer plan established on or 
                        after such date.
                    ``(D) Treatment of employers as plan sponsors.--
                Except with respect to the administrative duties of the 
                pooled plan provider described in paragraph (44)(A)(i), 
                and except to the extent that employers in the plan are 
                treated as a single employer under section 210, each 
                employer in a pooled employer plan shall be treated as 
                the plan sponsor with respect to the portion of the 
                plan attributable to employees of such employer (or 
                beneficiaries of such employees).
            ``(44) Pooled plan provider.--
                    ``(A) In general.--The term `pooled plan provider' 
                means a person who--
                            ``(i) is designated by the terms of a 
                        pooled employer plan as a named fiduciary, as 
                        the plan administrator, and as the person 
                        responsible for the performance of all 
                        administrative duties (including conducting 
                        proper testing with respect to the plan and the 
                        employees of each employer in the plan) which 
                        are reasonably necessary to ensure that--
                                    ``(I) the plan meets any 
                                requirement applicable under this Act 
                                or the Internal Revenue Code of 1986 to 
                                a plan described in section 401(a) of 
                                such Code or to a plan that consists of 
                                individual retirement accounts 
                                described in section 408 of such Code 
                                (including by reason of subsection (c) 
                                thereof), whichever is applicable; and
                                    ``(II) each employer in the plan 
                                takes such actions as the Secretary or 
                                pooled plan provider determines are 
                                necessary for the plan to meet the 
                                requirements described in subclause 
                                (I), including providing the 
                                disclosures and information described 
                                in paragraph (43)(B)(v)(II);
                            ``(ii) registers as a pooled plan provider 
                        with the Secretary, and provides to the 
                        Secretary such other information as the 
                        Secretary may require, before beginning 
                        operations as a pooled plan provider;
                            ``(iii) acknowledges in writing that such 
                        person is a named fiduciary, and the plan 
                        administrator, with respect to the pooled 
                        employer plan; and
                            ``(iv) is responsible for ensuring that all 
                        persons who handle assets of, or who are 
                        fiduciaries of, the pooled employer plan are 
                        bonded in accordance with section 412.
                    ``(B) Audits, examinations and investigations.--The 
                Secretary may perform audits, examinations, and 
                investigations of pooled plan providers as may be 
                necessary to enforce and carry out the purposes of this 
                paragraph and paragraph (43).
                    ``(C) Guidance.--
                            ``(i) In general.--The Secretary shall 
                        issue such guidance as the Secretary determines 
                        appropriate to carry out the purposes of this 
                        paragraph and paragraph (43), including 
                        guidance--
                                    ``(I) to identify the 
                                administrative duties and other actions 
                                required to be performed by a pooled 
                                plan provider under either such 
                                paragraph; and
                                    ``(II) which requires in 
                                appropriate cases that if an employer 
                                in the plan fails to take the actions 
                                required under subparagraph 
                                (A)(i)(II)--
                                            ``(aa) the assets of the 
                                        plan attributable to employees 
                                        of such employer (or 
                                        beneficiaries of such 
                                        employees) are transferred to a 
                                        plan maintained only by such 
                                        employer (or its successor), to 
                                        an eligible retirement plan as 
                                        defined in section 402(c)(8)(B) 
                                        of the Internal Revenue Code of 
                                        1986 for each individual whose 
                                        account is transferred, or to 
                                        any other arrangement that the 
                                        Secretary determines is 
                                        appropriate in such guidance; 
                                        and
                                            ``(bb) such employer (and 
                                        not the plan with respect to 
                                        which the failure occurred or 
                                        any other employer in such 
                                        plan) shall, except to the 
                                        extent provided in such 
                                        guidance, be liable for any 
                                        liabilities with respect to 
                                        such plan attributable to 
                                        employees of such employer (or 
                                        beneficiaries of such 
                                        employees).
                        The Secretary shall take into account under 
                        subclause (II) whether the failure of an 
                        employer or pooled plan provider to provide any 
                        disclosures or other information, or to take 
                        any other action, necessary to administer a 
                        plan or to allow a plan to meet requirements 
                        described in subparagraph (A)(i)(II) has 
                        continued over a period of time that 
                        demonstrates a lack of commitment to 
                        compliance. The Secretary may waive the 
                        requirements of subclause (II)(aa) in 
                        appropriate circumstances if the Secretary 
                        determines it is in the best interests of the 
                        employees of the employer referred to in such 
                        subclause (and the beneficiaries of such 
                        employees) to retain the assets in the plan 
                        with respect to which the employer's failure 
                        occurred.
                            ``(ii) Good faith compliance with law 
                        before guidance.--An employer or pooled plan 
                        provider shall not be treated as failing to 
                        meet any requirement of this paragraph or 
                        paragraph (43) if, before the issuance of the 
                        guidance under clause (i), the employer or 
                        pooled plan provider has complied in good faith 
                        with a reasonable interpretation of the 
                        provisions of the paragraph to which such 
                        guidance relates.
                    ``(D) Aggregation rules.--For purposes of this 
                paragraph, in determining whether a person meets the 
                requirements of this paragraph to be a pooled plan 
                provider with respect to any plan, all persons who 
                perform services for the plan and who are treated as a 
                single employer under subsection (b), (c), (m), or (o) 
                of section 414 of the Internal Revenue Code of 1986 
                shall be treated as one person.''.
            (2) Bonding requirements for pooled employer plans.--The 
        last sentence of section 412(a) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1112(a)) is amended by 
        inserting ``or in the case of a pooled employer plan (as 
        defined in section 3(43))'' after ``section 407(d)(1))''.
            (3) Conforming and technical amendments.--Section 3 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1002) is amended--
                    (A) in paragraph (16)(B)--
                            (i) by striking ``or'' at the end of clause 
                        (ii); and
                            (ii) by striking the period at the end and 
                        inserting ``, or (iv) in the case of a pooled 
                        employer plan, the pooled plan provider.''; and
                    (B) by striking the second paragraph (41).
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after December 31, 2022.
            (2) Rule of construction.--Nothing in the amendments made 
        by subsection (a) shall be construed as limiting the authority 
        of the Secretary of the Treasury or the Secretary's delegate 
        (determined without regard to such amendments) to provide for 
        the proper treatment of a failure to meet any requirement 
        applicable under the Internal Revenue Code of 1986 with respect 
        to one employer (and its employees) in a multiple employer 
        plan.

SEC. 102. POOLED EMPLOYER AND MULTIPLE EMPLOYER PLAN REPORTING.

    (a) Additional Information.--Section 103 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1023) is amended--
            (1) in subsection (a)(1)(B), by striking ``applicable 
        subsections (d), (e), and (f)'' and inserting ``applicable 
        subsections (d), (e), (f), and (g)''; and
            (2) by amending subsection (g) to read as follows:
    ``(g) Additional Information With Respect to Pooled Employer and 
Multiple Employer Plans.--An annual report under this section for a 
plan year shall include--
            ``(1) with respect to any plan to which section 210(a) 
        applies (including a pooled employer plan), a list of employers 
        in the plan, a good faith estimate of the percentage of total 
        contributions made by such employers during the plan year, and 
        the aggregate account balances attributable to each employer in 
        the plan (determined as the sum of the account balances of the 
        employees of such employer (and the beneficiaries of such 
        employees)); and
            ``(2) with respect to a pooled employer plan, the 
        identifying information for the person designated under the 
        terms of the plan as the pooled plan provider.''.
    (b) Simplified Annual Reports.--Section 104(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1024(a)) is amended 
by striking paragraph (2)(A) and inserting the following:
            ``(2)(A) With respect to annual reports required to be 
        filed with the Secretary under this part, the Secretary may by 
        regulation prescribe simplified annual reports for any pension 
        plan that--
                    ``(i) covers fewer than 100 participants; or
                    ``(ii) is a plan described in section 210(a) that 
                covers fewer than 1,000 participants, but only if no 
                single employer in the plan has 100 or more 
                participants covered by the plan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to annual reports for plan years beginning after December 31, 
2022.

SEC. 103. REMOVAL OF 10-PERCENT CAP FROM AUTOMATIC ENROLLMENT SAFE 
              HARBOR AFTER FIRST PLAN YEAR.

    (a) In General.--Clause (iii) of section 401(k)(13)(C) of the 
Internal Revenue Code of 1986 is amended by striking ``, does not 
exceed 10 percent, and is at least'' and inserting ``and is''.
    (b) Conforming Amendments.--
            (1) Subclause (I) of section 401(k)(13)(C)(iii) of the 
        Internal Revenue Code of 1986 is amended by striking ``3 
        percent'' and inserting ``at least 3 percent, but not greater 
        than 10 percent,''.
            (2) Subclause (II) of section 401(k)(13)(C)(iii) of such 
        Code is amended by striking ``4 percent'' and inserting ``at 
        least 4 percent''.
            (3) Subclause (III) of section 401(k)(13)(C)(iii) of such 
        Code is amended by striking ``5 percent'' and inserting ``at 
        least 5 percent''.
            (4) Subclause (IV) of section 401(k)(13)(C)(iii) of such 
        Code is amended by striking ``6 percent'' and inserting ``at 
        least 6 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2019.

SEC. 104. RULES RELATING TO ELECTION OF SAFE HARBOR 401(K) STATUS.

    (a) Limitation of Annual Safe Harbor Notice to Matching 
Contribution Plans.--
            (1) In general.--Subparagraph (A) of section 401(k)(12) of 
        the Internal Revenue Code of 1986 is amended by striking ``if 
        such arrangement'' and all that follows and inserting ``if such 
        arrangement--
                            ``(i) meets the contribution requirements 
                        of subparagraph (B) and the notice requirements 
                        of subparagraph (D), or
                            ``(ii) meets the contribution requirements 
                        of subparagraph (C).''.
            (2) Automatic contribution arrangements.--Subparagraph (B) 
        of section 401(k)(13) of such Code is amended by striking 
        ``means'' and all that follows and inserting ``means a cash or 
        deferred arrangement--
                            ``(i) which is described in subparagraph 
                        (D)(i)(I) and meets the applicable requirements 
                        of subparagraphs (C) through (E), or
                            ``(ii) which is described in subparagraph 
                        (D)(i)(II) and meets the applicable 
                        requirements of subparagraphs (C) and (D).''.
    (b) Nonelective Contributions.--Section 401(k)(12) of the Internal 
Revenue Code of 1986 is amended by redesignating subparagraph (F) as 
subparagraph (G), and by inserting after subparagraph (E) the following 
new subparagraph:
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (C) shall apply to 
                        the arrangement for the plan year, but only if 
                        the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (B) or paragraph 
                        (13)(D)(i)(I) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph (C) 
                        which the employer is required to make under 
                        the arrangement for the plan year with respect 
                        to any employee is an amount equal to at least 
                        4 percent of the employee's compensation.''.
    (c) Automatic Contribution Arrangements.--Section 401(k)(13) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (D)(i)(II) shall 
                        apply to the arrangement for the plan year, but 
                        only if the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (D)(i)(I) or 
                        paragraph (12)(B) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph 
                        (D)(i)(II) which the employer is required to 
                        make under the arrangement for the plan year 
                        with respect to any employee is an amount equal 
                        to at least 4 percent of the employee's 
                        compensation.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2019.

SEC. 105. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN 
              STARTUP COSTS.

    (a) In General.--Paragraph (1) of section 45E(b) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) for the first credit year and each of the 2 taxable 
        years immediately following the first credit year, the greater 
        of--
                    ``(A) $500, or
                    ``(B) the lesser of--
                            ``(i) $250 for each employee of the 
                        eligible employer who is not a highly 
                        compensated employee (as defined in section 
                        414(q)) and who is eligible to participate in 
                        the eligible employer plan maintained by the 
                        eligible employer, or
                            ``(ii) $5,000, and''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.

SEC. 106. SMALL EMPLOYER AUTOMATIC ENROLLMENT CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT SAVINGS OPTIONS 
              PROVIDED BY SMALL EMPLOYERS.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer, the retirement auto-enrollment credit determined 
under this section for any taxable year is an amount equal to--
            ``(1) $500 for any taxable year occurring during the credit 
        period, and
            ``(2) zero for any other taxable year.
    ``(b) Credit Period.--For purposes of subsection (a)--
            ``(1) In general.--The credit period with respect to any 
        eligible employer is the 3-taxable-year period beginning with 
        the first taxable year for which the employer includes an 
        eligible automatic contribution arrangement (as defined in 
        section 414(w)(3)) in a qualified employer plan (as defined in 
        section 4972(d)) sponsored by the employer.
            ``(2) Maintenance of arrangement.--No taxable year with 
        respect to an employer shall be treated as occurring within the 
        credit period unless the arrangement described in paragraph (1) 
        is included in the plan for such year.
    ``(c) Eligible Employer.--For purposes of this section, the term 
`eligible employer' has the meaning given such term in section 
408(p)(2)(C)(i).''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 is amended by 
striking ``plus'' at the end of paragraph (31), by striking the period 
at the end of paragraph (32) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(33) in the case of an eligible employer (as defined in 
        section 45T(c)), the retirement auto-enrollment credit 
        determined under section 45T(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45S the 
following new item:

``Sec. 45T. Auto-enrollment option for retirement savings options 
                            provided by small employers.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 107. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND PAYMENTS 
              TREATED AS COMPENSATION FOR IRA PURPOSES.

    (a) In General.--Paragraph (1) of section 219(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following: 
``The term `compensation' shall include any amount paid to an 
individual to aid the individual in the pursuit of graduate or 
postdoctoral study, if such amount is included in the gross income of 
the individual for the taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.

SEC. 108. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA CONTRIBUTIONS.

    (a) In General.--Paragraph (1) of section 219(d) of the Internal 
Revenue Code of 1986 is repealed.
    (b) Conforming Amendment.--Subsection (c) of section 408A of the 
Internal Revenue Code of 1986 is amended by striking paragraph (4) and 
by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), 
and (6), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made for taxable years beginning after December 
31, 2019.

SEC. 109. EXPANSION OF IRA OWNERSHIP OF S CORPORATION BANK STOCK.

    (a) In General.--Section 1361(c)(2)(A)(vi) of the Internal Revenue 
Code of 1986 is amended by striking ``, but only to the extent of the 
stock held by such trust in such bank or company as of the date of the 
enactment of this clause''.
    (b) Sale of Stock in IRA Relating to S Corporation Election Exempt 
From Prohibited Transaction Rules.--Section 4975(d)(16) of the Internal 
Revenue Code of 1986 is amended by striking subparagraph (B) and by 
redesignating subparagraphs (C), (D), (E), and (F) as subparagraphs 
(B), (C), (D) and (E), respectively.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2020.

SEC. 110. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING LOANS THROUGH 
              CREDIT CARDS AND OTHER SIMILAR ARRANGEMENTS.

    (a) In General.--Paragraph (2) of section 72(p) of the Internal 
Revenue Code of 1986 is amended by redesignating subparagraph (D) as 
subparagraph (E) and by inserting after subparagraph (C) the following 
new subparagraph:
                    ``(D) Prohibition of loans through credit cards and 
                other similar arrangements.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), subparagraph (A) shall not apply 
                        to any loan which is made through the use of 
                        any credit card or any other similar 
                        arrangement.
                            ``(ii) Exception for existing credit card 
                        systems.--Clause (i) shall not apply to any 
                        loan to the extent such loan is provided 
                        through an electronic card system which, as of 
                        September 21, 2016, was available for use to 
                        provide loans under qualified employer plans.
                            ``(iii) Disallowed transactions.--If any 
                        card through which a loan is provided under the 
                        exception of clause (ii) is used for any 
                        transaction--
                                    ``(I) in an amount equal to or less 
                                than $1,000, or
                                    ``(II) with or on the premises of 
                                any establishment described in clause 
                                (i), (ii), or (iii) of section 
                                408(a)(12)(A) of the Social Security 
                                Act,
                        the amount of such transaction shall be treated 
                        as having been received by the individual as a 
                        distribution in accordance with subparagraph 
                        (A) of paragraph (1).
                            ``(iv) Cost-of-living adjustment.--In the 
                        case of any loan made during a plan year 
                        beginning after December 31, 2020, the $1,000 
                        amount under clause (iii)(I) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the plan year begins, determined by 
                                substituting `calendar year 2019' for 
                                `calendar year 2016' in subparagraph 
                                (A)(ii) thereof. Any increase 
                                determined under the preceding sentence 
                                shall be rounded to the next lowest 
                                multiple of $50.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to plan years beginning after December 31, 2019.
    (c) Study.--The Comptroller General of the United States shall, not 
later than the date which is 1 year after the date of the enactment of 
this Act--
            (1) study the impact of loans from qualified employer plans 
        (as defined in section 72(p)(4)(A) of the Internal Revenue Code 
        of 1986) provided through credit cards and similar arrangements 
        on the use of retirement savings for purposes other than 
        funding retirement; and
            (2) report the results of such study to the Committee on 
        Finance of the Senate and the Committee on the Ways and Means 
        of the House of Representatives.
If the study under paragraph (1) determines that such loans, after 
implementation of the restrictions imposed by the amendments made by 
subsection (a), result in greater usage of retirement savings for 
purposes other than funding retirement than loans made by other means, 
the report under paragraph (2) shall include recommendations to reduce 
such result.

SEC. 111. PORTABILITY OF LIFETIME INCOME OPTIONS.

    (a) In General.--Subsection (a) of section 401 of the Internal 
Revenue Code of 1986 is amended by inserting after paragraph (37) the 
following new paragraph:
            ``(38) Portability of lifetime income.--
                    ``(A) In general.--Except as may be otherwise 
                provided by regulations, 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 lifetime 
                        income investment, or
                            ``(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 investment option under the 
                plan.
                    ``(B) Definitions.--For purposes of this 
                subsection--
                            ``(i) the term `qualified distribution' 
                        means a direct trustee-to-trustee transfer 
                        described in paragraph (31)(A) to an eligible 
                        retirement plan (as defined in section 
                        402(c)(8)(B)),
                            ``(ii) the term `lifetime income 
                        investment' means an investment option which is 
                        designed to provide an employee with election 
                        rights--
                                    ``(I) which are not uniformly 
                                available with respect to other 
                                investment options under the plan, and
                                    ``(II) which are to a lifetime 
                                income feature available through a 
                                contract or other arrangement offered 
                                under the plan (or under another 
                                eligible retirement plan (as so 
                                defined), if paid by means of a direct 
                                trustee-to-trustee transfer described 
                                in paragraph (31)(A) to such other 
                                eligible retirement plan),
                            ``(iii) the term `lifetime income feature' 
                        means--
                                    ``(I) a feature which guarantees a 
                                minimum level of income annually (or 
                                more frequently) for at least the 
                                remainder 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 behalf 
                                of the employee under which payments 
                                are made in substantially equal 
                                periodic payments (not less frequently 
                                than annually) over the life of the 
                                employee or the joint lives of the 
                                employee and the employee's designated 
                                beneficiary, and
                            ``(iv) the term `qualified plan 
                        distribution annuity contract' means an annuity 
                        contract purchased for a participant and 
                        distributed to the participant by a plan or 
                        contract described in subparagraph (B) of 
                        section 402(c)(8) (without regard to clauses 
                        (i) and (ii) thereof).''.
    (b) Cash or Deferred Arrangement.--
            (1) In general.--Clause (i) of section 401(k)(2)(B) of the 
        Internal Revenue Code of 1986 is amended by striking ``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 
        the following new subclause:
                                    ``(VI) except as may be otherwise 
                                provided by regulations, with respect 
                                to amounts invested in a lifetime 
                                income investment (as defined in 
                                subsection (a)(38)(B)(ii)), the date 
                                that is 90 days prior to the date that 
                                such lifetime income investment may no 
                                longer be held as an investment option 
                                under the arrangement, and''.
            (2) Distribution requirement.--Subparagraph (B) of section 
        401(k)(2) of such Code, as amended by paragraph (1), is amended 
        by striking ``and'' at the end of clause (i), by striking the 
        semicolon at the end of clause (ii) and inserting ``, and'', 
        and by adding at the end the following new clause:
                            ``(iii) except as may be otherwise provided 
                        by regulations, in the case of amounts 
                        described in clause (i)(VI), will be 
                        distributed only in the form of a qualified 
                        distribution (as defined in subsection 
                        (a)(38)(B)(i)) or a qualified plan distribution 
                        annuity contract (as defined in subsection 
                        (a)(38)(B)(iv)),''.
    (c) Section 403(b) Plans.--
            (1) Annuity contracts.--Paragraph (11) of section 403(b) of 
        the Internal Revenue Code of 1986 is amended by striking ``or'' 
        at the end of subparagraph (B), by striking the period at the 
        end of subparagraph (C) and inserting ``, or'', and by 
        inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) except as may be otherwise provided by 
                regulations, with respect to amounts invested in a 
                lifetime income investment (as defined in section 
                401(a)(38)(B)(ii))--
                            ``(i) on or after the date that is 90 days 
                        prior to the date that such lifetime income 
                        investment may no longer be held as an 
                        investment option under the contract, and
                            ``(ii) in the form of a qualified 
                        distribution (as defined 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.--Subparagraph (A) of section 
        403(b)(7) of such Code is amended by striking ``if--'' and all 
        that follows and inserting ``if the amounts are to be invested 
        in regulated investment company stock to be held in that 
        custodial account, and under the custodial account--
                            ``(i) no such amounts may be paid or made 
                        available 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 
                                59\1/2\,
                                    ``(III) the employee has a 
                                severance from employment,
                                    ``(IV) the employee becomes 
                                disabled (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 
                                section 3121(a)(5)(D)), the employee 
                                encounters financial hardship, or
                                    ``(VI) except as may be otherwise 
                                provided by regulations, 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 lifetime income investment may no 
                                longer be held as an investment option 
                                under the contract, and
                            ``(ii) in the case of amounts described in 
                        clause (i)(VI), such amounts will be 
                        distributed only in the form of a qualified 
                        distribution (as defined in section 
                        401(a)(38)(B)(i)) or a qualified plan 
                        distribution annuity contract (as defined in 
                        section 401(a)(38)(B)(iv)).''.
    (d) Eligible Deferred Compensation Plans.--
            (1) In general.--Subparagraph (A) of section 457(d)(1) of 
        the Internal Revenue Code of 1986 is amended by striking ``or'' 
        at the end of clause (ii), by inserting ``or'' at the end of 
        clause (iii), and by adding after clause (iii) the following:
                            ``(iv) except as may be otherwise provided 
                        by regulations, in the case of a plan 
                        maintained by an employer described in 
                        subsection (e)(1)(A), 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 
                        lifetime income investment may no longer be 
                        held as an investment option under the plan,''.
            (2) Distribution requirement.--Paragraph (1) of section 
        457(d) of such Code is amended by striking ``and'' at the end 
        of subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by inserting 
        after subparagraph (C) the following new subparagraph:
                    ``(D) except as may be otherwise provided by 
                regulations, in the case of amounts described in 
                subparagraph (A)(iv), such amounts will be distributed 
                only in the form of a qualified distribution (as 
                defined in section 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 December 31, 2019.

SEC. 112. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF SECTION 
              403(B) PLAN.

    Not later than 6 months after the date of the enactment of this 
Act, the Secretary of the Treasury (or the Secretary's delegate) shall 
issue guidance to provide that, if an employer terminates the plan 
under which amounts are contributed to a custodial account under 
subparagraph (A) of section 403(b)(7) of the Internal Revenue Code of 
1986, the plan administrator or custodian may distribute an individual 
custodial account in kind to a participant or beneficiary of the plan 
and the distributed custodial account shall be maintained by the 
custodian on a tax-deferred basis as a custodial account under such 
section 403(b)(7), similar to the treatment of fully-paid individual 
annuity contracts under Revenue Ruling 2011-7, until amounts are 
actually paid to the participant or beneficiary. The guidance shall 
provide further that--
            (1) except as otherwise specifically provided in such 
        guidance, the distributed custodial account shall continue to 
        be treated in the same manner as a custodial account under 
        section 403(b)(7) of such Code if the requirements of section 
        403(b) of such Code (as in effect at the time of the 
        distribution of the account) continue to be met with respect to 
        such distributed account; and
            (2) a custodial account will not be considered distributed 
        to the participant or beneficiary if the employer has any 
        material retained rights under the account (but the employer 
        would not be treated as retaining material rights simply 
        because the custodial account was originally opened under a 
        group contract).

SEC. 113. CLARIFICATION OF RETIREMENT INCOME ACCOUNT RULES RELATING TO 
              CHURCH-CONTROLLED ORGANIZATIONS.

    (a) In General.--Subparagraph (B) of section 403(b)(9) of the 
Internal Revenue Code of 1986 is amended by inserting ``(including an 
employee described in section 414(e)(3)(B))'' after ``employee 
described in paragraph (1)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning before, on, or after the date of the enactment of 
this Act.

                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR MAY BE TREATED AS IN 
              EFFECT AS OF CLOSE OF YEAR.

    (a) In General.--Subsection (b) of section 401 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``Retroactive Changes in Plan.--A stock 
        bonus'' and inserting ``Plan Amendments.--
            ``(1) Certain retroactive changes in plan.--A stock 
        bonus'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Adoption of plan.--If an employer adopts a stock 
        bonus, pension, profit-sharing, or annuity plan after the close 
        of a taxable year but before the time prescribed by law for 
        filing the return of the employer for the taxable year 
        (including extensions thereof), the employer may elect to treat 
        the plan as having been adopted as of the last day of the 
        taxable year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plans adopted for taxable years beginning after December 31, 
2019.

SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF PLANS.

    (a) In General.--The Secretary of the Treasury and the Secretary of 
Labor (or such Secretaries' delegates) shall, in cooperation, modify 
the returns required under section 6058 of the Internal Revenue Code of 
1986 and the reports required by section 104 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1024) so that all members of a 
group of plans described in subsection (c) may file a single aggregated 
annual return or report satisfying the requirements of both such 
sections.
    (b) Administrative Requirements.--In developing the consolidated 
return or report under subsection (a), the Secretary of the Treasury 
and the Secretary of Labor (or such Secretaries' delegates) may require 
such return or report to include any information regarding each plan in 
the group as such Secretaries (or delegates) determine is necessary or 
appropriate for the enforcement and administration of the Internal 
Revenue Code of 1986 and the Employee Retirement Income Security Act of 
1974.
    (c) Plans Described.--A group of plans is described in this 
subsection if all plans in the group--
            (1) are individual account plans or defined contribution 
        plans (as defined in section 3(34) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002(34)) or in section 
        414(i) of the Internal Revenue Code of 1986);
            (2) have--
                    (A) the same trustee (as described in section 
                403(a) of such Act (29 U.S.C. 1103(a)));
                    (B) the same one or more named fiduciaries (as 
                described in section 402(a) of such Act (29 U.S.C. 
                1102(a)));
                    (C) the same administrator (as defined in section 
                3(16)(A) of such Act (29 U.S.C. 1002(16)(A))) and plan 
                administrator (as defined in section 414(g) of the 
                Internal Revenue Code of 1986); and
                    (D) plan years beginning on the same date; and
            (3) provide the same investments or investment options to 
        participants and beneficiaries.
A plan not subject to title I of the Employee Retirement Income 
Security Act of 1974 shall be treated as meeting the requirements of 
paragraph (2) as part of a group of plans if the same person that 
performs each of the functions described in such paragraph, as 
applicable, for all other plans in such group performs each of such 
functions for such plan.
    (d) Clarification Relating to Electronic Filing of Returns for 
Deferred Compensation Plans.--
            (1) In general.--Section 6011(e) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(6) Application of numerical limitation to returns 
        relating to deferred compensation plans.--For purposes of 
        applying the numerical limitation under paragraph (2)(A) to any 
        return required under section 6058, information regarding each 
        plan for which information is provided on such return shall be 
        treated as a separate return.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to returns required to be filed with respect to 
        plan years beginning after December 31, 2019.
    (e) Effective Date.--The modification required by subsection (a) 
shall be implemented not later than January 1, 2022, and shall apply to 
returns and reports for plan years beginning after December 31, 2021.

SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME.

    (a) In General.--Subparagraph (B) of section 105(a)(2) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)(2)) 
is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking ``diversification.'' and 
        inserting ``diversification, and''; and
            (3) by inserting at the end the following:
                            ``(iii) the lifetime income disclosure 
                        described in subparagraph (D)(i).
                In the case of pension benefit statements described in 
                clause (i) of paragraph (1)(A), a lifetime income 
                disclosure under clause (iii) of this subparagraph 
                shall be required to be included in only one pension 
                benefit statement during any one 12-month period.''.
    (b) Lifetime Income.--Paragraph (2) of section 105(a) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Lifetime income disclosure.--
                            ``(i) In general.--
                                    ``(I) Disclosure.--A lifetime 
                                income disclosure shall set forth the 
                                lifetime income stream equivalent of 
                                the total benefits accrued with respect 
                                to the participant or beneficiary.
                                    ``(II) Lifetime income stream 
                                equivalent of the total benefits 
                                accrued.--For purposes of this 
                                subparagraph, the term `lifetime income 
                                stream equivalent of the total benefits 
                                accrued' means the amount of monthly 
                                payments the participant or beneficiary 
                                would receive if the total accrued 
                                benefits of such participant or 
                                beneficiary were used to provide 
                                lifetime income streams described in 
                                subclause (III), based on assumptions 
                                specified in rules prescribed by the 
                                Secretary.
                                    ``(III) Lifetime income streams.--
                                The lifetime income streams described 
                                in this subclause are a qualified joint 
                                and survivor annuity (as defined in 
                                section 205(d)), based on assumptions 
                                specified in rules prescribed by the 
                                Secretary, including the assumption 
                                that the participant or beneficiary has 
                                a spouse of equal age, and a single 
                                life annuity. Such lifetime income 
                                streams may have a term certain or 
                                other features to the extent permitted 
                                under rules prescribed by the 
                                Secretary.
                            ``(ii) Model disclosure.--Not later than 1 
                        year after the date of the enactment of the 
                        Retirement Enhancement and Savings Act of 2019, 
                        the Secretary shall issue a model lifetime 
                        income disclosure, written in a manner so as to 
                        be understood by the average plan participant, 
                        which--
                                    ``(I) explains that the lifetime 
                                income stream equivalent is only 
                                provided as an illustration;
                                    ``(II) explains that the actual 
                                payments under the lifetime income 
                                stream described in clause (i)(III) 
                                which may be purchased with the total 
                                benefits accrued will depend on 
                                numerous factors and may vary 
                                substantially from the lifetime income 
                                stream equivalent in the disclosures;
                                    ``(III) explains the assumptions 
                                upon which the lifetime income stream 
                                equivalent was determined; and
                                    ``(IV) provides such other similar 
                                explanations as the Secretary considers 
                                appropriate.
                            ``(iii) Assumptions and rules.--Not later 
                        than 1 year after the date of the enactment of 
                        the Retirement Enhancement and Savings Act of 
                        2019, the Secretary shall--
                                    ``(I) prescribe assumptions which 
                                administrators of individual account 
                                plans may use in converting total 
                                accrued benefits into lifetime income 
                                stream equivalents for purposes of this 
                                subparagraph; and
                                    ``(II) issue interim final rules 
                                under clause (i).
                        In prescribing assumptions under subclause (I), 
                        the Secretary may prescribe a single set of 
                        specific assumptions (in which case the 
                        Secretary may issue tables or factors which 
                        facilitate such conversions), or ranges of 
                        permissible assumptions. To the extent that an 
                        accrued benefit is or may be invested in a 
                        lifetime income stream described in clause 
                        (i)(III), the assumptions prescribed under 
                        subclause (I) shall, to the extent appropriate, 
                        permit administrators of individual account 
                        plans to use the amounts payable under such 
                        lifetime income stream as a lifetime income 
                        stream equivalent.
                            ``(iv) Limitation on liability.--No plan 
                        fiduciary, plan sponsor, or other person shall 
                        have any liability under this title solely by 
                        reason of the provision of lifetime income 
                        stream equivalents which are derived in 
                        accordance with the assumptions and rules 
                        described in clause (iii) and which include the 
                        explanations contained in the model lifetime 
                        income disclosure described in clause (ii). 
                        This clause shall apply without regard to 
                        whether the provision of such lifetime income 
                        stream equivalent is required by subparagraph 
                        (B)(iii).
                            ``(v) Effective date.--The requirement in 
                        subparagraph (B)(iii) shall apply to pension 
                        benefit statements furnished more than 12 
                        months after the latest of the issuance by the 
                        Secretary of--
                                    ``(I) interim final rules under 
                                clause (i);
                                    ``(II) the model disclosure under 
                                clause (ii); or
                                    ``(III) the assumptions under 
                                clause (iii).''.

SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME INCOME 
              PROVIDER.

    Section 404 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104) is amended by adding at the end the following:
    ``(e) Safe Harbor for Annuity Selection.--
            ``(1) In general.--With respect to the selection of an 
        insurer for a guaranteed retirement income contract, the 
        requirements of subsection (a)(1)(B) will be deemed to be 
        satisfied if a fiduciary--
                    ``(A) engages in an objective, thorough, and 
                analytical search for the purpose of identifying 
                insurers from which to purchase such contracts;
                    ``(B) with respect to each insurer identified under 
                subparagraph (A)--
                            ``(i) considers the financial capability of 
                        such insurer to satisfy its obligations under 
                        the guaranteed retirement income contract; and
                            ``(ii) considers the cost (including fees 
                        and commissions) of the guaranteed retirement 
                        income contract offered by the insurer in 
                        relation to the benefits and product features 
                        of the contract and administrative services to 
                        be provided under such contract; and
                    ``(C) on the basis of such consideration, concludes 
                that--
                            ``(i) at the time of the selection, the 
                        insurer is financially capable of satisfying 
                        its obligations under the guaranteed retirement 
                        income contract; and
                            ``(ii) the relative cost of the selected 
                        guaranteed retirement income contract as 
                        described in subparagraph (B)(ii) is 
                        reasonable.
            ``(2) Financial capability of the insurer.--A fiduciary 
        will be deemed to satisfy the requirements of paragraphs 
        (1)(B)(i) and (1)(C)(i) if--
                    ``(A) the fiduciary obtains written representations 
                from the insurer that--
                            ``(i) the insurer is licensed to offer 
                        guaranteed retirement income contracts;
                            ``(ii) the insurer, at the time of 
                        selection and for each of the immediately 
                        preceding 7 plan years--
                                    ``(I) operates under a certificate 
                                of authority from the insurance 
                                commissioner of its domiciliary State 
                                which has not been revoked or 
                                suspended;
                                    ``(II) has filed audited financial 
                                statements in accordance with the laws 
                                of its domiciliary State under 
                                applicable statutory accounting 
                                principles;
                                    ``(III) maintains (and has 
                                maintained) reserves which satisfies 
                                all the statutory requirements of all 
                                States where the insurer does business; 
                                and
                                    ``(IV) is not operating under an 
                                order of supervision, rehabilitation, 
                                or liquidation;
                            ``(iii) the insurer undergoes, at least 
                        every 5 years, a financial examination (within 
                        the meaning of the law of its domiciliary 
                        State) by the insurance commissioner of the 
                        domiciliary State (or representative, designee, 
                        or other party approved by such commissioner); 
                        and
                            ``(iv) the insurer will notify the 
                        fiduciary of any change in circumstances 
                        occurring after the provision of the 
                        representations in clauses (i), (ii), and (iii) 
                        which would preclude the insurer from making 
                        such representations at the time of issuance of 
                        the guaranteed retirement income contract; and
                    ``(B) after receiving such representations and as 
                of the time of selection, the fiduciary has not 
                received any notice described in subparagraph (A)(iv) 
                and is in possession of no other information which 
                would cause the fiduciary to question the 
                representations provided.
            ``(3) No requirement to select lowest cost.--Nothing in 
        this subsection shall be construed to require a fiduciary to 
        select the lowest cost contract. A fiduciary may consider the 
        value of a contract, including features and benefits of the 
        contract and attributes of the insurer (including, without 
        limitation, the insurer's financial strength) in conjunction 
        with the cost of the contract.
            ``(4) Time of selection.--
                    ``(A) In general.--For purposes of this subsection, 
                the time of selection is--
                            ``(i) the time that the insurer and the 
                        contract are selected for distribution of 
                        benefits to a specific participant or 
                        beneficiary; or
                            ``(ii) if the fiduciary periodically 
                        reviews the continuing appropriateness of the 
                        conclusion described in paragraph (1)(C) with 
                        respect to a selected insurer, taking into 
                        account the considerations described in such 
                        paragraph, the time that the insurer and the 
                        contract are selected to provide benefits at 
                        future dates to participants or beneficiaries 
                        under the plan.
                Nothing in the preceding sentence shall be construed to 
                require the fiduciary to review the appropriateness of 
                a selection after the purchase of a contract for a 
                participant or beneficiary.
                    ``(B) Periodic review.--A fiduciary will be deemed 
                to have conducted the periodic review described in 
                subparagraph (A)(ii) if the fiduciary obtains the 
                written representations described in clauses (i), (ii), 
                and (iii) of paragraph (2)(A) from the insurer on an 
                annual basis, unless the fiduciary receives any notice 
                described in paragraph (2)(A)(iv) or otherwise becomes 
                aware of facts that would cause the fiduciary to 
                question such representations.
            ``(5) Limited liability.--A fiduciary which satisfies the 
        requirements of this subsection shall not be liable following 
        the distribution of any benefit, or the investment by or on 
        behalf of a participant or beneficiary pursuant to the selected 
        guaranteed retirement income contract, for any losses that may 
        result to the participant or beneficiary due to an insurer's 
        inability to satisfy its financial obligations under the terms 
        of such contract.
            ``(6) Definitions.--For purposes of this subsection--
                    ``(A) Insurer.--The term `insurer' means an 
                insurance company, insurance service, or insurance 
                organization, including affiliates of such companies.
                    ``(B) Guaranteed retirement income contract.--The 
                term `guaranteed retirement income contract' means an 
                annuity contract for a fixed term or a contract (or 
                provision or feature thereof) which provides guaranteed 
                benefits annually (or more frequently) for at least the 
                remainder of the life of the participant or the joint 
                lives of the participant and the participant's 
                designated beneficiary as part of an individual account 
                plan.''.

SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES TO PROTECT OLDER, 
              LONGER SERVICE PARTICIPANTS.

    (a) In General.--Section 401 of the Internal Revenue Code of 1986 
is amended--
            (1) by redesignating subsection (o) as subsection (p), and
            (2) by inserting after subsection (n) the following new 
        subsection:
    ``(o) Special Rules for Applying Nondiscrimination Rules To Protect 
Older, Longer Service and Grandfathered Participants.--
            ``(1) Testing of defined benefit plans with closed classes 
        of participants.--
                    ``(A) Benefits, rights, or features provided to 
                closed classes.--A defined benefit plan which provides 
                benefits, rights, or features to a closed class of 
                participants shall not fail to satisfy the requirements 
                of subsection (a)(4) by reason of the composition of 
                such closed class or the benefits, rights, or features 
                provided to such closed class, if--
                            ``(i) for the plan year as of which the 
                        class closes and the 2 succeeding plan years, 
                        such benefits, rights, and features satisfy the 
                        requirements of subsection (a)(4) (without 
                        regard to this subparagraph but taking into 
                        account the rules of subparagraph (I)),
                            ``(ii) after the date as of which the class 
                        was closed, any plan amendment which modifies 
                        the closed class or the benefits, rights, and 
                        features provided to such closed class does not 
                        discriminate significantly in favor of highly 
                        compensated employees, and
                            ``(iii) the class was closed before 
                        September 21, 2016, or the plan is described in 
                        subparagraph (C).
                    ``(B) Aggregate testing with defined contribution 
                plans permitted on a benefits basis.--
                            ``(i) In general.--For purposes of 
                        determining compliance with subsection (a)(4) 
                        and section 410(b), a defined benefit plan 
                        described in clause (iii) may be aggregated and 
                        tested on a benefits basis with one or more 
                        defined contribution plans, including with the 
                        portion of one or more defined contribution 
                        plans which--
                                    ``(I) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)),
                                    ``(II) provides annuity contracts 
                                described in section 403(b) which are 
                                purchased with matching contributions 
                                or nonelective contributions, or
                                    ``(III) consists of an employee 
                                stock ownership plan (within the 
                                meaning of section 4975(e)(7)) or a tax 
                                credit employee stock ownership plan 
                                (within the meaning of section 409(a)).
                            ``(ii) Special rules for matching 
                        contributions.--For purposes of clause (i), if 
                        a defined benefit plan is aggregated with a 
                        portion of a defined contribution plan 
                        providing matching contributions--
                                    ``(I) such defined benefit plan 
                                must also be aggregated with any 
                                portion of such defined contribution 
                                plan which provides elective deferrals 
                                described in subparagraph (A) or (C) of 
                                section 402(g)(3), and
                                    ``(II) such matching contributions 
                                shall be treated in the same manner as 
                                nonelective contributions, including 
                                for purposes of applying the rules of 
                                subsection (l).
                            ``(iii) Plans described.--A defined benefit 
                        plan is described in this clause if--
                                    ``(I) the plan provides benefits to 
                                a closed class of participants,
                                    ``(II) for the plan year as of 
                                which the class closes and the 2 
                                succeeding plan years, the plan 
                                satisfies the requirements of section 
                                410(b) and subsection (a)(4) (without 
                                regard to this subparagraph but taking 
                                into account the rules of subparagraph 
                                (I)),
                                    ``(III) after the date as of which 
                                the class was closed, any plan 
                                amendment which modifies the closed 
                                class or the benefits provided to such 
                                closed class does not discriminate 
                                significantly in favor of highly 
                                compensated employees, and
                                    ``(IV) the class was closed before 
                                September 21, 2016, or the plan is 
                                described in subparagraph (C).
                    ``(C) Plans described.--A plan is described in this 
                subparagraph if, taking into account any predecessor 
                plan--
                            ``(i) such plan has been in effect for at 
                        least 5 years as of the date the class is 
                        closed, and
                            ``(ii) during the 5-year period preceding 
                        the date the class is closed, there has not 
                        been a substantial increase in the coverage or 
                        value of the benefits, rights, or features 
                        described in subparagraph (A) or in the 
                        coverage or benefits under the plan described 
                        in subparagraph (B)(iii) (whichever is 
                        applicable).
                    ``(D) Determination of substantial increase for 
                benefits, rights, and features.--In applying 
                subparagraph (C)(ii) for purposes of subparagraph 
                (A)(iii), a plan shall be treated as having had a 
                substantial increase in coverage or value of the 
                benefits, rights, or features described in subparagraph 
                (A) during the applicable 5-year period only if, during 
                such period--
                            ``(i) the number of participants covered by 
                        such benefits, rights, or features on the date 
                        such period ends is more than 50 percent 
                        greater than the number of such participants on 
                        the first day of the plan year in which such 
                        period began, or
                            ``(ii) such benefits, rights, and features 
                        have been modified by one or more plan 
                        amendments in such a way that, as of the date 
                        the class is closed, the value of such 
                        benefits, rights, and features to the closed 
                        class as a whole is substantially greater than 
                        the value as of the first day of such 5-year 
                        period, solely as a result of such amendments.
                    ``(E) Determination of substantial increase for 
                aggregate testing on benefits basis.--In applying 
                subparagraph (C)(ii) for purposes of subparagraph 
                (B)(iii)(IV), a plan shall be treated as having had a 
                substantial increase in coverage or benefits during the 
                applicable 5-year period only if, during such period--
                            ``(i) the number of participants benefiting 
                        under the plan on the date such period ends is 
                        more than 50 percent greater than the number of 
                        such participants on the first day of the plan 
                        year in which such period began, or
                            ``(ii) the average benefit provided to such 
                        participants on the date such period ends is 
                        more than 50 percent greater than the average 
                        benefit provided on the first day of the plan 
                        year in which such period began.
                    ``(F) Certain employees disregarded.--For purposes 
                of subparagraphs (D) and (E), any increase in coverage 
                or value or in coverage or benefits, whichever is 
                applicable, which is attributable to such coverage and 
                value or coverage and benefits provided to employees--
                            ``(i) who became participants as a result 
                        of a merger, acquisition, or similar event 
                        which occurred during the 7-year period 
                        preceding the date the class is closed, or
                            ``(ii) who became participants by reason of 
                        a merger of the plan with another plan which 
                        had been in effect for at least 5 years as of 
                        the date of the merger,
                shall be disregarded, except that clause (ii) shall 
                apply for purposes of subparagraph (D) only if, under 
                the merger, the benefits, rights, or features under 1 
                plan are conformed to the benefits, rights, or features 
                of the other plan prospectively.
                    ``(G) Rules relating to average benefit.--For 
                purposes of subparagraph (E)--
                            ``(i) the average benefit provided to 
                        participants under the plan will be treated as 
                        having remained the same between the 2 dates 
                        described in subparagraph (E)(ii) if the 
                        benefit formula applicable to such participants 
                        has not changed between such dates, and
                            ``(ii) if the benefit formula applicable to 
                        one or more participants under the plan has 
                        changed between such 2 dates, then the average 
                        benefit under the plan shall be considered to 
                        have increased by more than 50 percent only 
                        if--
                                    ``(I) the total amount determined 
                                under section 430(b)(1)(A)(i) for all 
                                participants benefiting under the plan 
                                for the plan year in which the 5-year 
                                period described in subparagraph (E) 
                                ends, exceeds
                                    ``(II) the total amount determined 
                                under section 430(b)(1)(A)(i) for all 
                                such participants for such plan year, 
                                by using the benefit formula in effect 
                                for each such participant for the first 
                                plan year in such 5-year period,
                        by more than 50 percent. In the case of a CSEC 
                        plan (as defined in section 414(y)), the normal 
                        cost of the plan (as determined under section 
                        433(j)(1)(B)) shall be used in lieu of the 
                        amount determined under section 
                        430(b)(1)(A)(i).
                    ``(H) Treatment as single plan.--For purposes of 
                subparagraphs (E) and (G), a plan described in section 
                413(c) shall be treated as a single plan rather than as 
                separate plans maintained by each employer in the plan.
                    ``(I) Special rules.--For purposes of subparagraphs 
                (A)(i) and (B)(iii)(II), the following rules shall 
                apply:
                            ``(i) In applying section 410(b)(6)(C), the 
                        closing of the class of participants shall not 
                        be treated as a significant change in coverage 
                        under section 410(b)(6)(C)(i)(II).
                            ``(ii) Two or more plans shall not fail to 
                        be eligible to be aggregated and treated as a 
                        single plan solely by reason of having 
                        different plan years.
                            ``(iii) Changes in the employee population 
                        shall be disregarded to the extent attributable 
                        to individuals who become employees or cease to 
                        be employees, after the date the class is 
                        closed, by reason of a merger, acquisition, 
                        divestiture, or similar event.
                            ``(iv) Aggregation and all other testing 
                        methodologies otherwise applicable under 
                        subsection (a)(4) and section 410(b) may be 
                        taken into account.
                The rule of clause (ii) shall also apply for purposes 
                of determining whether plans to which subparagraph 
                (B)(i) applies may be aggregated and treated as 1 plan 
                for purposes of determining whether such plans meet the 
                requirements of subsection (a)(4) and section 410(b).
                    ``(J) Spun-off plans.--For purposes of this 
                paragraph, if a portion of a defined benefit plan 
                described in subparagraph (A) or (B)(iii) is spun off 
                to another employer and the spun-off plan continues to 
                satisfy the requirements of--
                            ``(i) subparagraph (A)(i) or (B)(iii)(II), 
                        whichever is applicable, if the original plan 
                        was still within the 3-year period described in 
                        such subparagraph at the time of the spin off, 
                        and
                            ``(ii) subparagraph (A)(ii) or 
                        (B)(iii)(III), whichever is applicable,
                the treatment under subparagraph (A) or (B) of the 
                spun-off plan shall continue with respect to such other 
                employer.
            ``(2) Testing of defined contribution plans.--
                    ``(A) Testing on a benefits basis.--A defined 
                contribution plan shall be permitted to be tested on a 
                benefits basis if--
                            ``(i) such defined contribution plan 
                        provides make-whole contributions to a closed 
                        class of participants whose accruals under a 
                        defined benefit plan have been reduced or 
                        eliminated,
                            ``(ii) for the plan year of the defined 
                        contribution plan as of which the class 
                        eligible to receive such make-whole 
                        contributions closes and the 2 succeeding plan 
                        years, such closed class of participants 
                        satisfies the requirements of section 
                        410(b)(2)(A)(i) (determined by applying the 
                        rules of paragraph (1)(I)),
                            ``(iii) after the date as of which the 
                        class was closed, any plan amendment to the 
                        defined contribution plan which modifies the 
                        closed class or the allocations, benefits, 
                        rights, and features provided to such closed 
                        class does not discriminate significantly in 
                        favor of highly compensated employees, and
                            ``(iv) the class was closed before 
                        September 21, 2016, or the defined benefit plan 
                        under clause (i) is described in paragraph 
                        (1)(C) (as applied for purposes of paragraph 
                        (1)(B)(iii)(IV)).
                    ``(B) Aggregation with plans including matching 
                contributions.--
                            ``(i) In general.--With respect to one or 
                        more defined contribution plans described in 
                        subparagraph (A), for purposes of determining 
                        compliance with subsection (a)(4) and section 
                        410(b), the portion of such plans which 
                        provides make-whole contributions or other 
                        nonelective contributions may be aggregated and 
                        tested on a benefits basis with the portion of 
                        one or more other defined contribution plans 
                        which--
                                    ``(I) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)),
                                    ``(II) provides annuity contracts 
                                described in section 403(b) which are 
                                purchased with matching contributions 
                                or nonelective contributions, or
                                    ``(III) consists of an employee 
                                stock ownership plan (within the 
                                meaning of section 4975(e)(7)) or a tax 
                                credit employee stock ownership plan 
                                (within the meaning of section 409(a)).
                            ``(ii) Special rules for matching 
                        contributions.--Rules similar to the rules of 
                        paragraph (1)(B)(ii) shall apply for purposes 
                        of clause (i).
                    ``(C) Special rules for testing defined 
                contribution plan features providing matching 
                contributions to certain older, longer service 
                participants.--In the case of a defined contribution 
                plan which provides benefits, rights, or features to a 
                closed class of participants whose accruals under a 
                defined benefit plan have been reduced or eliminated, 
                the plan shall not fail to satisfy the requirements of 
                subsection (a)(4) solely by reason of the composition 
                of the closed class or the benefits, rights, or 
                features provided to such closed class if the defined 
                contribution plan and defined benefit plan otherwise 
                meet the requirements of subparagraph (A) but for the 
                fact that the make-whole contributions under the 
                defined contribution plan are made in whole or in part 
                through matching contributions.
                    ``(D) Spun-off plans.--For purposes of this 
                paragraph, if a portion of a defined contribution plan 
                described in subparagraph (A) or (C) is spun off to 
                another employer, the treatment under subparagraph (A) 
                or (C) of the spun-off plan shall continue with respect 
                to the other employer if such plan continues to comply 
                with the requirements of clauses (ii) (if the original 
                plan was still within the 3-year period described in 
                such clause at the time of the spin off) and (iii) of 
                subparagraph (A), as determined for purposes of 
                subparagraph (A) or (C), whichever is applicable.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Make-whole contributions.--Except as 
                otherwise provided in paragraph (2)(C), the term `make-
                whole contributions' means nonelective allocations for 
                each employee in the class which are reasonably 
                calculated, in a consistent manner, to replace some or 
                all of the retirement benefits which the employee would 
                have received under the defined benefit plan and any 
                other plan or qualified cash or deferred arrangement 
                under subsection (k)(2) if no change had been made to 
                such defined benefit plan and such other plan or 
                arrangement. For purposes of the preceding sentence, 
                consistency shall not be required with respect to 
                employees who were subject to different benefit 
                formulas under the defined benefit plan.
                    ``(B) References to closed class of participants.--
                References to a closed class of participants and 
                similar references to a closed class shall include 
                arrangements under which one or more classes of 
                participants are closed, except that one or more 
                classes of participants closed on different dates shall 
                not be aggregated for purposes of determining the date 
                any such class was closed.
                    ``(C) Highly compensated employee.--The term 
                `highly compensated employee' has the meaning given 
                such term in section 414(q).''.
    (b) Participation Requirements.--Paragraph (26) of section 401(a) 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph:
                    ``(I) Protected participants.--
                            ``(i) In general.--A plan shall be deemed 
                        to satisfy the requirements of subparagraph (A) 
                        if--
                                    ``(I) the plan is amended--
                                            ``(aa) to cease all benefit 
                                        accruals, or
                                            ``(bb) to provide future 
                                        benefit accruals only to a 
                                        closed class of participants,
                                    ``(II) the plan satisfies 
                                subparagraph (A) (without regard to 
                                this subparagraph) as of the effective 
                                date of the amendment, and
                                    ``(III) the amendment was adopted 
                                before September 21, 2016, or the plan 
                                is described in clause (ii).
                            ``(ii) Plans described.--A plan is 
                        described in this clause if the plan would be 
                        described in subsection (o)(1)(C), as applied 
                        for purposes of subsection (o)(1)(B)(iii)(IV) 
                        and by treating the effective date of the 
                        amendment as the date the class was closed for 
                        purposes of subsection (o)(1)(C).
                            ``(iii) Special rules.--For purposes of 
                        clause (i)(II), in applying section 
                        410(b)(6)(C), the amendments described in 
                        clause (i) shall not be treated as a 
                        significant change in coverage under section 
                        410(b)(6)(C)(i)(II).
                            ``(iv) Spun-off plans.--For purposes of 
                        this subparagraph, if a portion of a plan 
                        described in clause (i) is spun off to another 
                        employer, the treatment under clause (i) of the 
                        spun-off plan shall continue with respect to 
                        the other employer.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act, without regard to whether any 
        plan modifications referred to in such amendments are adopted 
        or effective before, on, or after such date of enactment.
            (2) Special rules.--
                    (A) Election of earlier application.--At the 
                election of the plan sponsor, the amendments made by 
                this section shall apply to plan years beginning after 
                December 31, 2013.
                    (B) Closed classes of participants.--For purposes 
                of paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and 
                (2)(A)(iv) of section 401(o) of the Internal Revenue 
                Code of 1986 (as added by this section), a closed class 
                of participants shall be treated as being closed before 
                September 21, 2016, if the plan sponsor's intention to 
                create such closed class is reflected in formal written 
                documents and communicated to participants before such 
                date.
                    (C) Certain post-enactment plan amendments.--A plan 
                shall not be treated as failing to be eligible for the 
                application of section 401(o)(1)(A), 401(o)(1)(B)(iii), 
                or 401(a)(26) of such Code (as added by this section) 
                to such plan solely because in the case of--
                            (i) such section 401(o)(1)(A), the plan was 
                        amended before the date of the enactment of 
                        this Act to eliminate one or more benefits, 
                        rights, or features, and is further amended 
                        after such date of enactment to provide such 
                        previously eliminated benefits, rights, or 
                        features to a closed class of participants, or
                            (ii) such section 401(o)(1)(B)(iii) or 
                        section 401(a)(26), the plan was amended before 
                        the date of the enactment of this Act to cease 
                        all benefit accruals, and is further amended 
                        after such date of enactment to provide benefit 
                        accruals to a closed class of participants.
                Any such section shall only apply if the plan otherwise 
                meets the requirements of such section and in applying 
                such section, the date the class of participants is 
                closed shall be the effective date of the later 
                amendment.

SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC PLANS.

    (a) Flat Rate Premium.--Subparagraph (A) of section 4006(a)(3) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)) is amended--
            (1) in clause (i), by striking ``plan,'' and inserting 
        ``plan other than a CSEC plan (as defined in section 
        210(f)(1))'';
            (2) in clause (v), by striking ``or'' at the end;
            (3) in clause (vi), by striking the period at the end and 
        inserting ``, or''; and
            (4) by adding at the end the following new clause:
                            ``(vii) in the case of a CSEC plan (as 
                        defined in section 210(f)(1)), for plan years 
                        beginning after December 31, 2018, for each 
                        individual who is a participant in such plan 
                        during the plan year an amount equal to the sum 
                        of--
                                    ``(I) the additional premium (if 
                                any) determined under subparagraph (E), 
                                and
                                    ``(II) $19.''.
    (b) Variable Rate Premium.--
            (1) Unfunded vested benefits.--
                    (A) In general.--Subparagraph (E) of section 
                4006(a)(3) of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1306(a)(3)) is amended by adding 
                at the end the following new clause:
                            ``(v) For purposes of clause (ii), in the 
                        case of a CSEC plan (as defined in section 
                        210(f)(1)), the term `unfunded vested benefits' 
                        means, for plan years beginning after December 
                        31, 2018, the excess (if any) of--
                                    ``(I) the funding liability of the 
                                plan as determined under section 
                                306(j)(5)(C) for the plan year by only 
                                taking into account vested benefits, 
                                over
                                    ``(II) the fair market value of 
                                plan assets for the plan year which are 
                                held by the plan on the valuation 
                                date.''.
                    (B) Conforming amendment.--Clause (iii) of section 
                4006(a)(3)(E) of such Act (29 U.S.C. 1306(a)(3)(E)) is 
                amended by striking ``For purposes'' and inserting 
                ``Except as provided in clause (v), for purposes''.
            (2) Applicable dollar amount.--
                    (A) In general.--Paragraph (8) of section 4006(a) 
                of such Act (29 U.S.C. 1306(a)) is amended by adding at 
                the end the following new subparagraph:
                    ``(E) CSEC plans.--In the case of a CSEC plan (as 
                defined in section 210(f)(1)), the applicable dollar 
                amount shall be $9.''.
                    (B) Conforming amendment.--Subparagraph (A) of 
                section 4006(a)(8) of such Act (29 U.S.C. 1306(a)(8)) 
                is amended by striking ``(B) and (C)'' and inserting 
                ``(B), (C), and (E)''.

        TITLE III--BENEFITS RELATING TO UNITED STATES TAX COURT

SEC. 301. THRIFT SAVINGS PLAN CONTRIBUTIONS FOR JUDGES IN THE FEDERAL 
              EMPLOYEES RETIREMENT SYSTEM.

    (a) In General.--Subsection (j)(3)(B) of section 7447 of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) Contributions for benefit of judge.--No 
                contributions under section 8432(c) of title 5, United 
                States Code, shall be made for the benefit of a judge 
                who has filed an election to receive retired pay under 
                subsection (e).''.
    (b) Offset.--Paragraph (3) of section 7447(j) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(F) Offset.--In the case of a judge who receives 
                a distribution from the Thrift Savings Plan and who 
                later receives retired pay under subsection (d), the 
                retired pay shall be offset by an amount equal to the 
                amount of the distribution which represents the 
                Government's contribution to the individual's Thrift 
                Savings Account during years of service as a full-time 
                judicial officer under the Federal Employees Retirement 
                System, without regard to earnings attributable to such 
                amount. Where such an offset would exceed 50 percent of 
                the retired pay to be received in the first year, the 
                offset may be divided equally over the first 2 years in 
                which the individual receives the annuity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to basic pay earned while serving as a judge of the United States 
Tax Court on or after the date of the enactment of this Act.

SEC. 302. CHANGE IN VESTING PERIOD FOR SURVIVOR ANNUITIES AND WAIVER OF 
              VESTING PERIOD IN THE EVENT OF ASSASSINATION.

    (a) Eligibility in Case of Death by Assassination.--Subsection (h) 
of section 7448 of the Internal Revenue Code of 1986 is amended to read 
as follows:
    ``(h) Entitlement to Annuity.--
            ``(1) In general.--
                    ``(A) Annuity to surviving spouse.--If a judge or 
                magistrate judge of the Tax Court described in 
                paragraph (2) is survived by a surviving spouse but not 
                by a dependent child, there shall be paid to such 
                surviving spouse an annuity beginning with the day of 
                the death of the judge or magistrate judge of the Tax 
                Court or following the surviving spouse's attainment of 
                age 50, whichever is the later, in an amount computed 
                as provided in subsection (m).
                    ``(B) Annuity to surviving spouse and child.--If a 
                judge or magistrate judge of the Tax Court described in 
                paragraph (2) is survived by a surviving spouse and 
                dependent child or children, there shall be paid to 
                such surviving spouse an annuity, beginning on the day 
                of the death of the judge or magistrate judge of the 
                Tax Court, in an amount computed as provided in 
                subsection (m), and there shall also be paid to or on 
                behalf of each such child an immediate annuity equal to 
                the lesser of--
                            ``(i) 10 percent of the average annual 
                        salary of such judge or magistrate judge of the 
                        Tax Court (determined in accordance with 
                        subsection (m)), or
                            ``(ii) 20 percent of such average annual 
                        salary, divided by the number of such children.
                    ``(C) Annuity to surviving dependent children.--If 
                a judge or magistrate judge of the Tax Court described 
                in paragraph (2) leaves no surviving spouse but leaves 
                a surviving dependent child or children, there shall be 
                paid to or on behalf of each such child an immediate 
                annuity equal to the lesser of--
                            ``(i) 20 percent of the average annual 
                        salary of such judge or magistrate judge of the 
                        Tax Court (determined in accordance with 
                        subsection (m)), or
                            ``(ii) 40 percent of such average annual 
                        salary divided by the number of such children.
            ``(2) Covered judges.--Paragraph (1) applies to any judge 
        or magistrate judge of the Tax Court electing under subsection 
        (b)--
                    ``(A) who dies while a judge or magistrate judge of 
                the Tax Court after having rendered at least 18 months 
                of civilian service computed as prescribed in 
                subsection (n), for the last 18 months of which the 
                salary deductions provided for by subsection (c)(1) or 
                the deposits required by subsection (d) have actually 
                been made or the salary deductions required by the 
                civil service retirement laws have actually been made, 
                or
                    ``(B) who dies by assassination after having 
                rendered less than 18 months of civilian service 
                computed as prescribed in subsection (n) if, for the 
                period of such service, the salary deductions provided 
                for by subsection (c)(1) or the deposits required by 
                subsection (d) have actually been made.
            ``(3) Termination of annuity.--
                    ``(A) Surviving spouse.--The annuity payable to a 
                surviving spouse under this subsection shall be 
                terminable upon such surviving spouse's death or such 
                surviving spouse's remarriage before attaining age 55.
                    ``(B) Surviving child.--Any annuity payable to a 
                child under this subsection shall be terminable upon 
                the earliest of--
                            ``(i) the child attainment of age 18,
                            ``(ii) the child's marriage, or
                            ``(iii) the child's death,
                except that if such child is incapable of self-support 
                by reason of mental or physical disability the child's 
                annuity shall be terminable only upon death, marriage, 
                or recovery from such disability.
                    ``(C) Dependent child after death of surviving 
                spouse.--In case of the death of a surviving spouse of 
                a judge or magistrate judge of the Tax Court leaving a 
                dependent child or children of the judge or magistrate 
                judge of the Tax Court surviving such spouse, the 
                annuity of such child or children shall be recomputed 
                and paid as provided in paragraph (1)(C).
                    ``(D) Recomputation with respect to other dependent 
                children.--In any case in which the annuity of a 
                dependent child is terminated under this subsection, 
                the annuities of any remaining dependent child or 
                children based upon the service of the same judge or 
                magistrate judge of the Tax Court shall be recomputed 
                and paid as though the child whose annuity was so 
                terminated had not survived such judge.
                    ``(E) Special rule for assassinated judges.--In the 
                case of a survivor of a judge or magistrate judge of 
                the Tax Court described in paragraph (2)(B), there 
                shall be deducted from the annuities otherwise payable 
                under this section an amount equal to the amount of 
                salary deductions that would have been made if such 
                deductions had been made for 18 months prior to the 
                death of the judge or magistrate judge of the Tax 
                Court.''.
    (b) Definition of Assassination.--Section 7448(a) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(10) The terms `assassinated' and `assassination' mean 
        the killing of a judge or magistrate judge of the Tax Court 
        that is motivated by the performance by the judge or magistrate 
        judge of the Tax Court of his or her official duties.''.
    (c) Determination of Assassination.--Subsection (i) of section 7448 
of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``of Dependency and Disability.--
        Questions'' and inserting ``by Chief Judge.--
            ``(1) Dependency and disability.--Questions'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Assassination.--The chief judge shall determine 
        whether the killing of a judge or magistrate judge of the Tax 
        Court was an assassination, subject to review only by the Tax 
        Court. The head of any Federal agency that investigates the 
        killing of a judge or magistrate judge of the Tax Court shall 
        provide to the chief judge any information that would assist 
        the chief judge in making such a determination.''.
    (d) Computation of Annuities.--Subsection (m) of section 7448 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``Annuities.--The annuity'' and inserting 
        ``Annuities.--
            ``(1) In general.--The annuity'',
            (2) by striking ``the sum of (1) 1.5 percent'' and 
        inserting ``the sum of--
                    ``(A) 1.5 percent'',
            (3) by striking ``and (2) three-fourths of 1 percent'' and 
        inserting ``and
                    ``(B) three-fourths of 1 percent'',
            (4) by striking ``prior allowable service, except that'' 
        and inserting ``prior allowable service,
        ``except that'', and
            (5) by adding at the end the following new paragraph:
            ``(2) Assassinated judges and magistrate judges of the tax 
        court.--In the case of a judge or magistrate judge of the Tax 
        Court who is assassinated and who has served less than 18 
        months, the annuity of the surviving spouse of such judge or 
        magistrate judge of the Tax Court shall be based upon the 
        average annual salary received by such judge or magistrate 
        judge of the Tax Court for judicial service.''.
    (e) Other Benefits.--Section 7448 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subsection:
    ``(u) Other Benefits in Case of Assassination.--In the case of a 
judge or magistrate judge of the Tax Court who is assassinated, an 
annuity shall be paid under this section notwithstanding a survivor's 
eligibility for or receipt of benefits under chapter 81 of title 5, 
United States Code, except that the annuity for which a surviving 
spouse is eligible under this section shall be reduced to the extent 
that the total benefits paid under this section and chapter 81 of that 
title for any year would exceed the current salary for that year of the 
office of the judge or magistrate judge of the Tax Court.''.

SEC. 303. COORDINATION OF RETIREMENT AND SURVIVOR ANNUITY WITH THE 
              FEDERAL EMPLOYEES RETIREMENT SYSTEM.

    (a) Retirement.--Section 7447 of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``section 8331(8)'' in subsection (g)(2)(C) 
        and inserting ``sections 8331(8) and 8401(19)'', and
            (2) by striking ``Civil Service Commission'' both places it 
        appears in subsection (i)(2) and inserting ``Office of 
        Personnel Management''.
    (b) Annuities to Surviving Spouses and Dependent Children.--Section 
7448 of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``section 8332'' in subsection (d) and 
        inserting ``sections 8332 and 8411'', and
            (2) by striking ``section 8332'' in subsection (n) and 
        inserting ``sections 8332 and 8411''.

SEC. 304. LIMIT ON TEACHING COMPENSATION OF RETIRED JUDGES.

    (a) In General.--Section 7447 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(k) Teaching Compensation of Retired Judges.--For purposes of the 
limitation under section 501(a) of the Ethics in Government Act of 1978 
(5 U.S.C. App.), any compensation for teaching approved under section 
502(a)(5) of such Act shall not be treated as outside earned income 
when received by a judge of the United States Tax Court who has retired 
under subsection (b) for teaching performed during any calendar year 
for which such a judge has met the requirements of subsection (c), as 
certified by the chief judge.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any individual serving as a retired judge of the United States Tax 
Court on or after the date of the enactment of this Act.

SEC. 305. GENERAL PROVISIONS RELATING TO MAGISTRATE JUDGES OF THE TAX 
              COURT.

    (a) Title of Special Trial Judge Changed to Magistrate Judge of the 
Tax Court.--The heading of section 7443A of the Internal Revenue Code 
of 1986 is amended by striking ``special trial judges'' and inserting 
``magistrate judges of the tax court''.
    (b) Appointment, Tenure, and Removal.--Subsection (a) of section 
7443A of the Internal Revenue Code of 1986 is amended to read as 
follows:
    ``(a) Appointment, Tenure, and Removal.--
            ``(1) Appointment.--The chief judge may, from time to time, 
        appoint and reappoint magistrate judges of the Tax Court for a 
        term of 8 years. The magistrate judges of the Tax Court shall 
        proceed under such rules as may be promulgated by the Tax 
        Court.
            ``(2) Removal.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), removal of a magistrate judge of the 
                Tax Court during the term for which such magistrate 
                judge is appointed shall be only for incompetency, 
                misconduct, neglect of duty, or physical or mental 
                disability. Removal shall not occur unless a majority 
                of all the judges of the Tax Court concur in the order 
                of removal. Before any order of removal shall be 
                entered, a full specification of the charges shall be 
                furnished to the magistrate judge of the Tax Court, and 
                such magistrate judge shall be accorded by the judges 
                of the Tax Court an opportunity to be heard on the 
                charges.
                    ``(B) Termination of office.--The office of a 
                magistrate judge of the Tax Court shall be terminated 
                if the judges of the Tax Court determine that the 
                services performed by such magistrate judge of the Tax 
                Court are no longer needed.''.
    (c) Salary.--Subsection (d) of section 7443A of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(d) Salary.--Each magistrate judge of the Tax Court shall receive 
salary--
            ``(1) at a rate equal to 92 percent of the rate for judges 
        of the Tax Court, and
            ``(2) in the same installments as such judges.''.
    (d) Exemption From Federal Leave Provisions.--Section 7443A of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(f) Exemption From Federal Leave Provisions.--
            ``(1) In general.--A magistrate judge of the Tax Court 
        shall be exempt from the provisions of subchapter I of chapter 
        63 of title 5, United States Code.
            ``(2) Treatment of unused leave.--
                    ``(A) After service as magistrate judge of the tax 
                court.--If an individual who is exempted under 
                paragraph (1) from the subchapter referred to in such 
                paragraph was previously subject to such subchapter 
                and, without a break in service, again becomes subject 
                to such subchapter on completion of the individual's 
                service as a magistrate judge of the Tax Court, the 
                unused annual leave and sick leave standing to the 
                individual's credit at the time such individual became 
                a magistrate judge of the Tax Court is deemed to have 
                remained to the individual's credit.
                    ``(B) Computation of annuity.--In computing an 
                annuity under section 8339 or 8415 of title 5, United 
                States Code, the total service of an individual 
                specified in subparagraph (A) who retires on an 
                immediate annuity or dies leaving a survivor or 
                survivors entitled to an annuity includes, without 
                regard to the limitations imposed by subsection (f) of 
                section 8339 of such title 5, the days of unused sick 
                leave standing to the individual's credit at the time 
                such individual became a magistrate judge of the Tax 
                Court, except that such days will not be counted in 
                determining average pay or annuity eligibility.
                    ``(C) Lump sum payment.--Any accumulated and 
                current accrued annual leave or vacation balances 
                credited to a magistrate judge of the Tax Court as of 
                the date of the enactment of this subsection shall be 
                paid in a lump sum at the time of separation from 
                service pursuant to the provisions and restrictions set 
                forth in section 5551 of such title 5 and related 
                provisions referred to in such section.''.
    (e) Contempt Authority.--Section 7443A of the Internal Revenue Code 
of 1986, as amended by this section, is amended by adding at the end 
the following new subsection:
    ``(g) Incidental Powers.--A magistrate judge of the Tax Court 
appointed under this section shall have the power to punish for 
contempt of the authority of the Tax Court as provided in section 
7456(c), except the sentence imposed by such a magistrate judge of the 
Tax Court for any contempt shall not exceed the penalties for a Class C 
misdemeanor as set forth in sections 3571(b)(6) and 3581(b)(8) of title 
18, United States Code. This subsection shall not be construed to limit 
the authority of a magistrate judge of the Tax Court to order sanctions 
under any other statute or any rule of the Tax Court prescribed 
pursuant to section 7453.''.
    (f) Conforming Amendments.--
            (1) The heading of subsection (b) of section 7443A of the 
        Internal Revenue Code of 1986 is amended by striking ``Special 
        Trial Judges'' and inserting ``Magistrate Judges of the Tax 
        Court''.
            (2) Subsection (b) of section 7443A of such Code is amended 
        by striking ``special trial judges of the court'' and inserting 
        ``magistrate judges of the Tax Court''.
            (3) Subsection (c) of section 7443A of such Code is amended 
        by striking ``special trial judge'' and inserting ``magistrate 
        judge of the Tax Court''.
            (4) Subsection (e) of section 7443A of such Code is amended 
        by striking ``special trial judges'' and inserting ``magistrate 
        judges of the Tax Court''.
            (5) The item relating to section 7443A in the table of 
        sections for part I of subchapter C of chapter 76 of such Code 
        is amended to read as follows:

``Sec. 7443A. Magistrate judges of the Tax Court.''.
            (6) The heading of section 7448 of such Code is amended by 
        striking ``special trial judges''and inserting ``magistrate 
        judges of the tax court''.
            (7) Section 7448 of such Code is amended--
                    (A) by striking ``special trial judge's'' each 
                place it appears in subsections (a)(6), (c)(1), (d), 
                and (m)(1) and inserting ``magistrate judge of the Tax 
                Court's'', and
                    (B) by striking ``special trial judge'' each place 
                it appears other than in subsection (n) and inserting 
                ``magistrate judge of the Tax Court''.
            (8) Subsection (n) of section 7448 of such Code is amended 
        to read as follows:
    ``(n) Includible Service.--Subject to the provisions of subsection 
(d), the years of service of a judge or magistrate judge of the Tax 
Court which are allowable as the basis for calculating the amount of 
the annuity of such judge or magistrate judge's surviving spouse shall 
include the judge or magistrate judge's years of service--
            ``(1) as a judge or magistrate judge of the Tax Court, a 
        special trial judge of the Tax Court, or a judge of the Tax 
        Court of the United States,
            ``(2) pursuant to any appointment under section 7443A,
            ``(3) as a Senator, Representative, Delegate, or Resident 
        Commissioner in Congress,
            ``(4) as a member of the Armed Forces of the United States 
        (not including any service for which credit is allowed for 
        purposes of retirement or retired pay under any other provision 
        of law), and
            ``(5) in any other civilian service within the purview of 
        section 8332 of title 5, United States Code.
For purposes of paragraph (4), not more than 5 years of service shall 
be taken into account.''.
            (9) The item relating to section 7448 in the table of 
        sections for part I of subchapter C of chapter 76 of such Code 
        is amended to read as follows:

``Sec. 7448. Annuities to surviving spouses and dependent children of 
                            judges and magistrate judges of the Tax 
                            Court.''.
            (10) Subsection (a) of section 7456 of such Code is 
        amended--
                    (A) by striking ``special trial judge'' each place 
                it appears and inserting ``magistrate judge'', and
                    (B) by striking ``(or by the clerk'' and inserting 
                ``of the Tax Court (or by the clerk''.
            (11) Subsection (a) of section 7466 of such Code is amended 
        by striking ``special trial judge'' and inserting ``magistrate 
        judge''.
            (12) Section 7470A of such Code is amended by striking 
        ``special trial judges'' both places it appears in subsections 
        (a) and (b) and inserting ``magistrate judges''.
            (13) Subparagraph (A) of section 7471(a)(2) of such Code is 
        amended by striking ``special trial judges'' and inserting 
        ``magistrate judges''.
            (14) Subsection (c) of section 7471 of such Code is 
        amended--
                    (A) by striking ``Special Trial Judges'' in the 
                heading and inserting ``Magistrate Judges of the Tax 
                Court'', and
                    (B) by striking ``special trial judges'' and 
                inserting ``magistrate judges''.
    (g) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to individuals serving as special trial judges of the 
        United States Tax Court on or after the day before the date of 
        enactment of this Act.
            (2) Appointment savings provision.--Any individual serving 
        as a special trial judge of the United States Tax Court as of 
        the day before the date of the enactment of this Act shall be 
        considered to have been appointed as a magistrate judge of the 
        Tax Court under section 7443A of the Internal Revenue Code of 
        1986 on such date of enactment, and service as a special trial 
        judge of the Tax Court before such date of enactment shall be 
        considered to be service as a magistrate judge of the Tax Court 
        for purposes of any provision of law relating to length of 
        service.

SEC. 306. LIFE INSURANCE FOR MAGISTRATE JUDGES OF THE TAX COURT AGE 65 
              OR OLDER.

    Section 7472 of the Internal Revenue Code of 1986 is amended by 
striking ``its judges'' in the second sentence and inserting ``the 
judges and magistrate judges of the Tax Court''.

SEC. 307. RETIREMENT AND ANNUITY PROGRAM.

    (a) Retirement and Annuity Program.--Part I of subchapter C of 
chapter 76 of the Internal Revenue Code of 1986 is amended by inserting 
after section 7443A the following new section:

``SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF THE TAX COURT.

    ``(a) Retirement.--
            ``(1) In general.--Each magistrate judge of the Tax Court 
        who makes an election under this section shall receive an 
        annuity at the same rate and in the same manner as magistrate 
        judges of the district courts of the United States pursuant to 
        section 377 of title 28, United States Code.
            ``(2) Rules of application.--For purposes of subsection 
        (a), section 377 of title 28, United States Code, shall be 
        applied with the following modifications:
                    ``(A) By substituting--
                            ``(i) `magistrate judge of the Tax Court' 
                        for `judicial official', `judicial officer', 
                        and `magistrate judge' each place such terms 
                        appear,
                            ``(ii) `magistrate judge of the Tax 
                        Court's' for `magistrate judge's' each place it 
                        appears,
                            ``(iii) `chief judge of the Tax Court' for 
                        `Administrative Office of the United States 
                        Courts', `Director of the Administrative Office 
                        of the United States Courts', `Director', and 
                        `chief judge of the district court' each place 
                        such terms appear,
                            ``(iv) `Tax Court Judicial Officers' 
                        Retirement Fund' for `Judicial Officers' 
                        Retirement Fund' each place it appears,
                            ``(v) `under section 7443A of the Internal 
                        Revenue Code of 1986' for `under section 631 of 
                        this title' in subsection (h)(2),
                            ``(vi) `under section 7443C of the Internal 
                        Revenue Code of 1986' for `under section 
                        155(b), 375, or 636(h) of this title' each 
                        place it appears in paragraphs (2) and (3) of 
                        subsection (m), and
                            ``(vii) `from the date of appointment, for 
                        those individuals appointed pursuant to section 
                        7443A of the Internal Revenue Code of 1986 
                        prior to, and in active service on, the date of 
                        enactment of the Retirement Enhancement and 
                        Savings Act of 2019' for `on or after October 
                        1, 1979' in subsection (h).
                    ``(B) By disregarding subsection (m)(2) and 
                subsection (o).
    ``(b) 1-Year Forfeiture for Failure To Perform Judicial Duties.--
Subject to subparagraph (B) of section 377(m)(1) of title 28, United 
States Code, any magistrate judge of the Tax Court who retires under 
this section and who fails to perform judicial duties required of such 
individual by section 7443C shall forfeit all rights to an annuity 
under this section for a 1-year period which begins on the first day on 
which such individual fails to perform such duties.
    ``(c) Tax Court Judicial Officers' Retirement Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund which shall be known as the `Tax 
        Court Judicial Officers' Retirement Fund'. The Fund is 
        appropriated for the payment of annuities, refunds, and other 
        payments under this section.
            ``(2) Investment of fund.--The Secretary shall invest, in 
        interest-bearing securities of the United States, such 
        currently available portions of the Tax Court Judicial 
        Officers' Retirement Fund as are not immediately required for 
        payments from the Fund. The income derived from these 
        investments constitutes a part of the Fund.
            ``(3) Unfunded liability.--
                    ``(A) In general.--Not later than the close of each 
                fiscal year, there shall be deposited in the Tax Court 
                Judicial Officers' Retirement Fund amounts required to 
                reduce to zero the unfunded liability, if any, of such 
                Fund.
                    ``(B) Unfunded liability.--For purposes of 
                subparagraph (A), the term `unfunded liability' means 
                the amount estimated by the Secretary to be equal to 
                the excess (as of the close of the fiscal year 
                involved) of--
                            ``(i) the present value of all benefits 
                        payable from the Tax Court Judicial Officers' 
                        Retirement Fund, over
                            ``(ii) the sum of--
                                    ``(I) the present value of future 
                                deductions to be withheld under this 
                                section from the basic pay of 
                                magistrate judges of the Tax Court, 
                                plus
                                    ``(II) the balance in such Fund as 
                                of the close of such fiscal year.
    ``(d) Participation in Thrift Savings Plan.--
            ``(1) Election to contribute.--A magistrate judge of the 
        Tax Court may elect to contribute out of such individual's 
        basic pay to the Thrift Savings Fund established by section 
        8437 of title 5, United States Code.
            ``(2) Applicability of title 5 provisions.--Except as 
        otherwise provided in this subsection, the provisions of 
        subchapters III and VII of chapter 84 of such title 5 shall 
        apply with respect to a magistrate judge of the Tax Court who 
        makes an election under paragraph (1).
            ``(3) Special rules.--
                    ``(A) Amount contributed.--The amount contributed 
                by a magistrate judge of the Tax Court to the Thrift 
                Savings Plan in any pay period shall not exceed the 
                maximum percentage of such magistrate judge's basic pay 
                for such period as allowable under section 8440f of 
                such title 5.
                    ``(B) Contributions for benefit of magistrate judge 
                of the tax court.--No contributions under section 
                8432(c) of such title 5 shall be made for the benefit 
                of a magistrate judge of the Tax Court who has filed an 
                election to receive an annuity under this section.
                    ``(C) Applicability of rules relating to annuity of 
                a child.--Section 8433(b) of such title 5 applies with 
                respect to a magistrate judge of the Tax Court who 
                makes an election under paragraph (1) and who--
                            ``(i) retires entitled to an immediate 
                        annuity under this section (including a 
                        disability annuity under this section),
                            ``(ii) retires before attaining age 65 but 
                        is entitled, upon attaining age 65, to an 
                        annuity under this section, or
                            ``(iii) retires before becoming entitled to 
                        an immediate annuity, or an annuity upon 
                        attaining age 65, under this section.
                    ``(D) Retirement as separation from service.--With 
                respect to a magistrate judge of the Tax Court to whom 
                this subsection applies, retirement under this section 
                is a separation from service for purposes of 
                subchapters III and VII of chapter 84 of such title 5.
            ``(4) Definitions.--For purposes of this subsection, the 
        terms `retirement' and `retire' include removal from office 
        under section 7443A(a)(2) on the sole ground of mental or 
        physical disability.
            ``(5) Offset.--In the case of a magistrate judge of the Tax 
        Court who receives a distribution from the Thrift Savings Plan 
        and who later receives an annuity under this section, the 
        annuity shall be offset by an amount equal to the amount which 
        represents the Government's contribution to the individual's 
        Thrift Savings Account during years of service as a full-time 
        judicial officer under the Federal Employees Retirement System, 
        without regard to earnings attributable to such amount. Where 
        such an offset would exceed 50 percent of the annuity to be 
        received in the first year, the offset may be divided equally 
        over the first 2 years in which the individual receives the 
        annuity.
            ``(6) Exception.--Notwithstanding clauses (i) and (ii) of 
        paragraph (3)(C), if any magistrate judge of the Tax Court 
        retires under circumstances making such magistrate judge of the 
        Tax Court eligible to make an election under subsection (b) of 
        section 8433 of such title 5, and the nonforfeitable account 
        balance of such magistrate judge of the Tax Court is less than 
        an amount which the Executive Director of the Office of 
        Personnel Management prescribes by regulation, the Executive 
        Director shall pay the nonforfeitable account balance to the 
        participant in a single payment.
    ``(e) Coordination With Title 5.--A magistrate judge of the Tax 
Court who elects to receive an annuity under this section--
            ``(1) shall not be subject to deductions and contributions 
        otherwise required by section 8334(a) of title 5 United States 
        Code,
            ``(2) shall be excluded from the application of chapter 84 
        (other than subchapters III and VII) of such title 5, and
            ``(3) is entitled to a lump-sum credit under section 
        8342(a) or 8424 of such title 5, as the case may be.''.
    (b) Conforming Amendments.--
            (1) Section 3121(b)(5)(E) of the Internal Revenue Code of 
        1986 is amended by inserting ``or magistrate judge'' before 
        ``of the United States Tax Court''.
            (2) Section 210(a)(5)(E) of the Social Security Act (42 
        U.S.C. 410(a)(5)(E)) is amended by inserting ``or a magistrate 
        judge of the Tax Court who files an election under section 
        7443B(a) of the Internal Revenue Code of 1986'' after ``of the 
        United States Tax Court''.
            (3) Section 7448(b)(2) of the Internal Revenue Code of 1986 
        is amended to read as follows:
            ``(2) Magistrate judges of the tax court.--Any magistrate 
        judge of the Tax Court may by written election filed with the 
        chief judge bring himself or herself within the purview of this 
        section. Such election shall be filed while such individual is 
        a magistrate judge of the Tax Court.''.
    (c) Clerical Amendment.--The table of sections for part I of 
subchapter C of chapter 76 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 7443A the 
following new item:

``Sec. 7443B. Retirement for magistrate judges of the Tax Court.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 308. PROVISIONS FOR RECALL.

    (a) In General.--Part I of subchapter C of chapter 76 of the 
Internal Revenue Code of 1986, as amended by section 307, is amended by 
inserting after section 7443B the following new section:

``SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX COURT.

    ``(a) Recalling of Retired Magistrate Judges of the Tax Court.--Any 
individual who has retired pursuant to section 7443B or the applicable 
provisions of title 5 or 28, United States Code, upon reaching the age 
and service requirements established under such titles 5 and 28, may be 
called upon by the chief judge to perform such judicial duties with the 
Tax Court as may be requested of such individual for a period or 
periods specified by the chief judge, except that in the case of any 
such individual--
            ``(1) the aggregate of such periods in any 1 calendar year 
        shall not (without the consent of such individual) exceed 90 
        calendar days, and
            ``(2) such individual shall be relieved of performing such 
        duties during any period in which illness or disability 
        precludes the performance of such duties.
Any act, or failure to act, by an individual performing judicial duties 
pursuant to this subsection shall have the same force and effect as if 
it were the act (or failure to act) of a magistrate judge of the Tax 
Court.
    ``(b) Compensation.--For the year in which a period of recall 
occurs, the magistrate judge of the Tax Court shall receive, in 
addition to the annuity provided under the provisions of section 7443B, 
an amount equal to the difference between that annuity and the current 
salary of the office to which the magistrate judge of the Tax Court is 
recalled (and allowances for travel and other expenses of the 
magistrate judge of the Tax Court). The annuity for years after the 
year in which a period of recall occurs of the magistrate judge of the 
Tax Court who completes such a period of service, who is not recalled 
in a subsequent year, and who retired under section 7443B, shall be 
equal to the salary in effect at the end of the year in which the 
period of recall occurred for the office from which such magistrate 
judge of the Tax Court retired.
    ``(c) Rulemaking Authority.--The provisions of this section shall 
be implemented under such rules and regulations as may be promulgated 
by the Tax Court.''.
    (b) Clerical Amendment.--The table of sections for part I of 
subchapter C of chapter 76 of the Internal Revenue Code of 1986, as 
amended by section 307, is amended by inserting after the item relating 
to section 7443B the following new item:

``Sec. 7443C. Recall of magistrate judges of the Tax Court.''.

                        TITLE IV--OTHER BENEFITS

SEC. 401. BENEFITS PROVIDED TO VOLUNTEER FIREFIGHTERS AND EMERGENCY 
              MEDICAL RESPONDERS.

    (a) Increase in Dollar Limitation on Qualified Payments.--
Subparagraph (B) of section 139B(c)(2) of the Internal Revenue Code of 
1986 is amended by striking ``$30'' and inserting ``$50''.
    (b) Extension.--Subsection (d) of section 139B of the Internal 
Revenue Code of 1986 is amended by striking ``beginning after December 
31, 2010.'' and inserting ``beginning--
            ``(1) after December 31, 2010, and before January 1, 2020, 
        or
            ``(2) after December 31, 2020.''.
    (c) Technical Correction.--Section 139B(b)(1) of the Internal 
Revenue Code of 1986 is amended by inserting ``section'' before 
``164''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

                      TITLE V--REVENUE PROVISIONS

SEC. 501. MODIFICATIONS OF REQUIRED DISTRIBUTION RULES FOR DEFINED 
              CONTRIBUTION ACCOUNTS AND PLANS.

    (a) Modification of Rules Where Employee Dies Before Entire 
Distribution.--
            (1) In general.--Section 401(a)(9) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        subparagraph:
                    ``(H) Special rules for certain defined 
                contribution plans.--
                            ``(i) In general.--In the case of 
                        distributions from a defined contribution plan, 
                        a trust forming part of such plan shall not 
                        constitute a qualified trust under this section 
                        unless the plan provides that, if an employee 
                        dies before the distribution of the employee's 
                        interest (whether or not such distribution has 
                        begun in accordance with subparagraph (A)), so 
                        much of the entire interest of any designated 
                        beneficiary of the employee as exceeds $400,000 
                        (as of the date of the death of the employee) 
                        will be distributed within 5 years after the 
                        death of such employee.
                            ``(ii) Annual allocation of limitation.--If 
                        a person is a designated beneficiary under more 
                        than 1 defined contribution plan during any 
                        calendar year, the limitation under clause 
                        (i)--
                                    ``(I) shall only apply with respect 
                                to interests acquired by such 
                                beneficiary during the calendar year by 
                                reason of the death of another 
                                individual,
                                    ``(II) shall be applied by 
                                aggregating each such interest as of 
                                the date of the death of the individual 
                                who designated such beneficiary, and
                                    ``(III) shall be allocated among 
                                each such interest on a pro rata basis 
                                determined by the relative size of each 
                                such plan or account, or as otherwise 
                                provided in regulations prescribed by 
                                the Secretary.
                            ``(iii) Treatment of remaining amount.--The 
                        method of distribution and period of time over 
                        which any portion of the interest of the 
                        designated beneficiary to which clause (i) does 
                        not apply is distributed shall be determined 
                        without regard to the portion of the designated 
                        beneficiary's interest distributed under clause 
                        (i).
                            ``(iv) Exception for eligible designated 
                        beneficiaries.--If--
                                    ``(I) any portion of the employee's 
                                interest is payable to (or for the 
                                benefit of) an eligible designated 
                                beneficiary,
                                    ``(II) such portion will be 
                                distributed (in accordance with 
                                regulations) over the life of such 
                                eligible designated beneficiary (or 
                                over a period not extending beyond the 
                                life expectancy of such beneficiary), 
                                and
                                    ``(III) such distributions begin 
                                not later than 1 year after the date of 
                                the employee's death or such later date 
                                as the Secretary may by regulations 
                                prescribe,
                        for purposes of clause (i), the portion 
                        referred to in subclause (I) shall be treated 
                        as distributed on the date on which such 
                        distributions begin.
                            ``(v) Special rule for surviving spouse of 
                        employee.--If the eligible designated 
                        beneficiary is the surviving spouse of the 
                        employee--
                                    ``(I) the date on which the 
                                distributions are required to begin 
                                under clause (iv)(III) shall not be 
                                earlier than the date on which the 
                                employee would have attained age 70\1/
                                2\, and
                                    ``(II) if the surviving spouse dies 
                                before the distributions to such spouse 
                                begin, this subparagraph shall be 
                                applied as if the surviving spouse were 
                                the employee.
                            ``(vi) Rules upon death of eligible 
                        designated beneficiary.--If an eligible 
                        designated beneficiary dies before the portion 
                        of the employee's interest to which clause (i) 
                        applies which is payable to (or for the benefit 
                        of) such eligible designated beneficiary is 
                        entirely distributed, the exception under 
                        clause (iv) shall not apply to any beneficiary 
                        of such eligible designated beneficiary and the 
                        remainder of such portion shall be distributed 
                        within 5 years after the death of such eligible 
                        designated beneficiary.
                            ``(vii) Safe harbor for plan administrator 
                        reliance on designated beneficiary 
                        certification.--A defined contribution plan 
                        shall not be treated as failing to meet the 
                        requirements of this paragraph in the case of 
                        any failure to make a required minimum 
                        distribution for a calendar year if--
                                    ``(I) the aggregate value of a 
                                designated beneficiary's entire 
                                interest acquired by such beneficiary 
                                during the calendar year under all such 
                                plans of the employer by reason of the 
                                death of the employee does not exceed 
                                the dollar amount in effect for such 
                                year under clause (i), and
                                    ``(II) the designated beneficiary 
                                certifies, within 1 year after the 
                                death of the employee from whom the 
                                beneficiary acquired the interest, that 
                                the aggregate value of the designated 
                                beneficiary's entire interest acquired 
                                by such beneficiary during the calendar 
                                year under all defined contribution 
                                plans by reason of the death of another 
                                individual does not exceed the dollar 
                                amount in effect for such year under 
                                clause (i).
                        For purposes of this clause, the value of any 
                        interest shall be determined as of the date of 
                        the death of the individual from whom the 
                        beneficiary acquired such interest, and all 
                        employers treated as a single employer under 
                        subsection (b), (c), (m), or (o) of section 414 
                        shall be treated as a single employer.
                            ``(viii) Application to eligible retirement 
                        plans.--For purposes of applying the provisions 
                        of this subparagraph and subsections (a)(6) and 
                        (b)(3) of section 408, all eligible retirement 
                        plans (as defined in section 402(c)(8)(B)) 
                        other than defined benefit plans shall be 
                        treated as defined contribution plans in 
                        determining the aggregate account balances to 
                        the credit of the designated beneficiary under 
                        all defined contribution plans and the amount 
                        required to be distributed to each beneficiary 
                        under such provisions.
                            ``(ix) Adjustment for inflation.--In the 
                        case of any taxable year beginning after 2020, 
                        the $400,000 amount in clause (i) shall be 
                        increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2019' for 
                                `calendar year 2016' in subparagraph 
                                (A)(ii) thereof.
                        If any amount as adjusted under the preceding 
                        sentence is not a multiple of $500, such amount 
                        shall be rounded to the next lowest multiple of 
                        $500.''.
            (2) Definition of eligible designated beneficiary.--Section 
        401(a)(9)(E) of such Code is amended to read as follows:
                    ``(E) Definitions and rules relating to designated 
                beneficiary.--For purposes of this paragraph--
                            ``(i) Designated beneficiary.--The term 
                        `designated beneficiary' means any individual 
                        designated as a beneficiary by the employee.
                            ``(ii) Eligible designated beneficiary.--
                        The term `eligible designated beneficiary' 
                        means, with respect to any employee, any 
                        designated beneficiary who is--
                                    ``(I) the surviving spouse of the 
                                employee,
                                    ``(II) subject to clause (iii), a 
                                child of the employee who has not 
                                reached majority (within the meaning of 
                                subparagraph (F)),
                                    ``(III) disabled (within the 
                                meaning of section 72(m)(7)),
                                    ``(IV) a chronically ill individual 
                                (within the meaning of section 
                                7702B(c)(2), except that the 
                                requirements of subparagraph (A)(i) 
                                thereof shall only be treated as met if 
                                there is a certification that, as of 
                                such date, the period of inability 
                                described in such subparagraph with 
                                respect to the individual is an 
                                indefinite one which is reasonably 
                                expected to be lengthy in nature), or
                                    ``(V) an individual not described 
                                in any of the preceding subclauses who 
                                is not more than 10 years younger than 
                                the employee.
                            ``(iii) Special rule for children.--Subject 
                        to subparagraph (F), an individual described in 
                        clause (ii)(II) shall cease to be an eligible 
                        designated beneficiary as of the date the 
                        individual reaches majority and any remainder 
                        of the portion of the interest described in 
                        subparagraph (H)(iv) which exceeds the amount 
                        in effect under subparagraph (H)(i) as of such 
                        date shall be distributed within 5 years after 
                        such date.
                            ``(iv) Time for determination of eligible 
                        designated beneficiary.--The determination of 
                        whether a designated beneficiary is an eligible 
                        designated beneficiary shall be made as of the 
                        date of death of the employee.''.
            (3) Conforming amendments.--
                    (A) Clause (ii) of section 401(a)(9)(B) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``A trust'' and inserting ``Except as provided in 
                subparagraph (H), a trust''.
                    (B) Section 402(c)(11)(A)(iii) of such Code is 
                amended by striking ``section 401(a)(9)(B) (other than 
                clause (iv) thereof)'' and inserting ``subparagraphs 
                (B) (other than clause (iv) thereof) and (H) (other 
                than clause (v) thereof) of section 401(a)(9)''.
            (4) Effective dates.--
                    (A) In general.--Except as provided in this 
                paragraph and paragraphs (5) and (6), the amendments 
                made by this subsection shall apply to distributions 
                with respect to employees who die after December 31, 
                2019.
                    (B) Collective bargaining exception.--In the case 
                of a plan maintained pursuant to one or more collective 
                bargaining agreements between employee representatives 
                and one or more employers ratified before the date of 
                the enactment of this Act, the amendments made by this 
                subsection shall apply to distributions with respect to 
                employees who die in calendar years beginning after the 
                earlier of--
                            (i) the later of--
                                    (I) the date on which the last of 
                                such collective bargaining agreements 
                                terminates (determined without regard 
                                to any extension thereof agreed to on 
                                or after the date of the enactment of 
                                this Act), or
                                    (II) December 31, 2019, or
                            (ii) December 31, 2021.
                For purposes of clause (i)(I), any plan amendment made 
                pursuant to a collective bargaining agreement relating 
                to the plan which amends the plan solely to conform to 
                any requirement added by this section shall not be 
                treated as a termination of such collective bargaining 
                agreement.
                    (C) Governmental plans.--In the case of a 
                governmental plan (as defined in section 414(d) of the 
                Internal Revenue Code of 1986), subparagraph (A) shall 
                be applied by substituting ``December 31, 2021'' for 
                ``December 31, 2019''.
            (5) Exception for certain existing annuity contracts.--
                    (A) In general.--The amendments made by this 
                subsection shall not apply to a qualified annuity which 
                is a binding annuity contract in effect on the date of 
                enactment of this Act and at all times thereafter.
                    (B) Qualified annuity.--For purposes of this 
                paragraph, the term ``qualified annuity'' means, with 
                respect to an employee, an annuity--
                            (i) which is a commercial annuity (as 
                        defined in section 3405(e)(6) of the Internal 
                        Revenue Code of 1986),
                            (ii) under which the annuity payments are 
                        made over the life of the employee or over the 
                        joint lives of such employee and a designated 
                        beneficiary (or over a period not extending 
                        beyond the life expectancy of such employee or 
                        the joint life expectancy of such employee and 
                        a designated beneficiary) in accordance with 
                        the regulations described in section 
                        401(a)(9)(A)(ii) of such Code (as in effect 
                        before such amendments) and which meets the 
                        other requirements of section 401(a)(9) of such 
                        Code (as so in effect) with respect to such 
                        payments, and
                            (iii) with respect to which--
                                    (I) annuity payments to the 
                                employee have begun before the date of 
                                the enactment of this Act, and the 
                                employee has made an irrevocable 
                                election before such date as to the 
                                method and amount of the annuity 
                                payments to the employee or any 
                                designated beneficiaries, or
                                    (II) if subclause (I) does not 
                                apply, the employee has made an 
                                irrevocable election before the date of 
                                the enactment of this Act as to the 
                                method and amount of the annuity 
                                payments to the employee or any 
                                designated beneficiaries.
            (6) Exception for certain beneficiaries.--
                    (A) In general.--If an employee dies before the 
                effective date, then, in applying the amendments made 
                by this subsection to such employee's designated 
                beneficiary who dies after such date--
                            (i) such amendments shall apply to any 
                        beneficiary of such designated beneficiary, and
                            (ii) the designated beneficiary shall be 
                        treated as an eligible designated beneficiary 
                        for purposes of applying section 
                        401(a)(9)(H)(iv) of the Internal Revenue Code 
                        of 1986 (as in effect after such amendments).
                    (B) Effective date.--For purposes of this 
                paragraph, the term ``effective date'' means the first 
                day of the first calendar year to which the amendments 
                made by this subsection apply to a plan with respect to 
                employees dying on or after such date.
    (b) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any plan 
        amendment--
                    (A) such plan shall be treated as being operated in 
                accordance with the terms of the plan during the period 
                described in paragraph (2)(B)(i), and
                    (B) except as provided by the Secretary of the 
                Treasury (or such Secretary's delegate), such plan 
                shall not fail to meet the requirements of section 
                411(d)(6) of the Internal Revenue Code of 1986 and 
                section 204(g) of the Employee Retirement Income 
                Security Act of 1974 by reason of such amendment.
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan which is made--
                            (i) pursuant to any amendment made by this 
                        section or pursuant to any regulation issued by 
                        the Secretary of the Treasury (or delegate) 
                        under this section or such amendments, and
                            (ii) on or before the last day of the first 
                        plan year beginning after December 31, 2021, or 
                        such later date as the Secretary of the 
                        Treasury (or delegate) may prescribe.
                In the case of a governmental or collectively bargained 
                plan to which subparagraph (B) or (C) of subsection 
                (a)(4) applies, clause (ii) shall be applied by 
                substituting the date which is 2 years after the date 
                otherwise applied under such clause.
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) during the period--
                                    (I) beginning on the date the 
                                legislative or regulatory amendment 
                                described in subparagraph (A)(i) takes 
                                effect (or in the case of a plan 
                                amendment not required by such 
                                legislative or regulatory amendment, 
                                the effective date specified by the 
                                plan), and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan amendment is 
                                adopted),
                        the plan is operated as if such plan amendment 
                        were in effect; and
                            (ii) such plan amendment applies 
                        retroactively for such period.
    (c) Plan Administrator Reporting.--
            (1) In general.--Section 6047 of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (h) as 
        subsection (i) and by inserting after subsection (g) the 
        following new subsection:
    ``(h) Account Balance for Designated Beneficiaries of Deceased 
Participants.--
            ``(1) In general.--Not later than January 31 of each year, 
        the plan administrator (as defined in section 414(g)) of each 
        eligible retirement plan (as defined in section 402(c)(8)(B)) 
        other than a defined benefit plan shall make a return to the 
        Secretary with respect to each designated beneficiary of a 
        deceased participant of such plan. Such return shall state the 
        following:
                    ``(A) the name and plan number of the plan,
                    ``(B) the name and address of the plan 
                administrator,
                    ``(C) the name, address, and taxpayer 
                identification number of the designated beneficiary,
                    ``(D) the account balance (or portion of the 
                interest therein) of such designated beneficiary as of 
                the end of such preceding calendar year (and in the 
                case such preceding year is the year of the death of 
                the participant, as of the date of such death), and
                    ``(E) the amount of the account balance (or portion 
                of the interest therein) described in subparagraph (D) 
                which is attributable to the portion of the account 
                balance which did not exceed the amount in effect under 
                section 401(a)(9)(H)(i) as of the date of such death, 
                and the amount of such account balance (or portion of 
                the interest therein), if any, which is attributable to 
                the portion of the account balance which exceeded such 
                amount as of the date of such death.
            ``(2) Statement furnished to designated beneficiary.--Every 
        person required to make a return under paragraph (1) with 
        respect to a designated beneficiary shall furnish a copy of 
        such return to such designated beneficiary.
            ``(3) Application to individual retirement plans and 
        annuities.--In the case of an eligible retirement plan 
        described in clause (i) or (ii) of section 402(c)(8)(B)--
                    ``(A) any reference in this subsection to the plan 
                administrator shall be treated as a reference to the 
                trustee or issuer, as the case may be, and
                    ``(B) any reference in this subsection to the 
                participant shall be treated as a reference to the 
                individual for whom such account or annuity is 
                maintained.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to calendar years beginning after December 31, 
        2020, with respect to designated beneficiaries of participants 
        whose date of death is after December 31, 2019.

SEC. 502. INCREASE IN PENALTY FOR FAILURE TO FILE.

    (a) In General.--The second sentence of subsection (a) of section 
6651 of the Internal Revenue Code of 1986 is amended by striking 
``$205'' and inserting ``$400''.
    (b) Adjustment for Inflation.--Paragraph (1) of section 6651(j) of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$205'' and inserting ``$400'',
            (2) by striking ``2014'' and inserting ``2020'', and
            (3) by striking ``calendar year 2013'' and inserting 
        ``calendar year 2019''.
    (c) Effective Date.--The amendment made by this section shall apply 
to returns the due date for which (including extensions) is after 
December 31, 2019.

SEC. 503. INCREASED PENALTIES FOR FAILURE TO FILE RETIREMENT PLAN 
              RETURNS.

    (a) In General.--Subsection (e) of section 6652 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``$25'' and inserting ``$100'', and
            (2) by striking ``$15,000'' and inserting ``$50,000''.
    (b) Annual Registration Statement and Notification of Changes.--
Subsection (d) of section 6652 of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``$1'' both places it appears in paragraphs 
        (1) and (2) and inserting ``$2'',
            (2) by striking ``$5,000'' in paragraph (1) and inserting 
        ``$10,000'', and
            (3) by striking ``$1,000'' in paragraph (2) and inserting 
        ``$5,000''.
    (c) Failure To Provide Notice.--Subsection (h) of section 6652 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$10'' and inserting ``$100'', and
            (2) by striking ``$5,000'' and inserting ``$50,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to returns, statements, and notifications required to be filed, 
and notices required to be provided, after December 31, 2019.

SEC. 504. INCREASE INFORMATION SHARING TO ADMINISTER EXCISE TAXES.

    (a) In General.--Section 6103(o) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(3) Taxes imposed by section 4481.--Returns and return 
        information with respect to taxes imposed by section 4481 shall 
        be open to inspection by or disclosure to officers and 
        employees of United States Customs and Border Protection of the 
        Department of Homeland Security whose official duties require 
        such inspection or disclosure for purposes of administering 
        such section.''.
    (b) Conforming Amendments.--Paragraph (4) of section 6103(p) of the 
Internal Revenue Code of 1986 is amended by striking ``or (o)(1)(A)'' 
each place it appears and inserting ``, (o)(1)(A), or (o)(3)''.
                                 <all>