Title: A bill to amend the Internal Revenue Code of 1986 to terminate required minimum distributions under tax-favored retirement plans.
Policy area: Taxation

Summary:
This bill terminates required minimum distributions from tax-exempt retirement plans after 2019.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3557 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3557

   To amend the Internal Revenue Code of 1986 to terminate required 
       minimum distributions under tax-favored retirement plans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 21, 2020

   Mr. Paul 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 terminate required 
       minimum distributions under tax-favored retirement plans.

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

SECTION 1. TERMINATION OF REQUIRED MINIMUM DISTRIBUTION RULES.

    (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(I) Termination of minimum required 
                distribution.--The requirements of this paragraph shall 
                not apply for any calendar year after 2019.''.
    (b) Eligible Rollover Distributions.--The last sentence of section 
402(c)(4) of the Internal Revenue Code of 1986 is amended to read as 
follows: ``If all or any portion of a distribution after December 31, 
2019, is treated as an eligible rollover distribution but would not be 
so treated if the minimum distribution requirements under section 
401(a)(9) had applied during the year of the distribution, such 
distribution shall not be treated as an eligible rollover distribution 
for purposes of section 401(a)(31) or 3405(c) or subsection (f) of this 
section.''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply for calendar years beginning after December 31, 2019.
            (2) Provisions relating to plan or contract amendments.--
                    (A) In general.--If this paragraph applies to any 
                pension plan or contract amendment, such pension plan 
                or contract shall not fail to be treated as being 
                operated in accordance with the terms of the plan 
                during the period described in subparagraph (B)(ii) 
                solely because the plan operates in accordance with 
                this section.
                    (B) Amendments to which paragraph applies.--
                            (i) In general.--This paragraph shall apply 
                        to any amendment to any pension plan or annuity 
                        contract which--
                                    (I) is made pursuant to the 
                                amendments made by this section, and
                                    (II) is made on or before the last 
                                day of the first plan year beginning on 
                                or after January 1, 2022.
                        In the case of a governmental plan, subclause 
                        (II) shall be applied by substituting ``2023'' 
                        for ``2022''.
                            (ii) Conditions.--This paragraph shall not 
                        apply to any amendment unless during the period 
                        beginning on the effective date of the 
                        amendment and ending on December 31, 2020, the 
                        plan or contract is operated as if such plan or 
                        contract amendment were in effect.
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