Title: A bill to waive required minimum distribution rules for retirement plans in 2020.
Policy area: Labor and Employment

Summary:
This bill waives required minimum distributions from certain tax-exempt retirement plans for calendar year 2020.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3527 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3527

 To waive required minimum distribution rules for retirement plans in 
                                 2020.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2020

  Mr. Markey (for himself, Mr. Durbin, and Mr. Daines) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To waive required minimum distribution rules for retirement plans in 
                                 2020.

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

SECTION 1. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR 
              CERTAIN RETIREMENT PLANS AND ACCOUNTS.

    (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(I) Temporary waiver of minimum required 
                distribution.--
                            ``(i) In general.--The requirements of this 
                        paragraph shall not apply for calendar year 
                        2020 to--
                                    ``(I) a defined contribution plan 
                                which is described in this subsection 
                                or in section 403(a) or 403(b),
                                    ``(II) a defined contribution plan 
                                which is an eligible deferred 
                                compensation plan described in section 
                                457(b) but only if such plan is 
                                maintained by an employer described in 
                                section 457(e)(1)(A), or
                                    ``(III) an individual retirement 
                                plan.
                            ``(ii) Special rules regarding waiver 
                        period.--For purposes of this paragraph--
                                    ``(I) the required beginning date 
                                with respect to any individual shall be 
                                determined without regard to this 
                                subparagraph for purposes of applying 
                                this paragraph for calendar years after 
                                2020, and
                                    ``(II) if clause (ii) of 
                                subparagraph (B) applies, the 5-year 
                                period described in such clause shall 
                                be determined without regard to 
                                calendar year 2020.''.
    (b) Eligible Rollover Distributions.--Section 402(c)(4) of the 
Internal Revenue Code of 1986 (defining eligible rollover distribution) 
is amended by adding at the end the following new flush sentence:
        ``If all or any portion of a distribution during 2020 is 
        treated as an eligible rollover distribution but would not be 
        so treated if the minimum distribution requirements under 
        section 401(a)(9) had applied during 2020, such distribution 
        shall not be treated as an eligible rollover distribution for 
        purposes of section 401(a)(31) or 3405(c) or subsection (f) of 
        this section.''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply for calendar years beginning after December 31, 2019.
            (2) Provisions relating to plan or contract amendments.--
                    (A) In general.--If this paragraph applies to any 
                pension plan or contract amendment, such pension plan 
                or contract shall not fail to be treated as being 
                operated in accordance with the terms of the plan 
                during the period described in subparagraph (B)(ii) 
                solely because the plan operates in accordance with 
                this section.
                    (B) Amendments to which paragraph applies.--
                            (i) In general.--This paragraph shall apply 
                        to any amendment to any pension plan or annuity 
                        contract which--
                                    (I) is made pursuant to the 
                                amendments made by this section, and
                                    (II) is made on or before the last 
                                day of the first plan year beginning on 
                                or after January 1, 2022.
                        In the case of a governmental plan, subclause 
                        (II) shall be applied by substituting ``2023'' 
                        for ``2022''.
                            (ii) Conditions.--This paragraph shall not 
                        apply to any amendment unless during the period 
                        beginning on the effective date of the 
                        amendment and ending on December 31, 2020, the 
                        plan or contract is operated as if such plan or 
                        contract amendment were in effect.
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