113 S1270 IS: Secure Annuities for Employee Retirement Act of 2013
U.S. Senate
2013-07-09
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; amendment of
1986 Code; table of contents
(a)This Act may be cited as the Secure Annuities for Employee Retirement Act of
2013
or the SAFE
Retirement Act of 2013
.
(b)Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
(c)The table of contents is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of
contents.
TITLE I—Public pension reform
Sec. 101. Annuity accumulation retirement plans of employees of
State and local governments.
Sec. 102. Study of Federal pension systems.
TITLE II—Private pension reform
Subtitle A—Enhanced pension plan coverage
Sec. 201. Starter 401(k) plans for employers with no retirement
plan.
Sec. 202. Increase in credit limitation for small employer
pension plan startup costs.
Sec. 203. Employers allowed to replace simple retirement
accounts with safe harbor 401(k) plans during a year.
Sec. 204. Modification of automatic enrollment safe
harbor.
Sec. 205. Plan adopted by filing due date for year may be
treated as in effect as of close of year.
Sec. 206. Rules relating to election of safe harbor 401(k)
status.
Sec. 207. Modifications of rules relating to multiple employer
defined contribution plans.
Subtitle B—Pension plan and retirement savings
simplification
Sec. 211. Modifications of deadlines for adopting pension plan
amendments.
Sec. 212. Termination of application of top-heavy plan
rules.
Sec. 213. Amendments to safe harbor 401(k) plans during plan
year.
Sec. 214. Modification of rules relating to hardship
withdrawals from cash or deferred arrangements.
Sec. 215. Individual may roll over insurance contract into
individual retirement account.
Sec. 216. Forfeitures allocated to participant's account may be
treated as employer matching or nonelective contributions.
Sec. 217. Time for providing explanation of qualified
preretirement survivor annuity.
Sec. 218. Modifications of additional participation
requirements for defined benefit plans.
Sec. 219. Treatment of custodial accounts on termination of
section 403(b) plans.
Sec. 220. Secure deferral arrangements.
Sec. 221. Portability of lifetime income options.
Sec. 222. Consolidation of defined contribution plan
notices.
Sec. 223. Performance benchmarks for asset allocation
funds.
Subtitle C—Longevity reforms
Sec. 231. Modification of required minimum distribution rules
where portion of benefit of defined contribution plan is
annuitized.
Sec. 232. Updating of mortality tables for minimum required
distributions.
Sec. 233. Minimum required distributions may be rolled over
into Roth IRAs.
Sec. 234. Transfer of minimum survivor annuity requirements
from plan sponsors to annuity providers.
Sec. 235. Expansion of Employee Plans Compliance Resolution
System.
Subtitle D—Modifications to the Employee Retirement Income
Security Act of 1974
Sec. 241. Electronic communication of pension plan
information.
Sec. 242. Modification of deadlines for summary plan
description updates.
Sec. 243. Modification of small plan simplified reporting
requirements.
Sec. 244. Fiduciary requirement regarding selection of annuity
provider and annuity contract.
TITLE III—Individual retirement investment advice
reform
Sec. 301. Transfer to Secretary of the Treasury of authorities
regarding individual retirement plans.
<enum>I</enum><header>Public pension
reform</header>
<section id="id1326AF3B4E4D4B64BBA4876CCDD363FA"><enum>101.</enum><header>Annuity
accumulation retirement plans of employees of State and local
governments</header>
<subsection commented="no" display-inline="no-display-inline" id="id6FF4647C1BDC4336BC97BB50DA16BAB3"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter D of chapter 1 is amended by
inserting after subpart E the following new subpart:</text>
<quoted-block display-inline="no-display-inline" id="id09CFB163FDEF40E4A6CBD7ACB57964A1" style="OLC">
<subpart commented="no" id="id9E04A7EE9B9141659E0E92A385E2D400" level-type="subsequent"><enum>F</enum><header display-inline="yes-display-inline">Annuity accumulation retirement plans for
State and local government employees.</header>
<toc>
<toc-entry idref="id35ED05B13639491AA6F8C36BCBF5B67E" level="section">Sec. 420A. Annuity accumulation retirement plans.</toc-entry>
</toc>
<section id="id35ED05B13639491AA6F8C36BCBF5B67E"><enum>420A.</enum><header>Annuity
accumulation retirement plans</header>
<subsection id="id630D300B65644D1FB202FFE15476818C"><enum>(a)</enum><header>Annuity
accumulation retirement plans</header><text>For purposes of this
subpart—</text>
<paragraph id="id8FEE574DB5C949769CF4E3C193A3D418"><enum>(1)</enum><header>In
general</header><text>The term <term>annuity accumulation retirement
plan</term> means a State or local governmental retirement plan—</text>
<subparagraph id="id9820DD810B07467E9D819609F575299B"><enum>(A)</enum><text>which provides
for the purchase, not less frequently than annually, of a qualified individual
deferred fixed income annuity contract for each participant which provides
benefits based solely on the contributions by an employer to an annuity
provider and the actuarial assumptions specified in the annuity contract,
and</text>
</subparagraph><subparagraph id="idF07FD34B395548029062A5EAEE6DE7A1"><enum>(B)</enum><text>which provides
that—</text>
<clause id="idCBE9CB6FAB9844D0B0842630A9F34078"><enum>(i)</enum><text>no contributions
may be made under the plan other than contributions described in subsection
(c),</text>
</clause><clause id="id5898DED801724500B03A3EAA1C41D272"><enum>(ii)</enum><text>contributions
pursuant to the plan on behalf of any eligible employee for any plan year,
whether made annually or more frequently, are required to be paid not later
than 90 days after the close of the plan year to an annuity provider to
purchase a qualified individual deferred fixed income annuity contract for the
employee, and</text>
</clause><clause id="idD837FFEA7C0847888DCBEB51447FDF07"><enum>(iii)</enum><text>no benefits are
provided by the employer under the plan other than the purchase of qualified
individual deferred fixed income annuity contracts for eligible
employees.</text>
</clause></subparagraph><continuation-text continuation-text-level="paragraph">Subject to
the provisions of subsection (d)(3), nothing in subparagraph (B)(iii) shall
prohibit an employer from establishing or maintaining a defined contribution
plan or defined benefit plan or providing any form of employee welfare benefit
separately from the plan.</continuation-text></paragraph><paragraph id="id476759E7D86A4A5FA87AC3B51520B602"><enum>(2)</enum><header>Plan
structure</header><text>A plan will not be treated as an annuity accumulation
retirement plan unless—</text>
<subparagraph id="id27068B7C6A4D406DA2CF55F096BD2342"><enum>(A)</enum><text>benefits under
the plan are limited to a monthly payment for the life of the participant,
commencing at the applicable age under subsection (b)(1)(B), as provided under
the qualified individual deferred fixed income annuity contract purchased with
the employer contributions described in subsection (c) and issued to the
participant, and</text>
</subparagraph><subparagraph id="id089EEC1992504F1CBF15F35E6E060CAC"><enum>(B)</enum><text>the plan does not
accumulate assets in trust or otherwise, and the employer has no ownership
interest in any qualified individual deferred fixed income annuity contract
issued to a participant.</text>
</subparagraph></paragraph><paragraph id="idB68DB8360AB1428EB18FCB130E125BA9"><enum>(3)</enum><header>Requirements
for annuity contract purchasing process</header>
<subparagraph id="idC58847CD77C64242B889E7242FFDE80E"><enum>(A)</enum><header>In
general</header><text>A plan will not be treated as an annuity accumulation
retirement plan unless the plan provides that individual deferred fixed income
annuity contracts will be purchased through a process by which, with respect to
each purchase under paragraph (1)(A), the plan administrator—</text>
<clause id="id38959735FA8E4E52A2FA837CD7707924"><enum>(i)</enum><text>obtains
competitive bids pursuant to a formal, public procurement process authorized
under State law which requires institutional pricing on a group contract basis
from multiple annuity providers verified by the applicable State insurance
regulator as properly licensed to meet the specifications in the procurement
request,</text>
</clause><clause id="idCCF76569EB144107832DFB2EAB129D89"><enum>(ii)</enum><text>allocates its
purchases of individual deferred fixed income annuity contracts among the
providers selected under clause (i), with the largest allocation (not to exceed
75 percent of the aggregate purchase amount of all such contracts) purchased
from the annuity provider submitting the superior bid,</text>
</clause><clause commented="no" id="idDCD4ABA9BFAF4AE4B6F69EFA39CABB22"><enum>(iii)</enum><text>ensures, to the
maximum extent possible, that each employee's entire interest under an
individual deferred fixed income annuity contract would be fully guaranteed by
a State guaranty association under applicable State law, regulations, and
industry standards in effect as of the date of issuance of the contract,
and</text>
</clause><clause commented="no" id="idFFC176A0D70443B5A2CB548FFC191854"><enum>(iv)</enum><text>ensures, to the
maximum extent possible, that each employee's entire interest under all
contracts provided under the plan by any single annuity provider (and any
related parties, within the meaning of such term as applied by the State
guaranty association) does not exceed the maximum amount which would be covered
by a State guaranty association described in clause (iii) in case of the
insolvency of the provider.</text>
</clause></subparagraph><subparagraph commented="no" id="id351FA29312F840E99106D7ABDA65FAD0"><enum>(B)</enum><header>Prohibition on
providing benefit in exchange for selection</header><text>An annuity provider
shall not be treated as meeting the competitive bid requirements of
subparagraph (A)(i) if such provider, or any related party to (within the
meaning of such term as applied by the State guaranty association) or agent of
such provider, on their own or on another's behalf, provides anything of value
to any employee of a State or local government entity, or agency or
instrumentality thereof, or to a plan administrator, in connection with the
bidding process or the annuity purchase process described in subparagraph
(A).</text>
</subparagraph><subparagraph id="id3DD51667D845474FAAF28CB5DA255E83"><enum>(C)</enum><header>Compliance safe
harbor</header><text>A plan shall be deemed to meet the requirements of
subparagraph (A) if the plan administrator obtains a determination in writing
from the Office of Domestic Finance, Department of the Treasury, that such plan
meets such requirements. Authority to issue such a determination shall not be
delegated to any entity outside of the Office of Domestic Finance.</text>
</subparagraph></paragraph><paragraph id="id9C5DA294B0D240A5914D9F8F332361FE"><enum>(4)</enum><header>General
exemption from pension plan requirements</header><text>Notwithstanding any
other provision of this subchapter—</text>
<subparagraph id="id617619C5E0D041208B455EF0BA1B015E"><enum>(A)</enum><text>except as
provided in this section, no requirement of this subchapter otherwise
applicable to a State or local governmental retirement plan shall apply to an
annuity accumulation retirement plan, and</text>
</subparagraph><subparagraph id="id7E88783479754F1F929215E073B9465E"><enum>(B)</enum><text>for purposes of
this title other than any such requirements, an annuity accumulation retirement
plan shall be treated as a defined benefit plan which meets the requirements of
section 401(a).</text>
</subparagraph></paragraph></subsection><subsection id="id9ECF0CC2A6524D2E9B813CCCFD5E28CD"><enum>(b)</enum><header>Qualified
individual deferred fixed income annuity contract</header><text>For purposes of
this subpart, the term <term>qualified individual deferred fixed income annuity
contract</term> means, with respect to an employee for any plan year, an
individual annuity contract issued by an annuity provider—</text>
<paragraph id="idEC981B3798994EE99EE1BE3BE5D904BF"><enum>(1)</enum><text>under the terms
of which—</text>
<subparagraph id="id2EFF8740572543B9A34712A3F66809EB"><enum>(A)</enum><text>the monthly
annuity payments during the period described in subparagraph (B) are in equal
installments and are fixed at the time of purchase, and</text>
</subparagraph><subparagraph commented="no" id="id964793481C2740739D5C519210E628ED"><enum>(B)</enum><text>except as
provided in subsection (e), the entire interest of the employee in the contract
will be distributed in the form of monthly annuity payments under a single life
annuity, beginning on the later of—</text>
<clause commented="no" id="idE32612C9DFEC4AAB84B70F06D6DE4A14"><enum>(i)</enum><text>the date the
employee attains age—</text>
<subclause commented="no" id="id3687F6D531F24D6D8D44230AA0521FE0"><enum>(I)</enum><text>57, in the case
of a public safety employee, and</text>
</subclause><subclause commented="no" id="id00B6217DEFC847069616AF77EF259AC6"><enum>(II)</enum><text>67, in the case
of any other employee, or</text>
</subclause></clause><clause commented="no" id="id2C23F01E973140F7B50540999A215A35"><enum>(ii)</enum><text>in the case of a
contract purchased after the date the employee attains such age, the 1st day of
the 1st calendar year beginning after the calendar year in which such contract
was purchased,</text>
</clause></subparagraph></paragraph><paragraph id="id9A70B64D6A8340D9A8C42008CC72EEE6"><enum>(2)</enum><text>the purchase
price of which is equal to the contributions described in subsection (c) with
respect to the employee for the plan year in which it is purchased,</text>
</paragraph><paragraph id="id2244EE9DDB2541D39B8F0CD87338C977"><enum>(3)</enum><text>under which the
employee's rights are nonforfeitable,</text>
</paragraph><paragraph id="idD9815DF828F3482F841BF41C7604BF9F"><enum>(4)</enum><text>under which no
loan may be made with respect to any portion of any interest in the contract,
and</text>
</paragraph><paragraph id="idAD27A9D7E9F240AE98DA9797EDD351ED"><enum>(5)</enum><text>except as
provided in subsection (e), no portion of any interest in the contract may be
assigned, alienated, or pledged as collateral.</text>
</paragraph></subsection><subsection id="idE6C19E5ED7704AA5B6E9918F997BE0D5"><enum>(c)</enum><header>Contribution
requirements and limitations</header><text>For purposes of subsection
(a)(1)(B)—</text>
<paragraph id="id6219574677504F4EA798DAC20F5E39B4"><enum>(1)</enum><header>In
general</header><text>The plan must provide that the only contributions which
may be made pursuant to the plan for any plan year are nonelective
contributions (within the meaning of section 401(k)(11)(B)(ii)) made by the
employer for the purchase of qualified individual deferred fixed income annuity
contracts which are—</text>
<subparagraph id="idE7F9578E4C334C0F9BB2112784A0E0BA"><enum>(A)</enum><text>made on behalf of
each eligible employee for the plan year, and</text>
</subparagraph><subparagraph id="id7F6086AC9A29426B946433729BAD7537"><enum>(B)</enum><text>equal to a
percentage of the employee's compensation which (except as provided in this
paragraph) is determined not later than the start of the plan year.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">An
employer shall not be treated as failing to meet the requirements of this
paragraph merely because the plan allows the employer to elect to reduce the
percentage under subparagraph (B), or not to make any contributions pursuant to
the plan, for any period for all employees, and the employer so elects not
later than the start of the plan year.</continuation-text></paragraph><paragraph id="id591A69A2FE714DF1A2E6E6D8440E2856"><enum>(2)</enum><header>Limits based on
compensation</header>
<subparagraph id="idF912D3938749456E920C0BC4A2DDBAE7"><enum>(A)</enum><header>In
general</header><text>The compensation (as determined for purposes of section
415(c)) taken into account under paragraph (1)(B) with respect to an employee
for any year shall not exceed the limitation in effect for such year under
section 401(a)(17).</text>
</subparagraph><subparagraph id="id557772A6CE2849E2B72D73FD88157A68"><enum>(B)</enum><header>Percentage
limitation</header>
<clause id="id1FBF65B725D74F9AB7C0239EA3E9B197"><enum>(i)</enum><header>In
general</header><text>The percentage under paragraph (1)(B) for any period
shall not exceed—</text>
<subclause id="id69194B26482D44D1BB8228DA0D42BB29"><enum>(I)</enum><text>30 percent in the
case of a public safety employee, or</text>
</subclause><subclause id="id067B39F19AB94AC39B3F492DEA419535"><enum>(II)</enum><text>20 percent in
the case of any other employee.</text>
</subclause></clause><clause id="id78B59A493AC04C2B90C48ED0F1D48C22"><enum>(ii)</enum><header>Election of
higher percentage for employees 50 or older</header><text>A plan may elect for
any plan year to provide a higher percentage under paragraph (1)(B) than that
specified under clause (i) for all employees who have attained age 50 before
the beginning of a plan year, except that such percentage may not
exceed—</text>
<subclause id="id57A61C49325843DF822CD6E02CBCF184"><enum>(I)</enum><text>35 percent in the
case of a public safety employee who has attained such age, or</text>
</subclause><subclause id="id1E17AFB79EEB42A08828324FDEC96737"><enum>(II)</enum><text>25 percent in
the case of any other employee who has attained such age.</text>
</subclause></clause></subparagraph><subparagraph id="id18898CEF260E4B85939B9756C1903C60"><enum>(C)</enum><header>Aggregation
rule</header><text>All plans of an employer treated as a single plan for
purposes of section 415 shall be treated as a single plan for purposes of this
paragraph.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id55A97107D75849A1A34CD995522FCC21"><enum>(d)</enum><header>Tax treatment
of annuity accumulation retirement plans</header>
<paragraph commented="no" id="id123EFBC422674D9CB096E216CFD11057"><enum>(1)</enum><header>Taxation of
eligible employee</header><text>The amount actually paid to a distributee under
a qualified individual deferred fixed income annuity contract shall be taxable
to the distributee under section 72.</text>
</paragraph><paragraph commented="no" id="idC5B88E5EE0BA44A994F84FF7402421CF"><enum>(2)</enum><header>Treatment of
employer contributions</header><text>Contributions made by an employer for the
purchase of a qualified individual deferred fixed income annuity contract under
an annuity accumulation retirement plan shall be excluded from the gross income
of the employee.</text>
</paragraph><paragraph commented="no" id="id550B559EA99A47A3BB5DFE92089725F6"><enum>(3)</enum><header>Inclusion in
income of excess contributions or contributions for participants in another
defined benefit plan of an employer</header>
<subparagraph commented="no" id="id1B048EB044A24E07B80380568F49003A"><enum>(A)</enum><header>Excess
contributions</header><text>Except as provided in subparagraph (B), if—</text>
<clause commented="no" id="id04BD0BE2817A434FADABF82536624EFF"><enum>(i)</enum><text>contributions are
made for any plan year by an employer on behalf of an employee in excess of the
limit determined after application of subsection (c)(2), the employee shall
include in gross income an amount equal to such excess, or</text>
</clause><clause commented="no" id="id88346E713CA44CA08039A35568EA4CD1"><enum>(ii)</enum><text>an employee for
whom such contributions are made for any plan year accrues benefits (for any
period of service for which such contributions were made) under any other
defined benefit plan of the employer which is not an annuity accumulation
retirement plan, the employee shall include in gross income an amount equal to
such contributions.</text>
</clause></subparagraph><subparagraph commented="no" id="id345BA52E0E234A2AA0A768F3354C25B8"><enum>(B)</enum><header>Exception for
premiums refunded</header><text>Subparagraph (A) shall not apply with respect
to contributions on behalf of an employee for any plan year if, not later than
6 months after the last day of the plan year, the contributions described in
subparagraph (A) used to purchase a qualified individual deferred fixed income
annuity contract for the employee are refunded to the employer.</text>
</subparagraph><subparagraph commented="no" id="id38DBA0F4C566420D8E9AECE5111134EA"><enum>(C)</enum><header>Taxable year of
inclusion</header><text>Any amount under subparagraph (A) shall be includible
in gross income of the employee for the taxable year which includes the date
which is 6 months after the last day of the plan year.</text>
</subparagraph><subparagraph commented="no" id="idC1E790636A73421ABA89E63C342432B9"><enum>(D)</enum><header>Investment in
the contract</header><text>Any amount included in gross income shall not be
treated as investment in the contract for purposes of section 72.</text>
</subparagraph></paragraph></subsection><subsection id="idFD9EB909DC7B49DB8C94AB1341C2EED1"><enum>(e)</enum><header>Certain
judgments and settlements</header><text>Paragraphs (1)(B) and (5) of subsection
(b) shall not apply to any offset of an employee's benefits payable under an
annuity contract—</text>
<paragraph id="id2AE00CB2A9374D678FA1279DFDD5DCB3"><enum>(1)</enum><text>pursuant
to—</text>
<subparagraph id="id4EC5550DCBE1450FBC7C2461E360AFBE"><enum>(A)</enum><text>the enforcement
of a levy under section 6331 or the collection by the United States of a
judgment resulting from an unpaid tax assessment, or</text>
</subparagraph><subparagraph id="idA6B6A97256BE4523831979B62C511D2B"><enum>(B)</enum><text>the enforcement
of a fine imposed as part of a criminal sentence under subchapter C of chapter
227 of title 18, United States Code, or an order of restitution made pursuant
to such title, or</text>
</subparagraph></paragraph><paragraph id="id94B9B47FFBCF4B0C8372F7FA98C3A0C7"><enum>(2)</enum><text>to the extent
required under any State tax, criminal, or domestic relations law.</text>
</paragraph></subsection><subsection commented="no" id="id784A090D7D4045E79FA7D5E3ED9315C2"><enum>(f)</enum><header>Definitions</header>
<paragraph commented="no" display-inline="no-display-inline" id="idC2A5394D5F8D4FE28B6E3FC2DEBDC7D5"><enum>(1)</enum><header display-inline="yes-display-inline">State or local governmental retirement
plan</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>State or local governmental retirement plan</term>
means a governmental plan providing for the deferral of compensation which is
established and maintained for its employees by a State, a political
subdivision of a State, or an agency or instrumentality of a State or a
political subdivision of a State.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id989398738DE14183B795702376C3D830"><enum>(2)</enum><header>General
definitions</header><text display-inline="yes-display-inline">For purposes of
this subchapter—</text>
<subparagraph commented="no" id="id20218541A6C14BCD98CBE09A45A55E58"><enum>(A)</enum><header>Eligible
employee</header><text>The term <term>eligible employee</term> means, with
respect to any State or local governmental retirement plan, any officer or
employee (other than a contractor) eligible to participate in the plan.</text>
</subparagraph><subparagraph commented="no" id="id5CD29609D0EB4B4E965C5DA51746B34F"><enum>(B)</enum><header>Annuity
provider</header><text>The term <term>annuity provider</term> means any company
which is licensed to do business as a life insurance company under the laws of
the State in which a qualified individual deferred fixed income annuity
contract to which this subchapter applies is to be issued.</text>
</subparagraph><subparagraph commented="no" id="id86054A281A14485C8CBA6C659AB7F48C"><enum>(C)</enum><header>Public safety
employee</header><text>The term <term>public safety employee</term> means any
employee of a State or political subdivision of a State who provides police
protection, firefighting services, or emergency medical services for any area
within the jurisdiction of such State or political
subdivision.</text>
</subparagraph></paragraph></subsection></section></subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id33541F78E8E748DFA2F78833F4D7E26C"><enum>(b)</enum><header>Limitation on
<enum-in-header>403(a)</enum-in-header> annuity plans of State and local
governments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1C140EC027C64343B360F9CE1BC44DEA"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 403 is amended by adding at the
end the following new paragraph:</text>
<quoted-block act-name="" id="idC194C24C46A841A7975CD6A07AE38FEC" style="OLC">
<paragraph id="id5511399214F64B78B8D453048FD2BB4F"><enum>(6)</enum><header>Exclusion of
certain State and local governmental plans</header><text>This subsection shall
not apply in the case of annuity contracts purchased under a State or local
governmental retirement plan (as defined in section 420A(f)) which was
established after July 8,
2013.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id42215A2A1BB74CBF8F97503E895D927C"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to plans
established after July 8, 2013.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id35A99075B10E4AD484665E8C93890949"><enum>(c)</enum><header>FICA
exemption</header><text>Paragraph (5) of section 3121(a) is amended by striking
<quote>or</quote> at the end of subparagraph (H), by striking the semicolon at
the end of subparagraph (I) and inserting <quote>, or</quote>, and by adding at
the end the following new subparagraph:</text>
<quoted-block act-name="" id="id991B8E020EDC40A0A8DB3256F161F87F" style="OLC">
<subparagraph id="idC83AFEEB281C477DA95EC146C0241717"><enum>(J)</enum><text>under an annuity
accumulation retirement plan for the purchase of annuity contracts under
section
420A;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idC572663CAA9B47C8A161AD2A2625F3F3"><enum>(d)</enum><header>Inclusion of
amount for the purchase of annuity contracts on W–2</header><text>Subsection
(a) of section 6051 is amended by striking <quote>and</quote> at the end of
paragraph (13), by striking the period at the end of paragraph (14)(B) and
inserting <quote>, and</quote>, and by inserting after paragraph (14) the
following new paragraph:</text>
<quoted-block act-name="" id="id4B598AA356664C4184995F215B835DB4" style="OLC">
<paragraph id="idC36C58ADF6C74631AEB9C07632124AEF"><enum>(15)</enum><text>the total amount
contributed under an annuity accumulation retirement plan for the purchase of
annuity contracts under section
420A.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idAA20E916A5204F9A9298AF6A9095E808"><enum>(e)</enum><header>Clerical
amendment</header><text>The table of subparts for part I of subchapter D of
chapter 1 is amended by inserting after the item relating to subpart E the
following new item:</text>
<quoted-block id="idc49145eb-3e1d-4c51-a6f9-ada85a5c013f" style="OLC">
<toc>
<toc-entry idref="id9E04A7EE9B9141659E0E92A385E2D400" level="subpart">SUBPART F—Annuity accumulation retirement plans for State and
local government
employees</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idEC7660C8C8BC42838CAEEC25917D3F52"><enum>(f)</enum><header>Effective
date</header><text>Except as provided in subsection (b), the amendments made by
this section shall apply to years beginning after December 31, 2014.</text>
</subsection></section><section id="id7982E6B9EE28422A99B4B62604B99DA8"><enum>102.</enum><header>Study of
Federal pension systems</header>
<subsection id="id71D89FF50A244565A0B850C1F88A27EE"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study of pension
systems established by law for employees of the Government of the United
States, including an analysis of—</text>
<paragraph id="idD766190F53934AC7B359CC325A710153"><enum>(1)</enum><text>the benefits
provided under such systems, particularly in comparison to those offered to
private employees, and</text>
</paragraph><paragraph id="id269D6986ADA2466D905F6C07FF14D8CF"><enum>(2)</enum><text>whether such
systems are adequately funded.</text>
</paragraph></subsection><subsection id="idEDB85A00919B40E6A24D824BE5A5CC51"><enum>(b)</enum><header>Report</header><text>The
Comptroller General of the United States shall, not later than 1 year after the
date of enactment of this Act, report to Congress the results of the study
conducted under subsection (a), including any recommendations for legislative
or administrative changes to the pension systems considered in the
study.</text>
</subsection></section><enum>II</enum><header>Private pension
reform</header>
<subtitle id="id7B2A0555732342808D0C87BE71C6A6B9"><enum>A</enum><header>Enhanced pension
plan coverage</header>
<section id="id8763BA7A62E9499787C17D34A9C30AA8"><enum>201.</enum><header>Starter
<enum-in-header>401(k)</enum-in-header> plans for employers with no retirement
plan</header>
<subsection id="idB289C45EBE464B3B961A3F091F527201"><enum>(a)</enum><header>In
general</header><text>Section 401(k) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idF9A5273DA485468D8F30DE2F4EF11C13" style="OLC">
<paragraph id="idD79B80210E8040D8A2E63B8372AAF636"><enum>(14)</enum><header>Starter
<enum-in-header>401(k)</enum-in-header> deferral-only plans for employers with
no retirement plan</header>
<subparagraph id="idF214017ADCE74B229E49AD6C4B1CA62A"><enum>(A)</enum><header>In
general</header><text>A starter 401(k) deferral-only arrangement maintained by
an eligible employer shall be treated as meeting the requirements of paragraph
(3)(A)(ii).</text>
</subparagraph><subparagraph id="id89297EA93ED04FE082CFC44AA98E513B"><enum>(B)</enum><header>Starter
<enum-in-header>401(k)</enum-in-header> deferral-only
arrangement</header><text>For purposes of this paragraph, the term
<term>starter 401(k) deferral-only arrangement</term> means any cash or
deferred arrangement which meets—</text>
<clause id="id58BD5B5F6CE543A2917D7000EC5BA6C4"><enum>(i)</enum><text>the automatic
deferral requirements of subparagraph (C),</text>
</clause><clause id="id13337F04F7CB4F26828CA10E9047F15F"><enum>(ii)</enum><text>the contribution
limitations of subparagraph (D), and</text>
</clause><clause id="id6A26C695B8744D60AC60B0195B35E65F"><enum>(iii)</enum><text>the
requirements of subparagraph (E) of paragraph (13).</text>
</clause></subparagraph><subparagraph id="id5A9FA6C050914002A499EAFDD44AF99C"><enum>(C)</enum><header>Automatic
deferral</header>
<clause id="PD6167FBD26624594B06539A9B28C1DD8"><enum>(i)</enum><header>In
general</header><text>The requirements of this subparagraph are met if, under
the arrangement, each employee eligible to participate in the arrangement is
treated as having elected to have the employer make elective contributions in
an amount equal to a qualified percentage of compensation.</text>
</clause><clause id="PAFEECD8E9AC74903A92FD540FFCE17B2"><enum>(ii)</enum><header>Election
out</header><text>The election treated as having been made under clause (i)
shall cease to apply with respect to any employee if such employee makes an
affirmative election—</text>
<subclause id="PFF5D18180A60401B84FF88BDC39FFBCF"><enum>(I)</enum><text>to not have such
contributions made, or</text>
</subclause><subclause id="P00CB2CB761134D8A9593EDE41CBEA645"><enum>(II)</enum><text>to make elective
contributions at a level specified in such affirmative election.</text>
</subclause></clause><clause id="PA2FF02F551AC45E69CE4D91960CB1BA5"><enum>(iii)</enum><header>Qualified
percentage</header><text>For purposes of this subparagraph, the term
<term>qualified percentage</term> means, with respect to any employee, any
percentage determined under the arrangement if such percentage is applied
uniformly and is not less than 3 or more than 15 percent.</text>
</clause></subparagraph><subparagraph id="id244C4F786D62492587679F0A3B8A682C"><enum>(D)</enum><header>Contribution
limitations</header>
<clause id="id7721172D75534B6C8E7B81E58FD64434"><enum>(i)</enum><header>In
general</header><text>The requirements of this subparagraph are met if, under
the arrangement—</text>
<subclause id="id725AD839996F4895933C93606B22FBB3"><enum>(I)</enum><text>the only
contributions which may be made are elective contributions of employees
described in subparagraph (C), and</text>
</subclause><subclause id="idDCAD12057DD24010B39AEDCA9F4D54F5"><enum>(II)</enum><text>the aggregate
amount of such elective contributions which may be made with respect to any
employee for any calendar year shall not exceed $8,000.</text>
</subclause></clause><clause id="id0A06A2677826440DB5C630C30AD86877"><enum>(ii)</enum><header>Cost-of-living
adjustment</header><text>In the case of any calendar year beginning after
December 31, 2014, the $8,000 amount under clause (i) shall be adjusted in the
same manner as under section 402(g)(4), except that <quote>2013</quote> shall
be substituted for <quote>2005</quote>.</text>
</clause><clause id="id6C818BE0BBD245F6926DFDC425EA3ACE"><enum>(iii)</enum><header>Cross
reference</header><text>For catch-up contributions for individuals age 50 or
over, see section 414(v)(2)(B)(ii).</text>
</clause></subparagraph><subparagraph id="id2499915A5E5D4FBB9201638062FED730"><enum>(E)</enum><header>Eligible
employer</header><text>For purposes of this paragraph—</text>
<clause id="id4E743D01FF014E40B4F4F92232164347"><enum>(i)</enum><header>In
general</header><text>The term <term>eligible employer</term> means any
employer which, during the first plan year of the cash or deferred arrangement
described in subparagraph (B), does not maintain any other qualified plan. An
employer treated as an eligible employer under the preceding sentence shall be
treated as an eligible employer with respect to the arrangement for any
subsequent plan year without regard to whether it maintains another qualified
plan.</text>
</clause><clause id="id06420CA259564F35990B8BC7C52BDE2C"><enum>(ii)</enum><header>Qualified
plan</header><text>The term <term>qualified plan</term> means a plan, contract,
pension, account, or trust described in subparagraph (A) or (B) of paragraph
(5) of section 219(g) (determined without regard to the last sentence of such
paragraph
(5)).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id47AB7B6A21C9482B8DCEAA48DBDD2AE2"><enum>(b)</enum><header>Catch-Up
contributions for individuals age 50 and over</header>
<paragraph id="id8D6EDB7FDE204CE197FC95DB420F4071"><enum>(1)</enum><text>Section
414(v)(2)(B) is amended by inserting <quote>, 401(k)(14),</quote> after
<quote>401(k)(11)</quote> each place it appears.</text>
</paragraph><paragraph id="id6D46C35FA8E448BE819BBCB0054CC898"><enum>(2)</enum><text>Section
414(v)(3)(B) is amended by inserting <quote>401(k)(14),</quote> after
<quote>401(k)(11),</quote>.</text>
</paragraph></subsection><subsection id="idD1DD24A57FAA4DC7A9C89F02156A460D"><enum>(c)</enum><header>Simplified
reporting</header><text>Section 104(a)(2)(A) of the Employee Retirement Income
Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(a)(2)</external-xref>) is amended by inserting <quote>or
for any pension plan which is a starter 401(k) deferral-only arrangement
described in <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(14)(B)</external-xref> of the Internal Revenue Code of 1986</quote>
before the period at the end.</text>
</subsection><subsection id="id4F267CF60AEE409B91F3A8A5DD899076"><enum>(d)</enum><header>Starter plans
not treated as top-Heavy plans</header><text>Clause (i) of section 416(g)(4)(H)
is amended by striking <quote>or 401(k)(13)</quote> and inserting
<quote>401(k)(13), or 401(k)(14)</quote>.</text>
</subsection><subsection id="idCA3CB4256A864DF18A122FA5C20AAB52"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2013.</text>
</subsection></section><section commented="no" id="H63AB670A1BDE4BA3A2AD598827A9C956"><enum>202.</enum><header>Increase in
credit limitation for small employer pension plan startup costs</header>
<subsection id="H296760C4034D4BBB92C7F56A4202665A"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 45E(b) is amended to read as
follows:</text>
<quoted-block id="H730402638C8C45409B483695406FB020" style="OLC">
<paragraph id="HBE31F2B9AAB64EA0B0888224AEDD186B"><enum>(1)</enum><text>for the first
credit year and each of the 2 taxable years immediately following the first
credit year, the greater of—</text>
<subparagraph id="H400890257B684BB681B1CA237359AF80"><enum>(A)</enum><text>$500, or</text>
</subparagraph><subparagraph id="H929F5FAE0BCF4CED8929E2BBE406689C"><enum>(B)</enum><text>the lesser
of—</text>
<clause id="H22F4C6A0B63D4A5FAF16AA638ADCD0D8"><enum>(i)</enum><text>$250 for each
employee of the eligible employer who is not a highly compensated employee (as
defined in section 415(q)) and who is eligible to participate in the eligible
employer plan maintained by the eligible employer, or</text>
</clause><clause id="H105202B176104A658D381C41399B3AFD"><enum>(ii)</enum><text>$5,000,
and</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H59B39BF39A304511952F970331663148"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2013.</text>
</subsection></section><section id="id4DB8F1027ADC4FA0A5959BD100D429B7"><enum>203.</enum><header>Employers
allowed to replace simple retirement accounts with safe harbor
401<enum-in-header>(k)</enum-in-header> plans during a year</header>
<subsection id="id2ADE1F65A7624E3D9BF65A178C6E7624"><enum>(a)</enum><header>In
general</header><text>Section 408(p) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idD3AEB288AEB94E7099863E36921AFE78" style="OLC">
<paragraph id="idB34AA100ECD84E3A93B3538CEAA28ECB"><enum>(11)</enum><header>Replacement of
simple retirement accounts with safe harbor plans during plan year</header>
<subparagraph id="id334877FEDFCD4138BF6360EE85D5F826"><enum>(A)</enum><header>In
general</header><text>Subject to the requirements of this paragraph, an
employer may elect (in such form and manner as the Secretary may prescribe) at
any time during a year to terminate the qualified salary reduction arrangement
under paragraph (2), but only if the employer establishes and maintains (as of
the day after the termination date) a safe harbor plan to replace the
terminated arrangement.</text>
</subparagraph><subparagraph id="id2B82AD534D7B41E6993E048830E4C557"><enum>(B)</enum><header>Combined limits
on contributions</header><text>The terminated arrangement and safe harbor plan
shall both be treated as violating the requirements of paragraph (2)(A)(ii) or
section 401(a)(30) (whichever is applicable) if the aggregate elective
contributions of the employee under the terminated arrangement during its last
plan year and under the safe harbor plan during its transition year exceed the
sum of—</text>
<clause id="id73309FB0F9344C569DBCF02F8A91C9B8"><enum>(i)</enum><text>the applicable
dollar amount for such arrangement (determined on a full-year basis) with
respect to the employee for such last plan year multiplied by a fraction equal
to the number of days in such plan year divided by 365, and</text>
</clause><clause id="id7DACE91F67E3443F9D7F78F77B5EF2D6"><enum>(ii)</enum><text>the applicable
dollar amount (as so determined) for such safe harbor plan on such elective
contributions during the transition year multiplied by a fraction equal to the
number of days in such transition year divided by 365.</text>
</clause></subparagraph><subparagraph id="id50C990CDDDE94BA59F83FBBC9B29C733"><enum>(C)</enum><header>Applicable
dollar amount</header><text>The applicable dollar amount is the amount
determined under paragraph (2)(A)(ii) (after the application of section 414(v))
or section 402(g)(1), whichever is applicable.</text>
</subparagraph><subparagraph id="idE248C7D82F524445974A07620FD15217"><enum>(D)</enum><header>Transition
year</header><text>For purposes of this paragraph, the transition year is the
period beginning after the termination date and ending on the last day of the
calendar year during which the termination occurs.</text>
</subparagraph><subparagraph id="id75573108970747D9916AB3C67B9ED140"><enum>(E)</enum><header>Safe harbor
plan</header><text>For purposes of this paragraph, the term <term>safe harbor
plan</term> means a qualified cash or deferred arrangement which meets the
requirements of paragraph (11), (12), or (13) of section
401(k).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id0A8A17A821794E3280AF023046AB6038"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2013.</text>
</subsection></section><section id="H8DA23EF7DF2A4F8CA9A84C0B8E8FB15A"><enum>204.</enum><header>Modification of
automatic enrollment safe harbor</header>
<subsection id="H903EE37E89754E969B1D83CD2D106C18"><enum>(a)</enum><header>Removal of 10
percent cap after 1st plan year</header>
<paragraph id="HE7E7BC3EC01140AD94427E8B791A1C2D"><enum>(1)</enum><header>In
general</header><text>Clause (iii) of section 401(k)(13)(C) is amended by
striking <quote>, does not exceed 10 percent, and is at least</quote> and
inserting <quote>and is</quote>.</text>
</paragraph><paragraph id="H18AE74D377A2430697CED1E35652BBE1"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H81645D866E5E4CB5A62D29F7211638A3"><enum>(A)</enum><text>Subclause (I) of
section 401(k)(13)(C)(iii) is amended by striking <quote>3 percent</quote> and
inserting <quote>at least 3 percent, but not greater than 10
percent,</quote>.</text>
</subparagraph><subparagraph id="HB6874322D6DD498C82EDDD6122723215"><enum>(B)</enum><text>Subclause (II) of
section 401(k)(13)(C)(iii) is amended by striking <quote>4 percent</quote> and
inserting <quote>at least 4 percent</quote>.</text>
</subparagraph><subparagraph id="H97B8BA0D26EB42FE92FD9ED1A5D901E0"><enum>(C)</enum><text>Subclause (III) of
section 401(k)(13)(C)(iii) is amended by striking <quote>5 percent</quote> and
inserting <quote>at least 5 percent</quote>.</text>
</subparagraph><subparagraph id="H2D573C6EA3614D49B2F41F4DA5E073D7"><enum>(D)</enum><text>Subclause (IV) of
section 401(k)(13)(C)(iii) is amended by striking <quote>6 percent</quote> and
inserting <quote>at least 6 percent</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1C9AB0A55C77423F9D84B2DB2D36A439"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to plan years beginning after the date of enactment of
this Act.</text>
</subsection></section><section id="id073BCC0732BD4C99A010F9F86993D18B"><enum>205.</enum><header>Plan adopted
by filing due date for year may be treated as in effect as of close of
year</header>
<subsection id="idC5D21B7BCC1E49A1B19162B7A8B3676C"><enum>(a)</enum><header>In
general</header><text>Section 401(b), as amended by section 211 of this Act, is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC2E089111D0C494785F7D03D6A560884" style="OLC">
<paragraph id="idE3CB4BA02FE147B0A85F84714DEAC132"><enum>(4)</enum><header>Adoption of
plan</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id27913E6B51AE49D69A8C4BDB6DB4BD8F"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plans
adopted for taxable years beginning after December 31, 2013.</text>
</subsection></section><section id="id9350CEEB13A34822A3C6ECC0957E6B76"><enum>206.</enum><header>Rules relating
to election of safe harbor <enum-in-header>401(k)</enum-in-header>
status</header>
<subsection commented="no" id="id9C3CF37D80E346C7A449789F64E7744A"><enum>(a)</enum><header>Limitation of
annual safe harbor notice to matching contribution plans</header>
<paragraph commented="no" id="idFB17F2CFD0674A51A507282000D63FB4"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 401(k)(12) is amended by
striking <quote>if such arrangement</quote> and all that follows and inserting
“if such arrangement—</text>
<quoted-block display-inline="no-display-inline" id="idA3D8C4309E1B43E4996037D3792F1D5F" style="OLC">
<clause commented="no" id="id3CC107ECA7CA4B2AA98C3B1BC9C47723"><enum>(i)</enum><text>meets the
contribution requirements of subparagraph (B) and the notice requirements of
subparagraph (D), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8E14BD76EF42476E9B5A354EDCE88351"><enum>(ii)</enum><text>meets the
contribution requirements of subparagraph
(C).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idD18939D921D24698910A2D5FA07F59CE"><enum>(2)</enum><header>Automatic
contribution arrangements</header><text>Subparagraph (B) of section 401(k)(13)
is amended by striking <quote>means</quote> and all that follows and inserting
“means a cash or deferred arrangement—</text>
<quoted-block display-inline="no-display-inline" id="idF830A9DC9FFC4C598462384655E9DCC4" style="OLC">
<subparagraph commented="no" id="id3C0F801BB2064F5B9E36DC0D8715704A"><enum>(A)</enum><text>which is
described in subparagraph (D)(i)(I) and meets the applicable requirements of
subparagraphs (C) through (E), or</text>
</subparagraph><subparagraph commented="no" id="id0CD6C71B056B4CE8A9EB91253A5FB46A"><enum>(B)</enum><text>which is
described in subparagraph (D)(i)(II) and meets the applicable requirements of
subparagraphs (C) and
(D).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="id2C11760BD3DE4FF991D73808753E6DA0"><enum>(b)</enum><header>Nonelective
contributions</header><text>Section 401(k)(12) is amended by redesignating
subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E)
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id26CE9094CD4A4363A32E72D911828BBA" style="OLC">
<subparagraph id="id7BB5CBEE14254379A7D1EC2E013EAFEB"><enum>(F)</enum><header>Timing of plan
amendment for employer making nonelective contributions</header>
<clause id="id1A4F417E064B468F9E289E08756FAB11"><enum>(i)</enum><header>In
general</header><text>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—</text>
<subclause id="idCA67569D552C416A860D1F1A9A93D32D"><enum>(I)</enum><text>at any time
before the 30th day before the close of the plan year, or</text>
</subclause><subclause id="id84F14A2176F6492B9F8079523483FD84"><enum>(II)</enum><text>if the
requirements of clause (iii) are met, at any time before the last day under
paragraph (8)(A) for distributing excess contributions for the plan
year.</text>
</subclause></clause><clause id="id0CAFA6C385AC4B53B27F1ACDFA8E1444"><enum>(ii)</enum><header>Exception
where plan provided for matching contributions</header><text>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) applied to the plan year.</text>
</clause><clause id="id15823C3AA4AD477CBCCE9D88ED376AB4"><enum>(iii)</enum><header>4-percent
contribution requirement</header><text>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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idF4F798FF12D2492C995644756771E369"><enum>(c)</enum><header>Automatic
contribution arrangements</header><text>Section 401(k)(13) is amended by adding
at the end the following :</text>
<quoted-block display-inline="no-display-inline" id="id9548E7E6F5DE44E5A1F35F36B6DC9F5F" style="OLC">
<subparagraph id="id78F47EF016304790BAFDE61FD9216BAE"><enum>(F)</enum><header>Timing of plan
amendment for employer making nonelective contributions</header>
<clause id="id71F5D24C1EB3433E89860DC07257CDA0"><enum>(i)</enum><header>In
general</header><text>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—</text>
<subclause id="id54B8975886D547429D68B7D6C5C015BF"><enum>(I)</enum><text>at any time
before the 30th day before the close of the plan year, or</text>
</subclause><subclause id="id4F8004DBB88849C6988776D4141E5057"><enum>(II)</enum><text>if the
requirements of clause (iii) are met, at any time before the last day under
paragraph (8)(A) for distributing excess contributions for the plan
year.</text>
</subclause></clause><clause id="id7586538B0788406EAF1909E76D02D7BC"><enum>(ii)</enum><header>Exception
where plan provided for matching contributions</header><text>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) applied to the plan
year.</text>
</clause><clause id="idC79B681755A44CA2B57C849D75774A3C"><enum>(iii)</enum><header>4-percent
contribution requirement</header><text>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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6044838550CA4239BD836C6BF9B7C112"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2013.</text>
</subsection></section><section id="id1EDF723040D84FA2A72AE1981648F16E"><enum>207.</enum><header>Modifications
of rules relating to multiple employer defined contribution plans</header>
<subsection id="idD45576625A7043FF9134B59E3F67A53C"><enum>(a)</enum><header>Qualification
requirements</header><text>Section 413 is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id686DFE5E811A47598C118382AAF36F26" style="OLC">
<subsection id="id4FD460F5A6944BD7B88AD08895D5297A"><enum>(d)</enum><header>Application of
qualification requirements for certain multiple employer plans with designated
plan providers</header>
<paragraph id="id16F1714B8EC54225AE8FCE0BA77E8D22"><enum>(1)</enum><header>In
general</header><text>If a plan to which subsection (c) applies is sponsored by
employers that have a common interest other than having adopted the plan, or
has a designated plan provider, then, except as provided in paragraph (3), the
failure of the portion of the plan covering the employees of an employer
maintaining the plan to satisfy any applicable qualification requirement under
section 401(a) will not affect the qualification of any portion of the plan
covering employees of any employer who has satisfied all such
requirements.</text>
</paragraph><paragraph id="idFC59F7BCE6AC44008EC3A6C02396BDD1"><enum>(2)</enum><header>Designated plan
provider</header><text>For purposes of this subsection—</text>
<subparagraph id="id27F2D4D55F2A432DB9CBAFD44EC471BB"><enum>(A)</enum><header>In
general</header><text>The term <term>designated plan provider</term> means the
person designated under the terms of the plan as the person responsible to
perform all administrative duties which are reasonably necessary to ensure that
the plan, and each participating employer, meets the requirements described in
paragraph (1), including conducting proper testing of such plan and
employers.</text>
</subparagraph><subparagraph id="id4F36255D065546C0ADADDC27DBD60979"><enum>(B)</enum><header>Registration,
etc. requirements</header><text>A person shall not be treated as a designated
plan provider with respect to any plan unless—</text>
<clause id="id555C8269006F4E5E85367C2AC4501291"><enum>(i)</enum><text>the person
registers with the Secretary and provides such identifying information as the
Secretary may require, and</text>
</clause><clause id="idDEF058C6F91B4D81896312ECA8A0411F"><enum>(ii)</enum><text>the person
consents to audits by the Secretary at such times as the Secretary determines
appropriate to ensure the person is performing the duties described in
subparagraph (A).</text>
</clause></subparagraph></paragraph><paragraph id="idA13B2371EF8E404EA39D3CB8E4F651EA"><enum>(3)</enum><header>Failure by
provider to perform duties</header><text>If the designated plan provider of a
plan does not perform the duties described in paragraph (2)(A) with respect to
any plan year so as to reasonably ensure the plan meets the requirements
described in paragraph (1)—</text>
<subparagraph id="id49EF29EFDED04EF69A5BDDE1D1B804EB"><enum>(A)</enum><text>paragraph (1)
shall not apply to the plan for the plan year, and</text>
</subparagraph><subparagraph id="id57D53D84941644FFAD90CFD62ED506A5"><enum>(B)</enum><text>the determination
as to whether the plan, or any participating employer, meets such requirements
shall be made in the same manner as made with respect to a plan without a
designated plan provider.</text>
</subparagraph></paragraph><paragraph id="idA8CD57A4A9F741769F985877DC583A22"><enum>(4)</enum><header>Guidance</header><text>The
Secretary shall issue such guidance as the Secretary determines appropriate to
carry out this subsection, including guidance to—</text>
<subparagraph id="id5809105132044D7A87C1A235076DE001"><enum>(A)</enum><text>identify the
administrative duties required to be performed under paragraph (2)(A),
and</text>
</subparagraph><subparagraph id="idCABB4F523ED2499FB0B0E34B8B1398A0"><enum>(B)</enum><text>require, if
appropriate, that the portion of the plan attributable to participating
employers not meeting the requirements described in paragraph (1) be spun off
to plans maintained by such
employers.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2399B9855E40481399B3A2DB383EEEEC"><enum>(b)</enum><header>Modification of
ERISA requirements</header>
<paragraph id="id9DFC66A08DF84DB391F297471390D4B8"><enum>(1)</enum><header>Requirement of
common interest</header><text>Section 3(2) of the Employee Retirement Income
Security Act of 1974 is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id3A0BBCF7910B4AF8AE0F058898D9622F" style="OLC">
<subparagraph id="id9EE11575D26140AEB29B2E6DF6B7A4BF" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idA68E8ABCCB7940278444A990D8E482AA"><enum>(i)</enum><text>A qualified multiple
employer plan shall not fail to be treated as an employee pension benefit plan
or pension plan solely because the employers sponsoring the plan share no
common interest.</text>
</clause><clause id="idA83DEFE35DFE4BA499B10109244636C6" indent="up1"><enum>(ii)</enum><text>For purposes of this subparagraph,
the term <term>qualified multiple employer plan</term> means a plan described
in <external-xref legal-doc="usc" parsable-cite="usc/26/413">section 413(c)</external-xref> of the Internal Revenue Code of 1986 which—</text>
<subclause id="id9EC98E0E308C4B5A96EF87D0BC7AB969"><enum>(I)</enum><text>is an individual account plan with
respect to which the requirements of clauses (iii) and (iv) are met, and</text>
</subclause><subclause id="idF184586752E04C1B9D2F7643B874A31C"><enum>(II)</enum><text>includes in its annual report
required to be filed under section 104(a) the name and identifying information
of each participating employer and each person designated as a designated plan
provider under <external-xref legal-doc="usc" parsable-cite="usc/26/413">section 413</external-xref> of the Internal Revenue Code of 1986.</text>
</subclause></clause><clause id="id868E0B9DE5564C7FA7E8E7BFC9E0E0E9" indent="up1"><enum>(iii)</enum><text>The requirements of this clause are
met if, under the plan, each participating employer retains fiduciary
responsibility for—</text>
<subclause id="idA12A3086798D4CFA8892328ECD1D06E9"><enum>(I)</enum><text>the selection and monitoring of the
person designated as the designated plan provider and the named fiduciary if
different from such provider, and</text>
</subclause><subclause id="id148E471D96E04438B45E22A1A98F6C03"><enum>(II)</enum><text>the investment and management of
the portion of the plan's assets attributable to employees of the employer to
the extent not otherwise delegated to another fiduciary.</text>
</subclause></clause><clause id="id35789A51096F465FA583B20F1BCF4EDF" indent="up1"><enum>(iv)</enum><text>The requirements of this clause are
met if, under the plan, a participating employer is not subject to unreasonable
restrictions, fees, or penalties by reason of ceasing participation in, or
otherwise transferring assets from, the
plan.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idC847C265569B4201A130B9FB171BC3E1"><enum>(2)</enum><header>Simplified
reporting for small multiple employer plans</header><text>Section 104(a) of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(a)</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id591DA794CDEE42DFB1FACDA1DF36D991" style="OLC">
<paragraph id="id70A55C18E09A4AF18821F18531BF55F5" indent="up1"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id7945065CF4FE4E389444C079809395CF"><enum>(A)</enum><text>In the case of any
eligible small multiple employer plan, the Secretary may by regulation—</text>
<clause id="id82B0F3B5324A448B8BCD4C313F5AAFEA" indent="up1"><enum>(i)</enum><text>prescribe simplified summary plan
descriptions, annual reports, and pension benefit statements for purposes of
section 102, 103, or 105, respectively, and</text>
</clause><clause id="id177F7918AFD84E4F9FC98ED07F82C08C" indent="up1"><enum>(ii)</enum><text>waive the requirement under section
103(a)(3) to engage an independent qualified public accountant in cases where
the Secretary determines it appropriate.</text>
</clause></subparagraph><subparagraph id="id5216D5002EC84A6D94D812073A52621C" indent="up1"><enum>(B)</enum><text>For purposes of this paragraph, the
term <term>eligible small multiple employer plan</term> means, with respect to
any plan year, a qualified multiple employer plan (as defined in section
3(2)(C)) which, for the preceding plan year—</text>
<clause id="id5B1A36BAD0BC457C90C38FCDAF209AEF"><enum>(i)</enum><text>did not have more than 2,500
participants, and</text>
</clause><clause id="id40D287A18A0F40829DBEB3424EDB0305"><enum>(ii)</enum><text>did not have any
employer sponsoring the plan which had more than 500 employees as
participants.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7E8BEA51ACEA4CD48B1F2EFA701D6ADA"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to years
beginning after December 31, 2013.</text>
</subsection></section></subtitle><subtitle id="idA47E73807A8A464F89A3AF81DC5AAD7C"><enum>B</enum><header>Pension plan and
retirement savings simplification</header>
<section id="idBC5868A5AFA043DD988968700FEC9290"><enum>211.</enum><header>Modifications
of deadlines for adopting pension plan amendments</header>
<subsection id="H0A7B1C46866849CF93B7C18DA0677D3F"><enum>(a)</enum><header>Required
amendments</header><text>Section 401(b) is amended—</text>
<paragraph id="idDBEDC42EF089412AAE41502108AC2A0E"><enum>(1)</enum><text>by striking all
that precedes <quote>stock bonus, pension, profit-sharing</quote> and
inserting:</text>
<quoted-block display-inline="no-display-inline" id="idD85003D540594038A46420C053B2D151" style="OLC">
<subsection id="id60E3CAE5FB7A42FEAA8B63B29AEFBA7D"><enum>(b)</enum><header>Retroactive
amendments to, and adoption of, a plan</header>
<paragraph id="idC4F03732C5274365B223959B1619A1DE"><enum>(1)</enum><header>Retroactive
changes to amendments causing plan to
fail</header><text>A</text>
</paragraph></subsection><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idB857B2E19DAA438F94BF75090F789977"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id909667002B824D238E88A5FF93835F81" style="OLC">
<paragraph id="idD900EF79B2B548B9B06E1904CA89AFCA"><enum>(2)</enum><header>Coordination of
timing of pension plan amendment adoption, and remedial plan review,
requirements</header>
<subparagraph id="id9B3D6523DC504C43BE6D4B35295AC671"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), in the case of
any required amendment to a stock bonus, pension, profit-sharing, or annuity
plan—</text>
<clause id="HDC6B7E0E427E4C66A902E086B3801941"><enum>(i)</enum><text>the plan shall be
treated as being operated in accordance with the terms of the plan during the
remedial period, and</text>
</clause><clause id="H9CAE7F41749C4040BE6DFEDC38FE5A3"><enum>(ii)</enum><text>except as provided
by the Secretary, 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
<act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
1974</act-name> by reason of such amendment.</text>
</clause></subparagraph><subparagraph id="idFE0BC4B85AD44205AC55B6C328495F1A"><enum>(B)</enum><header>Conditions</header><text>Subparagraph
(A) shall not apply to any required amendment to a plan unless—</text>
<clause id="id331F4BA4BC5D4F28BC80B71A1034839D"><enum>(i)</enum><text>the required
amendment is adopted before the end of the remedial period,</text>
</clause><clause id="id4B22FA65DF904B98B89D8BFB4A131F41"><enum>(ii)</enum><text>the plan is
operated as if the required amendment were in effect during the remedial
period, and</text>
</clause><clause id="id99CE935A05134F23B607461B9536DFF2"><enum>(iii)</enum><text>the required
amendment applies retroactively for the remedial period.</text>
</clause></subparagraph><subparagraph id="id52FFA2FB588F4E099AA1239041DB5B86"><enum>(C)</enum><header>Required
amendment</header><text>For purposes of this paragraph, the term <term>required
amendment</term> means any amendment to a plan which is required by (or
integral to meeting the requirements of) any Federal law or any regulation
issued by the Secretary or the Secretary of Labor.</text>
</subparagraph><subparagraph id="idD2C8C797081A40BA8C87E208B0A5D76D"><enum>(D)</enum><header>Remedial
period</header><text>For purposes of this paragraph—</text>
<clause id="idE185755BDC4E4763AA44A763D13B1106"><enum>(i)</enum><header>Remedial
period</header><text>The term <term>remedial period</term> means, with respect
to any required amendment to a plan, the period—</text>
<subclause id="id1F7145B2C6954D60A1817BF487545EC4"><enum>(I)</enum><text>beginning on the
date the amendment is required under the law or regulation described in
subparagraph (C) to take effect, and</text>
</subclause><subclause id="idEAA99AA0036A493EA6D327109B59EDD2"><enum>(II)</enum><text>ending on the
last day in the remedial plan review period with respect to the plan in which
the date determined under subclause (I) occurs (or, if earlier, the date the
plan amendment is adopted).</text>
</subclause></clause><clause id="id4F14480391BF4CEFB3487DB6BEB00C4C"><enum>(ii)</enum><header>Remedial plan
review period</header><text>The term <term>remedial plan review period</term>
means, with respect to any plan, the period established by the Secretary under
the authority of section 401(b) as the regular cycle of review by the Secretary
for determining whether the plan continues to meet the requirements of this
title for treatment as a qualified plan under section
401(a).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id72FE31B74EB04614A753F1FFA49578A4"><enum>(b)</enum><header>Retroactive
application of discretionary amendments</header><text>Section 401(b), as
amended by subsection (a), is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idB98271B7AFC84885A58451F0643003B1" style="OLC">
<paragraph id="id94073D0FD63B49E28B2B052D14BB3060"><enum>(3)</enum><header>Discretionary
amendments</header><text>In the case of an amendment to which paragraphs (1)
and (2) do not otherwise apply, the provisions of paragraph (1) shall apply to
such amendment if it is to take effect during a plan year and is adopted by the
last day prescribed by law (including extensions) for filing the return of tax
for the taxable year of the employer within which such plan year
ends.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id31CC3E514EA444CCBD4117C3DDE28385"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to amendments taking effect with respect to plan years beginning after December
31, 2013.</text>
</subsection></section><section id="idE138C59424B945A999FE3206F8A1C417"><enum>212.</enum><header>Termination of
application of top-heavy plan rules</header>
<subsection id="id4C36C739B442433DA89E4EB59C0F6E80"><enum>(a)</enum><header>In
general</header><text>Section 416 is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id1E5CF1C61DE94EF0AAE0A9CCB29260BD" style="OLC">
<subsection id="id1FA1C021BD8241219E985D207611D188"><enum>(j)</enum><header>Termination</header>
<paragraph id="idE8E954E9584D43E2AA90BD1E95A1F35C"><enum>(1)</enum><header>In
general</header><text>This section shall not apply to any plan year beginning
after December 31, 2013.</text>
</paragraph><paragraph id="id8D0EA05259C1471CB0A9C9EDA353EFB2"><enum>(2)</enum><header>Vesting rules
applicable to previously accrued benefits</header><text>If a plan was a
top-heavy plan for any plan year beginning before January 1, 2014, then,
notwithstanding paragraph (1), the vesting rules applicable to the plan under
subsection (b) for the plan year shall continue to apply to any accrued benefit
derived during the plan
year.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idFA410626CBF942E4908C95AEFD078C43"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2013.</text>
</subsection></section><section id="idA072ECB985F84ABEBDC83B011D7E59F6"><enum>213.</enum><header>Amendments to
safe harbor <enum-in-header>401(k)</enum-in-header> plans during plan
year</header>
<subsection id="idA0D4F4CE8D14487FB0434DD4289C12E1"><enum>(a)</enum><header>In
general</header><text>Section 401(k)(12), as amended by section 206 of this
Act, is amended by redesignating subparagraph (G) as subparagraph (H) and by
inserting after subparagraph (F) the following:</text>
<quoted-block display-inline="no-display-inline" id="id7A4914AE64F64DEA998DBA8C12A8F225" style="OLC">
<subparagraph id="id766F54EBB3644BBA8C577E24D3DE8442"><enum>(G)</enum><header>Amendments to
safe harbor plans during plan year</header>
<clause id="id3F78653EC7774B76A4233200FFED4300"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), an amendment to an
arrangement to which this paragraph or paragraph (13) applies may take effect
during a plan year if it is adopted before the close of the plan year.</text>
</clause><clause id="id83468183782C42CE93375C24F044FDE8"><enum>(ii)</enum><header>No reduction
in matching contributions</header><text>Clause (i) shall not apply to any
amendment which reduces the amount of the matching contributions an employer is
required to make under the arrangement as in effect before the
amendment.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA0AD7C31044147569C629BB3744F63D4"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to plan years
beginning after December 31, 2013.</text>
</subsection></section><section id="id5B8650CFC83E4DAE8C1637737DDF074D"><enum>214.</enum><header>Modification
of rules relating to hardship withdrawals from cash or deferred
arrangements</header>
<subsection id="idCF814D300F9E406EAB2396A140C21699"><enum>(a)</enum><header>In
general</header><text>Section 401(k), as amended by section 201 of this Act, is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id500A8AE0515B43D499E5D9C167D7DC67" style="OLC">
<paragraph id="idDEFF291DFD2C41268588F0FA0DD3D747"><enum>(15)</enum><header>Special rules
relating to hardship withdrawals</header><text>For purposes of paragraph
(2)(B)(i)(IV)—</text>
<subparagraph id="id6BF35CD14F9C4984A10D881D7EBEB0E7"><enum>(A)</enum><header>Amounts which
may be withdrawn</header><text>The following amounts may be distributed upon
hardship of the employee:</text>
<clause id="id8139B9AD53054A3DAD0A220EB2E6D983"><enum>(i)</enum><text>Contributions to
a profit-sharing or stock bonus plan to which section 402(e)(3) applies.</text>
</clause><clause id="id5F94C92ADC164D699AAE4B771E328BC3"><enum>(ii)</enum><text>Qualified
nonelective contributions (as defined in subsection (m)(4)(C)).</text>
</clause><clause id="id9E4E8A8C19154DDD99E921F087AB0EB2"><enum>(iii)</enum><text>Qualified
matching contributions described in paragraph (3)(D)(ii)(I).</text>
</clause><clause id="id9984ED6323E14DB6BD42FFDDB97D1252"><enum>(iv)</enum><text>Earnings on any
contributions described in clause (i), (ii), or (iii).</text>
</clause></subparagraph><subparagraph id="id366419599D2D41A895D09853B55CBFE2"><enum>(B)</enum><header>No requirement
to take available loan</header><text>A distribution shall not be treated as
failing to be made upon the hardship of an employee solely because the employee
does not take any available loan under the plan.</text>
</subparagraph><subparagraph id="idE443E9A0AF9847669E3559FCF71909A4"><enum>(C)</enum><header>Participation
in arrangement not conditioned on whether hardship distribution
made</header><text>In determining whether a distribution is made upon the
hardship of an employee, the Secretary shall not take into account whether or
not an employee makes elective or employee contributions under the arrangement
for any period after the
distribution.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id09D7876127C24E6AB990EFD515B3D1BD"><enum>(b)</enum><header>Conforming
amendment</header><text>Subclause (IV) of section 401(k)(2)(B)(i) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id5079C634C3B44CD78094BF2638D3353C" style="OLC">
<subclause id="id9334681E8C3945CFBB518663C7AAB1A2"><enum>(IV)</enum><text>subject to the
provisions of paragraph (15), upon hardship of the employee,
or</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idFFDC5C4F31D046E8B07CB924C1BB067C"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
distributions made after December 31, 2013.</text>
</subsection></section><section id="id438E5AA853DB476891F10DB9FB946781"><enum>215.</enum><header>Individual may
roll over insurance contract into individual retirement account</header>
<subsection id="id257FE4F90FF240EBA58DE6BE2E79CCEB"><enum>(a)</enum><header>In
general</header><text>Section 408(a) is amended by adding at the end the
following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="id687900F17ED84E949EE43FBA05B55D7C" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">A trust
shall not be treated as failing to meet the requirements of paragraph (3)
merely because it holds a life insurance contract which was transferred to the
trust in a rollover contribution described in paragraph
(1).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB21F19D375FC482D835D924935AB1750"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 72(m)(3) is amended—</text>
<paragraph id="idC6C1A46EB4F24EA88BAA3D6354AB6515"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>or</quote> at the end of clause (i), by striking the
period at the end of clause (ii) and inserting <quote>, or</quote>, and by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id839928D5930246B68716841F589FA066" style="OLC">
<clause id="idB2881992BAA64F81AC558467A9CF0328"><enum>(iii)</enum><text>held by a trust
described in section 408(a) after being contributed to the trust in a rollover
contribution described in section
408(a)(1).</text>
</clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5BF5C97DEEFD4280B407D43E5BEA90C4"><enum>(2)</enum><text>in subparagraph
(B), by striking <quote>subparagraph (A)(ii)</quote> each place it appears and
inserting <quote>clauses (ii) or (iii) of subparagraph (A)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCFC03D0C862C417A88FB9508A3CF1077"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to rollover
contributions after December 31, 2013.</text>
</subsection></section><section id="idBA302CC2A96847BF8E769FA7D653F595"><enum>216.</enum><header>Forfeitures
allocated to participant's account may be treated as employer matching or
nonelective contributions</header>
<subsection id="id46A4D62E3E714A65B7EF0F71BEC302C5"><enum>(a)</enum><header>In
general</header><text>Section 401(k)(12), as amended by sections 206 and 213 of
this Act, is amended by redesignating subparagraph (H) as subparagraph (I), and
by inserting after subparagraph (G) the following:</text>
<quoted-block display-inline="no-display-inline" id="idA5D8A0E8B69E455E95114BCAF9BBC396" style="OLC">
<subparagraph id="id5654D621680C402F95975675DECF5DBC"><enum>(H)</enum><header>Treatment of
forfeitures allocated to employee's account</header><text>For purposes of this
paragraph and paragraph (13), an employer may treat a forfeiture allocated to
an employee's account for any plan year as a matching or nonelective
contribution made by the employer which is taken into account in determining
whether the contribution requirements of this paragraph or paragraph (13),
whichever is applicable, are
met.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id949789A1820C4A98955AB69AA95DB8F9"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to plan years
beginning after December 31, 2013.</text>
</subsection></section><section id="idDE47EC571883412EB3A4707CB776E084"><enum>217.</enum><header>Time for
providing explanation of qualified preretirement survivor annuity</header>
<subsection id="id9577979955D44F64B40BD4A06D7727D9"><enum>(a)</enum><header>Amendment to
Internal Revenue Code of 1986</header><text>Subparagraph (B) of section
417(a)(3) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idB2B21339AA7943A8B3C71B9523E87BEB" style="OLC">
<subparagraph id="id1BD2FFD83F3F430AA6A19BDF0AFC8F63"><enum>(B)</enum><header>Explanation of
qualified preretirement survivor annuity</header><text>Each plan shall provide
to each participant, within a reasonable time after the individual becomes a
participant (and consistent with such regulations as the Secretary may
prescribe), a written explanation with respect to the qualified preretirement
survivor annuity comparable to the explanation required under subparagraph (A).
A plan shall be treated as meeting the requirements of this subparagraph if the
explanation is included with each summary plan description required to be
provided to the participant under section 102 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C.
1022).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idC652824E39F046A9B71DDCAE94ACB43D"><enum>(b)</enum><header>Amendment to
Employee Retirement Income Security Act of 1974</header><text>Subparagraph (B)
of section 205(c)(3) of the Employee Retirement Income Security Act of 1974 is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idDE7BEAC2A54C401280CDFE16B61F3847" style="OLC">
<subparagraph id="id119A38D882104F49B822251B79A86F82"><enum>(B)</enum><text>Each plan shall
provide to each participant, within a reasonable time after the individual
becomes a participant (and consistent with such regulations as the Secretary of
the Treasury may prescribe), a written explanation with respect to the
qualified preretirement survivor annuity comparable to the explanation required
under subparagraph (A). A plan shall be treated as meeting the requirements of
this subparagraph if the explanation is included with each summary plan
description required to be provided to the participant under section
102.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id7673A7ED4FE8405B8F5DF7CF475EA756"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to—</text>
<paragraph id="id50518298B38D4AB5A11AC5FB92F9AAB3"><enum>(1)</enum><text>individuals who
become participants after December 31, 2013, and</text>
</paragraph><paragraph id="idDEDE4EA06B834831917762CA40541889"><enum>(2)</enum><text>individuals who
became participants before such date but to whom the written explanation under
<external-xref legal-doc="usc" parsable-cite="usc/26/417">section 417(a)(3)(B)</external-xref> of the Internal Revenue Code of 1986 and section
205(c)(3)(B) of the Employee Retirement Income Security Act of 1974 (as in
effect before such amendments) was not required to be provided before January
1, 2014.</text>
</paragraph><continuation-text continuation-text-level="subsection">In the case
of any individual described in paragraph (2), a plan shall be treated as
meeting the requirements of such sections 417(a)(3)(B) and 205(c)(3)(B) (as in
effect after such amendments) if the written explanation is provided within a
reasonable period after December 31, 2013.</continuation-text></subsection></section><section id="id6B295CE2E0C14F90B73279A6F6D235AC"><enum>218.</enum><header>Modifications
of additional participation requirements for defined benefit plans</header>
<subsection id="id7F688A1BE1854163A1EDAF07A48BDCDA"><enum>(a)</enum><header>In
general</header><text>Section 401(a)(26) is amended by redesignating
subparagraph (H) as subparagraph (J) and by inserting after subparagraph (G)
the following:</text>
<quoted-block display-inline="no-display-inline" id="id98906CB855C247A0A6C8AEF00AF3A019" style="OLC">
<subparagraph id="idADAC0658F6CC47C492125F0D09B63403"><enum>(H)</enum><header>Requirements
may be satisfied through minimum contributions to defined contribution
plan</header>
<clause id="idCAFA4003D73848C59AE9AD6A17F2C529"><enum>(i)</enum><header>In
general</header><text>This paragraph shall not apply to a defined benefit plan
of an employer for any plan year if—</text>
<subclause id="id1DE2B375972D4461B3211AE6920ABEF3"><enum>(I)</enum><text>the defined
benefit plan is aggregated with a defined contribution plan of the employer for
purposes of subsection (a)(4) and section 410(b),</text>
</subclause><subclause id="id34D994C0A9A74B0E838F4AC4D17F45FE"><enum>(II)</enum><text>the defined
benefit plan and the defined contribution plan, when so aggregated, meet the
requirements of subsection (a)(4) and section 410(b), and</text>
</subclause><subclause id="id3A3E0980FBE646CDBA7D3F0150EE741B"><enum>(III)</enum><text>the
contribution requirements of clause (ii) are met with respect to the defined
contribution plan.</text>
</subclause></clause><clause id="id24D6C7EF3133494EA53AF1921AE169F9"><enum>(ii)</enum><header>Contribution
requirements</header><text>The requirements of this clause are met with respect
to a defined contribution plan if, under the plan, the employer is required to
make nonelective contributions for the applicable plan year of at least 7.5
percent of compensation for a number of employees at least equal to the number
of employees which the defined benefit plan would have been required to benefit
under this paragraph without regard to this subparagraph. No highly compensated
employees (within the meaning of section 414(q)) may be taken into account in
determining whether the requirements of this clause are met.</text>
</clause><clause id="idC46711FDB8DF4957924A0CFA530F57A7"><enum>(iii)</enum><header>Applicable
plan year</header><text>For purposes of clause (ii), the term <term>applicable
plan year</term> means the plan year of the defined contribution plan which
ends with or within the plan year of the defined benefit plan to which clause
(i) applies.</text>
</clause></subparagraph><subparagraph id="id11245DCDB1884EC688F9177E149265D4"><enum>(I)</enum><header>Special rules
for frozen plans</header>
<clause id="id5E4B33BA7C8B476EB23943B75DF32AE4"><enum>(i)</enum><header>Aggregation
permitted to satisfy requirements</header>
<subclause id="idD698C656BB68441D894282227473AD7D"><enum>(I)</enum><header>In
general</header><text>Except as provided in subclauses (II) and (III), if a
plan is a frozen defined benefit plan for any plan year, an employer may
aggregate the plan with any other defined benefit plan or defined contribution
plan of the employer for purposes of determining whether the requirements of
this paragraph are met with respect to the frozen defined benefit plan.</text>
</subclause><subclause id="id69C9B32ABB3043D08B0E9579756300D6"><enum>(II)</enum><header>Aggregation
for other purposes</header><text>An employer may not apply subclause (I) unless
the employer also aggregates the plans for purposes of subsection (a)(4) and
section 410(b).</text>
</subclause><subclause id="id3355B4776E344FCFB0867E96561F0085"><enum>(III)</enum><header>Benefits of
highly compensated employees disregarded</header><text>In the case of any other
plan aggregated with a frozen defined benefit plan under subclause (I), accrued
benefits of highly compensated employees shall not be taken into account in
applying subclause (I).</text>
</subclause></clause><clause id="idE2FC068938E6482BA243EDEE034CBE9B"><enum>(ii)</enum><header>Requirements
not to apply in certain cases</header>
<subclause id="id8E4C781D24A6433B9D3D459977C55DD8"><enum>(I)</enum><header>In
general</header><text>Except as provided in subclause (II), this paragraph
shall apply to a frozen defined benefit plan of an employer for any plan year
only if the employer maintains any other defined benefit plan during the 6-year
period beginning with the first day of the plan year.</text>
</subclause><subclause id="idA92F09D1D610459B8268FA24E692F193"><enum>(II)</enum><header>Retroactive
application</header><text>Clause (i) shall not apply unless the frozen defined
benefit plan provides that if the employer establishes or maintains any other
defined benefit plan during the 6-year period under subclause (I), each
employee (other than a highly compensated employee) shall retroactively accrue
benefits under the frozen defined benefit plan for each year of service the
employee would have had under the plan during such period (determined as if the
employee were one of the employees required to benefit under the plan under
this paragraph).</text>
</subclause></clause><clause id="id3840735F5EA94D1997C8EE66CBD097D3"><enum>(iii)</enum><header>Frozen
defined benefit plan</header><text>For purposes of this subparagraph, the term
<term>frozen defined benefit plan</term> means a defined benefit plan which has
in effect an amendment that provides that the plan may not accept any new
participants after the effective date of the amendment.</text>
</clause><clause id="id628D5C54CB1A471994ECBAF2948BEE6A"><enum>(iv)</enum><header>Highly
compensated employee</header><text>The term <term>highly compensated
employee</term> has the meaning given such term by section
414(q).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAA5FAA1533114DF697D5659643B22D11"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section applies to plan years
beginning after December 31, 2013.</text>
</subsection></section><section id="idA4FC64BE9F544C89AA3E6EC505BD8680"><enum>219.</enum><header>Treatment of
custodial accounts on termination of section
<enum-in-header>403(b)</enum-in-header> plans</header>
<subsection id="id5C969C0F70814EF6A96283EF5D87B7C6"><enum>(a)</enum><header>In
general</header><text>Section 403(b)(7) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idD2A76BE780B94C918BEA3D8FD3247F21" style="OLC">
<subparagraph id="id04A4F5D02E194917BDED23D6669681DF"><enum>(D)</enum><header>Treatment of
custodial account upon plan termination</header>
<clause id="id44AB6D5A4C624519BAA3E7DE16E49F77"><enum>(i)</enum><header>In
general</header><text>If—</text>
<subclause id="idD51746A9EECA4F3E80A306727B5B6937"><enum>(I)</enum><text>an employer
terminates the plan under which amounts are contributed to a custodial account
under subparagraph (A), and</text>
</subclause><subclause id="id20BC73E73BD9456CAF072B923B8A7197"><enum>(II)</enum><text>the person
holding the assets of the account has demonstrated to the satisfaction of the
Secretary under section 408(a)(2) that the person is qualified to be a trustee
of an individual retirement plan,</text>
</subclause><continuation-text continuation-text-level="clause">then, as of
the date of the termination, the custodial account shall be deemed to be an
individual retirement plan for purposes of this title.</continuation-text></clause><clause id="id865BF9C38C934814A80387DDB0E8A0D2"><enum>(ii)</enum><header>Treatment as
Roth IRA</header><text>Any custodial account treated as an individual
retirement plan under clause (i) shall be treated as a Roth IRA only if the
custodial account was a designated Roth
account.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6EF62B433298490E90E56E64E72CB8DA"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
terminations occurring after December 31, 2013.</text>
</subsection></section><section id="HDA197A673D7847ACB0D66EDD660EDD2B" section-type="subsequent-section"><enum>220.</enum><header>Secure deferral
arrangements</header>
<subsection id="HB5D18E8AFD5643A2BDCB451DDC1B60A9"><enum>(a)</enum><header>In
general</header><text>Subsection (k) of section 401, as amended by this Act, is
amended by adding at the end the following new paragraph:</text>
<quoted-block id="H00E06EB0837547B993A9B29C398E22ED" style="OLC">
<paragraph id="H2A01A57582EA40C4B20BB4A76516C3A4"><enum>(16)</enum><header>Alternative
method for secure deferral arrangements to meet nondiscrimination
requirements</header>
<subparagraph id="HCD54157DB02B4E18A05CD2014D2E2576"><enum>(A)</enum><header>In
general</header><text>A secure deferral arrangement shall be treated as meeting
the requirements of paragraph (3)(A)(ii).</text>
</subparagraph><subparagraph id="HDADC19CBBFEF40D783C36194476A4228"><enum>(B)</enum><header>Secure deferral
arrangement</header><text>For purposes of this paragraph, the term <term>secure
deferral arrangement</term> means any cash or deferred arrangement which meets
the requirements of subparagraphs (C), (D), and (E) of paragraph (13), except
as modified by this paragraph.</text>
</subparagraph><subparagraph id="H1B288945244540759ACAEB52F4807500"><enum>(C)</enum><header>Qualified
percentage</header><text>For purposes of this paragraph, with respect to any
employee, the term <term>qualified percentage</term> means, in lieu of the
meaning given such term in paragraph (13)(C)(iii), any percentage determined
under the arrangement if such percentage is applied uniformly and is—</text>
<clause id="HEE58CC83CD484BC38997623F0526BF88"><enum>(i)</enum><text>at
least 6 percent, but not greater than 10 percent, during the period ending on
the last day of the first plan year which begins after the date on which the
first elective contribution described in paragraph (13)(C)(i) is made with
respect to such employee,</text>
</clause><clause id="H2776BD0BA12344ECBB9D24A1A1286A43"><enum>(ii)</enum><text>at least 8
percent during the first plan year following the plan year described in clause
(i), and</text>
</clause><clause id="H4B722912C74B4A13ADEFDD9528B59A97"><enum>(iii)</enum><text>at least 10
percent during any subsequent plan year.</text>
</clause></subparagraph><subparagraph id="H71C30EB17BA04B1992BC340DDE8CC42D"><enum>(D)</enum><header>Matching
contributions</header>
<clause id="H18428195FAA0421E8F207D7493991602"><enum>(i)</enum><header>In
general</header><text>For purposes of this paragraph, an arrangement shall be
treated as having met the requirements of paragraph (13)(D)(i) if and only if
the employer makes matching contributions on behalf of each employee who is not
a highly compensated employee in an amount equal to the sum of 50 percent of
the elective contributions of the employee to the extent that such
contributions do not exceed 2 percent of compensation plus 30 percent of so
much of such contributions as exceed 2 percent but do not exceed 10 percent of
compensation.</text>
</clause><clause id="H8CDD6C77202E45369A0E78ACBB6CF7CC"><enum>(ii)</enum><header>Application of
rules for matching contributions</header><text>The rules of clause (ii) of
paragraph (12)(B) and clauses (iii) and (iv) of paragraph (13)(D) shall apply
for purposes of clause (i) but the rule of clause (iii) of paragraph (12)(B)
shall not apply for such purposes. The rate of matching contribution for each
incremental deferral must be at least as high as the rate specified in clause
(i), and may be higher, so long as such rate does not increase as an employee’s
rate of elective contributions
increases.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8B8813E540014EC694A405A9FC942D50"><enum>(b)</enum><header>Matching
contributions and employee contributions</header><text>Subsection (m) of
section 401 is amended by redesignating paragraph (13) as paragraph (14) and by
adding after paragraph (12) the following new paragraph:</text>
<quoted-block id="H8DB4E1DF1DEE4380BC2C0F6C49A34A3F" style="OLC">
<paragraph id="H0EC6F0E869854AFEB48025CAF4A07C6E"><enum>(13)</enum><header>Alternative
method for secure deferral arrangements</header><text>A defined contribution
plan shall be treated as meeting the requirements of paragraph (2) with respect
to matching contributions and employee contributions if the plan—</text>
<subparagraph id="HBA6DCB5D155D4419945B000030098EC8"><enum>(A)</enum><text>is a secure
deferral arrangement (as defined in subsection (k)(16)),</text>
</subparagraph><subparagraph id="H97099FFCC60E458A9DFDFA4251AD8272"><enum>(B)</enum><text>meets the
requirements of clauses (ii) and (iii) of paragraph (11)(B), and</text>
</subparagraph><subparagraph id="H363B94AE2A8E4502B827586EEF99B647"><enum>(C)</enum><text>provides that
matching contributions on behalf of any employee may not be made with respect
to an employee’s contributions or elective deferrals in excess of 10 percent of
the employee’s
compensation.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HAA8E9A2425D84959A48041AD914DC4A6"><enum>(c)</enum><header>Tax
credit</header>
<paragraph id="H3337E15CB49348C7B33A3BF6B79424CA"><enum>(1)</enum><header>In
general</header><text>Subpart (D) of part IV of subchapter A of Chapter 1 of
subtitle A is amended by adding at the end thereof the following new
section:</text>
<quoted-block id="HB07BCAFB8709482AA4EAAEB17CECAE24" style="OLC">
<section id="HDAAD104046DF4D068F7B1E8DF1DEB353"><enum>45S.</enum><header>Secure deferral
arrangements</header>
<subsection id="HBBF0CB8BE02D4D0DB4FF1BA01D52BBBE"><enum>(a)</enum><header>In
general</header><text>For purposes of section 38, in the case of an eligible
employer maintaining a qualified employer plan (as defined in clauses (i) and
(ii) of section 4972(d)(1)(A)), the secure deferral arrangement credit
determined under this section for any taxable year is an amount equal to 10
percent of all matching and nonelective contributions under a secure deferral
arrangement (as defined in section 401(k)(16)) made during the plan year ending
with or within the taxable year of the eligible employer by or on behalf of
employees other than highly compensated employees (as defined in section
414(q)).</text>
</subsection><subsection id="HA613CF8C99A84D4D8F819E718C7BF281"><enum>(b)</enum><header>Dollar
limitation</header><text>The amount of the credit determined under this section
for any taxable year shall not exceed—</text>
<paragraph id="H8DFEA081FA4A4E6AB4C8FF2EA7C10631"><enum>(1)</enum><text>$10,000 for the
first credit year and each of the 2 taxable years immediately following the
first credit year, and</text>
</paragraph><paragraph id="HEB96EED5B5CA4EEC8DE01DBA5B4C7B54"><enum>(2)</enum><text>zero for any other
taxable year.</text>
</paragraph></subsection><subsection id="HC67EFD7AF6E14113B0AD4D2AF2EC82DF"><enum>(c)</enum><header>First credit
year</header><text>The term <term>first credit year</term> means—</text>
<paragraph id="H24FB6A180BF24F70A357E5674FE7231C"><enum>(1)</enum><text>the taxable year
of the eligible employer with which or within which ends the first plan year
during which the secure deferral arrangement was in effect for the entire year,
or</text>
</paragraph><paragraph id="H6401FC636A9745BEACFFF1CA9E546AA6"><enum>(2)</enum><text>at the election of
the eligible employer, the taxable year preceding the taxable year referred to
in paragraph (1).</text>
</paragraph></subsection><subsection id="H7781DA8C03E547A4BE45306BB4C6F2EB"><enum>(d)</enum><header>Definition and
special rules</header>
<paragraph id="H4ECD2D7CE7414C02B033B9D08AF6634F"><enum>(1)</enum><header>Eligible
employer</header><text>The term <term>eligible employer</term> has the meaning
given such term by section 408(p)(2)(C)(i).</text>
</paragraph><paragraph id="HFD595184ED80433B82C981D27D408087"><enum>(2)</enum><header>Aggregation</header><text>All
persons treated as a single employer under subsection (a) or (b) of section 52,
or subsection (m) or (o) of section 414, shall be treated as one person. All
qualified employer plans of an eligible employer shall be treated as 1
qualified employer plan.</text>
</paragraph><paragraph id="H7329B350DE2B4F4FB6776B07CE06F16E"><enum>(3)</enum><header>Disallowance of
deduction</header><text>No deduction shall be allowed for that portion of the
contribution for the taxable year which is equal to the credit determined under
subsection (a).</text>
</paragraph><paragraph id="H9C1EDEB038124AB18B7E956753A866A7"><enum>(4)</enum><header>Election not to
claim credit</header><text>This section shall not apply to a taxpayer for any
taxable year if such taxpayer elects to have this section not apply for such
taxable year. Any such taxable year shall not be taken into account under
subsection
(b).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3EF450FAC475417B80FEF2D0B6522276"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="HD09028E32E21410DA39EDD600AC1921E"><enum>(A)</enum><header>General business
credit</header><text>Subsection (b) of section 38 is amended by striking
<quote>plus</quote> at the end of paragraph (35), by striking the period at the
end of paragraph (36) and inserting <quote>, plus</quote>, and by adding at the
end the following:</text>
<quoted-block id="H9A50DDEC93F44201903F344EC4FC1EE7" style="OLC">
<paragraph id="H5C7538D519FC4E68AF9C9A3BCD0AF3B0"><enum>(37)</enum><text>the secure
deferral arrangement credit determined under section
45S.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HE62FCB1B456244BBA4EE79C21C119F60"><enum>(B)</enum><header>Credit
cross-references</header>
<clause id="H24CCA88073484BB49F71EE509155F41A"><enum>(i)</enum><text>Subsection (k) of
section 401, as amended by subsection (a), is amended by adding at the end the
following new paragraph:</text>
<quoted-block id="HA10D8889833D4821BFAB33EC80133518" style="OLC">
<paragraph id="H579CC30827194BA0A876D403CFEE2C8A"><enum>(17)</enum><header>Secure deferral
arrangement credit</header><text>For a general business credit with respect to
secure deferral arrangements, see section
45S.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause commented="no" id="HBBB52607BC6C456199543C61A74EAFE6"><enum>(ii)</enum><text>Subsection (m) of
section 401, as amended by subsection (b), is amended by redesignating
paragraph (14) as paragraph (15) and by inserting after paragraph (13) the
following new paragraph:</text>
<quoted-block id="H085EE69637C64BABAAD14C60E705D992" style="OLC">
<paragraph commented="no" id="H7D68BCA387224267AF14CE969025B43B"><enum>(14)</enum><header>Secure deferral
arrangement credit</header><text>For a general business credit with respect to
secure deferral arrangements, see section
45S.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph></subsection><subsection id="H57774A686050458DB0AD7BC040F4731B"><enum>(d)</enum><header>Facilitating
qualified automatic contribution arrangements and secure deferral
arrangements</header><text>By no later than the date that is twelve months
after the date of enactment of this Act, the Secretary of the Treasury shall
prescribe rules that facilitate the administration of qualified automatic
contribution arrangements (as defined in section 401(k)(13) of the Internal
Revenue Code of 1986) and secure deferral arrangements (as defined in section
401(k)(16) of such Code). Such rules shall—</text>
<paragraph id="H7C2AC18095D647EC85DCAACAF23CC33B"><enum>(1)</enum><text>clarify, simplify,
and provide safe harbors with respect to the application of the notice
requirements described in section 401(k)(13)(E) of such Code, especially in
cases where—</text>
<subparagraph id="H2B8ED132CF294C4DBC4B630612021CC1"><enum>(A)</enum><text>employees become
eligible under such arrangements upon becoming employed or shortly thereafter,
or</text>
</subparagraph><subparagraph id="H601D8B3D1BEF4F14B5C4AB4C77AE2F2B"><enum>(B)</enum><text>the employer has
employees subject to different payroll and administrative systems, and</text>
</subparagraph></paragraph><paragraph id="H15FAA23AD69647879954F2F84567CD69"><enum>(2)</enum><text>clarify, simplify,
and provide safe harbors with respect to the timing of the increases in the
qualified percentage described in subclauses (II), (III), and (IV) of section
401(k)(13)(C)(iii) of such Code and in clauses (ii) and (iii) of section
401(k)(16)(C) of such Code, especially in cases where the employer has
employees subject to different payroll and administrative systems.</text>
</paragraph></subsection><subsection id="H58CB6D7B582F43408371E35EFD0EC939"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="H8E8440EB21C24CAE90F0823FDBC262FB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The amendments made
by subsections (a) and (b) shall apply to plan years beginning after December
31, 2013.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0ED069796D9B4558AA6F698195A0D8EA"><enum>(2)</enum><header>Tax
credit</header><text>The amendments made by subsection (c) shall apply to
taxable years beginning after December 31, 2013.</text>
</paragraph></subsection></section><section id="H92050BF36FB849EC9CA7445A46300C55"><enum>221.</enum><header>Portability of
lifetime income options</header>
<subsection id="H67C10081AC6D428995EEDB7F8829A6B6"><enum>(a)</enum><header>In
general</header><text>Subsection (a) of section 401 is amended by inserting
after paragraph (37) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HFC92E15B05434D67BADA8BE614E2830E" style="OLC">
<paragraph id="H1CB4A27F6FDD4E6BA085519C38FBD0B9"><enum>(38)</enum><header>Portability of
lifetime income</header>
<subparagraph id="HD1E7B6F7FAC84DB1A63CD1452CC825B3"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="H26A01EE513104F25A931DD9A704E0522"><enum>(i)</enum><text>qualified
distributions of a lifetime income investment, or</text>
</clause><clause id="HF21B6B64BDFE49A0B01D459032166808"><enum>(ii)</enum><text>distributions of
a lifetime income investment in the form of a qualified plan distribution
annuity contract,</text>
</clause><continuation-text continuation-text-level="subparagraph">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 except as may otherwise be provided by regulations.</continuation-text></subparagraph><subparagraph id="H451AB3D696454AF3AA0F87CD8C8D9FA1"><enum>(B)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<clause id="H5D39CB5E0E914068ACBC93EE528EFD28"><enum>(i)</enum><text>the term
<term>qualified distribution</term> means a direct trustee-to-trustee transfer
to an eligible retirement plan (as defined in section 402(c)(8)(B)), as
described in section 401(a)(31)(A),</text>
</clause><clause id="H43F64D340AC04092BC22212FFEA4B235"><enum>(ii)</enum><text>the term
<term>lifetime income investment</term> means an investment option that is
designed to provide an employee with election rights—</text>
<subclause id="H06ED08CD8E77403483B91603C0DEB7C2"><enum>(I)</enum><text>that are not
uniformly available with respect to other investment options under the plan,
and</text>
</subclause><subclause id="H9B0831948C214793875C1D9AB470D4AB"><enum>(II)</enum><text>that are to a
lifetime income feature available through a contract or other arrangement
offered under the plan or under another eligible retirement plan (as defined in
section 402(c)(8)(B)) through a direct trustee-to-trustee transfer to such
other eligible retirement plan under section 401(a)(31)(A),</text>
</subclause></clause><clause id="H59BD07588B6149D2AC951891D6356B84"><enum>(iii)</enum><text>the term
<term>lifetime income feature</term> means—</text>
<subclause id="H3AEB72C45A0E4A8096F1418F602C9D29"><enum>(I)</enum><text>a feature that
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</text>
</subclause><subclause id="H4247B2F0BC4D4342B199CFBB4014F1CB"><enum>(II)</enum><text>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, taking into account the rules of clause (iii) of
section 401(a)(9)(I), and</text>
</subclause></clause><clause id="H93D2DCBCB2434EC692FD5F86A2986575"><enum>(iv)</enum><text display-inline="yes-display-inline">the term <term>qualified plan distribution
annuity contract</term> means an annuity contract purchased for a participant
and distributed to the participant by a plan described in subparagraph (B) of
section 402(c)(8) (without regard to clauses (i) and (ii)
thereof).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1E85AC1AB4C141C2B76218BA038B40C1"><enum>(b)</enum><header>Cash or deferred
arrangement</header><text>Clause (i) of section 401(k)(2)(B) is amended by
striking <quote>or</quote> at the end of subclause (IV), by striking
<quote>and</quote> at the end of subclause (V) and inserting <quote>or</quote>,
and by adding at the end of clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="H7F9B7777E7C5496894C27BCF27AEED6E" style="OLC">
<subclause id="H43E48272831E4C1983F13153B50CD443"><enum>(VI)</enum><text display-inline="yes-display-inline">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, provided that any
distribution under this subclause must be 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)),
and</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H00D9C82A340143D48DB3B8D391B6F9E3"><enum>(c)</enum><header>Section
403(<enum-in-header>b</enum-in-header>) plans</header>
<paragraph id="HAAF313A48A4B4A118AC4E17E03C6D4FC"><enum>(1)</enum><header>Annuity
contracts</header><text>Paragraph (11) of section 403(b) is amended by striking
<quote>or</quote> at the end of subparagraph (B), by striking the period at the
end of subparagraph (C), and by inserting <quote>, or</quote>, and by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2D54DD9CC1D74879B4FBF047F3B7D7EE" style="OLC">
<subparagraph id="H4298CA18326D41ADA0992574F559F445"><enum>(D)</enum><text display-inline="yes-display-inline">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, provided that any
distribution under this subparagraph must be 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)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1F8AC1C50C7A4A46935A5A6D9188B1BB"><enum>(2)</enum><header>Custodial
accounts</header><text>Clause (ii) of section 403(b)(7)(A) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H7A66BC46EF654E44A4164F19118FE183" style="OLC">
<clause id="H859E1386AE864638B21DC7B97E291E4F"><enum>(ii)</enum><text>under the
custodial account, 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—</text>
<subclause id="H6DA762052B14478DAA73EE0A23631928"><enum>(I)</enum><text>the employee
dies,</text>
</subclause><subclause id="HFCC1D3FEF072459491CA8CCEAA47890B"><enum>(II)</enum><text>the employee
attains age 59½,</text>
</subclause><subclause id="H1C86E4C689074A97B459FF2D541CCA4C"><enum>(III)</enum><text>the employee has
a severance from employment,</text>
</subclause><subclause id="HB189952276C34610BECDE465C4B5B579"><enum>(IV)</enum><text>the employee
becomes disabled (within the meaning of section 72(m)(7)),</text>
</subclause><subclause id="H86BE9F2D6AAA46818023EF83D28ADFA0"><enum>(V)</enum><text>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</text>
</subclause><subclause id="HE88D37033F924C42B01E0D728A1E4894"><enum>(VI)</enum><text display-inline="yes-display-inline">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, provided that any
distribution under this subparagraph must be 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)).</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H8D38287E4FE148059448A6ECA958EED6"><enum>(d)</enum><header>Eligible
deferred compensation plans</header><text>Subparagraph (A) of section 457(d)(1)
is amended by striking <quote>or</quote> at the end of clause (ii), by
inserting <quote>or</quote> at the end of clause (iii), and by adding after
clause (iii) the following:</text>
<quoted-block display-inline="no-display-inline" id="H6E645536FA78442A854FEB34EC0849B5" style="OLC">
<clause id="H25002E6A0C8B47508E462BB7955558A2"><enum>(iv)</enum><text display-inline="yes-display-inline">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, provided that any
distribution under this subparagraph must be 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)),</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA5E61E09B2064389B8D6D1E84C4E1D77"><enum>(e)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to plan years beginning after December 31,
2013.</text>
</subsection></section><section id="H89F0DCDCB85446E58E4EA980E7C8693D" section-type="subsequent-section"><enum>222.</enum><header>Consolidation of
defined contribution plan notices</header>
<subsection id="H033714EE55734F589636D298F0B1ECAF"><enum>(a)</enum><header>In
general</header>
<paragraph id="H8B7467F966DE499FAC9C1B46D6CB5541"><enum>(1)</enum><text display-inline="yes-display-inline">Not later than 18 months after the date of
the enactment of this Act, the Secretary of Labor and the Secretary of the
Treasury shall adopt final regulations providing that a plan may, but is not
required to, consolidate two or more of the notices required under sections
404(c)(5)(B) and 514(e)(3) of the Employee Retirement Income Security Act of
1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1144">29 U.S.C. 1144(e)(3)</external-xref>), sections 401(k)(12)(D), 401(k)(13)(E), and
414(w)(4) of the Internal Revenue Code of 1986, and section 2550.404a–5 of
title 29, Code of Federal Regulations (29 C.F.R. 2550.404a–5) into a single
notice or, to the extent provided by such regulations, consolidate such notices
with the summary plan description or summary of material modifications
described in section 104(b) of the Employee Retirement Income Security Act of
1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(b)</external-xref>), so long as the combined notice, summary plan
description or summary of material modifications includes the required content,
clearly identifies the issues addressed therein, and is provided at the time
and with the frequency required for each such notice.</text>
</paragraph><paragraph id="HE2DD380E1C6B49B992205189BA4DC70F"><enum>(2)</enum><text>The Secretary of
Labor and the Secretary of the Treasury may include in such regulations rules
to ensure that, to the extent such notices are consolidated with the summary
plan description or summary of material modifications, the presentation,
placement, or prominence of the information in such notices shall not have the
effect of failing to inform participants and beneficiaries regarding the
information in such notices.</text>
</paragraph></subsection><subsection id="H48827C0D10594E129D2E146538C09B6B"><enum>(b)</enum><header>Provision of
annual notices without regard to plan year</header>
<paragraph id="H9FD5F783F804478F8B478559368EA271"><enum>(1)</enum><text>Clause (i) of
section 404(c)(5)(B) of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1104(c)(5)(B)) is amended—</text>
<subparagraph id="HEE0C7CD70B0148E68204535851C59C11"><enum>(A)</enum><text>in subclause (I)
by striking <quote>within a reasonable period of time before each plan
year,</quote> and inserting <quote>within a reasonable period before the
arrangement described in subparagraph (A) applies to such participant or
beneficiary, and thereafter at least once within any 12-month period (without
regard to the plan year) during which such arrangement applies,</quote>,
and</text>
</subparagraph><subparagraph id="H743091BCDA1844E491888F7567012D58"><enum>(B)</enum><text>in subclause (II)
by striking <quote>and before the beginning of the plan year</quote>.</text>
</subparagraph></paragraph><paragraph id="H882DC7886438444EBD59452E332A6BFA"><enum>(2)</enum><text>Subparagraph (A)
of section 514(e)(3) of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1144(e)(3)(A)) is amended by striking <quote>, within a reasonable
period before such plan year, provide to each participant to whom the
arrangement applies for such plan year</quote> and inserting <quote>, within a
reasonable period before the arrangement applies to a participant or
beneficiary, and thereafter at least once within any 12-month period (without
regard to the plan year) during which such arrangement applies,
provide</quote>.</text>
</paragraph><paragraph id="H56E771FB870D48A396CD6C35AB93D89F"><enum>(3)</enum><text>Clause (i) of
<external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(13)(E)</external-xref> of the Internal Revenue Code of 1986 is amended by
striking <quote>, within a reasonable period before each plan year, each
employee eligible to participate in the arrangement for such year
receives</quote> and inserting <quote>each employee eligible to participate in
the arrangement receives, within a reasonable period before the employee
becomes eligible, and thereafter within a reasonable period before each plan
year during which such arrangement applies,</quote>.</text>
</paragraph><paragraph id="H8FD0007A8E47492D9EBE31442EC61548"><enum>(4)</enum><text>Subparagraph (D)
of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(12)</external-xref> of the Internal Revenue Code of 1986 is amended by
striking <quote>, within a reasonable period before any year, given written
notice</quote> and inserting <quote>given written notice, within a reasonable
period before the employee becomes eligible, and thereafter within a reasonable
period before each plan year during which such arrangement
applies,</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDDEFC23C97654BA69B03DFD15260F161"><enum>(5)</enum><text>Subparagraph (A)
of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(w)(4)</external-xref> of the Internal Revenue Code of 1986 is amended by
striking <quote>, within a reasonable period before each plan year, give to
each employee to whom an arrangement described in paragraph (3) applies for
such plan year</quote> and inserting <quote>, within a reasonable period before
an arrangement described in paragraph (3) applies to an employee, and
thereafter at least once within any 12-month period (without regard to the plan
year) during which such arrangement applies, give to each such
employee</quote>.</text>
</paragraph></subsection></section><section commented="no" id="H0B5602CFCAF14E7E8CA07504575D8237"><enum>223.</enum><header>Performance
benchmarks for asset allocation funds</header><text display-inline="no-display-inline">Not later than six months after the date of
enactment of this Act, the Secretary of Labor shall modify the regulations
under section 404 of the Employee Retirement Income Security Act of 1974 to
provide that, in the case of a designated investment alternative that contains
a mix of asset classes, a plan administrator may, but is not required to, use a
benchmark that is a blend of different broad-based securities market indices
if—</text>
<paragraph id="H604248729B3E478D9FF41D9FE2679E55"><enum>(1)</enum><text>the blend is
reasonably representative of the asset class holdings of the designated
investment alternative;</text>
</paragraph><paragraph id="HE399D16D5A684833A04FCFC07C0C7D55"><enum>(2)</enum><text display-inline="yes-display-inline">for purposes of determining the blend’s
returns for 1-, 5-, and 10-calendar year periods (or for the life of the
alternative, if shorter), the blend is modified at least once per year to
reflect changes in the asset class holdings of the designated investment
alternative; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H41EBC28514EA4BAAAC4DC9D671E0E866"><enum>(3)</enum><text>each securities
market index that is used for an associated asset class would separately
satisfy the requirements of such regulations for such asset class.</text>
</paragraph></section></subtitle><subtitle id="id451CE31DBEE94BA593C1117C895D3667"><enum>C</enum><header>Longevity
reforms</header>
<section id="id8F8D9DAD4AE84AD0BB7A7BFDDC6A202C"><enum>231.</enum><header>Modification
of required minimum distribution rules where portion of benefit of defined
contribution plan is annuitized</header>
<subsection id="idDD99553DFF464DF5BE7DC7956E053664"><enum>(a)</enum><header>In
general</header><text>Section 401(a)(9) is amended by redesignating
subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E)
the following:</text>
<quoted-block display-inline="no-display-inline" id="idCA5481E80276478DB17F54D5AFC5D72A" style="OLC">
<subparagraph id="id1D2ACF6F6C91460192EAE4406851746E"><enum>(F)</enum><header>Exemption for
certain annuitized amounts</header><text>This paragraph shall not apply to the
portion of an employee's entire interest under a defined contribution plan
which is invested in a qualified deferred annuity in accordance with the
requirements of subsection
(o).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2C424E5D5C564DB5B74CBDA287A0E62E"><enum>(b)</enum><header>Investment in
qualified annuity</header><text>Section 401 is amended by redesignating
subsection (o) as subsection (p) and by inserting after subsection (n) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id3F1BB6CE96AA4656AFBC216FBF3CED64" style="OLC">
<subsection id="id6A56FB06868942E9883A7AF3BAC52F09"><enum>(o)</enum><header>Rules and
definitions relating to investments in qualified deferred annuities</header>
<paragraph id="id394273520CA445A08DFBC812487688F4"><enum>(1)</enum><header>In
general</header><text>Subparagraph (F) of subsection (a)(9) shall apply to the
portion of an employee's entire interest under the plan invested in a qualified
deferred annuity only if—</text>
<subparagraph id="id1919DA0A76A54D8595EC3B4BECF1D3BC"><enum>(A)</enum><text>the annuity
contract is purchased on or before the required beginning date, and</text>
</subparagraph><subparagraph id="idE9F48352973E492E989926D759BA3DA9"><enum>(B)</enum><text>the investment in
the contract does not exceed 25 percent of the employee's entire interest under
the plan as of the close of the calendar year preceding the calendar year in
which the purchase occurs.</text>
</subparagraph></paragraph><paragraph id="id768F21A7DF36484B9D492626DAB59327"><enum>(2)</enum><header>Exception
applies only to 1 annuity</header><text>Subparagraph (F) of subsection (a)(9)
shall apply only with respect to 1 qualified deferred annuity purchased with a
portion of an employee's interest in any plan.</text>
</paragraph><paragraph id="idF27B6F939B104F6BA7D1F273D65172C8"><enum>(3)</enum><header>Qualified
deferred annuity</header><text>For purposes of subsection (a)(9)(F) and this
subsection, the term <term>qualified deferred annuity</term> means an annuity
contract—</text>
<subparagraph id="id41E9C19EE79345BAA73486CF88A29398"><enum>(A)</enum><text>which is a
commercial annuity (as defined in section 3405(e)(6)) which provides benefits
in the form of either—</text>
<clause id="id71D6A133201647D0B96F06C7FA283C88"><enum>(i)</enum><text>a
single annuity for the life of the employee under which the annuity payments
are substantially equal periodic payments made not less frequently than
annually, or</text>
</clause><clause id="idB27A18FF4040494AA06AC96E3B3E34BB"><enum>(ii)</enum><text>a qualified
joint and survivor annuity (as defined in section 417(b)) which is the
actuarial equivalent of an annuity under clause (i), and</text>
</clause></subparagraph><subparagraph id="id7DCBB30973784E3097F99AC286E41AB1"><enum>(B)</enum><text>under which
payments are deferred but must commence no later than the date on which the
employee attains the age of 85.</text>
</subparagraph></paragraph><paragraph id="id879D39EBCD4D416F893A74ED595D74B9"><enum>(4)</enum><header>Employee dying
before distributions begin</header><text>If—</text>
<subparagraph id="idC568B9FA015540B681D03D6263DC76B9"><enum>(A)</enum><text>an employee dies
before the distribution of the employee's interest has begun in accordance with
subsection (a)(9)(A)(ii) and before the employee has invested in a qualified
deferred annuity in accordance with this subsection, and</text>
</subparagraph><subparagraph id="id49287EA59231405F81B714CD5050E176"><enum>(B)</enum><text>the designated
beneficiary is the surviving spouse of the employee,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">the
surviving spouse may invest any portion of the entire interest in a qualified
deferred annuity in accordance with this subsection in the same manner as the
employee but the required beginning date shall not be earlier than, and the
deferral period of the annuity shall be based on, the dates the employee would
have attained the age of 70<fraction>½</fraction> or 85, respectively.</continuation-text></paragraph><paragraph id="id51ED92ACB98F454BB4C5FABA3CFF510C"><enum>(5)</enum><header>Special rule
for IRAs and <enum-in-header>403(b)</enum-in-header>s</header><text>In the case
of individual retirement plans and annuity contracts to which the requirements
of subsection (a)(9) apply by reason of subsections (a)(6) and (b)(3) of
section 408 and section 403(b)(10), the employee may elect to treat all such
plans and accounts with the same required beginning date as 1 plan for purposes
of applying this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idE815FEBE76D2413CA1D0D950858C46E5"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
investments in annuity contracts after December 31, 2013.</text>
</subsection></section><section id="id3AB7B86C6A664C7D9B893184B3CA99BC"><enum>232.</enum><header>Updating of
mortality tables for minimum required distributions</header><text display-inline="no-display-inline">Section 401(a)(9), as amended by section
231, is amended by redesignating subparagraph (G) as subparagraph (H) and by
inserting after subparagraph (F) the following:</text>
<quoted-block display-inline="no-display-inline" id="id3FBCFE71BA0743D690D573E7E18998A2" style="OLC">
<subparagraph id="idE787F579260847BCAA2740AAB0EBF6B5"><enum>(G)</enum><header>Mortality
tables</header>
<clause id="idAC5354EE8E484974BADFE7CECE5D16FA"><enum>(i)</enum><header>Initial
update</header><text>Not later than 1 year after the date of the enactment of
this subparagraph, the Secretary shall either update, or provide new tables to
replace, the mortality tables used as of such date for purposes of this
paragraph.</text>
</clause><clause id="id0315AD7891FD407B839DEE83AB73852D"><enum>(ii)</enum><header>Periodic
revision</header><text>The Secretary shall (at least every 5 years) make
revisions in, or provide new tables to replace, any table in effect under this
subparagraph to reflect the actual experience of pension plans and projected
trends in such experience.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id300CE903F1C4491B8782D37A93171115"><enum>(iii)</enum><header>Effective
date</header><text>Any table prescribed under this subparagraph shall apply to
plan years beginning after the date which is 1 year after publication of the
final
table.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idAE9EF99E45DA4A0A9B97AA9DFC255DF8"><enum>233.</enum><header>Minimum
required distributions may be rolled over into Roth IRAs</header>
<subsection id="id14109514447848E0971A2BE4846E28F7"><enum>(a)</enum><header>In
general</header><text>Section 408A(e) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idDF0EB9006BAC4DE19E905973F3A0B0D7" style="OLC">
<paragraph id="id1B6483FFF94D4F2981E7D735A0C5DD91"><enum>(3)</enum><header>Rollover of
minimum required distributions allowed</header><text>Section 408(d)(3)(E) shall
not apply in determining whether a rollover contribution is a qualified
rollover distribution under paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id31A8DB9A83754D18AB92DC797AA634C5"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
distributions for taxable years beginning after December 31, 2013.</text>
</subsection></section><section id="id05FBCB73D749453DA5D4D76AE7228487"><enum>234.</enum><header>Transfer of
minimum survivor annuity requirements from plan sponsors to annuity
providers</header>
<subsection id="idD9AC63B5604F4A2EB11B1DD81A1FAEE6"><enum>(a)</enum><header>Amendment of
1986 Code</header><text>Section 417 is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idBF0A5D9DDF0E4DF59EEE895443D0DBF4" style="OLC">
<subsection id="id469E4C7391DC4BE2BFA1DB58AC532ADE"><enum>(h)</enum><header>Transfer of
minimum survivor annuity requirements from plan sponsors to annuity
providers</header>
<paragraph id="id770E1AC1E2F449249D69A76EAE3A71D5"><enum>(1)</enum><header>In
general</header><text>If a defined contribution plan to which the requirements
of section 401(a)(11) and this section apply has a designated annuity provider,
then, except as provided in paragraph (3), the designated annuity provider (and
not any plan sponsor or administrator) shall be liable for any failure to meet
any such requirement.</text>
</paragraph><paragraph id="id2CBA0927F90440CF8B8A1EEEA8F8A636"><enum>(2)</enum><header>Designated
annuity provider</header><text>For purposes of this subsection, the term
<term>designated annuity provider</term> means a person licensed under the laws
of any State to issue annuity contracts which has entered into a contract with
the plan sponsor or other person who is a fiduciary with respect to the plan
to—</text>
<subparagraph id="id63847EE1EAD048A0888493A249FE63B9"><enum>(A)</enum><text>provide annuity
contracts to participants and beneficiaries under the plan, and</text>
</subparagraph><subparagraph id="idA0EF4ACD29474E85BBAA32F581D6F138"><enum>(B)</enum><text>meet all
requirements under this section and section 401(a)(11) with respect to the
providing of such annuities, including providing such annuities in the proper
form, providing any notice or written explanations during any applicable notice
period, and providing the opportunity for participants and their spouses or
beneficiaries to make appropriate elections during any applicable election
period.</text>
</subparagraph></paragraph><paragraph id="idD7DC51824B94423C83CDA7AA1A099134"><enum>(3)</enum><header>Requirement for
prudent solicitation and retention of provider</header><text>This subsection
shall apply to a plan with a designated annuity provider only if the plan
sponsor or other person who is a fiduciary with respect to the plan met all
requirements for the prudent selection and periodic review of the annuity
provider with respect to whom a contract described in paragraph (2) was entered
into.</text>
</paragraph><paragraph id="idE484D564DE2D455DB3371FC0AF726849"><enum>(4)</enum><header>Authority to
charge fees to participants</header><text>A plan shall not be treated as
failing to meet the requirements of this subsection merely because plan assets
are used to pay for reasonable expenses of the designated annuity provider in
meeting the requirements described in paragraph (2)(B).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3C29FF43503A4589B1415B62516C15D0"><enum>(5)</enum><header display-inline="yes-display-inline">Electronic notification</header><text display-inline="yes-display-inline">The Secretary shall, to the maximum extent
practicable, ensure that notices and explanations provided by the designated
annuity provider are provided in electronic
form.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id77EA9027C4A645AAAB68C51C75726B9A"><enum>(b)</enum><header>Amendment of
ERISA</header><text>Section 205 of the Employee Retirement Income Security Act
of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1055">29 U.S.C. 1055</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA302F3D18EC645F7B0A3E19EB84B1485" style="OLC">
<subsection id="id953FB75C5131455F82D48526C3504294"><enum>(m)</enum><header>Transfer of
minimum survivor annuity requirements from plan sponsors to annuity
providers</header>
<paragraph id="id5C61AC75D3EA4520805BEA2347A23BB8"><enum>(1)</enum><header>In
general</header><text>If an individual account plan to which the requirements
of this section apply has a designated annuity provider, then, except as
provided in paragraph (3), the designated annuity provider (and not any plan
sponsor or administrator) shall be liable for any failure to meet any such
requirement.</text>
</paragraph><paragraph id="id06963C1EF83E4D47A975FA4FF4ACF66C"><enum>(2)</enum><header>Designated
annuity provider</header><text>For purposes of this subsection, the term
<term>designated annuity provider</term> means a person licensed under the laws
of any State to issue annuity contracts which has entered into a contract with
the plan sponsor or other person who is a fiduciary with respect to the plan
to—</text>
<subparagraph id="id79DFC42C29DB4D45A1DED6CA57368EC7"><enum>(A)</enum><text>provide annuity
contracts to participants and beneficiaries under the plan, and</text>
</subparagraph><subparagraph id="id0E4BE48D926648CBA8947FA920A46A63"><enum>(B)</enum><text>meet all
requirements under this section and section 401(a)(11) of the Internal Revenue
Code of 1986 with respect to the providing of such annuities, including
providing such annuities in the proper form, providing any notice or written
explanations during any applicable notice period, and providing the opportunity
for participants and their spouses or beneficiaries to make appropriate
elections during any applicable election period.</text>
</subparagraph></paragraph><paragraph id="idC881A086DD044297BF34070D7DA8CCED"><enum>(3)</enum><header>Requirement for
prudent solicitation and retention of provider</header><text>This subsection
shall apply to a plan with a designated annuity provider only if the plan
sponsor or other person who is a fiduciary with respect to the plan met all
requirements for the prudent selection and periodic review of the annuity
provider with respect to whom a contract described in paragraph (2) was entered
into.</text>
</paragraph><paragraph id="id2EE5E2E2345A4C57B968280D430176A9"><enum>(4)</enum><header>Authority to
charge fees to participants</header><text>A plan shall not be treated as
failing to meet the requirements of this subsection merely because plan assets
are used to pay for reasonable expenses of the designated annuity provider in
meeting the requirements described in paragraph (2)(B).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id87CB2EFC23BC4A85A0FA03C582B0EB9C"><enum>(5)</enum><header display-inline="yes-display-inline">Electronic notification</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall, to the
maximum extent practicable, ensure that notices and explanations provided by
the designated annuity provider are provided in electronic
form.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id74077C26FA744ABBA99642CE20F343F4"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2013.</text>
</subsection></section><section id="H72AD9601B83C4766A1C742178FC168A6"><enum>235.</enum><header>Expansion of
Employee Plans Compliance Resolution System</header>
<subsection id="H0001F6C49BF1490AB8DD6DE5D3B80F5E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than one
year after the date of the enactment of this Act, the Secretary of the Treasury
shall modify the Employee Plans Compliance Resolution System (as described in
Revenue Procedure 2013–12) to achieve the results specified in the succeeding
subsections of this section and to further facilitate corrections and
compliance in such other means as the Secretary deems appropriate.</text>
</subsection><subsection id="HFD351B97AFFA4833B6FCBC6A2FF724CC"><enum>(b)</enum><header>Loan
error</header>
<paragraph id="H980361B628AD487595DAD2A8F64248FF"><enum>(1)</enum><text display-inline="yes-display-inline">In the case of plan loan errors for which
corrections are specified under the voluntary compliance program,
self-correction shall be made available by methods applicable to such loans
through the voluntary compliance program.</text>
</paragraph><paragraph id="HB76F0162E734414FB19FA88B87F5BC3F"><enum>(2)</enum><text>The Secretary of
Labor shall treat any loan error corrected pursuant to paragraph (1) as meeting
the requirements of the Voluntary Fiduciary Correction Program of the
Department of Labor.</text>
</paragraph></subsection><subsection id="HCC2F911C26944AB28BD1530DAFE8FFC6"><enum>(c)</enum><header>457(<enum-in-header>b</enum-in-header>)
plan correction</header><text display-inline="yes-display-inline">The Secretary
of the Treasury shall update the Employee Plans Compliance Resolution System to
provide the same type of comprehensive correction program that is available
under such system to retirement plans qualified under section 401(a) of the
Internal Revenue Code of 1986 to plans maintained pursuant to section 457(b) of
such Code by an employer described in section 457(e)(1)(A) of such Code.</text>
</subsection><subsection id="HBB5EE56B4B6E46C2BC7A4DB522FD8EC1"><enum>(d)</enum><header>EPCRS for
IRAs</header><text display-inline="yes-display-inline">The Secretary of the
Treasury shall expand the Employee Plans Compliance Resolution System to allow
custodians of individual retirement plans to address inadvertent errors for
which the owner of an individual retirement plan was not at fault, including
(but not limited to)—</text>
<paragraph id="H8AC042C60AB946EAAC9DCF2614BE0A23"><enum>(1)</enum><text>waivers of the
excise tax that would otherwise apply under section 4974 of the Internal
Revenue Code of 1986,</text>
</paragraph><paragraph id="HAFE6465F443D4F97A7B0DE795FDFEA46"><enum>(2)</enum><text display-inline="yes-display-inline">under the self-correction component of the
Employee Plans Compliance Resolution System, waivers of the 60-day deadline for
a rollover where the deadline is missed for reasons beyond the reasonable
control of the account owner, and</text>
</paragraph><paragraph id="H9B07A80A95E648979583BDF530181A04"><enum>(3)</enum><text>rules permitting a
nonspouse beneficiary to return distributions to an inherited individual
retirement plan described in section 408(d)(3)(C) of the Internal Revenue Code
of 1986 in a case where, due to an inadvertent error by a service provider, the
beneficiary had reason to believe that the distribution could be rolled over
without inclusion in income of any part of the distributed amount.</text>
</paragraph></subsection><subsection id="H883843C1BCB0413BA7FCF4F15D53F86C"><enum>(e)</enum><header>Required minimum
distribution corrections</header><text>The Secretary of the Treasury shall
expand the Employee Plans Compliance Resolution System to allow plans to which
such system applies and custodians of individual retirement plans to
self-correct, without an excise tax, any inadvertent errors pursuant to which a
distribution is made no more than 180 days after it was required to be
made.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H38255E5EC1F54FC19ED22FB33B346B35"><enum>(f)</enum><header>Automatic
feature error correction</header><text>In order to promote the adoption of
automatic enrollment and automatic escalation, the Secretary of the Treasury
shall modify the Employee Plans Compliance Resolution System to establish
specific correction methods for errors in implementing automatic enrollment and
automatic escalation features.</text>
</subsection></section></subtitle><subtitle id="id335D8DB6C890404AA7B5883221AAB3CC"><enum>D</enum><header>Modifications to
the Employee Retirement Income Security Act of 1974</header>
<section id="id0D0C79D548854488A2A67ED0ABD0090B"><enum>241.</enum><header>Electronic
communication of pension plan information</header>
<subsection id="idEEC0E28E70C34A3D98C7F0263A811D35"><enum>(a)</enum><header>Amendment to
Employee Retirement Income Security Act of 1974</header><text>Part 1 of
subtitle B of title 1 of the Employee Retirement Income Security Act of 1974
(<external-xref legal-doc="usc" parsable-cite="usc/29/1021">29 U.S.C. 1021 et seq.</external-xref>) is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="id9FCDE4059DC94E9B900736CEBD36E015" style="OLC">
<section id="id7CDDF3AC0556483EB4824B7DFB64DCAE"><enum>112.</enum><header>Electronic
communication of pension plan information</header><text display-inline="no-display-inline">Any document that is required or permitted
under this title to be furnished to a plan participant, beneficiary, or other
individual with respect to a pension plan may be furnished in electronic form
if—</text>
<paragraph id="idACD0692980DE4CADAD9ED8FFBA6A3E2B"><enum>(1)</enum><text>the system for
furnishing such a document—</text>
<subparagraph id="idc230a5a165e94154ab8a30721d318345"><enum>(A)</enum><text>is designed to
result in access to the document by the participant, beneficiary, or other
specified individual through electronic means, including—</text>
<clause id="id7F594172719D44789E422E4A6B0EE5A7"><enum>(i)</enum><text>the direct
delivery of material to an electronic address of such participant, beneficiary,
or individual,</text>
</clause><clause id="id20D4F019865E427A9695280B63B1DF4D"><enum>(ii)</enum><text>the posting of
material to a website or other internet or electronic-based information
repository to which access has been granted to such participant, beneficiary,
or individual, but only if proper notice of the posting has been provided
(which may include notice furnished by other electronic means if the content of
the notice conveys the need to take action to access the posted material),
and</text>
</clause><clause id="id1A7290E72EAF4BDAA790F98A801A581D"><enum>(iii)</enum><text>other
electronic means reasonably calculated to ensure actual receipt of the material
by such participant, beneficiary, or individual, and</text>
</clause></subparagraph><subparagraph id="idf3780939ce014fe3aae688810f930681"><enum>(B)</enum><text>protects the
confidentiality of personal information relating to such participant's,
beneficiary's, or individual's accounts and benefits;</text>
</subparagraph></paragraph><paragraph id="idDC44903FA81945AE9280A9C5C321502B"><enum>(2)</enum><text>the participant
or beneficiary has not elected to receive a paper version of such
document;</text>
</paragraph><paragraph id="idC2B011A5E4A04AAAAF638EBCDAF7422E"><enum>(3)</enum><text>notice is
provided to each participant or beneficiary, in electronic or non-electronic
form, before a document is furnished electronically, that apprises the
individual of the right to elect to receive a paper version of such document;
and</text>
</paragraph><paragraph id="ide1b1c68348104d45ac6e000184d3a04b"><enum>(4)</enum><text>the
electronically furnished document—</text>
<subparagraph id="id1B6BEF3158754232940D6130B2DD34F1"><enum>(A)</enum><text>is prepared and
furnished in a manner that is consistent with the style, format, and content
requirements applicable to the particular document; and</text>
</subparagraph><subparagraph id="id576c70aa563a4f72bf06f48efed350fe"><enum>(B)</enum><text>includes a notice
that apprises the individual of the significance of the document when it is not
otherwise reasonably evident as transmitted.</text>
</subparagraph></paragraph><continuation-text continuation-text-level="section">For purposes
of this section, the term <term>document</term> includes reports, statements,
notices, notifications, and other
information.</continuation-text></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id7378D5A6CB14420CA8D15C893D7CABA2"><enum>(b)</enum><header>Amendment to
Internal Revenue Code of 1986</header><text>Section 414 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="id10DD05EF6FE04FBDB31725C3D5C1B922" style="OLC">
<subsection id="id657154E866554ACDAFF94853F7A3D776"><enum>(y)</enum><header>Electronic
communication of pension plan information</header><text display-inline="yes-display-inline">Any document that is required or permitted
under this title to be furnished to a plan participant, beneficiary, or other
individual with respect to a pension plan may be furnished in electronic form
if—</text>
<paragraph id="idCFE93C12782448AC8CB11D58938C31C1"><enum>(1)</enum><text>the system for
furnishing such a document—</text>
<subparagraph id="id3B3A981D9DCE4CECB321334DA36A87F5"><enum>(A)</enum><text>is designed to
result in access to the document by the participant, beneficiary, or other
specified individual through electronic means, including—</text>
<clause id="idC6637832CA9F454ABEEC88DB5B29B7C2"><enum>(i)</enum><text>the direct
delivery of material to an electronic address of such participant, beneficiary,
or individual,</text>
</clause><clause id="idB376C751E6814514B5F37DA187B02804"><enum>(ii)</enum><text>the posting of
material to a website or other internet or electronic-based information
repository to which access has been granted to such participant, beneficiary,
or individual, but only if proper notice of the posting has been provided
(which may include notice furnished by other electronic means if the content of
the notice conveys the need to take action to access the posted material),
and</text>
</clause><clause id="id6D33DF9CD4E94F2D9E87B7BC17EDDCA7"><enum>(iii)</enum><text>other
electronic means reasonably calculated to ensure actual receipt of the material
by such participant, beneficiary, or individual, and</text>
</clause></subparagraph><subparagraph id="id38D9929AF2FC4C62B062C4E411635C9A"><enum>(B)</enum><text>protects the
confidentiality of personal information relating to such participant's,
beneficiary's, or individual's accounts and benefits;</text>
</subparagraph></paragraph><paragraph id="id5B7DA690384840F39A7952605995A698"><enum>(2)</enum><text>the participant
or beneficiary has not elected to receive a paper version of such
document;</text>
</paragraph><paragraph id="id8DAD27413C894B48942F7E6185A2314A"><enum>(3)</enum><text>notice is
provided to each participant or beneficiary, in electronic or non-electronic
form, before a document is furnished electronically, that apprises the
individual of the right to elect to receive a paper version of such document;
and</text>
</paragraph><paragraph id="id67B23FBBD7E64CD3AD06CDB803A29474"><enum>(4)</enum><text>the
electronically furnished document—</text>
<subparagraph id="id13FFE99B02DA4B8A840AE5673F307EC0"><enum>(A)</enum><text>is prepared and
furnished in a manner that is consistent with the style, format, and content
requirements applicable to the particular document; and</text>
</subparagraph><subparagraph id="id4F1D4F1AC90A4104A6DEC737E0EC3C84"><enum>(B)</enum><text>includes a notice
that apprises the individual of the significance of the document when it is not
otherwise reasonably evident as transmitted.</text>
</subparagraph></paragraph><continuation-text continuation-text-level="subsection">For
purposes of this subsection, the term <term>document</term> includes reports,
statements, notices, notifications, and other
information.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB499B7504C6E4460AFB84D680763C43D"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to documents furnished with respect to plan years beginning after December 31,
2013.</text>
</subsection></section><section id="id57D9FB472EEC4FBD803DDD478899F389"><enum>242.</enum><header>Modification
of deadlines for summary plan description updates</header>
<subsection id="id4726214B7E3C4C519723275C8D5B050D"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 104(b) of the Employee
Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(b)(1)</external-xref>) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC0BAF9C9FF774C7786A54DE3BFA9AC02" style="OLC">
<paragraph id="id426A3F93EB994E9B9AEE461DCBB86393" indent="up1"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idC5AA02AB124A4735874691BE06412639"><enum>(A)</enum><text>The administrator shall
furnish to each participant, and each beneficiary receiving benefits under the
plan, a copy of the summary plan description, and all modifications and changes
referred to in section 102(a)—</text>
<clause id="id2C5BBAC9F0B44BC2A58AD28C091C0EB7" indent="up1"><enum>(i)</enum><text>within 90 days after becoming a
participant, or in the case of a beneficiary, within 90 days after first
receiving benefits, or</text>
</clause><clause id="idB96C96D553C545FC978A3298AD2A67D5" indent="up1"><enum>(ii)</enum><text>if later, within 120 days after the
plan becomes subject to this part.</text>
</clause></subparagraph><subparagraph id="id4341E21BD4524A14832D602B672EF970" indent="up1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idF6CA936156BB4A1DA6B7CED25D9969A3"><enum>(i)</enum><text>Except as provided in
clause (ii), the administrator shall furnish to each participant, and each
beneficiary receiving benefits under the plan, every fifth year after the plan
becomes subject to this part an updated summary plan description described in
section 102 which integrates all plan amendments made within such five-year
period, except that in a case where no amendments have been made to a plan
during such five-year period, this sentence shall not apply. Notwithstanding
the foregoing, the administrator shall furnish to each participant, and to each
beneficiary receiving benefits under the plan, the summary plan description
described in section 102 every tenth year after the plan becomes subject to
this part.</text>
</clause><clause id="idDE018EE6C40B48E6BBD22481277AE96A" indent="up1"><enum>(ii)</enum><text>In the case of a pension plan, the
administrator shall furnish to each participant, and each beneficiary receiving
benefits under the plan, 210 days after the end of each remedial plan review
period, an updated summary plan description described in section 102 which
integrates all plan amendments made during such period, except that if no
amendments have been made to a plan during such period, an updated summary plan
description shall be furnished not later than 210 days after the end of the
subsequent remedial plan review period (without regard to whether plan
amendments were made during such subsequent period).</text>
</clause></subparagraph><subparagraph id="idCC3165FFBABC4CAE880D0273AA162A5C" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="id8993FE61DA5848AD92029A9A214958F3"><enum>(i)</enum><text>If there is a
modification or change described in section 102(a) (other than a material
reduction in covered services or benefits provided in the case of a group
health plan (as defined in section 733(a)(1))), a summary description of such
modification or change shall be furnished not later than 210 days after the end
of the plan year in which the change is adopted to each participant, and to
each beneficiary who is receiving benefits under the plan.</text>
</clause><clause id="id9A009D36EC594CC891C6EB22D2E8851E" indent="up1"><enum>(ii)</enum><text>For purposes of clause (i), any
amendment to a pension plan adopted during a remedial plan review period shall
be treated as adopted in the plan year in which the amendment took
effect.</text>
</clause></subparagraph><subparagraph id="id18BE7638A1DB4F5D9EB1D0A52610089A" indent="up1"><enum>(D)</enum><text>If there is a modification or change
described in section 102(a) that is a material reduction in covered services or
benefits provided under a group health plan (as defined in section 733(a)(1)),
a summary description of such modification or change shall be furnished to
participants and beneficiaries not later than 60 days after the date of the
adoption of the modification or change. In the alternative, the plan sponsors
may provide such description at regular intervals of not more than 90
days.</text>
</subparagraph><subparagraph id="id29E79C03238343A998CC6FD68C3921CB" indent="up1"><enum>(E)</enum><text>In this paragraph, the term
<term>remedial plan review period</term> means, with respect to any pension
plan, the period established by the Secretary of the Treasury under the
authority of subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401</external-xref> of the Internal Revenue Code of 1986
as the regular cycle of review by the Secretary of the Treasury for determining
whether the pension plan continues to meet the requirements of such Code for
treatment as a qualified plan under subsection (a) of such section
401.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2F06A3A50E6E4CEA9BBCC48539503042"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to summary plan descriptions furnished under section 104(b) of the Employee
Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(b)</external-xref>), and modifications
or changes described in section 102(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1022">29 U.S.C. 1022(a)</external-xref>), with
respect to plan years beginning after December 31, 2013.</text>
</subsection></section><section id="id04220323B8CB4F98B965FF0FD5491F7B"><enum>243.</enum><header>Modification
of small plan simplified reporting requirements</header>
<subsection id="idDA4FB4FD63284CF1A2E78B4CD1E31580"><enum>(a)</enum><header>In
general</header><text>Section 104(a)(2) of the Employee Retirement Income
Security Act of 1974, as amended by section 201(c) of this Act, is amended by
striking <quote>100 participants</quote> and inserting <quote>100 participants
who have an accrued benefit under the plan</quote>.</text>
</subsection><subsection id="id607600036ED34300BF99CA78B6E23773"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2013.</text>
</subsection></section><section id="id9FC2D6A8CDDB4702B33014534B572883"><enum>244.</enum><header>Fiduciary
requirement regarding selection of annuity provider and annuity
contract</header>
<subsection id="id9DC0FA7292F1421C92DF5B5B47E271B8"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 404 of the
Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1104">29 U.S.C. 1104</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD0393F9FA274496B9FCE0EBBD575BACD" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="IDD32DBE2755EB4EED9903FE2EC03BB586"><enum>(e)</enum><header>Ability of
annuity providers To make payments</header><text display-inline="yes-display-inline">In the case of the selection of an annuity
provider and annuity contract in connection with the payment of benefits under
a defined contribution plan, the fiduciary requirement under subsection
(a)(1)(B) is deemed satisfied with respect to determining the ability of the
annuity provider to make all payments due under the contract to the extent that
such payments are guaranteed by a State guaranty association under applicable
State law in effect as of the date of issuance of the
contract.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id913E8A1B85824CB5B72BB4B08635EFB0"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to annuity
contracts purchased after the date of enactment of this Act.</text>
</subsection></section></subtitle><enum>III</enum><header>Individual
retirement investment advice reform</header>
<section id="idA9FC3B4C401948ECABB4F882559991D0"><enum>301.</enum><header>Transfer to
Secretary of the Treasury of authorities regarding individual retirement
plans</header>
<subsection id="id3C389D4AEFCF46C09316FBE9137CF83B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 102 of
Reorganization Plan No. 4 of 1978 (ratified and affirmed as law by Public Law
98–532 (98 Stat. 2705)) is amended—</text>
<paragraph id="id109AA714AF75430094550D792BA0CFC1"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph id="idE1A6E8F0A6B44DFAADFD20F4F9BC3BB5"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of clause (ii),</text>
</subparagraph><subparagraph id="idCC289E172E17402EA41E665348044C0E"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of clause (iii), and</text>
</subparagraph><subparagraph id="idC19A3B0F37AF48869D20C6ED058C75CB"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting <quote>(iv) regulations,
rulings, opinions, and exemptions relating to individual retirement accounts
described in section 408(a) of the Code and individual retirement annuities
described in section 408(b) of the Code, including simplified employee pensions
under section 408(k) of the Code and simple retirement accounts under section
408(p) of the Code; and (v) regulations described in section 103(b) of this
Plan; and</quote> at the end of clause (iii) (as amended by subparagraph (B)),
and</text>
</subparagraph></paragraph><paragraph id="id0B7380CFAC944BE38D763004B1EE03D3"><enum>(2)</enum><text>by adding at the
end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="idB4DD72FD5B50450FB4C3A73ADBE7A5C9" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="section">The
Secretary of the Treasury shall consult with the Securities and Exchange
Commission in prescribing regulations, rulings, opinions, and exemptions under
subsection (a)(iv) that provide guidance of general application as to the
professional standards of care (whether involving fiduciary, suitability, or
other standards) owed by brokers and investment advisors to owners and account
holders of accounts and annuities described in such
subsection.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7D47D6D1A7444983A8F8F288CDF92A9D"><enum>(b)</enum><header>Joint
authority</header><text>Section 103 of such Plan is amended—</text>
<paragraph id="id0DF9500D1E8C477CAB5370E4933D6437"><enum>(1)</enum><text>by striking
<quote>In the case of</quote> and inserting:</text>
<quoted-block display-inline="no-display-inline" id="id4FBCBCD8AFDF4B328EEB9EE8FC335BAB" style="OLC">
<subsection id="idEBE73C3352C44C4BA6476B52B2B37CAD"><enum>(a)</enum><text>In the case
of</text>
</subsection><after-quoted-block>; and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id9654F8B6C86046A7A6BB141392BFECD1"><enum>(2)</enum><text>by adding at the
end:</text>
<quoted-block display-inline="no-display-inline" id="id380A03176A3D4002AC81CDA4DD125C60" style="OLC">
<subsection id="idD646507A3C23469F84267B141F7D8749"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id3CE2DED8B8474D629671432367E39CFC"><enum>(1)</enum><text>The Secretary of the
Treasury and the Secretary of Labor shall have joint authority to issue
regulations described in this subsection, and any such regulations shall be
issued jointly by such Secretaries.</text>
</paragraph><paragraph id="idEAE60FE0EF574B57916DA1333711DFCB" indent="up1"><enum>(2)</enum><text>A regulation is described in this
subsection if (i) the regulation is not described in clause (i), (ii), (iii),
or (iv) of section 102(a) of this Plan and (ii) defines or interprets a term or
requirement that is included in section 4975 of the Code or section 406 of
ERISA. The determination of whether any regulation is described in this
subsection shall be made without regard to whether any such term or requirement
is also used or defined in any other provision of the Code or
ERISA.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id1E48F27E3F8D4439A956C658F3453C21"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="idCE71778D5D014D67B1BB6196DDDF09B3"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
regulations, rulings, opinions, and exemptions which have not been finalized as
of July 8, 2013.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id962C3D06186B4088A7E781459C993435"><enum>(2)</enum><header>Transition</header><text>Any
final regulation, ruling, opinion, or exemption described in section 102(a)(iv)
or 103(b) of Reorganization Plan No. 4 of 1978 (as added by the amendments made
by this section) which was issued by the Secretary of Labor before July 9,
2013, shall apply until such time as such regulation, ruling, opinion, or
exemption is revoked or modified pursuant to such amendments.</text>
</paragraph></subsection></section>