115 HR 6757 IH: Family Savings Act of 2018 U.S. House of Representatives 2018-09-10 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.
I115th CONGRESS2d SessionH. R. 6757IN THE HOUSE OF REPRESENTATIVESSeptember 10, 2018Mr. Kelly of Pennsylvania (for himself, Mr. Brady of Texas, Mr. Sam Johnson of Texas, Mr. Nunes, Mr. Reichert, Mr. Roskam, Mr. Buchanan, Mr. Smith of Nebraska, Ms. Jenkins of Kansas, Mr. Paulsen, Mr. Marchant, Mrs. Black, Mr. Reed, Mr. Renacci, Mrs. Noem, Mr. Holding, Mr. Smith of Missouri, Mr. Rice of South Carolina, Mr. Schweikert, Mrs. Walorski, Mr. Curbelo of Florida, Mr. Bishop of Michigan, Mr. LaHood, Mr. Wenstrup, and Mr. Mitchell) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedA BILLTo amend the Internal Revenue Code of 1986 to encourage retirement and family savings, and for other purposes.
1.
Short title; etc
(a)
Short title
This Act may be cited as the Family Savings Act of 2018. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title; etc. Title I—Expanding and preserving retirement savings Sec. 101. Multiple employer plans; pooled employer plans. Sec. 102. Rules relating to election of safe harbor 401(k) status. Sec. 103. Certain taxable non-tuition fellowship and stipend payments treated as compensation for IRA purposes. Sec. 104. Repeal of maximum age for traditional IRA contributions. Sec. 105. Qualified employer plans prohibited from making loans through credit cards and other similar arrangements. Sec. 106. Portability of lifetime income investments. Sec. 107. Treatment of custodial accounts on termination of section 403(b) plans. Sec. 108. Clarification of retirement income account rules relating to church-controlled organizations. Sec. 109. Exemption from required minimum distribution rules for individuals with certain account balances. Sec. 110. Clarification of treatment of certain retirement plan contributions picked up by governmental employers for new or existing employees. Sec. 111. Elective deferrals by members of the Ready Reserve of a reserve component of the Armed Forces. Title II—Administrative improvements Sec. 201. Plan adopted by filing due date for year may be treated as in effect as of close of year. Sec. 202. Modification of nondiscrimination rules to protect older, longer service participants. Sec. 203. Study of appropriate PBGC premiums. Title III—Other savings provisions Sec. 301. Universal Savings Accounts. Sec. 302. Expansion of section 529 plans. Sec. 303. Penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption.
<enum>I</enum><header>Expanding and preserving retirement savings</header> <section id="H07CD52E68CB442CCBEBFE6CB374EFA9D"><enum>101.</enum><header>Multiple employer plans; pooled employer plans</header> <subsection id="HA73ED34F225F45DE8B09ED17043E1F3A"><enum>(a)</enum><header>Qualification requirements</header> <paragraph id="H815EDBDE2BAA413693E861C02C9816BF"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/413">Section 413</external-xref> 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="H6DD1AAE38C3B47E38AAF308EAAE926E6" style="OLC"> <subsection id="H815F6A5ECBD74F0CA9D13B2B40A0D444"><enum>(e)</enum><header>Application of qualification requirements for certain multiple employer plans with pooled plan providers</header> <paragraph id="H0989459C03F14E05892ECB3C1D0D7825"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), if a defined contribution plan to which subsection (c) applies—</text> <subparagraph id="H5109FA94B4084C4989ECE2606718F445"><enum>(A)</enum><text>is maintained by employers which have a common interest other than having adopted the plan, or</text> </subparagraph><subparagraph id="HBDC355B497B34B2194DDFA94EEBFB015"><enum>(B)</enum><text>in the case of a plan not described in subparagraph (A), has a pooled plan provider,</text> </subparagraph><continuation-text continuation-text-level="paragraph">then the plan shall not be treated as failing to meet the requirements under this title applicable to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, merely because one or more employers of employees covered by the plan fail to take such actions as are required of such employers for the plan to meet such requirements.</continuation-text></paragraph><paragraph id="HF84C60BB8103435088C818224853A661"><enum>(2)</enum><header>Limitations</header> <subparagraph id="HC3AA9DB2B85D4AC39D33B980D6010CFD"><enum>(A)</enum><header>In general</header><text>Paragraph (1) shall not apply to any plan unless the terms of the plan provide that in the case of any employer in the plan failing to take the actions described in paragraph (1)—</text> <clause id="HAE90FE14FA6C4E178BDBAF6ED20BCA05"><enum>(i)</enum><text>the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) will be transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in section 402(c)(8)(B) for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate, unless the Secretary determines it is in the best interests of the employees of such employer (and the beneficiaries of such employees) to retain the assets in the plan, and</text> </clause><clause id="H15675B8814E5443F8B6BDD53BC2E643E"><enum>(ii)</enum><text>such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided by the Secretary, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).</text> </clause></subparagraph><subparagraph id="H7E9B11723BA84B3291BA98C433F00D4A"><enum>(B)</enum><header>Failures by pooled plan providers</header><text>If the pooled plan provider of a plan described in paragraph (1)(B) does not perform substantially all of the administrative duties which are required of the provider under paragraph (3)(A)(i) for any plan year, the Secretary may provide that the determination as to whether the plan meets the requirements under this title applicable to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, shall be made in the same manner as would be made without regard to paragraph (1).</text> </subparagraph></paragraph><paragraph commented="no" id="HD4C5826ED1E64598AC58FF58013C26F8"><enum>(3)</enum><header>Pooled plan provider</header> <subparagraph commented="no" id="H8BA62E359C214581880C8888ED84771C"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the term <term>pooled plan provider</term> means, with respect to any plan, a person who—</text> <clause commented="no" id="HAAC7FB424EB34E57AEBCBD25FC934389"><enum>(i)</enum><text>is designated by the terms of the plan as a named fiduciary (within the meaning of section 402(a)(2) of the Employee Retirement Income Security Act of 1974), as the plan administrator, and as the person responsible to perform all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that—</text> <subclause id="H49E23AB6EE7B4E13B3CE9BD5648A04E7"><enum>(I)</enum><text>the plan meets any requirement applicable under the Employee Retirement Income Security Act of 1974 or this title to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, and</text> </subclause><subclause id="H9550991E30594ECD8A5E077288F69017"><enum>(II)</enum><text>each employer in the plan takes such actions as the Secretary or such person determines are necessary for the plan to meet the requirements described in subclause (I), including providing to such person any disclosures or other information which the Secretary may require or which such person otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements,</text> </subclause></clause><clause commented="no" id="HFA51687F3A7E41C6896D17D6BB459779"><enum>(ii)</enum><text>registers as a pooled plan provider with the Secretary, and provides such other information to the Secretary as the Secretary may require, before beginning operations as a pooled plan provider,</text> </clause><clause commented="no" id="H49B1C8B49D2641BAA4C146AEBB73C9F9"><enum>(iii)</enum><text>acknowledges in writing that such person is a named fiduciary (within the meaning of section 402(a)(2) of the Employee Retirement Income Security Act of 1974), and the plan administrator, with respect to the plan, and</text> </clause><clause commented="no" display-inline="no-display-inline" id="H364BEE4D18CE4C80ABAD06D1A6399B36"><enum>(iv)</enum><text display-inline="yes-display-inline">is responsible for ensuring that all persons who handle assets of, or who are fiduciaries of, the plan are bonded in accordance with section 412 of the Employee Retirement Income Security Act of 1974.</text> </clause></subparagraph><subparagraph commented="no" id="H37DADD05FE9B40A4B9A03BD6F6FC94F9"><enum>(B)</enum><header>Audits, examinations and investigations</header><text>The Secretary may perform audits, examinations, and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this subsection.</text> </subparagraph><subparagraph id="H5ECC50BC41BF4A169AB53D081392963F"><enum>(C)</enum><header>Aggregation rules</header><text>For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one person.</text> </subparagraph><subparagraph id="HF622CBB11596466CAE89AE375E67B2A3"><enum>(D)</enum><header>Treatment of employers as plan sponsors</header><text>Except with respect to the administrative duties of the pooled plan provider described in subparagraph (A)(i), each employer in a plan which has a pooled plan provider shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subparagraph></paragraph><paragraph id="HAD750632C81F4CA3980EA843E3D00AEC"><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—</text> <subparagraph id="HE778E678CD5643709AC856B8AE2C34FB"><enum>(A)</enum><text>to identify the administrative duties and other actions required to be performed by a pooled plan provider under this subsection,</text> </subparagraph><subparagraph id="HFABBEB61D7FF499AA344D5B4771291E1"><enum>(B)</enum><text>which describes the procedures to be taken to terminate a plan which fails to meet the requirements to be a plan described in paragraph (1), including the proper treatment of, and actions needed to be taken by, any employer in the plan and the assets and liabilities of the plan attributable to employees of such employer (or beneficiaries of such employees), and</text> </subparagraph><subparagraph id="HFF8E68CC4BCC435AA23442F962CCA8FA"><enum>(C)</enum><text>identifying appropriate cases to which the rules of paragraph (2)(A) will apply to employers in the plan failing to take the actions described in paragraph (1).</text> </subparagraph><continuation-text continuation-text-level="paragraph">The Secretary shall take into account under subparagraph (C) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements applicable to the plan under section 401(a) or 408, whichever is applicable, has continued over a period of time that demonstrates a lack of commitment to compliance.</continuation-text></paragraph><paragraph id="H91E3F5EBA9DE48AF83D6841519E11123"><enum>(5)</enum><header>Model plan</header><text>The Secretary shall publish model plan language which meets the requirements of this subsection and of paragraphs (43) and (44) of section 3 of the Employee Retirement Income Security Act of 1974 and which may be adopted in order for a plan to be treated as a plan described in paragraph (1)(B).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HEC38D222B95C4877AB0DFD33C5D2DD4B"><enum>(2)</enum><header>Conforming amendment</header><text>Section 413(c)(2) of such Code is amended by striking <quote>section 401(a)</quote> and inserting <quote>sections 401(a) and 408(c)</quote>.</text> </paragraph><paragraph id="H24B5E554B16742008BA8EDD864A64BD6"><enum>(3)</enum><header>Technical amendment</header><text>Section 408(c) of such Code is amended by inserting after paragraph (2) the following new paragraph:</text> <quoted-block act-name="" id="H125FC7C9F0F5483D870DA9F5E7CF99BB" style="OLC"> <paragraph id="HF114DC5F29A7476C820A26FB164656BF"><enum>(3)</enum><text>There is a separate accounting for any interest of an employee or member (or spouse of an employee or member) in a Roth IRA.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HD7BF4813BA2D4F2CA37F2BFDDB4ACB4E"><enum>(b)</enum><header>No common interest required for pooled employer plans</header><text display-inline="yes-display-inline">Section 3(2) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002(2)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H5BC2EBE13D534247928F125565B24F71" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="H61136C8134AB421F93DB85B2615DBA79"><enum>(C)</enum><text display-inline="yes-display-inline">A pooled employer plan shall be treated as—</text> <clause commented="no" display-inline="no-display-inline" id="H006E6D52513C47F3B56066F611C6EA30"><enum>(i)</enum><text display-inline="yes-display-inline">a single employee pension benefit plan or single pension plan; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="H1515B352EAD1430985CD5C72B1BEAC04"><enum>(ii)</enum><text display-inline="yes-display-inline">a plan to which section 210(a) applies.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H52E21BBEBFE44A139ECE17CD78A3B22A"><enum>(c)</enum><header>Pooled employer plan and provider defined</header> <paragraph id="HF99685A4BD0B44C099AB8F1BA6993EB0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 3 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H2D7D3F84C67B43339B7FD7EEFF5CFAA4" style="OLC"> <paragraph id="HDE3BFC7534D54488B4B0E810A9FE72E7"><enum>(43)</enum><header>Pooled employer plan</header> <subparagraph id="H8F2BD5E01A8F492C8F8D014FA87A541F"><enum>(A)</enum><header>In general</header><text>The term <term>pooled employer plan</term> means a plan—</text> <clause id="HDFFB24A5BC15491D9727E68F09C7949D"><enum>(i)</enum><text>which is an individual account plan established or maintained for the purpose of providing benefits to the employees of 2 or more employers;</text> </clause><clause id="H951AB1AA1F404F9F9523F0B6A2840095"><enum>(ii)</enum><text>which is a plan described in <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)</external-xref> of the Internal Revenue Code of 1986 which includes a trust exempt from tax under section 501(a) of such Code or a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof); and</text> </clause><clause id="HEDD26AFFD1904A6E9FBDB5D501E5643B"><enum>(iii)</enum><text>the terms of which meet the requirements of subparagraph (B).</text> </clause><continuation-text continuation-text-level="subparagraph">Such term shall not include a plan maintained by employers which have a common interest other than having adopted the plan.</continuation-text></subparagraph><subparagraph id="H4279DF43EADA49E7BEF009BECB8942F2"><enum>(B)</enum><header>Requirements for plan terms</header><text>The requirements of this subparagraph are met with respect to any plan if the terms of the plan—</text> <clause id="HE62B4D99C13E41FBA8729CB8F97094BC"><enum>(i)</enum><text>designate a pooled plan provider and provide that the pooled plan provider is a named fiduciary of the plan;</text> </clause><clause id="HA972E8065BB449A6AD930F111D7028E8"><enum>(ii)</enum><text>designate one or more trustees meeting the requirements of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(a)(2)</external-xref> of the Internal Revenue Code of 1986 (other than an employer in the plan) to be responsible for collecting contributions to, and holding the assets of, the plan and require such trustees to implement written contribution collection procedures that are reasonable, diligent, and systematic;</text> </clause><clause id="H07084025D1764E87BD92E6DFEBCF6C26"><enum>(iii)</enum><text>provide that each employer in the plan retains fiduciary responsibility for—</text> <subclause id="H5746126E2BBA4E74BCD003C0CF0DB09E"><enum>(I)</enum><text>the selection and monitoring in accordance with section 404(a) of the person designated as the pooled plan provider and any other person who, in addition to the pooled plan provider, is designated as a named fiduciary of the plan; and</text> </subclause><subclause id="H2FEF1C2C2C884469A1F451023CEF257D"><enum>(II)</enum><text>to the extent not otherwise delegated to another fiduciary by the pooled plan provider and subject to the provisions of section 404(c), the investment and management of the portion of the plan’s assets attributable to the employees of the employer (or beneficiaries of such employees);</text> </subclause></clause><clause id="HEC788DC5C5874D4399ABD1208BD6EF19"><enum>(iv)</enum><text>provide that employers in the plan, and participants and beneficiaries, are not subject to unreasonable restrictions, fees, or penalties with regard to ceasing participation, receipt of distributions, or otherwise transferring assets of the plan in accordance with section 208 or paragraph (44)(C)(i)(II);</text> </clause><clause id="H2E5D63F8B8854224A0EE42783FF61AF5"><enum>(v)</enum><text>require—</text> <subclause id="H7E8E0C7FF53C4808ADDF323739548D36"><enum>(I)</enum><text>the pooled plan provider to provide to employers in the plan any disclosures or other information which the Secretary may require, including any disclosures or other information to facilitate the selection or any monitoring of the pooled plan provider by employers in the plan; and</text> </subclause><subclause id="H82666997F1C94BB99ABEC5CE5D9193AD"><enum>(II)</enum><text>each employer in the plan to take such actions as the Secretary or the pooled plan provider determines are necessary to administer the plan or for the plan to meet any requirement applicable under this Act or the Internal Revenue Code of 1986 to a plan described in section 401(a) of such Code or to a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof), whichever is applicable, including providing any disclosures or other information which the Secretary may require or which the pooled plan provider otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements; and</text> </subclause></clause><clause id="HF891600C24964EF0B4A6663F114610F4"><enum>(vi)</enum><text>provide that any disclosure or other information required to be provided under clause (v) may be provided in electronic form and will be designed to ensure only reasonable costs are imposed on pooled plan providers and employers in the plan.</text> </clause></subparagraph><subparagraph id="H0DCD580A75D643129FD3236D5988F195"><enum>(C)</enum><header>Exceptions</header><text>The term <term>pooled employer plan</term> does not include—</text> <clause id="HB5ECDAD5B39F4F9E90394C44ED760F10"><enum>(i)</enum><text>a multiemployer plan; or</text> </clause><clause id="HFB54B7359AFD44F9AAB0BB463A0114D7"><enum>(ii)</enum><text>a plan established before the date of the enactment of the <short-title>Family Savings Act of 2018</short-title> unless the plan administrator elects that the plan will be treated as a pooled employer plan and the plan meets the requirements of this title applicable to a pooled employer plan established on or after such date.</text> </clause></subparagraph><subparagraph id="H38D80F746EB6432FBB2D6A45DDFD612F"><enum>(D)</enum><header>Treatment of employers as plan sponsors</header><text>Except with respect to the administrative duties of the pooled plan provider described in paragraph (44)(A)(i), each employer in a pooled employer plan shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subparagraph></paragraph><paragraph id="H2F1F9A8BACD44324941434E8FDC77606"><enum>(44)</enum><header>Pooled plan provider</header> <subparagraph id="H2A5796B66145488CB751D6485AEF9393"><enum>(A)</enum><header>In general</header><text>The term <term>pooled plan provider</term> means a person who—</text> <clause id="H951E75BE3A254B0A9E02A75771121F8A"><enum>(i)</enum><text>is designated by the terms of a pooled employer plan as a named fiduciary, as the plan administrator, and as the person responsible for the performance of all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that—</text> <subclause id="H15123387802B4D79835C2E1ECD0FF62D"><enum>(I)</enum><text>the plan meets any requirement applicable under this Act or the Internal Revenue Code of 1986 to a plan described in section 401(a) of such Code or to a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof), whichever is applicable; and</text> </subclause><subclause id="H7F8BD1F7EE2A46FFA8F507B1EA83087B"><enum>(II)</enum><text>each employer in the plan takes such actions as the Secretary or pooled plan provider determines are necessary for the plan to meet the requirements described in subclause (I), including providing the disclosures and information described in paragraph (43)(B)(v)(II);</text> </subclause></clause><clause id="H2FFE500C060E4F5BB204D5F549CA5865"><enum>(ii)</enum><text>registers as a pooled plan provider with the Secretary, and provides to the Secretary such other information as the Secretary may require, before beginning operations as a pooled plan provider;</text> </clause><clause id="HE76C4E2B67A04D09A2BEF441A35229B7"><enum>(iii)</enum><text>acknowledges in writing that such person is a named fiduciary, and the plan administrator, with respect to the pooled employer plan; and</text> </clause><clause id="HF5F988931E454ADDB6FB8C77EEA17663"><enum>(iv)</enum><text>is responsible for ensuring that all persons who handle assets of, or who are fiduciaries of, the pooled employer plan are bonded in accordance with section 412.</text> </clause></subparagraph><subparagraph id="HFBA9AF3755DF4115B9622130A015326A"><enum>(B)</enum><header>Audits, examinations and investigations</header><text>The Secretary may perform audits, examinations, and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this paragraph and paragraph (43).</text> </subparagraph><subparagraph id="H091A0EDDD88B44BC81A6A85AA010B8A1"><enum>(C)</enum><header>Guidance</header><text>The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this paragraph and paragraph (43), including guidance—</text> <clause id="H1B3BC8BC693B4DCE8AB857153AA25038"><enum>(i)</enum><text>to identify the administrative duties and other actions required to be performed by a pooled plan provider under either such paragraph; and</text> </clause><clause id="H5FC1FD45F6B44C07A2E2BFE6EFBB9326"><enum>(ii)</enum><text>which requires in appropriate cases that if an employer in the plan fails to take the actions required under subparagraph (A)(i)(II)—</text> <subclause id="H16EFEB914AE84E28923C84A20D3BDFCF"><enum>(I)</enum><text>the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) are transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)(8)(B)</external-xref> of the Internal Revenue Code of 1986 for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate in such guidance; and</text> </subclause><subclause id="H1AAEEFFFA37840F6A04E700A509600FE"><enum>(II)</enum><text>such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided in such guidance, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subclause></clause><continuation-text continuation-text-level="subparagraph">The Secretary shall take into account under clause (ii) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements described in subparagraph (A)(i)(II) has continued over a period of time that demonstrates a lack of commitment to compliance. The Secretary may waive the requirements of subclause (ii)(I) in appropriate circumstances if the Secretary determines it is in the best interests of the employees of the employer referred to in such clause (and the beneficiaries of such employees) to retain the assets in the plan with respect to which the employer's failure occurred.</continuation-text></subparagraph><subparagraph id="HE7AC343C028543AA8CF0B8B3C1193BEA"><enum>(D)</enum><header>Aggregation rules</header><text display-inline="yes-display-inline">For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414</external-xref> of the Internal Revenue Code of 1986 shall be treated as one person.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HCF9CA8E92AB24F20A0687CA980D5C879"><enum>(2)</enum><header>Bonding requirements for pooled employer plans</header><text>The last sentence of section 412(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1112">29 U.S.C. 1112(a)</external-xref>) is amended by inserting <quote>or in the case of a pooled employer plan (as defined in section 3(43))</quote> after <quote>section 407(d)(1))</quote>.</text> </paragraph><paragraph commented="no" id="HB746369B67734F0DA423A49DE53FC547"><enum>(3)</enum><header>Conforming and technical amendments</header><text>Section 3 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002</external-xref>) is amended—</text> <subparagraph commented="no" id="HD7E49C4FD9DB47A79590DCA3468184DF"><enum>(A)</enum><text>in paragraph (16)(B)—</text> <clause commented="no" id="H7B7828E91781446380666B5505A1CA36"><enum>(i)</enum><text>by striking <quote>or</quote> at the end of clause (ii); and</text> </clause><clause commented="no" id="H21435630A241421DB31B833E60B1AC3C"><enum>(ii)</enum><text>by striking the period at the end and inserting <quote>, or (iv) in the case of a pooled employer plan, the pooled plan provider.</quote>; and</text> </clause></subparagraph><subparagraph commented="no" id="H784B59C9E01D4CC58EC0E61C2DA4B75F"><enum>(B)</enum><text>by striking the second paragraph (41).</text> </subparagraph></paragraph></subsection><subsection id="H4AA26CDCD6004960A4530F4AFF935BB0"><enum>(d)</enum><header>Pooled employer and multiple employer plan reporting</header> <paragraph id="H96C0E656B7224DEFA0E92D417C2869CD"><enum>(1)</enum><header>Additional information</header><text>Section 103 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1023">29 U.S.C. 1023</external-xref>) is amended—</text> <subparagraph id="HCB96FE98E6C64EE0812149DDD08044F5"><enum>(A)</enum><text>in subsection (a)(1)(B), by striking <quote>applicable subsections (d), (e), and (f)</quote> and inserting <quote>applicable subsections (d), (e), (f), and (g)</quote>; and</text> </subparagraph><subparagraph id="H6F1C845DA5CD4A38B1D955C2213E6700"><enum>(B)</enum><text>by amending subsection (g) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H62BAD64F923346239D6F2C53AE03C5AF" style="OLC"> <subsection id="H47F42E400DE9421EBAC8FFEF506E0849"><enum>(g)</enum><header>Additional information with respect to pooled employer and multiple employer plans</header><text>An annual report under this section for a plan year shall include—</text> <paragraph id="H8B8A26E2F93E4136B196EE52FCACCF3F"><enum>(1)</enum><text>with respect to any plan to which section 210(a) applies (including a pooled employer plan), a list of employers in the plan, a good faith estimate of the percentage of total contributions made by such employers during the plan year, and the aggregate account balances attributable to each employer in the plan (determined as the sum of the account balances of the employees of such employer (and the beneficiaries of such employees)); and</text> </paragraph><paragraph id="H756D628DC854441688659B9F26864678"><enum>(2)</enum><text>with respect to a pooled employer plan, the identifying information for the person designated under the terms of the plan as the pooled plan provider.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HC74DCF3C20074AF587175C62B65F4BAA"><enum>(2)</enum><header>Simplified annual reports</header><text>Section 104(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)</external-xref>) is amended by striking paragraph (2)(A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H4CF6BF2FE6DF4B66B1BD7622099DA1D4" style="OLC"> <paragraph id="H935100A6EE324832BCA8FADB1DAC4B6B"><enum>(2)</enum> <subparagraph commented="no" display-inline="yes-display-inline" id="H5A6C2392BBBB4AF9A848CE08B373DEBE"><enum>(A)</enum><text>With respect to annual reports required to be filed with the Secretary under this part, the Secretary may by regulation prescribe simplified annual reports for any pension plan that—</text> <clause id="HCDBB053E78CF4E9A89057587C3772036" indent="up1"><enum>(i)</enum><text>covers fewer than 100 participants; or</text> </clause><clause id="HF3DA21FADDF646EC90242A3A3016CDA6" indent="up1"><enum>(ii)</enum><text>is a plan described in section 210(a) that covers fewer than 1,000 participants, but only if no single employer in the plan has 100 or more participants covered by the plan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H6379F82E334F45A49AB8F6100549C1D4"><enum>(e)</enum><header>Effective date</header> <paragraph id="H090B9AE151F54AB0B9C0F260B8C4C075"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2019.</text> </paragraph><paragraph id="H9E39D26B48CD4D71B9D20CF9E9EB813B"><enum>(2)</enum><header>Rule of construction</header><text>Nothing in the amendments made by subsection (a) shall be construed as limiting the authority of the Secretary of the Treasury or the Secretary's delegate (determined without regard to such amendments) to provide for the proper treatment of a failure to meet any requirement applicable under the Internal Revenue Code of 1986 with respect to one employer (and its employees) in a multiple employer plan.</text> </paragraph></subsection></section><section id="H972BA674F1A142F4BDAC49DAC8043637"><enum>102.</enum><header>Rules relating to election of safe harbor <enum-in-header>401(k)</enum-in-header> status</header> <subsection commented="no" id="H8818C64E4C8E4CE28E49633D8703B419"><enum>(a)</enum><header>Limitation of annual safe harbor notice to matching contribution plans</header> <paragraph commented="no" id="H29F7C15C978542E7BB9A97BC0063EC49"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(12)(A)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>if such arrangement</quote> and all that follows and inserting</text> <quoted-block display-inline="yes-display-inline" id="H2ACBFC22AB3A4B9CA3067B537FE54728" style="OLC"> <text>if such arrangement—</text><clause commented="no" id="HA7EDE7A05BFE4B7E8FD2908A67F052C1"><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="HFD15488EF29D4957A8318DD39D9E5178"><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="H817BA242BC0A4AF3A9C3AF73F6B040D6"><enum>(2)</enum><header>Automatic contribution arrangements</header><text>Section 401(k)(13)(B) of such Code is amended by striking <quote>means</quote> and all that follows and inserting</text> <quoted-block display-inline="yes-display-inline" id="HCF3B480193714335A18F2338BA2ACAFD" style="OLC"> <text>means a cash or deferred arrangement—</text><clause id="HB75A9AAAE0F545768EC9931CB26DAA20"><enum>(i)</enum><text display-inline="yes-display-inline">which is described in subparagraph (D)(i)(I) and meets the applicable requirements of subparagraphs (C) through (E), or</text> </clause><clause id="HA3001A380DB44D50B5B51A60D70A228E"><enum>(ii)</enum><text>which is described in subparagraph (D)(i)(II) and meets the applicable requirements of subparagraphs (C) and (D).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="H83A08AEBB29243028380359557C43139"><enum>(b)</enum><header>Nonelective contributions</header><text>Section 401(k)(12) of such Code 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="H3ED6667A9ADF4102AD00E10A13BB6D6A" style="OLC"> <subparagraph commented="no" id="H3ECCB6E2D5194BFD9ED93EE65880DDF6"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="H3FE24ED4AAD048D8B65D5851C9CA596A"><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 commented="no" id="HE196F1BEB73D442EBC2857D5636D8E37"><enum>(I)</enum><text>at any time before the 30th day before the close of the plan year, or</text> </subclause><subclause commented="no" id="HE0E9AAEDEF254060AA97827022A97F61"><enum>(II)</enum><text>at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year.</text> </subclause></clause><clause commented="no" id="HBE280C53FF314F49B0EE17DC4FD38B79"><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) or paragraph (13)(D)(i)(I) applied to the plan year.</text> </clause><clause commented="no" id="H4546D251AD8740DF9338118D8F7106F2"><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="H021E36AA9BBE4116954095A7F9116B7C"><enum>(c)</enum><header>Automatic contribution arrangements</header><text>Section 401(k)(13) of such Code is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H4CA181D810804A9BAF7910E4A5615DDE" style="OLC"> <subparagraph commented="no" id="HDC20976B55FF4DBF90BE159EAE958519"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="HBFDFE1A02BB24775A9D9AB5081F25DC9"><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 commented="no" id="H6365D0829F6043F2A207802CE133DF5B"><enum>(I)</enum><text>at any time before the 30th day before the close of the plan year, or</text> </subclause><subclause commented="no" id="HFD2EAC55D485421A9742E95166CB77E0"><enum>(II)</enum><text>at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year.</text> </subclause></clause><clause commented="no" id="H7F0689A6813E46F6A8B0FBA15997FC8C"><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) or paragraph (12)(B) applied to the plan year.</text> </clause><clause commented="no" id="HC24EB8341E40424DA7A1A8964D01548B"><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="H0A5EAB0184534DF1B72753A89A714104"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H669EB8DFE9874390BD0E2466AEBE501A"><enum>103.</enum><header>Certain taxable non-tuition fellowship and stipend payments treated as compensation for IRA purposes</header> <subsection commented="no" display-inline="no-display-inline" id="H3F45E6ECED2D479B94AADAE560A91E1E"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/219">Section 219(f)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following: <quote>The term <term>compensation</term> shall include any amount included in gross income and paid to an individual to aid the individual in the pursuit of graduate or postdoctoral study.</quote>.</text> </subsection><subsection id="HFA75ACF7BDC7457F90CF952EB20457A4"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H1CE458F3128C47D3A56EE21C686DFC40"><enum>104.</enum><header>Repeal of maximum age for traditional IRA contributions</header> <subsection commented="no" display-inline="no-display-inline" id="H43F24FF5183A4E14B87672AE8989B857"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/219">Section 219(d)</external-xref> of the Internal Revenue Code of 1986 is amended by striking paragraph (1).</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H0B18E4E58F1A4119B97D33DE99EFB9B5"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/408A">Section 408A(c)</external-xref> of the Internal Revenue Code of 1986 is amended by striking paragraph (4) and by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HEDF20250C4DA4B68B3DC714429405FEF"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to contributions made for taxable years beginning after December 31, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H2DF67D229D0D454AADA19CBC7B835897" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Qualified employer plans prohibited from making loans through credit cards and other similar arrangements</header> <subsection commented="no" display-inline="no-display-inline" id="HF14FE85E3B384F0FA78C7ECB78993268"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/72">Section 72(p)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H90820E9132114E1CAA54E9B4A866C0EC" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="H0300CCE5DB804BD7AD15F2861616E1F3"><enum>(D)</enum><header display-inline="yes-display-inline">Prohibition of loans through credit cards and other similar arrangements</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), paragraph (1) shall apply to any loan which is made through the use of any credit card or any other similar arrangement.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HFF50D449A262456FBCFAED379859BE78"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply to loans made after the date of the enactment of this Act.</text> </subsection></section><section id="HDB8E8C74AC7C46679295346BAA690C50"><enum>106.</enum><header>Portability of lifetime income investments</header> <subsection id="HCA3EC0107D074E75801EFFD726489886"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after paragraph (37) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HC57F38CE1CFB44C0A212224B069E3F5C" style="OLC"> <paragraph id="H89E484B0B8344CF29160A4662492B740"><enum>(38)</enum><header>Portability of lifetime income investments</header> <subparagraph id="H3D12FB5ACF0E48B497081EA0398755A5"><enum>(A)</enum><header>In general</header><text>Except as may be otherwise provided by regulations, a trust forming part of a defined contribution plan shall not be treated as failing to constitute a qualified trust under this section solely by reason of allowing—</text> <clause id="HBF8B30B1108C4668888F9DA7701F3D1D"><enum>(i)</enum><text>qualified distributions of a lifetime income investment, or</text> </clause><clause id="H2B917D08A6934EDEA6B342BB611401A0"><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.</continuation-text></subparagraph><subparagraph id="H44DBBDB6336243A9BAEB73449B5C9418"><enum>(B)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <clause id="H5A3042EE20A448E9B94890B7689E0C64"><enum>(i)</enum><text>the term <term>qualified distribution</term> means a direct trustee-to-trustee transfer described in paragraph (31)(A) to an eligible retirement plan (as defined in section 402(c)(8)(B)),</text> </clause><clause id="H1F1B2C905C284C50803C1FCB0DE874BD"><enum>(ii)</enum><text>the term <term>lifetime income investment</term> means an investment option which is designed to provide an employee with election rights—</text> <subclause id="H6DB1C059606A47B49CEF2E6C5FC2AEE3"><enum>(I)</enum><text>which are not uniformly available with respect to other investment options under the plan, and</text> </subclause><subclause id="H5627744B06D441B8B93FC673F97C80BC"><enum>(II)</enum><text>which are to a lifetime income feature available through a contract or other arrangement offered under the plan (or under another eligible retirement plan (as so defined), if paid by means of a direct trustee-to-trustee transfer described in paragraph (31)(A) to such other eligible retirement plan),</text> </subclause></clause><clause id="H60B97ADE7D0144E099B7D3A6113F98EE"><enum>(iii)</enum><text>the term <term>lifetime income feature</term> means—</text> <subclause id="H2A705051204844EA8EDCA370A7A3743C"><enum>(I)</enum><text>a feature which guarantees a minimum level of income annually (or more frequently) for at least the remainder of the life of the employee or the joint lives of the employee and the employee’s designated beneficiary, or</text> </subclause><subclause id="HD259AC8A5BE346FCB6E4E5BCD5D6F171"><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, and</text> </subclause></clause><clause id="H876A682D103C4A30821E590AB6EA1799"><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 or contract 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="HE86C205ED77349FDB359B8502CBB2F12"><enum>(b)</enum><header>Cash or deferred arrangement</header> <paragraph id="HC5EEF21ADCE44163923EA34221AA2DA3"><enum>(1)</enum><header>In general</header><text>Section 401(k)(2)(B)(i) of such Code 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 the following new subclause:</text> <quoted-block display-inline="no-display-inline" id="HE8DDE98556FA484D865D36D67B3539E7" style="OLC"> <subclause id="HFC542EE9118148EFAA1CD8C8932A1377"><enum>(VI)</enum><text display-inline="yes-display-inline">except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in subsection (a)(38)(B)(ii)), the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the arrangement, and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HDCE5D00D00414148BD11A96122F280DC"><enum>(2)</enum><header>Distribution requirement</header><text>Section 401(k)(2)(B) of such Code, as amended by paragraph (1), is amended by striking <quote>and</quote> at the end of clause (i), by striking the semicolon at the end of clause (ii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="HD4AFBE99B8454E5184B235B46AB2B688" style="OLC"> <clause id="H9C4E7441D1274CDCA7E8C5E81DF0DBB0"><enum>(iii)</enum><text display-inline="yes-display-inline">except as may be otherwise provided by regulations, in the case of amounts described in clause (i)(VI), will be distributed only in the form of a qualified distribution (as defined in subsection (a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in subsection (a)(38)(B)(iv)),</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HD085AB31B1E84186985A4E7F7346FB45"><enum>(c)</enum><header>Section 403(<enum-in-header>b</enum-in-header>) plans</header> <paragraph id="H56B63C5A16444784B7EFC8839BB35C1E"><enum>(1)</enum><header>Annuity contracts</header><text>Section 403(b)(11) of such Code is amended by striking <quote>or</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, or</quote>, and by inserting after subparagraph (C) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HC99EB7DDDFC94A74B6AF4D4FD53203A8" style="OLC"> <subparagraph id="H961079959A2B45D3AF8A258DEE890620"><enum>(D)</enum><text display-inline="yes-display-inline">except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii))—</text> <clause id="HBC2F1855C78B4AA7B39D45B720202BDC"><enum>(i)</enum><text display-inline="yes-display-inline">on or after the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract, and</text> </clause><clause id="HE86AFAB527D748DE83FF21129EE8C099"><enum>(ii)</enum><text display-inline="yes-display-inline">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></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H09F0D238F75A4F0EB82B9CED8F8E4DCE"><enum>(2)</enum><header>Custodial accounts</header><text>Section 403(b)(7)(A) of such Code is amended by striking <quote>if—</quote> and all that follows and inserting</text> <quoted-block display-inline="yes-display-inline" id="HDEB8788E49424529965BCD9689367095" style="OLC"> <text>if the amounts are to be invested in regulated investment company stock to be held in that custodial account, and under the custodial account—</text><clause id="H80407DBAE3D348C0A2CDA6281B061FA4"><enum>(i)</enum><text>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="HCC8CD89EA92542A1BC18CCBF9DB416B5"><enum>(I)</enum><text>the employee dies,</text> </subclause><subclause id="H8AFB4457AEDD481B810AFBFCDEFFC5DB"><enum>(II)</enum><text>the employee attains age 59<fraction>1/2</fraction>,</text> </subclause><subclause id="HD0F84DFC0041483A90AF77C3ED92F186"><enum>(III)</enum><text>the employee has a severance from employment,</text> </subclause><subclause id="H497DA45FCCCE4AB293224B7A76E93B94"><enum>(IV)</enum><text>the employee becomes disabled (within the meaning of section 72(m)(7)),</text> </subclause><subclause id="H7DB3B77915A54D0EA1D455630001E6F5"><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="HBEDC81E1E8B74C928C97F2293A0F1316"><enum>(VI)</enum><text display-inline="yes-display-inline">except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii)), the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract, and</text> </subclause></clause><clause id="H7A351B0A4C274A08A9D6B61BDA6E1370"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of amounts described in clause (i)(VI), such amounts will be distributed only in the form of a qualified distribution (as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in section 401(a)(38)(B)(iv)).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H9875A3381FAB47049BD957668C37E9DA"><enum>(d)</enum><header>Eligible deferred compensation plans</header> <paragraph id="HF291117CA47C4FC1A4A8C8D4D6089510"><enum>(1)</enum><header>In general</header><text>Section 457(d)(1)(A) of such Code 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="H29F18FCA6F9A489CBEDB1011D3935BF1" style="OLC"> <clause id="H7ECC5BFC68D444A7B6F815E959C9D6C7"><enum>(iv)</enum><text display-inline="yes-display-inline">except as may be otherwise provided by regulations, in the case of a plan maintained by an employer described in subsection (e)(1)(A), with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii)), the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the plan,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HFB28CBFBB3D8462B8B60D18B332A6138"><enum>(2)</enum><header>Distribution requirement</header><text>Section 457(d)(1) of such Code is amended by striking <quote>and</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, and</quote>, and by inserting after subparagraph (C) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H254EE952DDB2475199B9F5C88FDD02BF" style="OLC"> <subparagraph id="H4C855E732E35438688B914B73B174419"><enum>(D)</enum><text display-inline="yes-display-inline">except as may be otherwise provided by regulations, in the case of amounts described in subparagraph (A)(iv), such amounts will be distributed only in the form of a qualified distribution (as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in section 401(a)(38)(B)(iv)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H314C5A8147E442E18EE796339A372283"><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, 2018.</text> </subsection></section><section id="H5AC782DC4A634CF69D290E3AAD10F867"><enum>107.</enum><header>Treatment of custodial accounts on termination of section <enum-in-header>403(b)</enum-in-header> plans</header> <subsection id="H846D8C1E247B4AF685D571174FC5476A"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(b)(7)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC2796C5CC6CA406BA1C103DD6A47DF53" style="OLC"> <subparagraph id="H9F44AF174ABA41328957B18F7E8B52B9"><enum>(D)</enum><header>Treatment of custodial account upon plan termination</header> <clause id="HA42D2CA40D314764BD0244FD8503A4EE"><enum>(i)</enum><header>In general</header><text>If—</text> <subclause id="HD822ACE159134790BBF5EB49891A8BBE"><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="H630399BEF72B473F9A5E1A2EE0E69F6A"><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="HBF009CB921514FBB81FD1E8AE56C2D51"><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="H73E4ED7509AF413BB287F7F0A010F8B7"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to plan terminations occurring after December 31, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H53BC79880FC54CCCB707B3A2BCD86D06"><enum>108.</enum><header>Clarification of retirement income account rules relating to church-controlled organizations</header> <subsection commented="no" display-inline="no-display-inline" id="H98B547DE1A9C4DD6B7C8A069603C0C5A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(b)(9)(B)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>(including an employee described in section 414(e)(3)(B))</quote> after <quote>employee described in paragraph (1)</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H7D34BB60E0F54380A76A9EE9D7D0F123"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to plan years beginning after December 31, 2008.</text> </subsection></section><section commented="no" id="H682DD99681F24D53B9D94A20F81283C8"><enum>109.</enum><header>Exemption from required minimum distribution rules for individuals with certain account balances</header> <subsection commented="no" id="H420ECB39A20244A08FFEA7BB384D0C39"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)(9)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H482E65AC630744DEBFAF317DCB09C0C1" style="OLC"> <subparagraph commented="no" id="H002A6C6066AC4545AE5038FC3733B30D"><enum>(H)</enum><header>Exception from required minimum distributions during life of employee where assets do not exceed $50,000</header> <clause commented="no" id="HDD980DA3CF574015A2431D4823478023"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">If on the last day of any calendar year the aggregate value of an employee’s entire interest under all applicable eligible retirement plans does not exceed $50,000, then the requirements of subparagraph (A) with respect to any distribution relating to such year shall not apply with respect to such employee.</text> </clause><clause commented="no" id="H5D7CA130109745E3B703865452791D98"><enum>(ii)</enum><header>Applicable eligible retirement plan</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <quote>applicable eligible retirement plan</quote> means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan.</text> </clause><clause commented="no" id="HBB71F7DB6A1D4B20ABCF530528D77A62"><enum>(iii)</enum><header>Limit on required minimum distribution</header><text>The required minimum distribution determined under subparagraph (A) for an employee under all applicable eligible retirement plans shall not exceed an amount equal to the excess of—</text> <subclause commented="no" id="H4B06049F07D64B82A1A660F1214F0782"><enum>(I)</enum><text>the aggregate value of an employee’s entire interest under such plans on the last day of the calendar year to which such distribution relates, over</text> </subclause><subclause commented="no" id="HCAE8C75C4E23437486F020F875305368"><enum>(II)</enum><text>the dollar amount in effect under clause (i) for such calendar year.</text> </subclause><continuation-text commented="no" continuation-text-level="clause">The Secretary in regulations or other guidance may provide how such amount shall be distributed in the case of an individual with more than one applicable eligible retirement plan.</continuation-text></clause><clause commented="no" id="H30D9A134ACA74D9E93190647D3A831B1"><enum>(iv)</enum><header>Inflation adjustment</header><text>In the case of any calendar year beginning after 2019, the $50,000 amount in clause (i) shall be increased by an amount equal to—</text> <subclause commented="no" id="H97F422C7E0B2414887A2C8244C8C702E"><enum>(I)</enum><text>such dollar amount, multiplied by</text> </subclause><subclause commented="no" id="H0B746DCD71C64A9EB5B27F3DAFE6DFDA"><enum>(II)</enum><text>the cost of living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting <quote>calendar year 2018</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text> </subclause><continuation-text commented="no" continuation-text-level="clause">Any increase determined under this clause shall be rounded to the next lowest multiple of $5,000.</continuation-text></clause><clause commented="no" id="H11946F84AABB45788079F39E58A00A04"><enum>(v)</enum><header>Plan administrator reliance on employee certification</header><text>An applicable eligible retirement plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B) shall not be treated as failing to meet the requirements of this paragraph in the case of any failure to make a required minimum distribution for a calendar year if—</text> <subclause commented="no" id="HD7DE8702FC2C4A1DB841BEE312A20484"><enum>(I)</enum><text>the aggregate value of an employee’s entire interest under all applicable eligible retirement plans of the employer on the last day of the preceding calendar year does not exceed the amount in effect for such year under clause (i), and</text> </subclause><subclause commented="no" id="H314F5067F95742DEBC05BF81FCAB13C2"><enum>(II)</enum><text display-inline="yes-display-inline">the employee certifies that the aggregate value of the employee’s entire interest under all applicable eligible retirement plans on the last day of the preceding calendar year did not exceed the dollar amount in effect under clause (i).</text> </subclause></clause><clause id="HEEAE6B158A1740D996D3CB4E42F6FBAD"><enum>(vi)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">All employers treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer for purposes of clause (v).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HBFD410F8AD0E41AE809BF2FCBEE86C28"><enum>(b)</enum><header>Plan administrator reporting</header><text>Section 6047 of such Code is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H26BB3D28857B489F89F409888096A45C" style="OLC"> <subsection commented="no" id="H295DDE8681694D00941A1A53779247E0"><enum>(g)</enum><header>Account balance for participants who have attained age <enum-in-header>69</enum-in-header></header> <paragraph commented="no" id="H2F54259665394F6E923E6DF40472B695"><enum>(1)</enum><header>In general</header><text>Not later than January 31 of each year, the plan administrator (as defined in section 414(g)) of each applicable eligible retirement plan (as defined in section 401(a)(9)(H)) shall make a return to the Secretary with respect to each participant of such plan who has attained age 69 as of the end of the preceding calendar year which states—</text> <subparagraph commented="no" id="HBCE2ED344CB949D288B8E37D002767DC"><enum>(A)</enum><text>the name and plan number of the plan,</text> </subparagraph><subparagraph commented="no" id="H7575E69F090B4EA58A70932479ABAD55"><enum>(B)</enum><text>the name and address of the plan administrator,</text> </subparagraph><subparagraph commented="no" id="H11F40068902249AB9C7120E36E33F491"><enum>(C)</enum><text>the name, address, and taxpayer identification number of the participant, and</text> </subparagraph><subparagraph commented="no" id="HB2ACE5EB0FD345CAAE298D62EA405022"><enum>(D)</enum><text>the account balance of such participant as of the end of the preceding calendar year.</text> </subparagraph></paragraph><paragraph commented="no" id="H633805EE32734ADEA12547A2B48418E3"><enum>(2)</enum><header>Statement furnished to participant</header><text>Every person required to make a return under paragraph (1) with respect to a participant shall furnish a copy of such return to such participant.</text> </paragraph><paragraph id="H3EC92161B81A416EA4BCA4EFCF76A06D"><enum>(3)</enum><header>Application to individual retirement plans and annuities</header><text display-inline="yes-display-inline">In the case of an applicable eligible retirement plan described in clause (i) or (ii) of section 402(c)(8)(B)—</text> <subparagraph id="H156FDFD00E974B84A46EFA59E4C28D29"><enum>(A)</enum><text>any reference in this subsection to the plan administrator shall be treated as a reference to the trustee or issuer, as the case may be, and</text> </subparagraph><subparagraph id="H447BC8E6F3574B0181AD65AAD31F8A59"><enum>(B)</enum><text>any reference in this subsection to the participant shall be treated as a reference to the individual for whom such account or annuity is maintained.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HA93CFE2B48CC4E73AB9BDC2B131AAA2D"><enum>(c)</enum><header>In general</header><text>The amendments made by this section shall apply to distributions required to be made in calendar years beginning more than 120 days after the date of the enactment of this Act.</text> </subsection></section><section id="H4F1344C9115944CE99D87BDC1EAEB1EC" section-type="subsequent-section"><enum>110.</enum><header>Clarification of treatment of certain retirement plan contributions picked up by governmental employers for new or existing employees</header> <subsection id="H496B66EC5F974E32B29DC174D018E406"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414(h)(2)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="H8644EB76987A4787B127D757FB37B5F5"><enum>(1)</enum><text>by striking <quote>For purposes of paragraph (1)</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H08EA72455BC64501B48F8CF90B8A284A" style="OLC"> <subparagraph id="H63A3839179AE4A8BBCDF63917F3A223C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of paragraph (1)</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block> </paragraph><paragraph id="HA0AAC1EE384046A3955D40E920C24CFE"><enum>(2)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HE9A5BE08C26D4A6591A1BE152ADC34B5" style="OLC"> <subparagraph id="H1DC8195F38704E41B97C61380B23966F"><enum>(B)</enum><header>Treatment of elections between alternative benefit formulas</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), a contribution shall not fail to be treated as picked up by an employing unit merely because the employee may make an irrevocable election between the application of two alternative benefit formulas involving the same or different levels of employee contributions.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="HD44A6076F10549878BE495C13B8AD452"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to plan years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="H97633F08F52A4D8993E96034D98AFDBE"><enum>111.</enum><header>Elective deferrals by members of the Ready Reserve of a reserve component of the Armed Forces</header> <subsection id="H3FBAB775E5FE4FFFBCB79F3DD647F4AC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/402">Section 402(g)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HBC34EA64979544099856F7C298811967" style="OLC"> <paragraph id="HA58C5DC303D44D34A7E8C4AA65BEC8AC"><enum>(9)</enum><header>Elective deferrals by members of Ready Reserve</header> <subparagraph id="HA5DD0FD2447E434BBCC0F391D3375C70"><enum>(A)</enum><header>In general</header><text>In the case of a qualified ready reservist for any taxable year, the limitations of subparagraphs (A) and (C) of paragraph (1) shall be applied separately with respect to—</text> <clause id="H6D74AA960FEF41D483EA4A62213FAD0C"><enum>(i)</enum><text>elective deferrals of such qualified ready reservist with respect to compensation described in subparagraph (B), and</text> </clause><clause id="HFAB5D12F23E6402B9A93FDF981A718D0"><enum>(ii)</enum><text display-inline="yes-display-inline">all other elective deferrals of such qualified ready reservist.</text> </clause></subparagraph><subparagraph id="H9FF8851E11744045B683B75AC437E311"><enum>(B)</enum><header>Qualified ready reservist</header><text>For purposes of this paragraph, the term <quote>qualified ready reservist</quote> means any individual for any taxable year if such individual received compensation for service as a member of the Ready Reserve of a reserve component (as defined in section 101 of title 37, United States Code) during such taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HA3D37F9BAEE84FC9B6E1F3FFE21B7B99"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to plan years beginning after December 31, 2018.</text> </subsection></section><enum>II</enum><header>Administrative improvements</header> <section id="H510586F7CACC4B8B919C476A88959C80"><enum>201.</enum><header>Plan adopted by filing due date for year may be treated as in effect as of close of year</header> <subsection id="H6DCB5C0505A94AE8B1F4C4EB8CEDDA28"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(b)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="H1289CC8A8A1245A18E9C77114DABECBF"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">retroactive changes in plan</header-in-text>.—A stock bonus</quote> and inserting “<header-in-text level="subsection" style="OLC">plan amendments</header-in-text>.—</text> <quoted-block display-inline="no-display-inline" id="HD5FBB53FC4B647A6A31D18D4365888A9" style="OLC"> <paragraph id="H2E00E40B7DEC405187F07B00D1FA37A2"><enum>(1)</enum><header>Certain retroactive changes in plan</header><text>A stock bonus</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block> </paragraph><paragraph id="HF5A75EB44E864ECDA352E9717738AA90"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H341FDEF317FC4729A569A0935833F19F" style="OLC"> <paragraph id="H75CF8FFFA4F14F53B554AD3171520048"><enum>(2)</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 employer’s return of tax 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> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCA4ED6F20C9F40F5839C837FE6341920"><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, 2018.</text> </subsection></section><section id="HBB39A95A21F3426E9E453269299DFC51"><enum>202.</enum><header>Modification of nondiscrimination rules to protect older, longer service participants</header> <subsection id="H4D1C3E0F863A423281C090B6692F0D04"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="HDA2C36B8EEDC4B9DBDBA12352A9596ED"><enum>(1)</enum><text>by redesignating subsection (o) as subsection (p), and</text> </paragraph><paragraph id="H5C314601B00D41B7B787D7EDF4F2E054"><enum>(2)</enum><text>by inserting after subsection (n) the following new subsection:</text> <quoted-block id="H686A628DE56F48DCA530EE3CADCADE78" style="OLC"> <subsection id="HC6EE29B36FB04C368AF06D29687981E7"><enum>(o)</enum><header>Special rules for applying nondiscrimination rules To protect older, longer service and grandfathered participants</header> <paragraph id="H308661876F5B437D99E305E424AEEB4D"><enum>(1)</enum><header>Testing of defined benefit plans with closed classes of participants</header> <subparagraph id="HA8EB95C5254E42978AC6EE5F52F8D3DA"><enum>(A)</enum><header>Benefits, rights, or features provided to closed classes</header><text>A defined benefit plan which provides benefits, rights, or features to a closed class of participants shall not fail to satisfy the requirements of subsection (a)(4) by reason of the composition of such closed class or the benefits, rights, or features provided to such closed class, if—</text> <clause id="H7B2693C8E445494EA21F3115383DE8AC"><enum>(i)</enum><text>for the plan year as of which the class closes and the 2 succeeding plan years, such benefits, rights, and features satisfy the requirements of subsection (a)(4) (without regard to this subparagraph but taking into account the rules of subparagraph (I)),</text> </clause><clause id="HB3907BCB8E3F4F7C99787F63B99B47AA"><enum>(ii)</enum><text>after the date as of which the class was closed, any plan amendment which modifies the closed class or the benefits, rights, and features provided to such closed class does not discriminate significantly in favor of highly compensated employees, and</text> </clause><clause id="HF7A72DF806E9460EB22D22D4B6345F04"><enum>(iii)</enum><text>the class was closed before April 5, 2017, or the plan is described in subparagraph (C).</text> </clause></subparagraph><subparagraph id="HFB32E9C9D3474E4C8E3656CAA24A9D43"><enum>(B)</enum><header>Aggregate testing with defined contribution plans permitted on a benefits basis</header> <clause id="H419D690416784284A25C428897A1F81B"><enum>(i)</enum><header>In general</header><text>For purposes of determining compliance with subsection (a)(4) and section 410(b), a defined benefit plan described in clause (iii) may be aggregated and tested on a benefits basis with 1 or more defined contribution plans, including with the portion of 1 or more defined contribution plans which—</text> <subclause id="H285A0D37305D4175AFB42C45826CCD29"><enum>(I)</enum><text>provides matching contributions (as defined in subsection (m)(4)(A)),</text> </subclause><subclause id="HC0F342A1689A43B7900B9486186033BE"><enum>(II)</enum><text>provides annuity contracts described in section 403(b) which are purchased with matching contributions or nonelective contributions, or</text> </subclause><subclause id="H64F13BD55CA24C9A9001507275ABA4B2"><enum>(III)</enum><text>consists of an employee stock ownership plan (within the meaning of section 4975(e)(7)) or a tax credit employee stock ownership plan (within the meaning of section 409(a)).</text> </subclause></clause><clause id="H80F69C6E21D44582920C78E87C907730"><enum>(ii)</enum><header>Special rules for matching contributions</header><text>For purposes of clause (i), if a defined benefit plan is aggregated with a portion of a defined contribution plan providing matching contributions—</text> <subclause id="H60A5BC4321604E7A91AA804C7C8E3379"><enum>(I)</enum><text>such defined benefit plan must also be aggregated with any portion of such defined contribution plan which provides elective deferrals described in subparagraph (A) or (C) of section 402(g)(3), and</text> </subclause><subclause id="H997194F6E9B3486BB5073BE2D726215E"><enum>(II)</enum><text>such matching contributions shall be treated in the same manner as nonelective contributions, including for purposes of applying the rules of subsection (l).</text> </subclause></clause><clause id="H343A15E307C941BC9E234066D6CC3EA5"><enum>(iii)</enum><header>Plans described</header><text>A defined benefit plan is described in this clause if—</text> <subclause id="H788276F1E5734853B73219FCF73F126F"><enum>(I)</enum><text>the plan provides benefits to a closed class of participants,</text> </subclause><subclause id="H323D5830176640608900257EC459A24E"><enum>(II)</enum><text>for the plan year as of which the class closes and the 2 succeeding plan years, the plan satisfies the requirements of section 410(b) and subsection (a)(4) (without regard to this subparagraph but taking into account the rules of subparagraph (I)),</text> </subclause><subclause id="H5897BD4AEEDF48EBB4C644CDAE736679"><enum>(III)</enum><text>after the date as of which the class was closed, any plan amendment which modifies the closed class or the benefits provided to such closed class does not discriminate significantly in favor of highly compensated employees, and</text> </subclause><subclause id="HF3C254E3CDD94917B2D6F928AEF14940"><enum>(IV)</enum><text>the class was closed before April 5, 2017, or the plan is described in subparagraph (C).</text> </subclause></clause></subparagraph><subparagraph id="H37037C2E260F4D2EA39455140257D818"><enum>(C)</enum><header>Plans described</header><text>A plan is described in this subparagraph if, taking into account any predecessor plan—</text> <clause id="HF96AE577CF724212BEDFBCADE72D2581"><enum>(i)</enum><text>such plan has been in effect for at least 5 years as of the date the class is closed, and</text> </clause><clause id="H930D0DE2FA434758AEBF8DC3E49ADAA8"><enum>(ii)</enum><text>during the 5-year period preceding the date the class is closed, there has not been a substantial increase in the coverage or value of the benefits, rights, or features described in subparagraph (A) or in the coverage or benefits under the plan described in subparagraph (B)(iii) (whichever is applicable).</text> </clause></subparagraph><subparagraph id="H639606CA09054CFC909A8EB01BC6E231"><enum>(D)</enum><header>Determination of substantial increase for benefits, rights, and features</header><text>In applying subparagraph (C)(ii) for purposes of subparagraph (A)(iii), a plan shall be treated as having had a substantial increase in coverage or value of the benefits, rights, or features described in subparagraph (A) during the applicable 5-year period only if, during such period—</text> <clause id="H404AD1C81DFD4EAC8ADBE014B18EDCC8"><enum>(i)</enum><text>the number of participants covered by such benefits, rights, or features on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or</text> </clause><clause id="H75742ACCCF8F4343B61CC570E5C5250E"><enum>(ii)</enum><text>such benefits, rights, and features have been modified by 1 or more plan amendments in such a way that, as of the date the class is closed, the value of such benefits, rights, and features to the closed class as a whole is substantially greater than the value as of the first day of such 5-year period, solely as a result of such amendments.</text> </clause></subparagraph><subparagraph id="H3339C5D22BA54E6D8C3E1CFBBE2AEBAF"><enum>(E)</enum><header>Determination of substantial increase for aggregate testing on benefits basis</header><text>In applying subparagraph (C)(ii) for purposes of subparagraph (B)(iii)(IV), a plan shall be treated as having had a substantial increase in coverage or benefits during the applicable 5-year period only if, during such period—</text> <clause id="H970EDD27627741A092D45E39BC2BE459"><enum>(i)</enum><text>the number of participants benefitting under the plan on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or</text> </clause><clause id="H415045F7A815407FB78B598713764EE0"><enum>(ii)</enum><text>the average benefit provided to such participants on the date such period ends is more than 50 percent greater than the average benefit provided on the first day of the plan year in which such period began.</text> </clause></subparagraph><subparagraph id="H180436DFD7CC48B2A0D1B9FDE0BCA36D"><enum>(F)</enum><header>Certain employees disregarded</header><text>For purposes of subparagraphs (D) and (E), any increase in coverage or value or in coverage or benefits, whichever is applicable, which is attributable to such coverage and value or coverage and benefits provided to employees—</text> <clause id="H814138B9B494495CA95C9F142CA1ABE0"><enum>(i)</enum><text>who became participants as a result of a merger, acquisition, or similar event which occurred during the 7-year period preceding the date the class is closed, or</text> </clause><clause id="HE72E371E4ABF4393BDFB0A61019B15AF"><enum>(ii)</enum><text>who became participants by reason of a merger of the plan with another plan which had been in effect for at least 5 years as of the date of the merger,</text> </clause><continuation-text continuation-text-level="subparagraph">shall be disregarded, except that clause (ii) shall apply for purposes of subparagraph (D) only if, under the merger, the benefits, rights, or features under 1 plan are conformed to the benefits, rights, or features of the other plan prospectively.</continuation-text></subparagraph><subparagraph id="H02AAF6E61B80403BB0F28CD6F9932DB8"><enum>(G)</enum><header>Rules relating to average benefit</header><text>For purposes of subparagraph (E)—</text> <clause id="HAF55B3493AC24C62A64B2AB999312D6B"><enum>(i)</enum><text>the average benefit provided to participants under the plan will be treated as having remained the same between the 2 dates described in subparagraph (E)(ii) if the benefit formula applicable to such participants has not changed between such dates, and</text> </clause><clause id="H459765FBE8F748C89C33AB01991C33ED"><enum>(ii)</enum><text>if the benefit formula applicable to 1 or more participants under the plan has changed between such 2 dates, then the average benefit under the plan shall be considered to have increased by more than 50 percent only if—</text> <subclause id="H7E30288626A2462CA7213DDBCE91CA2E"><enum>(I)</enum><text>the total amount determined under section 430(b)(1)(A)(i) for all participants benefitting under the plan for the plan year in which the 5-year period described in subparagraph (E) ends, exceeds</text> </subclause><subclause id="H6D121F8E84EB47F3AAEA772338952BB8"><enum>(II)</enum><text>the total amount determined under section 430(b)(1)(A)(i) for all such participants for such plan year, by using the benefit formula in effect for each such participant for the first plan year in such 5-year period, by more than 50 percent.</text> </subclause><continuation-text continuation-text-level="clause">In the case of a CSEC plan (as defined in section 414(y)), the normal cost of the plan (as determined under section 433(j)(1)(B)) shall be used in lieu of the amount determined under section 430(b)(1)(A)(i).</continuation-text></clause></subparagraph><subparagraph id="HE2ABC39E77B249388A748830E034CC86"><enum>(H)</enum><header>Treatment as single plan</header><text>For purposes of subparagraphs (E) and (G), a plan described in section 413(c) shall be treated as a single plan rather than as separate plans maintained by each employer in the plan.</text> </subparagraph><subparagraph id="H3FA3137501D84D779A6FBFDBA14FD1DB"><enum>(I)</enum><header>Special rules</header><text>For purposes of subparagraphs (A)(i) and (B)(iii)(II), the following rules shall apply:</text> <clause id="HE9A6CF2310564178884FAD2EDF8A2F9F"><enum>(i)</enum><text>In applying section 410(b)(6)(C), the closing of the class of participants shall not be treated as a significant change in coverage under section 410(b)(6)(C)(i)(II).</text> </clause><clause id="H3D1EA592B0BE4472846FD48307E9DC44"><enum>(ii)</enum><text>2 or more plans shall not fail to be eligible to be aggregated and treated as a single plan solely by reason of having different plan years.</text> </clause><clause id="H7B855B0110CA4679AF8AEE357ABABEFB"><enum>(iii)</enum><text>Changes in the employee population shall be disregarded to the extent attributable to individuals who become employees or cease to be employees, after the date the class is closed, by reason of a merger, acquisition, divestiture, or similar event.</text> </clause><clause id="H723042F428E84154B247A61B17F43A59"><enum>(iv)</enum><text>Aggregation and all other testing methodologies otherwise applicable under subsection (a)(4) and section 410(b) may be taken into account.</text> </clause><continuation-text continuation-text-level="subparagraph">The rule of clause (ii) shall also apply for purposes of determining whether plans to which subparagraph (B)(i) applies may be aggregated and treated as 1 plan for purposes of determining whether such plans meet the requirements of subsection (a)(4) and section 410(b).</continuation-text></subparagraph><subparagraph id="HB1390006C13A4901A5B1C4187B63FFC3"><enum>(J)</enum><header>Spun-off plans</header><text>For purposes of this paragraph, if a portion of a defined benefit plan described in subparagraph (A) or (B)(iii) is spun off to another employer and the spun-off plan continues to satisfy the requirements of—</text> <clause id="H83BCD17D22DA4EB1869AF9EDB47325C5"><enum>(i)</enum><text>subparagraph (A)(i) or (B)(iii)(II), whichever is applicable, if the original plan was still within the 3-year period described in such subparagraph at the time of the spin off, and</text> </clause><clause id="HF55BBA055F9D4C498EFBE7DB3BA38143"><enum>(ii)</enum><text>subparagraph (A)(ii) or (B)(iii)(III), whichever is applicable,</text> </clause><continuation-text continuation-text-level="subparagraph">the treatment under subparagraph (A) or (B) of the spun-off plan shall continue with respect to such other employer.</continuation-text></subparagraph></paragraph><paragraph id="H750307C9150E4504965FFC60B7BBE426"><enum>(2)</enum><header>Testing of defined contribution plans</header> <subparagraph id="H71749178FF574CFDA4CCBFABBA4C9881"><enum>(A)</enum><header>Testing on a benefits basis</header><text>A defined contribution plan shall be permitted to be tested on a benefits basis if—</text> <clause id="H8A1A7FE6B504436DB3251C85239D5783"><enum>(i)</enum><text>such defined contribution plan provides make-whole contributions to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated,</text> </clause><clause id="H49B1A6B1B23D49218A597473BA57CCF6"><enum>(ii)</enum><text>for the plan year of the defined contribution plan as of which the class eligible to receive such make-whole contributions closes and the 2 succeeding plan years, such closed class of participants satisfies the requirements of section 410(b)(2)(A)(i) (determined by applying the rules of paragraph (1)(I)),</text> </clause><clause id="HF78C4E8F648D4CFA86F3262DF47BE249"><enum>(iii)</enum><text>after the date as of which the class was closed, any plan amendment to the defined contribution plan which modifies the closed class or the allocations, benefits, rights, and features provided to such closed class does not discriminate significantly in favor of highly compensated employees, and</text> </clause><clause id="H4C36FE0ED0C0436D99FB45A33CB7DCEF"><enum>(iv)</enum><text>the class was closed before April 5, 2017, or the defined benefit plan under clause (i) is described in paragraph (1)(C) (as applied for purposes of paragraph (1)(B)(iii)(IV)).</text> </clause></subparagraph><subparagraph id="H34CE354C8D46498C89924C5ED00C877E"><enum>(B)</enum><header>Aggregation with plans including matching contributions</header> <clause id="H4DF569DE4D8F4040857C58B6E128E73D"><enum>(i)</enum><header>In general</header><text>With respect to 1 or more defined contribution plans described in subparagraph (A), for purposes of determining compliance with subsection (a)(4) and section 410(b), the portion of such plans which provides make-whole contributions or other nonelective contributions may be aggregated and tested on a benefits basis with the portion of 1 or more other defined contribution plans which—</text> <subclause id="H0D3954AC33B34020993D2E55BECEA5D2"><enum>(I)</enum><text>provides matching contributions (as defined in subsection (m)(4)(A)),</text> </subclause><subclause id="H5A8D1E189F13407D81DA49DFA78541B3"><enum>(II)</enum><text>provides annuity contracts described in section 403(b) which are purchased with matching contributions or nonelective contributions, or</text> </subclause><subclause id="H59C5348ADF7A4836AEF2F9A62AA452D5"><enum>(III)</enum><text>consists of an employee stock ownership plan (within the meaning of section 4975(e)(7)) or a tax credit employee stock ownership plan (within the meaning of section 409(a)).</text> </subclause></clause><clause id="H79FB0B569DD8483AAAC179ADD5FAE91D"><enum>(ii)</enum><header>Special rules for matching contributions</header><text>Rules similar to the rules of paragraph (1)(B)(ii) shall apply for purposes of clause (i).</text> </clause></subparagraph><subparagraph id="HF17E4420ACDD4BD883BF6E0CC1237F59"><enum>(C)</enum><header>Special rules for testing defined contribution plan features providing matching contributions to certain older, longer service participants</header><text>In the case of a defined contribution plan which provides benefits, rights, or features to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated, the plan shall not fail to satisfy the requirements of subsection (a)(4) solely by reason of the composition of the closed class or the benefits, rights, or features provided to such closed class if the defined contribution plan and defined benefit plan otherwise meet the requirements of subparagraph (A) but for the fact that the make-whole contributions under the defined contribution plan are made in whole or in part through matching contributions.</text> </subparagraph><subparagraph id="H8C539CE3973E45A1B8C5F6A31247570F"><enum>(D)</enum><header>Spun-off plans</header><text>For purposes of this paragraph, if a portion of a defined contribution plan described in subparagraph (A) or (C) is spun off to another employer, the treatment under subparagraph (A) or (C) of the spun-off plan shall continue with respect to the other employer if such plan continues to comply with the requirements of clauses (ii) (if the original plan was still within the 3-year period described in such clause at the time of the spin off) and (iii) of subparagraph (A), as determined for purposes of subparagraph (A) or (C), whichever is applicable.</text> </subparagraph></paragraph><paragraph id="HE42A5329635D4586BA204B0D707C6926"><enum>(3)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="H390C2B80AF9544A3A02AEBBFEAADA62A"><enum>(A)</enum><header>Make-whole contributions</header><text>Except as otherwise provided in paragraph (2)(C), the term <quote>make-whole contributions</quote> means nonelective allocations for each employee in the class which are reasonably calculated, in a consistent manner, to replace some or all of the retirement benefits which the employee would have received under the defined benefit plan and any other plan or qualified cash or deferred arrangement under subsection (k)(2) if no change had been made to such defined benefit plan and such other plan or arrangement. For purposes of the preceding sentence, consistency shall not be required with respect to employees who were subject to different benefit formulas under the defined benefit plan.</text> </subparagraph><subparagraph id="H62D5D126945C46558A5F24AE9E014165"><enum>(B)</enum><header>References to closed class of participants</header><text>References to a closed class of participants and similar references to a closed class shall include arrangements under which 1 or more classes of participants are closed, except that 1 or more classes of participants closed on different dates shall not be aggregated for purposes of determining the date any such class was closed.</text> </subparagraph><subparagraph id="H753E8B9AB3644D6F84E8F2C3326E328A"><enum>(C)</enum><header>Highly compensated employee</header><text>The term <quote>highly compensated employee</quote> has the meaning given such term in section 414(q).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H563304A5B5104C8FB743FF0F2C2B4BF8"><enum>(b)</enum><header>Participation requirements</header><text>Section 401(a)(26) of such Code is amended by adding at the end the following new subparagraph:</text> <quoted-block id="HCCC6E87DF19A4E2E814536F25FC80626" style="OLC"> <subparagraph id="H8CAB837EFF104ED495F8F7C1967EB4C3"><enum>(I)</enum><header>Protected participants</header> <clause id="H0D9BB78BC9BF4A0180B6601E12463B20"><enum>(i)</enum><header>In general</header><text>A plan shall be deemed to satisfy the requirements of subparagraph (A) if—</text> <subclause id="H685CAD265E534BFAAC8F144333ADB30A"><enum>(I)</enum><text>the plan is amended—</text> <item id="H4BAB802FDB0F49EC9164DF285AD20F5E"><enum>(aa)</enum><text>to cease all benefit accruals, or</text> </item><item id="H1350CE84E28D41E296E3B3EBDB0647AA"><enum>(bb)</enum><text>to provide future benefit accruals only to a closed class of participants,</text> </item></subclause><subclause id="H79A283967994483AAA70C7F870D9F869"><enum>(II)</enum><text>the plan satisfies subparagraph (A) (without regard to this subparagraph) as of the effective date of the amendment, and</text> </subclause><subclause id="HE7874743EF8F4A5C9E084CC610BCFDBF"><enum>(III)</enum><text>the amendment was adopted before April 5, 2017, or the plan is described in clause (ii).</text> </subclause></clause><clause id="H69203B201EEE4C9482320A215732210A"><enum>(ii)</enum><header>Plans described</header><text>A plan is described in this clause if the plan would be described in subsection (o)(1)(C), as applied for purposes of subsection (o)(1)(B)(iii)(IV) and by treating the effective date of the amendment as the date the class was closed for purposes of subsection (o)(1)(C).</text> </clause><clause id="H02022CB8941543B0A44CBCD8E39B3A01"><enum>(iii)</enum><header>Special rules</header><text>For purposes of clause (i)(II), in applying section 410(b)(6)(C), the amendments described in clause (i) shall not be treated as a significant change in coverage under section 410(b)(6)(C)(i)(II).</text> </clause><clause id="H643ABC9E094746F882F646F423850590"><enum>(iv)</enum><header>Spun-off plans</header><text>For purposes of this subparagraph, if a portion of a plan described in clause (i) is spun off to another employer, the treatment under clause (i) of the spun-off plan shall continue with respect to the other employer.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HFDB6FFAFAD1F4120B541C2FA78EAC34C"><enum>(c)</enum><header>Effective date</header> <paragraph commented="no" id="H4A6BDA0839684195B6E242E543A4BCF9"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act, without regard to whether any plan modifications referred to in such amendments are adopted or effective before, on, or after such date of enactment.</text> </paragraph><paragraph commented="no" id="H9FAD1A3BB88F4669B8D20F34FDDB6EA1"><enum>(2)</enum><header>Special rules</header> <subparagraph commented="no" id="H2F6451A2F77F41BE8412CF8849A29AD7"><enum>(A)</enum><header>Election of earlier application</header><text>At the election of the plan sponsor, the amendments made by this section shall apply to plan years beginning after December 31, 2013.</text> </subparagraph><subparagraph commented="no" id="H7D798C7B927F486598E274FEF2125913"><enum>(B)</enum><header>Closed classes of participants</header><text>For purposes of paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and (2)(A)(iv) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(o)</external-xref> of the Internal Revenue Code of 1986 (as added by this section), a closed class of participants shall be treated as being closed before April 5, 2017, if the plan sponsor’s intention to create such closed class is reflected in formal written documents and communicated to participants before such date.</text> </subparagraph><subparagraph commented="no" id="H46BD1632F0BA4424A5FE153A14BDEB33"><enum>(C)</enum><header>Certain post-enactment plan amendments</header><text>A plan shall not be treated as failing to be eligible for the application of section 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of such Code (as added by this section) to such plan solely because in the case of—</text> <clause commented="no" id="HA676808149FE416787DF24AAC2A17233"><enum>(i)</enum><text>such section 401(o)(1)(A), the plan was amended before the date of the enactment of this Act to eliminate 1 or more benefits, rights, or features, and is further amended after such date of enactment to provide such previously eliminated benefits, rights, or features to a closed class of participants, or</text> </clause><clause commented="no" id="HCC4A130EFC424D6888AB32A7C06789A8"><enum>(ii)</enum><text>such section 401(o)(1)(B)(iii) or section 401(a)(26), the plan was amended before the date of the enactment of this Act to cease all benefit accruals, and is further amended after such date of enactment to provide benefit accruals to a closed class of participants. Any such section shall only apply if the plan otherwise meets the requirements of such section and in applying such section, the date the class of participants is closed shall be the effective date of the later amendment.</text> </clause></subparagraph></paragraph></subsection></section><section id="H7C8C3C9F8AE244AA9DE940E7149CF079"><enum>203.</enum><header>Study of appropriate PBGC premiums</header> <subsection id="H5DA2630BAB904016B58BE29460A68842"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Pension Benefit Guaranty Corporation (hereafter in this section referred to as <quote>the Corporation</quote>) shall enter into a contract with an appropriate agency or organization to conduct an independent study of the Corporation’s Single Employer Pension Insurance Modeling System.</text> </subsection><subsection id="HF2236B3A4BF94367AE0A28E258223E8B"><enum>(b)</enum><header>Selection of independent organization</header><text>The appropriate agency or organization referred to in subsection (a) shall be selected by the Board of Directors of the Corporation. Such agency or organization shall be the Social Security Administration or any other agency or organization that such Board determines is independent from the Corporation and has the expertise to conduct the study described in this section.</text> </subsection><subsection id="HFFA8E8B3D7774BB88561BAFFB9A58294"><enum>(c)</enum><header>Study</header><text>The independent study referred to in subsection (a) shall begin not later than 6 months after the date of the enactment of this Act and shall—</text> <paragraph id="H2E47F9A30DC14186837D48AE487AB02C"><enum>(1)</enum><text display-inline="yes-display-inline">examine the current structure and level of premiums required to be paid by single employer plans (including fixed, variable and termination premiums) to the Corporation to evaluate whether such premiums are sufficient for the Corporation to pay the benefits guaranteed by the Corporation,</text> </paragraph><paragraph id="HD3B63D99B17340AC92B80E4E71B2446C"><enum>(2)</enum><text>evaluate whether there are alternative structures and levels of premiums that would better account for the risks posed by various categories of single employer plans, including on the basis of—</text> <subparagraph id="HFD8D0A7919AB488B8BDE6B90B09D3CFB"><enum>(A)</enum><text>industry, ownership structure, or size of the plan sponsor,</text> </subparagraph><subparagraph id="H06D63AE3D0C34FB18D5DC9FC12802EF6"><enum>(B)</enum><text>plan funded status, risk or volatility of plan investments, or credit worthiness of the plan sponsor, or</text> </subparagraph><subparagraph id="H90B5B7E49B4948AB9A52E62924105FC3"><enum>(C)</enum><text>a combination of factors described in subparagraphs (A) and (B),</text> </subparagraph></paragraph><paragraph id="H9A6BFAD14159459492322C1D8530E876"><enum>(3)</enum><text>evaluate whether other methods of estimating the value of assets and liabilities should be used in the financial statements of the Corporation (including methods described in the report titled <quote>The Risk Exposure of the Pension Benefit Guaranty Corporation</quote> published by the Congressional Budget Office in September 2005 and methods described in the report titled <quote>Options to Improve the Financial Condition of the Pension Benefit Guaranty Corporation’s Multiemployer Program</quote> published by the Congressional Budget Office in August 2016),</text> </paragraph><paragraph id="HBC4A1F813EBE401688B50770327FDF9F"><enum>(4)</enum><text>evaluate whether multiple employer plans in general, and multiple employer plans that are CSEC plans (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(y)</external-xref> of the Internal Revenue Code of 1986) in particular, have characteristics that warrant a separate structure and level of premiums, and</text> </paragraph><paragraph commented="no" id="H55618159EF1E4A23B30E3A91AC6CD917"><enum>(5)</enum><text>include an explanation of the assumptions underlying each analysis involved in conducting such study.</text> </paragraph></subsection></section><enum>III</enum><header>Other savings provisions</header> <section id="H9A9FBBEAE5394A32B22E14252E7AE1D6" section-type="subsequent-section"><enum>301.</enum><header>Universal Savings Accounts</header> <subsection id="H0BB439C10C504E41AFB1114679A32D4E"><enum>(a)</enum><header>In general</header><text>Subchapter F of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:</text> <quoted-block display-inline="no-display-inline" id="H150A71783C544B4184E28506D6FAD262" style="OLC"> <part id="H7A2BC04050C24F059EC80FE7CD6A3A71"><enum>IX</enum><header>Universal Savings Accounts</header> <section id="H8483E07E2456411B934A3D695347AF34"><enum>530U.</enum><header>Universal Savings Accounts</header> <subsection id="HD83ACF06FD60472CA9451FF89B9F08EC"><enum>(a)</enum><header>General rule</header><text>A Universal Savings Account shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such account shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations).</text> </subsection><subsection id="HED648B5C0F7A4000AA5B40C091B7E582"><enum>(b)</enum><header>Universal savings account</header><text>For purposes of this section, the term <term>Universal Savings Account</term> means a trust created or organized in the United States by an individual for the exclusive benefit of such individual and which is designated (in such manner as the Secretary may prescribe) at the time of the establishment of the trust as a Universal Savings Account, but only if the written governing instrument creating the trust meets the following requirements:</text> <paragraph id="H124784570D8B4F90A54377F3D6831350"><enum>(1)</enum><text>Except in the case of a qualified rollover contribution described in subsection (d)—</text> <subparagraph id="H8E889C74E70B49D8869134932EAE8F08"><enum>(A)</enum><text>no contribution will be accepted unless it is in cash, and</text> </subparagraph><subparagraph id="H625F85248D4946E3AC871BBC6EF2FB1C"><enum>(B)</enum><text>contributions will not be accepted for the taxable year in excess of the contribution limit specified in subsection (c)(2).</text> </subparagraph></paragraph><paragraph id="H07C75EF8529E41D1A63007096863F253"><enum>(2)</enum><text>No distribution will be made unless it is—</text> <subparagraph id="H54A44203F4814C4485F5DC2AB9163281"><enum>(A)</enum><text>cash, or</text> </subparagraph><subparagraph id="H04987828F66B47A8AD20A944D936A37D"><enum>(B)</enum><text>property that—</text> <clause id="HD7E1943704B54CD3A19E2E11B9C4EFBD"><enum>(i)</enum><text>has a readily ascertainable fair market value, and</text> </clause><clause id="H2A57C33D6AE040299EF1F72F50F5B2BA"><enum>(ii)</enum><text>is identified by the Secretary in regulations or other guidance as property to which this subparagraph applies.</text> </clause></subparagraph></paragraph><paragraph id="H18A2E110FFD94413B6AB00CE365EAFE2"><enum>(3)</enum><text>The trustee is a bank (as defined in section 408(n)) or another person who demonstrates to the satisfaction of the Secretary that the manner in which that person will administer the trust will be consistent with the requirements of this section.</text> </paragraph><paragraph id="H06794F5DD26647C78075CAEF579CDAA4"><enum>(4)</enum><text>No part of the trust assets will be invested in life insurance contracts or collectibles (as defined in section 408(m)).</text> </paragraph><paragraph id="H97F2888D8262438D9E3DDF92D69264F0"><enum>(5)</enum><text>The interest of an individual in the balance of his account is nonforfeitable.</text> </paragraph><paragraph id="H4B3ED87CA60D40BF8D16C335E411E324"><enum>(6)</enum><text>The assets of the trust shall not be commingled with other property except in a common trust fund or common investment fund.</text> </paragraph></subsection><subsection id="HEADD842D4CD04F268D92B467D390D1EE"><enum>(c)</enum><header>Treatment of distributions and contributions</header> <paragraph id="H6209B905E5EF48D189E73EAF9FFC832A"><enum>(1)</enum><header>Distributions</header> <subparagraph id="H23DD236091E945CFBB1C717290F4A982"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), any distribution from a Universal Savings Account shall not be includible in gross income.</text> </subparagraph><subparagraph id="H91BB6DBAE71F4A53801D818EDE6DFEEC"><enum>(B)</enum><header>Net income attributable to excess contributions</header><text>Any distribution of net income described in section 4973(i)(2) shall be includible in the gross income of the account holder in the taxable year in which the contribution to which such net income relates was made.</text> </subparagraph></paragraph><paragraph id="H226B7CEB5E184B5F8568CDE24503F761"><enum>(2)</enum><header>Contribution limit</header> <subparagraph id="HA5648E2928584D7F85F6CBBAB9D975B4"><enum>(A)</enum><header>In general</header><text>The aggregate amount of contributions (other than qualified rollover contributions described in subsection (d)) for any taxable year to all Universal Savings Accounts maintained for the benefit of an individual shall not exceed the lesser of—</text> <clause id="HB198FACC73484BC5831C525848F40ED6"><enum>(i)</enum><text>$2,500, or</text> </clause><clause id="H5E18582F45274BF08E1C9BD150993881"><enum>(ii)</enum><text>an amount equal to the compensation (within the meaning of section 219) includible in such individual’s gross income for such taxable year.</text> </clause></subparagraph><subparagraph id="H47040DA279364899B50032001BD1E888"><enum>(B)</enum><header>No contributions for dependents</header><text>In the case of an individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins, the dollar amount under subparagraph (A) for such individual’s taxable year shall be zero.</text> </subparagraph><subparagraph id="HAC75C03B9B604287B9E43EB79B44CC75"><enum>(C)</enum><header>Special rule in case of joint return</header> <clause id="H0F3D69037F4A4F0090B895CF555C247E"><enum>(i)</enum><header>In general</header><text>In the case of an individual to whom this clause applies, the amount determined under subparagraph (A)(ii) with respect to such individual for the taxable year shall not be less than an amount equal to the sum of—</text> <subclause id="H6B22C9ECAEF44755AD6B923F68499B21"><enum>(I)</enum><text>the compensation of such individual includible in gross income for the taxable year, plus</text> </subclause><subclause id="H6FF73270A4144D3FA8C199D3F03F3DBB"><enum>(II)</enum><text display-inline="yes-display-inline">the compensation of such individual’s spouse includible in gross income for the taxable year reduced (but not below zero) by the amount contributed for the taxable year to all Universal Savings Accounts maintained for the benefit of such spouse.</text> </subclause></clause><clause id="H9505B5D44D1E4610BF1F45403AE9F16F"><enum>(ii)</enum><header>Individual to whom clause <enum-in-header>(i)</enum-in-header> applies</header><text display-inline="yes-display-inline">Clause (i) shall apply to any individual—</text> <subclause id="H860B0BEDE4B74833BC52A2B3E87A846E"><enum>(I)</enum><text>who files a joint return for the taxable year, and</text> </subclause><subclause id="H0E81F1FAEB9E49708620A7586E6027A0"><enum>(II)</enum><text>whose compensation includible in gross income for the taxable year is less than the compensation of such individual’s spouse includible in gross income for the taxable year.</text> </subclause></clause></subparagraph><subparagraph id="HCF84A1F632414D2D9C8C2F9B3856FDAC"><enum>(D)</enum><header>Cost-of-living adjustment</header><text>In the case of any taxable year beginning in a calendar year after 2019, the $2,500 amount under subparagraph (A)(i) shall be increased by an amount equal to—</text> <clause id="HACBF2CE0B9D04E7995162289858CB7FA"><enum>(i)</enum><text>such dollar amount, multiplied by</text> </clause><clause id="H73167FC7D37546679255E64129966916"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting <quote>calendar year 2018</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text> </clause><continuation-text continuation-text-level="subparagraph">If any amount after adjustment under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100.</continuation-text></subparagraph></paragraph></subsection><subsection id="HB886460B9795448F87186CB54240E501"><enum>(d)</enum><header>Qualified rollover contribution</header><text>For purposes of this section, the term <term>qualified rollover contribution</term> means a contribution to a Universal Savings Account from another such account of the same individual, but only if such amount is contributed not later than the 60th day after the distribution from such other account.</text> </subsection><subsection id="H2FC6F45C91D14817AACC4A0232BF6121"><enum>(e)</enum><header>Treatment of account upon death</header><text>Upon death of any account holder of a Universal Savings Account—</text> <paragraph id="H1F2364F6AFFC48EB8F817A661F70FFBC"><enum>(1)</enum><header>Spouse</header><text>In the case of the account holder’s surviving spouse acquiring such account holder’s interest in such account by reason of the death of the account holder, such account shall be treated as if the spouse were the account holder.</text> </paragraph><paragraph id="HB022CEE8B169497A80903415C89720E2"><enum>(2)</enum><header>Other cases</header><text>In any other case—</text> <subparagraph id="HFD9CCCAED7DD4489B6EF61F1CB112C49"><enum>(A)</enum><text>all amounts in such account shall be treated as distributed on the date of such individual’s death, and</text> </subparagraph><subparagraph id="H82787EDFD5F7469681BCAEE6E210828A"><enum>(B)</enum><text>such account shall cease to be treated as a Universal Savings Account.</text> </subparagraph></paragraph></subsection><subsection id="H314D6B4B24184429AC963D6F2B40FCF5"><enum>(f)</enum><header>Other special rules</header> <paragraph id="H597FBBF475D94C49B952D219D2EF8A7F"><enum>(1)</enum><header>Community property laws</header><text>This section shall be applied without regard to any community property laws.</text> </paragraph><paragraph id="H473041F08FDF4E31970594D862BDE624"><enum>(2)</enum><header>Loss of taxation exemption of account where individual engages in prohibited transaction; effect of pledging account as security</header><text display-inline="yes-display-inline">Rules similar to the rules of paragraphs (2) and (4) of section 408(e) shall apply to any Universal Savings Account.</text> </paragraph></subsection><subsection id="H4B944499D7344C7BA59071E32E227D35"><enum>(g)</enum><header>Reports</header><text>The trustee of a Universal Savings Account shall make such reports regarding such account to the Secretary and to the account holder with respect to contributions, distributions, and such other matters as the Secretary may require. Such reports shall be—</text> <paragraph id="HA31E51183EE24CF29998D8A5BD41C4DA"><enum>(1)</enum><text>filed at such time and in such manner as the Secretary provides, and</text> </paragraph><paragraph id="H7A537D97038C41F39629AE9A5B9003C4"><enum>(2)</enum><text>furnished to account holders—</text> <subparagraph id="HE1B820623B43411F8AEDBDBA4BB0D49C"><enum>(A)</enum><text>not later than January 31 of the calendar year following the calendar year to which such reports relate, and</text> </subparagraph><subparagraph id="HF148956141DA47D89B382450B54162D2"><enum>(B)</enum><text>in such manner as the Secretary provides.</text></subparagraph></paragraph></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HABEDAC370CDF48A58F25AFDA635E3F10"><enum>(b)</enum><header>Tax on excess contributions</header> <paragraph id="HB05D2D1E37F746AB8C4B0EF86DE57D9F"><enum>(1)</enum><header>In general</header><text>Section 4973(a) of such Code is amended by striking <quote>or</quote> at the end of paragraph (5), by inserting <quote>or</quote> at the end of paragraph (6), and by inserting after paragraph (6) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HE65F3962FFA849ECB0710674985E77A1" style="OLC"> <paragraph id="H499E9FEB5F9242AB817C2A039924944C"><enum>(7)</enum><text>a Universal Savings Account (as defined in section 530U),</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H577A78A6425D40D48826178AAEF99EDA"><enum>(2)</enum><header>Excess contribution</header><text>Section 4973 of such Code is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H0BEB19AF055A469EBFFE4B682E57BB26" style="OLC"> <subsection id="HAA398D2D773A40099F97DF6C49E3B90E"><enum>(i)</enum><header>Excess contributions to universal savings accounts</header><text>For purposes of this section—</text> <paragraph id="HCA04C2410EFC46F7B692EB54AABD54E5"><enum>(1)</enum><header>In general</header><text>In the case of Universal Savings Accounts (within the meaning of section 530U), the term <term>excess contributions</term> means the sum of—</text> <subparagraph id="H4DD5539F97954EF2977C5F173F905904"><enum>(A)</enum><text>the amount (if any) by which the amount contributed for the taxable year to such accounts (other than qualified rollover contributions (as defined in section 530U(d))) exceeds the contribution limit under section 530U(c)(2) for such taxable year, and</text> </subparagraph><subparagraph id="H557F18F5479F4C05AE94FB7A4996F890"><enum>(B)</enum><text>the amount determined under this subsection for the preceding taxable year, reduced by the sum of—</text> <clause id="HD5F4DE97A17F41AE81AF1911D967C004"><enum>(i)</enum><text>the distributions out of the account for the taxable year, and</text> </clause><clause id="H436A50B72AA94C93B1437CDC5B3F332F"><enum>(ii)</enum><text>the amount (if any) by which the maximum amount allowable as a contribution under section 530U(c)(2) for the taxable year exceeds the amount contributed to the accounts for the taxable year.</text> </clause></subparagraph></paragraph><paragraph id="HB7E3AD4C7D764868BCBA6DB358F55687"><enum>(2)</enum><header>Special rule</header><text>A contribution shall not be taken into account under paragraph (1) if such contribution (together with the amount of net income attributable to such contribution) is distributed to the account holder on or before the due date of the account holder’s return of tax for such taxable year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HAA7988987A6D442CA49E626246B2A458"><enum>(c)</enum><header>Tax on prohibited transactions</header><text>Section 4975(e)(1) of such Code is amended by striking <quote>or</quote> at the end of subparagraph (F), by striking the period at the end of subparagraph (G) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H499BF7E6AA1C4682AA424AE8361CC0BD" style="OLC"> <subparagraph id="H3A37B068CC634485B8DC0B041246ECA2"><enum>(H)</enum><text display-inline="yes-display-inline">a Universal Savings Account (as defined in section 530U).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3BFD4E8BDEAB46BFB27E9AF2C225B159"><enum>(d)</enum><header>Failure To provide reports on universal savings accounts</header><text>Section 6693(a)(2) of such Code is amended by striking <quote>and</quote> at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting <quote>, and</quote>, and by inserting after subparagraph (F) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H87EBF472739349CF84A22BE06A5BFEFD" style="OLC"> <subparagraph id="H59307BB2FC5648BEAD3CA9A2472C7753"><enum>(G)</enum><text>section 530U(g) (relating to Universal Savings Accounts).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H13578B9B5D41402182C949CE3881400E"><enum>(e)</enum><header>Conforming amendment</header><text>The table of parts for subchapter F of chapter 1 of such Code is amended by adding at the end the following new item:</text> <quoted-block id="HDC26CC85E9E44315AB64D021D1FC4D79" other-style="archaic" style="other"> <toc> <toc-entry bold="off" level="part">Part IX. Universal savings accounts</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H39A3DDE640054D0280D8762942653F93"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2018.</text> </subsection></section><section id="HAE162CB14042448B84F1E5DA7037DAF9"><enum>302.</enum><header>Expansion of section 529 plans</header> <subsection commented="no" id="H6D497BE07E5843C89A702503889F98B6"><enum>(a)</enum><header>Distributions for certain expenses associated with registered apprenticeship programs</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/529">Section 529(c)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF3B27FB38E974010AF0A20C981B735AD" style="OLC"> <paragraph commented="no" id="H7A50645ED2F541F9961F41CB7CA1D8FB"><enum>(8)</enum><header>Treatment of certain expenses associated with registered apprenticeship programs</header><text display-inline="yes-display-inline">Any reference in this subsection to the term <quote>qualified higher education expense</quote> shall include a reference to expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act (<external-xref legal-doc="usc" parsable-cite="usc/29/50">29 U.S.C. 50</external-xref>).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9F90DC5BD9294120B2034A689AFF1223"><enum>(b)</enum><header>Distributions for certain homeschooling expenses</header><text display-inline="yes-display-inline">Section 529(c)(7) of such Code is amended by striking <quote>include a reference to</quote> and all that follows and inserting</text> <quoted-block display-inline="yes-display-inline" id="HF8821E5479234E0A8B1EEF113143A329" style="OLC"> <text>include a reference to—</text><subparagraph id="H78392C33BE8B40308A89FF5181553B89"><enum>(A)</enum><text>expenses for tuition in connection with enrollment or attendance of a designated beneficiary at an elementary or secondary public, private, or religious school, and</text> </subparagraph><subparagraph id="HB2106BE30414493F9465C9C826AC27C0"><enum>(B)</enum><text>expenses, with respect to a designated beneficiary, for—</text> <clause id="H94DD22F95F334871987998B8A25BFE35"><enum>(i)</enum><text>curriculum and curricular materials,</text> </clause><clause id="HAC5BAF67F28E476582908885C9F1A69A"><enum>(ii)</enum><text>books or other instructional materials,</text> </clause><clause id="H697FDC28D64E430282ED8F00033624CA"><enum>(iii)</enum><text>online educational materials,</text> </clause><clause id="H70D7E5F3F2B34048B163EDC8DF2C9AFC"><enum>(iv)</enum><text>tuition for tutoring or educational classes outside of the home (but only if the tutor or class instructor is not related (within the meaning of section 152(d)(2)) to the student),</text> </clause><clause id="H1AA34711E44A4C01B06C7312BFB19676"><enum>(v)</enum><text>dual enrollment in an institution of higher education, and</text> </clause><clause id="H915DF5A0CB144FF9920CA0D1121B5D7C"><enum>(vi)</enum><text>educational therapies for students with disabilities,</text> </clause><continuation-text continuation-text-level="subparagraph">in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HCD8A7A24830E4D41B6802A007E764FDF"><enum>(c)</enum><header>Distributions for qualified education loan repayments</header> <paragraph id="H9CBE1BDA185D4F3C801FA9CE524C254F"><enum>(1)</enum><header>In general</header><text>Section 529(c) of such Code, as amended by subsection (a), is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HA640D5D843DF4218960E7F239EAF5EF6" style="OLC"> <paragraph id="H5F730295F97D4CD2B63BBB6DD68EAE34"><enum>(9)</enum><header>Treatment of qualified education loan repayments</header> <subparagraph id="H0BA84229AFB84CC19D930EF99D07AE14"><enum>(A)</enum><header>In general</header><text>Any reference in this subsection to the term <quote>qualified higher education expense</quote> shall include a reference to amounts paid as principal or interest on any qualified education loan (as defined in section 221(d)) of the designated beneficiary or a sibling of the designated beneficiary.</text> </subparagraph><subparagraph id="H139FE56BE81B4BC4B543F51D68B0C498"><enum>(B)</enum><header>Limitation</header><text>The amount of distributions treated as a qualified higher education expense under this paragraph with respect to the loans of any individual shall not exceed $10,000 (reduced by the amount of distributions so treated for all prior taxable years).</text> </subparagraph><subparagraph id="H6522D774C2444E55A22AA55E7F1EB5B6"><enum>(C)</enum><header>Special rules for siblings of the designated beneficiary</header> <clause id="H972BE53F089B4D0396A06496815E0DA3"><enum>(i)</enum><header>Separate accounting</header><text>For purposes of subparagraph (B) and subsection (d), amounts treated as a qualified higher education expense with respect to the loans of a sibling of the designated beneficiary shall be taken into account with respect to such sibling and not with respect to such designated beneficiary.</text> </clause><clause id="H6A9AF75165F64372B4DD87961E79B7F0"><enum>(ii)</enum><header>Sibling defined</header><text>For purposes of this paragraph, the term <quote>sibling</quote> means an individual who bears a relationship to the designated beneficiary which is described in section 152(d)(2)(B).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H589649BC5F534DC79163A8BD8ADF6C5B"><enum>(2)</enum><header>Coordination with deduction for student loan interest</header><text>Section 221(e)(1) of such Code is amended by adding at the end the following: <quote>The deduction otherwise allowable under subsection (a) (prior to the application of subsection (b)) to the taxpayer for any taxable year shall be reduced (but not below zero) by so much of the distributions treated as a qualified higher education expense under section 529(c)(9) with respect to loans of the taxpayer as would be includible in gross income under section 529(c)(3)(A) for such taxable year but for such treatment.</quote>.</text> </paragraph></subsection><subsection id="HB017C49FCE274FAE94F38638AC9ED9FA"><enum>(d)</enum><header>Distributions for certain elementary and secondary school expenses in addition to tuition</header><text>Section 529(c)(7)(A), as amended by subsection (b), is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H3A8E225CAF5A412C80E2B4E9C8A48635" style="OLC"> <subparagraph id="HB514D2E340B844139529E214C5F2D9BE"><enum>(A)</enum><text display-inline="yes-display-inline">expenses described in section 530(b)(3)(A)(i) in connection with enrollment or attendance of a designated beneficiary at an elementary or secondary public, private, or religious school, and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HFA93FA8EEDE744BBADCA6CB785A65262"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after December 31, 2018.</text> </subsection></section><section id="HEE32498DE4E64868933C639432E76DD2" section-type="subsequent-section"><enum>303.</enum><header>Penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption</header> <subsection id="H09F03813ED11478A9B359269290D2BBB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/72">Section 72(t)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HD8057A479962474A88ECA7168DEE66CA" style="OLC"> <subparagraph id="H0A2A11D0C03740AFA64E0BD9494EB85B"><enum>(H)</enum><header>Distributions from retirement plans in case of birth of child or adoption</header> <clause id="H53B0FD9CDE1C40D2916CE8B89E08464B"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Any qualified birth or adoption distribution.</text> </clause><clause id="H37E452C51E7946AFA7785AE9263C24C4"><enum>(ii)</enum><header>Limitation</header><text>The aggregate amount which may be treated as qualified birth or adoption distributions by any individual with respect to any birth or adoption shall not exceed $7,500.</text> </clause><clause id="H8790769C874144A99D217779ACFD3F06"><enum>(iii)</enum><header>Qualified birth or adoption distribution</header><text>For purposes of this subparagraph—</text> <subclause id="HFC381F575B60498594E900CE75C20608"><enum>(I)</enum><header>In general</header><text>The term <quote>qualified birth or adoption distribution</quote> means any distribution from an applicable eligible retirement plan to an individual if made during the 1-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible child is finalized.</text> </subclause><subclause id="HABFADFE2C8114271906383FE489864CD"><enum>(II)</enum><header>Eligible child</header><text>The term <quote>eligible child</quote> means any individual (other than a child of the taxpayer’s spouse) who has not attained age 18 or is physically or mentally incapable of self-support.</text> </subclause></clause><clause id="HE58F7C656286457EA2147C16AE478E5A"><enum>(iv)</enum><header>Treatment of plan distributions</header> <subclause id="H2EFF5322BAC84AEC86BF7BF2E6CCD72C"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">If a distribution to an individual would (without regard to clause (ii)) be a qualified birth or adoption distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $7,500.</text> </subclause><subclause id="HA175CC35EEDA470EA3A11324F931D0E0"><enum>(II)</enum><header>Controlled group</header><text display-inline="yes-display-inline">For purposes of subclause (I), the term <quote>controlled group</quote> means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.</text> </subclause></clause><clause id="H3145A612F645444E96791785B663D639"><enum>(v)</enum><header>Amount distributed may be repaid</header> <subclause id="H1363EB66858C4AB4ACD6DC1BE423888C"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">Any individual who receives a qualified birth or adoption distribution may make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.</text> </subclause><subclause id="HAE6B943821E1456EB12DBA997654AFF8"><enum>(II)</enum><header>Limitation on contributions to applicable eligible retirement plans other than IRAs</header><text display-inline="yes-display-inline">The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of qualified birth or adoption distributions which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.</text> </subclause><subclause id="H3EC8970EA8A34679BE02CD57A19A85B9"><enum>(III)</enum><header>Treatment of repayments of distributions from applicable eligible retirement plans other than IRAs</header><text display-inline="yes-display-inline">If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </subclause><subclause id="HAA1B300FB2834C61B8EBA8357CBC13C7"><enum>(IV)</enum><header>Treatment of repayments for distributions from IRAs</header><text display-inline="yes-display-inline">If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </subclause></clause><clause id="H936061D020854EDFB2EED30FD5335127"><enum>(vi)</enum><header>Definition and special rules</header><text>For purposes of this subparagraph—</text> <subclause commented="no" id="H2BD6359C6A9445579FDDEE25DB71E706"><enum>(I)</enum><header>Applicable eligible retirement plan</header><text display-inline="yes-display-inline">The term <quote>applicable eligible retirement plan</quote> means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan.</text> </subclause><subclause id="H1616F6F1814A46B1946783426B12646C"><enum>(II)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text display-inline="yes-display-inline">For purposes of sections 401(a)(31), 402(f), and 3405, a qualified birth or adoption distribution shall not be treated as an eligible rollover distribution.</text> </subclause><subclause id="H8B292E02742B447682FDC78345A1BC71"><enum>(III)</enum><header>Taxpayer must include TIN</header><text display-inline="yes-display-inline">A distribution shall not be treated as a qualified birth or adoption distribution with respect to any child or eligible child unless the taxpayer includes the name, age, and TIN of such child or eligible child on the taxpayer’s return of tax for the taxable year.</text> </subclause><subclause id="HE843FF8A30A54BAEBF4B3E9B75D8A869"><enum>(IV)</enum><header>Distributions treated as meeting plan distribution requirements</header><text display-inline="yes-display-inline">Any qualified birth or adoption distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H61462E846484488EAB4C8AD7DB9AE444"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to distributions made after December 31, 2018.</text> </subsection></section>