<enum>I</enum><header>Expanding and preserving retirement savings</header> <section id="idc45084c26ad74390a92b6cdb5d28ae08"><enum>101.</enum><header>Multiple employer plans</header> <subsection id="idD45576625A7043FF9134B59E3F67A53C"><enum>(a)</enum><header>Qualification requirements</header> <paragraph id="id7ACDEFB3538D4FF79ED953ECDE083237"><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="id09DFB9AF9AE24B4DBC0E7A3931908FF5" style="OLC"> <subsection id="id0FC64559BF3248DB8B9DDC9A35296205"><enum>(e)</enum><header>Application of qualification requirements for certain multiple employer plans with pooled plan providers</header> <paragraph id="id8DC78F05A6694DEA986F316E838DE017"><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="id133673C1C1784496BBA17AE9B5CC34D2"><enum>(A)</enum><text>is sponsored by employers all of which have both a common interest other than having adopted the plan and control of the plan, or</text> </subparagraph><subparagraph id="id425CB2FDFD5B492B97C9EDF726BF387C"><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="id6CDF5125AB0C48DC8276FEFE4DA3AE54"><enum>(2)</enum><header>Limitations</header> <subparagraph id="id9DB7581584004AF39A035A89822DBBC0"><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 cases of employers failing to take the actions described in paragraph (1)—</text> <clause id="idCAFDBE35DDE44FAEAD21C8B854423FAB"><enum>(i)</enum><text>the assets of the plan attributable to employees of the employer will be transferred to a plan maintained only by the 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 such employees to retain the assets in the plan, and</text> </clause><clause id="id7C0AE907FE62476AA43FEDB8805FA650"><enum>(ii)</enum><text>the employer described in clause (i) (and not the plan with respect to which the failure occurred or any other participating 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 the employer.</text> </clause></subparagraph><subparagraph id="idA4B0EF51C3E24D118D0D5F2BF75D0421"><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, in the Secretary's own discretion, 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="idA376F784BCA14273A9B75AC9B6EEE296"><enum>(3)</enum><header>Pooled plan provider</header><text>For purposes of this subsection—</text> <subparagraph commented="no" id="idDCE2CB1C0D70461987743741A0FD50EF"><enum>(A)</enum><header>In general</header><text>The term <term>pooled plan provider</term> means, with respect to any plan, a person who—</text> <clause commented="no" id="id53E91254826441EDAD747B9301C4BC6F"><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 employees of each participating employer) which are reasonably necessary to ensure that—</text> <subclause id="idAB4B56897E474399A0D4325524A19698"><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="idEEBD5DF1EBB7428DB14DFB2624F80F74"><enum>(II)</enum><text>each participating employer 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 is necessary to administer the plan or to allow the plan to meet such requirements,</text> </subclause></clause><clause commented="no" id="idE3D49766D8774D22AC234AAF6B076B8E"><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="idFF9B516FAD5546BF847F1B7DE1BA7B27"><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="id915329E643B5496E9F14083D77B86B8F"><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="id55BA16D1AF31407AAC366CCC24D8E2D0"><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></paragraph><paragraph id="id79AAAC7944224B05AD000848361E9A58"><enum>(4)</enum><header>Guidance</header> <subparagraph id="id3B63C8AB0F874BE99CAEF8B26DAB7FD8"><enum>(A)</enum><header>In general</header><text>The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this subsection, including guidance—</text> <clause id="id80507FEF03E047EB97EE1E62B488D3B1"><enum>(i)</enum><text>to identify the administrative duties and other actions required to be performed by a pooled plan provider under this subsection,</text> </clause><clause id="id4A775EB7836448029FA73B1B1D4DCA8C"><enum>(ii)</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 participating employer of the plan and the assets and liabilities of the plan with respect to employees of that employer, and</text> </clause><clause id="idBEDDD467831943BB9600E4F0EBE2D85F"><enum>(iii)</enum><text>identifying appropriate cases to which the rules of paragraph (2)(A) will apply to employers failing to take the actions described in paragraph (1).</text> </clause><continuation-text continuation-text-level="subparagraph">The Secretary shall take into account under clause (iii) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements applicable to the plan under section 401(a) or 408, whichever is applicable, has continued over a period of time that clearly demonstrates a lack of commitment to compliance.</continuation-text></subparagraph><subparagraph id="idDAEEC44603504E29BDB23BCA0ADE3CE3"><enum>(B)</enum><header>Prospective application</header><text>Any guidance issued by the Secretary under this paragraph shall not apply to any action or failure occurring before the issuance of such guidance.</text> </subparagraph></paragraph><paragraph id="id41598937D6A84BEC98CAA561B8ED85B5"><enum>(5)</enum><header>Model plan</header><text>The Secretary shall, in consultation with the Secretary of Labor when appropriate, 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="id38E8303139B945F9829E12BB5D6AB155"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (3) of section 413(b) 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="id98DAED415B2B48C2B9459A3297F45EDA"><enum>(3)</enum><header>Technical amendment</header><text>Subsection (c) of section 408 of such Code is amended by inserting after paragraph (2) the following new paragraph:</text> <quoted-block act-name="" id="id831019B39C744DDB9A79873527666D0B" style="OLC"> <paragraph id="idC866AAA9A6944C80A9D9A9ADDDD9499B"><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="id519441F32F3B4721A51BFDEE98845AF5"><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="id7C374883CA05471CA7402A4FB48E4909" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="id099E623BA12E484B8850BF37BBA0C26B"><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="id7CA87AC84A4344E7A13FEFE4DE3BDCF9"><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="idA0403BE94523421F9F874D73E08C7620"><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="idD0A77B136EF1432E982A34E902F24A29"><enum>(c)</enum><header>Pooled employer plan and provider defined</header> <paragraph id="id4938F84C810C46889721BE2AF51083F6"><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="id533a21ff67b441ca819866445989fd79" style="OLC"> <paragraph id="id57997e715cd74b508cc9c7939e6e5da8"><enum>(43)</enum><header>Pooled employer plan</header> <subparagraph id="idF5DD7E6C67494130A6AE68B4ADFF7DA5"><enum>(A)</enum><header>In general</header><text>The term <term>pooled employer plan</term> means a plan—</text> <clause id="id2CE27604C1544C6BBA57DDDBD63E1C07"><enum>(i)</enum><text>which is an individual account plan established or maintained for the purpose of providing benefits to the employees of two or more employers;</text> </clause><clause id="id87FD17AB318C48D6BE46F927CBDA3067"><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="id7602DBF32C124CD1BA1381D3C716A3BF"><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 with respect to which all of the participating employers have both a common interest other than having adopted the plan and control of the plan.</continuation-text></subparagraph><subparagraph id="id00B64B25D6CC4F52A092CDC7396CE037"><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="idA98B3C5BF3FB48F98BB8E8C5FFF845F2"><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="idAB06063A453047B6A95BBF996D34E785"><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 a participating employer) 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="id0A0EE62945E448B581EB55BAC5F63341"><enum>(iii)</enum><text>provide that each participating employer retains fiduciary responsibility for—</text> <subclause id="id92CA6F0647D8459C80D2569858F840D2"><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="idD1F533AF9A8F41BB9FDEB6A7E1780EC4"><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 that portion of the plan’s assets attributable to the employees of that participating employer;</text> </subclause></clause><clause id="id563797F3F7254F37A939BCACFCD9CE89"><enum>(iv)</enum><text>provide that a participating employer, or a participant or beneficiary, is 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="id83192CED87D0420A970F30B53209C4B7"><enum>(v)</enum><text>require—</text> <subclause id="id0F49E99B2FE04B0CA44D16B6F270F3BE"><enum>(I)</enum><text>the pooled plan provider to provide to participating employers 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 participating employers; and</text> </subclause><subclause id="id75B820AC27B842BA9D74D2AD88DC91CB"><enum>(II)</enum><text>each participating employer 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 is necessary to administer the plan or to allow the plan to meet such requirements; and</text> </subclause></clause><clause id="id7B21B26FA201470282559DC65AB994B2"><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 participating employers.</text> </clause></subparagraph><subparagraph id="id010316B15866464EADD6DA1CE2325CA6"><enum>(C)</enum><header>Exceptions</header><text>The term <term>pooled employer plan</term> does not include—</text> <clause id="id33BD2CF78BD244359167D7CA27A23BE6"><enum>(i)</enum><text>a multiemployer plan; or</text> </clause><clause id="idB0EC377949D546B2ABB991DD85FC94FF"><enum>(ii)</enum><text>a plan established before the date of the enactment of the <short-title>Retirement Enhancement and 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></paragraph><paragraph id="idACD3BD1E0ED443B8BC546664B8907A9D"><enum>(44)</enum><header>Pooled plan provider</header> <subparagraph id="idA693FB3531AE45D8AD4FB43590E03502"><enum>(A)</enum><header>In general</header><text>The term <term>pooled plan provider</term> means a person who—</text> <clause id="id7DEE21E302A4490886F30E7D8C938F53"><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 employees of each participating employer) which are reasonably necessary to ensure that—</text> <subclause id="id431B387A8F384946A5AD71941B8F17BC"><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="idA5B48A69F73A4A40A35198B100ACD77F"><enum>(II)</enum><text>each participating employer 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="idE7CBB87B7FD34B6097CA4CD50A192D6B"><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="id79604AC17BC34424BF7DCF5A64D45FE1"><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="id6E233A2161E34B5485287043D49D86B9"><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="id203A93067A884A56B08E5323769B35DD"><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="idE43324ED3B3A46D2B675D109088FCB57"><enum>(C)</enum><header>Guidance</header> <clause id="id342A0BC6C8BB419F9E9D45CECA3572E1"><enum>(i)</enum><header>In general</header><text>The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this paragraph and paragraph (43), including guidance—</text> <subclause id="id7E3B393DBB7C4FFD95F4CCE926F4932D"><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> </subclause><subclause id="id137FAF8EA2724EBE85C34A11B75974F8"><enum>(II)</enum><text>which requires in appropriate cases that if a participating employer fails to take the actions required under subparagraph (A)(i)(II)—</text> <item id="id94B463BBCE754F6BAB11B79539570A8B"><enum>(aa)</enum><text>the assets of the plan attributable to employees of the participating employer are transferred to a plan maintained only by the participating 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> </item><item id="id177635A8B17F4A81BBAF9105E15D3C0B"><enum>(bb)</enum><text>the participating employer described in item (aa) (and not the plan with respect to which the failure occurred or any other participating 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 the participating employer.</text> </item></subclause><continuation-text continuation-text-level="clause">The Secretary shall take into account under subclause (II) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements described in subparagraph (A)(i)(II) has continued over a period of time that clearly demonstrates a lack of commitment to compliance. The Secretary may waive the requirements of subclause (II)(aa) in appropriate circumstances if the Secretary determines it is in the best interests of the employees of the participating employer described in such clause to retain the assets in the plan with respect to which the employer's failure occurred.</continuation-text></clause><clause commented="no" display-inline="no-display-inline" id="id9AF5E14023E14AFC88B393877379DCD7"><enum>(ii)</enum><header display-inline="yes-display-inline">Prospective application</header><text display-inline="yes-display-inline">Any guidance issued by the Secretary under this subparagraph shall not apply to any action or failure occurring before the issuance of such guidance.</text> </clause></subparagraph><subparagraph id="id80E46B83B4564440BAFC99CFE7F212DC"><enum>(D)</enum><header>Aggregation rules</header><text>For purposes of this paragraph—</text> <clause id="id6AF02DFA3B3C462EBA41DB4CBDFC8577"><enum>(i)</enum><header>In general</header><text>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 are members of the same controlled group and who perform services for the plan shall be treated as one person.</text> </clause><clause id="idFAE0949020004C37A23AA7D13FA8639D"><enum>(ii)</enum><header>Members of common group</header><text>Persons shall be treated as members of the same controlled group if such persons are treated as a single employer under subsection (c) or (d) of section 210.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="idD9024989A04B432A9E873FE26D150C2B"><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="id18855953153046EC9B8776DFEA2CDE05"><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="id62C561EB58E5484DBBD574213DEE867E"><enum>(A)</enum><text>in paragraph (16)(B)—</text> <clause commented="no" id="idFAD87A5C991B447BB9C1FCBD5CF6703F"><enum>(i)</enum><text>by striking <quote>or</quote> at the end of clause (ii); and</text> </clause><clause commented="no" id="id1E34F910B28D406DB0D762CABF961D30"><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="id868FBC23B1134775838E37A836D5E31D"><enum>(B)</enum><text>by striking the second paragraph (41).</text> </subparagraph></paragraph></subsection><subsection id="id7E8BEA51ACEA4CD48B1F2EFA701D6ADA"><enum>(d)</enum><header>Effective date</header> <paragraph id="idAE1B053C9F58450B90AB50A36A8817F5"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to years beginning after December 31, 2021.</text> </paragraph><paragraph id="id54792270814D40799047AA20970C03C6"><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 amendment) 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="id28B5BC0A474B4A969FB5949BF2F6056D"><enum>102.</enum><header>Pooled employer and multiple employer plan reporting</header> <subsection id="id6a00e9d36b6942108438880f9d206c2d"><enum>(a)</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> <paragraph id="id3d3c6305f3764393ab0c7e242f233ace"><enum>(1)</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> </paragraph><paragraph id="id9aba00d4ceea4fabb406266a089c9808"><enum>(2)</enum><text>by amending subsection (g) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idc335fbe8d8b5427bb6b08aebc58c7c9f" style="OLC"> <subsection id="id95eb050601324a51917cb5e54711e7db"><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="id9C2B9F7F54794F1A9BC976EB5D7E9FD0"><enum>(1)</enum><text>with respect to any plan to which section 210(a) applies (including a pooled employer plan), a list of participating employers and a good faith estimate of the percentage of total contributions made by such participating employers during the plan year; and</text> </paragraph><paragraph id="idBD13C8BFC1854A65B30F8ED5AFAE3BAA"><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> </paragraph></subsection><subsection id="id2ddf74115b9248ce9fcd9ea680e0df20"><enum>(b)</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="id50A7BE44FAAC4ECD883FD749337DDC9B" style="OLC"> <paragraph id="idF1EEE7E2FBD34820B744975A1B9E5B38"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id001E7D186A604C649FB56BB2C82F39D0"><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="id03E4613875154068B70514C78CD3206E" indent="up1"><enum>(i)</enum><text>covers fewer than 100 participants; or</text> </clause><clause id="id42ACE3D9B0374C28AC696A73D771EEB8" 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 participating employer has 100 or more participants covered by the plan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id20C6696BCABC42B4A5BA450F0735E68A"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to annual reports for plan years beginning after December 31, 2021.</text> </subsection></section><section id="H8DA23EF7DF2A4F8CA9A84C0B8E8FB15A"><enum>103.</enum><header>Removal of 10 percent cap from automatic enrollment safe harbor after 1st plan year</header> <subsection id="HE7E7BC3EC01140AD94427E8B791A1C2D"><enum>(a)</enum><header>In general</header><text>Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(13)(C)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>, does not exceed 10 percent, and is at least</quote> and inserting <quote>and is</quote>.</text> </subsection><subsection id="H18AE74D377A2430697CED1E35652BBE1"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H81645D866E5E4CB5A62D29F7211638A3"><enum>(1)</enum><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(13)(C)(iii)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>3 percent</quote> and inserting <quote>at least 3 percent, but not greater than 10 percent,</quote>.</text> </paragraph><paragraph id="HB6874322D6DD498C82EDDD6122723215"><enum>(2)</enum><text>Subclause (II) of section 401(k)(13)(C)(iii) of such Code is amended by striking <quote>4 percent</quote> and inserting <quote>at least 4 percent</quote>.</text> </paragraph><paragraph id="H97B8BA0D26EB42FE92FD9ED1A5D901E0"><enum>(3)</enum><text>Subclause (III) of section 401(k)(13)(C)(iii) of such Code is amended by striking <quote>5 percent</quote> and inserting <quote>at least 5 percent</quote>.</text> </paragraph><paragraph id="H2D573C6EA3614D49B2F41F4DA5E073D7"><enum>(4)</enum><text>Subclause (IV) of section 401(k)(13)(C)(iii) of such Code is amended by striking <quote>6 percent</quote> and inserting <quote>at least 6 percent</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1C9AB0A55C77423F9D84B2DB2D36A439"><enum>(c)</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="id9350CEEB13A34822A3C6ECC0957E6B76"><enum>104.</enum><header>Rules relating to election of safe harbor <enum-in-header>401(k)</enum-in-header> status</header> <subsection commented="no" id="id9C3CF37D80E346C7A449789F64E7744A"><enum>(a)</enum><header>Limitation of annual safe harbor notice to matching contribution plans</header> <paragraph commented="no" id="idFB17F2CFD0674A51A507282000D63FB4"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(12)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>if such arrangement</quote> and all that follows and inserting “if such arrangement—</text> <quoted-block display-inline="no-display-inline" id="idA3D8C4309E1B43E4996037D3792F1D5F" style="OLC"> <clause commented="no" id="id3CC107ECA7CA4B2AA98C3B1BC9C47723"><enum>(i)</enum><text>meets the contribution requirements of subparagraph (B) and the notice requirements of subparagraph (D), or</text> </clause><clause commented="no" display-inline="no-display-inline" id="id8E14BD76EF42476E9B5A354EDCE88351"><enum>(ii)</enum><text>meets the contribution requirements of subparagraph (C).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="idD18939D921D24698910A2D5FA07F59CE"><enum>(2)</enum><header>Automatic contribution arrangements</header><text>Subparagraph (B) of section 401(k)(13) of such Code is amended by striking <quote>means</quote> and all that follows and inserting “means a cash or deferred arrangement—</text> <quoted-block display-inline="no-display-inline" id="idF830A9DC9FFC4C598462384655E9DCC4" style="OLC"> <subparagraph commented="no" id="id3C0F801BB2064F5B9E36DC0D8715704A"><enum>(A)</enum><text>which is described in subparagraph (D)(i)(I) and meets the applicable requirements of subparagraphs (C) through (E), or</text> </subparagraph><subparagraph commented="no" id="id0CD6C71B056B4CE8A9EB91253A5FB46A"><enum>(B)</enum><text>which is described in subparagraph (D)(i)(II) and meets the applicable requirements of subparagraphs (C) and (D).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="id2C11760BD3DE4FF991D73808753E6DA0"><enum>(b)</enum><header>Nonelective contributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(12)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id26CE9094CD4A4363A32E72D911828BBA" style="OLC"> <subparagraph commented="no" id="id7BB5CBEE14254379A7D1EC2E013EAFEB"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="id1A4F417E064B468F9E289E08756FAB11"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (C) shall apply to the arrangement for the plan year, but only if the amendment is adopted—</text> <subclause commented="no" id="idCA67569D552C416A860D1F1A9A93D32D"><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="id84F14A2176F6492B9F8079523483FD84"><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="id0CAFA6C385AC4B53B27F1ACDFA8E1444"><enum>(ii)</enum><header>Exception where plan provided for matching contributions</header><text>Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (B) or paragraph (13)(D)(i)(I) applied to the plan year.</text> </clause><clause commented="no" id="id15823C3AA4AD477CBCCE9D88ED376AB4"><enum>(iii)</enum><header>4-percent contribution requirement</header><text>Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (C) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idF4F798FF12D2492C995644756771E369"><enum>(c)</enum><header>Automatic contribution arrangements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(13)</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="id9548E7E6F5DE44E5A1F35F36B6DC9F5F" style="OLC"> <subparagraph commented="no" id="id78F47EF016304790BAFDE61FD9216BAE"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="id71F5D24C1EB3433E89860DC07257CDA0"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (D)(i)(II) shall apply to the arrangement for the plan year, but only if the amendment is adopted—</text> <subclause commented="no" id="id54B8975886D547429D68B7D6C5C015BF"><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="id4F8004DBB88849C6988776D4141E5057"><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="id7586538B0788406EAF1909E76D02D7BC"><enum>(ii)</enum><header>Exception where plan provided for matching contributions</header><text>Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (D)(i)(I) or paragraph (12)(B) applied to the plan year.</text> </clause><clause commented="no" id="idC79B681755A44CA2B57C849D75774A3C"><enum>(iii)</enum><header>4-percent contribution requirement</header><text>Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (D)(i)(II) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6044838550CA4239BD836C6BF9B7C112"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2018.</text> </subsection></section><section id="id951D1962310C4DD4AAAF79E97AAD5574" section-type="subsequent-section"><enum>105.</enum><header>Increase in credit limitation for small employer pension plan startup costs</header> <subsection id="H296760C4034D4BBB92C7F56A4202665A"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/45E">section 45E(b)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block id="H730402638C8C45409B483695406FB020" style="OLC"> <paragraph id="HBE31F2B9AAB64EA0B0888224AEDD186B"><enum>(1)</enum><text>for the first credit year and each of the 2 taxable years immediately following the first credit year, the greater of—</text> <subparagraph id="H400890257B684BB681B1CA237359AF80"><enum>(A)</enum><text>$500, or</text> </subparagraph><subparagraph id="H929F5FAE0BCF4CED8929E2BBE406689C"><enum>(B)</enum><text>the lesser of—</text> <clause id="H22F4C6A0B63D4A5FAF16AA638ADCD0D8"><enum>(i)</enum><text>$250 for each employee of the eligible employer who is not a highly compensated employee (as defined in section 414(q)) and who is eligible to participate in the eligible employer plan maintained by the eligible employer, or</text> </clause><clause id="H105202B176104A658D381C41399B3AFD"><enum>(ii)</enum><text>$5,000, and</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H59B39BF39A304511952F970331663148"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idDC8D9D5B12124E3EA61623C0D90F72B7"><enum>106.</enum><header>Small employer automatic enrollment credit</header> <subsection commented="no" id="HCDB3052432584B0D8F4C7F802C75E631"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A 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 section:</text> <quoted-block display-inline="no-display-inline" id="HC132ADEA12D2443BA522956DBA1E3AD5" style="OLC"> <section commented="no" id="H111DE6915B0941C48A1F4A2997A5405D"><enum>45S.</enum><header>Auto-enrollment option for retirement savings options provided by small employers</header> <subsection commented="no" id="HD7AA495025314F9EB34AADD71E6768B8"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 38, in the case of an eligible employer, the retirement auto-enrollment credit determined under this section for any taxable year is an amount equal to—</text> <paragraph commented="no" id="idCCC815A64C6F41F6B6583EB1542174D2"><enum>(1)</enum><text display-inline="yes-display-inline">$500 for any taxable year occurring during the credit period, and</text> </paragraph><paragraph commented="no" id="id034A04D36EF74EF697CB7FBC38D46021"><enum>(2)</enum><text>zero for any other taxable year.</text> </paragraph></subsection><subsection commented="no" id="HF8E21D1948B54E24A16144C55CF7682C"><enum>(b)</enum><header>Credit period</header><text>For purposes of subsection (a)—</text> <paragraph commented="no" id="id3125402D65DC40EFB3F05C2AED3731C2"><enum>(1)</enum><header>In general</header><text>The credit period with respect to any eligible employer is the 3-taxable-year period beginning with the first taxable year for which the employer includes an eligible automatic contribution arrangement (as defined in section 414(w)(3)) in a qualified employer plan (as defined in section 4972(d)) sponsored by the employer.</text> </paragraph><paragraph commented="no" id="id731A5DD4B7054305A9618FCC6E67694B"><enum>(2)</enum><header>Maintenance of arrangement</header><text>No taxable year with respect to an employer shall be treated as occurring within the credit period unless the arrangement described in paragraph (1) is included in the plan for such year.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEC6708C1248743628063D916DB1DE6D3"><enum>(c)</enum><header>Eligible employer</header><text>For purposes of this section, the term <term>eligible employer</term> has the meaning given such term in section 408(p)(2)(C)(i).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H05B740C0FE564DC9AA1D5128414594F1"><enum>(b)</enum><header>Credit To be part of general business credit</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/38">section 38</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>plus</quote> at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H6161790A13DC4C4FB14776A33DD6AC27" style="OLC"> <paragraph commented="no" id="H28FF7B8792A94455A6B648D06029EF94"><enum>(37)</enum><text display-inline="yes-display-inline">in the case of an eligible employer (as defined in section 45S(c)), the retirement auto-enrollment credit determined under section 45S(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H22A43D5535724B4CAD8BE7ED9A482574"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A 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 inserting after the item relating to section 45R the following new item:</text> <quoted-block id="id5532f81a-cbc8-42e8-93cd-b013271719f5" style="OLC"><toc><toc-entry idref="H111DE6915B0941C48A1F4A2997A5405D" level="section">Sec. 45S. Auto-enrollment option for retirement savings options provided by small employers.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HE9E3BC4D100D475EAE709186AFDE72D5"><enum>(d)</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 commented="no" display-inline="no-display-inline" id="idCB186C729E8A4AC48E95343A4B66538D"><enum>107.</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="id5F83BC5C78AD48CD95C09B2DFD25E935"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(f)</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 paid to an individual to aid the individual in the pursuit of graduate or postdoctoral study.</quote>.</text> </subsection><subsection id="idBD48B2D5828044D99A060E39F2A5F20E"><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="idCB6BB790C414444C877C9F75FDD8D84C"><enum>108.</enum><header>Repeal of maximum age for traditional IRA contributions</header> <subsection commented="no" display-inline="no-display-inline" id="idAE563BC301A746DB9BF6E0FF25C26604"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(d)</external-xref> of the Internal Revenue Code of 1986 is repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idCC2EC77A036046339153C4489F4A7317"><enum>(b)</enum><header>Conforming amendment</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/408A">section 408A</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="id5CDE50A6E092413398AC17B2E519FEC0"><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 id="H38ED7858DAC745DE85B3733CE60C7D0A"><enum>109.</enum><header>Expansion of IRA ownership of S corporation bank stock</header> <subsection id="H7ADF64DD14E7415F9A68F8530F2CB8C3"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1361">Section 1361(c)(2)(A)(vi)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>, but only to the extent of the stock held by such trust in such bank or company as of the date of the enactment of this clause</quote>.</text> </subsection><subsection id="H18A417A93FFA495D8AC03A639043C844"><enum>(b)</enum><header>Sale of Stock in IRA Relating to S Corporation Election Exempt From Prohibited Transaction Rules</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4975">Section 4975(d)(16)</external-xref> of the Internal Revenue Code of 1986 is amended by striking subparagraph (B) and by redesignating subparagraphs (C), (D), (E), and (F) as subparagraphs (B), (C), (D) and (E), respectively.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8D94B03606ED43378B953C2EEB0DF746"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on January 1, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id53F03C7AEC304516A857FCE8F4CB2565" section-type="subsequent-section"><enum>110.</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="ID43842BA12B4F439F92EA90693C4AE653"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(p)</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="id29666B75B34A4306AC8A634545E270E4" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="ID2ECD34A4D3D447799F101E1244A359F3"><enum>(D)</enum><header display-inline="yes-display-inline">Prohibition of loans through credit cards and other similar arrangements</header> <clause commented="no" display-inline="no-display-inline" id="id6CA0BAB261A842DA8D0341804856FCE7"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), subparagraph (A) shall not apply to any loan which is made through the use of any credit card or any other similar arrangement.</text> </clause><clause commented="no" display-inline="no-display-inline" id="id07BFF296F1DF4A778158C2EC7DB77B9B"><enum>(ii)</enum><header>Exception for existing credit card systems</header><text display-inline="yes-display-inline">Clause (i) shall not apply to any loan to the extent such loan is provided through an electronic card system which, as of September 21, 2016, was available for use to provide loans under qualified employer plans.</text> </clause><clause commented="no" display-inline="no-display-inline" id="id4AFAD2D488C14D11B385883AE7EE2E6E"><enum>(iii)</enum><header>Disallowed transactions</header><text display-inline="yes-display-inline">If any card through which a loan is provided under the exception of clause (ii) is used for any transaction—</text> <subclause commented="no" display-inline="no-display-inline" id="idDE8F09633A034B33B087289DFDD1AC67"><enum>(I)</enum><text display-inline="yes-display-inline">in an amount equal to or less than $1,000, or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id19E951E691464BFD927CA7C7A12B29F0"><enum>(II)</enum><text display-inline="yes-display-inline">with or on the premises of any establishment described in clause (i), (ii), or (iii) of section 408(a)(12)(A) of the Social Security Act,</text> </subclause><continuation-text continuation-text-level="clause">the amount of such transaction shall be treated as having been received by the individual as a distribution in accordance with subparagraph (A) of paragraph (1).</continuation-text></clause><clause id="id961A8F4AE3BB44509BB68E2D7B55D228"><enum>(iv)</enum><header>Cost-of-living adjustment</header><text>In the case of any loan made during a plan year beginning after December 31, 2019, the $1,000 amount under clause (iii)(I) shall be increased by an amount equal to—</text> <subclause id="idA6B203453A034377A625ADFF228725FC"><enum>(I)</enum><text>such dollar amount, multiplied by</text> </subclause><subclause id="idF019DCF5A9E44E9C9A751540A97E52E9"><enum>(II)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the plan year begins, determined by substituting <quote>calendar year 2018</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the next lowest multiple of $50.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID579B21FE3C29471A9A3A05E6705CF2CC"><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 plan years beginning after December 31, 2018.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idFACEF3EDA8694AA7B1F58D1CC1F3C4C8"><enum>(c)</enum><header>Study</header><text>The Comptroller General of the United States shall, not later than the date which is 1 year after the date of the enactment of this Act—</text> <paragraph commented="no" display-inline="no-display-inline" id="idF515E7371F3A47278C698FE3CD9A05B7"><enum>(1)</enum><text>study the impact of loans from qualified employer plans (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(p)(4)(A)</external-xref> of the Internal Revenue Code of 1986) provided through credit cards and similar arrangements on the use of retirement savings for purposes other than funding retirement; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7A325BCC5CAC4FFB8E27BD36ECD7A1DA"><enum>(2)</enum><text>report the results of such study to the Committee on Finance of the Senate and the Committee on the Ways and Means of the House of Representatives.</text> </paragraph><continuation-text commented="no" continuation-text-level="subsection">If the study under paragraph (1) determines that such loans, after implementation of the restrictions imposed by the amendment made by subsection (a), result in greater usage of retirement savings for purposes other than funding retirement than loans made by other means, the report under paragraph (2) shall include recommendations to reduce such result.</continuation-text></subsection></section><section id="H92050BF36FB849EC9CA7445A46300C55"><enum>111.</enum><header>Portability of lifetime income options</header> <subsection id="H67C10081AC6D428995EEDB7F8829A6B6"><enum>(a)</enum><header>In general</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401</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="HFC92E15B05434D67BADA8BE614E2830E" style="OLC"> <paragraph id="H1CB4A27F6FDD4E6BA085519C38FBD0B9"><enum>(38)</enum><header>Portability of lifetime income</header> <subparagraph id="HD1E7B6F7FAC84DB1A63CD1452CC825B3"><enum>(A)</enum><header>In general</header><text>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="H26A01EE513104F25A931DD9A704E0522"><enum>(i)</enum><text>qualified distributions of a lifetime income investment, or</text> </clause><clause id="HF21B6B64BDFE49A0B01D459032166808"><enum>(ii)</enum><text>distributions of a lifetime income investment in the form of a qualified plan distribution annuity contract,</text> </clause><continuation-text continuation-text-level="subparagraph">on or after the date that is 90 days prior to the date on which such lifetime income investment is no longer authorized to be held as an investment option under the plan.</continuation-text></subparagraph><subparagraph id="H451AB3D696454AF3AA0F87CD8C8D9FA1"><enum>(B)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <clause id="H5D39CB5E0E914068ACBC93EE528EFD28"><enum>(i)</enum><text>the term <term>qualified distribution</term> means a direct trustee-to-trustee transfer described in paragraph (31)(A) to an eligible retirement plan (as defined in section 402(c)(8)(B)),</text> </clause><clause id="H43F64D340AC04092BC22212FFEA4B235"><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="H06ED08CD8E77403483B91603C0DEB7C2"><enum>(I)</enum><text>which are not uniformly available with respect to other investment options under the plan, and</text> </subclause><subclause id="H9B0831948C214793875C1D9AB470D4AB"><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="H59BD07588B6149D2AC951891D6356B84"><enum>(iii)</enum><text>the term <term>lifetime income feature</term> means—</text> <subclause id="H3AEB72C45A0E4A8096F1418F602C9D29"><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="H4247B2F0BC4D4342B199CFBB4014F1CB"><enum>(II)</enum><text>an annuity payable on behalf of the employee under which payments are made in substantially equal periodic payments (not less frequently than annually) over the life of the employee or the joint lives of the employee and the employee’s designated beneficiary, and</text> </subclause></clause><clause id="H93D2DCBCB2434EC692FD5F86A2986575"><enum>(iv)</enum><text display-inline="yes-display-inline">the term <term>qualified plan distribution annuity contract</term> means an annuity contract purchased for a participant and distributed to the participant by a plan 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="H1E85AC1AB4C141C2B76218BA038B40C1"><enum>(b)</enum><header>Cash or deferred arrangement</header> <paragraph id="id831482FD71194EE3954E4AD745A1BAFA"><enum>(1)</enum><header>In general</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(2)(B)</external-xref> of the Internal Revenue Code of 1986, as amended by section 110(a), 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="H7F9B7777E7C5496894C27BCF27AEED6E" style="OLC"> <subclause id="H43E48272831E4C1983F13153B50CD443"><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="idAAFF6AA8FCBB4DC3BAECD329366D06B4"><enum>(2)</enum><header>Distribution requirement</header><text>Subparagraph (B) of section 401(k)(2) 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="id9E3CCD624F464B2EBB9EE8D6DBC24A7B" style="OLC"> <clause id="id7A5FD8FC229F473E991352097FBC9803"><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="H00D9C82A340143D48DB3B8D391B6F9E3"><enum>(c)</enum><header>Section 403(<enum-in-header>b</enum-in-header>) plans</header> <paragraph id="HAAF313A48A4B4A118AC4E17E03C6D4FC"><enum>(1)</enum><header>Annuity contracts</header><text>Paragraph (11) of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)</external-xref> of the Internal Revenue Code of 1986 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="H2D54DD9CC1D74879B4FBF047F3B7D7EE" style="OLC"> <subparagraph id="H4298CA18326D41ADA0992574F559F445"><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="id37F4D0803F7E48828B72B576E2A8CE99"><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="id5745E55779764227814E5798F96E4C80"><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="H1F8AC1C50C7A4A46935A5A6D9188B1BB"><enum>(2)</enum><header>Custodial accounts</header><text>Subparagraph (A) of section 403(b)(7) of such Code is amended by striking <quote>if—</quote> and all that follows and inserting “if the amounts are to be invested in regulated investment company stock to be held in that custodial account, and under the custodial account—</text> <quoted-block display-inline="no-display-inline" id="H7A66BC46EF654E44A4164F19118FE183" style="OLC"> <clause id="idCF728D4DFE784739B48E65D77A701A3A"><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="H6DA762052B14478DAA73EE0A23631928"><enum>(I)</enum><text>the employee dies,</text> </subclause><subclause id="HFCC1D3FEF072459491CA8CCEAA47890B"><enum>(II)</enum><text>the employee attains age 59½,</text> </subclause><subclause id="H1C86E4C689074A97B459FF2D541CCA4C"><enum>(III)</enum><text>the employee has a severance from employment,</text> </subclause><subclause id="HB189952276C34610BECDE465C4B5B579"><enum>(IV)</enum><text>the employee becomes disabled (within the meaning of section 72(m)(7)),</text> </subclause><subclause id="H86BE9F2D6AAA46818023EF83D28ADFA0"><enum>(V)</enum><text>in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)), the employee encounters financial hardship, or</text> </subclause><subclause id="HE88D37033F924C42B01E0D728A1E4894"><enum>(VI)</enum><text display-inline="yes-display-inline">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="id0194D79CF8EA4D19BE7E1966A99B4BD6"><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="H8D38287E4FE148059448A6ECA958EED6"><enum>(d)</enum><header>Eligible deferred compensation plans</header> <paragraph id="idBC467D8891CE4F9D9E343D23FAE9F14E"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/457">section 457(d)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>or</quote> at the end of clause (ii), by inserting <quote>or</quote> at the end of clause (iii), and by adding after clause (iii) the following:</text> <quoted-block display-inline="no-display-inline" id="H6E645536FA78442A854FEB34EC0849B5" style="OLC"> <clause id="H25002E6A0C8B47508E462BB7955558A2"><enum>(iv)</enum><text display-inline="yes-display-inline">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="id46F2C17ED1DA4DED86CD66943B7676EA"><enum>(2)</enum><header>Distribution requirement</header><text>Paragraph (1) of section 457(d) 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="id95D27D1ACABD4F339B4EC394C5FCDDEB" style="OLC"> <subparagraph id="id22D8177C20C84A26A423FD0CE12260F6"><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="HA5E61E09B2064389B8D6D1E84C4E1D77"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to plan years beginning after December 31, 2018.</text> </subsection></section><section id="idA4FC64BE9F544C89AA3E6EC505BD8680"><enum>112.</enum><header>Treatment of custodial accounts on termination of section <enum-in-header>403(b)</enum-in-header> plans</header> <subsection id="id5C969C0F70814EF6A96283EF5D87B7C6"><enum>(a)</enum><header>In general</header><text><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="idD2A76BE780B94C918BEA3D8FD3247F21" style="OLC"> <subparagraph id="id04A4F5D02E194917BDED23D6669681DF"><enum>(D)</enum><header>Treatment of custodial account upon plan termination</header> <clause id="id44AB6D5A4C624519BAA3E7DE16E49F77"><enum>(i)</enum><header>In general</header><text>If—</text> <subclause id="idD51746A9EECA4F3E80A306727B5B6937"><enum>(I)</enum><text>an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A), and</text> </subclause><subclause id="id20BC73E73BD9456CAF072B923B8A7197"><enum>(II)</enum><text>the person holding the assets of the account has demonstrated to the satisfaction of the Secretary under section 408(a)(2) that the person is qualified to be a trustee of an individual retirement plan,</text> </subclause><continuation-text continuation-text-level="clause">then, as of the date of the termination, the custodial account shall be deemed to be an individual retirement plan for purposes of this title.</continuation-text></clause><clause id="id865BF9C38C934814A80387DDB0E8A0D2"><enum>(ii)</enum><header>Treatment as Roth IRA</header><text>Any custodial account treated as an individual retirement plan under clause (i) shall be treated as a Roth IRA only if the custodial account was a designated Roth account.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6EF62B433298490E90E56E64E72CB8DA"><enum>(b)</enum><header>Effective date</header><text>The 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="idF81B11E668A5425F9768AC7893BB4791"><enum>113.</enum><header>Clarification of retirement income account rules relating to church-controlled organizations</header> <subsection commented="no" display-inline="no-display-inline" id="id3642027DB0594F709F3FE2D66A9329C9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)(9)</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="idD829567810F043ADA60BEE6616900EE9"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to years beginning before, on, or after the date of the enactment of this Act.</text> </subsection></section>

115 S2526 IS: Retirement Enhancement and Savings Act of 2018 U.S. Senate 2018-03-08 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.

Short title, etc

(a)

Short title

This Act may be cited as the

Retirement Enhancement and Savings Act of 2018

. (b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title, etc.

TITLE I—Expanding and preserving retirement savings

Sec. 101. Multiple employer plans.

Sec. 102. Pooled employer and multiple employer plan reporting.

Sec. 103. Removal of 10 percent cap from automatic enrollment safe harbor after 1st plan year.

Sec. 104. Rules relating to election of safe harbor 401(k) status.

Sec. 105. Increase in credit limitation for small employer pension plan startup costs.

Sec. 106. Small employer automatic enrollment credit.

Sec. 107. Certain taxable non-tuition fellowship and stipend payments treated as compensation for IRA purposes.

Sec. 108. Repeal of maximum age for traditional IRA contributions.

Sec. 109. Expansion of IRA ownership of S corporation bank stock.

Sec. 110. Qualified employer plans prohibited from making loans through credit cards and other similar arrangements.

Sec. 111. Portability of lifetime income options.

Sec. 112. Treatment of custodial accounts on termination of section 403(b) plans.

Sec. 113. Clarification of retirement income account rules relating to church-controlled organizations.

TITLE II—Administrative improvements

Sec. 201. Plan adopted by filing due date for year may be treated as in effect as of close of year.

Sec. 202. Combined annual report for group of plans.

Sec. 203. Disclosure regarding lifetime income.

Sec. 204. Fiduciary safe harbor for selection of lifetime income provider.

Sec. 205. Modification of nondiscrimination rules to protect older, longer service participants.

Sec. 206. Modification of PBGC premiums for CSEC plans.

TITLE III—Benefits relating to United States Tax Court

Sec. 301. Thrift Savings Plan contributions for judges in the Federal Employees Retirement System.

Sec. 302. Change in vesting period for survivor annuities and waiver of vesting period in the event of assassination.

Sec. 303. Coordination of retirement and survivor annuity with the Federal Employees Retirement System.

Sec. 304. Limit on teaching compensation of retired judges.

Sec. 305. General provisions relating to magistrate judges of the Tax Court.

Sec. 306. Life insurance for magistrate judges of the tax court age 65 or older.

Sec. 307. Retirement and annuity program.

Sec. 308. Provisions for recall.

TITLE IV—Other benefits

Sec. 401. Benefits provided to volunteer firefighters and emergency medical responders.

TITLE V—Revenue provisions

Sec. 501. Modifications of required distribution rules for pension plans.

Sec. 502. Increase in penalty for failure to file.

Sec. 503. Increased penalties for failure to file retirement plan returns.

Sec. 504. Increase information sharing to administer excise taxes.

Sec. 505. Pension variable rate premium payment acceleration.

<enum>I</enum><header>Expanding and preserving retirement savings</header> <section id="idc45084c26ad74390a92b6cdb5d28ae08"><enum>101.</enum><header>Multiple employer plans</header> <subsection id="idD45576625A7043FF9134B59E3F67A53C"><enum>(a)</enum><header>Qualification requirements</header> <paragraph id="id7ACDEFB3538D4FF79ED953ECDE083237"><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="id09DFB9AF9AE24B4DBC0E7A3931908FF5" style="OLC"> <subsection id="id0FC64559BF3248DB8B9DDC9A35296205"><enum>(e)</enum><header>Application of qualification requirements for certain multiple employer plans with pooled plan providers</header> <paragraph id="id8DC78F05A6694DEA986F316E838DE017"><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="id133673C1C1784496BBA17AE9B5CC34D2"><enum>(A)</enum><text>is sponsored by employers all of which have both a common interest other than having adopted the plan and control of the plan, or</text> </subparagraph><subparagraph id="id425CB2FDFD5B492B97C9EDF726BF387C"><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="id6CDF5125AB0C48DC8276FEFE4DA3AE54"><enum>(2)</enum><header>Limitations</header> <subparagraph id="id9DB7581584004AF39A035A89822DBBC0"><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 cases of employers failing to take the actions described in paragraph (1)—</text> <clause id="idCAFDBE35DDE44FAEAD21C8B854423FAB"><enum>(i)</enum><text>the assets of the plan attributable to employees of the employer will be transferred to a plan maintained only by the 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 such employees to retain the assets in the plan, and</text> </clause><clause id="id7C0AE907FE62476AA43FEDB8805FA650"><enum>(ii)</enum><text>the employer described in clause (i) (and not the plan with respect to which the failure occurred or any other participating 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 the employer.</text> </clause></subparagraph><subparagraph id="idA4B0EF51C3E24D118D0D5F2BF75D0421"><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, in the Secretary's own discretion, 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="idA376F784BCA14273A9B75AC9B6EEE296"><enum>(3)</enum><header>Pooled plan provider</header><text>For purposes of this subsection—</text> <subparagraph commented="no" id="idDCE2CB1C0D70461987743741A0FD50EF"><enum>(A)</enum><header>In general</header><text>The term <term>pooled plan provider</term> means, with respect to any plan, a person who—</text> <clause commented="no" id="id53E91254826441EDAD747B9301C4BC6F"><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 employees of each participating employer) which are reasonably necessary to ensure that—</text> <subclause id="idAB4B56897E474399A0D4325524A19698"><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="idEEBD5DF1EBB7428DB14DFB2624F80F74"><enum>(II)</enum><text>each participating employer 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 is necessary to administer the plan or to allow the plan to meet such requirements,</text> </subclause></clause><clause commented="no" id="idE3D49766D8774D22AC234AAF6B076B8E"><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="idFF9B516FAD5546BF847F1B7DE1BA7B27"><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="id915329E643B5496E9F14083D77B86B8F"><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="id55BA16D1AF31407AAC366CCC24D8E2D0"><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></paragraph><paragraph id="id79AAAC7944224B05AD000848361E9A58"><enum>(4)</enum><header>Guidance</header> <subparagraph id="id3B63C8AB0F874BE99CAEF8B26DAB7FD8"><enum>(A)</enum><header>In general</header><text>The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this subsection, including guidance—</text> <clause id="id80507FEF03E047EB97EE1E62B488D3B1"><enum>(i)</enum><text>to identify the administrative duties and other actions required to be performed by a pooled plan provider under this subsection,</text> </clause><clause id="id4A775EB7836448029FA73B1B1D4DCA8C"><enum>(ii)</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 participating employer of the plan and the assets and liabilities of the plan with respect to employees of that employer, and</text> </clause><clause id="idBEDDD467831943BB9600E4F0EBE2D85F"><enum>(iii)</enum><text>identifying appropriate cases to which the rules of paragraph (2)(A) will apply to employers failing to take the actions described in paragraph (1).</text> </clause><continuation-text continuation-text-level="subparagraph">The Secretary shall take into account under clause (iii) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements applicable to the plan under section 401(a) or 408, whichever is applicable, has continued over a period of time that clearly demonstrates a lack of commitment to compliance.</continuation-text></subparagraph><subparagraph id="idDAEEC44603504E29BDB23BCA0ADE3CE3"><enum>(B)</enum><header>Prospective application</header><text>Any guidance issued by the Secretary under this paragraph shall not apply to any action or failure occurring before the issuance of such guidance.</text> </subparagraph></paragraph><paragraph id="id41598937D6A84BEC98CAA561B8ED85B5"><enum>(5)</enum><header>Model plan</header><text>The Secretary shall, in consultation with the Secretary of Labor when appropriate, 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="id38E8303139B945F9829E12BB5D6AB155"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (3) of section 413(b) 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="id98DAED415B2B48C2B9459A3297F45EDA"><enum>(3)</enum><header>Technical amendment</header><text>Subsection (c) of section 408 of such Code is amended by inserting after paragraph (2) the following new paragraph:</text> <quoted-block act-name="" id="id831019B39C744DDB9A79873527666D0B" style="OLC"> <paragraph id="idC866AAA9A6944C80A9D9A9ADDDD9499B"><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="id519441F32F3B4721A51BFDEE98845AF5"><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="id7C374883CA05471CA7402A4FB48E4909" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="id099E623BA12E484B8850BF37BBA0C26B"><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="id7CA87AC84A4344E7A13FEFE4DE3BDCF9"><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="idA0403BE94523421F9F874D73E08C7620"><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="idD0A77B136EF1432E982A34E902F24A29"><enum>(c)</enum><header>Pooled employer plan and provider defined</header> <paragraph id="id4938F84C810C46889721BE2AF51083F6"><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="id533a21ff67b441ca819866445989fd79" style="OLC"> <paragraph id="id57997e715cd74b508cc9c7939e6e5da8"><enum>(43)</enum><header>Pooled employer plan</header> <subparagraph id="idF5DD7E6C67494130A6AE68B4ADFF7DA5"><enum>(A)</enum><header>In general</header><text>The term <term>pooled employer plan</term> means a plan—</text> <clause id="id2CE27604C1544C6BBA57DDDBD63E1C07"><enum>(i)</enum><text>which is an individual account plan established or maintained for the purpose of providing benefits to the employees of two or more employers;</text> </clause><clause id="id87FD17AB318C48D6BE46F927CBDA3067"><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="id7602DBF32C124CD1BA1381D3C716A3BF"><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 with respect to which all of the participating employers have both a common interest other than having adopted the plan and control of the plan.</continuation-text></subparagraph><subparagraph id="id00B64B25D6CC4F52A092CDC7396CE037"><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="idA98B3C5BF3FB48F98BB8E8C5FFF845F2"><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="idAB06063A453047B6A95BBF996D34E785"><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 a participating employer) 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="id0A0EE62945E448B581EB55BAC5F63341"><enum>(iii)</enum><text>provide that each participating employer retains fiduciary responsibility for—</text> <subclause id="id92CA6F0647D8459C80D2569858F840D2"><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="idD1F533AF9A8F41BB9FDEB6A7E1780EC4"><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 that portion of the plan’s assets attributable to the employees of that participating employer;</text> </subclause></clause><clause id="id563797F3F7254F37A939BCACFCD9CE89"><enum>(iv)</enum><text>provide that a participating employer, or a participant or beneficiary, is 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="id83192CED87D0420A970F30B53209C4B7"><enum>(v)</enum><text>require—</text> <subclause id="id0F49E99B2FE04B0CA44D16B6F270F3BE"><enum>(I)</enum><text>the pooled plan provider to provide to participating employers 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 participating employers; and</text> </subclause><subclause id="id75B820AC27B842BA9D74D2AD88DC91CB"><enum>(II)</enum><text>each participating employer 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 is necessary to administer the plan or to allow the plan to meet such requirements; and</text> </subclause></clause><clause id="id7B21B26FA201470282559DC65AB994B2"><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 participating employers.</text> </clause></subparagraph><subparagraph id="id010316B15866464EADD6DA1CE2325CA6"><enum>(C)</enum><header>Exceptions</header><text>The term <term>pooled employer plan</term> does not include—</text> <clause id="id33BD2CF78BD244359167D7CA27A23BE6"><enum>(i)</enum><text>a multiemployer plan; or</text> </clause><clause id="idB0EC377949D546B2ABB991DD85FC94FF"><enum>(ii)</enum><text>a plan established before the date of the enactment of the <short-title>Retirement Enhancement and 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></paragraph><paragraph id="idACD3BD1E0ED443B8BC546664B8907A9D"><enum>(44)</enum><header>Pooled plan provider</header> <subparagraph id="idA693FB3531AE45D8AD4FB43590E03502"><enum>(A)</enum><header>In general</header><text>The term <term>pooled plan provider</term> means a person who—</text> <clause id="id7DEE21E302A4490886F30E7D8C938F53"><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 employees of each participating employer) which are reasonably necessary to ensure that—</text> <subclause id="id431B387A8F384946A5AD71941B8F17BC"><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="idA5B48A69F73A4A40A35198B100ACD77F"><enum>(II)</enum><text>each participating employer 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="idE7CBB87B7FD34B6097CA4CD50A192D6B"><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="id79604AC17BC34424BF7DCF5A64D45FE1"><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="id6E233A2161E34B5485287043D49D86B9"><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="id203A93067A884A56B08E5323769B35DD"><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="idE43324ED3B3A46D2B675D109088FCB57"><enum>(C)</enum><header>Guidance</header> <clause id="id342A0BC6C8BB419F9E9D45CECA3572E1"><enum>(i)</enum><header>In general</header><text>The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this paragraph and paragraph (43), including guidance—</text> <subclause id="id7E3B393DBB7C4FFD95F4CCE926F4932D"><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> </subclause><subclause id="id137FAF8EA2724EBE85C34A11B75974F8"><enum>(II)</enum><text>which requires in appropriate cases that if a participating employer fails to take the actions required under subparagraph (A)(i)(II)—</text> <item id="id94B463BBCE754F6BAB11B79539570A8B"><enum>(aa)</enum><text>the assets of the plan attributable to employees of the participating employer are transferred to a plan maintained only by the participating 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> </item><item id="id177635A8B17F4A81BBAF9105E15D3C0B"><enum>(bb)</enum><text>the participating employer described in item (aa) (and not the plan with respect to which the failure occurred or any other participating 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 the participating employer.</text> </item></subclause><continuation-text continuation-text-level="clause">The Secretary shall take into account under subclause (II) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements described in subparagraph (A)(i)(II) has continued over a period of time that clearly demonstrates a lack of commitment to compliance. The Secretary may waive the requirements of subclause (II)(aa) in appropriate circumstances if the Secretary determines it is in the best interests of the employees of the participating employer described in such clause to retain the assets in the plan with respect to which the employer's failure occurred.</continuation-text></clause><clause commented="no" display-inline="no-display-inline" id="id9AF5E14023E14AFC88B393877379DCD7"><enum>(ii)</enum><header display-inline="yes-display-inline">Prospective application</header><text display-inline="yes-display-inline">Any guidance issued by the Secretary under this subparagraph shall not apply to any action or failure occurring before the issuance of such guidance.</text> </clause></subparagraph><subparagraph id="id80E46B83B4564440BAFC99CFE7F212DC"><enum>(D)</enum><header>Aggregation rules</header><text>For purposes of this paragraph—</text> <clause id="id6AF02DFA3B3C462EBA41DB4CBDFC8577"><enum>(i)</enum><header>In general</header><text>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 are members of the same controlled group and who perform services for the plan shall be treated as one person.</text> </clause><clause id="idFAE0949020004C37A23AA7D13FA8639D"><enum>(ii)</enum><header>Members of common group</header><text>Persons shall be treated as members of the same controlled group if such persons are treated as a single employer under subsection (c) or (d) of section 210.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="idD9024989A04B432A9E873FE26D150C2B"><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="id18855953153046EC9B8776DFEA2CDE05"><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="id62C561EB58E5484DBBD574213DEE867E"><enum>(A)</enum><text>in paragraph (16)(B)—</text> <clause commented="no" id="idFAD87A5C991B447BB9C1FCBD5CF6703F"><enum>(i)</enum><text>by striking <quote>or</quote> at the end of clause (ii); and</text> </clause><clause commented="no" id="id1E34F910B28D406DB0D762CABF961D30"><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="id868FBC23B1134775838E37A836D5E31D"><enum>(B)</enum><text>by striking the second paragraph (41).</text> </subparagraph></paragraph></subsection><subsection id="id7E8BEA51ACEA4CD48B1F2EFA701D6ADA"><enum>(d)</enum><header>Effective date</header> <paragraph id="idAE1B053C9F58450B90AB50A36A8817F5"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to years beginning after December 31, 2021.</text> </paragraph><paragraph id="id54792270814D40799047AA20970C03C6"><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 amendment) 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="id28B5BC0A474B4A969FB5949BF2F6056D"><enum>102.</enum><header>Pooled employer and multiple employer plan reporting</header> <subsection id="id6a00e9d36b6942108438880f9d206c2d"><enum>(a)</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> <paragraph id="id3d3c6305f3764393ab0c7e242f233ace"><enum>(1)</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> </paragraph><paragraph id="id9aba00d4ceea4fabb406266a089c9808"><enum>(2)</enum><text>by amending subsection (g) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idc335fbe8d8b5427bb6b08aebc58c7c9f" style="OLC"> <subsection id="id95eb050601324a51917cb5e54711e7db"><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="id9C2B9F7F54794F1A9BC976EB5D7E9FD0"><enum>(1)</enum><text>with respect to any plan to which section 210(a) applies (including a pooled employer plan), a list of participating employers and a good faith estimate of the percentage of total contributions made by such participating employers during the plan year; and</text> </paragraph><paragraph id="idBD13C8BFC1854A65B30F8ED5AFAE3BAA"><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> </paragraph></subsection><subsection id="id2ddf74115b9248ce9fcd9ea680e0df20"><enum>(b)</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="id50A7BE44FAAC4ECD883FD749337DDC9B" style="OLC"> <paragraph id="idF1EEE7E2FBD34820B744975A1B9E5B38"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id001E7D186A604C649FB56BB2C82F39D0"><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="id03E4613875154068B70514C78CD3206E" indent="up1"><enum>(i)</enum><text>covers fewer than 100 participants; or</text> </clause><clause id="id42ACE3D9B0374C28AC696A73D771EEB8" 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 participating employer has 100 or more participants covered by the plan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id20C6696BCABC42B4A5BA450F0735E68A"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to annual reports for plan years beginning after December 31, 2021.</text> </subsection></section><section id="H8DA23EF7DF2A4F8CA9A84C0B8E8FB15A"><enum>103.</enum><header>Removal of 10 percent cap from automatic enrollment safe harbor after 1st plan year</header> <subsection id="HE7E7BC3EC01140AD94427E8B791A1C2D"><enum>(a)</enum><header>In general</header><text>Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(13)(C)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>, does not exceed 10 percent, and is at least</quote> and inserting <quote>and is</quote>.</text> </subsection><subsection id="H18AE74D377A2430697CED1E35652BBE1"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H81645D866E5E4CB5A62D29F7211638A3"><enum>(1)</enum><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(13)(C)(iii)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>3 percent</quote> and inserting <quote>at least 3 percent, but not greater than 10 percent,</quote>.</text> </paragraph><paragraph id="HB6874322D6DD498C82EDDD6122723215"><enum>(2)</enum><text>Subclause (II) of section 401(k)(13)(C)(iii) of such Code is amended by striking <quote>4 percent</quote> and inserting <quote>at least 4 percent</quote>.</text> </paragraph><paragraph id="H97B8BA0D26EB42FE92FD9ED1A5D901E0"><enum>(3)</enum><text>Subclause (III) of section 401(k)(13)(C)(iii) of such Code is amended by striking <quote>5 percent</quote> and inserting <quote>at least 5 percent</quote>.</text> </paragraph><paragraph id="H2D573C6EA3614D49B2F41F4DA5E073D7"><enum>(4)</enum><text>Subclause (IV) of section 401(k)(13)(C)(iii) of such Code is amended by striking <quote>6 percent</quote> and inserting <quote>at least 6 percent</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1C9AB0A55C77423F9D84B2DB2D36A439"><enum>(c)</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="id9350CEEB13A34822A3C6ECC0957E6B76"><enum>104.</enum><header>Rules relating to election of safe harbor <enum-in-header>401(k)</enum-in-header> status</header> <subsection commented="no" id="id9C3CF37D80E346C7A449789F64E7744A"><enum>(a)</enum><header>Limitation of annual safe harbor notice to matching contribution plans</header> <paragraph commented="no" id="idFB17F2CFD0674A51A507282000D63FB4"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(12)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>if such arrangement</quote> and all that follows and inserting “if such arrangement—</text> <quoted-block display-inline="no-display-inline" id="idA3D8C4309E1B43E4996037D3792F1D5F" style="OLC"> <clause commented="no" id="id3CC107ECA7CA4B2AA98C3B1BC9C47723"><enum>(i)</enum><text>meets the contribution requirements of subparagraph (B) and the notice requirements of subparagraph (D), or</text> </clause><clause commented="no" display-inline="no-display-inline" id="id8E14BD76EF42476E9B5A354EDCE88351"><enum>(ii)</enum><text>meets the contribution requirements of subparagraph (C).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="idD18939D921D24698910A2D5FA07F59CE"><enum>(2)</enum><header>Automatic contribution arrangements</header><text>Subparagraph (B) of section 401(k)(13) of such Code is amended by striking <quote>means</quote> and all that follows and inserting “means a cash or deferred arrangement—</text> <quoted-block display-inline="no-display-inline" id="idF830A9DC9FFC4C598462384655E9DCC4" style="OLC"> <subparagraph commented="no" id="id3C0F801BB2064F5B9E36DC0D8715704A"><enum>(A)</enum><text>which is described in subparagraph (D)(i)(I) and meets the applicable requirements of subparagraphs (C) through (E), or</text> </subparagraph><subparagraph commented="no" id="id0CD6C71B056B4CE8A9EB91253A5FB46A"><enum>(B)</enum><text>which is described in subparagraph (D)(i)(II) and meets the applicable requirements of subparagraphs (C) and (D).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="id2C11760BD3DE4FF991D73808753E6DA0"><enum>(b)</enum><header>Nonelective contributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(12)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id26CE9094CD4A4363A32E72D911828BBA" style="OLC"> <subparagraph commented="no" id="id7BB5CBEE14254379A7D1EC2E013EAFEB"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="id1A4F417E064B468F9E289E08756FAB11"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (C) shall apply to the arrangement for the plan year, but only if the amendment is adopted—</text> <subclause commented="no" id="idCA67569D552C416A860D1F1A9A93D32D"><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="id84F14A2176F6492B9F8079523483FD84"><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="id0CAFA6C385AC4B53B27F1ACDFA8E1444"><enum>(ii)</enum><header>Exception where plan provided for matching contributions</header><text>Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (B) or paragraph (13)(D)(i)(I) applied to the plan year.</text> </clause><clause commented="no" id="id15823C3AA4AD477CBCCE9D88ED376AB4"><enum>(iii)</enum><header>4-percent contribution requirement</header><text>Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (C) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idF4F798FF12D2492C995644756771E369"><enum>(c)</enum><header>Automatic contribution arrangements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(13)</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="id9548E7E6F5DE44E5A1F35F36B6DC9F5F" style="OLC"> <subparagraph commented="no" id="id78F47EF016304790BAFDE61FD9216BAE"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="id71F5D24C1EB3433E89860DC07257CDA0"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (D)(i)(II) shall apply to the arrangement for the plan year, but only if the amendment is adopted—</text> <subclause commented="no" id="id54B8975886D547429D68B7D6C5C015BF"><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="id4F8004DBB88849C6988776D4141E5057"><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="id7586538B0788406EAF1909E76D02D7BC"><enum>(ii)</enum><header>Exception where plan provided for matching contributions</header><text>Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (D)(i)(I) or paragraph (12)(B) applied to the plan year.</text> </clause><clause commented="no" id="idC79B681755A44CA2B57C849D75774A3C"><enum>(iii)</enum><header>4-percent contribution requirement</header><text>Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (D)(i)(II) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6044838550CA4239BD836C6BF9B7C112"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2018.</text> </subsection></section><section id="id951D1962310C4DD4AAAF79E97AAD5574" section-type="subsequent-section"><enum>105.</enum><header>Increase in credit limitation for small employer pension plan startup costs</header> <subsection id="H296760C4034D4BBB92C7F56A4202665A"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/45E">section 45E(b)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block id="H730402638C8C45409B483695406FB020" style="OLC"> <paragraph id="HBE31F2B9AAB64EA0B0888224AEDD186B"><enum>(1)</enum><text>for the first credit year and each of the 2 taxable years immediately following the first credit year, the greater of—</text> <subparagraph id="H400890257B684BB681B1CA237359AF80"><enum>(A)</enum><text>$500, or</text> </subparagraph><subparagraph id="H929F5FAE0BCF4CED8929E2BBE406689C"><enum>(B)</enum><text>the lesser of—</text> <clause id="H22F4C6A0B63D4A5FAF16AA638ADCD0D8"><enum>(i)</enum><text>$250 for each employee of the eligible employer who is not a highly compensated employee (as defined in section 414(q)) and who is eligible to participate in the eligible employer plan maintained by the eligible employer, or</text> </clause><clause id="H105202B176104A658D381C41399B3AFD"><enum>(ii)</enum><text>$5,000, and</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H59B39BF39A304511952F970331663148"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idDC8D9D5B12124E3EA61623C0D90F72B7"><enum>106.</enum><header>Small employer automatic enrollment credit</header> <subsection commented="no" id="HCDB3052432584B0D8F4C7F802C75E631"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A 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 section:</text> <quoted-block display-inline="no-display-inline" id="HC132ADEA12D2443BA522956DBA1E3AD5" style="OLC"> <section commented="no" id="H111DE6915B0941C48A1F4A2997A5405D"><enum>45S.</enum><header>Auto-enrollment option for retirement savings options provided by small employers</header> <subsection commented="no" id="HD7AA495025314F9EB34AADD71E6768B8"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 38, in the case of an eligible employer, the retirement auto-enrollment credit determined under this section for any taxable year is an amount equal to—</text> <paragraph commented="no" id="idCCC815A64C6F41F6B6583EB1542174D2"><enum>(1)</enum><text display-inline="yes-display-inline">$500 for any taxable year occurring during the credit period, and</text> </paragraph><paragraph commented="no" id="id034A04D36EF74EF697CB7FBC38D46021"><enum>(2)</enum><text>zero for any other taxable year.</text> </paragraph></subsection><subsection commented="no" id="HF8E21D1948B54E24A16144C55CF7682C"><enum>(b)</enum><header>Credit period</header><text>For purposes of subsection (a)—</text> <paragraph commented="no" id="id3125402D65DC40EFB3F05C2AED3731C2"><enum>(1)</enum><header>In general</header><text>The credit period with respect to any eligible employer is the 3-taxable-year period beginning with the first taxable year for which the employer includes an eligible automatic contribution arrangement (as defined in section 414(w)(3)) in a qualified employer plan (as defined in section 4972(d)) sponsored by the employer.</text> </paragraph><paragraph commented="no" id="id731A5DD4B7054305A9618FCC6E67694B"><enum>(2)</enum><header>Maintenance of arrangement</header><text>No taxable year with respect to an employer shall be treated as occurring within the credit period unless the arrangement described in paragraph (1) is included in the plan for such year.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEC6708C1248743628063D916DB1DE6D3"><enum>(c)</enum><header>Eligible employer</header><text>For purposes of this section, the term <term>eligible employer</term> has the meaning given such term in section 408(p)(2)(C)(i).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H05B740C0FE564DC9AA1D5128414594F1"><enum>(b)</enum><header>Credit To be part of general business credit</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/38">section 38</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>plus</quote> at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H6161790A13DC4C4FB14776A33DD6AC27" style="OLC"> <paragraph commented="no" id="H28FF7B8792A94455A6B648D06029EF94"><enum>(37)</enum><text display-inline="yes-display-inline">in the case of an eligible employer (as defined in section 45S(c)), the retirement auto-enrollment credit determined under section 45S(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H22A43D5535724B4CAD8BE7ED9A482574"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A 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 inserting after the item relating to section 45R the following new item:</text> <quoted-block id="id5532f81a-cbc8-42e8-93cd-b013271719f5" style="OLC"><toc><toc-entry idref="H111DE6915B0941C48A1F4A2997A5405D" level="section">Sec. 45S. Auto-enrollment option for retirement savings options provided by small employers.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HE9E3BC4D100D475EAE709186AFDE72D5"><enum>(d)</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 commented="no" display-inline="no-display-inline" id="idCB186C729E8A4AC48E95343A4B66538D"><enum>107.</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="id5F83BC5C78AD48CD95C09B2DFD25E935"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(f)</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 paid to an individual to aid the individual in the pursuit of graduate or postdoctoral study.</quote>.</text> </subsection><subsection id="idBD48B2D5828044D99A060E39F2A5F20E"><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="idCB6BB790C414444C877C9F75FDD8D84C"><enum>108.</enum><header>Repeal of maximum age for traditional IRA contributions</header> <subsection commented="no" display-inline="no-display-inline" id="idAE563BC301A746DB9BF6E0FF25C26604"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(d)</external-xref> of the Internal Revenue Code of 1986 is repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idCC2EC77A036046339153C4489F4A7317"><enum>(b)</enum><header>Conforming amendment</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/408A">section 408A</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="id5CDE50A6E092413398AC17B2E519FEC0"><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 id="H38ED7858DAC745DE85B3733CE60C7D0A"><enum>109.</enum><header>Expansion of IRA ownership of S corporation bank stock</header> <subsection id="H7ADF64DD14E7415F9A68F8530F2CB8C3"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1361">Section 1361(c)(2)(A)(vi)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>, but only to the extent of the stock held by such trust in such bank or company as of the date of the enactment of this clause</quote>.</text> </subsection><subsection id="H18A417A93FFA495D8AC03A639043C844"><enum>(b)</enum><header>Sale of Stock in IRA Relating to S Corporation Election Exempt From Prohibited Transaction Rules</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4975">Section 4975(d)(16)</external-xref> of the Internal Revenue Code of 1986 is amended by striking subparagraph (B) and by redesignating subparagraphs (C), (D), (E), and (F) as subparagraphs (B), (C), (D) and (E), respectively.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8D94B03606ED43378B953C2EEB0DF746"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on January 1, 2018.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id53F03C7AEC304516A857FCE8F4CB2565" section-type="subsequent-section"><enum>110.</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="ID43842BA12B4F439F92EA90693C4AE653"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(p)</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="id29666B75B34A4306AC8A634545E270E4" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="ID2ECD34A4D3D447799F101E1244A359F3"><enum>(D)</enum><header display-inline="yes-display-inline">Prohibition of loans through credit cards and other similar arrangements</header> <clause commented="no" display-inline="no-display-inline" id="id6CA0BAB261A842DA8D0341804856FCE7"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), subparagraph (A) shall not apply to any loan which is made through the use of any credit card or any other similar arrangement.</text> </clause><clause commented="no" display-inline="no-display-inline" id="id07BFF296F1DF4A778158C2EC7DB77B9B"><enum>(ii)</enum><header>Exception for existing credit card systems</header><text display-inline="yes-display-inline">Clause (i) shall not apply to any loan to the extent such loan is provided through an electronic card system which, as of September 21, 2016, was available for use to provide loans under qualified employer plans.</text> </clause><clause commented="no" display-inline="no-display-inline" id="id4AFAD2D488C14D11B385883AE7EE2E6E"><enum>(iii)</enum><header>Disallowed transactions</header><text display-inline="yes-display-inline">If any card through which a loan is provided under the exception of clause (ii) is used for any transaction—</text> <subclause commented="no" display-inline="no-display-inline" id="idDE8F09633A034B33B087289DFDD1AC67"><enum>(I)</enum><text display-inline="yes-display-inline">in an amount equal to or less than $1,000, or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id19E951E691464BFD927CA7C7A12B29F0"><enum>(II)</enum><text display-inline="yes-display-inline">with or on the premises of any establishment described in clause (i), (ii), or (iii) of section 408(a)(12)(A) of the Social Security Act,</text> </subclause><continuation-text continuation-text-level="clause">the amount of such transaction shall be treated as having been received by the individual as a distribution in accordance with subparagraph (A) of paragraph (1).</continuation-text></clause><clause id="id961A8F4AE3BB44509BB68E2D7B55D228"><enum>(iv)</enum><header>Cost-of-living adjustment</header><text>In the case of any loan made during a plan year beginning after December 31, 2019, the $1,000 amount under clause (iii)(I) shall be increased by an amount equal to—</text> <subclause id="idA6B203453A034377A625ADFF228725FC"><enum>(I)</enum><text>such dollar amount, multiplied by</text> </subclause><subclause id="idF019DCF5A9E44E9C9A751540A97E52E9"><enum>(II)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the plan year begins, determined by substituting <quote>calendar year 2018</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the next lowest multiple of $50.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID579B21FE3C29471A9A3A05E6705CF2CC"><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 plan years beginning after December 31, 2018.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idFACEF3EDA8694AA7B1F58D1CC1F3C4C8"><enum>(c)</enum><header>Study</header><text>The Comptroller General of the United States shall, not later than the date which is 1 year after the date of the enactment of this Act—</text> <paragraph commented="no" display-inline="no-display-inline" id="idF515E7371F3A47278C698FE3CD9A05B7"><enum>(1)</enum><text>study the impact of loans from qualified employer plans (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(p)(4)(A)</external-xref> of the Internal Revenue Code of 1986) provided through credit cards and similar arrangements on the use of retirement savings for purposes other than funding retirement; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7A325BCC5CAC4FFB8E27BD36ECD7A1DA"><enum>(2)</enum><text>report the results of such study to the Committee on Finance of the Senate and the Committee on the Ways and Means of the House of Representatives.</text> </paragraph><continuation-text commented="no" continuation-text-level="subsection">If the study under paragraph (1) determines that such loans, after implementation of the restrictions imposed by the amendment made by subsection (a), result in greater usage of retirement savings for purposes other than funding retirement than loans made by other means, the report under paragraph (2) shall include recommendations to reduce such result.</continuation-text></subsection></section><section id="H92050BF36FB849EC9CA7445A46300C55"><enum>111.</enum><header>Portability of lifetime income options</header> <subsection id="H67C10081AC6D428995EEDB7F8829A6B6"><enum>(a)</enum><header>In general</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401</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="HFC92E15B05434D67BADA8BE614E2830E" style="OLC"> <paragraph id="H1CB4A27F6FDD4E6BA085519C38FBD0B9"><enum>(38)</enum><header>Portability of lifetime income</header> <subparagraph id="HD1E7B6F7FAC84DB1A63CD1452CC825B3"><enum>(A)</enum><header>In general</header><text>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="H26A01EE513104F25A931DD9A704E0522"><enum>(i)</enum><text>qualified distributions of a lifetime income investment, or</text> </clause><clause id="HF21B6B64BDFE49A0B01D459032166808"><enum>(ii)</enum><text>distributions of a lifetime income investment in the form of a qualified plan distribution annuity contract,</text> </clause><continuation-text continuation-text-level="subparagraph">on or after the date that is 90 days prior to the date on which such lifetime income investment is no longer authorized to be held as an investment option under the plan.</continuation-text></subparagraph><subparagraph id="H451AB3D696454AF3AA0F87CD8C8D9FA1"><enum>(B)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <clause id="H5D39CB5E0E914068ACBC93EE528EFD28"><enum>(i)</enum><text>the term <term>qualified distribution</term> means a direct trustee-to-trustee transfer described in paragraph (31)(A) to an eligible retirement plan (as defined in section 402(c)(8)(B)),</text> </clause><clause id="H43F64D340AC04092BC22212FFEA4B235"><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="H06ED08CD8E77403483B91603C0DEB7C2"><enum>(I)</enum><text>which are not uniformly available with respect to other investment options under the plan, and</text> </subclause><subclause id="H9B0831948C214793875C1D9AB470D4AB"><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="H59BD07588B6149D2AC951891D6356B84"><enum>(iii)</enum><text>the term <term>lifetime income feature</term> means—</text> <subclause id="H3AEB72C45A0E4A8096F1418F602C9D29"><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="H4247B2F0BC4D4342B199CFBB4014F1CB"><enum>(II)</enum><text>an annuity payable on behalf of the employee under which payments are made in substantially equal periodic payments (not less frequently than annually) over the life of the employee or the joint lives of the employee and the employee’s designated beneficiary, and</text> </subclause></clause><clause id="H93D2DCBCB2434EC692FD5F86A2986575"><enum>(iv)</enum><text display-inline="yes-display-inline">the term <term>qualified plan distribution annuity contract</term> means an annuity contract purchased for a participant and distributed to the participant by a plan 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="H1E85AC1AB4C141C2B76218BA038B40C1"><enum>(b)</enum><header>Cash or deferred arrangement</header> <paragraph id="id831482FD71194EE3954E4AD745A1BAFA"><enum>(1)</enum><header>In general</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(2)(B)</external-xref> of the Internal Revenue Code of 1986, as amended by section 110(a), 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="H7F9B7777E7C5496894C27BCF27AEED6E" style="OLC"> <subclause id="H43E48272831E4C1983F13153B50CD443"><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="idAAFF6AA8FCBB4DC3BAECD329366D06B4"><enum>(2)</enum><header>Distribution requirement</header><text>Subparagraph (B) of section 401(k)(2) 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="id9E3CCD624F464B2EBB9EE8D6DBC24A7B" style="OLC"> <clause id="id7A5FD8FC229F473E991352097FBC9803"><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="H00D9C82A340143D48DB3B8D391B6F9E3"><enum>(c)</enum><header>Section 403(<enum-in-header>b</enum-in-header>) plans</header> <paragraph id="HAAF313A48A4B4A118AC4E17E03C6D4FC"><enum>(1)</enum><header>Annuity contracts</header><text>Paragraph (11) of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)</external-xref> of the Internal Revenue Code of 1986 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="H2D54DD9CC1D74879B4FBF047F3B7D7EE" style="OLC"> <subparagraph id="H4298CA18326D41ADA0992574F559F445"><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="id37F4D0803F7E48828B72B576E2A8CE99"><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="id5745E55779764227814E5798F96E4C80"><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="H1F8AC1C50C7A4A46935A5A6D9188B1BB"><enum>(2)</enum><header>Custodial accounts</header><text>Subparagraph (A) of section 403(b)(7) of such Code is amended by striking <quote>if—</quote> and all that follows and inserting “if the amounts are to be invested in regulated investment company stock to be held in that custodial account, and under the custodial account—</text> <quoted-block display-inline="no-display-inline" id="H7A66BC46EF654E44A4164F19118FE183" style="OLC"> <clause id="idCF728D4DFE784739B48E65D77A701A3A"><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="H6DA762052B14478DAA73EE0A23631928"><enum>(I)</enum><text>the employee dies,</text> </subclause><subclause id="HFCC1D3FEF072459491CA8CCEAA47890B"><enum>(II)</enum><text>the employee attains age 59½,</text> </subclause><subclause id="H1C86E4C689074A97B459FF2D541CCA4C"><enum>(III)</enum><text>the employee has a severance from employment,</text> </subclause><subclause id="HB189952276C34610BECDE465C4B5B579"><enum>(IV)</enum><text>the employee becomes disabled (within the meaning of section 72(m)(7)),</text> </subclause><subclause id="H86BE9F2D6AAA46818023EF83D28ADFA0"><enum>(V)</enum><text>in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)), the employee encounters financial hardship, or</text> </subclause><subclause id="HE88D37033F924C42B01E0D728A1E4894"><enum>(VI)</enum><text display-inline="yes-display-inline">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="id0194D79CF8EA4D19BE7E1966A99B4BD6"><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="H8D38287E4FE148059448A6ECA958EED6"><enum>(d)</enum><header>Eligible deferred compensation plans</header> <paragraph id="idBC467D8891CE4F9D9E343D23FAE9F14E"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/457">section 457(d)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>or</quote> at the end of clause (ii), by inserting <quote>or</quote> at the end of clause (iii), and by adding after clause (iii) the following:</text> <quoted-block display-inline="no-display-inline" id="H6E645536FA78442A854FEB34EC0849B5" style="OLC"> <clause id="H25002E6A0C8B47508E462BB7955558A2"><enum>(iv)</enum><text display-inline="yes-display-inline">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="id46F2C17ED1DA4DED86CD66943B7676EA"><enum>(2)</enum><header>Distribution requirement</header><text>Paragraph (1) of section 457(d) 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="id95D27D1ACABD4F339B4EC394C5FCDDEB" style="OLC"> <subparagraph id="id22D8177C20C84A26A423FD0CE12260F6"><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="HA5E61E09B2064389B8D6D1E84C4E1D77"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to plan years beginning after December 31, 2018.</text> </subsection></section><section id="idA4FC64BE9F544C89AA3E6EC505BD8680"><enum>112.</enum><header>Treatment of custodial accounts on termination of section <enum-in-header>403(b)</enum-in-header> plans</header> <subsection id="id5C969C0F70814EF6A96283EF5D87B7C6"><enum>(a)</enum><header>In general</header><text><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="idD2A76BE780B94C918BEA3D8FD3247F21" style="OLC"> <subparagraph id="id04A4F5D02E194917BDED23D6669681DF"><enum>(D)</enum><header>Treatment of custodial account upon plan termination</header> <clause id="id44AB6D5A4C624519BAA3E7DE16E49F77"><enum>(i)</enum><header>In general</header><text>If—</text> <subclause id="idD51746A9EECA4F3E80A306727B5B6937"><enum>(I)</enum><text>an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A), and</text> </subclause><subclause id="id20BC73E73BD9456CAF072B923B8A7197"><enum>(II)</enum><text>the person holding the assets of the account has demonstrated to the satisfaction of the Secretary under section 408(a)(2) that the person is qualified to be a trustee of an individual retirement plan,</text> </subclause><continuation-text continuation-text-level="clause">then, as of the date of the termination, the custodial account shall be deemed to be an individual retirement plan for purposes of this title.</continuation-text></clause><clause id="id865BF9C38C934814A80387DDB0E8A0D2"><enum>(ii)</enum><header>Treatment as Roth IRA</header><text>Any custodial account treated as an individual retirement plan under clause (i) shall be treated as a Roth IRA only if the custodial account was a designated Roth account.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6EF62B433298490E90E56E64E72CB8DA"><enum>(b)</enum><header>Effective date</header><text>The 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="idF81B11E668A5425F9768AC7893BB4791"><enum>113.</enum><header>Clarification of retirement income account rules relating to church-controlled organizations</header> <subsection commented="no" display-inline="no-display-inline" id="id3642027DB0594F709F3FE2D66A9329C9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)(9)</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="idD829567810F043ADA60BEE6616900EE9"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to years beginning before, on, or after the date of the enactment of this Act.</text> </subsection></section><enum>II</enum><header>Administrative improvements</header> <section id="id073BCC0732BD4C99A010F9F86993D18B"><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="idC5D21B7BCC1E49A1B19162B7A8B3676C"><enum>(a)</enum><header>In general</header><text>Subsection (b) of <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="idC2266990D0674BF9A590998FE334A63B"><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="id54AB5CFFC99448348A6F7C81C369E571" style="OLC"> <paragraph id="id94ED2890C9E245F8A04EE5C6C95BBC25"><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="id79FEE08CFA554738B21E12D5BA296347"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idC2E089111D0C494785F7D03D6A560884" style="OLC"> <paragraph id="idE3CB4BA02FE147B0A85F84714DEAC132"><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 return of the employer for the taxable year (including extensions thereof), the employer may elect to treat the plan as having been adopted as of the last day of the taxable year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id27913E6B51AE49D69A8C4BDB6DB4BD8F"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plans adopted for taxable years beginning after December 31, 2018.</text> </subsection></section><section id="id8BD8751837644F0FB5F7DB97084965F2" section-type="subsequent-section"><enum>202.</enum><header>Combined annual report for group of plans</header> <subsection id="id8EA46AEA762D4AC7A85A98A3681B0308"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of the Treasury and the Secretary of Labor shall, in cooperation, modify the returns required under <external-xref legal-doc="usc" parsable-cite="usc/26/6058">section 6058</external-xref> of the Internal Revenue Code of 1986 and the reports required by section 104 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024</external-xref>) so that all members of a group of plans described in subsection (c) may file a single aggregated annual return or report satisfying the requirements of both such sections.</text> </subsection><subsection id="idFB0F50AA3C794BA2B260AE96D7E9FD94"><enum>(b)</enum><header>Administrative requirements</header><text display-inline="yes-display-inline">In developing the consolidated return or report under subsection (a), the Secretary of the Treasury and the Secretary of Labor may require such return or report to include any information regarding each plan in the group as such Secretaries determine is necessary or appropriate for the enforcement and administration of the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974.</text> </subsection><subsection id="idFAFEA59B01FC4D479F4C63FF4AE92682"><enum>(c)</enum><header>Plans described</header><text>A group of plans is described in this subsection if all plans in the group—</text> <paragraph id="id6B6A1E8198764E1A88BD7BE9D15DD36F"><enum>(1)</enum><text>are individual account plans or defined contribution plans (as defined in section 3(34) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002(34)</external-xref>) or in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(i)</external-xref> of the Internal Revenue Code of 1986);</text> </paragraph><paragraph id="id07883EB9E9844E328DA64C01E4F60E18"><enum>(2)</enum><text>have—</text> <subparagraph id="id090A44B2242941838B99CC07575A5E32"><enum>(A)</enum><text>the same trustee (as described in section 403(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1103">29 U.S.C. 1103(a)</external-xref>));</text> </subparagraph><subparagraph id="id9BACAD8106A64F45ACE27FBFE8B64353"><enum>(B)</enum><text>the same one or more named fiduciaries (as described in section 402(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1102">29 U.S.C. 1102(a)</external-xref>));</text> </subparagraph><subparagraph id="id0B324AE96BB548C597F856B3F160AF87"><enum>(C)</enum><text>the same administrator (as defined in section 3(16)(A) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002(16)(A)</external-xref>)) and plan administrator (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(g)</external-xref> of the Internal Revenue Code of 1986); and</text> </subparagraph><subparagraph id="id577BC887C823434BB1E6DEFF0B005B03"><enum>(D)</enum><text>plan years beginning on the same date; and</text> </subparagraph></paragraph><paragraph id="idB23C17AC9C5A44EF913BC8C8259F2B65"><enum>(3)</enum><text>provide the same investments or investment options to participants and beneficiaries.</text> </paragraph><continuation-text continuation-text-level="subsection">A plan not subject to title I of the Employee Retirement Income Security Act of 1974 shall be treated as meeting the requirements of paragraph (2) as part of a group of plans if the same person that performs each of the functions described in such paragraph, as applicable, for all other plans in such group performs each of such functions for such plan.</continuation-text></subsection><subsection id="id48B231EA0AB1455DAA87EBA9851FD9C5"><enum>(d)</enum><header>Clarification relating to electronic filing of returns for deferred compensation plans</header> <paragraph id="id99F68B850DBC4CE78FF89DDF05C2BE88"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6011">Section 6011(e)</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="id9180887A264F4EB295A10D31EAC4B25E" style="OLC"> <paragraph id="idFB72817D74864C2D9BAC5A1FB40F3CFE"><enum>(5)</enum><header>Application of numerical limitation to returns relating to deferred compensation plans</header><text>For purposes of applying the numerical limitation under paragraph (2)(A) to any return required under section 6058, information regarding each plan for which information is provided on such return shall be treated as a separate return.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2194AD0879384BFC9212B34E41237C18"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall apply to returns required to be filed with respect to plan years beginning after December 31, 2018.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9EEA262456B6464EABABDA642D9FCF99"><enum>(e)</enum><header>Effective date</header><text>The modification required by subsection (a) shall be implemented not later than January 1, 2021, and shall apply to returns and reports for plan years beginning after December 31, 2020.</text> </subsection></section><section id="id587D428B1734406EBF9AE235EA803B98"><enum>203.</enum><header>Disclosure regarding lifetime income</header> <subsection id="IDd83ac37b62bc477fbfee9a74aff70bec"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of section 105(a)(2) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1025">29 U.S.C. 1025(a)(2)</external-xref>) is amended—</text> <paragraph id="ID758ae7c3cbf04e068a809ad807517a55"><enum>(1)</enum><text>in clause (i), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="ID4502c54b24c74bcda0c7cea01779786b"><enum>(2)</enum><text>in clause (ii), by striking <quote>diversification.</quote> and inserting <quote>diversification, and</quote>; and</text> </paragraph><paragraph id="ID8b2f934001764ffb9997a2bc938b1928"><enum>(3)</enum><text>by inserting at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id6801C3588BB24C0BA16FDBE4F242797D" style="OLC"> <clause id="ID90f4cdd64ec1493484576b8504929544"><enum>(iii)</enum><text>the lifetime income disclosure described in subparagraph (D)(i).</text> </clause><quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">In the case of pension benefit statements described in clause (i) of paragraph (1)(A), a lifetime income disclosure under clause (iii) of this subparagraph shall be required to be included in only one pension benefit statement during any one 12-month period.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="IDaf95d4b85b3d457e80ba1ef0493b22f4"><enum>(b)</enum><header>Lifetime income</header><text>Paragraph (2) of section 105(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1025">29 U.S.C. 1025(a)</external-xref>) is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id07AFB0D1F26443248D2BCC7FB0B96597" style="OLC"> <subparagraph id="ID838710c1c19a47b585f4ab6fd96a55fc"><enum>(D)</enum><header>Lifetime income disclosure</header> <clause id="ID5429021069d64bf8bdf9c8b89f64a952"><enum>(i)</enum><header>In general</header> <subclause id="idD8DDCB2C7B124C28BD2B0D98F7EF1A3A"><enum>(I)</enum><header>Disclosure</header><text>A lifetime income disclosure shall set forth the lifetime income stream equivalent of the total benefits accrued with respect to the participant or beneficiary.</text> </subclause><subclause id="ID9a56daf8ec3544c08a9035106a7fa890"><enum>(II)</enum><header>Lifetime income stream equivalent of the total benefits accrued</header><text>For purposes of this subparagraph, the term <term>lifetime income stream equivalent of the total benefits accrued</term> means the amount of monthly payments the participant or beneficiary would receive if the total accrued benefits of such participant or beneficiary were used to provide lifetime income streams described in subclause (III), based on assumptions specified in rules prescribed by the Secretary.</text> </subclause><subclause id="ID188787ff41b6437789671f0b164c0e3b"><enum>(III)</enum><header>Lifetime income streams</header><text>The lifetime income streams described in this subclause are a qualified joint and survivor annuity (as defined in section 205(d)), based on assumptions specified in rules prescribed by the Secretary, including the assumption that the participant or beneficiary has a spouse of equal age, and a single life annuity. Such lifetime income streams may have a term certain or other features to the extent permitted under rules prescribed by the Secretary.</text> </subclause></clause><clause id="IDf745bd1865904966a004d0ddf7fa8f3f"><enum>(ii)</enum><header>Model disclosure</header><text>Not later than 1 year after the date of the enactment of the <short-title>Retirement Enhancement and Savings Act of 2018</short-title>, the Secretary shall issue a model lifetime income disclosure, written in a manner so as to be understood by the average plan participant, which—</text> <subclause id="ID873fe3084d9e46d89ce5cc808ebf0899"><enum>(I)</enum><text>explains that the lifetime income stream equivalent is only provided as an illustration;</text> </subclause><subclause id="ID0d3d267851314787ac44925e63ff744f"><enum>(II)</enum><text>explains that the actual payments under the lifetime income stream described in clause (i)(III) which may be purchased with the total benefits accrued will depend on numerous factors and may vary substantially from the lifetime income stream equivalent in the disclosures;</text> </subclause><subclause id="ID7b712677a74446d9861776d7383f8d5a"><enum>(III)</enum><text>explains the assumptions upon which the lifetime income stream equivalent was determined; and</text> </subclause><subclause id="ID078d42a0e1034f0d8dc62ab7fad6e132"><enum>(IV)</enum><text>provides such other similar explanations as the Secretary considers appropriate.</text> </subclause></clause><clause id="id6240BA2D892C46D4AE4C28BDC4F78628"><enum>(iii)</enum><header>Assumptions and rules</header><text>Not later than 1 year after the date of the enactment of the <short-title>Retirement Enhancement and Savings Act of 2018</short-title>, the Secretary shall—</text> <subclause id="ID10a7c92aecf24fd796d874e1096ec44c"><enum>(I)</enum><text>prescribe assumptions which administrators of individual account plans may use in converting total accrued benefits into lifetime income stream equivalents for purposes of this subparagraph; and</text> </subclause><subclause id="idF93B0FD1152F4E3083D71C5FFC64867E"><enum>(II)</enum><text>issue interim final rules under clause (i).</text> </subclause><continuation-text continuation-text-level="clause">In prescribing assumptions under subclause (I), the Secretary may prescribe a single set of specific assumptions (in which case the Secretary may issue tables or factors which facilitate such conversions), or ranges of permissible assumptions. To the extent that an accrued benefit is or may be invested in a lifetime income stream described in clause (i)(III), the assumptions prescribed under subclause (I) shall, to the extent appropriate, permit administrators of individual account plans to use the amounts payable under such lifetime income stream as a lifetime income stream equivalent.</continuation-text></clause><clause id="ID4262a47dab644e1eaa6841c98809c10b"><enum>(iv)</enum><header>Limitation on liability</header><text>No plan fiduciary, plan sponsor, or other person shall have any liability under this title solely by reason of the provision of lifetime income stream equivalents which are derived in accordance with the assumptions and rules described in clause (iii) and which include the explanations contained in the model lifetime income disclosure described in clause (ii). This clause shall apply without regard to whether the provision of such lifetime income stream equivalent is required by subparagraph (B)(iii).</text> </clause><clause id="IDa6691ae06a3d4da1908466c293d609dd"><enum>(v)</enum><header>Effective date</header><text>The requirement in subparagraph (B)(iii) shall apply to pension benefit statements furnished more than 12 months after the latest of the issuance by the Secretary of—</text> <subclause id="ID5fc33006ca4146ee95495af9c619eb1c"><enum>(I)</enum><text>interim final rules under clause (i);</text> </subclause><subclause id="ID68384a02723045fcba9b23ff04363e14"><enum>(II)</enum><text>the model disclosure under clause (ii); or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="ID6818d19253b04bf4a9c068f8e46b0c2a"><enum>(III)</enum><text>the assumptions under clause (iii).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section display-inline="no-display-inline" id="H691CB9A54F3E4E2D85B7A5D921E41834" section-type="subsequent-section"><enum>204.</enum><header>Fiduciary safe harbor for selection of lifetime income provider</header><text display-inline="no-display-inline">Section 404 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1104">29 U.S.C. 1104</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB042B30B49954A3792A9AB73FC13359F" style="OLC"> <subsection id="H2C6BC272FD724BA89BA243346B4553B3"><enum>(e)</enum><header>Safe harbor for annuity selection</header> <paragraph display-inline="no-display-inline" id="H8ECC91F745D64C5188557F535A900B3A"><enum>(1)</enum><header>In general</header><text>With respect to the selection of an insurer for a guaranteed retirement income contract, the requirements of subsection (a)(1)(B) will be deemed to be satisfied if a fiduciary—</text> <subparagraph id="HD4B73529C23A48B285C98F2355CAD058"><enum>(A)</enum><text>engages in an objective, thorough, and analytical search for the purpose of identifying insurers from which to purchase such contracts;</text> </subparagraph><subparagraph id="HE4F5562DDFE243259A5FD0CCC39637A4"><enum>(B)</enum><text>with respect to each insurer identified under subparagraph (A)—</text> <clause id="H84CBE7E4776C4A008BA2CD68C11E07E1"><enum>(i)</enum><text>considers the financial capability of such insurer to satisfy its obligations under the guaranteed retirement income contract; and</text> </clause><clause id="H0AC16D25CF024D7B8D654C8281DB20A5"><enum>(ii)</enum><text>considers the cost (including fees and commissions) of the guaranteed retirement income contract offered by the insurer in relation to the benefits and product features of the contract and administrative services to be provided under such contract; and</text> </clause></subparagraph><subparagraph id="H780190A701AE4FC19DA3D6C5982C3024"><enum>(C)</enum><text>on the basis of such consideration, concludes that—</text> <clause id="H7C9C4DD8D9D34A008EEDCD3D74B5D63C"><enum>(i)</enum><text>at the time of the selection, the insurer is financially capable of satisfying its obligations under the guaranteed retirement income contract; and</text> </clause><clause id="H514C49FB7F7C400EBC28E17592A5FA93"><enum>(ii)</enum><text>the relative cost of the selected guaranteed retirement income contract as described in subparagraph (B)(ii) is reasonable.</text> </clause></subparagraph></paragraph><paragraph id="H97D010A302634AA08903E033360A79F4"><enum>(2)</enum><header>Financial capability of the insurer</header><text>A fiduciary will be deemed to satisfy the requirements of paragraphs (1)(B)(i) and (1)(C)(i) if—</text> <subparagraph id="H928F7BC164F844DE90A58FDE0840CDCD"><enum>(A)</enum><text>the fiduciary obtains written representations from the insurer that—</text> <clause id="HC291D0F072F74CC0B872198A3F4FB155"><enum>(i)</enum><text>the insurer is licensed to offer guaranteed retirement income contracts;</text> </clause><clause id="H19035C20E15D47F9910C0A8C2AE40A9F"><enum>(ii)</enum><text>the insurer, at the time of selection and for each of the immediately preceding 7 plan years—</text> <subclause id="H5D3082438A804550AD153D033F3F77CB"><enum>(I)</enum><text>operates under a certificate of authority from the insurance commissioner of its domiciliary State which has not been revoked or suspended;</text> </subclause><subclause id="HED2357DA36004D8D89115478FBDF3D2A"><enum>(II)</enum><text>has filed audited financial statements in accordance with the laws of its domiciliary State under applicable statutory accounting principles;</text> </subclause><subclause id="H126FBD45F22D4556A6E755BC46EE7DD0"><enum>(III)</enum><text>maintains (and has maintained) reserves which satisfies all the statutory requirements of all States where the insurer does business; and</text> </subclause><subclause id="H72615B2B824244F69DD284BA2DD16F38"><enum>(IV)</enum><text>is not operating under an order of supervision, rehabilitation, or liquidation;</text> </subclause></clause><clause id="H35ED33A49C4644F5B1D325C677AA3E8D"><enum>(iii)</enum><text>the insurer undergoes, at least every 5 years, a financial examination (within the meaning of the law of its domiciliary State) by the insurance commissioner of the domiciliary State (or representative, designee, or other party approved by such commissioner); and</text> </clause><clause id="id43E625EC7C9D4C23807BB60C99A827CF"><enum>(iv)</enum><text>the insurer will notify the fiduciary of any change in circumstances occurring after the provision of the representations in clauses (i), (ii), and (iii) which would preclude the insurer from making such representations at the time of issuance of the guaranteed retirement income contract; and</text> </clause></subparagraph><subparagraph id="HE24C6BF346014368998FFECD18413046"><enum>(B)</enum><text display-inline="yes-display-inline">after receiving such representations and as of the time of selection, the fiduciary has not received any notice described in subparagraph (A)(iv) and is in possession of no other information which would cause the fiduciary to question the representations provided.</text> </subparagraph></paragraph><paragraph id="H8EC84A3ABAD04375956766D210403321"><enum>(3)</enum><header>No requirement to select lowest cost</header><text>Nothing in this subsection shall be construed to require a fiduciary to select the lowest cost contract. A fiduciary may consider the value of a contract, including features and benefits of the contract and attributes of the insurer (including, without limitation, the insurer's financial strength) in conjunction with the cost of the contract.</text> </paragraph><paragraph id="HCF18CBA4CFFB470590FF3C71B4899672"><enum>(4)</enum><header>Time of selection</header> <subparagraph id="HD4C48FF38EB2466D82AFB11228083E98"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the time of selection is—</text> <clause id="HFAF71099ACFF4E579D8AEF5F545E6C8E"><enum>(i)</enum><text>the time that the insurer and the contract are selected for distribution of benefits to a specific participant or beneficiary; or</text> </clause><clause id="H2552DD56A44443DA97FAE953192BC2FB"><enum>(ii)</enum><text>if the fiduciary periodically reviews the continuing appropriateness of the conclusion described in paragraph (1)(C) with respect to a selected insurer, taking into account the considerations described in such paragraph, the time that the insurer and the contract are selected to provide benefits at future dates to participants or beneficiaries under the plan.</text> </clause><continuation-text continuation-text-level="subparagraph">Nothing in the preceding sentence shall be construed to require the fiduciary to review the appropriateness of a selection after the purchase of a contract for a participant or beneficiary.</continuation-text></subparagraph><subparagraph id="H90DA298B8CC546738103F021D0BC6C45"><enum>(B)</enum><header>Periodic review</header><text>A fiduciary will be deemed to have conducted the periodic review described in subparagraph (A)(ii) if the fiduciary obtains the written representations described in clauses (i), (ii), and (iii) of paragraph (2)(A) from the insurer on an annual basis, unless the fiduciary receives any notice described in paragraph (2)(A)(iv) or otherwise becomes aware of facts that would cause the fiduciary to question such representations.</text> </subparagraph></paragraph><paragraph id="H9D4F731FE6A2414FB01C8402C181B91D"><enum>(5)</enum><header>Limited liability</header><text>A fiduciary which satisfies the requirements of this subsection shall not be liable following the distribution of any benefit, or the investment by or on behalf of a participant or beneficiary pursuant to the selected guaranteed retirement income contract, for any losses that may result to the participant or beneficiary due to an insurer’s inability to satisfy its financial obligations under the terms of such contract.</text> </paragraph><paragraph id="H52681AA6F60543FD98118EF27A0EBB29"><enum>(6)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="H95899DDE3A6E4DCB99819FEEBBE891B7"><enum>(A)</enum><header>Insurer</header><text>The term <term>insurer</term> means an insurance company, insurance service, or insurance organization, including affiliates of such companies.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA015309ABAC142FFB6C1DA2D74FAF6BC"><enum>(B)</enum><header>Guaranteed retirement income contract</header><text>The term <term>guaranteed retirement income contract</term> means an annuity contract for a fixed term or a contract (or provision or feature thereof) which provides guaranteed benefits annually (or more frequently) for at least the remainder of the life of the participant or the joint lives of the participant and the participant’s designated beneficiary as part of an individual account plan.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="id721E72BC57CF4EFBB5E2F6B18AEAC9B8" section-type="subsequent-section"><enum>205.</enum><header>Modification of nondiscrimination rules to protect older, longer service participants</header> <subsection commented="no" id="HF5673537F4554177A12C34C2FB733100"><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 commented="no" id="idA3D284739E544BF38ADAE811494A584A"><enum>(1)</enum><text>by redesignating subsection (o) as subsection (p); and</text> </paragraph><paragraph commented="no" id="idDD84F95C1E8B4C02B9DBFB0F0D1A5D68"><enum>(2)</enum><text>by inserting after subsection (n) the following new subsection:</text> <quoted-block id="HE8461D5587854305B48643E784BC678F" style="OLC"> <subsection commented="no" id="H809C77A371114CF99170F72A692AF58C"><enum>(o)</enum><header>Special rules for applying nondiscrimination rules To protect older, longer service and grandfathered participants </header> <paragraph commented="no" id="HA55317A126B244B3BDF4DCA9A108D2FF"><enum>(1)</enum><header>Testing of defined benefit plans with closed classes of participants</header> <subparagraph commented="no" display-inline="no-display-inline" id="HDA9A888A66B34BC0A15835E89E0C0B5B"><enum>(A)</enum><header>Benefits, rights, or features provided to closed classes</header><text display-inline="yes-display-inline">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="id5eec4822a7d440da8d153feb99fc6a8c"><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 commented="no" id="H409F5A35AF944638A99ECC78B50B163C"><enum>(ii)</enum><text display-inline="yes-display-inline">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="id162884c90e6447a4ba9af167e15cde6f"><enum>(iii)</enum><text>the class was closed before September 21, 2016, or the plan is described in subparagraph (C).</text> </clause></subparagraph><subparagraph commented="no" id="id325110E924014FA5A2A1435A0A0176BF"><enum>(B)</enum><header>Aggregate testing with defined contribution plans permitted on a benefits basis</header> <clause commented="no" id="id3BB8DE9E418743BBB2331EAFFA08C296"><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 commented="no" id="id169494BFE2E946AEA3C47FD984D88144"><enum>(I)</enum><text>provides matching contributions (as defined in subsection (m)(4)(A)),</text> </subclause><subclause commented="no" id="id485068C7B7034520B26F969DE26766FB"><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 commented="no" id="id9905896613254083B60A40DF505AA563"><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="id4F5B12BB852E49728315D7A84BB05052"><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 commented="no" id="id98DD9F65D3CB479F89DB85F2B4F76664"><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="id2906864824B74277AABEF21448346880"><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="idC54CA1E03A7A4C6FAF7C2C5BF1DFFB37"><enum>(iii)</enum><header>Plans described</header><text>A defined benefit plan is described in this clause if—</text> <subclause commented="no" id="id77810284298E4473A0681E879BA951F6"><enum>(I)</enum><text>the plan provides benefits to a closed class of participants,</text> </subclause><subclause commented="no" id="id897FFF6244464F26A5EBDEEFBFC24802"><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 commented="no" id="idD73E92C93A4441E4AD6669EBB6415083"><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="id5935AA41FC0F4C2DA49F8EEFBAEA4D7D"><enum>(IV)</enum><text>the class was closed before September 21, 2016, or the plan is described in subparagraph (C).</text> </subclause></clause></subparagraph><subparagraph id="id55f44e7c298c4103bbf54800631438a1"><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="idb77897160e044f26a07fe00af6c55e41"><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="id6c4042f7e2004df99b71bf9693b48de8"><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="ida30d559ad06747cfac1c364f7b96909b"><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="idcaab25cb15ac40caa0db4207ddb5f031"><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="id142c4b1e1f0b460f823af50b77b1908e"><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="id9aa80933fb5e41f09e4fa01a2aa64a3c"><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="id98BA1EF9D8A2456E8E88FAFEE8E03AAC"><enum>(i)</enum><text>the number of participants benefiting under the plan on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or</text> </clause><clause id="id6711FBBF444E45B49DE59BA68EB2AA1E"><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="id9AB72C2165414F9C99FB12D39985CE59"><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 commented="no" id="id0c83482ce60342a699960c04d365fe56"><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 commented="no" id="id85a99e57b4614fd0a2ada12bceebae0f"><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="id337B8C525BB14CBFBED6D0C06F39258A"><enum>(G)</enum><header>Rules relating to average benefit</header><text>For purposes of subparagraph (E)—</text> <clause id="idBF5143D69A31437EAD381737A131DA66"><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="idEA491FA47FC84B59AF833A514641DA8F"><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="id93CE782F5ECE4B149C4E1F07857DF5AE"><enum>(I)</enum><text>the total amount determined under section 430(b)(1)(A)(i) for all participants benefiting under the plan for the plan year in which the 5-year period described in subparagraph (E) ends, exceeds</text> </subclause><subclause id="id323CBD58224140C494C4719DDB40869E"><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,</text> </subclause><continuation-text continuation-text-level="clause">by more than 50 percent. In the case of a CSEC plan (as defined in section 414(y)), the normal cost of the plan (as determined under section 433(j)(1)(B)) shall be used in lieu of the amount determined under section 430(b)(1)(A)(i).</continuation-text></clause></subparagraph><subparagraph id="idDD56B5C7F35143408B2042B1CFDB30E5"><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 participating employer.</text> </subparagraph><subparagraph id="ida0cbee9a8ec046d291b55e26fb92d3ed"><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="idb44c61e2414944db8bd53ea07a9f0f8a"><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="id20c06e691bed4ba4a2500b9a87e9b86f"><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="id1eb5ea0d339a4b8fb57ee6156e5b970d"><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="idCB4ED2AC9A084D919403D45DD3EB8CB8"><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="id6997c283f3a24f3abad6f28cb2af6993"><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="id738DCBBFD1C945D5815B5A78438F79FD"><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="idC5C7566071A74C2AB02FDAF1D683C87F"><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="idca0d679d2b5447039e4e1aebbe0ed974"><enum>(2)</enum><header>Testing of defined contribution plans</header> <subparagraph commented="no" display-inline="no-display-inline" id="H95E636092F2048B8807F26CF125424A4"><enum>(A)</enum><header>Testing on a benefits basis</header><text display-inline="yes-display-inline">A defined contribution plan shall be permitted to be tested on a benefits basis if—</text> <clause commented="no" id="HABC4AE92066347FB82113EDE2044F516"><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 commented="no" id="HF3E0BD33355D47DCB52137D2376FD0C6"><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 commented="no" id="H298E8AE0730E42D9B8EBCC6CF5543062"><enum>(iii)</enum><text display-inline="yes-display-inline">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="id2CDB3374BE56458693A6C663F40F9F9C"><enum>(iv)</enum><text>the class was closed before September 21, 2016, or the defined benefit plan under clause (i) is described in paragraph (1)(C) (as applied for purposes of paragraph (1)(B)(iii)(IV)).</text> </clause></subparagraph><subparagraph commented="no" id="H353164C00F6A48CA9ADF79E601B4F402"><enum>(B)</enum><header>Aggregation with plans including matching contributions</header> <clause commented="no" id="id4B47201D75BA42BA943B1A925F371A64"><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 commented="no" id="H7FF935AC784D434AAD239C8CA8D0C571"><enum>(I)</enum><text>provides matching contributions (as defined in subsection (m)(4)(A)),</text> </subclause><subclause commented="no" id="idDD22A59BAE6846DC9AA1CE850C415BE0"><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 commented="no" id="H39A0406C744C4DC5A7C45ED8D2C9E1DD"><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 commented="no" id="id9824B17AD6DB47DFB8C7DB49F906BDFD"><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="id0F78F9CD95FF4FF6B1F71174FB1591B6"><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 commented="no" display-inline="no-display-inline" id="id04C232803B924E54890DE6FB5BA507F6"><enum>(D)</enum><header display-inline="yes-display-inline">Spun-off plans</header><text display-inline="yes-display-inline">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 commented="no" id="H0AE2295709AF4B0BA3DA53527B66249D"><enum>(3)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="HB09ADE6014A244318CC69C4BAAC4B7A8"><enum>(A)</enum><header>Make-whole contributions</header><text>Except as otherwise provided in paragraph (2)(C), the term <term>make-whole contributions</term> 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="HBF6484C1F9CD40589A2847D1E04F9DF2"><enum>(B)</enum><header>References to closed class of participants</header><text display-inline="yes-display-inline">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="idcf1c81e2df704a4b96661059cf9927b3"><enum>(C)</enum><header>Highly compensated employee</header><text>The term <term>highly compensated employee</term> 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="H962BE4E3F1AC43C6A962C32C3344202D"><enum>(b)</enum><header>Participation requirements</header><text>Paragraph (26) of <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 adding at the end the following new subparagraph:</text> <quoted-block id="HBF61137D646748A6B13C730989D519B3" style="OLC"> <subparagraph id="HE1AEA6FF02EF4A65B50FF51C23BD731A"><enum>(I)</enum><header>Protected participants</header> <clause id="id51131EDF23B0469B899D65F8B202B5CF"><enum>(i)</enum><header>In general</header><text>A plan shall be deemed to satisfy the requirements of subparagraph (A) if—</text> <subclause id="HA86477C3AA084929A29CF48566454EEC"><enum>(I)</enum><text>the plan is amended—</text> <item id="H0DEF757275D74572871C07DF2292D918"><enum>(aa)</enum><text>to cease all benefit accruals, or</text> </item><item id="H28C11A02E4994692B3BE7BADB9C55D02"><enum>(bb)</enum><text>to provide future benefit accruals only to a closed class of participants,</text> </item></subclause><subclause id="H6CEE84D0D87241F7A9B23DEFB86ABB61"><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="idce7076cd2fc44c8f87c71633df086339"><enum>(III)</enum><text>the amendment was adopted before September 21, 2016, or the plan is described in clause (ii).</text> </subclause></clause><clause id="id578a361db4ee481da8c303f9364dee4f"><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="id2d5310f92b124de7909a96644f12fc98"><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="id7102b2a1a9bc4fd3aaf98b31c289c1b3"><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 id="H732508CE3FF24A2EA5D431575888D50B"><enum>(c)</enum><header>Effective date</header> <paragraph id="id3563957D22314F198F23322798D4C3F1"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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 id="idcd8f88cd6810431c98a517e9d3b8a132"><enum>(2)</enum><header>Special rules</header> <subparagraph id="id6174E82E871B438B9F972084EC432704"><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" display-inline="no-display-inline" id="idC7D5CA860A7F4566B9F034A77B8F9180"><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 September 21, 2016, if the plan sponsor's intention to create such closed class is reflected in formal written documents and communicated to participants before such date.</text> </subparagraph><subparagraph id="idba554163509a44b187def1d26b1821c9"><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 id="id210B33620EB5424C96D1DDCD280F34A8"><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 id="id3E591882280241DEA3B4EF6F764D69D3"><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.</text> </clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph></paragraph></subsection></section><section id="id5ccf3a7511c1489b8201ef6da2185950"><enum>206.</enum><header>Modification of PBGC premiums for CSEC plans</header> <subsection id="idbbf561238cf942abaa68d7769cd34d8e"><enum>(a)</enum><header>Flat rate premium</header><text>Subparagraph (A) of section 4006(a)(3) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1306">29 U.S.C. 1306(a)(3)</external-xref>) is amended—</text> <paragraph id="id28995af65f1e49c69ff395643ed798cb"><enum>(1)</enum><text>in clause (i), by striking <quote>plan,</quote> and inserting <quote>plan other than a CSEC plan (as defined in section 210(f)(1))</quote>;</text> </paragraph><paragraph id="idea34cda20fc64d25b37d21559693db09"><enum>(2)</enum><text>in clause (v), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="id9004ae02fbcf427ba7fdb8761403356b"><enum>(3)</enum><text>in clause (vi), by striking the period at the end and inserting <quote>, or</quote>; and</text> </paragraph><paragraph id="id802739241f834ec3817afc360a164230"><enum>(4)</enum><text>by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="id54AC087486084BA0815ED96615516DD3" style="OLC"> <clause id="idc82a30e35a0c471fafcadc24d9b329e7"><enum>(vii)</enum><text>in the case of a CSEC plan (as defined in section 210(f)(1)), for plan years beginning after December 31, 2017, for each individual who is a participant in such plan during the plan year an amount equal to the sum of—</text> <subclause id="idBD719654FD43438D91735C2C13BEB906"><enum>(I)</enum><text>the additional premium (if any) determined under subparagraph (E), and</text> </subclause><subclause id="idBEC6CAAFD7174C74978D2F1A18A2BFEF"><enum>(II)</enum><text>$19.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="idd5bcc2d47d864516b2ca51d071403d31"><enum>(b)</enum><header>Variable rate premium</header> <paragraph id="idf7a808cb46304692a81ac1abb7c01bc2"><enum>(1)</enum><header>Unfunded vested benefits</header> <subparagraph id="id8277200B1D1D4427BB2680E6849E7EE9"><enum>(A)</enum><header>In general</header><text>Subparagraph (E) of section 4006(a)(3) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1306">29 U.S.C. 1306(a)(3)</external-xref>) is amended by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="id9C816DD58A0B421B8EF58204F33402F9" style="OLC"> <clause id="idec2dad48d13349c8b7c0e8187160cd2f"><enum>(v)</enum><text>For purposes of clause (ii), in the case of a CSEC plan (as defined in section 210(f)(1)), the term <term>unfunded vested benefits</term> means, for plan years beginning after December 31, 2017, the excess (if any) of—</text> <subclause id="id36363f9d9f8a437bbee6d018774b970a"><enum>(I)</enum><text>the funding liability of the plan as determined under section 306(j)(5)(C) for the plan year by only taking into account vested benefits, over</text> </subclause><subclause id="ide79626284cd1409bb6bd55a746a42324"><enum>(II)</enum><text>the fair market value of plan assets for the plan year which are held by the plan on the valuation date.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idC1F0751FDFBE4F0DA96A80BDECEAF614"><enum>(B)</enum><header>Conforming amendment</header><text>Clause (iii) of section 4006(a)(3)(E) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1306">29 U.S.C. 1306(a)(3)(E)</external-xref>) is amended by striking <quote>For purposes</quote> and inserting <quote>Except as provided in clause (v), for purposes</quote>.</text> </subparagraph></paragraph><paragraph id="id0e838b57c896400cbb1aea615cd65bf6"><enum>(2)</enum><header>Applicable dollar amount</header> <subparagraph id="idFBB1E411D7494D83BBBCBD01E9293D2F"><enum>(A)</enum><header>In general</header><text>Paragraph (8) of section 4006(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1306">29 U.S.C. 1306(a)</external-xref>) is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id286EC21AF7BE459DB6483A8BEA2E1071" style="OLC"> <subparagraph id="id2dafb4ff094346c7beb22b13d8858665"><enum>(E)</enum><header>CSEC plans</header><text>In the case of a CSEC plan (as defined in section 210(f)(1)), the applicable dollar amount shall be $9.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="id3734F734F13D4C83AB95200AB873D407"><enum>(B)</enum><header>Conforming amendment</header><text>Subparagraph (A) of section 4006(a)(8) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1306">29 U.S.C. 1306(a)(8)</external-xref>) is amended by striking <quote>(B) and (C)</quote> and inserting <quote>(B), (C), and (E)</quote>.</text> </subparagraph></paragraph></subsection></section><enum>III</enum><header>Benefits relating to United States Tax Court</header> <section id="ID2812b62e93334768912b5d2a970e1af5"><enum>301.</enum><header>Thrift Savings Plan contributions for judges in the Federal Employees Retirement System</header> <subsection id="ID028bc471357d4c489192f95e177a851d"><enum>(a)</enum><header>In general</header><text>Subsection (j)(3)(B) of <external-xref legal-doc="usc" parsable-cite="usc/26/7447">section 7447</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id30138F10125A45B4A58E38B9EB5A3F3D" style="OLC"> <subparagraph id="ID925e801b119f4e228f33c53570ab60b1"><enum>(B)</enum><header>Contributions for benefit of judge</header><text>No contributions under section 8432(c) of title 5, United States Code, shall be made for the benefit of a judge who has filed an election to receive retired pay under subsection (e).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDab316ea790da495fb11266f6a62f62d9"><enum>(b)</enum><header>Offset</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/7447">section 7447(j)</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="id210A69F8C8FC48A2AC1AEB5F36E4D5EF" style="OLC"> <subparagraph id="ID2742aa81c95a45328730faa1bef7664d"><enum>(F)</enum><header>Offset</header><text>In the case of a judge who receives a distribution from the Thrift Savings Plan and who later receives retired pay under subsection (d), the retired pay shall be offset by an amount equal to the amount of the distribution which represents the Government’s contribution to the individual’s Thrift Savings Account during years of service as a full-time judicial officer under the Federal Employees Retirement System, without regard to earnings attributable to such amount. Where such an offset would exceed 50 percent of the retired pay to be received in the first year, the offset may be divided equally over the first 2 years in which the individual receives the annuity.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idA715CF2479CA4A5A852A9F6644F244D3"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to basic pay earned while serving as a judge of the United States Tax Court on or after the date of the enactment of this Act.</text> </subsection></section><section id="id98b8fc82e3fc48c2a86d8740c89c94be"><enum>302.</enum><header>Change in vesting period for survivor annuities and waiver of vesting period in the event of assassination</header> <subsection id="id207F2C79DCEF4DAD8288A5D36FE67130"><enum>(a)</enum><header>Eligibility in case of death by assassination</header><text display-inline="yes-display-inline">Subsection (h) of <external-xref legal-doc="usc" parsable-cite="usc/26/7448">section 7448</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idEC3E18606B9B49CB87ED982ABA498626" style="OLC"> <subsection id="id0A55CB294A914BF39B5255049057F1FE"><enum>(h)</enum><header>Entitlement to annuity</header> <paragraph id="id5C55DA6B96DA4B47951BD371685BDF1B"><enum>(1)</enum><header>In general</header> <subparagraph id="id7C7DCCEEE6A542BEA3351C48C7D38745"><enum>(A)</enum><header>Annuity to surviving spouse</header><text display-inline="yes-display-inline">If a judge or magistrate judge of the Tax Court described in paragraph (2) is survived by a surviving spouse but not by a dependent child, there shall be paid to such surviving spouse an annuity beginning with the day of the death of the judge or magistrate judge of the Tax Court or following the surviving spouse’s attainment of age 50, whichever is the later, in an amount computed as provided in subsection (m).</text> </subparagraph><subparagraph id="id5F5B4D0A617946A392824327063BC7B4"><enum>(B)</enum><header>Annuity to surviving spouse and child</header><text display-inline="yes-display-inline">If a judge or magistrate judge of the Tax Court described in paragraph (2) is survived by a surviving spouse and dependent child or children, there shall be paid to such surviving spouse an annuity, beginning on the day of the death of the judge or magistrate judge of the Tax Court, in an amount computed as provided in subsection (m), and there shall also be paid to or on behalf of each such child an immediate annuity equal to the lesser of—</text> <clause id="idF3C52276EF3B4F02924A969A4C95EE59"><enum>(i)</enum><text display-inline="yes-display-inline">10 percent of the average annual salary of such judge or magistrate judge of the Tax Court (determined in accordance with subsection (m)), or</text> </clause><clause id="id9779BB7B5FFA483BA09928E9C152D3E1"><enum>(ii)</enum><text display-inline="yes-display-inline">20 percent of such average annual salary, divided by the number of such children.</text> </clause></subparagraph><subparagraph id="id0D69628099364AA9BC3B0B35AF94F88C"><enum>(C)</enum><header>Annuity to surviving dependent children</header><text display-inline="yes-display-inline">If a judge or magistrate judge of the Tax Court described in paragraph (2) leaves no surviving spouse but leaves a surviving dependent child or children, there shall be paid to or on behalf of each such child an immediate annuity equal to the lesser of—</text> <clause id="id2B0D40E9AE494067BFA06271ED56FE2C"><enum>(i)</enum><text display-inline="yes-display-inline">20 percent of the average annual salary of such judge or magistrate judge of the Tax Court (determined in accordance with subsection (m)), or</text> </clause><clause id="idF60F76FD26DD4E4297AC8E4EC87F05AF"><enum>(ii)</enum><text display-inline="yes-display-inline">40 percent of such average annual salary divided by the number of such children.</text> </clause></subparagraph></paragraph><paragraph id="id874CB37383D240578EA9169C18D256B9"><enum>(2)</enum><header>Covered judges</header><text display-inline="yes-display-inline">Paragraph (1) applies to any judge or magistrate judge of the Tax Court electing under subsection (b)—</text> <subparagraph id="id7E828B10588040C28F499C7CDEC0D3E4"><enum>(A)</enum><text display-inline="yes-display-inline">who dies while a judge or magistrate judge of the Tax Court after having rendered at least 18 months of civilian service computed as prescribed in subsection (n), for the last 18 months of which the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made or the salary deductions required by the civil service retirement laws have actually been made, or</text> </subparagraph><subparagraph id="idFA492ADAB1A9496BA40548BE126B5C6F"><enum>(B)</enum><text display-inline="yes-display-inline">who dies by assassination after having rendered less than 18 months of civilian service computed as prescribed in subsection (n) if, for the period of such service, the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made.</text> </subparagraph></paragraph><paragraph id="id902319EE20E949D4B11667346351B213"><enum>(3)</enum><header>Termination of annuity</header> <subparagraph id="id95D00198127D44B2BC4F657D92729AAF"><enum>(A)</enum><header>Surviving spouse</header><text display-inline="yes-display-inline">The annuity payable to a surviving spouse under this subsection shall be terminable upon such surviving spouse’s death or such surviving spouse’s remarriage before attaining age 55.</text> </subparagraph><subparagraph id="id2DE1982F431E455CA4C53F5ACA3CB081"><enum>(B)</enum><header>Surviving child</header><text display-inline="yes-display-inline">Any annuity payable to a child under this subsection shall be terminable upon the earliest of—</text> <clause id="idEA86E4AF06F041B3B15CAE3683E9E9B8"><enum>(i)</enum><text display-inline="yes-display-inline">the child attainment of age 18,</text> </clause><clause id="id8FDBF3A7F29D4162B876D7ADA00F5D84"><enum>(ii)</enum><text display-inline="yes-display-inline">the child’s marriage, or</text> </clause><clause id="id737F9338197D421CAE1047695F91D6A3"><enum>(iii)</enum><text display-inline="yes-display-inline">the child’s death,</text> </clause><continuation-text continuation-text-level="subparagraph">except that if such child is incapable of self-support by reason of mental or physical disability the child’s annuity shall be terminable only upon death, marriage, or recovery from such disability.</continuation-text></subparagraph><subparagraph id="idE02798D1F64D4E09BF51F4EBD00193DC"><enum>(C)</enum><header>Dependent child after death of surviving spouse</header><text>In case of the death of a surviving spouse of a judge or magistrate judge of the Tax Court leaving a dependent child or children of the judge or magistrate judge of the Tax Court surviving such spouse, the annuity of such child or children shall be recomputed and paid as provided in paragraph (1)(C).</text> </subparagraph><subparagraph id="idD1A57FC53EC14B9AA1C844EB7597F88F"><enum>(D)</enum><header>Recomputation with respect to other dependent children</header><text>In any case in which the annuity of a dependent child is terminated under this subsection, the annuities of any remaining dependent child or children based upon the service of the same judge or magistrate judge of the Tax Court shall be recomputed and paid as though the child whose annuity was so terminated had not survived such judge.</text> </subparagraph><subparagraph id="id3B98C36FEB044810BE892DDADBF8A233"><enum>(E)</enum><header>Special rule for assassinated judges</header><text>In the case of a survivor of a judge or magistrate judge of the Tax Court described in paragraph (2)(B), there shall be deducted from the annuities otherwise payable under this section an amount equal to the amount of salary deductions that would have been made if such deductions had been made for 18 months prior to the death of the judge or magistrate judge of the Tax Court.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id9F0BF7D9E6CC4252AF21A5ACBB6E53D9"><enum>(b)</enum><header>Definition of assassination</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448(a)</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="idC20F30A2B99E4AA2A36F2D35BDC4F3A2" style="OLC"> <paragraph id="id81F1E93D9B654E179AB6618914ABF33D"><enum>(10)</enum><text>The terms <quote>assassinated</quote> and <quote>assassination</quote> mean the killing of a judge or magistrate judge of the Tax Court that is motivated by the performance by the judge or magistrate judge of the Tax Court of his or her official duties.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id7D6198AA974040388F18FA5DFE0BE141"><enum>(c)</enum><header>Determination of assassination</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/7448">section 7448</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="idF19DD4A924314D45958EDBAB5AEA2E18"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">of dependency and disability</header-in-text>.—Questions</quote> and inserting “<header-in-text level="subsection" style="OLC">by chief judge</header-in-text>.—</text> <quoted-block display-inline="no-display-inline" id="id790E2EE7270D4C07ABD04B02A022F7BD" style="OLC"> <paragraph id="id94A4D4549EC04AE2A5F213C1BF3C2D91"><enum>(1)</enum><header>Dependency and disability</header><text>Questions</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idC5925C1340AC4FB7AA9550EA485AA19E"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id8AA96A86E3DB4F1284E979265D26BFF9" style="OLC"> <paragraph id="idDCFA15BBFC824FC5A65763F281C55C80"><enum>(2)</enum><header>Assassination</header><text>The chief judge shall determine whether the killing of a judge or magistrate judge of the Tax Court was an assassination, subject to review only by the Tax Court. The head of any Federal agency that investigates the killing of a judge or magistrate judge of the Tax Court shall provide to the chief judge any information that would assist the chief judge in making such a determination.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id06EFA3CBFE914C8289737273DE3E2CCB"><enum>(d)</enum><header>Computation of annuities</header><text>Subsection (m) of <external-xref legal-doc="usc" parsable-cite="usc/26/7448">section 7448</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id15B3A15083144D9E82421C00D54F1A6E"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">annuities</header-in-text>.—The annuity</quote> and inserting “<header-in-text level="subsection" style="OLC">annuities</header-in-text>.—</text> <quoted-block display-inline="no-display-inline" id="idA2646534FD0D4CFF92E8C68ACF0B6C22" style="OLC"> <paragraph id="idE67CE68FFBEC4D6580AF4B251D2527FD"><enum>(1)</enum><header>In general</header><text>The annuity</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="id54480A4A3F114319B33CB46D645789E6"><enum>(2)</enum><text>by striking <quote>the sum of (1) 1.5 percent</quote> and inserting “the sum of—</text> <quoted-block display-inline="no-display-inline" id="id22333A176BB8489FB6119BDC6D25969F" style="OLC"> <subparagraph id="id388E1A90DA6B4495B2F296A90820905D"><enum>(A)</enum><text>1.5 percent</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="idf9b63e411f3c43eb92cb82e175e08ab8"><enum>(3)</enum><text>by striking <quote>and (2) three-fourths of 1 percent</quote> and inserting “and</text> <quoted-block display-inline="no-display-inline" id="idACC820AC7778405686AFB584EC8F50C0" style="OLC"> <subparagraph id="idA51C94A6417F437AB8AE898E043CCAC6"><enum>(B)</enum><text>three-fourths of 1 percent</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="id092066d0bb26478daf03c6e58305fae6"><enum>(4)</enum><text>by striking <quote>prior allowable service, except that</quote> and inserting “prior allowable service,</text> <quoted-block display-inline="no-display-inline" id="id446C9050AB56456FB8A776515DDFB8C7" style="OLC"> <quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">except that</quoted-block-continuation-text><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id481D9D5781F94DDDA0431E0848F512C0"><enum>(5)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id435D066FE07B4B9F9AD0DE9DC1DA8F55" style="OLC"> <paragraph id="id8166871414DF4E57B9AFBD80BC190949"><enum>(2)</enum><header>Assassinated judges and magistrate judges of the tax court</header><text>In the case of a judge or magistrate judge of the Tax Court who is assassinated and who has served less than 18 months, the annuity of the surviving spouse of such judge or magistrate judge of the Tax Court shall be based upon the average annual salary received by such judge or magistrate judge of the Tax Court for judicial service.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="idDC2BA4864D5046568080666914458824"><enum>(e)</enum><header>Other benefits</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448</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="id4F0DA7843F514F7B9E8162271F65AABF" style="OLC"> <subsection id="idC5FF5B172D374A36B5A3792DE1FF594E"><enum>(u)</enum><header>Other benefits in case of assassination</header><text>In the case of a judge or magistrate judge of the Tax Court who is assassinated, an annuity shall be paid under this section notwithstanding a survivor’s eligibility for or receipt of benefits under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/81">chapter 81</external-xref> of title 5, United States Code, except that the annuity for which a surviving spouse is eligible under this section shall be reduced to the extent that the total benefits paid under this section and chapter 81 of that title for any year would exceed the current salary for that year of the office of the judge or magistrate judge of the Tax Court.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="idFA7C0FDF41BD493FB36F7E8A550BEC91"><enum>303.</enum><header>Coordination of retirement and survivor annuity with the Federal Employees Retirement System</header> <subsection id="idB1F7551E186C4D1BA2451C2E31A048DA"><enum>(a)</enum><header>Retirement</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7447">Section 7447</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id705D5C966BE6481D9EC022CE253689CC"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>section 8331(8)</quote> in subsection (g)(2)(C) and inserting <quote>sections 8331(8) and 8401(19)</quote>; and</text> </paragraph><paragraph id="id4D46D08E28BE4ACFABA249A170047BD7"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>Civil Service Commission</quote> both places it appears in subsection (i)(2) and inserting <quote>Office of Personnel Management</quote>.</text> </paragraph></subsection><subsection id="idA24A474D10D64E32AD6D91642FCCA6E5"><enum>(b)</enum><header>Annuities to surviving spouses and dependent children</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id751464BF3F9A4EADAD972218367AFBD7"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>section 8332</quote> in subsection (d) and inserting <quote>sections 8332 and 8411</quote>; and</text> </paragraph><paragraph id="id60FB67F24FC0496A8F3BE42DFE010020"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>section 8332</quote> in subsection (n) and inserting <quote>sections 8332 and 8411</quote>.</text> </paragraph></subsection></section><section id="IDc7595d55233949f19d1ce8937d35ac21"><enum>304.</enum><header>Limit on teaching compensation of retired judges</header> <subsection id="ID026eea125d684fc780b9f02beae98951"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7447">Section 7447</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="id419CC2F2224048E79A20F9D316BB0B79" style="OLC"> <subsection id="IDcf6e65cd926b4cbbb350ab6da0f3fd4c"><enum>(k)</enum><header>Teaching compensation of retired judges</header><text>For purposes of the limitation under <external-xref legal-doc="usc-act" parsable-cite="usc-act/Ethics in Government Act of 1978 /501">section 501(a)</external-xref> of the Ethics in Government Act of 1978 (5 U.S.C. App.), any compensation for teaching approved under section 502(a)(5) of such Act shall not be treated as outside earned income when received by a judge of the United States Tax Court who has retired under subsection (b) for teaching performed during any calendar year for which such a judge has met the requirements of subsection (c), as certified by the chief judge.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDc147189588984b8ab8ed8d014420f022"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to any individual serving as a retired judge of the United States Tax Court on or after the date of the enactment of this Act.</text> </subsection></section><section id="IDcdf5b4eb1df449e9b416bc400d656be5"><enum>305.</enum><header>General provisions relating to magistrate judges of the Tax Court</header> <subsection id="IDdca12856b930454e8b383fb66964fcf7"><enum>(a)</enum><header>Title of special trial judge changed to magistrate judge of the Tax Court</header><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/7443A">section 7443A</external-xref> of the Internal Revenue Code of 1986 is amended by striking “<header-in-text level="section" style="OLC">Special trial judges</header-in-text>” and inserting <quote><header-in-text level="section" style="OLC">Magistrate judges of the Tax Court</header-in-text></quote>.</text> </subsection><subsection id="IDc2e53d9d5d124da6a3e7acbedc0449a1"><enum>(b)</enum><header>Appointment, tenure, and removal</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/7443A">section 7443A</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id6276686162034272AAFD2B74D566FEE4" style="OLC"> <subsection id="IDe73bae8fd5304de0b6dc6b1cfb3d9df6"><enum>(a)</enum><header>Appointment, tenure, and removal</header> <paragraph id="ID686927d832cd4be59fcbf99a966b85fd"><enum>(1)</enum><header>Appointment</header><text>The chief judge may, from time to time, appoint and reappoint magistrate judges of the Tax Court for a term of 8 years. The magistrate judges of the Tax Court shall proceed under such rules as may be promulgated by the Tax Court.</text> </paragraph><paragraph id="IDcfe454d3afd04ff8ba43bbe8acf40125"><enum>(2)</enum><header>Removal</header> <subparagraph id="ID39177acd204048418c67f8c5e820c708"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), removal of a magistrate judge of the Tax Court during the term for which such magistrate judge is appointed shall be only for incompetency, misconduct, neglect of duty, or physical or mental disability. Removal shall not occur unless a majority of all the judges of the Tax Court concur in the order of removal. Before any order of removal shall be entered, a full specification of the charges shall be furnished to the magistrate judge of the Tax Court, and such magistrate judge shall be accorded by the judges of the Tax Court an opportunity to be heard on the charges.</text> </subparagraph><subparagraph id="ID0f9db145e6be47159eb4e318d529af94"><enum>(B)</enum><header>Termination of office</header><text>The office of a magistrate judge of the Tax Court shall be terminated if the judges of the Tax Court determine that the services performed by such magistrate judge of the Tax Court are no longer needed.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="ID32015f045c1141f7a5b33aeeb3571177"><enum>(c)</enum><header>Salary</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/7443A">section 7443A</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id9DD8500A3A8A4D94BC65C2276FB16850" style="OLC"> <subsection id="ID00e533858e0443668e7a53a8e355ac9c"><enum>(d)</enum><header>Salary</header><text>Each magistrate judge of the Tax Court shall receive salary—</text> <paragraph id="idB42811D6B71B434F85FD6D4052331EA3"><enum>(1)</enum><text>at a rate equal to 92 percent of the rate for judges of the Tax Court, and</text> </paragraph><paragraph id="id925FB87E49B54C06B6C07A2C74539871"><enum>(2)</enum><text>in the same installments as such judges.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="ID1195ac3cda0646b4a0c2d021b816c3b9"><enum>(d)</enum><header>Exemption from Federal leave provisions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7443A">Section 7443A</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="id204CAF06780E43E490AB1929D13E56DE" style="OLC"> <subsection id="ID8a327bd9864b4ec1b1b764901f30c198"><enum>(f)</enum><header>Exemption from Federal leave provisions</header> <paragraph id="ID51e8eaef21ae421b9ebdd96a2faf2e34"><enum>(1)</enum><header>In general</header><text>A magistrate judge of the Tax Court shall be exempt from the provisions of subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/63">chapter 63</external-xref> of title 5, United States Code.</text> </paragraph><paragraph id="ID5f6377fb6e40443cbe1c636d0b33cbc2"><enum>(2)</enum><header>Treatment of unused leave</header> <subparagraph id="ID0e6bfcfeb3eb46d9a0951ae23bb64dfe"><enum>(A)</enum><header>After service as magistrate judge of the Tax Court</header><text>If an individual who is exempted under paragraph (1) from the subchapter referred to in such paragraph was previously subject to such subchapter and, without a break in service, again becomes subject to such subchapter on completion of the individual’s service as a magistrate judge of the Tax Court, the unused annual leave and sick leave standing to the individual’s credit at the time such individual became a magistrate judge of the Tax Court is deemed to have remained to the individual’s credit.</text> </subparagraph><subparagraph id="ID5567089c59264dc99f35cfc788ab1d30"><enum>(B)</enum><header>Computation of annuity</header><text>In computing an annuity under section 8339 or 8415 of title 5, United States Code, the total service of an individual specified in subparagraph (A) who retires on an immediate annuity or dies leaving a survivor or survivors entitled to an annuity includes, without regard to the limitations imposed by subsection (f) of section 8339 of such title 5, the days of unused sick leave standing to the individual’s credit at the time such individual became a magistrate judge of the Tax Court, except that such days will not be counted in determining average pay or annuity eligibility.</text> </subparagraph><subparagraph id="ID27f5758378ab4f7c956233061ffd90fc"><enum>(C)</enum><header>Lump sum payment</header><text>Any accumulated and current accrued annual leave or vacation balances credited to a magistrate judge of the Tax Court as of the date of the enactment of this subsection shall be paid in a lump sum at the time of separation from service pursuant to the provisions and restrictions set forth in section 5551 of such title 5 and related provisions referred to in such section.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="ID880b0d1ff4404444bfe63e44c4d2b9f8"><enum>(e)</enum><header>Contempt authority</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7443A">Section 7443A</external-xref> of the Internal Revenue Code of 1986, as amended by this section, is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id7CAD8A59186745418B8C53144CEBC105" style="OLC"> <subsection id="ID7855670b898c4aa09a842ce49a0484f4"><enum>(g)</enum><header>Incidental powers</header><text>A magistrate judge of the Tax Court appointed under this section shall have the power to punish for contempt of the authority of the Tax Court as provided in section 7456(c), except the sentence imposed by such a magistrate judge of the Tax Court for any contempt shall not exceed the penalties for a Class C misdemeanor as set forth in sections 3571(b)(6) and 3581(b)(8) of title 18, United States Code. This subsection shall not be construed to limit the authority of a magistrate judge of the Tax Court to order sanctions under any other statute or any rule of the Tax Court prescribed pursuant to section 7453.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDffa593e7d79945b3b6693902b510136f"><enum>(f)</enum><header>Conforming amendments</header> <paragraph id="ID6afabb1496b44a6ab729748dae18a625"><enum>(1)</enum><text>The heading of subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/7443A">section 7443A</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote><header-in-text level="subsection" style="OLC">Special trial judges</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Magistrate judges of the Tax Court</header-in-text></quote>.</text> </paragraph><paragraph id="ID003d0902df9240558fb3ee5888a5d40e"><enum>(2)</enum><text>Subsection (b) of section 7443A of such Code is amended by striking <quote>special trial judges of the court</quote> and inserting <quote>magistrate judges of the Tax Court</quote>.</text> </paragraph><paragraph id="ID72982e7abefd49129d49076780466d53"><enum>(3)</enum><text>Subsection (c) of section 7443A of such Code is amended by striking <quote>special trial judge</quote> and inserting <quote>magistrate judge of the Tax Court</quote>.</text> </paragraph><paragraph id="ID2b94a596c0604932b8219573d2bd5351"><enum>(4)</enum><text>Subsection (e) of section 7443A of such Code is amended by striking <quote>special trial judges</quote> and inserting <quote>magistrate judges of the Tax Court</quote>.</text> </paragraph><paragraph id="ID2ec4fdd150fc4a3281cffbec783481ce"><enum>(5)</enum><text>The item relating to section 7443A in the table of sections for part I of subchapter C of chapter 76 of such Code is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id5E1764533BCD49E0A3D30AC113DD8B2B" style="OLC"><toc><toc-entry bold="off" level="section">Sec. 7443A. Magistrate judges of the Tax Court.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="ID7d3c48f519fb4cfd85934e98875da948"><enum>(6)</enum><text>The heading of section 7448 of such Code is amended by striking <quote><header-in-text level="section" style="OLC">Special trial judges</header-in-text></quote>and inserting <quote><header-in-text level="section" style="OLC">Magistrate judges of the Tax Court</header-in-text></quote>.</text> </paragraph><paragraph id="ID44148fb3df8a473fb1beff23612d713f"><enum>(7)</enum><text>Section 7448 of such Code is amended—</text> <subparagraph id="idA10569A6CB904CEA8A891FFAA9CFA877"><enum>(A)</enum><text>by striking <quote>special trial judge's</quote> each place it appears in subsections (a)(6), (c)(1), (d), and (m)(1) and inserting <quote>magistrate judge of the Tax Court's</quote>; and</text> </subparagraph><subparagraph id="id552E7F1D92EF41CA87707152379C806A"><enum>(B)</enum><text>by striking <quote>special trial judge</quote> each place it appears other than in subsection (n) and inserting <quote>magistrate judge of the Tax Court</quote>.</text> </subparagraph></paragraph><paragraph id="IDdd3837605a31451797b493625b9d918f"><enum>(8)</enum><text>Subsection (n) of section 7448 of such Code is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idE7165F11770D4333A02C18C8C5683512" style="OLC"> <subsection id="id63E1395BC67940F5B21019BC255688C8"><enum>(n)</enum><header>Includible service</header><text>Subject to the provisions of subsection (d), the years of service of a judge or magistrate judge of the Tax Court which are allowable as the basis for calculating the amount of the annuity of such judge or magistrate judge's surviving spouse shall include the judge or magistrate judge's years of service—</text> <paragraph id="id1DB1DA86E876437EAC6B9E67BA17B09D"><enum>(1)</enum><text>as a judge or magistrate judge of the Tax Court, a special trial judge of the Tax Court, or a judge of the Tax Court of the United States,</text> </paragraph><paragraph id="id95820C4BA2054E8393AA44691DC233DD"><enum>(2)</enum><text>pursuant to any appointment under section 7443A,</text> </paragraph><paragraph id="id83C3AC6D1D98473CB5798B992AE7D7C2"><enum>(3)</enum><text>as a Senator, Representative, Delegate, or Resident Commissioner in Congress,</text> </paragraph><paragraph id="idC75D5EBA5CC244CAB17917250F16D75B"><enum>(4)</enum><text>as a member of the Armed Forces of the United States (not including any service for which credit is allowed for purposes of retirement or retired pay under any other provision of law), and</text> </paragraph><paragraph id="id4AA445ED5F60460E9F1C14135922036B"><enum>(5)</enum><text>in any other civilian service within the purview of section 8332 of title 5, United States Code.</text> </paragraph><continuation-text continuation-text-level="subsection">For purposes of paragraph (4), not more than 5 years of service shall be taken into account.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="ID2131265b4c7b47d7880a5e02bb43813e"><enum>(9)</enum><text>The item relating to section 7448 in the table of sections for part I of subchapter C of chapter 76 of such Code is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idE2552E96313143FDA27AF25659FAC9C8" style="OLC"><toc><toc-entry bold="off" level="section">Sec. 7448. Annuities to surviving spouses and dependent children of judges and magistrate judges of the Tax Court.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="IDdb5930d9895c47fbb53c58376c275ab5"><enum>(10)</enum><text>Subsection (a) of section 7456 of such Code is amended—</text> <subparagraph id="IDf92a3390a5ba40ee87f3339ca84be8be"><enum>(A)</enum><text>by striking <quote>special trial judge</quote> each place it appears and inserting <quote>magistrate judge</quote>, and</text> </subparagraph><subparagraph id="ID1f815db83e9b4ed0967a753ec37fb39f"><enum>(B)</enum><text>by striking <quote>(or by the clerk</quote> and inserting <quote>of the Tax Court (or by the clerk</quote>.</text> </subparagraph></paragraph><paragraph id="id85401C0D2B334F9293DDDC0735DDFA37"><enum>(11)</enum><text>Subsection (a) of section 7466 of such Code is amended by striking <quote>special trial judge</quote> and inserting <quote>magistrate judge</quote>.</text> </paragraph><paragraph id="idC86F219A2E084D1EA32718BDA4443352"><enum>(12)</enum><text>Section 7470A of such Code is amended by striking <quote>special trial judges</quote> both places it appears in subsections (a) and (b) and inserting <quote>magistrate judges</quote>.</text> </paragraph><paragraph id="ID182b98bbd52742ffba3deee7c1da165b"><enum>(13)</enum><text>Subparagraph (A) of section 7471(a)(2) of such Code is amended by striking <quote>special trial judges</quote> and inserting <quote>magistrate judges</quote>.</text> </paragraph><paragraph id="IDf8a2dd3b1455431d91dbef6416551477"><enum>(14)</enum><text>Subsection (c) of section 7471 of such Code is amended—</text> <subparagraph id="ID8dd302831cea410cad9e2d8503f6c5d5"><enum>(A)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">Special trial judges</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">Magistrate judges of the Tax Court</header-in-text></quote>; and</text> </subparagraph><subparagraph id="IDa1cd3047026649eb99d51313857ba7c1"><enum>(B)</enum><text>by striking <quote>special trial judges</quote> and inserting <quote>magistrate judges</quote>.</text> </subparagraph></paragraph></subsection><subsection id="ID40a3d434ae4241bdb8648be2e5fb6732"><enum>(g)</enum><header>Effective date</header> <paragraph id="ID7e686868c56345bcb91ea0dab29a2231"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to individuals serving as special trial judges of the United States Tax Court on or after the day before the date of enactment of this Act.</text> </paragraph><paragraph commented="no" id="IDadb0344aa4614b8fa889336b39a03738"><enum>(2)</enum><header>Appointment savings provision</header><text>Any individual serving as a special trial judge of the United States Tax Court as of the day before the date of the enactment of this Act shall be considered to have been appointed as a magistrate judge of the Tax Court under <external-xref legal-doc="usc" parsable-cite="usc/26/7443A">section 7443A</external-xref> of the Internal Revenue Code of 1986 on such date of enactment, and service as a special trial judge of the Tax Court before such date of enactment shall be considered to be service as a magistrate judge of the Tax Court for purposes of any provision of law relating to length of service.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id650da6a0f8a14bbeafbed0621a8dae41" section-type="subsequent-section"><enum>306.</enum><header display-inline="yes-display-inline">Life insurance for magistrate judges of the tax court age 65 or older</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7472">Section 7472</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>its judges</quote> in the second sentence and inserting <quote>the judges and magistrate judges of the Tax Court</quote>.</text> </section><section id="ID244f34b874cc4f5f9551942d7dc273e2"><enum>307.</enum><header>Retirement and annuity program</header> <subsection id="IDcd3f3e9752dd4d6eafef9dd9a6138021"><enum>(a)</enum><header>Retirement and annuity program</header><text>Part I of subchapter C of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">chapter 76</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 7443A the following new section:</text> <quoted-block display-inline="no-display-inline" id="id34DB905992A2482CBF47D039ED46C953" style="OLC"> <section id="IDf47621419c134578b3e1b1e8bcaa66ee"><enum>7443B.</enum><header>Retirement for magistrate judges of the Tax Court</header> <subsection id="ID9d2ad3ae21fd4f7f857c3df6d8d32b6a"><enum>(a)</enum><header>Retirement</header> <paragraph id="ID9045c5962db4463e8f61e8acfb6228a8"><enum>(1)</enum><header>In general</header><text>Each magistrate judge of the Tax Court who makes an election under this section shall receive an annuity at the same rate and in the same manner as magistrate judges of the district courts of the United States pursuant to section 377 of title 28, United States Code.</text> </paragraph><paragraph id="ID85ae65c7b28449ffa1cf5891e12a1cc8"><enum>(2)</enum><header>Rules of application</header><text>For purposes of subsection (a), section 377 of title 28, United States Code, shall be applied with the following modifications:</text> <subparagraph id="ID3d1b410c71544164b0a4a9a63bb9c1ce"><enum>(A)</enum><text>By substituting—</text> <clause id="ID5018a9c4b78b4a5586379aa78b7a8c2f"><enum>(i)</enum><text><quote>magistrate judge of the Tax Court</quote> for <quote>judicial official</quote>, <quote>judicial officer</quote>, and <quote>magistrate judge</quote> each place such terms appear,</text> </clause><clause id="IDebebe0aaae40487eb2daa4a900b4649e"><enum>(ii)</enum><text><quote>magistrate judge of the Tax Court’s</quote> for <quote>magistrate judge's</quote> each place it appears,</text> </clause><clause id="ID54019edc59074eb0ae5427b16e27638b"><enum>(iii)</enum><text><quote>chief judge of the Tax Court</quote> for <quote>Administrative Office of the United States Courts</quote>, <quote>Director of the Administrative Office of the United States Courts</quote>, <quote>Director</quote>, and <quote>chief judge of the district court</quote> each place such terms appear,</text> </clause><clause id="IDb9cdc670a0494611b4b912864a82fcc9"><enum>(iv)</enum><text><quote>Tax Court Judicial Officers’ Retirement Fund</quote> for <quote>Judicial Officers’ Retirement Fund</quote> each place it appears,</text> </clause><clause id="ID8a59822b02e94039a9a84aeaab38b823"><enum>(v)</enum><text><quote>under <external-xref legal-doc="usc" parsable-cite="usc/26/7443A">section 7443A</external-xref> of the Internal Revenue Code of 1986</quote> for <quote>under section 631 of this title</quote> in subsection (h)(2),</text> </clause><clause id="ID51790f9217ad481e88763dad59bb7abd"><enum>(vi)</enum><text><quote>under <external-xref legal-doc="usc" parsable-cite="usc/26/7443C">section 7443C</external-xref> of the Internal Revenue Code of 1986</quote> for <quote>under section 155(b), 375, or 636(h) of this title</quote> each place it appears in paragraphs (2) and (3) of subsection (m), and</text> </clause><clause id="ID5467cc484cd84975bd6ea1f2e106f48f"><enum>(vii)</enum><text><quote>from the date of appointment, for those individuals appointed pursuant to <external-xref legal-doc="usc" parsable-cite="usc/26/7443A">section 7443A</external-xref> of the Internal Revenue Code of 1986 prior to, and in active service on, the date of enactment of the <short-title>Retirement Enhancement and Savings Act of 2018</short-title></quote> for <quote>on or after October 1, 1979</quote> in subsection (h).</text> </clause></subparagraph><subparagraph id="IDb927d65b6dc54c7fac46ed13e6b18a95"><enum>(B)</enum><text>By disregarding subsection (m)(2) and subsection (o).</text> </subparagraph></paragraph></subsection><subsection id="IDfe02a1fdd55941dabc81ad5546df8cba"><enum>(b)</enum><header>1-Year forfeiture for failure To perform judicial duties</header><text>Subject to subparagraph (B) of section 377(m)(1) of title 28, United States Code, any magistrate judge of the Tax Court who retires under this section and who fails to perform judicial duties required of such individual by section 7443C shall forfeit all rights to an annuity under this section for a 1-year period which begins on the 1st day on which such individual fails to perform such duties.</text> </subsection><subsection id="ID7eae315f6f994efbbd940bfc30f329c9"><enum>(c)</enum><header>Tax Court Judicial Officers’ Retirement Fund</header> <paragraph id="ID901bf12467274c3daba3687bb9d0128f"><enum>(1)</enum><header>Establishment</header><text>There is established in the Treasury of the United States a fund which shall be known as the <quote>Tax Court Judicial Officers' Retirement Fund</quote>. The Fund is appropriated for the payment of annuities, refunds, and other payments under this section.</text> </paragraph><paragraph id="IDf4bdc6f1dc2443168e8c22c3ec93e660"><enum>(2)</enum><header>Investment of Fund</header><text>The Secretary shall invest, in interest-bearing securities of the United States, such currently available portions of the Tax Court Judicial Officers’ Retirement Fund as are not immediately required for payments from the Fund. The income derived from these investments constitutes a part of the Fund.</text> </paragraph><paragraph id="ID29cc6fb968d94f03969e0279ddfed1f5"><enum>(3)</enum><header>Unfunded liability</header> <subparagraph id="ID66a64210d6064b3fa47ac5326207f756"><enum>(A)</enum><header>In general</header><text>Not later than the close of each fiscal year, there shall be deposited in the Tax Court Judicial Officers’ Retirement Fund amounts required to reduce to zero the unfunded liability, if any, of such Fund.</text> </subparagraph><subparagraph id="IDb2ba1dbdb1004e6096b57a61f6dcfec5"><enum>(B)</enum><header>Unfunded liability</header><text>For purposes of subparagraph (A), the term <term>unfunded liability</term> means the amount estimated by the Secretary to be equal to the excess (as of the close of the fiscal year involved) of—</text> <clause id="ID2ab53603dbf94f1ebd78d4862356790b"><enum>(i)</enum><text>the present value of all benefits payable from the Tax Court Judicial Officers’ Retirement Fund, over</text> </clause><clause id="ID90d8b70e1448485bad13b6927a885674"><enum>(ii)</enum><text>the sum of—</text> <subclause id="ID2ec0643f184748e19dedc27c538cf071"><enum>(I)</enum><text>the present value of future deductions to be withheld under this section from the basic pay of magistrate judges of the Tax Court, plus</text> </subclause><subclause id="ID926ad61c8dc44bf0af90322e9ebbeb02"><enum>(II)</enum><text>the balance in such Fund as of the close of such fiscal year.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="ID74c0638b86344f61ad6c9dff7e464d0d"><enum>(d)</enum><header>Participation in Thrift Savings Plan</header> <paragraph id="ID563c0b29442c46de9149e0cdf67c70da"><enum>(1)</enum><header>Election to contribute</header><text>A magistrate judge of the Tax Court may elect to contribute out of such individual’s basic pay to the Thrift Savings Fund established by section 8437 of title 5, United States Code.</text> </paragraph><paragraph id="ID0792873c41a14b7ea034658d0f92e4f5"><enum>(2)</enum><header>Applicability of title 5 provisions</header><text>Except as otherwise provided in this subsection, the provisions of subchapters III and VII of chapter 84 of such title 5 shall apply with respect to a magistrate judge of the Tax Court who makes an election under paragraph (1).</text> </paragraph><paragraph id="IDa1a1a585c4ac43d88a2e71aef4b39354"><enum>(3)</enum><header>Special rules</header> <subparagraph id="IDf7997b5a833942fcac78deef9fc5745a"><enum>(A)</enum><header>Amount contributed</header><text>The amount contributed by a magistrate judge of the Tax Court to the Thrift Savings Plan in any pay period shall not exceed the maximum percentage of such magistrate judge’s basic pay for such period as allowable under section 8440f of such title 5.</text> </subparagraph><subparagraph id="ID0970de1ec30c478d819a2349fc578d02"><enum>(B)</enum><header>Contributions for benefit of magistrate judge of the Tax Court</header><text>No contributions under section 8432(c) of such title 5 shall be made for the benefit of a magistrate judge of the Tax Court who has filed an election to receive an annuity under this section.</text> </subparagraph><subparagraph id="IDecf75e85958a4a429333351cdd664b5a"><enum>(C)</enum><header>Applicability of rules relating to annuity of a child</header><text>Section 8433(b) of such title 5 applies with respect to a magistrate judge of the Tax Court who makes an election under paragraph (1) and who—</text> <clause id="ID3d33510732494e7b9282e7390d3ec470"><enum>(i)</enum><text>retires entitled to an immediate annuity under this section (including a disability annuity under this section),</text> </clause><clause id="id6F3956708F9F4E7A8F6CAFF4AB2FC2A3"><enum>(ii)</enum><text>retires before attaining age 65 but is entitled, upon attaining age 65, to an annuity under this section, or</text> </clause><clause id="idABF4ADCBEC4249489E385A47CAB751B4"><enum>(iii)</enum><text>retires before becoming entitled to an immediate annuity, or an annuity upon attaining age 65, under this section.</text> </clause></subparagraph><subparagraph id="IDfd4c5c283452478c989f379968d5265f"><enum>(D)</enum><header>Retirement as separation from service</header><text>With respect to a magistrate judge of the Tax Court to whom this subsection applies, retirement under this section is a separation from service for purposes of subchapters III and VII of chapter 84 of such title 5.</text> </subparagraph></paragraph><paragraph id="ID1ba24dc932ea4ff89e53e229bded0811"><enum>(4)</enum><header>Definitions</header><text>For purposes of this subsection, the terms <term>retirement</term> and <term>retire</term> include removal from office under section 7443A(a)(2) on the sole ground of mental or physical disability.</text> </paragraph><paragraph id="IDcea3bdf4c2ec481e9047fc38245456bf"><enum>(5)</enum><header>Offset</header><text>In the case of a magistrate judge of the Tax Court who receives a distribution from the Thrift Savings Plan and who later receives an annuity under this section, the annuity shall be offset by an amount equal to the amount which represents the Government’s contribution to the individual’s Thrift Savings Account during years of service as a full-time judicial officer under the Federal Employees Retirement System, without regard to earnings attributable to such amount. Where such an offset would exceed 50 percent of the annuity to be received in the first year, the offset may be divided equally over the first 2 years in which the individual receives the annuity.</text> </paragraph><paragraph id="ID722f81840ecd432aa9a5a3a991643698"><enum>(6)</enum><header>Exception</header><text>Notwithstanding clauses (i) and (ii) of paragraph (3)(C), if any magistrate judge of the Tax Court retires under circumstances making such magistrate judge of the Tax Court eligible to make an election under subsection (b) of section 8433 of such title 5, and the nonforfeitable account balance of such magistrate judge of the Tax Court is less than an amount which the Executive Director of the Office of Personnel Management prescribes by regulation, the Executive Director shall pay the nonforfeitable account balance to the participant in a single payment.</text> </paragraph></subsection><subsection id="IDac8c8c4e728f4adcb4b7e4d7e9e5a738"><enum>(e)</enum><header>Coordination with title 5</header><text>A magistrate judge of the Tax Court who elects to receive an annuity under this section—</text> <paragraph id="ID76b1ee98a2694d6e883b7a59047f1b86"><enum>(1)</enum><text>shall not be subject to deductions and contributions otherwise required by section 8334(a) of title 5 United States Code,</text> </paragraph><paragraph id="IDdc99141446fb441d983b795e511cad82"><enum>(2)</enum><text>shall be excluded from the application of chapter 84 (other than subchapters III and VII) of such title 5, and</text> </paragraph><paragraph id="ID8c7086ad9f554e0caafdc30412d22333"><enum>(3)</enum><text>is entitled to a lump-sum credit under section 8342(a) or 8424 of such title 5, as the case may be.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="ID7aa0174809a24e2f9521c9e0414fa2a2"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="IDf3384961bd1e43e3b2ffe69d506e819b"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/3121">Section 3121(b)(5)(E)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>or magistrate judge</quote> before <quote>of the United States Tax Court</quote>.</text> </paragraph><paragraph id="ID58eaca67d2c14ad2b495c390a1ece657"><enum>(2)</enum><text>Section 210(a)(5)(E) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/410">42 U.S.C. 410(a)(5)(E)</external-xref>) is amended by inserting <quote>or a magistrate judge of the Tax Court who files an election under <external-xref legal-doc="usc" parsable-cite="usc/26/7443B">section 7443B(a)</external-xref> of the Internal Revenue Code of 1986</quote> after <quote>of the United States Tax Court</quote>.</text> </paragraph><paragraph id="IDa57eb4d90e1043e8918c16d253d92be5"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448(b)(2)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id21A6F585EEE84CE6858AFA8487CC3303" style="OLC"> <paragraph id="IDe3320ac74a014055a2d7a84da40416f1"><enum>(2)</enum><header>Magistrate judges of the Tax Court</header><text>Any magistrate judge of the Tax Court may by written election filed with the chief judge bring himself or herself within the purview of this section. Such election shall be filed while such individual is a magistrate judge of the Tax Court.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="ID30b4267a9e3b4ab591fc1060b76a71e2"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for part I of subchapter C of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">chapter 76</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 7443A the following new item:</text> <quoted-block id="ide963b21c-e78c-4d0f-820c-0fe5ba07b8ca" style="OLC"><toc><toc-entry idref="IDf47621419c134578b3e1b1e8bcaa66ee" level="section">Sec. 7443B. Retirement for magistrate judges of the Tax Court.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="ID63eefc9e0dd0426d8be63443dd99fa8a"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section><section id="ID563a9b4895b248a3a4524bc4a685e81e"><enum>308.</enum><header>Provisions for recall</header> <subsection id="ID5b82d1ac2f524fffb24c3550e1a87741"><enum>(a)</enum><header>In general</header><text>Part I of subchapter C of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">chapter 76</external-xref> of the Internal Revenue Code of 1986, as amended by section 307, is amended by inserting after section 7443B the following new section:</text> <quoted-block display-inline="no-display-inline" id="idD556BBEBE29D49E499C65DDF1486CFFD" style="OLC"> <section id="ID97e7e3d1f4884301985f01e9c048a9c0"><enum>7443C.</enum><header>Recall of magistrate judges of the Tax Court</header> <subsection id="ID7ef81c1d1b664425a0796dab9f4bdec2"><enum>(a)</enum><header>Recalling of retired magistrate judges of the Tax Court</header><text>Any individual who has retired pursuant to section 7443B or the applicable provisions of title 5 or 28, United States Code, upon reaching the age and service requirements established under such titles 5 and 28, may be called upon by the chief judge to perform such judicial duties with the Tax Court as may be requested of such individual for a period or periods specified by the chief judge, except that in the case of any such individual—</text> <paragraph id="ID4737d5f17beb469bb3f3851d95ceacde"><enum>(1)</enum><text>the aggregate of such periods in any 1 calendar year shall not (without the consent of such individual) exceed 90 calendar days, and</text> </paragraph><paragraph id="ID609797f924dc4ec7988f3e1b9460b985"><enum>(2)</enum><text>such individual shall be relieved of performing such duties during any period in which illness or disability precludes the performance of such duties.</text> </paragraph><continuation-text continuation-text-level="subsection">Any act, or failure to act, by an individual performing judicial duties pursuant to this subsection shall have the same force and effect as if it were the act (or failure to act) of a magistrate judge of the Tax Court.</continuation-text></subsection><subsection id="ID67b7b865acda45abb1c082a98ab4e17d"><enum>(b)</enum><header>Compensation</header><text>For the year in which a period of recall occurs, the magistrate judge of the Tax Court shall receive, in addition to the annuity provided under the provisions of section 7443B, an amount equal to the difference between that annuity and the current salary of the office to which the magistrate judge of the Tax Court is recalled (and allowances for travel and other expenses of the magistrate judge of the Tax Court). The annuity for years after the year in which a period of recall occurs of the magistrate judge of the Tax Court who completes such a period of service, who is not recalled in a subsequent year, and who retired under section 7443B, shall be equal to the salary in effect at the end of the year in which the period of recall occurred for the office from which such magistrate judge of the Tax Court retired.</text> </subsection><subsection id="ID60ab9cb9fd804e1796a5affdaf1e5538"><enum>(c)</enum><header>Rulemaking authority</header><text>The provisions of this section shall be implemented under such rules and regulations as may be promulgated by the Tax Court.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDa5c9d745ca334dd5a2ceefa53612c764"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for part I of subchapter C of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">chapter 76</external-xref> of the Internal Revenue Code of 1986, as amended by section 307, is amended by inserting after the item relating to section 7443B the following new item:</text> <quoted-block id="id457f208a-ac22-407e-a75b-1b217c1dc2b9" style="OLC"><toc><toc-entry idref="ID97e7e3d1f4884301985f01e9c048a9c0" level="section">Sec. 7443C. Recall of magistrate judges of the Tax Court.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><enum>IV</enum><header>Other benefits</header> <section commented="no" display-inline="no-display-inline" id="H77CA04E3B5DB4B49B23C0F1CBE8361D8" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Benefits provided to volunteer firefighters and emergency medical responders</header> <subsection commented="no" display-inline="no-display-inline" id="HC8609D69789C449E859634129710F98B"><enum>(a)</enum><header display-inline="yes-display-inline">Increase in dollar limitation on qualified payments</header><text display-inline="yes-display-inline">Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/139B">section 139B(c)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$30</quote> and inserting <quote>$50</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4B8EB9D496594DE9A9C245CC423AFF23"><enum>(b)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/139B">section 139B</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>beginning after December 31, 2010.</quote> and inserting “beginning—</text> <quoted-block display-inline="no-display-inline" id="id5D932B9AD80848B1B6DEB110AA08D57A" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="id10C77F950BA64D6682A698DE686ABEF6"><enum>(1)</enum><text display-inline="yes-display-inline">after December 31, 2010, and before January 1, 2019, or</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id39EF8DCC41A948138F3B460AD6F82C7C"><enum>(2)</enum><text display-inline="yes-display-inline">after December 31, 2019.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H7C5C3E5B5BF84520A00804D8F228DDF0"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2018.</text> </subsection></section><enum>V</enum><header>Revenue provisions</header> <section commented="no" id="id0BD5733B36A74AEA866E5C6C6F03F89C"><enum>501.</enum><header>Modifications of required distribution rules for pension plans</header> <subsection commented="no" id="id06C24EADC9E743B3A1DCE0C703A20B14"><enum>(a)</enum><header>Modification of rules where employee dies before entire distribution</header> <paragraph commented="no" id="id54DD1B3665D741D594E7D579792CAD0E"><enum>(1)</enum><header>In general</header><text><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="idC16FD02096D942FEB3E7FC72B8E9FE1F" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="P1B6933CB1D094AB89F4814DAF740237A"><enum>(H)</enum><header>Special rules for certain defined contribution plans</header> <clause commented="no" display-inline="no-display-inline" id="id8CDF26D4566B41E0B45F6EE21F5AD2A3"><enum>(i)</enum><header>In general</header><text>In the case of distributions from a defined contribution plan, a trust forming part of such plan shall not constitute a qualified trust under this section unless the plan provides that, if—</text> <subclause commented="no" id="idC0E3B4EFE4DE4DDCB9E2807A76334E77"><enum>(I)</enum><text>an employee dies before the distribution of the employee's interest (whether or not such distribution has begun in accordance with subparagraph (A)), and</text> </subclause><subclause commented="no" id="idFD01CB020FC44479A5727D36FB977262"><enum>(II)</enum><text>the aggregate account balances to the credit of the employee under all defined contribution plans, determined as of the date of the employee's death, exceeds $450,000,</text> </subclause><continuation-text continuation-text-level="clause">so much of the entire interest of the employee as exceeds the dollar amount in subclause (II) will be distributed within 5 years after the death of such employee.</continuation-text></clause><clause id="idFE0F99B00870451483243E2FF4ACA29D"><enum>(ii)</enum><header>Allocation of limitation</header><text>If an employee has an account under more than 1 defined contribution plan, the $450,000 amount under clause (i)(II) shall be allocated among all such plans, as provided in regulations prescribed by the Secretary, for purposes of applying clause (i).</text> </clause><clause id="id648FFF03C44D4BCDBC9F6697DB2F5811"><enum>(iii)</enum><header>Treatment of remaining amount</header><text>The portion of the employee's interest distributed under clause (i) shall not be taken into account for purposes of determining the rapidity or the method of distribution of any portion of the interest of the employee to which clause (i) does not apply.</text> </clause><clause id="id0BF781A361B94C019513BB6029805FAD"><enum>(iv)</enum><header>Multiple beneficiaries</header><text>In the case of an employee who has more than 1 beneficiary, the amount of the portion required to be distributed under clause (i) which shall be treated as payable to (or for the benefit of) such beneficiary is the amount which bears the same ratio to the total amount of such portion as—</text> <subclause id="id790DE88B1BCE41FB98C321522337A64D"><enum>(I)</enum><text>the portion of the employee's entire interest (determined as of the date of the employee's death) which is payable to (or for the benefit of) such beneficiary, bears to</text> </subclause><subclause id="idA32DDC534A6645DEBC7CE74DF644ACB6"><enum>(II)</enum><text>the amount of the employee's entire interest (so determined).</text> </subclause></clause><clause id="idffec4769d49e4227be3ae050163c3901"><enum>(v)</enum><header>Exception for eligible designated beneficiaries</header><text>If—</text> <subclause id="id47d5b9c9a75845868f86e964261d336d"><enum>(I)</enum><text>any portion of the employee's interest is payable to (or for the benefit of) an eligible designated beneficiary,</text> </subclause><subclause id="id876fffa6aa2f426ca773c7a31ac92353"><enum>(II)</enum><text>such portion will be distributed (in accordance with regulations) over the life of such eligible designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and</text> </subclause><subclause id="id6b3d03e4bbcb4e9689d8fe1af05960da"><enum>(III)</enum><text>such distributions begin not later than 1 year after the date of the employee's death or such later date as the Secretary may by regulations prescribe,</text> </subclause><continuation-text continuation-text-level="clause">for purposes of clause (i), the portion referred to in subclause (I) shall be treated as distributed on the date on which such distributions begin.</continuation-text></clause><clause id="id5f21b07a591a4741be445624042c4c86"><enum>(vi)</enum><header>Special rule for surviving spouse of employee</header><text>If the eligible designated beneficiary is the surviving spouse of the employee—</text> <subclause id="id4dfb18a1f3814a3a97cca5cce6108bfb"><enum>(I)</enum><text>the date on which the distributions are required to begin under clause (v)(III) shall not be earlier than the date on which the employee would have attained age 70<fraction>½</fraction>, and</text> </subclause><subclause id="id6834d8d46d1c4761b1d7f387e1c69202"><enum>(II)</enum><text>if the surviving spouse dies before the distributions to such spouse begin, this subparagraph shall be applied as if the surviving spouse were the employee.</text> </subclause></clause><clause commented="no" id="id8F9AA2CE7A014F92AF6220A3CF793665"><enum>(vii)</enum><header>Rules upon death of eligible designated beneficiary</header><text>If an eligible designated beneficiary dies before the portion of the employee's interest to which clause (i) applies which is payable to (or for the benefit of) such eligible designated beneficiary is entirely distributed, the exception under clause (v) shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within 5 years after the death of such beneficiary.</text> </clause><clause commented="no" id="idBDC5594F86C444E284688EC4D36AED8B"><enum>(viii)</enum><header>Coordination with individual retirement plans</header><text>For purposes of applying the provisions of this subparagraph and subsections (a)(6) and (b)(3) of section 408, individual retirement plans shall be treated as defined contribution plans in determining the aggregate account balances to the credit of the employee under all defined contribution plans and the amount required to be distributed to each beneficiary under such provisions.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="idF2581001917E4FD087156C923C509E16"><enum>(2)</enum><header>Definition of eligible designated beneficiary</header><text>Section 401(a)(9)(E) of such Code is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id66212BCA6B1B4693913AD516248383E5" style="OLC"> <subparagraph commented="no" id="PB62A3A507A3A4AC2895C699553F633BA"><enum>(E)</enum><header>Definitions and rules relating to designated beneficiary</header><text>For purposes of this paragraph—</text> <clause commented="no" id="id88A64A9748CC4266B5388484A16E88E0"><enum>(i)</enum><header>Designated beneficiary</header><text>The term <quote>designated beneficiary</quote> means any individual designated as a beneficiary by the employee.</text> </clause><clause commented="no" id="idE9125140A6B944F8B682181A6A1FD2C2"><enum>(ii)</enum><header>Eligible designated beneficiary</header><text>The term <quote>eligible designated beneficiary</quote> means, with respect to any employee, any designated beneficiary who is—</text> <subclause commented="no" id="id34983EBE879A48DD9B6EA197A9EA1F46"><enum>(I)</enum><text>the surviving spouse of the employee,</text> </subclause><subclause commented="no" id="idFD1C196A65F743D18E8F1C51601E2734"><enum>(II)</enum><text>subject to clause (iii), a child of the employee who has not reached majority (within the meaning of subparagraph (F)),</text> </subclause><subclause commented="no" id="id711A27208BD74FB28CD19E64475030EE"><enum>(III)</enum><text>disabled (within the meaning of section 72(m)(7)),</text> </subclause><subclause commented="no" id="id51E8C798817844FEAFBD61E2694E0025"><enum>(IV)</enum><text>a chronically ill individual (within the meaning of section 7702B(c)(2), except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature), or</text> </subclause><subclause commented="no" id="idFE85562B66CD4EA48E760977B650C9ED"><enum>(V)</enum><text>an individual not described in any of the preceding subclauses who is not more than 10 years younger than the employee.</text> </subclause></clause><clause commented="no" id="id14F0178DC8AF4B79A6FACAD365429DD2"><enum>(iii)</enum><header>Special rule for children</header><text>Subject to subparagraph (F), an individual described in clause (ii)(II) shall cease to be an eligible designated beneficiary as of the date the individual reaches majority and any remainder of the portion of the interest described in subparagraph (H)(v) shall be distributed within 5 years after such date.</text> </clause><clause commented="no" id="id4927E04306F948E58A4A1DCD24DF4CCC"><enum>(iv)</enum><header>Time for determination of eligible designated beneficiary</header><text>The determination of whether a designated beneficiary is an eligible designated beneficiary shall be made as of the date of death of the employee.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="id2BB9085DA45A4A2C8E6BAF036F85C848"><enum>(3)</enum><header>Conforming amendments</header> <subparagraph commented="no" id="idCF7B710C24A24A0CA16B591E248DBA3A"><enum>(A)</enum><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(9)(B)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>A trust</quote> and inserting <quote>Except as provided in subparagraph (H), a trust</quote>.</text> </subparagraph><subparagraph id="id937CB1250330425185A454714B03CCF5"><enum>(B)</enum><text>Section 402(c)(11)(A)(iii) of such Code is amended by striking <quote>section 401(a)(9)(B) (other than clause (iv) thereof)</quote> and inserting <quote>subparagraphs (B) (other than clause (iv) thereof) and (H) (other than clause (vi) thereof) of section 401(a)(9)</quote>.</text> </subparagraph></paragraph><paragraph id="id73E59D921385475BB3E8B1F3D177C853"><enum>(4)</enum><header>Effective dates</header> <subparagraph commented="no" id="idAF7C0E7E9FEC4140B6A4F37AA1C42ECB"><enum>(A)</enum><header>In general</header><text>Except as provided in this paragraph and paragraphs (5) and (6), the amendments made by this subsection shall apply to distributions with respect to employees who die after December 31, 2018.</text> </subparagraph><subparagraph id="idF530723A457E4082B53D1306362ABEAD"><enum>(B)</enum><header>Collective bargaining exception</header><text>In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before the date of enactment of this Act, the amendments made by this subsection shall apply to distributions with respect to employees who die in calendar years beginning after the earlier of—</text> <clause id="idCDA7E93E37CB47808CAE7B79E5E819C6"><enum>(i)</enum><text>the later of—</text> <subclause id="idD34EEE06931C4667AA24633961091E48"><enum>(I)</enum><text>the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof agreed to on or after the date of the enactment of this Act); or</text> </subclause><subclause id="idE48CC6379CFD488E86F8E15FE258A236"><enum>(II)</enum><text>December 31, 2018; or</text> </subclause></clause><clause id="id7D0880B11BCC4A6DB2FFBE27660EBF1E"><enum>(ii)</enum><text>December 31, 2020.</text> </clause><continuation-text continuation-text-level="subparagraph">For purposes of clause (i)(I), any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by this section shall not be treated as a termination of such collective bargaining agreement.</continuation-text></subparagraph><subparagraph id="id49A514F93713479AA3E1318364CA4ACD"><enum>(C)</enum><header>Governmental plans</header><text>In the case of a governmental plan (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(d)</external-xref> of the Internal Revenue Code of 1986), subparagraph (A) shall be applied by substituting <quote>December 31, 2020</quote> for <quote>December 31, 2018</quote>.</text> </subparagraph></paragraph><paragraph commented="no" id="id6E3C5CCF669643C1B31DB8E26825C5FB"><enum>(5)</enum><header>Exception for certain existing annuity contracts</header> <subparagraph commented="no" id="id085CC4A16C77457992870D9B5439D90C"><enum>(A)</enum><header>In general</header><text>The amendments made by this subsection shall not apply to a qualified annuity which is a binding annuity contract in effect on the date of enactment of this Act and at all times thereafter.</text> </subparagraph><subparagraph commented="no" id="id30CC37D6DAF542349B9B2DA04010B60C"><enum>(B)</enum><header>Qualified annuity</header><text>For purposes of this paragraph, the term <term>qualified annuity</term> means, with respect to an employee, an annuity—</text> <clause commented="no" id="idB1FEC26303AA4A699C5DD3DF1C43A755"><enum>(i)</enum><text>which is a commercial annuity (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/3405">section 3405(e)(6)</external-xref> of the Internal Revenue Code of 1986);</text> </clause><clause commented="no" id="id0D446436F21F4B2CAD128363A973BC4B"><enum>(ii)</enum><text>under which the annuity payments are made over the life of the employee or over the joint lives of such employee and a designated beneficiary (or over a period not extending beyond the life expectancy of such employee or the joint life expectancy of such employee and a designated beneficiary) in accordance with the regulations described in section 401(a)(9)(A)(ii) of such Code (as in effect before such amendments) and which meets the other requirements of section 401(a)(9) of such Code (as so in effect) with respect to such payments; and</text> </clause><clause commented="no" id="id859126057C984DB2A2EC108381F7C8CC"><enum>(iii)</enum><text>with respect to which—</text> <subclause commented="no" id="id1A39AF7C503448EFA3971A6ECCF6B7E2"><enum>(I)</enum><text>annuity payments to the employee have begun before the date of enactment of this Act, and the employee has made an irrevocable election before such date as to the method and amount of the annuity payments to the employee or any designated beneficiaries; or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="idE3733C1EDA6A41B9BAD6CB1861F328C4"><enum>(II)</enum><text>if subclause (I) does not apply, the employee has made an irrevocable election before the date of enactment of this Act as to the method and amount of the annuity payments to the employee or any designated beneficiaries.</text> </subclause></clause></subparagraph></paragraph><paragraph id="id2192307088AF4C2BB401A904BDE28F45"><enum>(6)</enum><header>Exception for certain beneficiaries</header> <subparagraph commented="no" id="idCBC887FB6E5E402790BEC9C12355AEED"><enum>(A)</enum><header>In general</header><text>If an employee dies before the effective date, then, in applying the amendments made by this subsection to such employee's designated beneficiary who dies after such date—</text> <clause commented="no" id="idA7C06BDC122742B29F3EED8C97BF68F1"><enum>(i)</enum><text>such amendments shall apply to any beneficiary of such designated beneficiary; and</text> </clause><clause commented="no" id="id6EC4C072491C4082AF6D6EF8CB132441"><enum>(ii)</enum><text>the designated beneficiary shall be treated as an eligible designated beneficiary for purposes of applying <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(9)(H)(iv)</external-xref> of the Internal Revenue Code of 1986 (as in effect after such amendments).</text> </clause></subparagraph><subparagraph commented="no" id="idA8E538FD91794FC1B79DDAD03E71DAFE"><enum>(B)</enum><header>Effective date</header><text>For purposes of this paragraph, the term <term>effective date</term> means the first day of the first calendar year to which the amendments made by this subsection apply to a plan with respect to employees dying on or after such date.</text> </subparagraph></paragraph></subsection><subsection id="id083d7fe26cc74221a5d338cd3b589b07"><enum>(b)</enum><header>Provisions relating to plan amendments</header> <paragraph id="id4fcbeadd2222498e832289aaa0bd587f"><enum>(1)</enum><header>In general</header><text>If this subsection applies to any plan amendment—</text> <subparagraph id="idbe6b7aa8992749b08c4cfe8b79e3dce9"><enum>(A)</enum><text>such plan shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph (2)(B)(i); and</text> </subparagraph><subparagraph id="idb6ebbcb07ee24a7db259a69d856cda41"><enum>(B)</enum><text>except as provided by the Secretary of the Treasury, such plan shall not fail to meet the requirements of <external-xref legal-doc="usc" parsable-cite="usc/26/411">section 411(d)(6)</external-xref> of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 by reason of such amendment.</text> </subparagraph></paragraph><paragraph id="id0d830555aa17445da2b4fd2571458940"><enum>(2)</enum><header>Amendments to which subsection applies</header> <subparagraph id="id6cf25159b6694619bd986a8dac58ac94"><enum>(A)</enum><header>In general</header><text>This subsection shall apply to any amendment to any plan or which is made—</text> <clause id="id693002d970024fbd8a3b064059ffa412"><enum>(i)</enum><text>pursuant to any amendment made by this section or pursuant to any regulation issued by the Secretary of the Treasury under this section or such amendments; and</text> </clause><clause id="id494e4563f7cc436fa47fe2abe45d27a6"><enum>(ii)</enum><text>on or before the last day of the first plan year beginning after December 31, 2020, or such later date as the Secretary of the Treasury may prescribe.</text> </clause><continuation-text continuation-text-level="subparagraph">In the case of a governmental or collectively bargained plan to which subparagraph (B) or (C) of subsection (a)(4) applies, clause (ii) shall be applied by substituting the date which is 2 years after the date otherwise applied under such clause.</continuation-text></subparagraph><subparagraph id="id1c7e27010f3b4ad1b27d03be761eee43"><enum>(B)</enum><header>Conditions</header><text>This subsection shall not apply to any amendment unless—</text> <clause id="id69e5a0a931584f2cbce37835174e39ad"><enum>(i)</enum><text>during the period—</text> <subclause id="id7262031ae5cd44b09b4d75b46663bbee"><enum>(I)</enum><text>beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan amendment not required by such legislative or regulatory amendment, the effective date specified by the plan); and</text> </subclause><subclause id="idcba107bf0be142eba8cfe8221d99d06a"><enum>(II)</enum><text>ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan amendment is adopted),</text> </subclause><continuation-text continuation-text-level="clause">the plan is operated as if such plan amendment were in effect; and</continuation-text></clause><clause commented="no" display-inline="no-display-inline" id="id29fb91aa7c34439d9663b3013926974c"><enum>(ii)</enum><text>such plan amendment applies retroactively for such period.</text> </clause></subparagraph></paragraph></subsection></section><section id="id58D5BB5593AA495B9B791D8EDD3AB37D"><enum>502.</enum><header>Increase in penalty for failure to file</header> <subsection id="idA71FF678548A42FF9A6F2E4966C87637"><enum>(a)</enum><header>In general</header><text>The second sentence of subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/6651">section 6651</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$205</quote> and inserting <quote>$400</quote>.</text> </subsection><subsection id="id4C39A91697AE4DE5B0F57D401B3754FC"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to returns the due date for which (including extensions) is after December 31, 2018.</text> </subsection></section><section id="id7CDE22A4997446BD9DA07077110CE397"><enum>503.</enum><header>Increased penalties for failure to file retirement plan returns</header> <subsection id="id0E92C81B637E4346BDEA36DE7C984B85"><enum>(a)</enum><header>In general</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/6652">section 6652</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id8F6888BEBE604D86887FAFC004477878"><enum>(1)</enum><text>by striking <quote>$25</quote> and inserting <quote>$100</quote>; and</text> </paragraph><paragraph id="id5BB689B0FB7A4F848969B7981CBC5B4C"><enum>(2)</enum><text>by striking <quote>$15,000</quote> and inserting <quote>$50,000</quote>.</text> </paragraph></subsection><subsection id="id0A795349DD71462C910DFB8030467BBA"><enum>(b)</enum><header>Annual registration statement and notification of changes</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/6652">section 6652</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="idFF110A693F804E9FA857CEF6CE281209"><enum>(1)</enum><text>by striking <quote>$1</quote> both places it appears in paragraphs (1) and (2) and inserting <quote>$2</quote>;</text> </paragraph><paragraph id="id8F5E55C425EB469BAC0CB13E1671E49B"><enum>(2)</enum><text>by striking <quote>$5,000</quote> in paragraph (1) and inserting <quote>$10,000</quote>; and</text> </paragraph><paragraph id="id19E1F1F6A95241C6B8423525FA6C6AC3"><enum>(3)</enum><text>by striking <quote>$1,000</quote> in paragraph (2) and inserting <quote>$5,000</quote>.</text> </paragraph></subsection><subsection id="id2FE9A96803264F02889491392F08C1BD"><enum>(c)</enum><header>Failure To provide notice</header><text>Subsection (h) of <external-xref legal-doc="usc" parsable-cite="usc/26/6652">section 6652</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="idA18B5626EE3B4E5396D144528218C797"><enum>(1)</enum><text>by striking <quote>$10</quote> and inserting <quote>$100</quote>; and</text> </paragraph><paragraph id="id0D6D779D86434CF4B0F0ECD0E8FDACF1"><enum>(2)</enum><text>by striking <quote>$5,000</quote> and inserting <quote>$50,000</quote>.</text> </paragraph></subsection><subsection id="id8EE03AF4B0BE43DF8BA10886D62AAD01"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to returns, statements, and notifications required to be filed, and notices required to be provided, after December 31, 2018.</text> </subsection></section><section id="idCD6F8272D10741BB87D96F22DECAAD87"><enum>504.</enum><header>Increase information sharing to administer excise taxes</header> <subsection id="idB139697C134340F6B6708B4C39358966"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6103">Section 6103(o)</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="id5717828CE66D48658D01C90A8ECC2B76" style="OLC"> <paragraph id="id2861E88EC88A46A599F79E2B3CEADEF8"><enum>(3)</enum><header>Taxes imposed by section 4481</header><text>Returns and return information with respect to taxes imposed by section 4481 shall be open to inspection by or disclosure to officers and employees of United States Customs and Border Protection of the Department of Homeland Security whose official duties require such inspection or disclosure for purposes of administering such section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id270DEB3CEB7D43C7853D4E5339611A2E"><enum>(b)</enum><header>Conforming amendments</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(p)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>or (o)(1)(A)</quote> each place it appears and inserting <quote>, (o)(1)(A), or (o)(3)</quote>.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idEC0FFB5F39384AFF87ED715EA5D5923C" section-type="subsequent-section"><enum>505.</enum><header display-inline="yes-display-inline">Pension variable rate premium payment acceleration</header><text display-inline="no-display-inline">Notwithstanding section 4007(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1307">29 U.S.C. 1307(a)</external-xref>) and section 4007.11 of title 29, Code of Federal Regulations, any additional premium determined under subparagraph (E) of section 4006(a)(3) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1306">29 U.S.C. 1306(a)(3)</external-xref>) the due date for which is (but for this section) after September 30, 2027, and before June 1, 2028, shall be due not later than September 30, 2027.</text></section>